Policy for Fund Management and Disbursement
Our NGO uses a systematic approach to money management in order to guarantee accountability, transparency, and efficient use of resources. All money collected is placed into a specific organizational bank account, regardless of whether it comes from grants, contributions, or collaborations. Standardized accounting software is used to preserve financial records, and quarterly audits and monthly reconciliations ensure both donor compliance and financial integrity.
There is an internal approval mechanism that controls the distribution of funds. Program managers and finance officers must authorize budgeted expenses, whereas the executive director or board finance committee must first approve budgeted or extraordinary disbursements. Petty cash use is tightly restricted and documented, and payments are handled using traceable channels like bank transfers or cheques.
To guarantee sustainability and crisis response, the NGO keeps a reserve fund equal to three months’ worth of operating costs. To maintain transparency, funders and stakeholders get regular financial updates, and an annual financial statement is released. This approach guarantees that resources are distributed efficiently to further our advocacy and financial policy reform goals.
Author: Mohamed Yasin
