Finance

Making sure that every cent donated goes towards it's intended purpose, children in need, is an obvious objective for any child welfare organization. However, good intentions without action are not enough. It is the daily follow-up, monitoring and control of income and expenses which makes the difference.

Under government scrutiny

With only a few exceptions, FYO is registered as a local NGO in Uganda . It follows government regulations for the handling and accounting of income and expenses. Strict adherence with these regulations is a must to preserve the status of a non-profit organization and to maintain the official seal of approval.

Internal and external control mechanisms

Observing local government regulations and being open to scrutiny is not enough. Therefore FYO applies various internal and external control mechanisms. The aim is to secure sufficient funds to provide adequate care and follow-up of the children both in the short and long term, and to keep administrative costs as low as possible.

The annual budget

One of the most important tools for cost control is the annual budget. The budgets are revised with respect to plans, the number and type of beneficiaries, proposed investments and changes in costs, such as personnel. Once approved the budgets form an important foundation for allocation of available funds between locations and projects, and for cash flow planning.

Financial statements and audits

All income and expenses are accounted for using a standard chart of accounts and bookkeeping software. Financial statements are checked constantly and compared with approved budgets. In addition FYO staff conduct internal audits to ensure that recognized practices for accounting and financial management are adhered to. Such audits are carried out on all levels and include each facility.

At least once a year, all financial statements, accounting and financial practices are checked by an external audit. This is carried out by an independent reputable firm of auditors, in accordance with the statutes of FYO.

Constant improvement through learning

FYO is conscious that good accounting practices and financial management is also a matter of developing skills and fostering strong ethical values. Regular internal audits, follow-up of staff and training are therefore not only used as measures to ensure correct use of funds, but also to ensure constant improvement and better cost-awareness of "making every cent count".