Page 50 - Aidlink Annual Report 2020
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   Directors’ Report
For the Financial Year Ended 31 December 2020 Continued
 INTERNAL CONTROLS CONTINUED
• Aidlink has strict policies and procedures in place for the receipt, recording and control of donations received from private individuals and the corporate sector;
• Procedures and control systems are formally documented in a series of partnership and project agreements that are reviewed bi-annually on a project by project basis;
• There is a formal organisational structure in place with clearly defined lines of responsibility, division of duties and delegation of authority;
• A detailed budget is prepared annually which is in line
with the Strategic Plan and approved by the Board. Actual results and outcomes are compared regularly against budget and prior year to ensure alignment with budget, tight administration control, and value for money;
• The Audit Committee reports independently to the Board on all aspects of controls and risks; and
• The Board maintains a
reserve policy that exceeds
the minimum recommended for charities (three months reserves) to mitigate the increasing risks of the uncertain economy and to ensure sustainability of our services.
AUDIT FUNCTIONS
Aidlink uses the Xero accounting software package which is reviewed monthly. The management accounts were reviewed by the board nine times in 2020 (2019: nine times). Aidlink is audited by Woods and Partners Limited and financial statements and annual reports
are published online. Financial statements are prepared in line with SORP standards and the Companies Act 2014; the Directors’ Report identifies the principal risks facing the organisation and mitigation strategies; a disclosure statement on senior management salaries is included. Aidlink remains committed to further strengthening transparency and accountability in order to maintain trust with the public, donors, and partners.
TRANSPARENCY AND ACCOUNTABILITY
Aidlink is satisfied that no incidence of fraud or gross financial mismanagement has occurred in respect to Aidlink resources among partners or within the activities organised by the Dublin head office. Partners are externally audited by registered in-country auditors; audit reports and management letters are examined by Aidlink senior management and the treasurer in line with our financial policy. It is the current opinion of our partners’ independent auditors that their respective financial statements give a true and fair view of the state of affairs of each partner. Aidlink also reviews partners’ financial policies and procedures and holds independent discussions with partners’ financial managers as part of routine monitoring and evaluation processes. Review of partners other donors’ reports and audits provide further security regarding financial management procedures.
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