Training Programme in Financial Management and Accounting System of NGOsEntrepreneurship Development Institute of India
Non-Government Organisations (NGOs) are playing a very crucial role in the process of development initiatives in social sector. However, despite their good intentions, a large number of NGOs find it difficult to sustain themselves as well as their projects in the long run. Many NGOs, which are established with a great zeal by committed persons, become defunct in a very short time. It is primarily because of poor management of Organisations, as many of them do not possess adequate managerial capabilities. One of the critical areas, which the Chief Executives of NGOs find most difficult to manage, is that of finance and accounts. Most of the NGOs do not have full time, professionally trained accountants working with them. In such cases, either the Chief Executives or their functionaries, who more often are engaged in fieldwork, try to maintain accounts in a very ad-hoc manner. Due to this reason a number of sponsoring agencies face serious problems while settling project accounts with their funded NGOs. Sometimes, NGOs also fail in meeting various statutory requirements under different acts and rules stipulated by the Government.
EDI's interactions with more than 400 NGOs have indicated that up gradation of their financial management is a felt need to make them professionally better managed. It is therefore argued that a specialised short term programme for strengthening them in financial management and accounting will go a long way in improving their performance and effectiveness in terms of statutory requirements, reporting to sponsoring agencies and viably implementing their development projects with adequate cost control. Hence, a 5-day Specialised Training Programme on Financial Management and Accounting System for NGOs is scheduled.
The overall objective of the programme is to strengthen NGOs by developing a cadre of trained personnel who could professionally manage their finance and accounting functions.
* Understanding the basics of financial management
* Understanding the basics of accounts: like single entry, double entry, debit and credit rules, etc
* Understanding the concepts of budgeting, monitoring, cash flow/funds flow
* Analysing financial data (ratio analysis)
* Process of financial planning
* Maintaining books of accounts like; voucher and ledger, trial balance, income/expenditure statement accounts
* Understanding the auditing procedure
* Understanding the method of preparing budget estimates of projects
* Understanding the method of financial reporting to sponsoring agencies: and
* Procedures for income tax exemptions.
It is expected that this programme would provide benefit to the NGOs in:
* Analysing their financial data, the resource planning
* Maintaining proper books of accounts
* Developing a proper budget estimates while preparing project proposals Satisfying financial reporting requirements of sponsoring agencies
* Getting proper benefit of the income tax exemption schemes
The methodology will be based on participatory learning. Case studies and group exercise will be extensively used to provide theoretical and conceptual understanding, besides training through classroom lectures on applied aspects of finance and accounts. Medium of instruction will be English.