Fiscal Responsibility & Accountability
The Board of Lifewater Canada has ensured that there a framework for financial and operational policies and procedures was developed, documented and implemented. A detailed copy of this document can be provided if required for grant consideration. Highlights include:
- There are a series of internal process controls governing the issuance of charitable donation receipts, petty cash limits, approvals process for capital purchases over a specified amount, two signatures for cheques over a specified amount etc;
- Receipting duties are separated responsibilities from authority to spend money;
- Monthly financial transactions are reviewed and booked by a Financial Controller who does not receive donations or disperse funds;
- The Board conducts a mid-year review of balance sheets and adjusts budgets as required
- Annual Financial Statements are prepared by BDO Canada LLP in accordance with generally accepted accounting principles and presented to the membership at the annual meeting;
- The Board is working towards establishing an operation reserve equal to 1 year's program expense. This is to enable the Board to make firm project funding agreements with overseas partners in advance of funds being raised;
- Donated securities are sold upon receipt to ensure that assets are not speculative;
- Lifewater donates assets (drill rigs, trucks etc) to its overseas agents and does not retain significant capital assets on its books;
- Memorandums of Understanding must be in place with overseas partners for them to act as our agents before project work can begin;
- Equipment is provided on a matched funding basis to ensure local ownership and responsibility that does not occur if it is "free";
- Project sponsorship funds are only released once prescribed documentation has been obtained from overseas teams.
- The work of overseas teams is audited by volunteers who travel overseas and visit projects.
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