Why financial reporting matters

Every registered Community-Based Organization operating in Kenya is required to maintain accurate financial records and submit annual financial statements to the county social development office. This lesson covers the minimum reporting standards, timelines, and accepted formats.

Required financial statements

The following documents must be prepared at the end of every financial year and submitted to your county social development office:

• Income and Expenditure Statement — a summary of all income received and expenses incurred during the year.
• Balance Sheet — showing assets, liabilities, and the net worth of the organization.
• Cash Flow Statement — tracking actual cash movements in and out of your accounts.
• Notes to the Accounts — disclosing donor sources, project allocations, and any contingent liabilities.

Filing deadlines and penalties

Annual returns must be filed by 30 September each year, covering the financial year ending 30 June. Failure to file on time may result in a warning notice, suspension of registration, or in persistent cases, deregistration by the county social development department.

Using the budget template

Download the attached budget template (Excel format) and complete it with your CBO's actual figures. The template auto-calculates totals and highlights any lines where expenditure has exceeded the approved budget. Share the completed template with your facilitator by the end of this module.