1. Purpose

To ensure accountability, protect assets, and provide a clear framework for budgeting, procurement, reporting and audit.

2. Scope

These policies apply to the Treasurer, Finance Committee, Executive Council members, project managers and any employee or volunteer who handles funds or signs financial documents for MDP.

3. Financial Objectives

• Maintain accurate accounting and timely financial reporting.
• Protect organisational resources and ensure value-for-money.
• Comply with statutory reporting and donor requirements.

4. Budgeting

The Finance Committee prepares an annual budget in consultation with programme leads. The Executive Council must approve the budget before implementation. Variances must be reported monthly with corrective actions proposed for significant deviations.

5. Financial Controls

• All transactions must be recorded in the accounting system promptly.
• Dual signatories required for bank transfers and cheque payments above authorised thresholds.
• Receipts and vouchers must support every disbursement; petty cash must be reconciled monthly.
• Cash payments above KES 5,000 are discouraged; electronic payments preferred.

6. Procurement

Procurement shall follow competitive processes. For purchases above the specified threshold the Finance Committee must obtain at least three quotations. Conflicts of interest must be declared in procurement processes.

7. Banking & Cash Handling

MDP shall keep accounts with reputable banks. Bank reconciliations must be performed monthly. Petty cash floats will be defined and reconciled; all cash receipts are to be deposited within 24 hours.

8. Reporting & Auditing

Quarterly financial reports will be prepared and reviewed by the Finance Committee. An independent external audit will be performed annually and the report submitted to the Executive Council and stakeholders.

9. Asset Management

Tangible assets will be recorded in a fixed asset register, insured where appropriate, and subject to periodic verification. Disposal of assets requires authorisation from the Executive Council.

10. Donor & Grant Management

All donor funds will be administered in accordance with contractual agreements. Financial reports to donors will be submitted within agreed timelines and audited if required.

11. Fraud Prevention & Whistleblowing

Suspected fraud or financial misconduct must be reported confidentially to the Ethics Committee or Finance Committee. Whistleblowers will be protected from retaliation.

12. Approval Thresholds (Example)

13. Policy Review

This policy will be reviewed every two years, or sooner if statutory or donor requirements change.