Well-come to the Presentation

of Financial Systems

Shushilan

A standard policy and procedures are followed by the organization contained

11 Chapters with 40 different form and formats

Financial Management Responsibility

DeLEGATEd

AUTHORITy

ACCOUNTABILITy

EC

Director

Finance Team Project Team

The Financial Planning Process

Plan

Do

Review

1. Set Budget

2. ImplementPlans

3. Monitor Budgets

4. Build in learning & take action

Area Number

No. of Total Staff 23

No. of Professional Staff 07

Skilled staff 16

Male = 20

Female = 3

Finance & Internal Audit Staff

Field Worker

Supervisor/Centre Manager

Senior Program Officer

Accountant

Asstt. Director/Cell Head

Director

Deputy Drectorr

Approval Procedure

Work Execution

Preparation of bills

Recommendation

Voucher Preparation

Verify with budget

Bill approval

Voucher Approval

▪ The following position can approve the payment bills up to an amount of:

Grade Nature of Expenditures

Amount limit – Tk

Remarks

Grade -10 Project Budgeted Heads

Any Amount Bills and Vouchers

Grade -9 & 8 Project Budgeted Heads

Any Amount only for bills

If Advisers (grade 9) lead any Projects as PC

Grade -7 & 6 Project Budgeted Heads

25,000 only delegated persons

CASH MANAGEMENT

1. Keep money coming in separate from money going out

2. Always give receipts for money received

3. Always obtain receipts for money paid out

4. Pay surplus cash into the bank

5. Have properly laid down procedures for receiving cash

6. Restrict access to petty cash and the safe

7. Keep cash transactions to an absolute minimum

Shushilan also has separate cash management policy.

Bank Management

1. Shushilan operating separate Bank Account for the grant received from each donor. At least two signatures are necessary to operate the bank account.2. Cheque signatory must not prepare Cheque and vouchers.3. All cancelled Cheque are marked “CANCELLED”

and preserved in the voucher file along with the supporting voucher. 4. All payments made to vendors through Account Payee Cheque for TK. 10,000 and above. 5. An acknowledgement obtained from the vendor

after payment of any bill.

Formation of Procurement Committee : Director of Shushilan form a Procurement Committee (PROC) consisting of at least 3-5 members. The Director and the Accountant (same Project) should not be included in this procurement committee. The PROC will send their recommendation to Director or his/her designated person for Approval. But Director will remain accountable for all procurement.

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Procurement Procedure

Actions before Procurement: * Procurement of goods or services require complete recording .* The expenses must be authenticate by proper documentation. * No expenditure to be reimbursed for procurement if those are not budgeted, allowable, and reasonable. * Standard procurement procedure must be followed. * In case of extreme emergency, which prevents to follow the procedure, prior permission must be received from donor. * Administrative negligence or delays caused by poor management cannot be invoked to skip the normal procedure.

Fixed Assets, Store, Inventory Management

1. WAREHOUSE INVENTORY2. NON-WAREHOUSED INVENTORY3. Depreciation4. BOOKS and DOCUMENTS5. Registers6. Store Management7. Fixed Assets Sale Procedures

Shushilan Standard Procurement Policy: .

An organization for Development of eco-sensitive Community of the Sundarbans and its Vicinity

Amount Source Quotation Method of Procurement

Up to TK. 15,000

Open Market/ Enlisted Vendors

None Direct purchase/open market

TK. 15,001 - 50,000

Open Market/ Enlisted Vendors

Three Open market purchase by PROC. For enlisted vendor, purchase order should be issued by Director/ Deputy Director

TK. 50,001-10,00,000

Open Market/ Enlisted Vendors Three

Open market purchase by PROC. For enlisted vendor, purchase order should be issued. by Director/Deputy Director

Above TK.10,00,000

Open Market/ Enlisted Vendors/Press Tender

Three Through limited tender (sealed bid)/ press tender. For all cases Purchase Order will be issued. by Director/Deputy Director

Mode of Payment: The grantee should make payment to the vendor through

Account payee cheque if it is equal to or more than Tk. 10,000 (ten thousand) against the above procurements of goods and services. Cash payment should be restricted as much as possible. But for a single bill, cash purchases should not be more than Tk.10,000. In case of emergency the Director can approve cash to be paid to the vendor.

In the remote area or in some cases the suppliers do not have bank account or in some reasons they are unwilling to accept the cross cheque, DD or TT in that case Accounts section may arrange payment against the written request from supplier. This must me approved by the authority of Shushilan.

 

Internal Control

Person Who Should Not Prepares Vouchers Approve Vouchers

Prepares Checks Sign Checks

Has Access to Blank Checks Post Payments

Receives Cash Record Cash Receipts

Prepares Bank Deposits or Records Cash Receipts

Reconcile Bank Accounts

Is Responsible for the Physical Security of Assets

Perform the Physical Inventory of Assets

Prepares Payroll Distributes Payroll Payments

Maintains Driver Log Monitor Fuel Usage

Financial Monitoring

Shushilan monitor the project activities and prepare a monitoring report in the filed of program and financial management system. Corrective actions are taken on the basis of this monitoring report particularly in the field of budget, internal control system and program activities. For monitoring activities Shushilan use internal resources as well as external resources when required.

Accounts Record Keeping

Cashbook (Manually)

Tally Software (Accounting Software)

Concern Worldwide Provided Accounting Software

Ledger, Stock Book, Advance Register, Cheque Register, Daily Cash in hand certificate/Register, Assets Register, All type of Voucher

Monthly, Quarterly, Six Monthly and Yearly Financial Report with Bank Reconciliation Statement & Budget Variance.

Internal and External Audit Report

Reporting System Shushilan prepare Financial Report on the basis of donor

requirement. The financial reporting process are Monthly, Quarterly and

yearly. The financial reporting consider financial statement, budget

variance, utilization rate, cash flow and explanatory notes. The Budget Compared to Actual Performance Report and the

Cash flow Report shows how the financial planning and financial accounting processes come together to produce management reports.

Audit i. Donor Audit:

Donor or the representative of the donor or any other person/ auditor/ organization appointed by them may conduct audit any time whenever felt necessary. The Auditor can check all the financial and program related records and activities.

ii. External Audit: The organization will conduct external Audit as per requirement of the project/GOB.

iii. Internal Audit:Shushilan has a internal audit cell who conducts audit of books of accounts of all projects round the year

Fraud and Irregularity Management It happened when internal control systems fail to prevent losses

through theft, fraud or other irregularities. Fraud is defined as: a deliberate, improper action, which leads to financial loss to the organization. This includes theft of goods or property; falsifying expenses claims; and falsification (or destruction) of records to conceal an improper action. Fraud does not include: accounting errors; actions condoned by established practice; and cases where no loss is incurred.

THE PROCESS: Deterrence Types of irregularity Detection Investigation The Aftermath – As per HR policy

Budget Trends (Taka)Years Donors Grant

2005 4,50,05,500

2006 6,66,47,619

2007 11,63,18,459

2008 (6 month) 10,65,20,636

2008-2009 24,14,51,625

2009-2010 23,82,03,846

2010-2012 41,12,06,642

2011-2012 66,02,27,490

2012-2013 71,97,52,208