Financial Directive


1.1 Relationship with other provisions

Frame Foundation’s financial and asset management, accounting, financial statements and auditing are governed by the provisions of the Accounting Act and Ordinance, the Auditing Act, the Foundation Act and the Foundation’s own rules, in addition to the provisions of these Financial Regulations.


2.1 Coverage of the Foundation’s expenditure and debt financing

The Foundation’s operating expenditure is covered by the income from its assets and the income from its activities. Return on assets means the current income from investment assets and capital appreciation.

The Foundation’s activities may not be financed by borrowed capital. The Governing Board may decide, for particularly serious reasons only, to raise debt to finance the actual activities.

Investment activities may not be financed by borrowed capital.

The Governing Board may decide to incur debt if this is necessary for the management of fixed assets. The Executive Director may not decide to contract debt for the Foundation.

The Foundation may not engage in commercial activities.

2.2 Loans, guarantees, securities

The Foundation’s funds may not be lent to third parties. The investment of funds by a
trustee shall not be considered as a loan of funds.

The Foundation may not provide guarantees or collateral for external debt.

The Governing Board shall decide whether to grant a guarantee or provide security for the
Foundation’s debt.

2.3. Funding of assets

The Foundation’s investment activity is based on maintaining the fair value of its investment assets between approximately EUR 60,000 and EUR 100,000.

The target value of the investment assets may be reviewed annually in the context of the annual meeting of the Board of Directors. The amount of the investment assets is subject to fluctuations linked to stock market activity.

The Foundation will fund the appreciation and current income from its assets, excluding any State subsidy received by the Foundation, in such a way as to maintain, as far as possible, the value of the investment assets within the above range.

2.4. Management and control of investment assets

The Governing Board shall adopt an investment strategy for the Foundation, on which the management of its investment assets shall be based. The level of risk of the investments shall be moderate.

The Foundation’s investment assets shall be managed by a professional treasurer under a full mandate. The Board of Directors shall decide on the tendering and replacement of the fiduciary.

Any significant change in the investment portfolio structure shall be decided by the Board of Trustees.

Twice a year, the Managing Director reports to the Board on the composition of the investment portfolio, investment events and returns by type and other current issues.

In order to verify the accuracy of the income from securities, the Managing Director compares the payment or other document received in the bank account with the portfolio reports of the asset managers and with the accounts. Discrepancies will be resolved as soon as possible.

The Governing Board and the Executive Director shall ensure that the Foundation’s investment and asset management activities are systematic and that the assets are invested in a secure and profitable manner in accordance with the investment strategy approved by the Governing Board.

The Foundation’s capital is invested in a responsible manner, in line with the UN-supported Principles for Responsible Investment, and investment decisions take into account environmental, social responsibility and good governance factors.

2.5. Insuring the assets and activities

The Executive Director is responsible for ensuring that the Foundation has adequate insurance cover for its property and staff and for its trustees.

2.6. Fundraising

The Foundation’s fundraising activities will be examined from an ethical and accountability perspective. The review also seeks to ensure that the Foundation’s partnerships or the funding received does not undermine its operational capacity, reputation or independence, or compromise the ethical, environmental, economic or social sustainability of the Foundation’s activities. Partnerships or funding cannot be in conflict with Frame’s values.

The Foundation will not accept funding based on illegal activities. The Foundation does not accept anonymous donations without knowing the origin of the donation.


3.1. Preparation of the budget

The Executive Director will prepare and present to the Board a preliminary budget for the following year by the end of October. The Executive Director will prepare the final operating plan and draft budget and submit them to the Board of Directors for discussion and approval at the annual meeting by the end of March at the latest.

The draft budget is based on the assumption that the subsidy received from the Ministry of Education and Culture for the Foundation’s activities will be used within the time limits laid down in the Ministry’s decision.

3.2. Budget items

The draft budget must be drawn up in such detail as to show all the Foundation’s revenue broken down by source and expenditure broken down by object. The budget items must be broken down into sections, chapters and articles.

The revenue and expenditure items shall be budgeted in the budget as items per article of EUR 100.

Monitoring of the budget
The Executive Director shall report to the Governing Board at each Board meeting or at least quarterly on the implementation of the budget.

The Executive Director is responsible for ensuring that the Foundation’s purchases do not exceed the approved budget.

The Governing Board monitors the implementation of the budget.

3.3. Account systems

The accounts and budget headings should be as consistent as possible.


4.1. Monetary transactions, bank accounts and cash in hand

With the exception of minor payments, payments must be made through bank accounts.

The opening and closing of bank accounts and access to them shall be decided by the Board of Directors. The Board of Directors may authorise the Managing Director to decide on the access rights to the accounts.

The Foundation’s credit and debit cards may be used only for the Foundation’s own expenditure. The Governing Board shall approve separately the policy for the use of credit and debit cards.

The Executive Director shall decide on the amount of the Foundation’s cash resources and shall be responsible for the treasury management of the Foundation.

4.2. Procurement

The purchase, disposal (including sale, donation and exchange) and rental of assets of major importance for the Foundation’s activities shall be decided by the Governing Board.

Major purchases or other extraordinary, exceptional expenditure of more than EUR 10,000 which deviate from the budget should, as far as possible, be discussed in advance by the Governing Board.

In the case of major exhibitions and similar projects, the approval procedure shall be agreed separately.

4.3. Verification of invoices

Before any expenditure is paid, the invoice or the supporting document must be checked for accuracy and correctness and must meet the requirements for supporting documents set out below.

Invoices for incidental purchases shall be checked by the person who made the purchase.

Invoices for regular/current expenditure shall be verified by the Administrative Manager or
the Executive Director.

The auditor must enter the date of the audit and his/her name or initials on the voucher.

4.4. Approval of invoices

Invoices and payments from the Foundation shall be authorised by the Executive Director or his/her deputy. The President of the Governing Board shall approve the personal expenses of the Executive Director.

All invoices and expenses shall be subject to substantive checking and approval in the Foundation’s financial management system before payment.

The Executive Director shall ensure that payments sent for payment are based on vouchers that have been checked and approved in advance.

4.5. Payment of invoices

Invoices may be paid by the authorising officer.

All invoices are paid through the Foundation’s financial management system.


5.1. Keeping the accounts

The accounts are kept by an external accounting firm. The Board will decide on the tender and selection of the accounting firm. A detailed contract will be concluded with the accounting firm and approved by the Director.

When using an external accountancy firm, attention will be paid to the quality of the service and the firm will be required to have sufficient experience in the financial management of foundations.

5.2. Organisation of the accounts

Accounting must be organised and maintained in accordance with the Foundation Act and the Accounting Act and Regulation. The organisation of the accounts must take into account the requirements of good accounting practice, the nature and scope of the foundation’s activities, the basis for internal control and the monitoring of financial management.

The accounting system is based on a written list of the accounts used. These lists are kept as an annex to the financial statements.

The revenue and expenditure for the financial year shall be entered gross in their respective accounts, without any deduction of revenue from expenditure or expenditure from revenue, except for the necessary adjustments.

The accounting records must be kept up to date and must be carefully maintained.

5.3. Reporting requirements

The accounting entries must be based on original supporting documents numbered consecutively from the beginning of the accounting year.

The supporting document for a payment made must, where possible, be issued by the payee or the MFI which made the payment and must show

● the recipient of the goods or works
● how the expenditure relates to the Foundation’s activities
● the endorsement of the case and number auditor
● the entry of the authorising officer
● the indication of the person who paid the expenditure
● if the payment is based on an explicit decision of the Board, the number of the minutes of the Board meeting.

Where the accounts are based on statements of account, the corresponding information must appear on the statement of account or on supporting documents, contracts or invoices.

If the entry is not supported by a voucher issued by a third party, the entry must be verified by a duly certified voucher drawn up by the Foundation itself.

5.4. Financial period

The financial year of the Foundation is the calendar year.

5.5. Financial statements

The Managing Director must prepare financial statements and a report on the Foundation’s activities for the financial year in accordance with the Foundation Act and the Accounting Act and Regulation and in good accounting practice, and present them to the Board of Directors.

The financial statements and the report on the activities of the Foundation for the previous year must be drawn up by the end of February and submitted to the Governing Board by 1 March each year.

The financial statements shall be signed by the Board of Directors and the Managing Director.

The Governing Board and the Executive Director are responsible for ensuring that the annual accounts and the report on the activities of the Foundation together give a true and fair view of the results of its operations and its financial position.

5.6. Auditors and audit

The Foundation must appoint one auditor and one deputy auditor.

A deputy auditor must be elected even if the auditor is an approved audit firm.

The Foundation’s auditors are elected annually at the Annual General Meeting to audit the accounts and administration for the current year.

A written contract with the auditors is concluded and approved by the Board. The contract shall stipulate the areas of audit to be carried out separately, in addition to or alongside the regular audit, in connection with the use of the State subsidy.

The auditors shall submit their audit report and opinion to the Foundation’s Governing Board at least two weeks before the regular meeting of the Governing Board, which shall take place by the end of March.


The Foundation may have unrestricted funds or restricted funds, the creation or dissolution of which is decided by the Board of Directors.

The Governing Board shall lay down separate fund rules for each fund.

Funds may be created from donations and bequests, or donations and bequests may be made to existing funds. The conditions of any donations and bequests must be appropriate to the purpose of the fund.

The Foundation must refuse to accept donations and legacies if the conditions for the use of the funds do not comply with the rules governing the purpose and activities of the Foundation.


This directive was approved by the Foundation’s Board of Trustees on 13 December 2016.

Amendments to this directive were approved by the Foundation’s Governing Board on 18
November 2019.

Amendments to this directive were approved by the Foundation’s Governing Board on 20
March 2023.