Financial and Accounting Procedures Regulation

Comprehensive financial and accounting procedures regulation ensuring transparency, accountability, and compliance with international standards in all financial transactions and operations.

1

Definitions

The Organization: Refers to Saraya Al-Rahma for Relief, Reconstruction, and Development.
Financial Manager: The person responsible for managing the organization's financial affairs.
Accountant: The employee in charge of executing and recording accounting transactions.
Internal Auditor: The person responsible for verifying compliance of financial activities with policies and systems.
Executive Council: The supreme body that sets financial policies and approves budgets.
2

General Principles

  1. The organization adopts the principles of transparency and accountability in all its financial transactions.
  2. All resources must be utilized to serve the organization's humanitarian and development objectives.
  3. The organization adheres to recognized international accounting standards (such as IPSAS or IFRS).
  4. Duties must be segregated between documentation, execution, and auditing functions.
3

Budget Preparation

  1. Each department submits an annual budget estimate.
  2. The Financial Manager consolidates all estimates and prepares the draft general budget.
  3. The Executive Council approves the budget before the start of the fiscal year.
  4. No expenditures may be made outside the approved budget lines without written authorization from the General Director or Executive Council.
4

Payment Procedure Cycle

  1. Payment begins with a standardized payment request form detailing the purpose and beneficiary.
  2. The request must be accompanied by original supporting documents and invoices.
  3. The request is approved by the Administrative/Financial Manager before being submitted to the General Director or authorized signatory.
  4. A payment order is issued and delivered to the accountant to prepare the check or cash voucher.
  5. A copy of all documents must be archived in the financial records.
5

Collection Procedure Cycle

  1. All received funds must be documented using pre-numbered official receipts.
  2. No unofficial or unapproved receipts are permitted.
  3. All funds collected must be deposited in the organization's bank account within 24 working hours.
  4. Each transaction is recorded in the daily accounting records.
6

Bank Account Management

  1. The organization opens accounts in its official name at accredited banks.
  2. Checks must be signed by two authorized signatories, as designated by a resolution of the Executive Council.
  3. Direct cash withdrawals from the account are prohibited except for justified and urgent cases.
7

Accounting Records

  1. The organization maintains the following accounting records:
    • General Journal
    • General Ledger
    • Cash Receipts and Payments Register
    • Fixed Assets Register
  2. All records must be retained for no less than 7 years.
  3. Licensed accounting software shall be used to facilitate accurate and efficient record-keeping.
8

Advances and Petty Cash

  1. No advance may be issued without a formal decision stating the purpose, amount, and repayment period.
  2. Advances must be settled within 7 working days after the task is completed.
  3. Any delay or misuse will be deducted from the recipient's entitlements.
9

Procurement and Tendering

  1. A permanent procurement committee is responsible for overseeing purchases.
  2. Transparent tendering procedures are required for any procurement exceeding a set financial threshold (as defined by internal policy).
  3. All committee decisions must be documented in formal minutes.
10

Audit and Review

  1. An internal auditor shall be appointed to perform monthly audits of financial transactions.
  2. A licensed external auditor must be contracted annually to prepare the final audited financial statements.
  3. Audit results are presented to the Executive Council for appropriate action.
11

Violations and Penalties

  1. Anyone found to have committed fraud or negligence in financial management will be subject to investigation.
  2. The Executive Council has the authority to take disciplinary or legal action against offenders.
12

Final Provisions

  1. This regulation shall come into effect from the date of its approval by the Executive Council.
  2. It may be amended by a majority resolution of the Executive Council.
  3. A copy of this regulation shall be distributed to all relevant financial and administrative staff.