ODSS for Affiliates
Finance & Procurement Policy
Finance, Procurement & Accountability Framework
This policy provides Beyond Binary Community Based Organization with a practical framework for responsible management of organizational and donor resources, transparent procurement, financial accountability and effective stewardship.
It applies to the Board, management, staff, volunteers, consultants, project teams, procurement committee members and other persons authorized to manage or account for organizational resources.
Policy at a Glance
Accountability
Every person entrusted with organizational resources is accountable for their proper and authorized use.
Transparency
Financial and procurement decisions must be supported by appropriate documentation and clear approvals.
Value for Money
Resources shall be used economically, efficiently and effectively.
Integrity
Fraud, bribery, corruption, falsification and personal benefit from organizational resources are prohibited.
Fairness
Procurement shall provide fair and non-discriminatory opportunities to eligible suppliers.
Confidentiality
Financial, supplier, staff and beneficiary information shall be securely handled and shared only for legitimate purposes.
Policy Contents
Introduction & Purpose
Beyond Binary Community Based Organization recognizes that sound financial management and transparent procurement are essential to effective programme delivery, accountability to communities, donors and regulators, and organizational sustainability.
It also establishes procurement procedures for acquiring goods, works and services in a fair, transparent, competitive and value-for-money manner.
Policy Objectives
- Protect organizational assets and resources from loss, misuse, fraud and unauthorized expenditure.
- Ensure accurate, complete and timely financial records and reports.
- Establish clear authority, accountability and segregation of duties.
- Strengthen budget discipline and link expenditure to approved work plans and budgets.
- Ensure statutory deductions, remittances and returns are managed within applicable deadlines.
- Ensure procurement obtains the right quality and quantity at a reasonable price and within the required timeframe.
- Promote fairness, non-discrimination, integrity, confidentiality and transparency in procurement.
- Provide a reference and training tool for Board members, management, staff, volunteers and others handling organizational resources.
Scope & Applicability
This policy applies to the Board, Executive Director, Treasurer/Finance Lead, employees, interns, volunteers, consultants, procurement committee members, project teams and any person authorized to receive, manage, procure, approve or account for Beyond Binary resources.
It applies to unrestricted funds, donor funds, project funds, membership or locally generated income, grants in kind, assets, advances and all procurement undertaken on behalf of the organization.
Governance & Responsibilities
Board of Governance
Approves the Finance and Procurement Policy, annual budget, major financial commitments, banking arrangements and audited financial statements.
The Board also provides fiduciary oversight and ensures management responds to audit findings.
Executive Director
Implements Board decisions, enforces internal controls, approves expenditure within delegated authority and ensures donor compliance.
Finance Lead / Treasurer
Maintains accounting records, prepares budgets and reports, processes authorized payments, performs reconciliations and monitors statutory obligations.
Programme / Project Leads
Prepare activity plans and budgets, confirm programme expenditure is necessary and eligible, monitor budget performance and certify delivery of outputs.
Procurement Committee
Reviews competitive procurements, evaluates bids, documents recommendations and manages conflicts of interest.
All Staff
Comply with the policy, protect organizational property and report suspected fraud, conflicts of interest or irregularities.
Financial Management Framework
Beyond Binary shall maintain appropriate controls for financial planning, accounting, income, cash, banking, expenditure, travel, payroll, statutory deductions, reporting and audit.
Financial Planning & Budgeting
- Annual work plans and budgets shall align with organizational priorities and approved programmes.
- Each project shall have an approved budget before expenditure begins.
- Budget performance shall be reviewed at least quarterly.
- Material variances shall be explained and corrective action documented.
- Budget reallocations shall not circumvent donor restrictions or approval requirements.
Banking, Payments & Internal Controls
- Bank accounts shall be maintained in the organization's legal name.
- At least three approved signatories should be maintained where practical.
- Any two authorized signatories should ordinarily approve transactions.
- Blank cheques shall never be pre-signed.
- Electronic payments shall follow the same authorization controls as cheques.
- Bank accounts shall be reconciled monthly.
Imprest, Travel & Reimbursement
- Travel advances shall be approved before travel.
- Imprest shall normally be surrendered within seven calendar days after completion of travel or activity.
- Unused balances shall be returned promptly.
- Reimbursement shall only be made for eligible and documented expenses.
- Donor-specific rates shall prevail where applicable.
Payroll & Statutory Compliance
Applicable statutory deductions and employer obligations shall be calculated, reconciled and remitted within the deadlines prescribed by law or the relevant authority.
Beyond Binary shall maintain a statutory compliance calendar covering applicable tax, social security, health insurance and other regulatory obligations.
Procurement Policy
Procurement is the acquisition of goods, works, services, consultancy and other inputs required to implement Beyond Binary's approved activities and operations.
Procurement Principles
Where practical, Beyond Binary may encourage participation of local small businesses and enterprises led by women, youth and persons with disabilities, provided quality, eligibility and value-for-money requirements are met.
Procurement Thresholds
The following internal procurement thresholds apply unless a donor agreement, contract or applicable law requires a stricter procedure.
| Estimated Value | Minimum Procurement Method | Core Documentation / Approval |
|---|---|---|
| Up to KES 20,000 | Direct purchase / reasonable price check | Requisition, approval, invoice/receipt, proof of receipt and Finance verification. |
| KES 20,001 – 100,000 | At least 3 written quotations where reasonably available. | Requisition, specifications, quotations, comparison/evaluation, approval, PO/LPO where appropriate and receipt/GRN. |
| KES 100,001 – 500,000 | Competitive written quotations/RFQ or another documented competitive method. | Procurement file, specifications, quotations, evaluation, approval, PO/contract and receipt. |
| Above KES 500,000 | Formal competitive procurement, open or selective process as appropriate. | Procurement Committee and Board-level approval as applicable, formal solicitation, evaluation, award and contract. |
Procurement Process
Fraud, Corruption & Conflict of Interest
- Staff and Board members shall disclose actual, potential or perceived conflicts of interest.
- Persons with conflicts shall not participate in affected decisions.
- Employees and Board members shall not request or accept personal benefits from suppliers.
- Suspected fraud may be reported confidentially to the Board Chair, Executive Director or designated complaints mechanism.
- Good-faith reporting shall not result in retaliation.
- Suspected fraud shall be investigated and appropriate disciplinary, recovery or legal action taken where necessary.
Asset Management & Records
Asset Register
Significant organizational assets shall be recorded with appropriate information including description, serial number, acquisition date, cost, funding source, location, custodian and condition.
Asset Verification
Assets shall be tagged or otherwise identifiable where practical and verified at least annually.
Asset Disposal
Disposal shall be approved, documented and undertaken transparently. Donor-funded assets shall follow applicable donor requirements.
Records Security
Financial and procurement records shall be securely stored, retrievable for audit and protected from unauthorized access.
Risk Management & Compliance
Management shall maintain a practical finance and procurement risk register covering key organizational risks.
Financial Risks
- Fraud
- Theft
- Unauthorized expenditure
- Cash risks
Compliance Risks
- Delayed statutory remittances
- Donor non-compliance
- Incomplete records
- Audit findings
Procurement Risks
- Conflict of interest
- Supplier manipulation
- Non-competitive procurement
- Poor value for money
Implementation, Training & Review
The Board and management shall ensure that this policy is communicated to all relevant personnel.
- Finance, operations, programme and procurement personnel shall receive periodic training.
- Training shall cover financial controls, procurement, statutory compliance and donor requirements.
- Compliance should be reviewed at least annually through management checks and, where appropriate, internal or external audit.
- The policy shall be reviewed at least every three years or earlier where legislation, donor requirements, organizational structure or operational risks change significantly.
- Amendments shall be approved by the Board.
Policy Approval & Adoption
The Board of Directors / Board of Governance of Beyond Binary Community Based Organization hereby adopts this Finance and Procurement Policy for implementation during July 2026 – June 2029.
All personnel and representatives handling organizational resources are required to comply with this policy.
Signature: __________________
Date: _______________________
Signature: __________________
Date: _______________________
Signature: __________________
Date: _______________________
Beyond Binary's Financial Accountability Commitment
Beyond Binary is committed to responsible stewardship of organizational and donor resources through integrity, accountability, transparency, value for money, fair procurement, compliance and effective governance.