Financial Management Procedures

Bangladesh Nature Foundation (BNF)

Head Office: Sayman Road, Cox’s Bazar-4700, Bangladesh

Established: 2010

Registration Deed No.: 17789, Chittagong Government Registrar, Court Building, Lal Dighi, Chittagong

Effective Date: 01 January 2010

Last Updated: 16 September 2026

1. Introduction

Bangladesh Nature Foundation (BNF) recognizes sound financial management as essential to responsible governance, effective program implementation, donor accountability, and the sustainable use of organizational resources. These Financial Management Procedures establish the basic systems and controls BNF uses to plan, receive, authorize, spend, record, monitor, report, and safeguard financial resources.

The procedures apply to BNF’s organizational funds, project funds, grants, donations, contributions, income, assets, and other financial resources. They are intended to promote transparency, accountability, proper authorization, accurate recordkeeping, segregation of duties, and responsible financial decision-making. Detailed internal financial forms, approval thresholds, banking instructions, staff remuneration records, and other confidential financial information may be maintained separately as internal operational documents.

2. Objectives

The objectives of BNF’s financial management procedures are to:

• safeguard organizational and project funds;
• ensure funds are used for approved purposes;
• maintain accurate and complete financial records;
• support transparent budgeting and expenditure control;
• ensure appropriate authorization of financial transactions;
• reduce the risk of fraud, corruption, error, and misuse of resources;
• maintain appropriate separation of financial responsibilities;
• meet donor and project financial requirements;
• support accurate and timely financial reporting;
• facilitate internal and external audits;
• protect organizational assets;
• promote financial sustainability; and
• strengthen accountability to communities, donors, partners, regulators, and other stakeholders.

3. Scope

These procedures apply to all BNF financial activities, including:

• annual organizational budgets;
• project and program budgets;
• grants and donor funding;
• donations and contributions;
• organizational income;
• bank accounts;
• cash transactions;
• procurement payments;
• salaries and personnel payments;
• travel and field expenses;
• advances and settlements;
• project expenditures;
• assets and inventory;
• consultants and contractors;
• partner payments;
• financial reporting;
• audits;
• financial records; and
• financial close-out.

All personnel involved in financial management are expected to follow these procedures and any applicable donor, contractual, project, or regulatory requirements.

4. Financial Management Principles

BNF’s financial management is guided by the following principles:

4.1 Accountability

Every financial transaction should be properly authorized, documented, recorded, and subject to appropriate review.

4.2 Transparency

Financial decisions should be supported by clear records and appropriate reporting.

4.3 Segregation of Duties

Where practical, authorization, custody, recording, and review responsibilities should be separated to reduce the risk of error or misuse.

4.4 Value for Money

BNF seeks to obtain appropriate quality and service while using resources efficiently and responsibly.

4.5 Purpose-Restricted Spending

Funds received for a specific purpose should be used consistently with the approved purpose, budget, agreement, and applicable requirements.

4.6 Documentation

Financial transactions should be supported by appropriate source documents.

4.7 Integrity

Financial records and reports must not knowingly contain false, misleading, fabricated, or materially incomplete information.

4.8 Compliance

BNF seeks to comply with applicable organizational, contractual, donor, regulatory, and project-specific financial requirements.

5. Governance and Financial Responsibilities

5.1 General Committee

The General Committee provides overall organizational oversight in accordance with BNF’s governance arrangements. Its responsibilities may include:

• reviewing organizational financial performance;
• overseeing major financial matters;
• reviewing financial and project progress;
• supporting accountability and transparency; and
• exercising responsibilities assigned under BNF’s governing documents.

5.2 Executive Committee

The Executive Committee provides governance oversight of BNF’s programs and financial management. Its responsibilities include, as applicable:

• approving major organizational plans and budgets;
• reviewing financial performance;
• overseeing significant financial risks;
• reviewing audit findings;
• approving major projects and financial commitments according to BNF’s governance arrangements; and
• ensuring appropriate financial accountability.

5.3 Executive Director

The Executive Director provides executive oversight of financial and administrative operations. The Executive Director is responsible for ensuring that:

• approved budgets are implemented appropriately;
• financial controls are maintained;
• expenditure is properly authorized;
• financial reports are reviewed;
• project funds are used for approved purposes; and
• financial irregularities are appropriately escalated.

5.4 Finance Manager

The Finance Manager is responsible for day-to-day financial management, including:

• maintaining accounting records;
• preparing budgets and financial reports;
• maintaining cash and bank records;
• monitoring expenditures;
• processing authorized payments;
• preparing reconciliations;
• maintaining supporting documents;
• supporting audits; and
• advising management on financial matters.

5.5 Project and Program Managers

Project and program managers are responsible for:

• implementing activities within approved budgets;
• verifying that expenditures relate to approved activities;
• reviewing supporting documentation;
• monitoring project financial performance;
• reporting financial risks; and
• coordinating with finance personnel.

6. Budget Preparation and Approval

BNF prepares organizational and project budgets based on approved programs, activities, available resources, contractual commitments, and realistic cost estimates. Budget preparation should consider:

• planned activities;
• staffing requirements;
• procurement;
• travel and field operations;
• training and workshops;
• equipment and assets;
• administrative costs;
• monitoring and evaluation;
• contingency requirements where permitted; and
• donor or project-specific budget conditions.

Budgets should be reviewed by appropriate management personnel before approval. No expenditure should knowingly be committed outside an approved budget without appropriate authorization.

7. Budget Monitoring

Financial performance should be monitored against approved budgets. Budget monitoring may include:

• comparing actual expenditure with budget;
• identifying significant variances;
• reviewing remaining balances;
• assessing projected expenditure;
• identifying underspending or overspending;
• reviewing restricted funds; and
• taking corrective action where necessary.

Significant or recurring variances should be brought to the attention of appropriate management.

Where donor approval is required for budget changes, BNF will seek such approval before implementing the relevant change.

8. Bank Account Management

BNF’s organizational and project funds should be maintained through appropriately authorized bank accounts. Bank accounts should be:

• opened in the organization’s authorized name where appropriate;
• operated by designated authorized persons;
• subject to appropriate approval controls;
• regularly reconciled; and
• protected through appropriate banking and access controls.

Personal bank accounts should not ordinarily be used for holding BNF funds unless an exceptional circumstance has been formally authorized and appropriately documented.

9. Bank Reconciliation

Bank accounts should be reconciled regularly with the organization’s accounting records. Bank reconciliation should identify:

• outstanding payments;
• deposits in transit;
• bank charges;
• interest or other bank entries;
• recording errors;
• unauthorized transactions; and
• other discrepancies.

Unexplained differences should be investigated and resolved promptly.

10. Cash Management

BNF seeks to minimize unnecessary cash handling and maintain appropriate controls over cash transactions. Where cash is necessary for field activities or operational requirements:

• authorized personnel should maintain custody;
• transactions should be documented;
• receipts or equivalent supporting evidence should be obtained;
• cash balances should be periodically verified;
• cash advances should be settled promptly; and
• significant discrepancies should be reported.

Cash should not be used to circumvent procurement, approval, or financial-control requirements.

11. Receipts and Income

BNF may receive funds through grants, donations, contributions, project financing, organizational income, or other legitimate sources consistent with its objectives. Funds received should be:

• appropriately documented;
• recorded accurately;
• deposited into authorized accounts;
• classified according to their purpose; and
• monitored against any applicable restrictions.

Restricted funds should be separately identifiable within the accounting and reporting system where appropriate.

12. Donor and Grant Funds

Donor and grant funds must be managed according to:

• approved proposals;
• grant agreements;
• approved budgets;
• donor conditions;
• reporting requirements; and
• applicable organizational procedures.

BNF will maintain appropriate records to demonstrate how grant funds were received and used. Where a donor imposes specific financial requirements that are more stringent than BNF’s general procedures, the applicable contractual requirements should be followed, provided they are consistent with applicable requirements and BNF’s governance arrangements.

13. Expenditure Authorization

Expenditure should be approved by an appropriately authorized person before a financial commitment is made. Approval should consider:

• whether the expenditure is necessary;
• whether it is included in the approved budget;
• whether appropriate procurement procedures have been followed;
• whether funds are available;
• whether the expenditure is reasonable; and
• whether supporting documentation is sufficient.

BNF should maintain an internal authorization matrix specifying relevant approval responsibilities and financial limits.

14. Procurement and Financial Controls

Financial management and procurement procedures should operate together. Procurement should seek to ensure:

• fair and appropriate supplier selection;
• reasonable pricing;
• adequate documentation;
• avoidance of conflicts of interest;
• appropriate authorization;
• verification of goods or services received; and
• timely and accurate payment.

Purchase splitting or other practices designed to avoid applicable approval or procurement requirements are prohibited. Procurement-related financial controls should be consistent with BNF’s Anti-Fraud and Anti-Corruption Policy.

15. Payment Procedures

Before payment is made, appropriate personnel should verify:

1. the expenditure was authorized;
2. the goods or services were received;
3. the amount is correct;
4. supporting documentation is available;
5. the expenditure relates to an approved activity or legitimate organizational purpose; and
6. applicable procurement and contractual requirements have been met.

Payments should be made through appropriate organizational payment channels whenever practical

16. Salaries and Personnel Payments

Salary and personnel payments should be based on approved employment or contractual arrangements. BNF should maintain appropriate records relating to:

• approved remuneration;
• attendance or service records where applicable;
• authorized deductions;
• payment records; and
• relevant employment or consultancy documentation.

Where practicable, salaries should be paid directly to authorized staff bank accounts.

Payroll information should be treated as confidential and accessed only by authorized personnel.

17. Travel and Field Expenses

Travel and field expenses must be related to legitimate BNF activities and should be reasonable and appropriately authorized. Supporting documentation may include:

• travel authorization;
• itinerary;
• transport receipts;
• accommodation receipts;
• activity records;
• approved per diem or allowance calculations; and
• expense settlement forms.

Travel advances should be settled within the period specified by BNF’s internal procedures.

18. Advances

Advances may be provided to authorized personnel for approved activities where necessary. The person receiving an advance is responsible for:

• using the funds only for the approved purpose;
• maintaining supporting documentation;
• returning unused funds; and
• submitting a timely settlement.

New advances should normally be restricted where an individual has an overdue or unresolved advance, unless an authorized exception is documented.

19. Consultants and Contractors

Payments to consultants and contractors should be supported by appropriate documentation, including:

• approved contract or agreement;
• scope of work;
• agreed fee;
• evidence of satisfactory service or deliverables;
• invoice or payment request; and
• appropriate approval.

Consultant and contractor payments must not be used to disguise improper payments, personal benefits, or unauthorized commissions.

20. Asset Management

BNF’s financial management system should include appropriate controls over organizational assets. Assets may include:

• vehicles;
• computers and electronic equipment;
• scientific and field equipment;
• office equipment;
• furniture;
• project equipment;
• conservation equipment; and
• other organizational property.

Appropriate records should identify significant assets, their location, responsible custodian, acquisition information, and disposal where applicable. Assets should be used primarily for authorized organizational purposes.

21. Inventory and Stock Control

Where BNF maintains physical inventory or project materials, appropriate records should be maintained. Inventory controls may include:

• stock registers;
• receipt and issue records;
• periodic physical verification;
• responsible custodians;
• documentation of losses or damage; and
• authorized disposal procedures.

Material discrepancies should be investigated.

22. Financial Records

BNF will maintain appropriate financial records to support accountability and reporting. Records may include:

• cashbooks;
• bank statements;
• bank reconciliations;
• ledgers;
• invoices;
• receipts;
• payment vouchers;
• purchase documents;
• contracts;
• payroll records;
• expense claims;
• advance records;
• asset registers;
• budgets;
• financial reports;
• donor records; and
• audit documentation.

Records should be sufficiently complete to allow transactions to be traced from source documentation through accounting records to financial reports.

23. Accounting Records and Accuracy

Financial transactions should be recorded accurately and in a timely manner. BNF does not permit deliberate:

• falsification;
• fabrication;
• concealment;
• unauthorized alteration;
• backdating;
• destruction of material records; or
• manipulation of financial information.

Corrections to accounting records should be traceable and appropriately authorized.

24. Financial Reporting

BNF prepares financial reports to support internal management, governance oversight, project monitoring, donor accountability, and applicable reporting requirements. Reports may include:

• budget versus actual expenditure;
• project financial statements;
• income and expenditure statements;
• cash-flow information;
• fund balances;
• donor financial reports; and
• annual financial statements.

Reports should be prepared from the organization’s accounting records and reviewed by appropriate personnel.

25. Project Financial Management

Each project should have an approved financial framework appropriate to its size and complexity. Project financial management should include:

• approved project budget;
• identification of funding sources;
• expenditure tracking;
• documentation of transactions;
• budget monitoring;
• financial reporting;
• asset management where applicable;
• donor compliance; and
• project financial close-out.

Project managers and finance personnel should coordinate regularly to identify financial risks and variances.

26. Restricted and Designated Funds

Where funds are restricted or designated for a particular purpose, BNF should maintain sufficient records to identify:

• source of funding;
• approved purpose;
• applicable budget;
• expenditure;
• remaining balance; and
• reporting obligations.

Restricted funds should not knowingly be diverted to unrelated purposes without appropriate authorization and, where required, donor approval.

27. Fraud, Corruption, and Financial Misconduct

BNF maintains controls intended to prevent and identify fraud, corruption, theft, financial manipulation, conflicts of interest, and misuse of organizational resources. Suspected financial misconduct should be reported through appropriate BNF reporting mechanisms. Relevant concerns may be addressed under BNF’s Anti-Fraud and Anti-Corruption Policy, Whistleblower Policy, Complaints & Feedback Policy, and Conflict of Interest Policy. No employee, manager, officer, committee member, consultant, contractor, or other associated person is exempt from financial accountability because of their position.

28. Segregation of Duties

BNF will seek to separate key financial responsibilities where organizational capacity permits. For significant transactions, responsibilities should, where practical, be divided among different persons for:

• requesting expenditure;
• approving expenditure;
• purchasing;
• receiving goods or services;
• processing payment;
• recording transactions; and
• reviewing or reconciling transactions.

Where staffing limitations prevent complete separation, compensating supervisory controls should be applied.

29. Conflict of Interest

Persons involved in financial decisions must disclose relevant conflicts of interest. A person should not participate in a financial or procurement decision where they have a personal, family, financial, or other interest that could improperly influence the decision. Financial conflicts of interest should be managed according to BNF’s Conflict of Interest Policy.

30. Financial Risk Management

BNF seeks to identify and manage financial risks associated with:

• fraud and corruption;
• cash handling;
• procurement;
• donor restrictions;
• exchange-rate movements;
• project underspending or overspending;
• unauthorized expenditure;
• asset loss;
• financial reporting errors;
• cybersecurity and electronic payments;
• partner financial management; and
• other material financial risks.

Risk controls should be proportionate to the nature and scale of the activity.

31. Internal Review and Oversight

BNF may conduct internal financial reviews to assess:

• compliance with approved budgets;
• adequacy of supporting documentation;
• cash and bank controls;
• procurement-related expenditure;
• project financial performance;
• asset records;
• outstanding advances; and
• identified financial risks.

Review findings should be communicated to appropriate management and corrective action should be taken where necessary.

32. Audit

BNF will maintain appropriate financial records to facilitate independent or otherwise authorized audits. Audits may review:

• financial statements;
• accounting records;
• supporting documentation;
• project expenditure;
• internal controls;
• donor-funded activities;
• assets; and
• compliance with applicable requirements.

BNF will seek to address material audit findings and strengthen controls where weaknesses are identified.

33. Donor and Regulatory Reporting

Where required, BNF will provide financial information to relevant donors, funding organizations, government authorities, regulators, or other authorized stakeholders. Financial reports should be:

• accurate;
• supported by records;
• submitted within applicable deadlines; and
• consistent with approved budgets and agreements.

BNF will not knowingly submit materially false or misleading financial information.

34. Financial Information Security

Financial records and systems should be protected against:

• unauthorized access;
• loss;
• alteration;
• theft;
• disclosure;
• malware and other digital threats; and
• unauthorized transactions.

Access to financial systems should be provided according to job responsibilities and should be reviewed when personnel change roles or leave the organization.

35. Record Retention

Financial records should be retained for the period required by applicable organizational, donor, contractual, regulatory, audit, or other requirements. Records subject to an audit, investigation, dispute, or other formal review should not be destroyed while the matter remains unresolved. Confidential financial information should be stored and disposed of securely.

36. Financial Close-Out

At the completion of a project or funding period, BNF should undertake an appropriate financial close-out. This may include:

• reconciling project accounts;
• reviewing outstanding advances;
• settling liabilities;
• verifying assets;
• reconciling restricted funds;
• preparing final financial reports;
• resolving outstanding commitments;
• returning or otherwise managing unspent funds where required; and
• organizing records for audit and future reference.

37. Partner and Sub-Grantee Financial Management

Where BNF provides funds to implementing partners or other organizations, appropriate financial controls should be established according to the nature and risk of the relationship. This may include:

• written agreements;
• approved budgets;
• payment schedules;
• financial reporting;
• supporting documentation;
• monitoring visits;
• verification of expenditure;
• audits or financial reviews; and
• corrective action where necessary.

Partners are expected to use BNF-provided resources only for approved purposes.

38. Emergency Expenditure

Emergency situations may require expedited financial decisions. Where emergency expenditure is necessary, BNF may apply simplified procedures appropriate to the circumstances while maintaining reasonable documentation and accountability. Emergency procedures should not be used routinely to bypass normal financial controls. Transactions made under emergency arrangements should be documented and reviewed retrospectively as soon as reasonably practicable.

39. Community-Level Financial Management

For projects involving community-managed funds, community groups, savings mechanisms, livelihood activities, or other local financial arrangements, BNF should establish appropriate controls according to project requirements. These may include:

• transparent eligibility criteria;
• community-level records;
• appropriate authorization;
• documentation of payments;
• community participation in oversight;
• periodic verification; and
• reporting of significant discrepancies.

Community financial mechanisms should be designed to reduce opportunities for misuse and promote accountability.

40. Financial Transparency

BNF is committed to appropriate financial transparency while protecting confidential personal, commercial, donor, employee, beneficiary, and security-sensitive information. Where appropriate, BNF may disclose:

• organizational financial information;
• project funding information;
• donor information where disclosure is permitted;
• annual reports;
• project reports; and
• audit or accountability information.

Public disclosure will be balanced with privacy, contractual, security, and legitimate confidentiality requirements.

41. Staff Training and Awareness

BNF may provide financial management orientation or training to personnel whose responsibilities involve:

• budgeting;
• procurement;
• expenditure authorization;
• cash handling;
• financial reporting;
• project management;
• asset management; or
• donor compliance.

Personnel are expected to understand the financial responsibilities associated with their roles.

42. Reporting Financial Concerns

Any person who reasonably suspects financial misconduct should report the concern through an appropriate BNF mechanism. Reports may be made through:

Whistleblower/Integrity Reporting: info@bdnature.org

Complaints & Feedback: info@bdnature.org

Executive Director: abuhena@bdnature.org

BNF’s Whistleblower Policy provides protections for good-faith reporting and prohibits retaliation against persons who raise legitimate concerns.

43. Corrective Action

Where financial weaknesses, errors, or irregularities are identified, BNF may take appropriate corrective action, including:

• correcting accounting records;
• recovering funds;
• strengthening approval procedures;
• improving documentation;
• conducting additional reviews;
• providing staff training;
• restricting financial authority;
• revising controls;
• taking disciplinary or contractual action; or
• referring serious matters to appropriate authorities where necessary.

Corrective measures should be proportionate to the nature and seriousness of the issue.

44. Roles of Personnel in Financial Stewardship

Every person entrusted with BNF resources has a responsibility to:

• use resources only for legitimate purposes;
• protect organizational assets;
• maintain accurate records;
• follow approved procedures;
• report suspected irregularities;
• avoid conflicts of interest;
• preserve financial documentation; and
• cooperate with authorized financial reviews and audits.

Financial stewardship is a shared organizational responsibility, not solely the responsibility of the Finance Manager.

45. Review of Financial Management Procedures

These procedures will be periodically reviewed to ensure that they remain appropriate for BNF’s:

• organizational structure;
• project portfolio;
• funding arrangements;
• financial risks;
• donor requirements;
• operational capacity; and
• governance framework.

Updates may be made following audits, financial reviews, organizational changes, lessons learned, or changes in applicable requirements.

46. Related BNF Policies

These procedures should be read together with BNF’s other governance and accountability documents, including:

• Anti-Fraud and Anti-Corruption Policy;
• Whistleblower Policy;
• Conflict of Interest Policy;
• Complaints & Feedback Policy;
• Environmental & Social Safeguards Policy;
• Gender Equality and Non-Discrimination Policy;
• Safeguarding Policy;
• Procurement Procedures;
• Code of Conduct;
• Privacy Policy;
• Research Ethics and Research Integrity policies; and
• other applicable project-specific procedures.

47. Commitment to Responsible Financial Management

Bangladesh Nature Foundation is committed to managing its financial resources responsibly, transparently, and in accordance with approved organizational and project purposes. BNF recognizes that effective financial management is essential to maintaining trust among communities, beneficiaries, donors, partners, government authorities, employees, and other stakeholders. Through appropriate budgeting, authorization, documentation, financial monitoring, internal controls, reporting, and audit processes, BNF seeks to ensure that resources entrusted to the organization are used efficiently and responsibly in support of its environmental, biodiversity, climate, livelihood, research, education, and community development objectives.

48. Contact

Bangladesh Nature Foundation (BNF)

Sayman Road, Cox’s Bazar-4700, Bangladesh

General Contact: info@bdnature.org

Finance Department: safia@bdnature.org

Whistleblower/Integrity Reporting: info@bdnature.org

Complaints & Feedback: info@bdnature.org

Website: https://bdnature.org/

Policy Owner: Executive Director / Finance Function

Approval Authority: Executive Committee / General Committee, as applicable under BNF’s governance arrangements.