MANAGEMENT & INTERNAL CONTROL SYSTEM

HEADS has a decentralized four-tier management structure which includes:

1. GOVERNANCE STRUCTURE
   A seven members Board of Directors (BoD) is officially governed the organization and BoD is legally a policy and decision-making body. The Board meets twice a year, appraises the development and evaluates the organization’s advancement. The BoD is led by a Chairperson.
2. MANAGEMENT STRUCTURE
   HEADS has an organization management team comprise of sector specialists lead by an Executive Director (ED).  HEADS with a decentralized structure manages its operations through a 4 tier management structure. The management structure includes Board of Directors, Management Committee and Operational Core/Project Team
3. OPERATIONAL STRUCTURE
   All the core sections i.e. Administration, Finance, Human Resource, procurement and logistics are headed by Director Operations and assure the implementation of the project interventions as per the policies under the supervision of ED.  The overall project/field management is led by the Program Manager and implementation by Field Mangers/ Coordinators under the supervision of Director Programs who is further responsible to the ED.
4. GRASS ROOT LEVEL
   HEADS, as a development agent, aims at promoting the principles of participatory development at grass root level. HEADS adheres to the philosophy that no development program and strategy can fully achieve its goal without a meaningful and democratic participation of the all stakeholders. This “Participation of people” can only be achieved through broad based, self-sustaining and development oriented institutions at the grass root level.

MONITORING & EVALUATION DEPARTMENT
HEADs has established an independent Monitoring and Evaluation (M&E) Department. Monitoring and Evaluation (M&E) of various projects activities provides management with timely and relevant information for quick and remedial actions. It facilitates better means for learning from past experiences, improving services delivery, planning and allocating resources, and demonstrating results as part of accountability to key stakeholders. Within the organization there is a strong focus on results – that helps explain the growing interest in Monitoring and Evaluation. Depending upon the nature of the projects, M&E department also submits daily, weekly and monthly monitoring reports highlighting issues/challenges along with recommendations to the concerned project managers and Program Manager for their actions.

GEOGRAPHICAL FOCUS/COVERAGE
Khyber Pakhtunkhwa (KP) including Newly Merged Areas and Baluchistan & Sindh Provinces.

FINANCIAL MANAGEMENT
HEADS has financial policy manual to provide efficient administration and utilization of HEADS resources and efficient control over the disbursement of HEADS funds.  Presently HEADS relies on donors funding but plans for resource centers, trainings and consultancies to ensure the sustainability of organization.

HEADS financial management involves the following cycle:

• BUDGETING, PLANNING & ANALYSIS
  HEADS compiling and analyzing the organization’s long and short term financial strategy. Also creates the organization’s extended financial plan, generate management reports, analyze financial trends, calculate the monetary effects. HEADS prepares project budgets and approves by the donor, forecasting how much expect to spend on the project activities in order to implement the project interventions in a transparent manner.
• INTERNAL CONTROL
  HEADS assures proper controls in place to insure transparency and avoid misuse of money.
  HEADS controls that are often used include:

• Keeping cash in a safe place (ideally in a bank account).
• Making sure that all expenditure is properly authorized.
• Following the budget.
• Monthly monitoring the expenditure and its use.
• Employing qualified finance staff.
• Having an audit every year.

Carrying out a bank reconciliation every month that is to tally the amount available in bank with the cashbook.

• ASSEST AND LIABILITY MANAGEMENT:
  HEADS manage its fixed assets, suppliers and bank accounts simply, consistently and cost effectively and with accordance to the operational policy and system.

• TRANSACTION PROCESSING:
  HEADS manages the financial transactions with the standard processes following the organizational operational procedures with the mentioned steps:
• Setup of basic vendor or employee information in Quick book and verification (review) of the data’s accuracy.
• Review and approval of a transaction. This is occur at more than one stage of a financial process.
• Verification of payment being made or of goods or services being received.
• Verification of transactions appearing in a ledger, sub ledger, and other report, such as an editor exception report.
• Balance comparison between ledger and an independent data source.
• Review of ratios, trends, or year-to-year comparisons to identify potential errors.

• FINANCIAL REPORTING

HEADS finance section are regularly writing and reviewing financial reports. The financial report summarizes the receiving and expenditure over a certain period of time. Organization financial year is from 1^st July-01 to 30^th June of every year.