Maintaining meaningful and well-considered policies and procedures is a critical component of a strong financial management system. They are used to establish an organization’s internal controls and for ensuring compliance with regulatory standards, as many nonprofit funders expect grantees to comply with specific policy and procedure guidelines. Documenting the organization’s fiscal policies also serves as an important tool for clarifying roles and responsibilities and ultimately for ensuring that the organization’s financial data is an accurate and reliable basis for organizational decision making.
Maintaining a Strong Financial System
