Developing and Documenting Policies

12 Sep 2011

Policies are a statement of the ethos and values of an organisation. They define a boundary within which things are acceptable. They also clarify roles, relationships and responsibilities and they can serve as a basis for decision-making. Policies tell people what to do in any given situation; procedures tell them how to do it. Clearly documented policies and procedures can mitigate against risk.

 

 

Who is responsible?

The responsibility for setting up organisation policies lies with the board. Once the policy has been ratified at board level, all members must be educated about its relevance and importance. A written policy is of little use unless the people it affects understand its place in the organisation. It should be kept clear and concise in order to be manageable and accessible.

 

 

What should be in the policy?

There is certain information that should be contained in any policy. It must be clear to all exactly to whom the policy relates, when the policy is to take effect, what penalties exist for breaching it and how an appeal can be brought about.


Below is a guide as to what should be included in any policy.

  1. An introductory statement declaring the organisation's commitment to the policy
  2. A statement explaining which people and what situations are covered by the policy
  3. An explanation of any relevant laws pertaining to the policy
  4. Examples of what will or will not be tolerated under the policy (if appropriate)
  5. An outline of responsibilities of all participants in the organisation in relation to the policy
  6. An explanation of options available and processes to be followed when a breach of policy occurs
  7. A statement of the consequences or penalties that will be imposed when the policy is breached
  8. Information on where individuals can get help, advice or make a complaint
  9. Information on an appeals process (if appropriate)
  10. Review Date
  11. Ownership Responsibility
  12. Any protection afforded under the policy

 

 

Step by step guide to writing your own policy

  1. Assurances of confidentiality in the matter (if appropriate)
  2. Agree a common format for all policies
  3. Appoint someone with the responsibility for coordinating the drafting of the policy
  4. Collect all the data and information you need
  5. Consult with those affected by the policy to get their input
  6. Prepare a draft document - sometimes it is easier to find an existing policy and modify it for your circumstances
  7. Obtain comment on the draft and amend accordingly
  8. The policy is adopted formally by the organisation
  9. The policy is published, promoted and distributed to all affected parties
  10. Compliance and monitoring of the policy
  11. Review and update policy on a periodic basis as informed by the nature of the policy.

 

 

Organisational & financial policies and procedures

The following are typical organisation and financial policies that every organisation should adopt:

  • Financial
  • Child Protection
  • IT & Internet
  • Health & Safety
  • Data Protection
  • Document Retention & Archiving
  • Disciplinary Procedure
  • Grievance Procedure
  • Confidentiality Procedure
  • Conflicts of Interest policy

 

 

Expenditure Control

Board Level Controls

Budgeting is the process of taking the organisational objectives and converting these objectives into short-term goals with a monetary value. Activities are converted into financial targets as most can be expressed in monetary terms. Overall budgeting can be seen as a central feature of the strategic planning process that links planning to control and ensures that objectives are operationalised. The three key aspects of this process are:

  • Planning
  • Budgeting
  • Control

 

Planning - The design of a desired future and of effective ways of bringing it about. As an organisation the NGB needs to plan for the resources under its control. The budget is a financial expression of that plan. It considers the desired position and how it can be achieved with the resources available. The long-term plan of the NGB is analysed and those elements that the NGB wishes to achieve in the next 12 months are extracted and become the budget. It is important to note that the function of the budget is to integrate the long-term plan into the day-to-day operations of the NGB. This will ultimately lead to the targets of the long-term plan being achieved.

 

Budgeting - The process of planning for the future which involves the quantification in monetary terms of proposed activity levels.

 

Control - The process of looking back over past performance to make sure that what was meant to happen did happen, and where it did not, make the necessary changes to make sure that it does in the future.

 

To control the activity of a NGB a comparison must be made between the desired activity expressed in financial terms (the budget) on the one hand and the actual outcome on the other. This is usually called variance analysis. It is important that the system that provides control information, whether manual or computer based, provides quick and reliable information if full benefit is to be gained from such a system.

Planning cannot foretell exactly how the market will evolve, therefore budgets need to be frequently revisited to enable the organisation to adjust to the current business climate and to also take into consideration funding allocations.

 

 

Operational controls

While Planning, Budgeting and control are high level controls, every organisation must also consider and implement everyday operational and finance controls. Therefore, within the financial policy the following areas could be covered:

  • Procurement
  • Authorisations
  • Petty cash
  • Access to safe
  • Purchase orders
  • Cash handling
  • Lodgements
  • Reconciliations
  • Debt management

 

The following are additional operational control areas:

  • Health & Safety checks
  • Scheme of delegation
  • Mail opening and verification