Reviewing and Updating Financial Policies

What’s the best process to use to review and update financial policies?

Reviewing Financial policies and procedures can be overwhelming, but there are processes that will help ease the burden of these tasks and updates. It is a HRSA requirement that the board review and approve financial policies at least every 3 years, however we recommend reviewing them annually as staff and procedures change.  A suggestion is to include this process on the board calendar so that it becomes a standard item for the board to complete. 

First, assign staff who are responsible for the daily processes to review the policies and indicate proposed changes, utilizing tools that will indicate changes made. This staff person understands exactly what happens during the process and will be able to accurately define it. It is highly recommended that you use a policy management system which captures key dates, changes, version control and approval history.  However, if this is not feasible, you will have to monitor this manually by creating a document (spreadsheet) that indicates policy number, name, and a description of the changes that were made. For example, “minor grammatical changes, omitted OMB Circular 10, no longer applies.”  Finally, submit a copy of the spreadsheet and the policies, with the changes indicated, to the board of directors for review and approval. Once approved, it is important to circulate the approved policies to the appropriate staff and have them indicate their understanding of the policy and the process for implementing the new policy/procedure.

With minor preparation, you should be able to streamline the process of policy review which will minimize the time it takes to review and approve policies for staff and the board of directors.

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