Financial Matters

Guiding Principles and Values

HRDI is governed by a set of principles monitored horizontally and vertically.

As a non-governmental organisation HRDI (the board, management and staff) holds donor funds, property and resources in trust. Unlike profit making enterprises HRDI does not face profit and loss consequences. Unlike politicians, it does not face consequences at the ballot box. Consequently the obligation to act with utmost good faith and integrity is deeper.

HRDI holds money in trust on behalf of the most vulnerable in society. This means that it has an added obligation to act with prudence and take extra precautions, constantly bearing in mind how money is spent, what it is spent on and how it is accounted for.

Despite the fact that HRDI is not a profit making enterprise, it is guided by sound business principles. Systems and procedures, work ethic and responsibility that are found in profit making enterprises should guide the management of HRDI with the motivation being service to the vulnerable as opposed to profit.

HRDI is an organisation that strives to “do more with less”.  By this it is meant that wherever money, time and resources can be saved it must be done without compromising on delivering much needed services to the vulnerable groups that HRDI serves. It also means making an effort to keep overhead and running costs down while freeing up more funds and resources for direct services.

HRDI places great emphasis on the individual conscience and the integrity of the individual. While it also relies on internal control procedures and systems to mitigate the risks of collusion and foul play.

Time is one of HRDI’s most precious commodities. It can be utilised to improve services. Time is also something easily stolen through unhealthy work ethic and habits. HRDI strives to emphasise the need for accountability among students, partners, staff and management. While management is ultimately accountable, HRDI believes that the collective should also hold each other accountable to ensure checks and balances at every level of the organisation and to strengthen the lines of accountability.

It is an old adage that “information is power”. HRDI is an organisation that provides as much information as is reasonably possible in its effort to ensure transparency and openness.

Finance Policy

HRDI is totally committed to implementing and maintaining a finance policy that is transparent and risk averse ensuring effective and efficient utilisation of funds and ensuring accountability to funders. We hold funds in trust on behalf of extremely vulnerable groups who have little say in how we spend money and make financial decisions. Consequently, HRDI adopts an extremely prudent approach to spending and incurring expenses.

We recognise the faith and trust placed in us as individuals and as an organisation and we reciprocate by acting with utmost good faith.

We chose to register a Section 21 (not for profit) Company in terms of the South African Companies Act of 1973. This formal structure ensures that management is in line with the requirements of sound financial policies and procedures, which includes an independent annual audit. Although management will concentrate on its core business we believe that finance is equally important in ensuring that we achieve our objective.

Some of the procedures implemented to ensure the smooth running of our finances are the following:

  • Development and implementation of effective internal controls  and procedures;
  • Employing people with the necessary knowledge and skills of finances;
  • Adequate segregation of duties within the finance department;
  • Constant communications with our auditors PricewaterhouseCoopers Inc, one of the worlds leading professional service providers;
  • Budgeting processes as well as accurate regular management reports discussing any deviations from budget and noting the state of funds. Such that any problems will be noted immediately;
  • Use of accounting software in line with our needs; and
  • Ensuring that the specific needs of funders is correctly addressed.

We recognise the faith and trust placed in us as individuals and as an organisation and we reciprocate by acting with utmost good faith.