Policy 22 — Financial Management and Internal Control

ASF keeps complete, accurate accounts, separates financial duties and is audited independently every year. Owner: Board Treasurer.

Controls

1. Segregation of duties: no single person requests, approves, pays and records the same transaction.
2. Budgets: an annual budget approved by the Board; project budgets tracked separately by funding source.
3. Banking: two signatories for every payment (Policy 3); online banking with dual authorisation.
4. Reconciliation: bank accounts reconciled monthly and signed by a second person.
5. Cash: petty cash capped at 1,000 EUR and counted monthly.
6. Assets: a register of equipment over 500 EUR, checked physically each year.
7. Payroll: approved contracts only; changes authorised in writing; salaries paid by bank transfer.
8. Time recording: staff charged to donor projects record time monthly.

Reporting and audit

• Monthly management accounts to the the Board Chair; quarterly financial report to the Board.
• Donor financial reports prepared from the accounting system and reconciled to it.
• Annual financial statements prepared under French requirements and audited by an independent external auditor, with the audit report and management letter presented to the Board and shared with donors on request.
• Project audits as required by funding agreements.

Reserves

ASF aims to build unrestricted reserves equal to at least three months of core operating costs, set and reviewed by the Board each year.