BY FINANCE OFFICER
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Accountability is the obligation of an individual
or organization to account for its activities,
accept responsibility for them, and to disclose
the results in a transparent manner.
Liable to being called to account; answerable
(Being liable to God and humanity).
As a family of Presbyterian church of East
Africa we are entrusted with the society’s
most important functions—uplifting our
souls, educating our minds, and protecting
our health and safety & Mission work.
The evidence is the enormous resources the
society devotes to our church & institutions.
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To the church members as key stakeholders.
Reports to our church courts, committees or
boards.
Govt-Comply with the host county
regulations e.g. taxation by Kenya Revenue
Authority,.
To our donors/partners who have supported
the projects.
For the institutions & presbyteries to the head
office- for Monitoring &Evaluating.
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Political –The President and his Deputy are
accountable to the wananchi” .every five years we
have new election. PCEA every 3 years and 6
years.
Ethical- growth of professional associations e.g.
ICPAK,LSK.
Administrative –within an organization e.g. FO
reports to Secretary General
Public/Private organizations- corporate social
responsibility e.g. Equity bank/master cards
scholarship, government cash transfer to elderly,
safaricom -Kenyan for Kenyan initiative in
Turkana to provide food during famine.
Accounting for Donor funds.
We are asking the public to measure our
organization performance using the stated
vision, mission and values – also the
organizational culture. All PCEA institutions
should align their activities towards :
VISION:
 To be a Great and Dynamic Godly Model Church
for holistic service in pursuance of the Great
Commission”.
MISSION:
 To empower, equip, build and transform God’s
people for effective service through preaching,
teaching and witnessing in words and deeds.
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Corporate governance – role of the board and senior
management(courts and committees of the church).
Service charter – to show people our commitment to deliver
services in a satisfactory & efficient manner.
Human Resource Management – building their capacity for
greater productivity while ensuring economic use of the
resources.(performance management & team work). Don’t pay
excess salaries to executives
Budgets – both annual, reforecast and project budgeting –
ensuring we adhere to them. No major variations should be
allowed. Remember to include inflation rate.
Compliance – Ensure we comply with the existing laws and
regulations of the host country e.g. Annual returns to the
registrar of societies, NGO Coordination Board, KRA,OIG –USA
,Charitable Trust in UK etc.
Management /donor progress report – e.g. quarterly, semi
annually and annual. Both financial and narrative reports. PCEA
head office needs to be involved in monitoring & Evaluations and
where necessary give guidance as per its policies and priorities
outlined in the church corporate strategic plan.
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Donor reports – narrative and financial reports which may
be quarterly, semi annual, annual and at the project
completion- do we comply and is there set standards?
Head Office –must ensure that all projects conform to the
PCEA corporate strategic plan- do we give our priority
areas e.g. in the next 3 years? Which sectors to put more
efforts to?
Government of Kenya – Annual returns to KRA which must
include audited accounts, registrar of societies ,NGO
Board. – remember it is the responsibility of the board
members to comply with the law and now under the new
finance Act 2013 they can be personally held accountable
incase of tax evasion/non compliance with the law.
REMEMBER THAT IF ONE PCEA PROJECT FAILS –THE
GOVT,DONOR,SOCIETY WILL VEIW IT AS WHOLE PCEA.WE
NEED TO SAFEGUARD OUR NAME.
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The annual audited accounts must include:
Director/Trustee report – it states clearly that it
responsibilities of trustees to prepare the
financial statements.
Balance sheet –showing assets and liabilities
Income & Expenditure / fund accountability
statement -showing incomes and how the funds
have been utilized.
Cash flow statement –showing the movement of
cash and cash equivalent over the year.
Audit report – auditors only give an opinion.
Ratio analysis – give insight into the manner of
organizational operation e.g. current assets ratio,
debts to equity, percentages expenditures to the
budgets.
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Project management is the planning,
scheduling(work plans &action plans), monitoring
and evaluating of project activities.
At the beginning of a project you must set goals
which are SMART
You need to provide for indicators in the
following areas:
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Input,
Output.
Outcome
Target.
Goal.
Objectives & strategies.
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Balance score card
The balanced scorecard is a strategic planning
and management system that is used extensively
in business and industry, government, and
nonprofit organizations worldwide to align
business activities to the vision and strategy of
the organization, improve internal and external
communications, and monitor organization
performance against strategic goals. It was
originated by Drs. Robert Kaplan (Harvard
Business School) and David Norton as a
performance measurement framework that added
strategic non-financial performance measures to
traditional financial metrics to give managers and
executives a more 'balanced' view of
organizational performance.
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Ensure you an agreement/MOU between the institution
and the donor from the beginning of the project on how
the money will spent and what is expected of you from the
donor and timeframe of the reports.
Procurement procedures must be adhered to – We are
public institutions and must comply with Public
Procurement Oversight Authority rules.
Projects must be audited annually and before the close the
project and reports forwarded to head office and donor.
Ensure value for money.
Lately donor organizations are moving towards Payment
by Results(PbR) e.g. DFID,USAID.
Work plans and actions must be well designed to facilitate
implementation.
Project Finance manuals/guidelines.