Our Financial Policy
The Kalama Your Friend Community Based Organisation (KYF CBO), founded in 2019, is dedicated to the welfare and protection of children and young people in Mityana, Uganda. This Financial Policy outlines our commitment to ensuring a safe environment for all children involved in our programs, including but not limited to the Pen Pal Program, football activities, and various community outreach initiatives. This financial policy is designed to uphold the principles of honesty, fairness, transparency as well as compliancy.
Due to our efforts in the last year, we have grown as a community in strength, in numbers and in a more structured way of working. Therefor we have been pushed and instructed to move from a Community Based Organisation (CBO) to a more official and worldwide recognised form: a Non Governmental Organisation (NGO). We are preparing to become an NGO, by setting up and describing our:
Furthermore, the scope encompasses all aspects dealing with financials, being:
Budgeting At the beginning of each year, the organisation will determine a budget needed to ‘manage the organisation’, meaning that an amount is estimated for eventual expenses like housing, administrative costs, compensation, travel and any other costs that can be expected. The budgets determined will be evaluated on a quarterly basis.
After determining the budget, an estimation will be made of the different streams of income that will provide for this budget. Scenarios will be evaluated for the situations in which the income streams might not cover the expected expenses, so that the organisation can act accordingly.
For all intended and planned community development projects, a separate budget is determined, for each project (with a minimum, an expected and a maximum scenario). Once a project is approved by the Director, a separate project administration is setup to register all income and expenses related to the project.
Bookkeeping The organisation will ensure that the administration will reflect all assets, liabilities, income and expenses that are related to the organisation. Each quarter, a financial report will be made and reviewed in order to decide if adjustments are required. This encompasses both the regular activities as well as the individual projects.
Income streams Both generic donations and income generated by the (activities of the) organisation will be assigned by default to the organisation. The organisation will determine which part of those donations will be reserved or assigned to other areas and activities.
Income generated by a project will be assigned by default to the organisation. The organisation will determine which part of those donations will be reserved or assigned to the project to extend its activities or to other areas and activities.
Expense Monitoring All expenses related to managing the organisation will be reviewed on a regular basis to ensure that only costs that are applicable will be made and that all costs are in line with the budget and approved by the director(s) of the organisation.
All expenses made for a specific project will be registered in the administration of the respective project and reported upon.
Reporting On a quarterly basis, reports will be produced to reflect all activities that have been carried out by the organisation, being their regular activities as well as a separate report for each project that is being executed.
Budgeting At the beginning of each year, the organisation will determine a budget needed to ‘to take care of the community’, meaning that an amount is estimated for eventual expenses like housing, food, health, education, compensation, travel and any other costs that can be expected. The budgets determined will be evaluated on a quarterly base.
After determining the budget, an estimation will be made of the different streams of income that will provide for this budget. Scenarios will be evaluated for the situations in which the income streams might not cover the expected expenses, so that the organisation can act accordingly.
Note (2024/2025): at first, the scope of the community is the current population of KYF CBO, being 70 children and 6 adults.
Bookkeeping The organisation will ensure that the administration will reflect all income and expenses that are related to taking care of the community members. Each quarter, a financial report will be made and reviewed in order to decide if adjustments are required.
Income streams Both generic donations for the community members and income generated by the (activities of the) organisation will be assigned by default to the organisation. The organisation will determine which part of those donations will be reserved or assigned to other areas and activities.
Expense Monitoring All expenses related to taking care of the community will be reviewed on a regular basis to ensure that only costs that are applicable will be made and that all costs are in line with the budget and approved by the director(s) of the organisation.
Reporting On a quarterly basis, reports will be produced to reflect clearly all activities (and related expenses) that have been carried out related to the care taking of the community members. These expenses will be evaluated so that decisions for eventual adjustments can be made.
After determining the budget, an estimation will be made of the different streams of income that will provide for this budget. Scenarios will be evaluated for the situations in which the income streams might not cover the expected expenses, so that the organisation can act accordingly.
Bookkeeping The organisation will ensure that the administration will reflect all income and expenses that are related to the formal activities. Each quarter, a financial report will be made and reviewed in order to decide if adjustments are required.
Expense Monitoring All expenses related to the formal activities will be reviewed on a regular basis to ensure that only costs that are applicable will be made and that all costs are in line with the budget and approved by the director(s) of the organisation.
Reporting On a quarterly basis, reports will be produced to reflect clearly all activities (and related expenses) that have been carried out by the organisation, related to all their formal activities. These expenses will be evaluated so that decisions for eventual adjustments can be made.
For the justification of the project costs, each project facilitator will provide sufficient information to produce a progress report together with the financial report, so that they can be evaluated both at the same time.
All reports will be treated confidentially; however, information may need to be shared with relevant authorities as part of safeguarding procedures.