FINANCIAL CONTROLS, SPENDING LIMITS & INTERNAL APPROVAL SYSTEM

(Applicable to Khidmat-e-Khalq Foundation)

2.1 Objective

The objective of this policy is to ensure responsible use of the Foundation’s funds through a transparent, practical, and well-documented financial control system, while supporting timely humanitarian work and accountability.

2.2 Centralized Financial Management

All funds, donations, grants, and contributions of the Foundation shall be:

• Received through the official bank account(s) of the Foundation
• Utilized only for purposes aligned with the objects stated in the Registration Deed
• Managed and supervised under the overall responsibility of the Treasurer
• This system is intended to safeguard donor trust and ensure proper utilization of funds.

2.3 Designated Financial Responsibilities

Financial roles within the Foundation are defined as follows:

Treasurer – Khan Ajaz Ahmad Mohd Baqirdi

• Primary custodian of accounts and financial records
• Day-to-day financial supervision

President – Mohd Hammad Mohd Saee Khan

• Oversight and approval of significant financial decisions

Secretary – Khan Shamshuddin

• Record keeping, documentation, and compliance coordination
• Other members or volunteers may assist in program activities; however, handling or authorization of funds shall be done only through the above designated office bearers.

2.4 Spending & Approval Framework

To balance financial discipline with operational efficiency, expenditures shall follow the structure below:

A. Expenditure up to ₹5,000

• Approval by Treasurer
• Entry in expense register with supporting voucher

B. Expenditure from ₹5,001 to ₹25,000

• Joint approval of: Treasurer & Secretary
• Approval may be recorded via email, WhatsApp, or written note and preserved for records

C. Expenditure above ₹25,000

• Prior approval of the Managing Committee or General Body
• Resolution or recorded minutes required
• Payment subject to applicable bank signatory rules

2.5 Emergency & Humanitarian Expenditure

In urgent humanitarian or emergency situations where delay may affect beneficiaries:

Joint approval of Treasurer and Secretary may be taken

Such expenditure shall be:

• Properly recorded without delay
• Placed for ratification in the subsequent meeting
• Supported by vouchers and a brief purpose note

2.6 Mode of Payment

• Cash transactions shall be kept to a minimum
• Expenditure above ₹2,000 should preferably be made through:
• Bank transfer / UPI / Cheque
• Cash withdrawals, where unavoidable, shall be properly justified and documented

2.7 Use of Funds & Ethical Responsibility

Funds of the Foundation are meant solely for organizational and charitable purposes and shall not be used for personal benefit.

Any instance of misuse or diversion shall be reviewed seriously and addressed through appropriate disciplinary and legal measures, as applicable.

2.8 Accounting & Audit Readiness

The Treasurer shall ensure:

• Maintenance of books of accounts
• Up-to-date donation and expense registers
• Preservation of bills, vouchers, and approvals
• Periodic internal review and audit preparedness
• Any gaps identified shall be corrected promptly to maintain governance standards

2.8 Reimbursement of Official Expenses

• Where any Office Bearer, Member, or Authorized Volunteer incurs expenditure from personal funds for approved Foundation activities, such expenditure may be reimbursed after verification.
• Only reasonable expenses directly related to the objectives of the Foundation shall be eligible and shall be supported by bills or vouchers.
• Reimbursement shall be processed with approval of the Treasurer and the Secretary. In urgent situations, provisional approval may be given by the President.
• All reimbursements shall be made through the Foundation’s official bank account. Personal or non-official expenses shall not be reimbursed.

2.9 Accounting & Audit Readiness

• The Treasurer shall ensure:
• Maintenance of books of accounts
• Up-to-date donation and expense registers
• Preservation of bills, vouchers, and approvals
• Periodic internal review and audit preparedness

Any gaps identified shall be corrected promptly to maintain governance standards.

Internal Adoption Note

This financial control framework forms part of the internal governance system of Khidmat-e-Khalq Foundation and shall remain operative unless modified or amended through an appropriate resolution.