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TS-BGS-04 Trust & Stewardship Board Governance & Strategy CORE Compliance v2.9.7

Finance represented in decisions

This criterion evaluates whether financial expertise (internal finance lead, trustee-treasurer, or external advisor) is appropriately and independently represented in organizational decision-making processes. It assesses the extent to which financial considerations and professional financial advice inform strategic and operational decisions, ensuring financial sustainability, responsible resource management, and compliance with internal controls. **Definitions:** * **Major Decision:** Any decision exceeding Scheme of Delegation (SoD) thresholds, creating new ongoing costs, affecting reserves or liquidity, or entering commitments >12 months. * **Independent Representation:** The ability to provide professional challenge (aligned with *Qist* - Qur'an 4:135) without undue influence, with direct access to trustees and a protected escalation route. * **Key Forums:** Board, Audit & Risk (A&R) Committee, Senior Management Team (SMT), bid/pricing panels, and programme approval boards.

KPI / Measure
MetricFinance integration quality and coverage
TargetSee KPIs and targets above
FrequencyQuarterly
Methoda) Attendance rate; b) Sign-off compliance; c) Forecast accuracy; d) Influence index: (# of sampled major decisions meeting ‘material influence’ definition) / (total sampled major decisions).
UnitMixed (%, percentage points)
Maturity Levels
Level 1: Initial/Ad-hoc

Financial input is ad-hoc, informal, and sought inconsistently. Decisions are often made without formal financial review. No designated role responsible for financial expertise.

Level 2: Developing

A process for seeking financial advice on major decisions exists but is not consistently applied. Finance person consulted occasionally, but involvement is not mandatory or integrated into the formal workflow.

Level 3: Established

Finance sign-off mandatory for expenditures/contracts >£X (e.g., 1-2% turnover); SoD in place; finance attends ≥70% of key meetings. For small charities (<£250k), quarterly pack + treasurer sign-off + external review is sufficient.

Level 4: Advanced

Rolling multi-year forecasts inform strategy; scenario/sensitivity analysis included for all strategic initiatives; financial sustainability KPIs (reserves coverage, liquidity days) tracked; ≥85% attendance; forecast accuracy ±8%.

Level 5: Optimizing

Benchmark finance integration against peers; annual post‑implementation reviews including VFM; summary of financial considerations in Annual Report; ≥95% attendance; forecast accuracy ±5%; evidence in minutes that finance challenge materially influences outcomes in ≥80% of major cases.

Applicability

Organisation Types

ALL

By Organisation Size

SizeApplicabilityNotes
Micro partial No finance staff or SMT; scaled down to volunteer treasurer input at board level and basic dual authorisation (CC8).
Small partial Lacks formal committees; scaled down to treasurer/bookkeeper input on major decisions and basic segregation of duties.
Medium partial May lack formal A&R committees or bid panels; scaled to finance lead participation in SMT/Board and documented CC8 controls.
Large full
Major full

Applicable When

  • Organization is legally constituted

Not Applicable When

  • The organization is dormant, with no financial transactions.
  • The organization is managed by a single individual who holds all executive, operational, and financial authority (sole member/director structure without separate governance layer).
  • The organization operates exclusively on in-kind contributions with zero cash flow.

Discussion (1)

Administrator 2026-03-07 11:07:40.084453

📋 **Version updated: 1.0.0 → 2.9.7** **Changes:** Updated islamic_references from mizan-297.json

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