Sudan Democracy First Group (SDFG) is a civil society and a think tank organization committed to responsible financial management. The entire organization including the Board of Trustees (BoT), Executive Director (ED) and staff will work together to make certain that all financial matters of the organization are addressed with care, integrity, and in the best interest of SDFG. The policy and procedural guidelines contained in this handbook are designed to:
1. Protect the assets of SDFG.
2. Ensure the maintenance of accurate records of SDFG financial activities, and compliance with International Financial Reports Standards (IFRS) for Not-for-Profit Organizations and ensure compliance with the state, and local legal and reporting requirements.
3. Provide a framework of operating standards and behavioral expectations.
Ensure compliance with Host Country(ies), donor record keeping, reporting, and audit requirements.
COMPLEMENTARITY OF POLICIES
While the Organization’s constitution is the overall legal framework, other SDFG policies and procedures are complementary to this Policy, including: Human Resources Polices, Conflict of Interest Policy, Security Policy, and any other policies and procedures that are approved by the BoT and/or the ED.
AUTHORITY AND UPDATE OF THIS MANUAL
The Executive Director is accountable for leading an effective staff and is thereby accountable for the development and implementation of the policies outlined in this manual. The HR, Finance and Admin Manager is responsible for financial management and should reference this manual to ensure organizational consistency in the application of these practices. The Manual is reviewed annually during the Annual Staff retreat and the Board of Trustees’ meeting of SDFG.
The Finance and Administration Manager is responsible for the maintaining of the procedures and systems, which support financial management for the organization, and is available to answer any questions or provide clarification on any content of this manual.
The organization’s financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS) for Not for profit organization.
1. BUDGETING PROCESS
- The organization’s annual budget is prepared by the Executive Director in conjunction with the Programs Manager, Finance and Administration Manger and programs coordinators, and reported to the Board of Trustees;
- The Executive Director will notify the chair and treasurer of the board of trustees with any approved incoming grants and budgets;
- Program budgets are prepared by the Program Coordinators with the help of finance unit and Approved by the Programs Manager;
- The Executive Director will work together with the Programs Manager and the Finance and Administration Manager and program Coordinators to ensure that the organization’s annual budget and all program budgets are accurate and reflect SDFG overall goal and objectives as set in its strategy;
- The Board of Trustees will review and approve the organization budget.
2. INTERNAL MANAGEMENT FINANCIAL REPORTS
The Finance unit is responsible for producing the following reports, on Quarterly basis:
- Statement of Financial Position;
- Statement of activities;
- Cash Flow Projection;
- Review and monitoring of the budget monitoring report;
On Quarterly-basis the Programs Manager and Finance and Administration drafts a narrative report that summarizes the programs’ current financial position that includes explanations for budget and target variance.
Annually: The Executive Director and Programs Manger review financial reports each month at the senior management team meeting.
3. FINANCIAL REPORTS TO THE DONOR
SDFG is committed to produce regular financial reports to the organizations’ donors to demonstrate the funds have been used for the purpose of which they were intended, and to keep the donor informed with any potential changes. The finance unit is responsible for keeping the deadlines for the reports as stipulated in the grants agreements, and for producing accurate and verified figure
All financial reports to the donor should be reviewed by Program coordinator and verified by the Programs Manager and approved by the ED.
Program coordinators are responsible for explanation of any significant variation on budget lines.
4. Chart of Accounts
A Chart of Accounts is available and used to code receipts and disbursements to the proper budget lines. The Finance and Admin Manager is responsible for developing budget codes for each approved grant upon the signature of the contract.
The updated version of the Chart of Accounts is available on SDFG Shared drive and updated on a monthly basis. All new requests for updating of the Chart of Accounts should be submitted to the Finance and Administration Manager by email with a detailed description of new proposed items/codes, estimated annual budget for each proposed item, and attached copies of supporting documents, for example pledge agreement, grant contract, or grant budget.
5. INTERNAL AUDIT
The Board has the right to assign an internal auditor.
6. PROJECT BASED AUDIT
The organization may conduct project-based audit at the close of projects based on the availability of funds and/or donor requirements. The audit shall be conducted by an independent and certified Auditor who is familiar with the NGO operations.
7. ANNUAL EXTERNAL FISCAL AUDIT
The organization shall conduct annual fiscal audit at the close of each fiscal year. The Annual audits will be conducted by an independent and certified Auditor who is familiar with the NGO operations appointed by the board of Trustees to cover the minimum following issues:
- Examine the financial statements to obtain reasonable assurance that they are free of material misstatements and they give true and fair view of the state affair of the organization;
- Examine the financial transactions for accuracy and reliability of supporting documentation and ensure the organization management has kept proper books of account;
- Assess the overall presentation of the financial statements and ensure they are in agreement with the books of accounts, organization policies and procedures and relevant funding requirements;
- Review the existing internal controls policies and procedures and determine whether they are appropriate, adequate and bring out any significant weaknesses;
Verify whether the findings and recommendations of previous audits have been adequately addressed. Finance unit will be responsible to coordinate the annual audit process, and to liaise with external auditors and the Executive Director and the Board of Trustees, and assess any necessary changes.
The Purpose is to establish the guidelines and authority to assist the board in identifying, disclosing, and resolving potential conflicts of interest.
A. Fiduciary Responsibility:
1. Members of the Board and staff serve our mission and have a clear obligation to conduct all affairs of the organization in an upright and honest manner. Each person should make necessary decisions using good judgment and ethical and moral considerations.
2. All decisions of the Board and staff of the organization are to be made solely on the basis of a desire to promote the best interests of our mission.
3. In order to avoid any appearance of a conflict of interest, members of the Board and staff agree to place the welfare of the organization above their own financial interests, or those of family members, or others who may be personally involved in the financial affairs of the organization.
1. Specific Disclosure: Members of the Board and staff shall disclose fully the precise nature of their interest or involvement when participating in any transaction of the organization in which another party to the transaction includes:
– Himself or herself;
– A member of the family (spouse, parents, brothers, sisters, children, or any other immediate relative);
– An organization with which the member of the Board or the staff or his or her family, is affiliated.
Disclosure shall be made at the first knowledge of a transaction.
2. Paid Assignments:
A. Serving Board Members shall be required to resign their position in the board before they could take a paid consultancy for the organization.
B. Members of the Board whose term of service had finished either by resignation or normal expiration of their tem limit can only serve as paid consultants for the organization one year after the lapse of terms in the board.
C. Members of the Board who travel on a mission for the organization shall have their expenses covered and are entitled to a symbolic honorarium.
3. General Disclosure:
Members of the Board and staff shall disclose all relationships and business affiliations which may now, or in the future, conflict with the interests of the organization or bring personal gain to them or their family or business. If any member of the Board or staff or a member of his or her family acts in one or more of the following capacities, disclosure must be made:
A. Is an officer, director, trustee, partner, employee, or agent of an organization with which our organization has business dealings.
B. Is either the actual or beneficial owner of more than one percent of the voting stock or controlling interest of an organization with which our organization has business dealings.
C. Is a consultant for such an organization; or has any other direct or indirect dealings with an individual or organization from which he or she is materially benefiting (e.g., through the receipt, directly or indirectly, of cash, gifts, or other property).
4. Reporting of Disclosures:
All disclosures as they apply to staff will be handled by the ED. All disclosures as they apply to members of the Board shall be listed at the end of this document and will be referred to the Chairman of the Board. Information disclosed to the Chairman of the Board or the ED will be held in confidence, except when the organization’s best interests would be served by bringing the information to the attention of the officers of the organization.
5. Determination of Possible Conflict of Interest Disclosure Letter:
Any individual who is uncertain about a conflict of interest in any matter shall without delay disclose such possible conflict to the appropriate individual as noted above.
Each member of the Board and the staff will complete and update any disclosure or suspected disclosure annually at the time of signing this document.
After receiving acknowledgment that the disclosure letter or information provided below has been received, the member of the Board or the staff shall be entitled to act as though no conflict of interest exists unless he or she is notified otherwise by the ED or the Chairman of the Board within 120 days of filing the letter.
6. Failure to Disclose:
Each member of the Board and the staff who is requested to file this Conflict of Interest Statement should recognize that such filing is a requirement for continued affiliation or employment with SDFG and, further, that failure to knowingly disclose a potential conflict of interest could result in disaffiliation or termination of employment.
7. Restraint on Participation:
Members of the Board and staff who have a conflict of interest in any matter shall refrain from participating in the consideration of the proposed transaction. The person or persons involved will not vote on such matters. However, for special reasons, the Board may request information or interpretation from the person or persons involved.