Best practices are specific, discrete ministry activities that measurably increase program scale, effectiveness, and/or efficiency, and can be replicated by other National Ministries. Best practices should be supported by evidence (data).
Developing a written financial policy is a necessary step in establishing your ministry as both accountable and trustworthy.
Financial policies clarify the roles, authority and responsibilities for essential financial management activities and decisions. Without a finance policy, the organization is left to operate under a “what seems best to me” mindset that may be insufficient or even damaging to the organization.
Building a complete financial management system requires both an accounting system and an administrative system made up of financial policies.
A financial policy has many different functions:
1. Human Resources