Overview
Aim
You are able to account fully for the financial resources with which you have been entrusted.
Key questions before leaving head office
- How does your head office expect you to account for money you receive? Is it possible?
- Does your organisation have standard accounting systems, software programmes and forms? How will you set these up?
- Do you have the necessary financial staff?
- Which members of your team have taken (or will) take programme advances that you will have to account for?
See also 'Controls' section, which aims to avoid errors, waste, misuse, fraud and theft of these resources
What to do from the outset
- Get yourself and your team in the habit of recording money received and spent, and keeping all receipts.
- Set up at least the basic accounting survival system.
Cash payments and programme advances
In the early stages of an emergency many team members will be making cash payments using programme advances. Some of these payments will be very large. There are high risks involved:
- Advances are never fully accounted for
- Money is lost, stolen or misused. Case study
- Team members are injured or killed during robberies.
From the start:
- Make sure all advances are recorded. Without records it rapidly becomes very difficult to keep track of advances leading to loss of money and friction between the accountant and team members.
As soon as possible, reduce the number of :
- Payments made in cash by opening a bank account. See bank accounts in Controls section.
- People handling cash - possibly one staff member for small cash payments (Petty Cash) and one other staff member for larger payments.
Developing systems
Survival systems are suited to the early days of an emergency but more developed systems will be needed to improve your ability to manage the finances. Aim to set up your organisation's full accounting system as soon as possible. More
Financial reports and audits
Regular financial reports will be needed by:
- Your organisation: e.g. line manager, fundraisers.
- Donors.
Audits may happen at any time. This may be because something has gone wrong or because the law, donors or your organisation requires it.
If you can not sort out the accounts
- Accept that someone has to sort them out - and the sooner the better.
- It is possibly a sign that you do not have enough staff or that your systems are inadequate.
- Bring in an accountant immediately.