Finance Policy

1. Rationale

Peter Hewitt Care for Africa Foundation Inc (CfA) intends to apply for membership of the Australian Council for International Development (ACFID). It is an ACFID requirement for CfA to have a Finance Policy in place and CfA endorses this requirement. 

2. Purpose and Scope

The purpose of financial management in the operation of all CfA activities is to fulfil the organisation’s mission in the most effective and efficient manner and to remain accountable to stakeholders, including clients, partners, funders, employees, and the community. In order to accomplish this, CfA commits to providing accurate and complete financial data for internal and external use by the Chief Executive Officer (CEO) and the Board of Directors.

3. Guiding principles

3.1 Authority:

The Board of Directors is ultimately responsible for the financial management of all activities. 

  • The Treasurer is authorised to act on the Board’s behalf on financial matters when action is required in advance of a meeting of the Board of Directors.
  • The CEO is responsible for the day-today financial management of the organization. The Board authorises the CEO to hire and supervise staff and independent consultants, pay bills, receive funds, and maintain bank accounts.
  • The Board of Governors may delegate such matters as it sees fit to the CEO for the efficient and proper functioning of the Foundation. 
  • Authority is delegated to the CEO to incur expenditure for and on behalf of the Foundation on goods and services reasonably required, provided that expenditure in respect of any one service or one item of goods will not exceed the amount of $1,500.00 AUD, subject to funds being available, but beyond that sum approval is required by the Board, either by Resolution made at a Board meeting, or by ratification of approval given by the Executive Committee. Expenditure on goods and services includes repairs, maintenance and renewals, consultants’ fees and travelling costs. 

 

3.2 Signatories to Accounts and Expense Cheques 

In conformity with abovementioned, the CEO shall be an authorised signatory to accounts and expense cheques up to $1,500.00; thereafter, signatories to accounts and expense cheques require two signatories, comprising either the Chairperson and Treasurer, or the Chairperson or Treasurer and the CEO. 

3.3 Responsibilities

The CEO shall:

  • Account for donor restricted and board designated funds separately from general operating funds, and clearly define the restrictions applicable to these funds.
  • Report the financial results of CfA operations according to the schedule established by the Board of Directors, but at least quarterly.
  • Pay all obligations and file required reports in a timely manner.
  • Make no contractual commitment for bank loans, corporate credit cards, or for real estate leases or purchases without specific approval of the Board.
  • Record fixed assets with purchase prices greater than $500 as capital assets in accounting records.
  • Limit vendor credit accounts to prudent and necessary levels.

The Board of Directors shall:

  • Review financial reports at each board meeting.
  • Provide adequate training to Board members to enable each member to fulfil his or her financial oversight role.

3.4 Financial Transactions with Insiders:

No advances of funds to employees, officers, or directors are authorised. 

In no case shall CfA borrow funds from any employee, officer, or director of the organization without specific authorisation from the Board of Directors.

3.5 International Transfer of Funds:

International transfer means a funds transfer from a source account to a foreign beneficiary account in accordance with an international transfer instruction.

Operational Procedure

Money transferred from the Australian Bank Account is transferred in USD to a Foreign beneficiary account at Tarime local Bank CRDB account held in the name of A Obedi and D M Butler in trust for CfA

All funds to be transferred above $1,000 AUD must be authorised by the CEO and ratified by the Board.

The CEO shall be an authorised signatory to accounts and expense cheques up to $1,500.00; thereafter, signatories to accounts and expense cheques require two signatories, comprising either the Chairperson and Treasurer, or the Chairperson or Treasurer and the Executive Officer.

Where payment is made by electronic funds transfer, authorisation to effect the transfer shall be deemed as given if an electronic mail message consenting to the transfer is received from the electronic mail addresses on file in the Foundation’s records for the authorising persons who would sign and countersign the payment if it were a cheque. 

In order to ensure funds are not lost due to currency fluctuation, CfA is aware of and will practice hedging as appropriate. 

This will help with budget projections as CfA will be able to predict its cash flow and distributions in future payments. As CfA is dependent on public donations, it recognises it must protect assets from foreign exposure. 

3.6 Budget:

In order to ensure that planned activities minimise the risk of financial jeopardy and are consistent with board-approved priorities, long-range organisation goals, and specific three-year objectives, the CEO shall:

  • Submit operating and capital budgets to the Board of Directors in time for reasonable approval by the Board prior to each fiscal year.
  • Use responsible assumptions and projections as background, with the general goal of an unrestricted surplus.

3.7 Gift Acceptance:

CfA will accept stock or other negotiable instruments as a vehicle for donors to transfer assets to the organization. Transfer and recording the value of the asset shall be done in a consistent manner and in compliance with accounting standards. The CEO shall sell any stock given to the organization immediately upon receipt by the organization.

CfA shall accept contributions of goods or services other than cash that are related to the programs and operations of CfA. Any other contributions of non-cash items must be reviewed and approved by the Board of Directors before acceptance.

Asset Protection

In order to ensure that the assets of CfA are adequately protected and maintained, the CEO shall:

  1. Insure against theft and casualty losses to the organisation and against liability losses to Board members, staff, or the organization itself to levels indicated in consultation with suitable professional resources.
  1. Plan and carry out suitable protection and maintenance of property, building, and equipment.
  2. Avoid actions that would expose the organisation, its board, or its staff to claims of liability.
  3. Protect intellectual property, information, and files from unauthorized access, tampering, loss, or significant damage.
  4. Receive, process, and disburse funds under controls that are sufficient to maintain basic segregation of duties to protect bank accounts, income receipts, and payments.

CFA-P27.V1 Finance Policy
Effective Date: 20 September 2020

Approved By: Board of Management.

Controlled Document — Printed Versions are not controlled. CFA