SAMPLE POLICY WORK

c. Internal Financial Controls and Fraud Prevention

Effective internal controls are critical to prevent fraud, abuse, and errors in financial management. Our internal control system comprises segregation of duties, authorization procedures, and stringent audit trails. Segregation of Duties • Purpose: To minimize the risk of fraud and errors by ensuring that no single individual has control over all aspects of any financial transaction.

•

Policy Guidelines:

– Different individuals are assigned roles for initiating, authorizing, recording, and reviewing transactions. – For example, the employee responsible for processing expense reports is not the same person who approves them. – Periodic cross ‑ checks are implemented to verify that segregation of duties is maintained. • Documentation: – All financial transactions include checks and balances, with designated approval signatures required before the transactions are processed. – A summary table of assigned duties and supervisory responsibilities is maintained and periodically reviewed by the Quality Assurance Team. Authorization Procedures • Purpose: To ensure that all financial transactions and changes to the budget or services undergo proper authorization before implementation.

•

Policy Guidelines:

– All financial transactions above a pre ‑ determined threshold require approval from the Director of Finance or CFO. – Changes to departmental budgets and mid ‑ year revisions must be approved by both departmental heads and executive leadership. – Pre ‑ authorization is mandatory for procurement, contract modifications, and significant capital expenditures. • Documentation:

– An Approval Log documents the chain of approval, including signatures, dates, and supporting documentation for each authorized transaction.