CHAPTER-I

Funds Management in NGO's

1.1 INTRODUCTION
Fund management is crucial for the success of any organization, be it private,
government or non-government. Successful enterprises watch their finances very
closely and therefore take the right decisions at the right time, ultimately leading to
success. Most businesses have a well structured finance department responsible for
looking after the accounts and finances of the company. On the other hand, NGOs
most often do not consider financial management to be a priority and lack adequate
financial knowledge. This is often characterized by poor financial planning and
adequate financial systems in place.

Very often NGOs work effortlessly towards implementing projects that cater to the
need of deprived people and in this process do not pay enough attention to financial
control. This practice makes the NGOs vulnerable to financial losses. In the absence
of proper backup plans and funds, NGOs are unable to cope with funding crisis.

NGOs should realize that managing their finances is of critical importance and they
should incorporate necessary measures towards risk management, resource
mobilization and budgeting. It is the responsibility of NGO leaders to plan their
expenditures and investments and manage funds in a way that leads to a sustainable
enterprise.

The purpose of this guide is to introduce NGOs to basic financial procedures and
systems that are required for efficient functioning of an NGO. By implementing the
procedures and systems mentioned in the guide you will be able to manage your
finances and accounts more competently.

1.2 What is Fund Management?

Fund Management is a vital activity in any organization. It is the process of planning,

organizing, controlling and monitoring financial resources with a view to achieve
organizational goals and objectives. It is an ideal practice for controlling the financial
activities of an organization such as procurement of funds, utilization of funds,
accounting, payments, risk assessment and every other thing related to money.

In other terms, Fund Management is the application of general principles of

management to the financial possessions of an enterprise. Proper management of an
organization’s finance provides quality fuel and regular service to ensure efficient
functioning. If finances are not properly dealt with an organization will face barriers
that may have severe repercussions on its growth and development.

There are several options that one can use for managing their finances, this could be
either managing them on your own, hire a full time employee, hire a part time
accountant or a third party who manages all finance related activities for you, for
example a Chartered Accountant.

Most often organizations have a dedicated department that looks after the financial
matters of the company. A finance manager is designated for handling finance and
managing its resources within an enterprise. All finance-related decisions are taken at
this position. Depending on the company profile the finance department can have
several designations to cater to the various needs of the company.

1.3 Importance of Fund Management for NGOs

As a NGO you might be thinking your primary task is to work towards social service
and not financial management. But unless your finances and funds are sorted, you
cannot achieve your objectives. The primary significance of financial planning and
management in NGOs lies in achieving its overall goals and objectives. Here are some
points indicating the importance of financial management for an NGO.

 Being accountable to the donors: Most NGOs rely completely on funding and
therefore having proper accounting systems in place becomes all the more
important. As a NGO you need to be accountable to the donor agencies and
individuals who support your cause. With proper systems in place you can
keep track of your expenditures and submit timely reports to them. This would
lead to enhanced trust between you and the donor, thereby increasing the
chances of your NGO getting a continuous support from them. With limited
funding it is important for an NGO to manage all the funds in a careful
manner. Furthermore, proper finance systems will also help the NGO maintain
financial reports and showcase their entire spending to the regulatory bodies as
per the agreed terms.
 Securing future: The present financial condition of any organization
determines its future. In a similar manner, NGOs should also opt for
sustainable use of finance. This simply means that NGOs should spend in their
present ventures, keeping in mind the future. After all, it is quite important to
have future plans and become well secured as well as future-ready.
 Eliminating fraud and theft: Malpractices and illegal deeds such as overuse of
resources, fraud and theft have become prevalent among NGOs. Firm checks
are mandatory, for minimizing such illicitness and preventing abuse of
resources. With complete financial planning, coordination and control, these
issues can be easily addressed.
 Making productive decisions: With sound financial management, NGOs can
make more productive decisions concerning resource allocation, fund raising,
fund mobilizing and other undertakings. Good decision making skill enables
right amount of funds to be invested at the right place. Funds are therefore
efficiently and optimally utilized.

 Achieving objectives: Every NGO is guided by certain policies and

procedures, which are related to its overall objectives. Each decision that is
undertaken by the authority is driven towards successful achievement of its set
goals and objectives. Without organizing finance, it will be difficult for the
organization and its employees to reach its aim and fulfill purpose of its
existence.
 Enhancing credibility: Managing finance is a matter of skills and tactics that
ideally changes from time to time. With excellent finance management, NGOs
enhance their image that enhances its value and making them more credible.
By framing well defined financial plans and policies NGOs also earn good
reputation within its community. They can also improve their current position
and look forward to gain trust, faith and reliability.
 Strengthening fundraising efforts: Most of the NGOs solely survive on its
funds. Well organized financial resources help in strengthening fundraising
 efforts by giving an overall idea about available finance and the amount of
finance that needs to be accumulated. Thus, employees get a fair idea
regarding the expected amount and plan their fundraising ventures
accordingly.

1.4 Process for developing Financial Policy of an NGO

Developing a financial policy is a matter of time, effort and resources.

Depending on the size of your NGO, the time required for developing a policy may
vary and may take anything between ten days to few months. Once the first draft of
the policy document is ready, it is it is reviewed and re-assessed to make it relevant to
NGOs overall mission and vision statement.

The policy is generally developed though a series of brainstorming sessions where

board members, senior team members discuss and formulate the policy.

Ideally, financial policies are developed in the following stages:

 Assessing the need: The very first step in making a policy is to understand its
purpose. NGOs need to address specific needs or objectives while making
financial policies. Identifying the purpose will give a strong foundation and
base to overall policy development. Therefore, it is the most significant stage
in the policy making procedure.
 Identifying key roles & responsibilities: Once you the purpose of the policy, it
is time to define important roles and responsibilities according to expertise. At
this stage, key members are designated in their respective positions.
Responsibilities are delegated to individuals, groups, sub-committees or
working group, depending on organizational structure and functioning.
Disseminating key roles also help in identifying important individuals/group,
which shall be responsible for various aspects of financial management. It also
helps in categorizing scope of financial tasks and activities and the lead person
behind it.
 Gathering Information: While developing the policy you will need information
related to financial resources, assets and other available sources of financial
data. All such data should be accumulated, analyzed and then be used for
framing initial policy content. It is best to gather whatever information is
available from the market and then classify. By doing so, it will give a
reflection of environment, factors and other features which might affect or
help in making financial policy for a Non-Governmental Organization.
 Drafting policy: While many NGOs do the initial draft in pen and papers,
others prefer doing in word doc. No matter which mode you opt, you need to
be careful while choosing the words, language, length, complexity, style and
tone. Words must be simple, without any jargons. Do not complicate the
document that it is difficult to understand and implement its clauses. For a
policy to be fair, realistic and acceptable, it is important to have a structured
approach.
 Consulting with appropriate stakeholders: Stakeholders play a major role in
formulating financial policies of NGOs. After the first draft has been prepared,
it is best to involve the stakeholders since they are the ones, mostly moved by
policies. Stakeholders can be anyone including individuals and organizations
that might positively or negatively, directly or indirectly affect or be affected
by the activities stated in the policy package. In ideal circumstances,
stakeholders and policy-makers sit together and discuss about the potential
implications of the financial policy. Based on whether the NGO decides to
 develop its internal governance or external policy positions, the appropriate
stakeholders are consulted.
 Finalizing/Approving policy: After the stakeholder consultation, there may be
certain changes in the policy document. After incorporating the changes in the
policy, the Management Committee approves the policy. While approving the
policy, the management committee discusses all the aspects of the policy with
financial heads to ensure that the policy will be fruitful and productive in the
view of achieving its objectives and meeting its purpose.
 Considering other procedures/measures: Whether for internal or external
policies, essential procedures need to be developed for providing necessary
support. These procedures are established after considering the need for clear
guidance towards implementing the policy and the responsible people behind
the execution. All the procedure-related decisions, which will further affect the
implementation of the policies, are taken at this stage.
 Implementing: Once steps have been taken the clauses of the policy are
communicated with the target audience. Proper training and guidance is
provided to the staff and volunteers to support and enhance the quality of
policy execution. Multi-national NGOs often conduct conference to spread
awareness about their financial policy.
 Monitoring & Reviewing: In order to ensure that policy gets implemented in
the best possible way, constant monitoring, reviewing and revision are done. It
is seen that monitoring systems and reporting modules are accessible and
responsive. By establishing suitable reviewing systems, policy heads can keep
a firm check on overall execution of policy and be sure about its proper
functionality. In case it is seen that the policy has loopholes in certain sections,
the same is amended and fine-tuned for best results. Monitoring and reviewing
gives an overall assessment about the ultimate benefits of framing the policy.

1.5 Structure of Fund Management Policy

All financial decisions, activities and plans are done in accordance to a set of
procedures that form the basis of the financial policy. Once the financial objectives
are confirmed, the next move is to frame policies to guide its further proceedings.
Financial management policy of an NGO is a manual that covers all the accounting
policies, procedures and systems of the organization. Primarily, there are two
purposes for framing a financial policy

 To look into proper governing of the financial transactions taking place in the
concern so that the staff can abide by the set procedures and
 To fulfill requirements of local statutory bodies and establish strong
management practices, as adopted by the NGO.

Principle of Financial Policy: While developing a financial policy it is a good

practice to incorporate the following seven principles suggested by experts. These
principles lay the foundation of an effective financial policy which would ultimately
result into a healthy organization.

1. Consistency: The financial policy should be consistent, which simply means

that it should not allow manipulation of processes and systems. All the staff
members should consistently adhere to the financial policy and there should
not offer much flexibility. A consistent policy will ensure better
accountability, transparency, better information dissemination and timely
reporting.
 2. Accountability: The financial systems should be such that it makes the
organization more accountable to its stakeholders. As an NGO all you should
account for all the resources and its expenses. For this the policy should
clearly indicate the procedures for reporting and publication of financial data.
3. Transparency: An organization should disclose all its operation and provide
necessary information to stakeholders. This means that the NGO should
provide accurate and timely information to donors, beneficiaries and all
relevant stakeholders.
4. Viability: For an NGO to be viable in the long run, the policy should set in
place a mechanism that would maintain a balance between its expenditure and
income. For any organization to be viable it is important that team leaders are
able to generate sufficient funds to continue the functioning of the NGO.
5. Integrity: All team members should follow all rules set by the financial policy.
As a founding member you should set precedence in following and adhering to
all rules.
6. Oversight: The policy should also provide oversight into the future and should
accordingly suggest measures to cope with future challenges. This would
include risk assessment; strategic planning etc.
7. Accounting standards: The policy should be such that it incorporates valid
national standards and protocols. The accounting systems should meet national
and international standards of financial accounting and recordkeeping this
would facilitate easy transactions between diverse funding strategies.

Scope of Policy & Procedures: Financial management policy throws light on the
procedures, systems and accounting policies that are prevalent in the organization.
The policy contains information about input, output, processing, control and
distribution of financial data. The accounting policies and procedures are set out to:

 Make certain that the books of accounts of the NGO are carefully prepared to
confirm its accounting principles and practices.
 Enable NGO’s authority and management heads to procure timely and
accurate financial reports on every month. This also fosters stable financial
management.
 Ensure that funds and other resources are being used in an accountable and
correct manner. Also, make sure that financial approach is in line with
accounting principles and best practices in reporting organization’s
requirements.

This document is not just necessary for you to manage your finances and accounts,
but this would also help you in complying with legal protocols. The policy will cover
the flow of financial data within the organization that would ensure that the health of
your NGO in terms of finances remains good. Having a sound financial policy in
place will certainly enable you in keeping track of the NGOs expenditure, basis which
you can plan your fundraising strategy.

Purpose of Policy & Procedures: Financial policies and objectives have the
following significant objectives:

 To provide assistance in maintenance of controls.

 To serve as a training and monitoring resource.
 To be a reference document to be used by the management, employees,
auditors and stakeholders.
  To increase accuracy and completeness of data that is posted from source
documents (invoices, journals, cashbooks, payment receipts) to the
computerized system.
 To offer accurate and credible reports so that management can exercise
effective control over organizational operations.
 To detail-out the administrative and operational procedures for input, output,
processing and distribution of information so as to ensure complete security
and privacy of files and documents.

1.6 Components of Funds Management

The most important section of a financial management policy of an NGO is the

procedures for accounting. The accounting procedures describe the methods that the
organization has adopted for maintaining daily accounts and carrying out day to day
activities. The accounting policy describes both the external and internal controls that
are in use by the organization. Accounting system of an organization should deal with
the following;

Funding Agreement: One of the most important documents for your finance and
accounts department is the funding agreement between the donor and the
organization. The agreement should typically have details related to:

 Deliverables: Clear mention of all the deliverables that are agreed between the
donor and the NGO. both quantifiable and qualitative deliverables should be
spelled out to avoid confusion at a later stage
 Budget Breakup: The agreement should clearly specify the funds allocated for
individual activities. This will help you in spending as per the allocated funds
and would reduce over-expenditure.
 Deadlines: All the deadlines should be clearly mentioned in the agreement.
 Reporting procedures: Monthly, quarterly, annual reporting procedure both for
narrative and financial dealings should be specified.
 Fund release schedule: Procedure related to the release of payments should be
clearly mentioned.
 Clear demarcation of financial and non-financial aid.

Bank Accounts & Transaction: In most countries, registered NGOs have a bank
account and prefer to deal with their finance through banking facilities and services.
The NGO financial policy should clearly state the various procedures to be followed
to ensure consistency in all transactions.

 Bank Accounts: Bank accounts for all project funds are typically opened in
nationally recognized banks or those banks which are authorized by the central
bank of the country. Depending on the laws related to your country, you can
open a bank account for your registered NGO.
 Authorized Signatories: Depending on the resolution of your board, you can
wither have a single signatory or two-signatories for your bank transactions.
Make sure your policy clearly spells out who is the authorized signatory for all
baking instruments.
 Manage Bank Transactions: Bank receipts are acknowledged by delivering an
official receipt. The date of receipt, its accounting as well as the date of
 depositing the cheque-draft to the bank account are the same. In the policy
also mention who will be responsible for managing all bank transactions.

Cash Handling & Transaction: Cash payments are firmly documented by NGOs in
their financial management policy. Small amount of cash payments are quite common
on daily basis, therefore you should have procedures to deal with such transactions.

 Cash Account & Transactions: Cash transactions are resorted in case of small
expenses and when/where banking services are not available. Refer to your
country laws related to cash payments and procedures set by law. In certain
countries, there is a certain limit, exceeding which no claims can be settled
through cash payments and these should be by account payee cheques only.
 Daily Cash Balance: Closing balance cash denomination are entered under the
Daily Cash Balance section and signed by the accountant. This register is
usually maintained right from the beginning of the financial year.
 Withdrawing Cash from Banks: When there is a need to withdraw cash from
banks, make sure that you use a Cash Withdrawal Form/Money Indent. This
form should be duly filled up and signed by the staff, involved in handling
cash. Try to avoid cash transactions as much as possible as they do not leave
any accounting trail and hence can be questioned at a later date. If there is no
other option left then follow proper procedure so that the transaction can be
recorded.
 Cash Payments: For making cash payments, most organizations use a payment
voucher. All the vouchers are printed and have an individual serial number.
When a cash payment is to be made, the voucher is approved by the
responsible authority. The payee also signs the voucher on receiving the
payment. This voucher is then filled and recorded.
 Cash Verification: It is mandatory to verify the cash balance at the end of the
month. The competent authority ensures that the cash account record has been
signed by the person handling cash and the person handling finance. In case of
any discrepancy noticed during this period, the physical verification is
recorded and reported in written document to the concerned person
immediately.

Controls to be exercised: Some of the important controls which are in practice

include:

 No access to third parties towards the safe or accountant. Cash is only paid to
third parties in front office.
 Only one person is designated to handle cash and is solely responsible for it.
 A fixed time period is specified for cash disbursements. Emergency payments
can only be released during other times.
 Strict observance of minimum and maximum cash limits.
 Cash receipts/payments accounting is done on day-to-day basis.

Petty Cash: Petty cash is a system that is used for tracking small purchases that aren’t
suitable for check or credit card payments. Petty cash is maintained based on imprest
System (a form of financial accounting system). The base characteristic of an imprest
system is that a fixed amount is reserved, which after a certain period of time or when
circumstances require, because money was spent, it will be replenished. Clearly
specify a limit of imprest level in your policy. The accountant is the one and only
designated person for handling petty cash. Actual cash is checked on spot and then
confirmed by the finance manager. The person in charge of funds will reimburse for
any incongruity. All petty cash requests are duly signed by authorized
supervisor/finance manager on pre-numbered voucher.

Cash book maintenance: Cash book is a financial journal that contains all cash
receipts and payments, including bank deposits and withdrawals. The cashbook is an
important bookkeeping document for any organization. It is a book of entry which is
prepared following a voucher for a particular transaction. Maintaining a cashbook
helps in keeping a record of all transactions in which cash/bank receipts are involved.
There are various ways of maintaining a single column cashbook or a double column
cashbook. In the former case, it also acts as a bankbook whereas in the latter, a
bankbook should be maintained separately.

 Cashbook is devoid of any alteration or cutting. Any correction fluid is never

used in cashbooks. In case of any mistakes, it is corrected by passing an entry
of rectification.
 Cashbooks are regularly written to maintain transactions, up to date. Cash
balances are also inked up, on daily basis.
 The competent authority tallies, checks and signs the cashbook, on monthly
basis.

Stock & Inventory Management: Since NGOs receive good amount of funding,
execute various activities and expand their organization, they need to purchase goods
and service. NGOs always organize their purchase plans and incorporate the same in
its financial management policy.

 Stock & Inventory Management: Maintaining a proper Stock and Inventory

list prevents excess purchase and reduces wastage. One should keep a register
to keep a tab on Stock. Additionally for large organizations following the 5S
principles can be of extreme help. The five steps of 5S, in Japanese, are Seiri,
Seiton, Seiso, Seiketsu, and Shitsuke, which are translated into English as
Sort, Straighten, Shine, Standardize, and Sustain. The implementation of these
principles reduces inefficiency, abnormality, waste or unsafe condition in your
office. The activities performed in these steps, in short, are described as
follows: Marking of re-inventory level for stock can help in timely
replenishment to prevent brake in work. The Stock and Inventory registers
should be audited and monitored periodically, preferable every fortnight.

 Purchasing: It includes identifying prospective needs for goods and services,

identifying costs to cover needs for those products, identifying potential
suppliers and procuring at least three estimates and finally getting into
negotiation about trading terms and conditions. After mutual agreement on
payment terms, orders are placed. Goods/services that had been ordered are
received and paid. After complete payment, accountings and archiving
expenditures are prepared.
  Identifying the supplier: The most potential suppliers are identified by their
credibility to supply the requisites on time, cost-effectiveness of the
commodities and quality of goods supplied. Local and well known suppliers
are more reliable to work with. While selecting a supplier, past performance,
reputation and availability are more emphasized. Also, it is ensured that the
supplier must comply with the rules and regulations, as stated by the
Government. It is advisable to take quotes from 3 to 4 suppliers before
finalizing one based on quote and reliability.

 Maintaining Stock Register: Stock Register keeps record of all goods that are
purchased and stored. Usually, an enclosed format is maintained while
entering details in the stock register. The stock register is preserved at the
office where the goods are purchased or stored centrally. With arrival of fresh
stock, the register needs to be updated with accurate quantity and other data.
All requisitions taking place in the NGO must be numbered in duplicate. Two
copies are to be maintained: one for the central and the duplicate for the
accounts. The records are entered on FIFO (first in first out) basis. The stock
registrar is designated for managing all stock records and its aligned functions.

1.7 Fund Management Staff & Responsibilities

Fund Management in NGO is undertaken by its governing body, board members and
finance staff.

Governing Body: The body comprises of members from different committees of the
organization such as finance, public relations and project. Being the ultimate authority
in any Non-Governmental Organization, the governing body plays a lead role in
financial department. According to the nature and state of the concern, it is also
known as Council or Board of Trustees or Board of Directors or Governing/Executive
Board.

Board of Members: The governing body’s plans and policies give a proper direction
to the board members. In an NGO, board members are at times volunteers (non-salary
people) who are ultimately responsible for the financial aspects of the organization.
Although they might not control accounting methods or prepare financial reports by
themselves, however they must ensure that everything is undertaken in proper order.
They cannot refrain from their duties, during their association with the NGO and can
only do so by resigning from the government body. The board comprise of honorary
officers, who are appointed or elected to certain positions on the board. The main
responsibility is to supervise implementations of all board decisions and sign legal
undertakings. It will be advisable to take individuals who have experience in
Financial Management such as Ex-Bankers, Accountants, Finance Managers among
others on board.

Financial Manager: The finance manager is the head of the finance committee in an
NGO. Apart from supervisory functions and monitoring responsibilities, the finance
manager exercises the following duties:

 Ensuring that all transactions are properly accounted for and the financial
systems are maintained, under all procedures and controls.
  Managing bank accounts and overseeing money transfers between head-
offices, country offices and field offices.
 Signing cheques, authorizing payrolls and other payments.
 Assisting and guiding the board by providing relevant financial information
during budgeting, accounts to donors and other decision-making activities.
The manager does so, as and when requested.

Financial Assistant: The finance manager is guided and assisted by the financial
assistant. The main responsibility is to report to the manager and implement work, as
and when directed. The assistant role should be preparing books of account, preparing
cash memos, cheques and bills. He is the in putter for the transactions for the finance
manager and first level of financial control and management.

Admin Manager: Where finance manager and assistant have specific duties, the
admin manager has three-fold responsibilities: Finance aspects, HR and
administration and logistics. The Admin has to take overview and control of the
hiring, inventories, stocks, and all other non specific activities. Since it is a senior
position it is advisable to have an experienced person on the job.

Admin/Cash Assistant: The admin manager is assisted by the admin/cash assistant.

The cash assistant to admin manager is similar to that of finance assistant to finance
manager, only that the functionalities are different. The job of finance assistants
majorly surrounds around financial resources, aspects and matters, whereas the job of
admin assistant spreads across various spectrum of duties, finance being one.

In large NGOs, all the above posts are exercised by different persons. In small and
medium NGOs, the financial managers and assistants take the overall responsibility.
In this case, the role of finance manager also includes that of admin manager. In a
similar manner, the job of financial assistant also includes that of admin assistant.
Irrespective of its size, there is a governing body and board across all NGOs.

To sum up, financial management is one of the most significant functions of any
organization, including NGOs. Financial control is at the heart of financial
management. A well planned and competent financial control ensures proper use of
money, financially protected members and safe assets. Financial decisions also effect
on overall management and activities of NGOs. With proficient and tactical finance
strategies with changing time and circumstances, Non-Governmental Organizations
can successfully manage their financial resources and ensure steady growth and
development within the concern. With sound financial planning, organizing,
coordinating, executing and finally reviewing; these organizations can skyrocket their
funds and achieve its objectives in the near future.

The generally accepted goal of for-profit financial management is maximising

shareholder wealth through increasing the share price of the company. Typically, this
involves maximising risk-adjusted profits through increasing revenues or reducing
costs, or both . In the context of an NPO which does not have shareholders and which
has as its goal delivering services to those in need, rather than making profits, the
standard model of financial management is clearly not appropriate. Krug and
Weinberg (2004: 325), therefore, describe the goal of financial management for NPOs
as ensuring that revenues can be maintained while delivering essential purposes.
Copeland and Smith (1978) suggest that NPOs that are donor funded (which describes
most of the NPOs surveyed in this study) have the primary objective of ‘donor utility
maximisation’, namely to ensure that the resources provided by the donor are utilised
in the most efficient manner possible. Zietlow et al. (2007: 12), in a study of 288
faith-based organisations in the United States between 1992 and 1994, find that 38.5%
state that ‘financial break-even’ is their primary financial objective with 20.5%
identifying ‘maximising net revenues’ as their main financial objective. They further
note that “…as a secondary objective respondents indicated a concern for cost
minimization (11.8%), avoiding financial risk (8.6%), and maximising net donations
(6.9%)”. It can thus be seen that the goal of financial management for an NPO,
namely survival or the minimisation of deficits rather than maximising revenue,
differs significantly from a for-profit organization (Krug and Weinberg, 2004: 334).
This fundamental difference is likely also to result in differences in the practice of
financial management in an NPO setting.

1.8 The Scope of Fund Management for NPOs

Financial management is generally divided into three broad categories, namely capital
structure, capital budgeting and short-term financial management (also referred to as
working capital management). An NPO, however, typically does not generate its own
income and relies on external sources for its funding, making debt, with its
commitment to monthly interest repayments, extremely risky and hence undesirable
(C. Masters, CEO of C Masters Development Services (CMDS), personal
communication, 10 June 2010). In addition, an NPO does not have shareholders and
hence its capital structure does not include a substantial equity component and so the
relevance of capital structure theory for NPOs is limited. Unlike capital structure,
capital budgeting can “…have a dramatic impact on the character of an NPO for many
years since they often involve the commitment of extensive resources over a long
period of time” (Gaertner, 1982: 46). This paper, however, seeks to examine the
impact of the global financial recession on NPOs’ financial viability, which is a
function of their ability to meet short-term financial commitments. As a result this
study focuses specifically on short-term financial management.

1.10 Short-Term Fund Management for NPOs

Short-term financial management involves decisions that affect current assets and
liabilities, usually involving cash inflows and outflows occurring within the next
twelve months, and comprises cash management, inventory management and
accounts receivable management. For most NPOs the issues of inventory management
and accounts receivable management are likely to be less significant but the
forecasting/budgeting of future cash requirements and management of cash is critical.
1.11 Budgeting and Forecasting
Budgeting is seen as one of the most challenging areas of managing an organisation’s
finances . One of the chief advantages of budgeting for an NPO is that if planned and
executed properly, the likelihood of the NPO being economically sustainable is
improved. In the 1970s, it was common practice to advocate zero-base budgeting
(ZBB), which requires managers to justify their entire budgets each year with no base
level of spending being assumed, but it was found to be extremely time consuming
and is seldom used. The incremental approach treats existing programmes as
preapproved, subject only to changes in financial resources allocated, which means
that it is less time consuming and is also felt to be less threatening to managers of
programmes. note that with regards to the well-established NPOs in their study, the
use of budgeting and forecasting in particular was generally poor.
 OBJECTIVE OF THE STUDY

The objective of the study is to gather practical knowledge on Financial Management

. This course of internship gave me a chance to relate the theoretical knowledge with
the practical experience.

The followings are the objectives for internship in the YP foundation.

 Comprehending the operations of an NGO.

 Identify the Role of society in the protection of human rights.

 To know about funding in financial management in NGO's.

 To understand the practical knowledge of financial management.

 REVIEW OF LITRATURE

Introduction to Literature Review

This chapter presented a review of theory as well as literature of the study in the
research area under discussion. This chapter also seemed to identify the research gap
that existed between what other researchers had done and what this study aimed to
tackle as well as capture the relationship of the research variables.

Theoretical Review

The study is anchored by Resource Mobilization Theory and Fraud Theory also
known as Differential Association Theory which is related to financial accountability
and financial performance.

Empirical Review

There have been prior studies conducted which aimed at examining the effects of
financial accountability on the performance of non-governmental organizations in
Kenya. This study fits into the framework of these studies and contributes to extant
literature. For the purposes of this study, it is useful to categorize them in relation to
their concept, scope, approach and findings. Koornhof and Du Plessis (2000) took an
empirical approach to assessing the usefulness of the annual report as a mechanism of
accountability. Koornhof and Du Plessis (2000) analysed the annual report of Chief
Constable for 22 years and found out that for the annual report to be the principal
means by which an authority is held to account, it must contain improved measures of
performance. Earlier in 1991, Kanyinga and Mitullah (2007) surveyed three user
groups to find out what they wanted in financial reports. Their study showed that the
inclusion of performance information (five or ten year trend) was desirable and would
shed more light on the performance of NGO sector organizations. Moyes and Hasan
(1996) also echoed this view when they used the 14 content analysis technique to
analyse 18 government agencies annual report. Their study revealed that the
disclosure for accountability in terms of evidence of reporting to stakeholders on
performance purposes appeared to be lacking. The above results were also supported
by Ones and Viswesvaran (1996) when they verified that performance information
apart from financial statements was of more importance. Saucier and Goldberg (1996)
studied the annual reports of Italian local governments by using a checklist developed
on the basis of literature on disclosure and accountability indices. Later, Ugrin and
Odom (2010) extended their study to include federal government and 10 analysed the
annual report of 56 government departments using the content analysis technique and
a disclosure index. Their study revealed that there were lower levels of mandatory
disclosures than voluntary. Similarly, Mack and Ryan (2007) also studied local
government departments but extended their study to include government-owned
corporations. In their study, a survey instrument was used to find out the actual users
of annual report and their information needs. They found out that the annual report
was not the most important source of information. Tooley and Hooks (2009) analysed
the annual report of 37 schools in Queensland. In their study, they found that the
annual report though useful, had an overemphasized role as a source of information in
discharging accountability. They also found that accountability may be discharged
more effectively through other media other than the annual report since respondents
relied on alternative media such as newsletters and other forms of discussions and
interviews. While the above related research on the role and usefulness of the annual
report in discharging accountability has been international in focus, there has been
little evidence from Non-Governmental Organisations (NGOs) in developed and
developing countries especially those in the Sub-Saharan region.

Literature Summary

Most of the existing studies, with few exceptions (Ryan and Ng 2000; Mack and Ryan
2007) focused on single sources of data. This study however adopts a triangulated
approach by analyzing the information in the annual reports and semi structured
questionnaires. These help to confirm the findings resulting from the annual report
and also reveal insights which the analysis could not show and vice versa. This study
addresses the above mentioned gaps through an examination of financial
accountability and financial performance of NGOs.
 RESEARCH METHODOLOGY

A research design is a framework or blueprint for conducting the research project. It

specifies the details of the procedures necessary for obtaining the information needed
to structure and/or solve research problem. The research design used in this project is
Descriptive research design.

Sources of Data Collection:

Primary Data: Data which are collected fresh and for the first time and thus happens
to be original in character. Primary data are gathered for specific purpose.
Secondary data: Data that collected from primary data i.e., they are already exit
somewhere.

Type of Research:

Descriptive type research has used to complete the project. This research is base on
fact finding enquires and the variables are totally independent and uncontrollable.

Sampling Technique:

Random sampling is used for research project. I have given equal weighted to my all
respondent and chose them randomly without any biased like gender, age, income
culture.

Sample size:-

30 respondents has selected as sample size for research.

Data presentation technique and tools:

 Pie chart has used for representation the data of questionnaire.

 Column chart has used for representation the data of questionnaire
 LIMITATIONS

As no person is perfect in this world, In the same way no study can be considered as
fully reliable at one glance. There are a number of uncontrollable factors acting as
limitations in conducting the study. Some of such limitations encountered by me in
our study are –Busy schedule of the consumers were problem while doing the survey.

 Because of time constraint, I was not able to collect much information.

 Social requirements changes time to time, Due to this sometime no accurate

information is provided by individual.

 Balance sheet Statements Change every accounting year.

 CHAPTER-II
Profile of the Organization

THE YP FOUNDATION

The foundations of TYPF were laid with the realization that across urban, rural, socio-
economic and cultural differences, young people in different phases of their lives have
a strong capacity to understand and engage with issues that matter to them.
The Youth Parliament was begun by Ishita as a meeting space for young people to
discuss ideas and learn about issues that they were passionate about a safe, open and
non-judgmental space. This group decided on the issues that they wanted to focus on,
conducted their own research, met with relevant stakeholders and in turn trained the
first cohort of 20 young volunteers to think critically about social justice issues. This
led to the creation of projects around these issues which were then implemented in
various kinds of communities in Delhi.
Over time, The Youth Parliament evolved into The YP Foundation, and developed
into a larger organization working across a wider geography with more well-defined
priority areas, increasingly focusing on subjects that were perceived to be the most
critical for young people. TYPF expanded to other states, rural areas and more diverse
groups of young people including those from marginalized and low income
backgrounds. TYPF’s history thus laid the foundation for the issues that they now
work on as well as the methodologies that they use.

Manak Matiyani, is the Executive Director at The YP Foundation. Before joining

TYPF, Manak worked with Commutiny – The Youth Collective, The Magic Lantern
Foundation, the Tata Institute of Social Sciences and has done independent
consultancies with national and international organisations including Pravah,
Breakthrough, UNHCR, UNFPA, and Girls Count. Manak is a feminist, queer
activist and has over 8 years of experience as a development professional. His work is
aimed as facilitating youth leadership of social change, with a focus on issues of
sexuality, gender based violence, sexual and reproductive health and rights and youth
development.
The YP Foundation (TYPF) is a youth run and led organization that supports and
enables young people to create programmes and influence policies in the areas of
gender, sexuality, health, education, the arts & governance.
The organization promotes, protects and advances young people’s human rights by
building leadership, and strengthening youth led initiatives and movements. Founded
in 2002, TYPF has worked directly with 5,000 young people to set up over 200
projects in India over the last 8 years, reaching out to 300,000 adolescents and young
people between 3-28 years of age.
Role & Responsibilities

Interns work cross programs that are currently working in TYPF. They get exposure
to community interventions and have the opportunity to conceptualize, implement and
evaluate community interventions in primarily low-resource localities in urban and
peri-urban Delhi. A large chunk of their work will involve strengthening TYPF's
communications. Interns get to hold together diverse pieces of moving work and get
to hang out with a fun bunch of young people who take their lunches very seriously.

THE YP FOUNDATION OFFERS

 volunteers

They annually recruit 50-80 enthusiastic young people based in the National
Capital Region, Lucknow, Patna, and Benaras who are interested in engaging
in social impact as volunteers for a year-long volunteer programme. Our
volunteers are usually between the ages of 18 and 25 and come from diverse
backgrounds with a united interested in creating social change. Volunteers
may be university students, from the communities where the programmes
work, or even young professionals.

If you are unable to commit to a year-long engagement with us, you could
consider applying for an internship with us.

Volunteers play a critical role in running our social impact programmes on

ground. We work hard to ensure a collaborative and engaging learn ing
environment for all our volunteers to create social change.

Over the course of 1 year, volunteers can expect to:

 Develop their knowledge, understanding and research/writing skills on

issues of gender, sexuality, health, urbanization, rights and
governance and the relevance of these issues in their daily lives.
 Conduct workshops with adolescents from low resource backgrounds
on issues of gender and sexuality, life skills and health & hygiene,
mental health, or digital media.
 Design, evaluate and lead short term social action projects with
TYPF’s mentorship and support.
 Participate in policy platforms at the state and national level to
advocate for youth issues to other Civil Society Organizations and
Government agencies.
  Intern

TYPF offers internship opportunities throughout the year to anyone looking for
work experience in the areas that we focus on. Interns work across TYPF's
programmes, or work on core skills such as . Interns get exposure to community
interventions and have the opportunity to conceptualize, implement and evaluate
community interventions in primarily low-resource localities in urban and peri-
urban Delhi.

Our internship programme is different from our year -long volunteering

position in terms of length, scope of work, and intensity of engagement with
TYPF as an organization. As an intern, you get to work across programmes
and also on over-arching organizational responsibilities like communications,
fund-raising, and administrative duties (yes, this means indexing our library,
which is its own kind of fun, really). Interns are also encouraged to find their
own niche within TYPF and are given the space to run their own projects
within our programmes and organizational work. An example of this is the
Women's History Month project in March 2017 across our social media
portals. Most importantly, our interns get to hang out with a fun bunch of
young people who take their lunches very seriously!

A few parameters for joining TYPF as an intern are:

 You must be able to commit a minimum of 3 months to TYPF

 Because our programmes are community-based and run across various
sites in the city, you must be open to flexible working hours and be
able to arrange for your travel across the city.
 Prior engagement with issues of gender, sexuality, education and
governance would be a plus, but is not mandatory.
 Internships are usually paid after the first month

History of the YP Foundation

The Youth Parliament (TYPF) was founded in 2002 by Ishita Chaudhry when
she was 15 years old. It was co-created by young people originally as The
Children's Parliament in 2002, in the aftermath of the Godhra Riots that took
place in Gujarat, with the hope of bringing young people together from
across the country to build a stronger understanding of Hu man Rights as well
as an opportunity to work together and discover leadership skills on social
issues they were passionate about through a safe, open and non -judgemental
platform.

With leadership and guidance from Arshiya Sethi, the thought partnership of
Bunker Roy of The Barefoot College in Tilonia and support from what
became one of TYPF's longtime partners, the India Habitat Center, the
Children's Parliament was formally launched on July 26, 2002. An in-depth
youth-led dialogue with 300 urban school students was led by 3 inspiring
teenagers, Ram Kiran, Devki and Ram Niwas, who traveled from the
Children's Parliament from the Night Schools of The Barefoot College,
discussing what young people felt about growing up in India, models of
youth engagement in governance, and how collective action could be taken
for young people to work together to understand diversity and develop
critical thinking that enabled civic engagement.

What was launched as a monthly discussion forum at the IHC grew quickly
in a year into The Youth Parliament, a movement that grew from a team of
30 volunteers into a core team of 150 young people. TYPF's first 5 years
were spent working out of Ishita's family's home, in a garage where young
people self-organized into teams to conduct research, resource mobilization,
training and undertook community programmes to address social justice
issues. At the end of each year, projects would be 'handed over' to a new
cohort of volunteers, and a core group of 30 young people comprised staff,
transitioning leadership cycles every 2-4 years.

In 2007, with the help of UNICEF, The Youth Parliament registered as The
YP Foundation, a youth-led trust (whose deed and mandate was collectively
drafted by 150 staff and peer educators at the time!), with the vi sion of
enabling young people to be empowered to they could access critical
information and services that enabled their rights, with a focus on advancing
the rights of young women and girls. As TYPF's capacities, resources and
learning improved, it expanded to working across 18 states in India, in rural
areas and more diverse groups of young people including those from
marginalized and low income backgrounds.

The organization's flagship programmes have grown into core areas of work
over the years, in Advocacy and Policy, Governance (The Right to
Information Programme), Advancing the Independent Arts (Silhouette),
Sexual and Reproductive Health and Rights (The Facilitative Branch/ Know
Your Body, Know Your Rights), Mental Health (VOICES), Life Skills and
Youth Leadership (Blending Spectrum) and Digital Media and Learning (The
Butterfly Project). TYPF also undertook special projects on understanding
Gender and Sexuality (Kaivalya), addressing Conflict and Peacebuilding
(The Bridge) and Relief and Rehabilitation (What Now?).

TYPF's history thus laid the foundations for the issues we now work on, as
well as the methodologies that we use. More than 650 people have worked as
staff and peer educators in the organization since 2002. With continued
commitment to our values, the beauty of YP's journey is in how each
generation of young people uniquely interpret how best to carry forward this
vision and define for themselves the approach that represents their ideas,
critical thinking and creativity.
A Note From Founder of the YP Foundation

When the Godhra Riots happened, the realization that it could take an event
as horrific as the victimization of an entire community of people to move us
into doing something more than to sit, pontificate and post ure in the comfort
of our own homes stunned me. This wasn’t first time we had known or
witnessed riots; we weren’t the first generation of young people in the world
to the address the aftermath that violence, stigma, prejudice and
discrimination leave. Yet we joined the ranks of those who have remained
silent to these injustices over the years, whose silence has often been
misconstrued as submission, acceptance or disinterest. Many of us chose to
disengage, without really ever considering the alternatives a s a choice.

As a young woman, I realized that I was powerless and that I was not alone.
Would this be the legacy that we left for future generations to come? That
my generation stands and watches silently as people lose their lives? Our
curiosity in wanting to challenge the education we had received within the
four walls of a classroom and applying it outside to life, began a journey that
has brought all of us to where we are today. That year, that month, was the
beginning of a series of sparks that lit a fire in me, that changed irrevocably,
the direction of where my life was headed. I began to challenge the points of
intersectionality in my multiple identities, the labels I had adopted at birth
and had never questioned since: my gender, ethnicity, identity, privilege,
nationality, sexuality and religion.

I live and work in a society where the complexities of patriarchy, religion,

culture and differing economic and social lifestyles have a strong role in
their authority, liberating or constricting the role that young people can play
in society. This increasingly defines and limits the framework in which
young people can explore, challenge and identify potential within
themselves. Personally, it’s really challenging doing this work as a young
woman at times, where both parts are hard – being a young person and being
a woman. India is such a strongly male dominated leadership space, I’ve
become used to being in rooms with meetings of mostly men.

When I began this work, people in my community told me at every sta ge ,

that change wasn’t possible and that this wasn’t my path. Women in own
family and community told me, as a girl to be ‘careful’, as women
entrepreneurs weren’t considered ‘good marriage material.’ They didn’t make
good wives. I was told that I should focus on growing up, finding a husband
and having children. Living in a tremendously strong patriarchal society, my
parents and my brother had to defend my decision to many people, but they
stood by me and their strength gave me the unusual freedom to chall enge the
societal boundaries of being a girl.

I’ve learnt over the years though, to not accept such statements silently and
to actively challenge them. As a young feminist, I am part of a much larger
movement that works towards the empowerment of young peo ple, with a
specific emphasis on the rights of women and girls. Finding my identity in
feminism and the courage to be myself is a big part of what motivates me.
I wanted to build an enabling environment that provided opportunities for
young people to access information and services that enable and promote
their rights. I wanted to provide support to ‘non mainstream’ issues as well,
such as artist rights. The arts have never traditionally been considered to be
part of the ‘development paradigm’ and as a musi cian who came to the
Human Rights world of work; I felt strongly that the arts and artist rights are
a cause in of themselves and not simply a means to an end. When we
structured TYPF, we ensured that we had a division dedicated to look at the
need to train artists to build livelihoods and provide them with platforms to
exhibit and explore cutting edge work within the arts, with specific regard to
the absence of an integrated and diverse music education and arts programme
in India.

Earlier this year, I received a request from an 18 year-old young woman, as I

very often do, to find a safe and affordable health clinic that could provide
her with the safe abortion services she needed. She called me at 3am, her
parents had asked her to leave their home, as they were embarrassed of an
unwanted pregnancy. It took us half the night to find her the services and
support she needed and I will never forget how upset, scared and worried she
was.

Young people, including young, unmarried girls, do not have access to

critical support systems that address their health but rather are judged and
stigmatized. Furthermore, the majority of young boys and men in our
generation are brought up to associate and internalize ideas of masculinity
associated with patriarchy and violence. Within our homes I felt, we weren’t
challenging these values.

I grew up with very little information on my sexuality, body or right to

health, despite being a privileged young person. No one ever taught me that
women have the right to experience pleasure. We are always taught about our
sexuality and bodies with fear, as if it is a disease and almost never, as a
right that can be celebrated.

This must change. If young people are trusted, given accurate information
about their bodies and encouraged to make informed decisions, they can be
empowered to protect themselves and support their peers.

It is in this work, that I have recognized the growing challenges and the need
to create sustainable dialogues and bridges between people. As a young
person growing up in an urban city like Delhi, I was curious to understand
why young people did not take the steps necessary and stand up for issues
they felt strongly about. Was it systematic indifference, cynicism, a lack of
responsibility or simply not knowing how to get things done how were
restricting movements and communities of young people from ‘taking the
plunge’ and standing up for issues they felt deeply about or working with one
another. I realized that it wasn’t as simple as that.

There are people who care, but don’t have the resources they need to be able
to stand up and speak out. We are a factionalized generation of young people
who aren’t speaking to each other as much as we should. For many of us,
there isn’t as much acceptance of identity and diversity, or c hallenging power
or privilege, as there should be. As we’ve discovered, there are multiple
movements of work happening across the world and within our own country,
that most of us would like to be connected to, but aren’t.

There is a time when everyone realizes that they need to stand up for what
they believe in. It is about recognizing what ignites passion within you, in a
manner that nothing else does, and for me that is why everything continues.

For young people across the world today, global and local a pproaches to
addressing issues increasingly need to be synchronized; there is a need for
stronger understanding and ability to negotiate the complexities of
differences, which requires us to work together.

This begins by creating platforms and accessing shared knowledge where

people can learn more about each other and build a common language, where
we can agree to disagree and still provide equity, respect and equality. I
refuse to believe that in my lifetime, this is a utopian concept.

VISION OF THE YP FOUNDATION

"A world where all young people's human rights are realised and they are
recognised as equal stakeholders and transformative leaders. "

MISSION OF THE YP FOUNDATION

" policies and legitimise youth leadership of social change. "To develop young
people's feminist and rights-based leadership, ensure their meaningful
participation in creating programmes and policies and legitimise youth
leadership of social change.

AIM OF THE YP FOUNDATION

Aim of the yp foundation to strengthen young people’s engagement with policy-

making at local, national, regional and international levels through a number of
programmes.

 Following are Different types of programmes:

1)BLENDING SPECTRUM

Blending Spectrum literally means "people from different walks coming

together to realise a common ground with one another". It is a community-
based programme that engages and trains young people as volunteers and
peer educators to work with children and adolescents between the ages of 5
to 17 years living in Sunder Nagar Nursery (SNN), an unauthorized colony
situated inside Nizamuddin Basti, Delhi.
Blending Spectrum has been working with a community comprising 150
families in SNN since 2008. Migrants from smaller towns and rural areas,
largely from North and East India, inhabit this area. Though SNN is a part of
the larger Nizamuddin Basti in Central Delhi, it is located slightly away from
the rest of the area, thus isolating the community living there from the
governmental and non-governmental interventions in place in Nizamuddin
Basti. There is also a divide between the different sections of the community
based on socio-economic factors, including income, origin and occupation. In
this context, the Blending Spectrum programme aims to do two things:

1. Build enabling environments for the children of SNN to develop life

skills, challenge gender inequality, reduce levels of violence &
discrimination, and develop practices that promote personal hygiene in
their communities through innovative lesson plans using mediums like
discussion, theatre, art, dance and film.
2. Work to promote access to vocational skill building and training
opportunities for young people
Impact of the programme

 Since 2008, the programme has worked with 1300 children, 250
parents and 158 peer educators. Every year, the programme engages
up to 20 young volunteers and 12-15 community leaders to work with
150-200 children.
 Between 2008 and 2012, the total percentage of out -of-school children
in SNN reduced from 95% to 18.5%.

 The Safety Audit 2016: led by youth leaders in 3 urban slum

communities of Delhi, it identified the existing gaps in the services
and physical infrastructure using a smartphone app. The initiative has
also helped facilitate dialogue between the community members and
government representatives.
 Masti Ka Din is an annual event organised under the Blending
Spectrum programme, which celebrates the year-long journey of the
volunteers. In 2017, this event marked 15 years of TYPF and was
attended by over 300 people.
 Meri Suraksha, Mera Haq: led by 16 youth leaders in SNN and the
Blending Spectrum Team, the 2016 Safety Audit was revisited in
2017. The project was carried out over 3 weeks in the SNN and
Nizamuddin Basti area, where they documented and mapped out 'safe'
and 'unsafe' areas using cameras. The project concluded with an
exhibition of the Audit Team’s findings, which they used to advocate
with community members and with the local authorities for safer
public spaces and improved sanitation. See pictures here.
 Samvidhan Live- The Jagrik Project: In October 2016, TYPF partnered
with Com-Mutiny - The Youth Collective to introduce and implement
the Jagrik Project, which aims to build young people's awareness of
their fundamental rights and duties as citizens of Ind ia. The project
engaged young people between the ages of 12 and 25 over 8 weeks to
undertake a series of community and self-reflective tasks associated
with different Fundamental Rights and Duties.
 In 2015-16, the programme trained 12 peer educators who further
conducted 40 training sessions on Life Skills. A total of 150 children
and adolescents between 5-17 years (98 girls and 52 boys) were
sensitised on the issues of gender-based discrimination, violence and
health and hygiene.
2)Know your body, know your right

The Know Your Body Know Your Rights (KYBKYR) programme works to
empower adolescents and youth across NCR, Bihar and Uttar Pradesh by
delivering stigma-free and rights-affirming information on issues of health,
sexuality and human rights, and enables them to advocate for their well -
being at the personal, community, state and national levels. It is based on the
belief that adolescents and youth across urban, rural, socio -economic and
cultural differences have a strong capacity to und erstand and engage with
issues that directly impact them. But, formal educational or community
environments often do not recognize this. Thus young people have limited
access to comprehensive information on issues of health, gender and Human
Rights, which especially disempowers young women and girls who are
marginalised on account of their gender over and above differences in caste,
class and age.

The KYBKYR programme design is directly informed by our outreach

among marginalised adolescents and youth. Its implementation is youth-led
with strong collaborations across grassroots non -governmental organisations,
alongside focused engagement with local and national stakeholders from
health and education sectors, including government officers, healthca re
providers, counselors, frontline health workers, teachers, etc. 75% of our
youth leaders, as well as our outreach, are young women, as the programme
inherently promotes women empowerment.

Impact of the pogramme

KYBKYR demonstrates that youth-centered and led programming, working

in partnership with NGOs, policy makers, young people, and community-
level engagement has immense potential to transform the lives of adolescents
and youth and empowers them to become agents of social change.
  Since 2014, 200 adolescents and youth have provided comprehensive
Sexuality Education to over 2500 adolescents and youth across the 3
states.
 An external evaluation of the programme conducted in 2015 has
revealed that the programme has achieved an increased level of
leadership, self-confidence and negotiation skills amongst young
women and girls. A majority of the participants recognise how the
stigma attached to SRHR issues adversely impacts their bodily
integrity and rights.
 Across the 5 districts in Bihar as well as in Lucknow, staff and youth
advocates alike, have consciously strengthened their engagement with
the network of stakeholders who govern young people’s access to
sexual and reproductive health services and rights (police, legal and
public health systems). As a consequence, young people in the
programme not only have increased SRH information, they also hold a
strong rights-based perspective, and see themselves as rights holders.
One example of this is Shanti, a field-level mobiliser who, along with
fellow advocates, was able to reach out timely help to a 12 year old
rape survivor, thereby averting unsafe childbirth as well as an
unreported crime.
 KYBKYR youth leaders have undertaken mystery-client social audits
to assess the youth-friendliness of sexual and reproductive health
service delivery in 36 public, private and non-governmental health
centres across Lucknow and NCR. Key findings included lack of
privacy, confidentiality, insensitive hospital staff and judgmental
attitudes of practitioners. The data from these audits were used in
multi-stakeholder district-level and state-level consultations to
facilitate constructive dialogue between youth leaders and frontline
health workers, doctors and government and non -government
representatives on these issues.

3) The Butterfly project

The Butterfly Project works to equip young Dalit and Muslim women from
marginalised communities in Rajasthan and NCR to use digital media to
address issues of identity, human rights, reproductive rights, discrimination,
and women's and youth rights. The program increases their access to
information on Sexual and Reproductive Health and develops their leadership
skills to articulate, raise awareness of and advocate for equity, gender
equality and freedom from gender-based violence with their families,
community leaders and key stakeholders. To this end, The Butterfly Project
works to empower young girls and women from Muslim and Dalit
backgrounds as Young Women Leaders (YWLs) to:

 Create awareness among stakeholders about the need to ensure gender

equality and eliminate gender-based violence through interactive
public events in each community.
 Create safe spaces for young girls to voice their concerns, clarify
information, access skill-building opportunities, and develop
leadership abilities to mobilize and work with their peers.
 Develop and disseminate key information in the community on the
need to address early and forced marriage by advocating for
Comprehensive Sexuality Education.
Impact of the pogramme

 August 2018: At Youth Insight, young women leaders from Pali and
Bhilwara were present to participate in a national level forum and
share their experience of leadership building and engage with p olicy
makers as well as young people from TYPF’s other programmes.

 August 2018: A policy engagement workshop was held with 42 young

women leaders from Pali and Bhilwara in Udaipur, to increase their
understanding of community and policy level advocacy p latforms and
helped them to build understanding on human rights framework
including constitutional rights.
 June 2018: TYPF began a direct engagement with young women
leaders in Sundar Nagri in Delhi, after the Delhi -based partnership
was discontinued. A centre was opened in Sunder Nagri for the young
women who had been part of the programme for the previous year.
 May-June 2018: Two district-level dialogues were held in
collaboration with implementing partners, Federation for Education
and Development (Doosra Dashak) in Pali and Jatan Sansthan in
Bhilwara, Rajasthan. The dialogue was designed and facilitated by
young women leaders who had been part of the The Butterfly Project
over 2 years in both districts in Rajasthan. 130 young women leaders
engaged with key individuals such as the Sub Divisional Magistrate,
Block Development officer, Block Education officer, AWC supervisor,
AWC workers and Sathins under the Meena Programme in schools in
Rajasthan.
  December 2017 - June 2018: Young women leaders carried out
sessions on gender and gender based violence, early, forced and child
marriage, growing up, puberty and menstruation in Pali and Bhilwara
with 160 peers in their community.
 November 2017 to March 2018: A scoping study was done to identify
civil society organizations and programmes that work on advancing
women’s SRHR and livelihood opportunities. The study objective was
to map key players who facilitate the collectivization of young women
towards improving their SRHR and/or livelihoods opportunities in
Rajasthan. The scoping study provided a better understanding of the
landscape of policies and government and non-government
programmes that focus on young women’s empowerment.
 February 2018: TYPF facilitated a training with 32 young women
leaders in Udaipur. The training focused on issues related to gender,
gender roles, sexuality, identities and impact of patriarchy and
identities on a young person’s life. Even though the training managed
to challenge assumptions of the participants around gender and
sexuality, caste and religion emerged as two domains around which a
change in attitudes seems challenging.
 January 2018: Young women leaders, along with Sewa Bharat staff
organized a Youth Connect festival to reach out to 90 peers. 35 Young
women leaders led the event and conducted 6 parallel sessions on
menstruation, gender, sexuality, body anatomy and contraception.
 January 2018, TYPF conducted a 5-day long Digital Media Training
Workshop with Point of View involving participants engaged in this
programme from both states. Through this workshop, the participants
learned to create stories, build characters, shoot and edit videos, and
produce sound. Using these media, they told stories inspired by their
own experiences of gender discrimination, lack of mobility and early
marriage. This workshop provided the participants with knowledge
and skills that would help them use audio and video media to bring
about social change in their communities.

4)Udaan

With 15.69 million adolescents, Rajasthan contributes to about 22.9% of the

adolescent population of India. Against this backdrop, the NFHS 4 reports
that 35.4% women (20-24 years) reported being married before the age of 18.
Furthermore, 77.4% of never-married women responded saying they had
never sought help or spoken about violence they had experienced. A study by
Population Council revealed that 63.8% girls had been forced into entering
their first sexual relationships by male partners.

While adolescent Sexual and Reproductive Health is meant to be addressed

under the Rashtriya Kishor Swasthya Karyakram (RKSK), the status of its
implementation is at disparate levels across the country. The lack of political
will due to the fear of societal backlash are further challenges to advancing
adolescent sexual and reproductive health. These issues contribute to the
dearth of information and provision of ARSH services in the state of
Rajasthan.
Udaan uses the Human-Centred Design approach to supplement government
programmes in addressing the sexual and reproductive health and rights of
adolescents in India. The evidence generated through the pilot phase of the
project will be used to engage with the government for integration of the
final model within the RKSK. Furthermore, this evidence will bolster rights -
based efforts to typical public health programming.

The programme uses participatory research to converse with a wide range of

stakeholders in the adolescent health ecosystem - adolescents, parents,
service providers, teachers, among others. The programme also engaged with
stakeholders from districts of Rajasthan to understand how topographic and
demographic diversity can impact health-related attitudes and behaviours of
communities in Rajasthan. This repository of data and information is an
invaluable resource and can be used as a case study to inform future ASRH
programming efforts in Rajasthan.

Impact of the programme

 Formative research phase of the project began in mid-December 2018

with an orientation training of the design team on the use of the
research tools. Over the course of the next month, intensive on -ground
research was conducted with multiple stakeholders who are a part of
the adolescent health ecosystem in Dhaulpur.
 Validation of Hypotheses was conducted in two diverse districts of
Rajasthan, Udaipur and Barmer, as well as by secondary data research
in January to February 2018.
 March 2018: An ideation workshop was organized to brainstorm
intervention ideas for increasing the knowledge, attitude, and practices
of unmarried adolescents in Dhaulpur. The workshop participations
consisted of professionals from different organisations having work
experience including but not limited to Sexual and Reproductive
Health. A structured ideation process was used to come up with a
bucket list of potential interventions catered to the findings from
Dhaulpur. The bucket list was filtered down to about 20 ideas, broadly
categorised as:
o Ujala 2.0: Making adolescent friendly health clinics and other
RKSK services more accessible for adolescents.
o Adolescents +: Creating safe spaces for adolescents and
integrating SRH information into broader and more relevant
narratives for their lives.
o Collective Action: Leveraging community spaces, schools, and
peers to increase buy-in from community members and generate
more conversations around SRH
 March 2018: The research findings and potential intervention ideas
were presented to Rajasthan RKSK and NHM offici als in a state-level
consultation.
  April to June 2018: interventions models were refined and further
developed as prototypes. Prototyping was a cyclic process involving
co-creation of prototypes with adolescents and health service
providers, collection of feedback from community, and integration of
feedback in subsequent iterations to ensure that the final product is
tailored to consumer needs. During live-prototyping, The YP
foundation managed and evaluated the in-school and community
engagement strategies of prototyping.
 The near-final strategies were run on ground and evaluated on a
number of parameters to inform the yearlong future pilot phase that
was kicked off in September 2018.

5)Mardon Wali Baat

The ‘Mardon Wali Baat’ programme works on college campuses and urban
community settings in the Lucknow district of Uttar Pradesh to create youth -
led dialogues and actions to question patriarchal notions, norms of
masculinity, and gender based violence. It was launched in 2016 with the
goal of working on these issues specifically with young men and boys in the
context of Lucknow, where violence rooted in asserting the hegemonic
position of men is normalised and treated as an every-day phenomenon.

Under Mardon Wali Baat, young people, especially young men, undergo
intensive training sessions that prepare them to take up on -ground action to
reach out to adolescents and young people in community settings and
colleges. Here, they conduct events and enable dialogues to examine and
question gender stereotypes, particularly those related to notions of
masculinity. This programme also uses digital media to profile and highlight
community perceptions and creates on-ground and online dialogues to
question and change oppressive norms of masculinity.
Impact of the programme

 The programme has directly reached out to around 2000 young people
and adolescents on-ground, and an audience of around 10,000 people
online.
 In 2016, 13 young men were trained over 7 days in Lucknow by
TYPF, with support from The Asia Foundation. The participants in
these trainings were equipped with knowledge on power and
patriarchy, gender and inequality, and sexual harassment. The
trainings served as a safe space for the participants to share personal
narratives and examine their ideas of masculinity, sex, sexuality, and
violence.
 Through social action projects, the participants reached out to more
than 500 young people in educational institutions to generate
awareness on gender-based violence, women's safety, human rights,
and issues of masculinity.
 Digital media products such as posters and a podcast were developed
in collaboration with Agents of Ishq. These were used during the
campaigns and were also made available to the public.
 TYPF also created an action resource kit which collated existing
resources that address masculinity and violence.

6)Young Feminists for Change

This project attempts to provide a bridge between organization-led

programmatic interventions and movement-building spaces. Begun in 2017,
this project puts feminist leadership into practice: over the course of three
years, 1 young woman within TYPF works with 10 young women from 10
other organisations across India to build their perspectives and analyses of
feminist leadership, in theory and practice. Additionally, she also works with
10 other young women in Delhi to together to addre ss one common
challenge: public harassment. Using an arts-based method, these young
women use forum theatre and dance movement therapy to build their
leadership and begin conversation within their community on these issues.

.
BLOG OF THE YP FOUNDATION

Women's Her-story Month

March 8th is celebrated annually as International Women’s Day, with March

being celebrated as ‘Women's History Month’. In an effort to expand the
scope and audience of these celebrations, through March -April 2017, TYPF
sought to highlight key moments in the history of women’s rights through 3
projects – a collection of essays, an interview series, and a crowd -sourced
visual media project. The focus of these projects was women, their
challenges, their fight, their history and their present. The aim was push our
audience, our participants and ourselves to think outside the confines of
traditional feminist constructs, remembering that there is nothing too
challenging, nothing too controversial, and nothing too thought provok ing.

History is also her-story

The first project to be launched was a series of articles, “A Woman’s Right in

Indian History” that highlighted moments across women’s history in India.
This was a product of our internship programme and was led by Shannon
Mathew. These moments were chosen for their significance in their historical
as well as contemporary context, i.e. for their ability to provide a lens into
the past while being an entry point into more current matters. The series
started off with an account of an important watershed moment in women’s
history, the anti-rape mobilizations of 1980 and the subsequent birth of
national-level women’s organizations. Turning the clock back by a few
decades, Shannon revisited the history of sexual and reproductive rights
health and discovered the Indian roots of the International Planned
Parenthood Federation (IPPF), an international body that protects and
promotes SRHR. The progressive image painted by this article was
challenged by the next one which detailed the Surrogacy Bill of 2016 and
whether it was a step in the right direction, a hit and miss, or simply another
way of policing women’s bodies. The issue of policing women’s bodies has
been at the heart of every women’s movement, and recounting the revolt of
the Shanar Women critiqued the ‘protection of modesty and honour’
argument to reveal a more deeply rooted power-play tactic.

The second project, “Movers and Shakers: In Conversation with

History”, was a series of interviews with individuals who have made
invaluable contributions to the women movement in India. Through Movers
and Shakers, we wanted to highlight key moments in women’s history as
seen through the eyes of someone who witnessed it unfold. Our conversations
gave us a glimpse into their lives, ex periences and how they found
themselves to be intertwined with the history of their sisters. Chayanika
Shah provided us with an introspective account of the history of autonomous
women’s rights movements in India; Manasi Pradhan spoke to TYPF about
making history in Orissa as a pioneer of women’s rights.

Our final project, "Iconic Images: A History of Women's Rights", was a

globally sourced online project which visually recognized moments across
women's history movements around the globe. Through Iconic Images we
wanted to re-introduce these moments to the public memory, be it
highlighting lesser known aspects of well-known incidents or bringing to the
limelight unknown events which are no less significant than their famous
counterparts. Contributors were urged to submit images that could offer
previously unheard of perspectives, or be the starting point of a discussion
that forces the mind to re-evaluate and question the accepted narrative. We
received entries from the countries all over the world, from the Phillipines
and Pakistan to Ukraine and France. Submissions ranged from detailing the
continent-wide women's protest across South America on International
Women's Day 2016, to protests against Pass Laws in South Africa in
1956. Another took us back to the Stonewall Riots in 1960's USA through the
work of transgender activist Marsha Johnson, to the first transgender model
in Pakistan in 2016. These images were significant in capturing the essence
of a struggle, and they allow us a glimpse into a moment that was either
unforgettable or one that faded into the pages of history. But what they
remind us is that it is important to recognize that no matter how small or
large an event may seem, where we stand now is inextricably linked to each
and one of these struggles.

Women’s History Month is a celebration of everything women have endured,

fought for and won. But more than a celebration, it is a reminder of our past;
a reminder of the insurmountable odds that were conquered by our sisters and
predecessors. It is due to their resistance and resilience that we have reached
a point where we can put up a united front against the conservative push back
on women’s right. And while fighting this external battle, to be able to
introspect, critique ourselves and fine-tune the movement, is a huge victory
in itself.

The Dalit History and the Dalit Present

What led to you starting the Dalit history month collective?

We started this off sometime in late ’14, when we were trying to articulate
what it would look like to have Dalit History Month. Our objective was to
just have an all-in-one place of Dalit history, which didn’t exist at that time.
There were bits and pieces of our history, most of it authored by non -dalits.
The primary objective was to have this one repository where we could go to
have an account of our history, and to create a historical timeline of various
events from across India and elsewhere.

We wanted bring out what’s been happening to us as a community, in terms

of violence, discrimination, oppression and marginalization. But at the same
time, we also wanted to highlight the work of our leaders and movements,
and really bring to focus the resistance and resilience of our people. We’re
talking about a 2000-year old oppression. But the fact that I am here talking
to you about it, being very well aware of my identity as a Dalit, speaks a lot
to the resilience of my forefathers and foremothers. We wanted to bring that
out - that it is not just a story of victimhood, but of resilience.

In the long term, we aspired to have a product of participatory scholarship,

which is to have in place a body of work that’s not just a product of
a savarnalooking inside our community and writing about us, but a body of
work that is authored by ourselves, and not just written by someone who’s
supposed to be a scholar or an intellectual. We’ve had such examples all the
time, where you have white researchers, savarna researchers writing about
us. We still have people getting into research institutes and leveraging ou r
experiences to make a research career out of it. That is something we wanted
to challenge. We wanted to have a body of work that is completely Dalit
owned and authored.

Did you ever imagine that this project would gain such traction, to the point
where we now recognize April as Dalit history month?

Yes and no. Did we know it would catch fire like this? No. Did we know it
had enough substance to catch fire? Absolutely. There are a number of
opportunities that exist within our community, and it’s only a mat ter of us
coming together; it’s only a matter of us finding the network, time, effort and
funding. We didn’t quite have fame in mind, because that’s not our objective
anyway. Our objective was to basically get people to talk about Dalit
scholarship and the Dalit movement in a different light. Because, as you
might be aware, every time you bring up the question of caste in this so -
called modern, urban, corporate or academic circles, what gets spoken about
is reservation. That’s one of the stories we wanted t o break.

Dalit History Month is a participatory radical history project. "Our goal is to

share the contributions to history from Dalits around the world. We believe
in the power of our stories to change the savarna narrative of our experience
as one solely of atrocity into one that is of our own making. Our story may
have begun in violence but we continue forward by emphasizing our
assertion and resistance."

Coming to a more personal note, being a woman in India has its fair share of
problems. Adding to that the layer of being a Dalit individual, how does one
grapple with what comes with these two identities?

I cannot speak for all of my women. It goes without saying that I am not a
representative of all of my Dalit sisters. But I can tell you how it feels for me
given the privileges I have and given the challenges I’ve faced. For me, it’s
been layered journey. Initially, I hadn’t even come to terms with my Dalit
identity; it was only in college that I heard the word Dalit in that sense. I’m
from a Christian family, the kind where there was not much politicization. I
had very limited knowledge of what my people did for the movement. All I
knew at that age was that I’m a feminist. So I guess I had come to terms with
that aspect much earlier than my Dalit identity.

Much later, I realized the complexity of being both a Dalit and a woman.
Particularly, when we talk about sexual violence, one cannot just talk about it
the way we did when Nirbhaya happened. Being a woman, you obviously feel
very enraged, and your heart goes out to the victim and her family. But at the
same time you realize that the response Nirbhaya received is a lot more than
your sisters typically do. Every time it happens to them – and it is that
frequent - we never see the kind of response that it demands; we never see
the kind of traction the way we do for non-Dalit women. One part of me
wants to ask myself, “Why would you want to compare something as heinous
as that?” But another major part of me thinks, “If I don’t talk about it at this
point, when do I get to talk about it?” How do I get my non -
Dalit savarna women to ally with me, and fight for my sisters as well?
“Much later, I realized the complexity of being both a Dalit and a woman.”
To a large extent, I am very disappointed with the feminist movement in
India. I really do hope that they don’t see this just as a matter of
intersectionality; that they don’t see this as a matter of the women’s
movement needing to accommodate Dalit women, but to really call out their
own caste privilege and start looking at this the other way around. It’s urgent
that you start working with and for Dalit women. And it is under that
umbrella that you need to be talking about other crimes.

Having said that, I’m also appreciative of the likes of a few publishing
houses and movements that are vocal about our issues. And I hope it doesn’t
just stop with talking about it or having a few articles, but really looking into
the questions of caste a lot more deeply and introspectively, and that is the
only way we can have a more stable ally-ship.

In terms of where you place yourself, would you think you have more of a
space within the women’s or the Dalit movement? Or do you think the Dalit
women’s movement is in itself running parallel to these two?

I think there are two answers to this question. One, I think the Dalit women’s
movement is stable, and it has all the resources, love and bonding to run on
its own and be independent. But like any other movement - like any other
struggle - there needs to be allies. And these allies will come from
everywhere. It could come from the women’s movement, the larger Dalit
movement, the Roma Sisters in Europe, the black women’s movement in the
US, and the First Nations women’s movement in Canada. So as far as ally-
ship is concerned, anyone and everyone committed to the cause is welcome
to be an ally, and should be an ally.

Secondly, I without a doubt place myself within the Dalit movement. It will
always be my people. And within my people only can I talk about my sisters.
Unless savarna women are willing to talk about their caste privilege, I don’t
see myself collaborating with them.

Do you think that is something that will be addressed soon? Or is it

something that will be glossed over or brushed under the carpet of
intersectionality?
Right now, I feel like there a few [who address it], but there are also
instances where you see people trying to compete with us for ‘visibility’, and
I think that’s really sad. Because unless you see issue s in India through the
lens of caste, we’re getting nowhere. We can’t have intersectionality just for
the sake of it. We have to look at everything through the lens of caste,
because it is why we are where we are. So I think I’m in a place where I
choose to be inspired by people who are beginning to be vocal but I’m also
kind of disappointed by what’s happening on the other side. Hopefully in the
long run, the ones who are brushing it under the carpet will be fewer, and
people like us will be more in number. That’s my hope. And the fact that I
have hope speaks to the fact that it is possible.
“We wanted to bring that out - that it is not just a story of victimhood, but of
resilience.”

OVERVIEW OF ACCOUNTING
AND PROCEDURES MANUAL

The “Finance Manual" provides the essential information and brief step-by-step
procedures to be followed for managing and controlling, Financial transactions. This
document is intended to guide the officials directly involved in management as well
as in finance and other departments. It also intends to help in understanding the
financial management and accounting processes and to achieve uniformity in
processes followed in the Organization.
Any deviations from adhering to the procedures contained in this Manual by TYPF
staff should be in writing and approved by the Executive Director.
For the preparation of this manual a ‘Risk Based’ approach has been followed. In a
risk based approach areas of potential risks are identified and policies and procedures
are established to cover the identified tasks.
As circumstances and requirements change the manual should be reviewed and
updated annually to take into account potential new donor regulations, tax law
regulations, as well as new developments in the accountancy profession and changes
in the organization.

Importance of Financial Accounting

The ability to provide accurate, complete and timely financial information enables
compliance with the rules and regulations of donor and other partners reporting
requirements, as well as adhering to generally accepted accounting principles
(GAAP). This information also assist management to plan and coordinate their
programming affectively.
The guidance in this Manual should be used in conjunction with other policies and
procedures specified from respective donors.

Scope

This Manual should be used across the organization to guide the handling of finance
functions. It provides guidance on all financial procedures and reporting requirements.
The usefulness of any manual is in its applicability to provide guidance. As the
transactions of TYPF evolve, diverse and increase, this Manual must remain relevant,
therefore it is critical that management. ANNUALLY review and revise this manual
as needed.
Agreement Signing Authorities

The Trustees or the Executive Director should sign all agreements.

Approach

This Manual has been prepared using ‘Risk Based Approach’ and accordingly
different risks were identified with respect to the coverage areas and necessary
checks, documentation and controls have been placed to mitigate the risks identified.
The Manual has been designed using the step by step procedure to give a clear
understanding to the user on the thought process behind designing of this manual and
to clearly express the management philosophy of strengthening processes, procedures
and internal controls.

The Manual has been developed in following steps:

Identification of Identification of Identifying the

the 'Coverage the 'Risks' for Controls and
each coverage Documentation
Areas'
area required to
mitigate the
identified risks.

Designing the
Process and
documentation
requirements
considering the
controls required to
mitigate defined
risks.
 There should be assessment of risk across the money cycle from Receipt to Payment
and reporting of the expenditures. Given below is the money cycle for TYPF and we
have identified risks for each step in the cycle.

Donor

Reporting TYPF Receipt of Funds

Monitoring & Evaluation Utilization of Funds

Identification of Risks

Receipt of Funds Utilization of Funds Monitoring and

Evaluation
1. Improper Segregation of duties. 1. Failure to identify any
1. Improper
2. Improper design of ‘Authority Matrix’ non compliance with
Segregation of
3. Paying for Goods and Services not established
Donor Funds and
received. procedures.
Organization Fund.
4. Diversion of Money in Personal 2. Failure to identify any
2. Improper
Account. non compliance with
Accounting of
5. Paying for Expenditure in contravention donor guidelines.
Receipt of Funds.
of donor agreement. 3. Failure to identify any
3. Failure to Comply
6. Incurring Expenditure in contravention fraud.
with Statutory
of the Budgetary Requirements. 4. Audit Objection
Compliances.
7. Unauthorized use of cheques and
payable orders.
8. Improper Accounting.
 9. Payment of Fictitious and inflated
Salaries
10. Failure to comply with statutory
compliances.
11. Payment without meeting adequate
documentation requirements.
12. False creation of or unauthorized
updates to accounting records to allow
the unauthorized payment of funds.
13. Falsification and duplication of invoices
in order to generate a false payment.
Reporting
5. Mismatch between
Accounting records
and Project reports
6. Failure to identify any
non compliance with
donor guidelines.
7. Audit Objection

2 Overview of the Finance & Accounting Department

2.1 Financial Records

Financial records include all source documents (budgets , invoices , vouchers , bank
statements , credit advice , journals , cheques , receipts and any other documents
which serve as evidence of financial transactions).
2.2 General Responsibilities

Staff is also required to report any deviations from these standards to the Executive
Director.
The Executive Director has overall authority and authority and oversight of all funds.

2.3 Finance and Accounting Responsibilities

2.3.1 Finance / Operations Manager

Primary functions

Ensure that the financial system runs properly in order to process financial
information and generate accurate reports.
Ensure that financial policies , procedures and donor compliance requirements are
adhered to set standards.
Ensure that internal and external financial reports are prepared and disseminated
within deadlines.
Controlling and advising for utilisation of funds as per donor guideline.
Finalisation of accounts & coordination with auditor.
Salary prepration & payment process.

2.3.2 Bookkeeper / Admin Assitant

Primary Functions

Ensure that payment voucher is complete and accurate before processing.

Ensure that budget codes are in agreement with program Managers' approvals .
Ensure that vendors/Suppliers, Staff and sub- recipients' cheques are prepared and
paid on time.
Prepare cash receipt voucher for cash collected and deposited to bank account.
Ensure that copy of cash receipt and bank deposit must be attached with the Cash
Receipt voucher.
Work closely with Adminstrative officer on physical counting of assets, and other
consumable stores.
Manage the asset register.

2.4 Internal controls

Internal accounting control consists of the TYPF's plan , procedures and records to
assure the reliability of financial reporting as well as safeguard the assets of the
organization.
An effective internal control structure includes a series of checks-and-balances
required for the appropriate recording and authorization of transactions and ensures
that access to assets is limited to authorized personnel . Each transaction should be
divided into component tasks completed by different staff members in order to
increase the likelihood of detecting unintentional errors or misappropriation of assets.
As an example , the person who approves vouchers for payment should not prepare or
sign cheques.
The following chart includes other examples of the of appropriate segregation of
duties:

Finance Officer Who: Should Not:

Prepares vouchers Approve Vouchers
Prepares Cheques Sign Cheques
Has access to Blank Cheques Post Payments
Receives Cash Perform the physical
Security of Assets Inventory of Assets
Prepares Bank Deposits Reconcile Bank Accounts
Prepares payroll Distributes payroll payments

The four basic tests of completeness , validity , accuracy and maintenance should be
consistently applied all transactions.
Close supervision by the Finance/Operations Manager and oversight by the Executive
Director are vital to ensure that control systems are working and that weakness are
identified and corrected .

3.0 Financial Reporting

3.1 Overview

Financial reports are summaries of the information found in financial records for a
given time period or as of a certain date. Financial reports also provide information on
the financial status of a project including project income/costs, cash flows and trail
balance. Financial reports may also include sufficient background information to
support the data included in reports.

3.2 Financial Transactions

For the purposes of this Manual, a financial transaction is any occurrence ,which
results in an inflow/outflow of funds or has any effect on the organization's assets and
liabilities.
All financial transactions will be accounted for accurately and properly. No
undisclosed or unrecorded funds or assets will be established or maintained for any
purpose.
All costs incurred should be allocable to projects i.e. its activities or benefits can be
distributed reasonably to that specific project.
Transactions processed using the respective source documents must be stamped
processed/paid to avoid duplication.
TYPF uses mercantile accounting system to recognize income and expenditures.
3.3 Procedures for Receiving Funds

3.3.1 Objectives of a Receipting System

The objective of a receipting system is to ensure that all funds donated/collected are
fully accounted for in financial records and reported to the donors.

3.3.2 Main strategies to Achieve the Objectives

In order to ensure that funds are fully accounted for in financial records, the
following stratgies should be applied:
(a) Effective control of accounting documents .
(b) Cash disbursements must not be made from cash received. All cash received must
be banked and supported by an official bank deposit slip.
(c) Strictly all receipts issued should be recorded and analyzed in the cash books for
onward posting to the ledgers at the end of each month.

3.4 Procedures for Payments

3.4.1 Objectives of Payment Procedures

The objectives of a good payment procedure is to ensure that disbursement of

money is and can be proved to be legitimate and transparent and in accordance with
the budget.

correctly in the cashbook. Each disbursement will be supported by

Accounts Staff should ensure that the details from the source documents are processed
correctly in the cashbook. Each disbursement will be supported by :

(a) Purchase requisition

(b) Purchase order
(c) Voucher authorizing payment signed by authorized signatories
(d) Supporting vendor's invoice
(e) A receiving report and
(f) Other independent source materials.
3. 4. 2 Strategies to Achieve a Good Payment Procedure

The following strategies will be applied to achieve this objective.

(a)All payments should be authorized by the Executive Director. When an invoice is

received ,it should be matched with the purchased order and checked for calculations
and depending on the correctness, a payment voucher will be raised. The Finance
Manager should ensure that all procedures and checks have been followed and all
supporting documents attached before a payment voucher is sent to the Executive
Director for final authorization.

(b) Before any payment is made, the Finance Manager must ensure that there are
sufficient funds in the bank account.

(c) Payments should be posted promptly to the cash book and to the general ledger.
(d) Additional documentary evidence will be required in case of given below
expenditures.

Some of the evidence needed will include:

(i) Workshop allowance- signed attendance list/, showing amount paid to

each Participant, names and phone numbers of each participant;

(ii) Training allowance - name of training institute, rate per period and
amount paid to the candidate, duration of the course and phone number of the
candidate; and

(iii) Field visits- authorized signature of the field visit by the Executive Director,
amount paid , name and phone number of the traveller. It is recommended that the
amount be given to the officer travelling as a travel advance to be accounted for on
return.

3. 4. 3 Cheque Issuing

Cheques should not be written until the payment voucher has been authorised. The
cheque should be entered in the cashbook at the time that it is drawn.

The cheque should not be drawn unless the cash book indicates that funds are
available to meet it. It is illegal to make payments if funds are not available.

After the cheques have been signed the photocopy of the same is attached with the
payment voucher.

The drawn cheque should be sent for signing with the payment voucher and the
supporting documents.

Notification of change of signatories (adding or removing) must be communicated to

the bank
in writing, and the letter must state the reasons. Copy of this letter will be kept in the
project's file for future verification Copy of all bank correspondence letters should
bear the bank's stamp (and date) as a confirmation of receipt.

3. 5 Monthly financial reports

The monthly financial reports will cover transactions on a period basis starting on the
first day and ending on the last day of each reporting period.

The monthly financial reports currently include:

(a) Cash Flow Statement

(b) Budget summary
(c) Expenditure summary
(d) Bank reconciliations
3. 5. 1 Cash Flow Statement

Shows the cash/bank inflow and outflow for the previous month with closing bank
balances. It also shows monthly expenditure summary.

3. 5. 2 Budget summary

Shows how much has been spent and how much is remaining for each budget line
item.

3. 5. 3 Bank reconciliations

By seventh of the next month the finance manager will finalise the accounts, do the
bank
reconciliation and submit the bank reconciliations for checking and signing off.

3. 6 External reporting

The accounting staff will be aware of all donor reporting requirements including
deadlines and will ensure that all such reports are submitted to the Executive Director
at least 5 days before the reporting deadline and are ready to be submitted to the
Donor.

4. 0 Accounting for Imprest

4. 1 Definition of Imprest

The imprest system is a form of financial accounting system. The base characteristic
of an imprest system is that the amount is reserved, which after a certain period of
time or when circumstances require, because money was spent, it will be replenished.

4. 2 Imprest Procedures

To ensure that all amounts advanced for specific short term purposes are properly
authorized,and
promptly accounted for on completion of the activity. The imprest Cash limit is fixed
for Rs 10,000/- and is being handled by the cashier/accounts clerk and when the
money is expended after accounting all the expenditures incurred the imprest is
replenished.

4. 3 Staff Loan

Staff loan will be granted only when there is a serious need or where emergency relief
is required
due to circumstances that could not have been foreseen by the employee.
4. 3. 1 Eligibility

All permanent employees of the Organization who have been employed for a
continuous
period of at least six months. Employees who have an administrative order against
their salary at time of application are not eligible for a staff loan until their debt is
settled in full.
In addition, a staff loan will not be granted when, a disciplinary process has been
instituted.

4. 3. 2 Method of Payment

Payment will be made Cheque into the staff member's bank account.

4. 3. 3 New Loan

A new loan will not be granted prior to a previous loan having been repaid in
full. Not more than one loan will be granted per12 month cycle.

5.0 Checklist of End of Month Procedures

The close of an accounting period should be done when all transactions for the period
have been recorded and the bank account, and travel advances have been reconciled to
bank reconciliations and other supporting schedules.

5.1 Closing the General Ledger

The Finance manager should ensure that the accounts staff updates the General
Ledger accounts they are responsible by ensuring that all the postings to the various
General Ledger accounts are done.

The Bookkeeper responsible for the posting to the General Ledger should then make
a first run of the General Ledger for the Finance Manger to check before printing the
Trial
Balance. The Finance Manager should ensure that all transactions for the period have
been included.

5. 2 Cash Book Postings

The relevant accounts staff should ensure that all payments and receipts for the
accounting period have been posted.
The cashbooks should be reconciled to the Bank account statements for the period.
The Finance Manager should sign off the bank reconciliations.
6. 0 Employee Contracts , Attendance Sheets

All employees associated with TYPF must have valid Contracts on file . Contracts
must outline the terms of employment, termination compensation and benefits and
must be signed by the
employee and an authorized representative of TYPF to be valid.

TYPF's online attendance register is shared with all employees upon joining. The
register record the in and out time as well as any instances of travel, work from home
or leave.
This is maintained by the Admin Manager and reviewed by the Executive Director
on a monthly basis.

7.0 Budget Approval Policy

All budgets will be prepared together with the program managers and then presented
to the Board for approval for the fiscal year. The budgets will provide a financial
overview for the organization and also , on a line by line analysis per funder , give an
indication of which funder is funding which costs.
 CHAPTER-III
DATA ANAYSIS AND INTERPRETATION

INTERPRETATIONS:

During my internship I conducted two surveys to measure the satisfaction level of

Dealers. A D Trade Links Private Limited has two categories of customers one is their
dealers and another category is the end customers or the ultimate buyers.

Analysis of Dealer Survey:

The questionnaire that I prepared to survey the dealers contained some questions. But
the below analysis will focus only on those questions that are related to the subject
matter and that will give the best result of the survey. By the end of my internship I
had 30 Ngo's interviewed. The analyses of the key questions are given below:

Table 1. Individual(s) Responsible for Day-to-day Financial Activities and Financial

Management.

Day-to-day Financial
Activities Financial Management

Frequency Percentage Frequency Percentage

No one - - 1 3.13
Director 6 18.75 9 28.13
Finance Manager 7 21.88 11 34.38
Bookkeeper 9 28.13 1 3.13
Administrator 8 25.00 3 9.38
Project manager 2 6.25 2 6.25
Treasurer - - 1 3.13
Board of Directors or
Trustees - - 3 9.38
Financial Agent - - 1 3.13
Total 32 100 32 100

It presents the responses regarding who is responsible for these two aspects of
financial management. Bookkeepers and administrators are seen to be the most
common individuals responsible for the day-to-day financial activities of the NPOs.
The financial management of the NPOs is seen to be predominantly executed by the
Financial Manager or Director of the NPO.
 Table 2: Reasons for the Drawing up of Budgets.

Reason Given Count

Monitoring and control 25
Planning 14
Fundraising 9
Evaluation purposes 5

Monitoring and control

Planning

Funfraising

Evaluation purposes

Respondents were asked to list the reasons why they draw up budgets. Respondents
were not limited in the number of reasons given, with the average respondent giving
approximately two reasons. Table 6 shows that the two most popular reasons for
drawing up budgets are that of monitoring and control and planning. Planning is put
forth by Evans (2010) as the primary purpose of a budget as it specifies the expected
levels of income and expenditure, however, less than half of the respondents (44%)
indicated explicitly that planning was a reason why they draw up budgets.
 Table 3: The Relationship Between Extent of International Funding and Financial
Status.

Overall Financial Management

Status
Percentage Distressed Not Distressed Total %
0-19 8 8 16 50.00
20 – 39 3 0 3 9.37
40 – 59 1 1 2 6.25
60 – 79 0 1 1 3.13
80 – 99 3 5 8 25.00
100 0 2 2 6.25
Total 15 17 32 100

5 Series 1
Series 2
4
Series 3
3

0
0 – 19 20 – 39 40 – 59 60 – 79 80 – 99 100

A comparison was made between the two groups according to five measures of
financial control, namely: months of operating expenses held in reserve, the usage of
purchasing procedures, cash budgeting, the usage of ratio analysis and the existence
(or lack thereof) of a separate finance sub-committee. Table 3 summarizes the results
of this analysis.
 Table 4: Financial Manager’s Qualification and Usage of Cash Budgeting.

Whether NPO Draws Up

A. Qualification Cash Budgets
To
No Yes tal %
Matric 1 0 1 3.13
Certificate or
Diploma 4 3 7 21.88
Undergraduate
Degree 0 11 11 34.38
Postgraduate
Degree 1 7 8 25.00
Chartered
Accountant 1 4 5 15.63
Total 7 25 32 100

12

10

6
YES
4
NO
2

0
Certificate
Matric
Undergraduate
orPostgraduate
Diploma
Chartered
Degree
Degree
Accountant

In table 4, Respondents were asked if they had been late or had missed payments to
creditors (including staff) over the last two years due to cash flow shortages
 Table 5: Existence of Separate Finance Sub-Committee and NPO Size.

Whether Board has a Separate Finance

A. Size Sub-committee
Tot
No Yes al %
R0 - R1mil 7 2 9 28.12
R1.1mil - R5mil 9 9 18 56.25
>5mil 0 5 5 15.63
Total 16 16 32 100

10

6
NO
5
YES
4

0
R0 - R1mil R1.1mil - R5mil >5mil

Exactly 50% of the NPOs reported that they have a separate finance committee and
94% reported that they have their financial statements audited on an annual basis. It
was found using a Chi- square test that at the 5% level of significance it was possible
to conclude that the use of a separate Finance Committee is positively related to the
size of the NPO. No significant relationship was found between the use of a separate
Finance Committee and the qualification or experience of the Financial Manager.
Table 6: Educational Qualifications of Day-to-day Financial Administrator and NPO
Size
NPO's Total Expenditure of 2009 in
A. Qualification Rands
R0 - R1mil R1.1mil - R5mil >5mil Total %
Matric 0 3 0 3 9.38
Certificate or Diploma 3 9 3 15 46.88
Undergraduate Degree 2 3 1 6 18.75
Postgraduate Degree 2 2 0 4 12.50
Chartered Accountant 2 1 1 4 12.50
Total 9 18 5 32 100

9
8
7
6
5
4
Series 1
3
2 Series 2
1 Series 3
0

It is evident that all but three financial administrators have at least a certificate or
diploma as their highest qualification with almost half (44%) having a degree or
higher qualification. Size does not seem to impact on the appointment of chartered
accountants (CAs) – two of the four CAs are employed by small NPOs.
Table 7: the number of sampled NGOs by Sector/Group and Place of Residence.

PLACE OF AGRICULTURE EDUCATION HEALTH COMPOSITE Sub-

RESIDENCE Sector Sector Sector Group totals
Urban 5 1 9 16
Rural 1 1 1 5 8

Sub-totals 2 6 2 14 24

10

5 Urban

4 Rural

0
AGRICULTURE EDUCATION HEALTH COMPOSITE

However, in the event, four NGOs did not participate in the Survey and in the Case
studies, giving a response rate of approximately 83% (n=24). The backgrounds of
these four NGOs were considered in order to decide whether their non-inclusion in
the sample could possibly introduce some non-random effects. On inspection, one
NGO was found to be from Agriculture, two from Education, and one from Health.
 CHAPTER-IV
CONCLUSION & RECOMENDATION

The small sample size of this study means that these findings can only be viewed as
exploratory in nature, nevertheless this study makes several important contributions to
our understanding of financial management in NPOs. The primary finding of the
study was that the majority of NPOs surveyed employed accepted financial
management practices and that no relationship between their overall use and an
NPO’s financial vulnerability was evident. The age and size of the NPO, however,
and the Financial Manager’s experience were found to be significant in determining
the likelihood of financial distress but the use of purchasing procedures, cash budgets,
ZBB, and ratio analysis, were not significant. The level of operating reserves and the
presence of a separate finance sub-committee were also found to be significant,
although caution must be exercised in interpreting these results as it is not possible to
infer causation between financial status and cash reserves and the significance of a
separate finance-committee may be related to the size of the NPO. Nevertheless these
results are suggestive of the importance of sufficient cash reserves and of independent
financial oversight for the financial sustainability of an NPO and provide valuable
empirical evidence regarding sound NPO management practice. Further research
needs to be done to fully explore the links between these variables and financial
sustainability but this study provides a good starting point and suggests a viable way
forward for designing such research.
Contrary to our expectations, the extent to which NPOs relied on international
funding was not found to increase their likelihood of having experienced financial
distress post the global financial crisis. Due to the small sample size and the study’s
narrow geographic focus, however, it is not possible to generalise this finding to all
NPOs. It is possible that this result is biased by the number of smaller NPOs in the
sample who are less likely to be able to access international funding. Two years may
also be an insufficient period for the effects of the financial recession to be fully felt if
funders honour their existing financial commitments but fail to renew their funding
when it expires. Further research is thus required regarding the relationship between
financial sustainability and sources of funding for South African NPOs.
NPOs play a major role in addressing a variety of social challenges and yet
relatively little research has been done regarding their financial management and
sustainability. A greater theoretical and empirical understanding of NPOs’ financial
management offers the promise of improving their effectiveness. This study provides
a starting point for further research on this important topic by identifying a number of
factors which impact on NPOs’ financial viability and suggesting productive areas for
further research.
 BIBLIOGRAPHY

Reference Site:
 https://www.wns.com/analyzing-for-the-fund-management-analyst-
the-case-for-outsourcing-secondary-research

 https://www.investopedia.com/terms/f/funds-management.asp

Reference Books:


 Marketing Research- Paneerselvam

 C R Kothari “Research Methodology – Methods and Techniques” (II Revised
 ed.)
 ANUXURE

QUESTIONAIRE

Customer Satisfaction Survey

Name:

Phone Number:

Mailing Address:

Birth Date:

Q1. Individual(s) Responsible for Day-to-day Financial Activities and Funds

Management.

Q2. Reasons for the Drawing up of Budgets.

Monitoring and control

Planning
Fundraising
Evaluation purposes

Q3. The Relationship Between Extent of International Funding and Financial Status.

0-19
20 – 39
10 – 59
60 – 79
80 – 99
100

Q4. Financial Manager’s Qualification and Usage of Cash Budgeting.

Matric
Diploma
Undergraduate Degree
Postgraduate Degree
Chartered Accountant

Q5. Existence of Separate Finance Sub-Committee and NPO Size.

R0 - R1mil
R1.1mil - R5mil
>5mil
 Q6. Educational Qualifications of Day-to-day Financial Administrator and
NPO Size.

Matric
Diploma
Undergraduate Degree
Postgraduate Degree
Chartered Accountant

Q7. the number of sampled NGOs by Sector/Group and Place of Residence.

Urban
Rural

Foreign Contribution Received for the Financial Year 2017-18 in YP

Foundation.

Quarter-1 (April-June)
Quarter-2 (July-September)

Quarter-3 (October-December)