Internal Control System of HDF

Even though the HDF is a non-profit organization, it seeks to institute corporate governance just like a private sector organization. Corporate governance requires a strong systematic foundation. Generally speaking, internal control systems, standards and regulations are generally made with profit-oriented companies in mind and have few examples in the nonprofit sector. Every employee is responsible for applying those practices, such as:

Risk Assessment

HDF keeps a close eye on internal and external factors that prevent goals from being achieved and assessing the potential risks. Segregation of Duties Work duties is divided or segregated among different people to reduce the risk of error or inappropriate actions.


Comparisons are made between similar records maintained by different people to verify transaction details are accurate and that all transactions are properly recorded.

Control Environment

HDF ensures employee awareness about the organizational culture, which are:

  1. Employee discretion, values and ability.
  2. The management philosophy and operational style of the board and managers.
  3. The hiring and training of employees.
  4. The concerns and guidance of the board and supervisors.

Policies and Procedures

Established policies, procedures, and documentation that provides guidance and training to ensure consistent performance at a required level of quality.

Physical Controls

Equipment, inventories, securities, cash and other assets are secured physically and restricted to those with authority to handle them.

Transaction and Activity Reviews

Management reviews the transaction, operating, and reports help to monitor performance against goals and objectives, spot problems, identify trends.

Information Processing Controls

Numerous internal controls are performed to check the accuracy, completeness and authorization of transactions. Data entered is subject to edit checks or matching to approved control files or totals.

Organizational Capacity And Administrative Efficiency

HDF leadership structure consists of made up of some of the most accomplished and dedicated professionals having rich experience in the Public, Corporate and Social Development sectors. Its ultimate strength is its ability to develop a professional team that is as passionate and as committed to its mission. The organization’s administrative overhead has consistently been under 10%.