Sunday, October 14, 2018

Account Policey



ACCOUNTS POLICY MANUAL

A  BRIEF & DESCRIPTION OF

ASSOCIATE SOCIAL IMPROVEMENT FOUNDATION (ASIF)
Police Line Road, Kumarkhali,  Pirojpur Sadar, Pirojpur, Bangladesh.
Mobile : 01770-494849  E-mail : ngoasif@gmail.com


01.       Name & Address:       Associate Social Improvement Foundation (ASIF)
                                                Police Line Road, Kumarkhali
                                    Post + Upa: Pirojpur Sadar, Dist: Pirojpur, Bangladesh.

02.       Head of Organization: Md. Nijamul Huq, Founder & Chairman

03.       Year of Established:  03-06-1997                                                   

04.       Legal Status    :           ASIF is registered with the Department of Social Services and
NGO Affairs Bureau, Government of Bangladesh bearing Registration Number’s :
a) NGO Affairs Bureau FD No- 2971/2015 and
b) DSS No-335/2000
                                                                                       
05.       Management  :-          (a) A General Committee consists of  28 members which meets
at list once a year                     
                                                   
(b) An Executive Committee consists of 07 members which is elected by the general committee for a 2 years term. EC is the supreme policy making body execution of project and program.

06.       Introduction:

Associate Social Improvement Foundation (ASIF) is a non Govt. voluntary Social welfare & Cultural and non-profitable Organization. It established in 1997 A locally based NGO located in the Southern part of Bangladesh in Pirojpur District. ASIF believes that if people from all levels within a community from organization, then that organization will continue as a community who can solve their own problems, share its disappointments and successes and begins its journey to a sustainable development. The ASIF's goal is to help people is bringing and to unit them together as to gain confidence and understanding themselves and assist them to use their knowledge and skills for their empowerment and development using their own resources. A community is a group of people who lives together in one geographical place. A village or a para a sub village could be regarded as community irrespective of ethnic group. More then one such sub- village may constitute a village. The Peoples who live in a sub-village traditional from some nature of community as they need share and to live together as to love in the community.

The Organization build up for rural poor and marginal people Specially for the rural Socio-Economic and women & child with a view to promoting the poor and marginal people It cultural status  for  the rural under aspires to build exploitation and oppression where  peace and harmony up a society free from exploitation and oppression where  peace and harmony. ASIF believes that every women & Child has a legal right to get human rights has been working in its target area for establishing human rights of the poor and marginal people especially women & Child.
                      
07.      VISSION:

Established and empowered poor and vulnerable rural and urban people, emphasising the women, girls, disables, children and orphan children in the society.

 08.      MISSION

To establish the poor and vulnerable people, emphasising the women, girls, disables, children, old women and orphan children in the society through making them aware, sheltering, providing basic needs, capable, self-reliant and self-initiators through building capacity, institutions, capital, utilization of local resources and imparting felt-need based problem solving programs involving necessary skilled, trained, experienced and qualified personnel.

9.0   Rationale for Financial Policy and Guidelines.


A)     Financial Guideline of ASIF:

Financial Management is the lifeblood of an Organization’s whole management system for survival, growth and long –term financial sustainability of that organization. It ensures the economical and efficient use of resources of the organization through safeguarding the assets and interests from losses of all kinds, including those arising fraud, irregularity and corruption and also communicating the true and reliable information, data and accounts to all the related stakeholders in a timely manner.

I may be noted that, the policy, system, process, procedures and methods of each and every financial activity in general, have been defined and explained here in to make high quality accounting practice and to trim down the chance misinterpretation that may arise in course of execution of activities covering the area of financial management. The rationale for developing this policy and guideline are delineated below:-

·      Provide a customized accounting and financial system based on generally accepted accounting principal (GAAP).

·      Improve the existing polices and procedures for further strengthening of financial Management system as a tool for fulfilling the basic financial requirements              
        
·      Supplement the book, register and statements concerning financial activities of the organization for preparing accurate and reliable financial reports on time.

·      Ensure batter degrees of financial control, transparency and accountability in day to day operations donors and other stockholders to gain their respect and confidence

·      Ensure compliance with applicable laws and regulations for long- term financial sustainability.

This policy and Guideline is basically centered on financial and accounting aspects of  ASIF to act in conformity with generally accepted accounting principal (GAAP ) standard practices and Govt. laws to avoid all sorts of legal and management  controversies, The financial and accounting aspect generally, contain Accounting and Financial Management policies, Cash and inventory Management, Table of Financial Authority, Payroll, Advance, Procurement policy, Internal  Control, Budget and Budgetary Control  Reporting etc.

B)      Accounting and Financial Management Policies.

The fundamental accounting principles of organization (ASIF) shall be as follows:

·      The accounts shall be maintained according to the double entry system of accounting.
·      The account shall be maintained under historical cost convention on a going concern basis.
·      The consolidated accounts shall be maintained under accruals basis accounting however cash basis accounting will be followed for individual project if the  Conditions of grants from the donors dictate a cash basis accounting
·      Overhead cost such as, Core staff salary, Office rent, Utilities, Office maintenance cost etc. shall be allocated by pro- rata basis as per donor fund.
·      Organization will follow International Accounting (GAAP) standard in preparing its:
·      Receipts & Payments Statement
·      Income & Expenditure Statement
·      Cash flow Statement
·      Notes of the Account
·      Depreciation should be charged on the various categories of assets under diminishing/ reducing balancing method.
·      All periodical financial report shall be prepared as per donors and NGO Affairs Bureau requirement.

     
C)     Accounting Period.

·      The Accounting period of the organization (ETU) formally from 1st July to 30th June.

·      The accounting period of the project shall be in accordance with the agreement with the donors approved by the NGO Affairs Bureau.
      
            D)     Accounting System

·      The accounts of all the funds shall be maintained separately and the basic policy in this regard shall be as follows:

·      Separate sets books and records shall be maintained for each and every fund whether funded by donors or from own sources.

·      All Income and Expenses of the respective project shall be separately                      accounted for

·      There shall be separate chart of accounts for each project for recording                      the project transactions.

·      Financial Report for each project for separately prepared.

·      Consolidated Financial statement shall be prepared under accrual basis                      accounting to reflect the accurate of affairs and results of the organizations as a who

    
          E)      Cash Section.

·         Make all payments by A/C payee Cheque or cash as per policy / rules.

·         Receive all kinds of cash or Cheque

·         Control all Bank accounts of Head office and branch office

·         Settle accounts of the outgoing staff of the organization by Cheque

·         Maintain Daily cash book and update on a daily basis.

·         Prepare the daily cash custody certificate and the joint custodians as per Management policy and must sign.

·         Prepare & preserve bank related documents daily i.e. Cheque controlling register, Cheque register etc.

F)     Account Section

·         All Income and  Expenses of the respective project shall be separately accounted for

·         Prepare the daily cash custody certificate and the joint custodians i.e.  Cashier and head of accounts must s

·         Prepare vouchers for all financial transaction of the organization.

·         Maintain all the books and documents for project and General i.e. Cash book, ledger book, Subsidiary ledger, Cheque Register, Advance register, Fixed Assets register stock register, Bank reconciliation statement etc

·         Prepare all kinds of accounts for the organization and financial report as per donor and NGO Affairs Bureau requirements

·         Coordinate with external auditors for statutory audit of the organization.

·         as per requirement of the organization

·         All kind of Accounts and financial documents and statements etc. shall be preserved in safe locker in the office premise according to the Donor and NGO Affairs Bureau requirement

·         Prepare Bank Reconciliation statement on the monthly basis

·         Updating advance register on daily basic

·         Prepare monthly financial action plan

·         Prepare Budget for the organization

·         Prepare Income and expenditure statement on the monthly basis.

·         Control all expenses according to budget

·         While preparing the chart of accounts it shall be noted that transaction are      segregated in to the following:

a)      Receipts/grants/donation
b)      Direct program cost.
c)      Personnel cost.
d)      Capital Expenditure.
e)      Program support cost/ Admin cost/( Overhead cost ).

The Organization shall maintain separate books of accounts in respect of each project fund financed by Donors. Inter project fund transfer is strictly restricted. But temporary loan can be taken from general fun and if others of Organization on temporary basis with the approval of Executive committee. No fund shall be transferred from the project account except the loan amount to any other project.

For each of the project the following books and records must be maintained:

a)      Daily controlling cash book
b)      General Ledger
c)      Subsidiary Ledger
d)      Advance register
e)      Daily Cheque controlling register
f)       Store register
g)      Salary registers
h)      Fixed assets register
       
G)     Bank Account:

·         One bank account (Master account) shall be maintained for all foreign grants  received either in foreign currency or local currency with intimation to the NGO Affairs Bureau

·          Separate bank accounts (Operational bank account) shall be operated for each donor/project after receiving the grants through master account to facilitate the project activities proficiently and successfully.

H)     Bank Signatory
           
·         Executive body of ASIF is the sole authority for opening & closing of                  official bank accounts and assigns appropriate signing authorities to operate bank accounts.

·         Incase of transfer or separation of an authorized signatory from the organization and appointment of any signatory Executive Director or his designate should inform the bank Manager in writing for erase/delete

·         The Bank accounts shall be operated through joint signature, where signature of  the Executive Director other official is man

I)       Policy and Procedure for Bank Operation.

·         The Accountant /Accounts officer shall prepare all Cheque.

·         A Check signatory must not prepare Cheque and Vouchers.

·         All Cancelled Cheque should be marked “CANCELLED” and preserved in a            separate file along with the supporting voucher.

·         The receiver of any Cheque must sign the respective counter foil.

·         Serial number will be used on the cover page of all Cheque books.

·         Advance signature in the Cheque shall not be allowed.

·         All Cheque shall be crossed as “Account payee “just after received.

·         All payments must be effected through Account Payee Cheque for Tk.5,000/= and above.

·         An acknowledgement must be obtained from the receiver for each payment.

J)       Reconciliation of Bank Account.

Bank statement shall be obtained from the bank after the end of each month and     Accountant of ASIF shall prepare a Bank Reconciliation statement. The Accounts officer/Finance Officer/ Director/Executive Director shall sign the reconciliation   statement.

K)     Maintenance of cash

·            Official money Receipts shall be issued against cash received by way of sale   proceeds, Service delivery, refund of advance etc.

·            All cash receipts are to be deposited daily into the Bank. If not possible for any valid reason, they must be deposited into the bank within the following working day without fail.

·            Payment must be made after authorization of related bill/invoice from the appropriate authorities.

·            Maximum limit of single cash payment shall be Tk. 5000/= (Five thousand).

·            Paid seal with date shall be stamped on all the supporting bills after effecting payment.

·            Revenue stamp shall be affixed on the bills as per GOB rules.

·            An accountant other than the person responsible for maintenance book shall make ledger posting.

·            The Accountant/Cashier shall maintain maximum Tk. 10,000/= cash for handling of daily cash transactions.
·            Excess of cash over the limit must be deposited into bank.
·            Surprise daily cash audit should be conducted and documented by Finance officer/Director/ Executive Director or any veiled persons of the organization.



L)      Payment of Salaries and Benefits

·            Salary and benefits of the staff shall be paid through their personal bank account (Bank be nominated by organization) by the end of each month.

·            The Administration Department shall maintain attendance record and documents of all appointments, promotion, transfers, resignations, removal from office etc. of employees and shall and forward the same to the Accounts department for preparing the salary sheets and disbursement.

·            Each employee shall sign in the prescribed column of the payroll sheet.

·            An “Account payee” Cheque and advice with net payable amount shall be sent to bank for payment to respective staff member’s bank account.

·            The Accountant shall ascertain the net amount payable to each employee after adjusting the deductions in respect of salary advance, Provident fund, income tax etc.

·            Final Payment (Resignation, or dismissal) Payment of salaries, PF, Gratuity and other benefits to an employee at the time of resignation or dismissal will be administered as per relevant clause of the personal and Admin policy of the organization.

·            Payments will be made through “Account payee” Cheque (s).

Advance may be paid against Procurement, works, training, traveling, office rent, petty expenses, and salary etc. to employees, vendor, suppliers, house owner, and service providers.

·         The maximum limit of advance may be as same as approved requisite amount for respective works.

·         All advances (except salary) must be adjusted within 15 days from the date of taking advance or 07 days after completion of the work.

·         Salary advance may be allowed to staff against current month salary under special consideration of Authority for emergency requirement like treatment, childbirth, accident, and any other reasonable purpose. Under consideration of Administrative policy.

M)    Policy for Payment of Advance

·         All accounts in respect of advance payment and their subsequent adjustments shall be made properly.

·         All advance is payable only through the application/advance requisition slip, which must be approved by the proper authority.

·         Second time advance must not be allowed to any staff prior to adjust the previous advance.

·         Advance against conveyance and transportation shall only be given against valid travel authorization.

·         Organization chef is the final authority for approving advance.

·         If the concerned persons fail to adjust the advance by submitting bill or in cash in time, the authority may take any reasonable administrative action.

N)     Limit of Advances

·         The maximum limit of work advance for staff Tk.20000/=
·         Salary advance 80% of her/his monthly total salary.
·         Provident fund advance is 80% his/her reserve amount.
·         Training advance may be allowed as same as approved requisite amount for respective training, seminar, workshop etc.

O)     Inventory Management

Inventory management is a system or process of managing the proper record keeping of Tangible assets such as furniture, fixture, equipment office supplies, stationeries, vehicle, spare parts fuel etc. It ensures efficient and effective management of receipt, issuance, balancing, accounting, and documentation, controlling, monitoring and safeguarding of the inventory materials.

P)      Types of Inventory

·         Warehoused Inventory

·         Non- Warehoused Inventory

Q) Warehoused Inventory

Office supplies, Stationeries, Project materials, equipments etc. will be treated as warehouse inventory.

Procurement of warehouse inventory will be done as per requirement of the project against approve budget following the procurement policy of the organization.



R)     Non- warehoused Inventory

·         Things and items valued more then Tk. 1000/= and a useful life of more than 1 (One ) year are generally considered as non –warehoused inventory which are:

·         Furniture, Fixture and Equipment: Table, Chair, Calculator, Computer, Printer, Photocopier, Generator, Sofa sets, File cabinet, Fan, etc. Fall in the group.

·         Vehicles: Motorcycles, Four-wheel, Bi- Cycle, Trolley, Engine boat, etc. come under this category.

S)      Inventory  Management policy.

·         ASIF shall keep sufficient and detain record of both incoming and outgoing inventory.

·         Responsibilities must be decentralized to at least two persons to maintain the inventory in the store in the area of handling and recording, Purchasing & Accounting and Approval for ensuring better internal control system.

·         The Accounts officer or any designation shall authorize the store requisition from.

·         Responsibilities for and access to the store must be clearly identified.

·         The store shall be placed in a safe space and kept under lock and key.

·         Assets identification number must be written to Furniture, Fixture and Equipment.


T)        Receiving procedures.

·         Store in- charge will receive all the store items from the suppliers after checking the quality and duly signed by the concerned authority.

·         Every receipt must accompany with documented bill or Chelan.

·         All the documents must be preserver in a file.


U)        Physical Inventory

·         The balance of physical inventory at the end of the month must be agreeing with the Stock Reregister.

·         A committee or team must conduct physical counting of inventory to reconcile with the stock register at least once a ye


V)        Definition:-

·         Any material or assets shall be considered as fixed assets if fulfils the following criteria:

·         Expected life is more than one year.

·         Cost exceeds Tk. 1000/=

·         Must generate economic benefit.

W)      Maintenance of Fixed Assets Register.

It is very crucial to preserve and up-date various data and information regarding fixed assets as they generate benefits for the organization for a longer period. Fixed assets register must be maintained containing the following data as control tools for safe guarding the fixed assets from any loss or damage and appropriate position in the financial statements.

X)        Fixed Assets Register

SLNo

Date of purchase

Name of Assets
Quantity of Assets.

Voucher number

Value of the Assets

Location

Depreciation rate

Identification Mark







































Y)        Rate of depreciation

A chart of depreciation rate is given below:

Assets category
Depreciation rate

Remarks

Land Building (1st class)
4%

Higher/lower Depreciation may be charged on the nature of Assets.
Buildings  (others )

5% to 15%

Higher/lower Depreciation may be charged on the nature of Assets.
Furniture and Fixture

10%

Higher/lower Depreciation may be charged on the nature of Assets

Office Equipments
15%

Higher/lower Depreciation may be charged on the nature of Assets
Electrical Equipment
20 to 33 %

Higher/lower Depreciation may be charged on the nature of Assets
Vehicle
20%

Higher/lower Depreciation may be charged on the nature of Assets


Z)      Procedure for Depreciation

·         Depreciation will be calculated on straight – line method for all fixed assets of the organization under this method an asset’s expected economic life is ascertained in terms of year. Thus the total cost of the assets is divided by the number of years.

·         Calculation of depreciation starts from the date of procurement or use.

·         When Sale/transfer of fixed asset is made, the related accumulated depreciation will also be removing from general ledger by debiting accumulated depreciation account and crediting fixed assets account

AA)   Physical Verification of Fixed Assets

·         Monthly or surprise physical verification of all assets must be conducted by the Director or any other responsible person for better uses and preservation and put signature on the Fixed Assets Register books.

BB)   Procurement policy
            Procurement policy shall mainly serve the following purposes:

·         Required quantity and quality of goods, Services shall be procured at the lowest total system cost, on time delivery, etc.

·         Best possible service and timely delivery by the suppliers will be guaranteed.

·         Potential suppliers and relationship with the suppliers will be developed.

·         New and alternative sources, materials and products shall be found out and             proposed.

CC)   Guiding Principal for Procurement
·            All purchase function will be carried out by the Administration Department through purchase committee.

·            The Administration Department in its central buying role is responsible for carrying out all purchase decisions involving all items and all type.

·            As a general rule –except where conditions of supply at least 03 (Three) competitive quotations most be ensure.

·            A purchase order shall be issued to the selected vendor for supplying the goods/services as per the required quality, quantity, and price and delivery time.

·            Invoices /Chelan must be checked after receiving the goods against the purchase order and the delivery note before billing approved and paid.

Procurement Limit:

Amount
Source

Quotation

Method of Procurement
Up to Tk.5,000.00

Open Market/ enlisted vendors
None

Direct purchase by the procurement Authority.

Tk.5,001.00 to 20,000.00
Open Market/ Enlisted Vendors

Two

Open market purchase by Authority, enlisted vendor, and purchase order should be issued.

Tk.20,001.00 to 1,00,000.00

Open market/ Enlisted Vendors/ Press Tender
Three


Through limited tender /press tender, For all cases purchase order will be issued.


Effective management process of an organization activity consists of two basic elements: Planning and Control. Planning denotes to budgeting, which is an important Mechanism of organization internal control. Budget acts as an instrument to provide focus on the future, performance evaluation, coordination, communication as well as a source of motivation.

Organization shall use budget as the main tool of controlling the finance and operations of the organization. Short –term budget for the organization as a whole shall be prepared for the donor and own financed projects and regular monitoring must be done to ensure that the operation of the organization are moving according to plans.

DD)   Types of Budget

·         Donor Budget:- These shall be prepared in consultation with the respective donors.

·         Budget for own fund:-These shall be prepared for projects, which will be funded from organization own resources.

EE)   Budget Monitoring
 
Close monitoring must be done for both short term and long term budget for their effectiveness. ASIF shall monitor all projects based on the budgets and take corrective measures in case of any deviations between budget and actual.

Regular and close monitoring of the organization activities is extremely required for protecting and safeguarding the interest of donors, organization and the target people.

Monitoring activities shall be undertaken for the proper utilization of funds as well as effective and efficient implementation of the various programs. Monitoring is not a one time exercise but a continuous process covering all the aspects like drawing up to program guidelines, wide circulation, selection of deserving project proposal, release of fund, project implementation etc. Organization and donors both will monitor all such project activities as a tool of control mechanism, closely and regularly all activities of the organization starting from the section process to ending of the projects.

FF)   Monitoring Policy

·         Select appropriate organizations based on their reputation for commitment to service and their ability to carry out the responsibility

·         Ensure that the benefit of the project reach the target group in time.

·         Ensure that the organization have legality, credibility, reliability and capability to deliver the services required to the beneficiaries.

·         Monitor all the activities related to the field program and financial management system of their own project, donors project on regular basis and prepare a monthly monitoring report for submitting to the Executive Director of the organization.

GG)  Monitoring Process.

·         Prepare a checklist selection the indicators to be monitored on the basis of                  called a bank reconciliation report. a bank reconciliation report.

·         Verify physical cash with the cash book balance to see weather the cash in hand is correct and kept minimum balance as per procedure.

·         Check all the vouchers with supporting bills and documents to justify the validity to the transitions.

·         Review the budget variance report with the help of approved budget and general ledger.

·         Check all the financial reports with the relevant documents to justify the accuracy of financial information.

·         Review the present implementation status in terms of MOU.

·         Verify the Advance register and crosscheck the payment and its adjustment with the related papers and documents.

·         Crosscheck the Cheque Register with the Bank Statement and Cheque counterfoil.

·         Check the Bank Reconciliation Statement with the Cashbook balance and the bank statement of the same day.

·         Prepare monitoring report as and when conducted monitoring and submit to the organization authority.

HH)  Documentation and reporting system.

ASIF will prepare, maintain and retain the following books and documents related to       each transaction of the donor and own projects. These documents must be preserved as per donor and own requirement for future auditing purpose. The actual maintaining of the account includes.

·         Receipt and check of vouchers, cash and non-cash.

·         Numbering of vouchers.

·         Possible daily and periodical report to management.
      


          II)      Books and Registers

·         Cash book: Cash book should be maintained only for cash and bank transaction under individual bank account as per requirement.

·         General and Subsidiary ledger: General and subsidiary ledger for all types of financial transaction as per Annexure must be maintained.

·         Stock register:- Stock register is maintained for consumable items.

·         Fixed Assets Register: A register for assets for a Value of Taka-1000/= and above and useful life of more than one year should be maintained. Affix identification number of all the assets by the organization.

·         Advance register: An advance registers to account of all kind of advances should be maintained by the organization.

·         Cheque Register: An Individual Cheque register must be maintained for tracking any issuance of Cheque and preserved Cheque delivery record.

·         Salary Register: A register, which brings together all information on staff salaries and deductions.



JJ)    Documents/ Reports
·         Voucher: Voucher is a form used in an internal control system to document information about and authorization of accounting transitions. So, vouchers are supporting documentation for the organizations Journal.

·         An important aspect of proper documentation of voucher is cross referencing of final  books of an organization   
  .
KK)  Type of Voucher:
·         Credit Voucher: It is prepared for each deposit in to the grantee fund bank account. All receipt, such as, cash Cheque/Demand draft, bank transfers, Interests, and other deposits should be recorded on a credit voucher (CV).

·         Debit Voucher: It is prepared for each Check   that is written for the payment of goods or service received by the grantee.  All cash disbursement from a grantee bank account, including disbursements that are the result of Cheque withdrawals, transfers and bank charges should be recorded with the accounting entry authorized on a debit voucher (DV).

·         Journal Voucher: It is a voucher that is prepared in order to record non- cash entry.

·         Bank Statement:   A bank statement is a chronological record of the financial transactions that have occurred in bank account for a specific period of time.

·         Bank reconciliation report: A compilation of the cash balance as reported by bank, and the balance noted on the organization books, for a given period, is called a bank reconciliation report.

·         Receipts & Payment statement: Receipts & Payment statement must be prepared at the end of every month. All receipt during the month are shown in the credit side and all payment are shown in the debit side of this statement.
­­­
·         Income and Expenditure Statement: Income and Expenditure account is either produced from a Trial Balance where the accruals based system of accounting is used, or it is based on a Receipts and Payments account with adjustments. It is records as a summery of all categories of income and Expenditure which belong to that year. Excess of income over expenditure where there is a surpluses, or Excess of Expenditure over income where there is a deficit.

·         Balance sheet: A accompanying Balance sheet shall prepared for the same date that the income and Expenditure account is prepared. The Excess figure of income over Expenditure/ expenditure over income is included on the balance sheet under the heading Accumulated fund.

LL)   Internal Control

ASIF shall introduce and maintain internal control procedures and techniques to ensure that objectives are achieved and standards are met. An Internal control system is the whole network of systems- Administrative, operational and financial, at each level of activity of the organization, to provide reasonable assurance that objective will be achieved, with particular reference to:

·      Effectiveness: The effectiveness of operations.

·      Value for money: The economical and efficient use of resources

·      Compliances: Compliance with applicable policies, procedures, laws and regulations

·      Fraud: The safeguarding of assets and interest from losses of all kinds including those arising from fraud, irregularity and corruption

·      Financial control: The integrity and reliability of information, accounts and data.

MM) Supervision

·      Appropriate procedures shall exist to ensure:

·      Internal checks are performed effectively

·      Procedural errors are detected through systematic checks and corrected

·      Weaknesses in controls are identified and reported to management

NN)   Cost control.
·      ASIF must consider the cost of controls in relation to the risk and exposure the cover.

·      The needs for and costs of individual control must be balanced against the wider needs for control over economy, efficiency and effectiveness.

·      Management reports shall be produced monthly or quarterly as the  organization needs financial information throughout the financial year to monitor project progress

·      Authority shall take decisions about the future management of the  organization

·      The meeting of the  Governing body can be set to coincide with the management accounts cycle so that the information is still timely

·      The following figure shows how the financial planning and financial accounting processes come together to produce management report.

·      Organization, Donor or the representative of the donor or any other person/auditor/ organization appointed by them should conduct routine auditor any time whenever felt necessary. The Auditor can check all financial and program related records and activities of all projects to the same donor during the visit.


OO)  Type of Audit.

·      External audit: The external Auditor will conduct audit as per requirement of the project/GOB. The external Audit firm shall oversee all records, books, books of accounts financial reports, related documents and other reports as per the Agreement.

·      Internal audit:  Internal audit is to ensure better internal control and operate the program activities smoothly. ASIF will conduct internal audit within the organization for transparency and accountability.



Md. Nijamul Huq
Founder & Chairman
Associate Social Improvement Foundation (ASIF)
Police Line Road, Kumarkhali, Pirojpur Sadar, Pirojpur, Bangladesh
Mobile : 01770-494849, E-mail : ngoasif@gmail.com


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