Tearfund Partner Organisational Assessment Financial Management
This checklist covers some fundamental aspects of financial management and its purpose is to
inform Partners of Tearfund’s expectations and to identify areas where Tearfund may be able to
offer advice or support.
Please answer each item by ticking the box ‘Yes’ or ‘No’ and make any comment where you feel a
simple ‘Yes’ or ‘No’ does not adequately describe your situation. Answering ‘No’ to any of the
statements will not prevent your project being funded but will inform Tearfund about the
appropriate level of monitoring and support for your organisation.
Name of Organisation:
Section 1: Basic Systems
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
Yes
No
Comment
Yes
No
Comment
Supporting Documents
A valid supporting document is kept for each income
and expenditure transaction
Supporting documents are filed and referenced, so that
it is easy to trace any document from the accounting
records
The bank statements for each bank account are filed
and form a complete sequence
Supporting documents and bank statements are kept
secure for the previous five years
Cashbooks
The date, description and amount of every transaction
are recorded systematically in a cashbook or
appropriate ledger
A separate cashbook is kept for each bank and cash
account.
Accounts Codes
A standard Chart of Accounts is used consistently to
prepare financial records, budgets and reports
Transactions are also classified by project or activity
using a standard list of ‘cost centres’ or department
codes
Section 2: Planning
2.1
2.2
2.3
2.4
Budgets
A Budget is prepared for every project before the
project starts, showing sources of income as well as
costs
A Budget is prepared annually for the core costs of
running the organisation and the expected sources of
income.
Where more than one donor is involved the budgeted
project costs are allocated to each donor in a funding
plan.
A cash flow forecast is prepared for the organisation
and updated regularly through the year.
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Form 3.C (Ver.2.1)
Section 3: Reporting
3.1
3.2
3.3
Yes
No
Comment
Yes
No
Comment
Reporting
All Project Managers receive accurate budget monitoring
reports promptly after the end of each month/quarter
Accounts are produced each month/quarter to monitor
the organisational administration budget, and Balance
Sheet
Variances on each budget monitoring report are
reviewed by a manager and appropriate action is agreed
Section 4: Internal Controls
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
4.12
4.13
4.14
4.15
Controls over money and assets
All cash kept in the office is in a locked cash box or
safe with access restricted to a specific keyholder.
All bank accounts are held in the name of the
organisation, not in the name of individuals.
There is a written policy setting out which members of
staff or the Board can sign cheques, and their authority
limits
Each transaction is authorised by the appropriate
member(s) of staff (budget holders)
Staff check that goods and services bought by the NGO
have been received before bills are paid.
Cheques are only signed after details of payee and
amount are written in and supporting documents have
been checked
Staff salaries (including advances and loans) are
checked by a senior manager or Board member every
month.
All assets owned by the organisation are recorded in an
Asset Register.
Financial duties are segregated so that no one person
can both carry out and record a financial transaction.
Checks and reconciliations
Petty cash records are checked and balances physically
verified every month by a manager or director.
All cash book balances are reconciled to the bank
statement every month and checked by a manager or
director.
All other balances, debts due or payable, are reviewed
every three months by a director.
Computer accounting systems
The computer system maintains an audit trail of all
data entries and changes.
Access to the computer system is restricted to specific
staff with the use of passwords.
The computer system is backed up frequently onto
disks or tapes which are kept secure from fire or other
loss.
Please use a separate sheet if there is insufficient space for your comments
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Form 3.C (Ver.2.1)
The information presented in this checklist is, to the best of my knowledge, complete and
accurate.
Completed by:
Position:
Signed:
16/02/10
Date:
3
Form 3.C (Ver.2.1)