Financial Health Check

  • How financially fit is your non-profit organisation?
  • Are its financial resources well managed?
  • How healthy are your financial control systems?

This checklist will diagnose the health of your organisation's systems of financial management.

Welcome to your test

NameBusinessEmailPhone Number

1. The governing body of our organisation (board, management committee, etc.) carefully reviews the financial status of our organisation when it meets by reviewing financial reports.

2. Programme managers or project coordinators of the organisation receive and review monthly reports showing income and expenditure against budget and other key financial information for their area of work.

3. When problems are identified through the financial reports, corrective action is taken by the appropriate persons to institute better controls or reduce costs. Show level of confidence:

4. The organisation relies on the external auditors to detect errors or fraud. (Choose the extent on which you rely on the audit to detect error or fraud).

5. The organisation has the support of a person (other than staff members) who possesses qualifications and experience in accounting or financial management and who takes an active role in the organisation.

6. An independent person in our organisation (not the administrator or bookkeeper) reviews the bank reconciliations on a monthly basis and monitors all outstanding items.

7. We issue receipts for all money we receive from grants, donations, gifts and all other forms of income.

8. All money received is banked in full as soon as possible. (No cash received is spent)

9. Two signatories are required to authorise ALL cheques and payment instructions in the form of two signatories or two password holders releasing payment.

10. Staff MAY NOT make financial commitments on behalf of the organisation (place orders or incur costs) WITHOUT prior approval or authorisation. Choose level of confidence.

11. We feel confident that the South African Revenue Services would be completely happy with our employee’s tax and/or VAT accounting. Choose level of confidence.

12.The organisation has effective procedures in place to ensure that all income due to the organisation is received in full and on time. Choose level of confidence.

13. Staff members are prevented from receiving remuneration and/or honoraria from outside the organisation, which may be seen as “double” or inappropriate payment. Choose level of confidence:

14. The organisation has projected cash flow and prepares forecasts at least one year in advance. Choose frequency of this exercise.

15. We keep a register of all our capital items (computers, furniture, vehicles, etc.) and have effective control mechanisms in place to ensure proper use of these items. Choose level of confidence.

16. We use donor funds strictly according to the contracts and only for the purposes for which the money was given and are able to clearly demonstrate this. Choose level of confidence.

17. All funders receive narrative and financial reports or audited statements on a timely basis, when due.

18. We rate our ability to prepare realistic budgets based on the cost of future activities planned (considering our record of the past).

19. The program managers and other program staff participate fully in development of budgets.

20. The use of cash (including cash or uncrossed cheques) to pay costs is limited and controlled. Indicate what describes your organisation best.

21. Original vouchers and or documents support all payments and clearly show the purpose for the payment and that goods and services were received by the organisation and/or organisational purposes.

22. If all donors’ funding were to end today, how long would present resources sustain the organisation?

23. The director and project managers make important decisions with financial implications based on accurate financial reports and forecasts. Choose the level of confidence.

24. The funding base of the organisation is diversified and we are not dependent on one major funding source.

25. Financial and administrative staff have opportunities to acquire additional skills and to receive ongoing support in their work.

26. Bank balances and balance of all amounts owing to or by the organisation are formally reviewed and explained to senior management.