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TS-FS-13 Trust & Stewardship Financial Stewardship CORE Compliance v2.9.7

Funds disbursed timely

Assessing whether the organization disburses funds to beneficiaries, projects, and partners in a timely manner is critical. Prompt disbursement is essential for program effectiveness, maintaining partner relationships, meeting beneficiary needs, and fulfilling the purpose of charitable donations. In Islamic tradition, the prompt distribution of Zakat (obligatory charity) and Sadaqah (voluntary charity) reflects upholding organizational Amanah (trust). Unjustified delay in delivering these financial rights contradicts the imperative of Ihsan (excellence) when serving vulnerable populations.

Compliance 7
  • Appropriate approval levels based on amount, including specific controls for ex gratia payments (CC7)
    Governance Essential
  • Escalation process for delayed disbursements, including consideration for Serious Incident Reporting (RSI)
    Process Important
  • 12-week rolling cash-flow forecast linked to grant/payment schedules; minimum liquidity thresholds by currency (CC19)
    Treasury Essential
  • Signatory coverage and maker-checker continuity plan with out-of-office/backup arrangements (CC8)
    Governance Essential
  • Segregation of duties and dual authorisation thresholds (maker-checker) aligned to CC8
    Governance Essential
  • Beneficiary/partner master data controls compliant with UK GDPR (accuracy, minimization, retention)
    Data Quality Essential
  • Anti-bribery controls (Bribery Act 2010) for cash/imprest/agents
    Compliance Essential
Basic 2
  • Efficient payment systems and procedures with returns/rejections management
    Process Essential
  • Electronic payment systems where possible
    Technology High
Good 5
  • Documented disbursement process with clear timelines and defined 'Payment Pack Complete' (PPC) checklist
    Documentation Essential
  • Communication protocol with minimum content standards (milestones, ETA, escalation route) and SLA for status queries
    Stakeholder Engagement Essential
  • Disbursement targets for different types of funding
    Excellence High
  • Pre-approval processes for recurring payments
    Continuous Improvement Medium
  • Regular review of bottlenecks
    Continuous Improvement High
Better 11
  • System-of-record timestamping for PPC (start) and Settlement (end) with defined role ownership
    Data Quality Essential
  • Tracking of disbursement performance with delay classification and 'stop-the-clock' policy for lawful holds
    Monitoring Essential
  • Measurement of median disbursement time (Gross and Net of lawful holds)
    Performance Essential
  • Regular reporting on disbursement efficiency: Weekly operational dashboard, Monthly management review, Quarterly board assurance
    Documentation Important
  • Risk-tiered SLAs by funding type, corridor, currency, and payment rail
    Risk Management Essential
  • Documented contingency payment plan with minimum testing standards (e.g., 2x yearly tabletop, 1x annual live test)
    Risk Management Important
  • Performance metrics for payment processing
    Excellence High
  • Emergency fast-track procedures prioritized by Ḥifẓ al-nafs
    Innovation High
  • Partner feedback on disbursement experience
    Stakeholder Engagement High
  • Continuous improvement of payment processes
    Continuous Improvement High
  • Pre-positioned emergency funds/imprest with acquittal controls
    Risk Management High
Best 2
  • Segment KPIs and SLAs by corridor/rail and donor restrictions
    Performance High
  • Self-service portal/email alerts for payment milestones
    Technology High

Related Criteria

TS-FS-01 Trustees review management accounts TS-FS-02 Banking, procurement & AML controls TS-FS-03 Robust accounting system TS-FS-04 Segregate and control Zakat vs Sadaqah (ledgers, banking, donor intent) TS-FS-05 Fundraising costs fairly reported
Version
2.9.7 2025-11-05

Discussion (1)

Administrator 2026-03-07 12:01:00.075367

📋 **Version updated: 1.0.0 → 2.9.7** **Changes:** Full import from mizan-297.json

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