Overview on Key Policies for NGOs

• RulesOrganization policies are internal rules and regulations employeesfor mustsmooth follow to keep operations running smoothly.operations.

• ProvidePolicies guidanceact toas employeesa andframework protectfor thedecision organization from legal risks.making.

• CoverPolices areasare suchtools as:of internal control.

Policies cover various areas/functions/matters of an organization.

Policies ensures suitable risk management system.

• Safetya. Statutory

  POSH-The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, Child protection policy if working with children.

• Hoursb. Others

Finance

DressAdmin. code

Useequity and inclusion) policy. Code of companyconduct/ethics. assets

EmployeeRisk benefits

Paperworkbackup submission

Harassment

Checkanti signatories

Expenditure approvalsLobbying.

Why

• HelpsPurpose: controlThey outline the organization's values, expectations and monitorstandards resources.of behavior.

• TrainingFormal tooland Written: Policies are typically documented for staff.uniform understanding and policy compliance.

• ReferenceOperational forProcedures: staff,They management,define auditors,how andtasks evaluators.are performed, such as leave requests, expense reimbursements, or data security procedures.

• EnsuresLegal accurateCompliance: dataPolicies entryensure fromthe documents.organization adheres to relevant laws and regulations.

• EnablesCommunication: effectiveThey managementprovide a clear understanding of expectations and reporting.

  help

Why do you need procedures?

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

ClearFor stepsEmployees: Policies are meant for routinebeing tasks,followed withby checklistsemployees andfor timelines.discharging duties.

DefinesConsistency: individualPolicies rolesensure that everyone is treated fairly and timelinesthat fordecisions processingare made in a consistent manner.

Risk Management: Policies help identify and reporting.mitigate risks, including security risks and compliance risks.

Who

• BoardA control tool to monitor resource use efficiently and effectively.

To enhance completeness and accuracy of Directorstransactions.

To provide accurate and reliable reports to enable management for effective decision making.

A framework for reference by the staff, management, auditors and other stakeholders i.e. auditor, external agency.

A training resource.

Policies are principles or Boardrules Membersfor appointdecision-making. They show the "why" behind an action. Policies provide the overall framework and direction. Finance policy is a financialpolicy...

Procedure explain the "how" to carry out the policy. Procedures outline the practical steps to achieve policy goals. Provide step-by-step instructions/ checklist or process guide to follow. Procedure is clearly defined list of the tasks to be carried out. As a timetable for processing transactions and producing reports. ...but how to record accounting transactions, how to do banking etc are procedures.

Responsibility rests with Governing Body as part of its fiduciary (trust) responsibility.

The committeeGoverning preparesBody may delegate formulation of draft policy to a draft,sub discussedcommittee of the Governing Body which comprise of subject matter experts.

Draft policy is considered, modified and authorized by the Governing Body for implementation.

Policy is a dynamic construct and all modifications made in future based on the evolution of the organization are considered and approved by theGoverning Board.

Responsibility for Implementation

Finance: Director-Finance or Finance ManagerBody.

HR:Such Director-HRrevisions orare HRnotified Managerfrom a particular date, generally the date of approval in the GB meeting.

The Head of the function is primarily responsible for ensuring that the policy is fully implemented.

BothHead ensureFinance implementationis responsible for the Finance policy and suggestHR updates.

Is Policy OnlyHead for Finance/HR Departments?

No, because:

Every decision has finance orthe HR impact.Policy.

QualitySome procurementpolicies andmaybe recruitmentthe dependresponsibility onof policy.Chief Functionary like Conflict of Interest etc.

OrganizationsPolicies functionare applicable throughout the organization.

The policy holders through crosschecksthe Chief Functionary make recommendations to Governing Body for modifications/revision in policy based on need and sharedrelevance responsibility.at particular point in time.

• Authorization Matrix

Accounting

Payment & Advances

Budgeting and Budget Monitoring

Fund Flows

Investment, Treasury,Treasury and Banking

Donor Management

Authorization Matrix

Fund Flows

Procurement

Asset Management

Travel Policy

Assets management

Petty Cashcash Management

Audits and Assuranceassurance

Statutory Compliance

Fraud Management

Sub Grants

Statutory Compliancegrants

Detailed

• AccountingWhat Basics:it covers: UnderstandWho codeshas the original authority to take various decisions as per the formation document of the organization as well as the matrix for delegation of such authority. It specifies the level and documentation.threshold Enablesamounts informedof approvals.authorization for financial or other decisions.

• Investment,Role Banking,and Treasury:Takeaway for people from other departments: RolesWho inwill fundapprove access,the bankrequisition signatories,for expenditure/ expenditure incurred. Who has the authority to approve transactions/documents like vouchers, travel bills, budgets, Purchase orders, Agreements, new recruitment etc.

What it covers: Method of accounting, Accounting software, Chart of Accounts, Accounting Codes, Cost Centers, Project Codes, Books of accounts and other records, form, place, period as per law, Flow of Accounting Process, Reconciliation and Closing, Final accounts and reporting.

DonorRole Management:and Takeaway for people from other departments: RespectCorrect commitments,organizational maintaindata grantis records,generated buildfor credibility.correct decision making and reporting. Understand and fill up correct codes. As cost-center heads / supervisors, make informed and knowledgeable approvals.

What it covers: Types of payments-vendor, employee, consultant, works etc., approval matrix, authorisation, timelines, Advance-travel, program and personal, eligibility for advance, settlement of advance.

Budgeting: Know processes, tracking, variances,Role and Takeaway for people from other departments: Ensure payments are authorised as per delegation and after expenses has been approved. Check policy, eligibility and entitlement for various advances.

What it covers: Budget org structure for org and project budgets, tracking budget through variance analysis; budgetary controls, procedure for budget check; procedure for revision of budget; authority for approval of unbudgeted expenses.exp. Common/shared cost allocation policy, post award budget amendments like realignment, NCE etc.

AuthorizationRole Matrix:and Takeaway for people from other departments: WhoUnderstanding canyour approverole in the budget making process and budget tracking; Process of budgetary check when you requisition for an expenditure; what (e.g.,to vouchers,do bills,when recruitment).something is not budgeted; procedure for revision of budgets; ultimately helps you keep in track for achieving the objectives of the project as owners of the budget.

What it covers: Procurement process/cycle. Cateogry and Methods of Procurements; thresholds for applicability of procurement procedure based on materiality. Sole sourcing, E procurement, Vendor Management, Lease of offices.

Fund Flows: Monthly projections, requestRole and releaseTakeaway formats.for people from other departments: For getting the right goods/services which fits your requirement and thus contributing to the success of the project. Also contribute to cost management and value for money.

What it covers: Travel Approval and Expenditure claim procedure, Approval and claim format; Details of modes of travel, lodging and boarding and cost benefit analysis; Local conveyance; Entitlements details as per different levels; Different categories of cities; Per Diem details; Travel insurance while on international travel; Safety & security of employees during travel; Travel policy best practices.

Procurement:Role and Takeaway for people from other departments: Templates,Travel thresholds,policy goodgives procurementstandardized leadsrules toand success.regulations while on travel. It saves time of employees as processes and procedures are clearly mentioned. Also results in better analysis with the inputs received from employees review. It helps in cost management. It determines do's and don'ts of conduct/behaviour while travelling.

What it covers: Risk Management Policy and Process, Internal Controls, Insurance, Fraud Detection, prevention, reporting and investigation, Ethics, accountability and Transparency.

Assets: Buying, selling, maintenance, depreciation,Role and responsibilities.Takeaway for people from other departments: Understand your responsibilities in contributing to the control environment as a responsible employee and citizen.

Leave Policy

TravelEmployee Policy:Referral Travel claims, approvals, entitlements, and conduct.Policy

PettyAttendance Cash: Limits, approval, storage, and reimbursement guidelines.Policy

AuditsRecruitment and Assurance: Types of audits, responsibilities, and rights during audits.Policy

FraudCompensation Management:& Prevention,Performance helplines,Appraisal investigation, and reporting.Policy

Sub Grant Management: Choosing sub-grantees, assessments,Probation and fundConfirmation release.Policy

StatutoryInternet Compliance: Legal structure, calendar for compliance, responsibilities.Policy

OtherDress Topics:Code Office opening/closure, travel advances, vehicle use.Policy

HR Policy Contents

Illustrative Policies

• Whistle Blower Policy

• Late Coming Policy

• Transfer Policy

• Promotion Policy

• Mobile Policy

• Job Rotation Policy

• Laptop Policy

• Reward &and Recognition Policy

• Code of Conduct Policy

• Harassment Policy

• Nepotism Policy

LeaveNeed Policyanalysis and requisition for a recruitment; preparing job description and budgetary approval for recruitment;

ReferralVarious Policychannels for recruitment, process for various types of recruitment-external or internal(IJP); selection process and selection committee;

Attendanceprocess Policyof skill matching; process of approval and documentation of a recruitment process; background verification, appointment letter and on-boarding.

Recruitment Policy

Compensation & Appraisal PolicyInduction

Probation

Compensation elements and breakup, salary band for fixation and increment;

InternetRetiral Usageand other benefits-EPF, ESI, Gratuity etc, Other benefits i.e. insurance, communication allowance etc;

DressReward Code

Why HR Policy Matters

Senior Management: Implements policy with efficiency.policies;

Managers:trainings Ensureskill transparency.and value related;

Type and number of leaves eligibility for staff; procedure to avail each type of leave, carry forward of unused leave, monetization of leave.

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

HR

• LeaveHow Policy:goals Types,for usage,employees carry-forward,for monetization.each year will be set.

• RecruitmentHow Policy:these Channels,will approvals,be process,measured: documentation,weightage for competency and onboarding.values.

• AppraisalHow Policy:the Goalratings setting,will measurement,be ratings,decided; feedback,Formats timelines.for self appraisal, feedback forms and mechanism for feedback; timelines; mode of communication, process of escalation in case differences arise etc.

Policy against sexual harassment of women at workplace, it can be gender neutral also, Internal committee (IC) where employee strength exceeds 10, create awareness and visibility of POSH and IC, management facilitate enquiry for POSH matters to IC, Annual reporting by IC to management and district authority if more than 10 employees.

PromotionPOSH Policy:compliance Criteria,in committees,Directors 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 processReport for exit.

Asset Usage Policy: Proper use and care.company.

• Risk Management:Management Policy: Mapping,Procedure mitigation.for mapping the risks in the organization. Then taking mitigating measures for high risks so that the same are brought to an acceptable level; incorporating all the risks and their mitigations with the process with which they are associated.

Conflict of Interest Policy: define, identify, handle and report conflict of interest situation.

Disaster Management:Management Policy: Backups,What to do if disaster strikes; where to get back-ups; what to do to prepare for disaster; keeping back-ups off site, alternate setups.places of operation, insurance policies.

Security Policy:Policy: ThreatsDeveloping anda responsesecurity protocols.manual, identify security threats, protocol for management of security at every location.