HR and Finance Policy

Understanding Basics of Policy

What are organizational policies?

• Rules and regulations employees must follow to keep operations running smoothly.

• Provide guidance to employees and protect the organization from legal risks.

• Cover areas such as:

  • Safety

  • Hours

  • Dress code

  • Use of company assets

  • Employee benefits

  • Paperwork submission

  • Harassment

  • Check signatories

  • Expenditure approvals

Why do you need policy?

• Helps control and monitor resources.

• Training tool for staff.

• Reference for staff, management, auditors, and evaluators.

• Ensures accurate data entry from documents.

• Enables effective management and reporting.

Why do you need procedures?

• Policies = "why"; Procedures = "how."

• Clear steps for routine tasks, with checklists and timelines.

• Defines individual roles and timelines for processing and reporting.

Who makes Policies?

• Board of Directors or Board Members appoint a financial committee.

• The committee prepares a draft, discussed and approved by the Board.

Responsibility for Implementation

• Finance: Director-Finance or Finance Manager

• HR: Director-HR or HR Manager

• Both ensure implementation and suggest updates.

Is Policy Only for Finance/HR Departments?

No, because:

• Every decision has finance or HR impact.

• Quality procurement and recruitment depend on policy.

• Organizations function through crosschecks and shared responsibility.

Finance Policy Contents

• Accounting Basics

• Budgeting and Budget Monitoring

• Investment, Treasury, Banking

• Donor Management

• Authorization Matrix

• Fund Flows

• Procurement

• Asset Management

• Travel Policy

• Petty Cash

• Audits and Assurance

• Fraud Management

• Sub Grants

• Statutory Compliance

Detailed Finance Topics (with Takeaways):

• Accounting Basics: Understand codes and documentation. Enables informed approvals.

• Investment, Banking, Treasury: Roles in fund access, bank signatories, and reporting.

• Donor Management: Respect commitments, maintain grant records, build credibility.

• Budgeting: Know processes, tracking, variances, and unbudgeted expenses.

• Authorization Matrix: Who can approve what (e.g., vouchers, bills, recruitment).

• Fund Flows: Monthly projections, request and release formats.

• Procurement: Templates, thresholds, good procurement leads to success.

• Assets: Buying, selling, maintenance, depreciation, and responsibilities.

• Travel Policy: Travel claims, approvals, entitlements, and conduct.

• Petty Cash: Limits, approval, storage, and reimbursement guidelines.

• Audits and Assurance: Types of audits, responsibilities, and rights during audits.

• Fraud Management: Prevention, helplines, investigation, and reporting.

• Sub Grant Management: Choosing sub-grantees, assessments, and fund release.

• Statutory Compliance: Legal structure, calendar for compliance, responsibilities.

• Other Topics: Office opening/closure, travel advances, vehicle use.

HR Policy Contents

Illustrative Policies

• Whistle Blower Policy

• Late Coming Policy

• Transfer Policy

• Promotion Policy

• Mobile Policy

• Job Rotation Policy

• Laptop Policy

• Reward & Recognition Policy

• Code of Conduct

• Harassment Policy

• Nepotism Policy

• Leave Policy

• Referral Policy

• Attendance Policy

• Recruitment Policy

• Compensation & Appraisal Policy

• Probation & Confirmation

• Internet Usage

• Dress Code

Why HR Policy Matters

• Senior Management: Implements policy with efficiency.

• Managers: Ensure transparency.

• Employees: Know their rights and duties, increasing trust and output.

HR Policy Details

• Leave Policy: Types, usage, carry-forward, monetization.

• Recruitment Policy: Channels, approvals, process, documentation, and onboarding.

• Appraisal Policy: Goal setting, measurement, ratings, feedback, timelines.

• Promotion Policy: Criteria, committees, timelines, and fast-track paths.

• Transfer Policy: Need-based, support offered, relocation help.

• Job Rotation: Rationale, coverage, protocol, evaluation.

• Nepotism Policy: Family member employment, definitions, conditions.

• Anti-Harassment Policy: Follows law and grants, covers all harassment types.

• Code of Ethics: Employee obligations, declarations.

• Equal Opportunity Policy: No bias based on gender, caste, etc.

• Termination Policy: Grounds and process for exit.

• Asset Usage Policy: Proper use and care.

Other HR Aspects

• Salary structure, increments, rewards, trainings

• Master file management

• Payroll creation

• Attendance/timekeeping

• Visitor policies

Other Policies

• Risk Management: Mapping, mitigation.

• Disaster Management: Backups, alternate setups.

• Security Policy: Threats and response protocols.