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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.

Compliance 2
  • Documented internal financial controls (CC8) embedded into decision workflows (bank mandate, segregation of duties, reconciliations)
    Governance Essential
  • Regular financial reporting to leadership including going concern/distress triggers (CC12)
    Documentation Essential
Basic 2
  • Finance staff participation in key decision-making forums (Board, SMT, A&R, Bid Panels)
    Governance Essential
  • Financial implications considered in all major decisions (as defined in Description)
    Process Essential
Good 11
  • Clear process for financial input into decision-making with analysis in proposals
    Process Essential
  • Finance director/manager with appropriate authority to pause approvals
    Governance Essential
  • Formal escalation and resolution timeline (5 days) for finance pauses
    Process Essential
  • Documented Scheme of Delegation (SoD) with monetary thresholds
    Governance Essential
  • Finance lead has unrestricted access to Board/Audit & Risk Committee
    Governance Essential
  • Outsourced/volunteer finance: Written SLA/engagement letter specifying turnaround, scope, independence, and named lead
    Governance Essential
  • Finance director/CFO as part of senior leadership team
    Leadership High
  • Board finance calendar (budget, reforecast, reserves, going concern, SoD review)
    Governance High
  • Financial sustainability impact included in decision criteria
    Sustainability High
  • Contract approvals consider duty to fulfil covenants (Q5:1)
    Compliance High
  • Standard decision-paper template with full cost recovery and finance sign-off
    Process High
Better 4
  • Financial expertise on the board of trustees
    Leadership High
  • Value-for-money analysis in program decisions (anti-isrāf)
    Excellence Medium
  • Financial risk assessment for major initiatives (al-ghunm bil-ghurm)
    Sustainability High
  • Annual finance training for trustees and senior managers
    Capacity Building High
Best 1
  • Audit & Risk Committee with independent chair and qualified accountant
    Governance High

Related Criteria

TS-BGS-01 Trustee board meetings are scheduled, quorate, and minuted TS-BGS-02 Trustees set direction & strategy TS-BGS-03 Trustees meet statutory reporting TS-BGS-05 Annual board and executive skills-gap analysis conducted and actioned TS-BGS-06 Public remuneration & expense disclosure for senior staff
Version
2.9.7 2025-11-05

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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