PHIG Policy Framework v1.2 · Policy 64 · Adopted 1 September 2026 · References: ASF financial sustainability and liability management policy; UK Charity Commission CC19 (reserves, reference); Nordic and Canadian donor financial-health criteria; Civil Code of Georgia (liability of non-entrepreneurial entities)
1. Purpose and scope
To keep PHIG solvent and able to meet its obligations through funding gaps, and to manage the liabilities that its activities create. Applies to the Board, the Director, staff, consultants, volunteers, experts, partners and suppliers of PHIG and all platforms of its network.
2. Policy
- Target reserve: unrestricted funds equal to at least three months of core running costs, built progressively from commercial income and unrestricted donations; the Board may authorise use of reserves for cash-flow gaps and emergencies, with a replenishment plan.
- Restricted funds are never used for other purposes; pre-financing is drawn down only as the grant allows.
- Income diversification: no single donor or client above 40% of annual income without a Board-approved risk plan (25% for commercial clients, per the Gift Acceptance Policy).
- Liabilities: PHIG enters commitments only within approved budgets and secured funding; contingent liabilities (guarantees, co-financing promises) require Board approval; professional and public liability insurance is held for assessments, training and events.
- Verdicts, assessments and publications carry the disclaimers the Legal Notice provides; PHIG does not warrant outcomes of commissioned work beyond the method applied.
- Financial sustainability is reported annually (see the Financial Sustainability statement) with reserves, concentration and liabilities.
3. Procedures
- Reserves calculation at each year-end; concentration report; insurance review.
Responsibilities
Board (Finance and Audit Committee); Director; accountant.
Review
Every two years and when donor rules change.
Part of the PHIG Policy Framework. Breaches and concerns may be reported under the Whistleblowing Procedure to info@accreditation.ge (subject “Confidential — integrity”).