Authorization and approval of payments
The agreed budget and financial standards must be followed for the NGO to be able to make any payments. Payment requests must be made using a standard payment request form and supported by the relevant paperwork, such as contracts, invoices, or receipts. Depending on the amount and kind of spending, the finance manager or executive director will issue final authorization after the applicable program or department head reviews and approves payment requests.
Methods and Processing of Payments
The finance department will execute payments within five working days of approval. To guarantee security and traceability, payments must be made via bank transfer, check, or mobile money, if appropriate. Subject to a predetermined limit, cash payments are discouraged and only allowed for minor, urgent costs. For audit and reporting purposes, every payment must be documented in the NGO’s accounting system and accompanied by the appropriate paperwork
Observation and Adherence
To guarantee adherence to donor requirements, internal controls, and applicable laws, all payments are subject to internal review and recurring external audit. The financial manager must be notified right away of any disparities or inconsistencies so that they can be looked into. Employees who handle payments must uphold integrity and confidentiality, and any conflicts of interest must be disclosed and handled in accordance with the NGO’s ethics guidelines.
