Finance Policy

1. Purpose

The Finance Policy of Samoon Foundation has been established to ensure the responsible, transparent, and efficient management of financial resources. It provides a framework for budgeting, accounting, reporting, and auditing that supports the Foundation’s mission while maintaining compliance with legal and statutory requirements.

2. Principles

- Transparency: All financial transactions shall be open, verifiable, and subject to review.

- Accountability: Staff, management, and board members are responsible for the prudent use of organizational funds.

- Compliance: The Foundation will adhere to all applicable laws, statutory requirements, and donor guidelines.

- Efficiency: Resources will be used in a manner that maximizes impact and minimizes wastage.

3. Budgeting

- An annual budget will be prepared by the finance team in consultation with project leads and approved by the Board of Trustees.

- Budgets will be aligned with organizational goals and funding commitments.

- Variances between actual expenditure and budgeted figures will be regularly monitored and reported.

4. Accounting & Record Keeping

- The Foundation will maintain accurate books of accounts using standardized accounting practices.

- Every transaction must be supported by relevant documentation (vouchers, receipts, invoices, agreements, etc.).

- All income and expenditure records will be retained for at least seven years in accordance with statutory requirements.

5. Authorization of Expenditure

- Expenditures will only be made with prior approval from authorized signatories.

- Levels of approval (e.g., Project Manager, Finance Head, CEO, Board) will be defined to ensure - checks and balances.

- No personal expenses shall be charged to organizational accounts.

6. Bank Accounts & Cash Handling

- All bank accounts will be opened and operated in the name of Samoon Foundation, with designated signatories.

- As far as possible, payments will be made through bank transfers, cheques, or digital methods rather than cash.

- Cash handling will be minimized, and petty cash (if maintained) will be properly recorded and reconciled.

7. Donor Funds & Grant Management

- Funds received from donors will be utilized strictly in line with the terms of the grant agreement.

- Separate accounting records will be maintained for each donor/project, where required.

- Periodic reports will be prepared and shared with donors to ensure transparency.

8. Audits & Reviews

- The Foundation will undergo an annual statutory audit conducted by an independent Chartered Accountant.

- Internal financial reviews may also be carried out quarterly to ensure compliance and detect irregularities.

- Audit reports will be presented to the Board and shared with stakeholders as required.

9. Misuse of Funds

- Any unauthorized, fraudulent, or negligent use of funds will be treated as a serious violation.

- If anyone is found misusing the organization’s funds, they will be terminated from Samoon Foundation with immediate effect, in addition to recovery of funds and potential legal action.

- Whistleblower protection will be extended to individuals who report financial misconduct in good faith.

10. Policy Review

This policy will be reviewed every year or earlier if there are changes in legal requirements, donor compliance conditions, or organizational needs.