Financial Management Policy

Date of Issue: 21 May 2025

Organisation: Australian Institute of Pharmacognosy

1. Purpose

The purpose of this policy is to outline the financial management principles and practices of the Australian Institute of Pharmacognosy in alignment with its Constitution and legal obligations as a not-for-profit entity. This policy ensures accountability, transparency, and proper stewardship of all financial resources.

2. Scope

This policy applies to all Responsible People, employees, volunteers, and contractors engaged in financial decision-making or handling Institute funds.

3. Governance and Oversight

The Board of the Institute is ultimately responsible for financial oversight. All financial decisions must be made in accordance with the Constitution, including the operation of the Public Fund (where applicable). The Board shall review financial reports regularly and ensure compliance with all regulatory and audit obligations.

4. Budgeting and Financial Planning

An annual budget shall be prepared and approved by the Board at the beginning of each financial year. Budgets will be based on realistic income projections and aligned with the Institute’s strategic objectives. Any significant deviations must be reviewed and approved by the Board.

5. Bank Accounts and Fund Handling

The Institute’s bank accounts must be held in the name of the Australian Institute of Pharmacognosy. All income, including donations and grants, must be deposited into approved accounts. All payments must be authorised by at least two signatories as per the Constitution. Cash handling should be minimised; if necessary, proper recording and reconciliation practices must be followed.

6. Financial Reporting and Recordkeeping

Accurate financial records must be maintained at all times. Financial reports shall be presented to the Board at each meeting and a formal financial report shall be included in the Annual General Meeting. Records must be retained for a minimum of seven years in compliance with regulatory requirements.

7. Use of Funds

All Institute funds must be used solely to advance the organisation’s charitable purposes, in accordance with its Constitution. No portion of funds shall be distributed to members, except as reimbursement for expenses or payment for services rendered in accordance with approved procedures.

8. Conflicts of Interest

Financial decisions involving any Responsible Person must follow the Institute’s Conflict of Interest Policy to ensure transparency and integrity in financial dealings.

9. Audit and Financial Review

The Institute shall conduct an annual financial review or audit (as required by law or by resolution of the Board). Findings shall be presented to the Board and members, and made available upon request.

10. Review and Amendments

This policy shall be reviewed at least every two years or as required. Any amendments must be approved by the Board and noted in the meeting minutes.

11. Approval

Approved by the Board of the Australian Institute of Pharmacognosy.