At the Collective Empowerment Foundation (CEF), financial transparency is a core value that underpins every aspect of our work. Whether managing resources in Australia or delivering projects in some of the world’s most remote regions, CEF is committed to handling every dollar with integrity, accountability, and care.
Our accounting procedures are designed to meet the highest standards of public transparency, ensuring that donors, partners, beneficiaries, and regulators can have complete confidence in how we manage financial resources.
Domestic Accounting Procedures (Australia)
As a registered Australian charity, CEF operates under a formal Financial Management Policy that complies with the requirements of the Australian Charities and Not-for-profits Commission (ACNC) and the Australian Accounting Standards Board (AASB).
Financial oversight is provided by both the Board of Directors and the Finance Committee. The Board is responsible for reviewing and approving all transactions over $1,000, endorsing financial statements, overseeing financial planning, and ensuring compliance with regulatory requirements. Meanwhile, the Finance Committee monitors financial performance, recommends policy improvements, and reviews financial reports before they are presented to the Board.
Each year, CEF prepares an annual budget that aligns with our strategic plan. The budget is developed by the Executive Director or Finance Manager and must be approved by the Board. Monthly financial reports track progress against the budget, allowing any variances to be addressed promptly.
All financial transactions are meticulously recorded in line with Australian Accounting Standards, and quarterly and annual financial statements are prepared to ensure full visibility. In addition, CEF engages an independent external auditor each year to verify compliance with regulatory standards and best practices.
Fundraising and revenue management are also carefully governed. CEF ensures that all fundraising activities comply with the Charitable Fundraising Act 1991 (NSW) and that funds are allocated transparently. Donations earmarked for specific projects are tracked separately to ensure they are used as intended, while general donations are pooled and allocated based on assessed community needs.
International Accounting Procedures (Papua New Guinea and Bougainville)
Managing finances abroad—especially in challenging environments like Papua New Guinea—requires flexibility without compromising accountability. CEF manages all international financial operations through a single, centralised Australian bank account, maintaining strict oversight of funds from donation to disbursement.
We do not operate separate bank accounts overseas. Instead, all project expenses, including those incurred in Bougainville and Western Province PNG, are tracked individually by project within our internal accounting system.
In remote locations where electronic payments are not feasible, CEF follows a strict cash handling procedure. Cash is withdrawn locally by authorised staff, who are required to document every transaction using CEF’s official receipt and transaction form . Each cash transaction must be supported by:
• A completed receipt template detailing the vendor’s information, item descriptions, total amount, and payment method.
• Signatures from both the supplier and the CEF staff member authorising the payment.
• Digital documentation where possible, such as a photo of the goods or services provided.
CEF prefers to use formal invoicing wherever vendors can accept direct Australian bank payments. However, in many remote areas where vendors operate informally, cash remains the only practical method. In such cases, a comprehensive audit trail is maintained to ensure every dollar is accounted for.
Funds abroad are managed primarily in Australian Dollars (AUD) and converted to Papua New Guinean Kina (PGK) when withdrawn locally. Exchange rates are documented to ensure full financial transparency.
Managing Donations: Restricted and General Funds
CEF honours the intent behind every donation. When donors specify that their contributions are to be used for a particular purpose, such as installing solar systems in Kainake Village, those funds are earmarked and managed as restricted funds. They are allocated strictly to the designated project and reported as such in financial summaries.
General donations, on the other hand, are pooled together and allocated based on strategic priorities and identified community needs. This approach allows CEF to respond flexibly to urgent challenges while maintaining donor trust through clear and transparent fund management.
All donations, whether restricted or unrestricted, are carefully tracked through our accounting system to ensure transparency and to allow for project-specific reporting when needed.
Risk Management and Internal Controls
Across all operations, CEF maintains robust internal controls to safeguard funds. All cash disbursements abroad must be recorded with dual signatures and digital documentation wherever possible. No expenditures over $1,000 are approved without review by the Board, and monthly reconciliations ensure ongoing monitoring of cash flow and project expenses.
Although CEF operates in some of the world’s most logistically challenging environments, the organisation’s internal procedures ensure that risks related to fraud, mismanagement, and financial irregularities are minimised at every step.
Annual Review and Commitment to Continuous Improvement
CEF’s Financial Management Policy is reviewed annually to ensure it remains aligned with best practices, legal requirements, and the evolving needs of the communities we serve. Lessons learned from our work in the field are incorporated into updates, ensuring that our financial systems remain both rigorous and adaptable.
By embedding transparency, compliance, and ethical stewardship into our financial practices, CEF not only meets its regulatory obligations but also models the kind of development organisation we believe the sector should aspire to.
In Summary
The Collective Empowerment Foundation operates with a steadfast commitment to ensuring that every dollar entrusted to us is used responsibly, transparently, and effectively.
At home and abroad, we uphold the highest standards of financial governance through:
• Rigorous internal controls.
• Transparent public reporting.
• Careful donor stewardship.
• Annual independent auditing.
Our financial procedures reflect our broader mission: to empower vulnerable communities ethically, respectfully, and sustainably—ensuring that the trust placed in us by donors, partners, and the communities we serve is honoured every step of the way.
📍 To learn more about CEF’s financial management or to view our audited statements, please contact us at:
📧 contact@collectiveempowermentfoundation.org
