Financial transparency is a principle of the utmost importance for Krousar Thmey. Everyone has the right to know how we use the money we receive.
Organisation of financial operations in Cambodia
The activity of the financial and administrative department, which is tasked particularly with managing funds received and associated accounts, is concentrated at the head office.
In order to ensure sustainability of its activities, Krousar Thmey solicits funding from as many different sources as possible, including both individual donations and partnerships established with NGOs and international foundations. A special effort is made to secure commitments at the local level.
Every time a donation is received in Cambodia, we send the donor a copy of the credit advice we receive from our bank. The department then launches the project financed by the gift and, in conjunction with the communication department, prepares a narrative and financial report for the donor.
Transactions are recorded using certified accounting software once each invoice has been properly signed and validated by the persons responsible for payment. Expenses over US$100 as well as those outside the budget are subject to a purchase request procedure. Three quotes are routinely required to ensure optimal value for money. To benefit from economy of scale, certain purchases are made centrally in the capital before being distributed in the centres.
The administrative and financial department also reviews accounting entries, maintaining the segregation of duties. Every quarter, actual expenses are compared with the projected budget, and the budget for the centres is adjusted accordingly.
Thanks to rigourous financial controls and the involvement of our European volunteers, Krousar Thmey keeps its administrative expenses below 4% of total expenses. All Cambodian accounts presented in the annual report have been certified by the audit firm of KPMG. The accounts of the French and Swiss branches also are audited annually.
Origin of funds in Cambodia
Use of funds in Cambodia
(Excerpts from the 2009 annual report, which is available in its entirety here)