Guidelines on Financial & Procurement Systems for Ngos/Cbos
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
93
•
•
•
•
•
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
94
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
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
93
•
•
•
•
•
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
94
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