In order to run an organization of such an international scope, we need and have a clearly structured practice of financial management. This is how we handle the financial resources of oikos International, budgeting, accounting and reporting.
The constitution regulates the revenues the organisation can make (no profit), the claims that members have on them (none), liabilities (none of the members, board members, employees or volunteers) and what happens to the money after the dissolution of the association. The oikos fiscal year goes from January 1st to December 31st of the same year.
In general, we count on all team members of oikos International to make financial decisions based on good judgement and ethical standards. They are also obliged to avoid potential conflict of interest (read more in the field guide). All revenues & expenses have to be recorded in the oikos International budget and the accounting of the year they occurred. We strive to set a sign by working with more sustainable finance alternatives.
Our balance sheet of explanations
| Revenues | Expenditures |
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The oikos International budget serves as a forecast tool for planning the following financial year, determining the amount needed to be fundraised and monitoring expenses and (potential) revenues throughout the year in Swiss Francs (CHF). It is approved by the Legislative Assembly prior to the year and should act as a guideline for the Legislative Assembly to determine the accuracy of the financial statements.
Learn more about the process, responsibilities and tools we use in the Finance field guide.
According to the constitution, the association's financial reports need to consist at a minimum of a cash accounting according to Swiss law, Art 957 Abs. 2 Ziff. 2 CO. In practice we keep a double-entry accounting and use the accrual basis of accounting. Learn more about the principles and process we follow.
At the end of each fiscal year the person responsible for administration and financial management prepares the financial statements based on the accounting and submits it to an external auditor. After a successful audit the auditors report, together with the financial statements, will be presented at the Legislative Assembly for approval. The financial statements should also be sent to all donors and included in all grant reports. oikos is not obliged to have their statements audited, but it is important for us to still do it to bring more transparency and build trust towards the organization.
Learn more about our accounts, and financial practices in the Finance Field Guide
Revenues consist of donations and revenues from events, initiatives and publications.
There are different forms of invoicing, depending on the kind of revenue.
Salaries,
Reimbursements for work-related expenses, and
Other expenditures to run the organization need proper invoicing & have to be approved by a second person.