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Accounting System and Financial Reporting of Ngos: Case Study of a Brac’s Project

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Accounting System and Financial Reporting of Ngos: Case Study of a Brac’s Project
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.

1

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, State University of Bangladesh,
3

2

A.K.M. Delwar Hossain, Asst. Professor, Faculty of Business and Social Studies, State University of Bangladesh,

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Keywords: BRAC, NGO, Accounting System, Financial Statements, Financial Report.

INTRODUCTION NGOs have become major players in the field of international and national development. Since the mid-1970s, the NGO sector in both developed and developing countries has experienced exponential growth. From 1990 to 2000 total development aid disbursed by international



References: BBS. (1998). Statistical Pocketbook of Bangladesh. Dhaka: BBS Bird, P., Morgan-Jones, P Charities Aid Foundation (CAF) (1989), Charity Trends 11th Edition, Charities Aid Foundation, Tonbridge Ebdon, R Scaling-up in Bangladesh". IDS Bulletin. Vol. 26. No. 3. pp. 4955. Hashemi, S. M. 1995. "NGO Accountability in Bangladesh: Beneficiaries, Donors and State" in Edwards, M. and Hulme, D. (eds.) Non-governmental Organizations: Performance and Accountability Beyond the Magic Bullet Montgomery, R. et al. (1996). "Credit for The Poor in Bangladesh: The BRAC Rural Development Programme and the Government Thana Resource Development and Employment Programme" in Hulme, D Report of the NAB for the Prime Minister. "There are several complaints of irregularity and corruption against the NGOs", Bhorer Kagoj. 29 July, 1992 (Daily Newspaper in Bangla). Reza, H. (1992). "Main report, NGO: New Challenge for the State and Government", Kagoj. 31 August, 1992 (Weekly Magazine in Bangla). Salamon, L. M. and Anheier, H. K. (1997). "Toward a Common Definition" in Salamon, L. M. and Anheler, H. K. (eds.). Defining The Nonprofit Sector A Crossnational Analysis. Manchester: Manchester University Press. Task-Force Report. (1992). Report of the Task-Forces on Bangladesh Development Strategies for the 1990s: Managing the Development Process White, S. (1999). "NGOs, Civil Society, and the State in Bangladesh: The Politics of Representing The Poor". Development and Change. Vol. 30. pp. 307-326. Statement of changes in Net Assets  For the financial year ended at …..200X   Particulars Notes Capital fund (temporarily restricted) Taka At July 1, 200X Net surplus for the year At June 30, 200X Net surplus for the year At June 30, 2006

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