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TS-FS-03 Trust & Stewardship Financial Stewardship CORE Compliance v2.9.7

Robust accounting system

This criterion assesses whether the organization has implemented a reliable, secure, and appropriate accounting system that accurately records all financial transactions and produces timely financial reports. A robust accounting system is fundamental to financial management, transparency, and accountability. Scope includes system configuration, access/security, audit trails, period controls, journal workflows, reconciliations support, and interface/import controls. Budgeting/forecasting and strategic performance reporting are assessed only insofar as they are generated from the accounting system.

Compliance 2
  • System must support SORP (FRS 102) fund accounting: restricted, unrestricted, and endowment funds; project/grant codes; and mapping to SoFA headings
    Infrastructure Essential
  • Transaction-level evidence retention: invoices/receipts/approvals attached or cross-referenced; retention schedule applied
    Documentation Essential
Basic 4
  • Appropriate accounting software for the organization's size and complexity
    Infrastructure Essential
  • Chart of accounts aligned with reporting requirements
    Process Essential
  • Ability to produce accurate financial reports on demand
    Performance Essential
  • Regular reconciliation processes
    Continuous Improvement High
Good 15
  • Documented backup and restore procedures with at least annual restore test evidence
    Process Essential
  • Defined RPO/RTO approved by management/board and reviewed annually
    Governance Essential
  • User access controls and audit trails with enforced SoD (initiate–approve–post), documented JML workflow, MFA, no shared accounts, monthly privileged log review, and quarterly access recertification
    Governance Essential
  • Documented interface controls for bank feeds/imports/APIs: field validation, duplicate detection, and exception reporting
    Technology Essential
  • System documentation and procedures
    Documentation Essential
  • Defined month/quarter/year-end close timetable with task ownership and deadlines
    Process Essential
  • Prior-period lock and change control for closed periods
    Governance Essential
  • Journal entry workflow with maker–checker approval and supporting documentation
    Governance Essential
  • Suspense/clearing account policy with monthly review and zeroing
    Process Essential
  • Cloud-based system with automatic backups
    Technology High
  • Multi-level approval workflows
    Transparency High
  • Comprehensive audit trails for all transactions
    Transparency High
  • Regular system reviews and updates
    Continuous Improvement Medium
  • Staff training on system use and procedures
    Continuous Improvement Medium
  • Charity Commission: Protect your charity from fraud and cyber crime—expectations for controls and incident response
    Governance High
Better 5
  • Formal change management for accounting system and master data (CoA, vendors, projects) with approval, testing, and audit trail
    Governance Essential
  • Integration with banking and payment systems (governance aligned with PSR 2017/SCA)
    Technology High
  • Period close checklist, prior-period lock, and close within ≤10 working days
    Transparency High
  • Annual disaster recovery test with documented RPO/RTO
    Technology High
  • Quarterly access recertification and SoD review
    Transparency High
Best 1
  • Obtain and review SOC 1 Type II (financial controls) and/or SOC 2 Type II/ISO 27001 annually; document review of findings and CUECs
    Technology High

Related Criteria

TS-FS-01 Trustees review management accounts TS-FS-02 Banking, procurement & AML controls TS-FS-04 Segregate and control Zakat vs Sadaqah (ledgers, banking, donor intent) TS-FS-05 Fundraising costs fairly reported TS-FS-06 Statutory accounts externally audited/examined with clean outcome and filed on time (all applicable regulators)
Version
2.9.7 2025-11-05

Discussion (1)

Administrator 2026-03-07 11:07:46.977254

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

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