...How to Manage Cash Account and Transactions in NGOs – NGO Financial Management Policy Cash payments need to be documented firmly by NGOs in their financial management policy. Since small sums of cash payments are common on a day-to-day basis, a certain procedure needs to be developed and mentioned in the policy manual. An example is given below: “3. Cash Handling 3.1 Cash Account and Transactions Cash transactions are to be resorted only for petty expenses and when /where banking facilities are not available. As per Income Tax Rules, no claim exceeding $______ should be settled through cash payments. These should invariably be by account payee checks only. As a matter of procedure and control, the attempt should be to minimize the number of cash transactions. 3.2 Daily Cash Balance The denomination of the closing balance of the cash should be entered below this and signed by the Accountant. This register has to be maintained from the beginning of the financial year. A fresh register has to be started at the beginning of every financial year. Maximum and minimum cash limits have been fixed as: maximum $______ and minimum $______. 3.3 Withdrawal of Cash from Bank a) The Cash Withdrawal Form/Money Indent to be filled up and signed by the staff handling cash. b) The cash balance available and the estimated expenses would need to be computed. c) The authorized persons must verify the requirement before signing the check for withdrawal of cash. d) The signature of the person presenting...
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...Accounting System and Financial Reporting of NGOs: Case Study of a BRAC’s Project Munima Siddika1, Mohammad Sarwar Jahan Rekabder2 and A.K.M. Delwar Hossain3 tawheedfj@yahoo.com Abstract: In the absence of specific accounting and financial reporting standards and diverse interpretation of certain terms under the laws of the land, it has become a very difficult task to follow a standardized procedure in generation and presentation of accounting and financial information of NGOs. The practices followed by NGOs in Bangladesh are varied and diverse and there by preparation of financial statements are incomparable and difficult for uses to understand. The paper tries to demonstrate financial reporting and accounting system of a BRAC’s project and provide a guideline for constituting suitable financial reporting and accounting systems for NGOs. The article elaborates on basis of preparation of financial statements and reporting procedure and then followed by accounting systems of regional office and head office of that project. The final part of the article discuses issues relating to financial report and financial transparency of the project. Munima Siddika, Lecturer, Faculty of Business and Economics, Daffodil International University, 102 Sukrabad, Mirpur Road, Dhaka-1207, Bangladesh. Mohammad Sarwar Jahan Rekabder, Lecturer, Faculty of Business and Social Studies...
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...AccountAble Handbook Budget & Balance Report vFkZ'kkL= Corpus Voucher NGO Fixed Assets Register Grants Accounting Standards Narration Receipts and Revenue Stamps Benedetto Cotrugli Ledgers Regulation Cash Box Revolving Funds Accounting Multiple Cash Books Trial Balance Auditors Computerized Accounts Deficit Endowments Investments Journal Honorarium Form IIIA Bank Reconciliation Account Payee, Not Negotiable ction 10(23C)(iv) Blank Cheque Tax Exemption vkpk;Z dkSfVY; Key Persons ACCOUNTABILITY Contribution in Kind INCOME Transparency Public Disclosure Auditors’ Certificate Debit Stock Register Receipts & Payments Societies Registration Act, 1860 Public Trust TM AccountAid India Section 25 Non-profit Company Section 80G New Delhi Donation Ear-marked Funds Salary Register izfrxzkgdSÜpk;a Gratuity Conflict of Interest About this book (front inside cover) The AccountAble Handbook is a compilation of the individual issues of ‘AccountAble’, released by AccountAid India since 1994. These issues have been designed and circulated on a monthly basis primarily for the partners of our client Agencies. ‘AccountAble’ is circulated to about 1,200 persons, including Chartered Accountants. It is also available through e-mail, on a complimentary basis. The present compilation brings all issues of AccountAble related to accounting and regulation of non-profit organisations together at one place. Issues related...
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...world affairs. Now, there are about twelve thousand NGOs in all over the world operating in most countries. These organizations are not directly affiliated with any national government, but often have a significant Impact on the social, economy and political activity of the country or region involved. So, we can say that NGOs have become major players in the field of international and national development. Bangladesh has largely failed to assist the poor or reduce poverty because of limited resources and planning, while NGOs have grown dramatically, but it ostensibly fails to fill this gap. There are more and bigger NGOs here than in any other country of equivalent size. Here, NGOs have mainly functioned to service the needs of the landless, usually assisted by foreign donor funding as a counterpoint to the state's efforts. Besides all these, in the field of NGO, Financial Reporting process and application of accounting is disgraceful. NGOs in Bangladesh have increasingly become subject to question and criticism from the government, political parties, intellectuals and the public in genus for misuse of funds, gender discrimination, and nepotism. Absence of proper guidelines in preparing financial statements and reports makes it more complex. The government of Bangladesh doesn’t have any unique rules for preparing the financial reports. In this report we will discuss about the financial reporting and Accounting system of NGOs and hopefully, the analysis and discussion of reporting...
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...Higher Education Crisis Dr Kumud Ch. Goswami Professor &Head, Deptt. of Commerce Dibrugarh University Email ID:goswamikumudchan@yahoo.co.in Mobile No:09435390988 University education in India is having a very rich heritage. Starting from Nalanda and Takshashila to the universities established during the British rule and the universities as of today we have a very strong institutional arrangement to carry on the process of higher education not only for our citizens but also for foreign nationals. For maintaining standard of higher education in our country there have been some national level bodies like the UGC, NAAC, AICTE and over and above we have a separate ministry for it called Ministry of Human Resource Development (MHRD). As per the UGC guidelines the Indian universities are to follow democratic principle to govern a university. As such the universities are created by passing a statute in the concerned state legislative assembly in case of a state university and in case of a central university the same is done in the parliament. This statute is called respective University Act. Before passing a university act the concerned people’s representatives are supposed to examine each...
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...Installation, Operation and Maintenance Manual VLT® 6000 Series Adjustable Frequency Drive 12/01 Revision K 23-6108-00 Safety Guidelines ! DANGER 1. Rotating shafts and electrical equipment can be hazardous. Therefore, it is strongly recommended that all electrical work conform to National Electrical Code (NEC) and all local regulations. Installation, start-up and maintenance should be performed only by qualified personnel. Factory recommended procedures, included in this manual, should be followed. Always disconnect electrical power before working on the unit. 2. 3. 4. Warnings Against Unintended Start 1. Although shaft couplings or belt drives are generally not furnished by the manufacturer, rotating shafts, couplings and belts must be protected with securely mounted metal guards that are of sufficient thickness to provide protection against flying particles such as keys, bolts and coupling parts. Even when the motor is stopped, it should be considered “alive” as long as its controller is energized. Automatic circuits may start the motor at any time. Keep hands away from the output shaft until the motor has completely stopped and power is disconnected from the controller. Motor control equipment and electronic controls are connected to hazardous line voltages. When servicing drives and electronic controls, there will be exposed components at or above line potential. Extreme care should be taken to protect against shock. Stand on an insulating pad and make it a habit...
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...http://www.universalresearchjournals.org/ujmbr Copyright © 2013 Transnational Research Journals Full Length Research Paper Accounting and reporting practices of NGOs- A case study Sanjib Kumar Pakira 1 and Amalendu Bhunia 2 1 Assistant Professor, Department of Commerce , Maharaja Manindra Chandra College 2 Associate Professor, Department of Commerce , Kalyani University Accepted 26 June , 2013 The present study explores the accounting and reporting practices of NGOs in West Bengal, one of the important states of India in the eye of socio-economically deprived background for the period from 2000-01 and ending on 2009-10. NGOs in West Bengal played a major role in bringing a change in the lives of average poor rural society. Though, the vicinity wherever NGOs are not satisfactorily plasticized in terms of adoption of standard accounting practices, transparency and communication of their financial and social performance in the course of appropriate standardized reporting practices. Their failure on this front has bred a feeling of suspicion amongst the general public regarding utilization of funds and grants by NGOs. The results illustrate that meager number of the selected NGOs in West Bengal follow written in terms of automated, manual etc. accounting and reporting practices stringently. Keywords: NGOs, India, West Bengal, Accounting, Reporting, GAAP, Funds and Grants BACKGROUND AND ISSUES A Non-Government Organization is an organization that is not part...
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...WORKSHOP ON FINANCIAL MANAGEMENT AND ACCOUNTING PROCEDURES IN NGO Broad topics to be covered Financial Management Accounting & Book Keeping Tally.ERP9 useful for NGO TDS and IT FCRA Auditing Funders Requirement Role of Finance Team in NGO September 8 to 10, 2015 Venue- Samarthan Training Centre, 36, Green Avenue, Behind Sagar Campus, Kolar Road, Chuna Bhatti, Bhopal MP 462016 WORKSHOP ON FINANCIAL MANAGEMENT AND ACCOUNTING PROCEDURES IN NGOS Venue: Samarthan Training Centre, Bhopal 8th-10th September 2015 We are pleased to announce a detailed workshop on Financial Management, Accounting procedures and legal compliances applicable to an NGO. Design & content: The workshop is conducted for providing detailed training of NGOs finance staff on the financial management aspects. It shall cover accounting processes, consolidation of books and training on accounting software-Tally ERP9.Pratical assignment based learning shall be taken up in the area of legal compliances – TDS, Income Tax etc. Topics covered: Session Conducted by Day 1 Introduction and Objective of training Financial Management for NGOs- needs Process and records Planning, Budgeting, Monitoring, Procurement, Auditing Day 2 Accounting & Book Keeping Functions of Tally.ERP9 useful for NGO accounting Group work Day 3 Interface between NGO and auditor TDS- rules, payments, filing of challan & return Interaction with the...
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...Internship Report On NGO Accounting Practices in Bangladesh-A Case Study on BRAC Submitted to: Dr. Mahfuzul Hoque Professor Department of Accounting & Information Systems Faculty of Business Studies University of Dhaka Submitted by: Syeda Marzana Farha Roll No-11097 M.B.A. 11th batch Department of Accounting & Information Systems [pic] University of Dhaka CHAPTER 1 Introduction 1.1 Background The internship program is a pre-requisite for the MBA degree from the Faculty of Business Administration, University of Dhaka. In today’s world, education is the imperative tool for understand the real world and apply knowledge for betterment of the society as well as in Business Sector. From the education session the theoretical knowledge is obtained from various courses throughout the programs, which is only the half way of the subject matter. Practical knowledge has no alternative. The perfect coordination between theory and practice is of paramount importance in the context of modern business Graduates to get 12 weeks practical experience, that is Internship Program. Internship program brings student closer to the real life situation and thereby helps to launch a career with some prior experience. Internship is a step towards fulfilling this commitment by giving students an opportunity to get ready for the real world before they enter their practical...
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...world affairs. Now, there are about twelve thousand NGOs in all over the world operating in most countries. These organizations are not directly affiliated with any national government, but often have a significant Impact on the social, economy and political activity of the country or region involved. So, we can say that NGOs have become major players in the field of international and national development. But Bangladesh has largely failed to assist the poor or reduce poverty because of limited resources and planning, while NGOs have grown dramatically, but it ostensibly fails to fill this gap. There are more and bigger NGOs here than in any other country of equivalent size. Here, NGOs have mainly functioned to service the needs of the landless, usually assisted by foreign donor funding as a counterpoint to the state's efforts. Besides all these, in the field of NGO, Financial Reporting process and application of accounting is disgraceful. NGOs in Bangladesh have increasingly become subject to question and criticism from the government, political parties, intellectuals and the public in genus for misuse of funds, gender discrimination, and nepotism. Absence of proper guidelines in preparing financial statements and reports makes it more complex. The government of Bangladesh doesn’t have any unique rules for preparing the financial reports. In this report we will discuss about the financial reporting and Accounting system of NGOs and hopefully, the analysis and discussion of reporting...
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...Accounting for Ngo's in Bangladesh 1. INTRODUCTION As globalization and international trade impact societies, non-government organizations have become increasingly influential in world affairs. Now, there are about twelve thousand NGOs in all over the world operating in most countries. These organizations are not directly affiliated with any national government, but often have a significant Impact on the social, economy and political activity of the country or region involved. So, we can say that NGOs have become major players in the field of international and national development. But Bangladesh has largely failed to assist the poor or reduce poverty because of limited resources and planning, while NGOs have grown dramatically, but it ostensibly fails to fill this gap. There are more and bigger NGOs here than in any other country of equivalent size. Here, NGOs have mainly functioned to service the needs of the landless, usually assisted by foreign donor funding as a counterpoint to the state's efforts. Besides all these, in the field of NGO, Financial Reporting process and application of accounting is disgraceful. NGOs in Bangladesh have increasingly become subject to question and criticism from the government, political parties, intellectuals and the public in genus for misuse of funds, gender discrimination, and nepotism. Absence of proper guidelines in preparing financial statements and reports makes it more complex. The government of Bangladesh doesn’t...
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...Robert H. Chenhall Monash University Matthew Hall London School of Economics and Political Science David Smith Monash University Social capital The role of management control systems in NGOs Research executive summary series Volume 6 | Issue 6 Key findings: • Non-governmental organisations (NGOs) are being confronted with the competitive nature of acquiring funds and need to demonstrate that they have particular competencies to funders, while at the same time continuing to adhere to their traditional welfare or development values. • The evidence shows that developing formal management controls can help NGOs to develop networks with government departments, funding agencies, other service providers and clients. However, formal management controls also have the potential to damage the internal bonding between employees. • Developing belief systems to incorporate financial concerns, along with traditional welfare goals, would seem a useful starting point in the move towards managing in a more competitive NGO sector. Overview and objectives In recent years non-governmental organisations (NGOs) have become increasingly important in addressing humanitarian issues relating to welfare and developmental aid. NGOs face increasing pressure to demonstrate service delivery in cost efficient ways. This creates tension over delivering welfare services while operating within the constraints of cost management. The application of management control systems...
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...THE EFFECT OF BUDGETARY CONTROL ON EFFCTIVENESS OF NON GOVERNMENTAL ORGANISATIONS IN KENYA REBECCAH NYAMBURA KIMANI A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF SCIENCE FINANCE, SCHOOL OF BUSINESS, UNIVERSITY OF NAIROBI OCTOBER 2014 DECLARATION I declare that this project is my original work and has not been submitted for examination in any other university. Signed………………………………………Date…………………………………… REBECCAH NYAMBURA D63/71147/2014 This project has been submitted for examination with my approval as the university supervisor Signed………………………………………Date…………………………………… MR. MIRIE MWANGI Lecturer, Department of Finance and Accounting School of Business University of Nairobi ACKNOWLEDGEMENT I am deeply indebted to all those who in their own way contributed to successful completion of this study. First and foremost I thank the almighty God, to whom all knowledge, wisdom and power belong for sustaining me in good health, sound judgment and strength to move on and complete my master’s studies. Special appreciation goes to my supervisor for his dedication, guidance, valuable suggestion and ideas throughout the course of this project. Without his enormous support this study would not have been successful. Thanks to my family who always inspired me in every step to accomplish this study. I am eternally grateful for your love, encouragement and support in all my endeavors. DEDICATION I dedicate this project to my...
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...for which one is held responsible. Thus, accountability involves two responsibilities or duties: the responsibility to undertake certain actions (or forbear from taking action) and the responsibility to provide an account of those actions’ (Rob Gray, 1996, Accounting & Accountability). | Social Accountability of NGOs | | The priviledge of being an NGO comes with the onus of benevolent and public purpose activities. An NGO comes into existence only with the pre condition of working for charitable purposes involving public benefit without having any profit motive. There is a big difference between the social responsibilities of an NGO and a profit making corporate. A profit making commercial organization may opt for various activities, which enhances its social accountability as well as credibility. An NGO on the other hand has to work for public purposes in order to retain its legal and ethical entity.As organizations interact with a number of other institutions, groups, and individuals in a number of different ways, NGOs have multiple accountabilities. They are accountable to outside donor governments, to other funding agencies, to the people for which they work, to other NGOs which they associate and lastly NGOs must be accountable to their own internal governance. The nature of accountabilities can take several forms: financial, legal,...
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...BHP Billiton Sustainability Report Case Executive summary This short paper discusses relevant stakeholders that the multinational conglomerate company BHP Billiton encloses in their 2013 Sustainability Report. The components that are briefly touched upon is related to the various stakeholder influences, report and not reported costs (referring to the triple bottom line), but the majority of the paper primarily focuses on the environmental and social factors that BHP Billiton discloses in relation to their sustainability program, because the indicators seem to have the biggest impact on the outward-looking legitimacy of the company. We found that NGOs, local communities and unions highly affect how BHP chooses to report their operations, as these organizations/interest groups have a very close relationship to the firm; both negatively and positively. Furthermore, the paper tries to account for costs not included in BHP’s sustainability report, and it appear that some of these are cost-reporting on corruption, specific environmental issues, anticompetitive behaviour, and transportation. The paper do recognize that BHP is in fact a very active proponent of sustainability reporting, but on the other hand do question to what extent the reporting actually reflect the company’s inner workings, as BHP has been publicly criticised for this before. Question A: Influence of all possible stakeholders of BHP Billiton in terms of environmental and social factors. BHP...
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