Introduction

This ‘A Manager’s Financial Management Checklist’ is part of Mango’s guide to financial management for NGOs

 

Accounting Records

  • Are the books of account up to date, reconciled, and in good order?
  • Are supporting documents filed and complete?
  • Could you follow a complete transaction from start to finish through the accounting records?
  • Does the bank reconciliation show any unusual or unexplained items or activities – eg old cheques, delayed banking of cash?
  • Is the Chart of Accounts up-to-date, user-friendly, and available to everyone who needs it?

 

Financial Statements

  • Is income broadly in line with expenditure, or as planned?
  • Is there enough cash available to pay off immediate debts?
  • How long ago since the last external audit was conducted?
  • What was the auditor’s opinion?  If it was a qualified opinion, what action has been taken?

 

Budget Monitoring Reports

  • Are reports circulated regularly and promptly?
  • Are income and expenditure broadly in line with the budget?
  • Are there any unusual variances? Are there properly explained?
  • Are linked budget items behaving consistently?
  • Do the figures match the narrative progress reports?

 

Internal Control

  • Is there an adequate separation of duties in practice?
  • Complete a spot check on the cash – are there any ‘IOUs’ or unexplained shortages?
  • Is there a higher than usual use of cash?
  • Complete a spot check on the salaries records – look for ‘ghost workers’ and check that tax has been paid to the authorities.
  • Is there one supplier who suddenly seems to be used more often than others?
  • Check the assets register – is all equipment listed and where it is supposed to be?
  • Are insurance policies up to date?
  • Are the safe, stock room, and cash box keys kept secure at all times?

 

Behavioral change

  • Does anyone display lifestyle changes – such as new spending patterns (e.g. new car/clothes?) or signs of alcohol/drug abuse?
  • Is there someone who is always the first in and last out of the office and takes no holidays?

 

Reference: Mango