Financial Management Policy

1. Purpose
The purpose of this policy is to ensure that the Sultan Institute of Management Training maintains sound financial practices to meet its legal and financial responsibilities and sustain its operations.
2. Financial Goals
• Ensure financial sustainability and growth • Maintain transparency and accountability in financial reporting • Optimize resource allocation for educational programs
3. Roles and Responsibilities
• Board of Directors: Oversees financial policy, approves budgets, and reviews financial performance. • Finance Committee: Develops financial strategies, monitors financial activities, and ensures compliance with policies. • Finance Manager: Manages day-to-day financial operations, prepares financial reports, and liaises with auditors. • Department Heads: Prepare departmental budgets and monitor expenditures.
4. Budgeting and Planning
• Annual budgets are to be prepared by the Finance Manager in consultation with the Finance Committee and approved by the Board of Directors. • Departments must submit budget requests aligned with the institute’s strategic goals. • Mid-year budget reviews to adjust for any variances.
5. Revenue and Cash Management
• All revenue must be recorded accurately and promptly. • Establish procedures for the collection, deposit, and reconciliation of all revenues. • Maintain a reserve fund to cover unforeseen expenses and ensure cash flow stability.
6. Expense Procedures
• All expenses must be approved according to the authorized approval limits. • Implement strict controls on procurement to ensure value for money. • Maintain records of all transactions and supporting documents for audits.
7. Financial Reporting
• Monthly financial reports are to be prepared and reviewed by the Finance Committee. • Annual financial statements must be audited by an independent auditor and presented to the Board of Directors. • Financial reports should be transparent and available to stakeholders.
8. Compliance and Audit
• Regular internal audits to ensure compliance with financial policies and procedures. • Ensure adherence to all relevant legal and regulatory requirements.