1. Overview of practical
guidelines on Sound Financial
Management for NGO sector
Prepared and presented by
Mr. Ok Libounna
Director of Financial Affairs, CWS
Vision: A strong and capable civil society, cooperating and responsive to Cambodia’s development challenges

2. Presentation outlines
I. Overview of Guideline
1. Back Ground
2. Purpose of guideline
II. Introduction to Financial Management
III. Developing Policies and Procedure,
Budget and Financial Accounting Systems
IV. Internal Control, Financial Reporting and
Audits
V. Further Financial Management Activity
VI. Way forward

3. I. Overview of Guideline
1. Background
 In April 2009, CCC established the first Finance
Learning Forum in the aims
1. to provide opportunities to its members to
discuss, reflect and learn on sound financial
management,
2. to build a strong network amongst finance
practitioners and professionals, and
3. to develop a practical guidelines on sound
financial management for NGO community.

4. I. Overview of Guideline
1. Background (con’t)
 This guideline is developed by a finance working
group in consultations with finance practitioners
and professionals of CCC members with
technical support from a group of freelance
consultants.
 It was under leadership and facilitation of the
Cooperation Committee for Cambodia (CCC)
 It was financially supported by Diakonia and
Oxfam (America) through a learning forum
project

5. I. Overview of Guideline (Con’t)
2. Purpose of guideline
 To improve the framework of accountability and
transparency in the field of Financial
Management in the NGO sector in Cambodia,
drawing on the experience of CCC’s member
specialists in this field.

6. I. Overview of Guideline (Con’t)
2. Purpose of guideline (con’t)
 It aims to provide guidance and share best
practices, hoping to:
 Enhance compliance with laws and standards
related to Financial Management.
 Promote professionalism and best practices
related to Financial Management.
 Provide useful tools for ongoing learning
which are adaptable for individuals working in
Financial Management.

7. I. Overview of Guideline (Con’t)
3. What are in the guideline?
 5 Chapters: 1) Overview of guidelines, 2)
introduction to financial management, 3)
developing financial policies and procedures, 4)
internal control and external auditing, and 5)
further financial management activities
 Glossary
 Annexes: including sample tools and forms

8. II. Introduction to Financial
Management
Who are the key player in financial management ?
 Board of Director  Management Team  Executive
Director  Program Manager Finance Manager
Accountant  Cashier
The important of Financial Management for NGO.
Serves as a guide for the Board of Trustees (BOT)
Enables Management to make informed decisions.
Gives organizations the necessary advantage over
increasingly scarce resources.
Establishes and strengthens CREDIBILITY of NGOs…

9. II. Introduction to Financial
Management
Compliance with Laws and standards.
There are 4 principles to adopt to ensure that
compliance is achieved
All individuals within the organization comply with
applicable laws and considers adherence to nonbinding rules, codes and standards
 Follow the applicable standards include IFRS,
GAAP and others
 Compliance risk should form an integral part of
the organization’s risk management process
The board and each individual director should
delegate to management the
implementation of an effective compliance
framework and clarify its processes.

10. III. Developing Policies and Procedure,
Budget and Financial Accounting
Systems
Budget Management
Process of
Developing Policies
and procedure
Best Practice
of Financial
Management
Financial Accounting
system
Strategy for
financial
sustainability

11. IV. Internal Control, Financial
Reporting and Audits
External and
Internal Audit
Financial
Reporting
Internal
Control.

12. V. Further Financial
Management Activity
Financial
Coding and
Chart of
Accounts
Travel
Procurement
Bookkeeping
Fixed Assets
Procurement
Filing system
and Audit
Trails
Cash and
Bank
Management
Payrolls
Petty Cash
Bank
Reconciliation
Advance

13. VI. Way Forward
1. Continue to improve and develop practical
guidelines, tools and forms for promoting sound
financial management for NGOs in Cambodia.
2. The guideline will be used a tool to ongoing
discuss and debate at the finance learning forum
3. The guideline is made available to NGO
community through different forms of
community, it will be posted on CCC website.
4. CCC encourage members to use this guideline
and to documents what works well and what not.