Guidelines on Financial & Procurement Systems for Ngos/Cbos

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NATIONAL AIDS CONTROL
ORGANIZATION

Guidelines
On Financial &
Procurement Systems for
NGOs/CBOs

PART - II

MINISTRY OF HEALTH & FAMILY
WELFARE
th
9 floor, Chandralok Building,
36, Janpath, New Delhi - 110 001
10th APRIL 2007

92

GUIDELINES ON FINANCIAL & PROCUREMENT SYSTEMS FOR NGOs/CBOs

BACK GROUND
Constitution & Structure
Financial Year

STANDARDS TO BE MAINTAINED
General
Activity Based Accounting

Organisational Issues
PROCEDURES

ACCOUNTING PROCEDURES
Maintaining Accounting trail
CASH






Cash Account and Transactions
Daily Cash Balance
Withdrawal of Cash from Bank
Cash Payments
Cash Verification

ADVANCES

• Cash Advances



Settling of advances
Obtaining a refund from Accounts

OPERATING OF BANK ACCOUNTS
• Bank Account
• Authorised Signatories
• Authority to Sign

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Closing of Bank Accounts
Bank Transactions
Bank Receipts
Bank Payments
Bank Reconciliation Statement

INVOICE VALIDATION
• Information a voucher should have
• Checks to be done before passing a voucher for payment
• Supporting document for vouchers

MAINTAINING A CASH BOOK
RECORDING IN THE LEDGER
JOURNALISING
ACCOUNTING

• Receipts and Payment account

• Preparation of the Final Accounts
• Computerized accounts
PURCHASING, STOCK & INVENTORY
PURCHASING
• Identifying the supplier
• Control objectives
• General procedures
• Purchasing Capitals Assets
• Stock Records
FINANCIAL PLANNING & BUDGETING

PLANNING
Budgets & Approvals

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Budget Management
• While planning the financials
• Interest Income
REPORTS
Monthly Accounts
Internal Control Measures
Management Information Report



Financial Management Monitoring & Evaluation

Documentation
• Record Keeping – Finance

LEGAL & STATUTORY MATTERS
Income Tax – TDS:
Deeds and Agreements:
Legal Representation:
FCRA /FEMA
PROFESSIONAL TAX

95

BACK GROUND
Introduction

This manual is to serve as a ready reckoner for the Grantees of _______State AIDS Control Society as regards the internal methods and procedures to be used by Grantees for their SACS intervention.

The Objectives of this Manual



Clarify the roles and responsibilities of the different agencies involved in the Project.

96



Provide a clear description of the procedures that a partner organisation must observe in order to receive Grant Funds.



Establish minimum standards for working procedures and methods to be used by all partner organisations in the Project

ROLES AND RESPONSIBILITIES OF STAKEHOLDERS
NATIONAL AIDS CONTROL ORGANISATION (NACO) , is the nodal organisation for formulation of policy, implementation and coordination of prevention and control of HIV/AIDS in India and has the responsibility to provide financial assistance to partner organisations, through __SACS.

THE EXECUTIVE COMMITTEE constituted by the Government of State constitutes of members from Govt., __SACS, TSU, representatives of partner organizations and other secondary stakeholders. This committee is responsible for the overall governance of the __SACS and specifically, will review the aims and objectives of the __SACS, and ensure that policy guidelines for the deployment of funds are followed.. This committee chaired by the Secretary, Dept., of Health & Family Welfare, Govt. of State should meet atleast once in 90 days to ratify the Technical Support Unit’s operational plans, monitor progress and performance of the TI projects, and approve the budgets of the existing projects and for selection of new projects based on their proposals and pre-appraisal reports.

_____________ STATE AIDS CONTROL SOCIETY
The ___SACS will be ultimately responsible for decisions concerning grants to the NGOs based on the recommendation of __SACS and after ratification by the Executive Committee.
Manage disbursement of approved funds to the NGOs and ensure compliance with the grant regulations as specified in this...
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