Sewa Development Trust Sindh
Finance & Procurement Policy
Date of Revision/Update: Dec. 09, 2014
The SEWA DEVELOPMENT TRUST SINDH is a not-for-profit organizationa established by Trust Deed, under Trust Act-1882. The SEWA DEVELOPMENT TRUST SINDH shall pursue its objectives, as described within charter of the organization.
This manual aims to develop and maintain an effective system of internal control in order to monitor compliance with established policies and procedures of the organization. These policies and procedures principally focus on the following:
· Is to provide framework within which the Organization’s financial guidelines and procedures are established.
· To make policies within that business transactions in the Organization are to be made.
· Adequate documents and records
· Assets are safeguarded, accounted for and controlled
· Independent checks on financial and non financial activities
· Proper authorization of transaction and activities
· Sufficient segregation of duties, wherever practicable
This manual of accounting policies, systems and procedures would be helpful to:
§ The Board for monitoring compliance with prescribed policies and procedures
§ New employees of the organization for adaptation to the policies, systems and procedures
§ Work Force of the Finance Department for use as a guide to the accounting system and procedures
§ Other non-financial executives / employees who work closely with finance and accounts staff.
Through this manual, we endeavor to develop and maintain an effective internal control system which would provide assurance about the safeguarding of assets and detection / prevention of deliberate or unintentional material misstatement(s). The policies and procedures discussed herein are also useful for the fair presentation of financial statements.
This manual primarily illustrates individual work steps in accounting process and recording the business events in the books of accounts. It is intended to provide assistance in coordinating efforts of groups of people working together to perform an activity, with certain time frame.
OVERALL CONTROL SYSTEM
The SDTS has two control systems, external control by the stakeholders of the business and internal control by the management. At the end of each financial year, an external audit of organization’s projects and financial transactions is conducted. An independent firm of chartered accountants conducts such an audit.
As regards internal control system, its main objective is to safeguard the asset of the organization, ensure reliability of the accounts and achieve operational efficiency and effectiveness of the organization.
The SDTS is expected to build up a control environment with the following key fundamentals:
§ Ethical and principled morals,
§ Ensuring that staff, at all levels, is competent to carry out the duties assigned to them.
Hence, it is imperative that employees adhere to high standards of personal integrity and set a good example to their subordinates.
The other key elements of the control environment are the communication of information and monitoring. Pertinent information must be communicated within the organization so that well-informed personnel may make well-informed decisions. Monitoring requires not only formal procedures such as internal audit, but cultivation of a culture of recommendations for improvements to existing systems and procedures.
Under the umbrella of this control environment the organization, through this manual, has developed policies and procedures to meet specific control objectives.