Accounting System and Financial Reporting of NGOs: Case Study of a BRAC’s Project
Munima Siddika1, Mohammad Sarwar Jahan Rekabder2 and A.K.M. Delwar Hossain3 tawheedfj@yahoo.com
Abstract: In the absence of specific accounting and financial reporting standards and diverse interpretation of certain terms under the laws of the land, it has become a very difficult task to follow a standardized procedure in generation and presentation of accounting and financial information of NGOs. The practices followed by NGOs in Bangladesh are varied and diverse and there by preparation of financial statements are incomparable and difficult for uses to understand. The paper tries to demonstrate financial reporting and accounting system of a BRAC’s
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b. Three laws and ordinances for regulation the relationship of such associations with the Government: The Voluntary Social Welfare Agencies (Regulation and Control) Ordinance, 1961; the Foreign Donation (Voluntary Activities) Regulation
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Ordinance, 1982. This Forms the basis for registration with the NGO Affairs Bureau (NGOAB); the Foreign Contribution (Regulation Ordinance 1982) Government organization, The NGO affairs Bureau, has been carrying out NGOs registration and processing of funds. NGO Bureau examines and evaluates reports submitted by NGOs and the checking of their income and expenditure accounts. The inspection and audit of accounts kept by NGOs are under section 4 and 5 of the Foreign Donation (Voluntary Activities) Regulation Ordinance 1978. As per Bangladesh Chartered Accountants Order 1973, the NGO Affairs Bureau will prepare a list of Bangladesh Chartered Accountants for annual audit of NGO accountants. The NGOs prepare their annual program report within three months of ending the financial year and send copies to NGOAB’s Economic Relation Divisions, Concern Ministries, Concerned Deputy Commissioner and Bangladesh Bank, the following information should be incorporated with it: (a) project should be shown separately in the annual report. The main theme of project based report should expenses against actual target achieved in detail on the proposal, expenses
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