Our Financial Management Policy.

FINANCIAL MANAGEMENT POLICY.

Community Health Education Sports Initiative Zambia (CHESIZ) Financial and Control Policies.

Philosophy.

The purpose of financial management in the operation of all CHESIZ activities is to fulfill the organizations 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, CHESIZ commits to providing accurate and complete financial data for internal and external use by the Executive Director and the Board of Directors.

Authority

The board of Directors is ultimately responsible for the financial management of all activities. The Financial Manager is authorized to act on the Board of Directors behalf on financial matters when action is required in advance of a meeting of the Board of Directors.

• The Executive Director is responsible for the day to day financial management of the organisation. The Board authorizes the Executive Director to hire and supervise staff and independent consultants, pay bills, receive funds, and maintain bank accounts.

• The Executive Director is authorized to sign Cheques up to K15, 000. Cheques for amounts greater than K15, 000 shall require the signatures of the Financial Manager or the Board of Directors.

• The Executive Director is authorized to enter into contracts for activities that have been approved by the Board of Directors as part of budgets or plans. The Board of Directors must authorize any contracts outside of these parameters and all contracts with a financial value greater than K15, 000.

• The Executive Director is authorized to manage expenses within the parameters of the overall approved budget, reporting to the Finance Committee on variances and the reason for these variances.

• The Board of Directors must approve any use of the board designated cash reserve fund.

Responsibilities.

The Executive Director 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 CHESIZ operations according to the schedule established by the Finance Committee, 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, for real estate lease’s or purchase without specific approval of the Board.

• Record fixed assets with purchase prices greater than K5, 000 as capital assets in accounting records.

• Depreciation of capital assets will not exceed five years for furniture and equipment or three years for computer and other technology equipment.

• Limit vendor credit accounts to prudent and necessary levels.

• Obtain competitive bids for items or services costing in excess of K5, 000 per unit. Selection will be based on cost, service, and other elements of contract CHESIZ may award the bid to any provider and is not required to accept the lowest cost proposal.

The Board of Directors shall:

• Review financial reports at each board meeting.

• Provide adequate training to members to enable each member to fulfill his or her financial oversight role.

Financial Transactions with Insiders.

No advances of funds to employees, officers, or Directors are authorized. Direct and necessary expenses including travel for meetings and other activities related to carrying out responsibilities shall be reimbursed.

In no case shall CHESIZ borrow funds from any employee, Officer, or Director of the Organisation without specific authorization

from the Board of Directors.

Budget

In order to ensure that planned activities minimize the risk of financial jeopardy and are consistent with board approved priorities, long-range organisation goals, and specific five years objectives, the Executive Director shall:

• Submit operating capital budgets to the Finance Committee 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.

Gift Acceptance.

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

CHESIZ shall accept contributions of goods or services other than cash that are related to the programs and operations of CHESIZ. 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 CHESIZ are adequately protected and maintained, the Executive Director shall:

• Insure against theft and casualty loses to the organisation and against liability losses to Board of Directors Members, staff, or the organization itself to levels indicated in consultation with suitable professional resources.

• Plan and carry out suitable protection and maintenance of property, building, and equipment.

• Avoid actions that would expose the organisation, its board, or its staff to claims of liability.

• Protect intellectual property, information, and files from unauthorized access, tempering, loss or significant damage.

• Receive, process, and disburse funds under controls that are sufficient to maintain basic segregation of duties to protect bank accounts, income receipts, and payments.