A transparent and accountable financial management system is one of the hallmarks of Sangath’s organisation. With the help of external and internal auditors and based on guidelines provided after a comprehensive audit by international firm PriceWaterhouseCoopers in 2007, we have developed a smooth and transparent system of financial management.
Our finance team monitors the position of all projects, including current and forecasted expenditure, and enforces strict procedures to ensure complete transparency. Detailed standard operating procedures for all types of financial transactions can be found in the financial manual.
Here are some of the salient features of Sangath’s financial management system:
Our finance manual contains a list of accounting policies strictly followed at the time of purchase and sale of assets, investment of funds, travel reimbursement, settlement of advances, usage of mobile phones, etc.
Authorisation of expenses
All project and society expenses less than Rs 3,000 are approved by the coordinators. Those more than Rs 3,000 and less than Rs 5000 must be approved by the Finance Officer, those more than Rs 5,000 and less than Rs 10,000 are approved by the SMT and those above Rs 10,000 are approved by the Managing Committee. The Finance Officer seeks prior approval from funders in case of any variation from budgeted figures.
Every project coordinator is updated monthly with a statement of expenses incurred and information on budgetary variations. The Finance Officer meets individual coordinators if project funds are not managed efficiently, while the Managing Committee also keeps a check on expenditures while giving approvals. This ensures that all funds are constantly monitored by the Managing Committee, coordinators and Finance Officer.
Monitoring by auditors
All financial transactions are scrutinised every quarter by an internal auditor, who updates the Managing Committee. Funds are also audited annually by a statutory auditor, who raises any issues with the finance officer and the Managing Committee for action.
Insurance coverage and safeguarding of fixed assets
While insurance cover is taken for cash at safe and in transit, Sangath also covers all assets through equipment insurance, following strict procedures with regard to procuring, numbering and physical verification of fixed assets at the end of each financial year.
Up to 10 per cent of running costs of projects, in agreement with the funding agency, go towards supporting the core administrative expenses of the society. This helps pay for facilities, including administrative and management support services, and capacity building for long-term sustainability.
Click here for FCRA Balance Sheet for the financial year 2011-12
Click here for FCRA Income and Expenditure for the financial year 2011-12
Click here for FCRA Receipt and Payment for the financial year 2011-12
Click Here Final Accounts of FCRA A/C for the Financial Year 2010-11