TS-FS-08
Trust & Stewardship
Financial Stewardship
CORE
Compliance
v2.9.7
Qualified Finance Function & Oversight
Assessing whether the organization has a finance function (in-house or outsourced) with appropriate qualifications, experience, and governance oversight, it ensures that staff or providers possess the necessary competence for financial management, compliance (including fraud and data protection), and strategic planning, supported by active board-level financial expertise. This reflects the Islamic principle of kafa'ah (competence) and the maqasid objective of hifz al-mal (preservation of wealth), ensuring institutional resources are diligently safeguarded as a sacred amanah (trust).
Assessment Questions
- Are there formal job descriptions and role-based competency standards (e.g., qualified accountant for FD) for all finance positions?
- Does the organization verify qualifications, right-to-work, and HMRC Fit & Proper declarations for finance staff and trustees?
- Is there a documented SoD/RACI matrix for banking, payroll, purchasing, and Gift Aid, and is it tested annually?
- What is the month-end close timetable and actual close performance for the last 3 periods (timeliness, reconciliations)?
- If finance is outsourced, what SLAs/KPIs exist, and what were the outcomes of the last two performance reviews?
- Does the board/Finance Committee include a trustee with recent relevant finance experience, and how is their effectiveness evidenced?
- How are audit/IE findings tracked and closed, and what percentage were closed within the agreed timeframe last year?
Evidence Requirements
- Organizational chart showing the finance department and reporting lines.
- Job descriptions and role-based competency standards.
- Qualification & membership verification log (including right-to-work checks).
- HMRC Fit & Proper declarations (finance lead and trustees).
- SoD/RACI matrix for banking, purchasing, payroll, Gift Aid; cross-cover plan.
- Month-end close timetable + last 3 months close tracker + reconciliations sign-off.
- Outsourcing contract/SLA, KPI reports, and review minutes (if applicable).
- Audit/IE management letter and action tracker with closure dates.
- Evidence of budget allocation and expenditure on staff training/CPD.
Scoring Guidelines
| Level | Rating | Description |
|---|---|---|
| 5 | 5/5 | Highly qualified team/provider with excellent experience; annual SoD testing; external effectiveness reviews; finance leads sector benchmarking and strategy. |
| 4 | 4/5 | Well-qualified team; monthly KPI dashboard reviewed; audit actions closed on time; active trustee finance expert on committee. |
| 3 | 3/5 | Adequately qualified staff; documented SoD and cross-cover; month-end timetable defined; SLAs in place for outsourced functions. |
| 2 | 2/5 | Basic qualification verification performed; Fit & Proper declarations signed; trustees receive basic reports but lack deep oversight. |
| 1 | 1/5 | Unqualified staff, severe understaffing, or no formal oversight of outsourced functions. |
Discussion (1)
Administrator
2026-03-07 11:07:48.605807
📋 **Version updated: 1.0.0 → 2.9.7** **Changes:** Updated islamic_references from mizan-297.json
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