SASF Financial Policy

Purpose

The purpose of this Financial Policy is to establish a framework for financial planning, budgeting, accounting, internal controls, reporting, and oversight at SAS Foundation. It ensures that all funds are utilized ethically, efficiently, and in alignment with the Foundation’s mission, vision, and regulatory obligations.

Scope

This policy applies to all trustees, staff, volunteers, interns, and consultants involved in financial matters at SAS Foundation. It governs the handling of grants, donations, CSR funds, reimbursements, procurement, and disbursements.

Guiding Principles

• Transparency:

  Accurate and timely financial reporting.

• Accountability:

  Clearly defined roles and responsibilities.

• Compliance:

  Adherence to statutory regulations (Income Tax Act, 12A, 80G, CSR guidelines, etc.).

• Stewardship:

  Responsible use of donor funds in line with program goals.

Banking & Accounts

• All bank accounts shall be in the name of Swavalamban Avam Swabhimaan Foundation.
• Dual signatories are required for all cheque payments and online transfers above ₹25,000.
• A dedicated CSR account and FCRA account (if applicable) shall be maintained as per regulatory norms.
• Only authorized trustees may open or close bank accounts with prior Board resolution.

Receipts & Donations

• All donations must be recorded with appropriate documentation (PAN card for 80G, FCRA declaration if foreign).
• Donors shall be issued receipts with SAS Foundation’s PAN, 12A, and 80G details.
• Receipts must be sequentially numbered and maintained digitally and physically.
• Corporate CSR funds must be received via bank transfer and linked with a signed agreement.

Expenses & Disbursements

• All expenses must be pre-approved and supported with bills/invoices.
• Payments above ₹5,000 should be made via cheque or bank transfer.
• Petty cash limit per project is ₹5,000. Monthly petty cash statements are mandatory.
• No personal use of Foundation funds is permitted.

Budgeting & Financial Planning

• Annual budgets shall be prepared at the start of each financial year and approved by the Board.
• Project-specific budgets shall be included in MoUs/agreements with CSR donors or partners.
• Mid-year reviews will be conducted to assess fund utilization and revise projections.

Accounting & Bookkeeping

• Books of accounts shall be maintained on a double-entry system using accounting software (e.g., Tally, QuickBooks).
• Separate project-wise ledgers shall be maintained.
• Accounts will be closed and finalized within 30 days of the end of the financial year.
• Statutory registers (Donor Register, Asset Register, etc.) must be maintained.

Audits & Reporting

• The Foundation’s accounts will be audited annually by a Chartered Accountant.
• Audit reports, Income Tax Returns (ITR-7), and NGO Darpan updates shall be filed on time.
• Internal audits will be conducted quarterly for projects exceeding ₹5 lakhs.
• Quarterly Financial Reports shall be shared with the Board and CSR partners.

Procurement Policy

• Competitive quotations (minimum 3) are required for purchases exceeding ₹10,000.
• Vendor selection must be based on quality, cost, and compliance with ethical sourcing.
• No trustee or staff member shall engage vendors with whom they have a direct interest.

Asset Management

• All assets (e.g., computers, furniture) shall be recorded and tagged.
• Asset transfers or disposals require prior written approval from the Board.
• An annual asset audit will be conducted.

Conflict of Interest

• Any trustee or staff involved in a financial decision must declare any conflict of interest.
• Such individuals shall recuse themselves from related decision-making.

Reimbursements & Advances

• Reimbursements require original bills and approval from the Finance Officer/President.
• Program-related travel advances must be settled within 10 working days of completion.
• Daily allowance limits shall be predefined in the HR policy.

Fund Balances & Reserves

• The Foundation shall aim to maintain an operational reserve equivalent to 3 months of average monthly expenditure.
• Unspent CSR funds shall be utilized as per the signed agreement or refunded if required.

Policy Review & Amendment

This Financial Policy shall be reviewed annually by the Board of Trustees and updated as needed to reflect best practices and legal requirements.