SASF Cash Flow Policy

1 Purpose

The policy ensures prudent cash flow management for SAS Foundation, enabling financial sustainability, regulatory compliance, and transparency in fund utilization across its four key areas: Education, Health, Environment, and Community Development.

2 Objectives

• Maintain a clear view of available liquid funds.
• Ensure smooth implementation of projects and operations.
• Enable timely reporting to stakeholders and donors.
• Build trust through accountability and ethical financial practices.

3 Scope

Applies to all receipts, disbursements, and fund management activities undertaken by SAS Foundation, including CSR contributions, grants, donations, and operational expenses.

4 Core Policy Provisions

4.1 Prohibition of Cash Transactions

• No cash transactions are permitted for receiving or disbursing funds, regardless of amount.
• All receipts must be via digital transfer, NEFT/RTGS, UPI, bank deposit, or cheque.
• All disbursements must be through banking channels only.

4.2 Cheque Signing Protocol

• All cheques issued must bear signatures of at least two authorized signatories.
• No blank cheques are to be signed or issued.
• Authority limits shall be defined and reviewed annually by the Board.

4.3 80G Receipt Issuance

• Receipts under Section 80G of the Income Tax Act shall be issued within 72 hours of receiving eligible donations.
• Each receipt must carry the SAS Foundation’s PAN, 80G registration details, donation amount, mode of payment, and donor details.
• Receipt copies shall be stored digitally and backed up.

5 Roles & Responsibilities

6 Cash Flow Planning

• Annual forecast aligned with budget, reviewed quarterly.
• Monthly cash flow statements to be generated and presented internally.
• Forecasts to include CSR funds, grants, and donor trends.

7 Inflows and Outflows

7.1 Inflows

• Must be routed through bank transfer, UPI, cheque, or NEFT/RTGS.
• No donations above ₹2,000 shall be accepted in cash, in accordance with the Income Tax Act.

7.2 Outflows

• All disbursements to be supported by approved documentation and processed via bank.
• Vendor and beneficiary payments to follow maker-checker protocol.
• Disbursements linked to project timelines and funder agreements.

8 Reserves and Emergency Liquidity

• Maintain at least 3 months’ operational expenses in reserves.
• Reserves to be held in bank accounts or fixed deposits approved by the Board.

9 Internal Controls

• Dual authorization on all bank accounts and cheques.
• Bank reconciliations monthly.
• Expense reports reviewed by Secretary & Treasurer and presented to Board quarterly.
• Use of accounting software for real-time cash tracking.

10 Compliance and Documentation

• Adherence to Income Tax Act, CSR Rules, and applicable Indian Accounting Standards.
• Timely filing of 10BD, ITR-7, CSR Reports, and statutory returns.
• Maintain digital records for 80G receipts, donation acknowledgments, and audit trails.

11 Risk Mitigation

• No single-point control over financial disbursements.
• Regular audit (internal and statutory).
• Scenario-based planning for funding delays or operational cost escalations.

12 Policy Review

This policy shall be reviewed annually or as needed by legal, financial, or organizational developments.