1. Policy Statement

Chalan Foundation is committed to maintaining the highest standards of financial integrity, transparency, and stewardship. This policy ensures that all financial activities are managed responsibly and in accordance with donor expectations, legal requirements, and ethical principles.

2. Purpose of the Policy

This policy outlines Chalan Foundation’s approach to financial management, internal controls, reporting, and donor accountability.

3. Scope

This policy applies to:

• All financial operations of Chalan Foundation
• Staff, board members, consultants, and contractors with financial responsibilities
• Projects funded by donors, partners, or internal allocations

4. Key Principles

• Transparency: Financial records will be accurately maintained and made available for review
• Stewardship: Resources will be used for intended purposes and with maximum impact
• Accountability: Regular internal and external audits will be conducted
• Compliance: Adherence to legal, regulatory, and donor financial requirements

5. Financial Controls and Practices

• Clear roles and segregation of duties for financial transactions
• Documented financial procedures for procurement, disbursement, and reporting
• Budgeting aligned with strategic priorities and approved annually
• Regular financial reconciliations and reviews
• Bank accounts maintained in the name of the Foundation with dual signatories

6. Audits and Reporting

• Annual independent audits will be conducted by certified external auditors
• Quarterly financial reports will be reviewed by the Board of Directors
• Donors will receive timely and transparent financial reports as per grant agreements

7. Fraud Prevention and Whistleblower Mechanism

• All suspected fraud, theft, or financial mismanagement must be reported immediately
• Anonymous reporting mechanisms will be provided
• Investigations will be conducted and disciplinary action taken as necessary