TAD Financial Governance Policy

As a community-driven non-profit, Telangana Association of Denmark (TAD) is committed to maintaining the highest standards of financial integrity, transparency, and accountability. This Financial Governance Policy provides clear guardrails for how TAD funds are to be managed, ensuring that all spending aligns with our cultural values and organizational mission.

Objectives

• Ensure transparency and accountability in financial decisions.
• Prevent misuse or misallocation of TAD funds.
• Build trust among board members, volunteers, and the wider community.
• Establish clear processes for approvals, documentation, and reporting.

Financial Guardrails & Accountability Principles

1. No Alcohol or Liquor Purchases – TAD funds must never be used to purchase liquor, or any items not aligned with TAD’s cultural and community values.
2. Approval for Large Transfers – Any transfer above 5,000 DKK must be approved by both the President and Treasurer, with at least three additional board members notified in writing (email/WhatsApp).
3. Pre-Event Budgeting – A projected budget must be prepared and presented to the board before every event, outlining estimated expenses and expected income/sponsorships.
4. Expense Documentation – All expenses must be supported by receipts, invoices, or written acknowledgments. No undocumented reimbursements will be processed.
5. Spending Caps Without Board Approval – No single individual can authorize unbudgeted expenses above 1,000 DKK without prior approval from at least 3 board members.
6. Separation of Personal & TAD Funds – Personal purchases must never be mixed with TAD money. If an overlap occurs, it must be documented clearly and reconciled immediately.
7. Cash Handling Protocol – Cash collected during events (e.g., donations, registrations) must be counted by at least two board members together and deposited into the TAD account within 48 hours.
8. Vendor Selection Transparency – When hiring vendors (e.g., catering, stage, decorations), at least two quotes should be compared where possible, and the chosen vendor must be documented for transparency. TAD board members cannot submit quotes or collaborate with vendors; if the TAD board finds otherwise, the vendor can be cancelled.
9. Financial Reporting After Events – Within 7 days of each event, the Treasurer must share a financial summary (income, expenses, and balance) with the board.
10. Annual Financial Review – At the end of each year, the accounts should be reviewed internally by at least two non-finance board members, and a high-level summary should be shared with TAD members.

This policy reflects TAD’s commitment to responsible financial management. By following these guardrails, the board ensures that every krone spent serves the best interest of the Telangana community in Denmark.