Finance Teams in CSOs esp Leaders

Participants of the Fin & Compliance sessions

Admin & Operations Teams in CSOs esp Managers

CA Firms, Accounting Firms

Saathi

Capacity Building Teams of Orgs, Coalitions

GRI, Climate Asia, Guidestar India, etc

Technologists

Students looking for Internships

Yaashvi

Funders with a focus on ecosystem building

RNP, Rainmatter, Co-Impact, Porticus

Govt Departments

TBD

Board and Governance

Organisation has policies and processes to build a governance structure that includes a diverse board membership with the experience and expertise to provide strategic direction and guidance to the organisation.

• Composition of Board
• Experience of Board
• Roles and Responsibilities
• Governance
• Contribution
• Employment
• Diversity

Legal and Compliance

Organisation has the ability to follow and comply with legal and regulatory requirements and adapt to changes/amendments brought into the regulatory framework.

• Obligations
• Compliance

Monitoring

Organisation has techniques, processes, tools and technology designed and deployed to track progress, partnerships, and growth.

• Strategy Process
• Data collection-digital Infrastructure
• Data Collection-process
• Data protection
• Donor Data

Financial Management

Organisation uses financial tools and policies to ensure proper financial tracking, authority, and control systems.

• Tally/Book keeping software
• Financial manual/policy exists and defines authorities and control systems

Organization has the following registers:

• Salary Employees
• Leaves
• Assets
• Petty Cash
• Cheques/Payments

There are clear formats/templates for handling:

• financial transactions
• advances
• reimbursement
• payments and loans

Reconciliation with the bank accounts

Form10B

FCRA filings

Limits on cash transactions

Grant Management Cycles

Auditing on time

OD Aspects

Average Maturity Score

Financial Management

Legal and Compliance

Communications

Organisation Programme Strategy

60.23%

Community

59.85%

Leadership Development

57.71%

Board and Governance

53.98%

Talent Acquisition, Talent Development, Staff wellbeing, Organisational Culture and Organisational structures

40.32%

Strategic planning, Vision Building and Mission

36.36%

Monitoring

24.24%

Learning and Evaluation

24.24%

Use of Technology

11.69%

HR processes, Policies and Procedures

11.16%

Number of years of existence:

The Organisation was registered on 31st Aug 2009.

What are the core areas in which the organisation works?

Their primary focus is to empower women and adolescent girls, specifically emphasising marginalised communities, particularly the Dalits.

Has there been any political backlash?

As management informed us, there’s no political backlash or affiliations.

Board and Management

Constitution of the Board (General Body/Executive Committee/Board of Trustees) as per the Memorandum and Articles of Association/Trust Deed

The Constitution of the board has been form

1. General Body- (Total number of members defined in the bye-laws of the organization, founder members and ordinary members wil part of the general body)
2. Governing Board- 9 Members. President

Secretary Treasurer Six Members

Participation of the board members in the meetings - whether all the members are regularly participating in the meetings?

Yes, as per the records available.

The majority of the members regularly partic in the meetings.

General Body/Governing Body/BOT Meetings organized as per the constitution.

As per the records mentioned by the manag which were also checked and verified, the governing body meeting is conducted once a as per bylaws and Executive committee mee were organized on half-yearly basis.

Availability of Notice Book/Notice for Board Meetings.

AS informed by the management, notice wa on telephone communication. But the team f no records.

Has the Change in constitution/structure of Governing Body in the last 3 years been intimated to statutory authorities.

As management has informed us, two memb changes have occurred in the last three year President, Secretary. However, intimation ha been shared with the society's registrar.

Has the quorum specified in the Memorandum/bye laws being met in each of the Board meetings.

Yes, as per the available records, the 2/3rd q was met during the meetings.

Whether any of the Board members are related to each other?

As informed us, no board member is related each other.

Whether there is any conflict-of-interest policy in the memorandum /bye laws or is there a separate policy?

There is no conflict-of-interest policy availab the organization.

Whether the memorandum /bye laws/Governance Manual state the method of election, selection, retirement or re appointment of Board Members in case of vacancy? Whether there are any laid down criteria for selection of Board Members?

Yes, the selection and election process are w defined in the bye-laws.

Is there any payment done to the Board members? If yes, what is the number/percentage of Board members being paid and nature of payments?

No Payment was made to board members.

Whether the Board members are qualified and their membership, if any, with other organizations?

As informed by the management, all board members are suitably qualified for their role do not have any relation/membership with a other organization.

General

Number of Employees (Full-time, part-time, consulting); (No. within Accounts, Program, Fundraising, HR etc.

Currently, the organization does not have a salaried staff.

Number of Volunteers (and if they are being paid any honorarium)

A total of 11 volunteers are working in the organization. As explained, there are no pa made to these volunteers and no records w maintained for volunteers.

Does the HR Policy cover staff recruitment, appointments; procedures; payments; appointment letters? Is it followed through?

The organization has an HR policy.

Is there implementation of various social security measures as per the laws of the land like gratuity, PF and other benefits (PF is applicable for organizations exceeding 20 staff)

Not Applicable for now.

Mode of Salary/Consultancy charges (cheque/cash)

Currently, no staff are available in the orga earlier, they used to pay salaries to their e by cash and cheques.

Is there an organizational Chart available for verification?

As mentioned by the management, the org has an organizational chart, but the team c find any documents for verification.

Whether Leaves and Attendance register is maintained for all the staff?

The organization has not maintained the at register and leave register.

Whether Staff Files are maintained which contains the details of each personnel such as appointment letter, Increment letter, educational qualifications, KYC documents, consent to policies etc.?

Presently, the organization does not have a and it does not maintain comprehensive re Only a few individual forms are available w basic details are recorded.

Is there a staff appraisal system?

Yes, the organizational policy covers the sa but in the absence of a program, it is not a

Gender Ratio (Gender Diversity)

The organization does not have a staff as o

Details about second-line leadership

The organization is currently in the phase o establishing first-line leadership; the board organization is working on the skill develop the leadership of the organization.

Is the staff responsible (for finance, program, MEL, research, etc. department) suitably qualified and experienced?

There are no permanent staff at present. A consultant takes care of the finance functio

Is there a frequent turnover of staff?

No, as per available records, no frequent st turnover was seen.

Whether all the adjustments from payroll on account of leave etc. made after receiving proper authorization from the competent authority?

Not applicable for now.

Whether the accounts department maintaining salary register regarding the salaries paid?

Not applicable for now.

Financial Policy

Yes

HR Policy

Yes, but that is not approved by the boa

Child Protection Policy

No, the organization does not have a chi policy.

Prevention of Sexual Harassment Policy

The organization has the POSH Policy.

Communication Policy

The organization does not have a comm policy.

Other Remarks: The policies have not been approved by the board.

Vision or mission statement of organization (5-year plan etc.)

Yes, the organisation has a vision/mission.

Vision - A just society in which the depriv communities can live with dignity.

Mission - To carry out all-inclusive develo underprivileged community, especially pu advocacy for the interests of adolescent g women.

Organization’s strategy documents or any perspective papers

The organization does not have any strat documents or perspective papers.

Documentation of values of the organisation

Values- Equality, justice, conscientiousne accountability, accountability, quality, col participation, mutual goodwill, respect, tr democratic decisions, opportunity, mutua cooperation and transparency.

Areas of work done (State/District/Village)

The Organization has already worked in t like Buxar, Bhojpur, and Patna. Below are details

Buxar - 48 village, Patna - 25 slum Bhojpur - 50 village

Target communities (Number and Nature)

The target communities are from deprive an income basis.

The majority are from SC/ST/Muslim, etc.

Key themes/sectors of program intervention

The organization mainly works on adolesc education, and health.

Availability of program reports/annual reports

The organization has previously funded p reports and annual reports.

Availability of documents regarding activities at the organization level (2 years)

The organization has the activities report previous program. As per the donor's req has been maintained.

Describe the government relations of the organization.

The organization has good connections w government departments at the district le

Mode of data collection (Manual/Online)

The organization has collected data manually online, as per the donor’s requirement.

Please comment on the available monitoring and evaluation documents (log frame, impact evaluation, learning documents, theory of change)

The organization management could not shar the monitoring documents.

Please comment on the qualifications and experience of the staff responsible for MEL

The organization does not have any specific st for MEL.

Please comment on the current method(s) of fundraising.

The organization does not have any stru fundraising method. They have raised fu individual connections and some known sector.

Please comment on the qualifications and experience of the staff responsible for fundraising.

The organization does not have any suc experiences have only been with existin advisors.

Who are the current donors, or sources of funding (in detail)?

The organization does not have any curr sources.

Are contracts available between donor agency and organization?

The organization has past contracts with agencies like C3, PACS, FAT, and the MA

Please comment on any existing proposals?

The organization does not have any pro pipeline.

Main challenges faced during fundraising.

As per the interaction with the managem mentioned the challenges like Identifica interested donors, proposal writing, etc.

What is the reporting (narrative, finance) process to funders?

The organization has narrative and finan funders like C3 and Malala.

What is the status of funds for following 3 years? Are there available funds?

Currently, the organization has no funds the coming years.

What are the modes of fundraising that the organization hopes to explore in the future. Are there specific donors/mode that the organization wishes to target?

The management has mentioned explor to some philanthropic and foundations.

Is there capacity to diversify fundraising? (Individual, Corporate, Institutional)

As per the interaction with management observed that there is scope for instituti and individual.

What are the key priorities for fundraising of the organization for the next 2 years?

The organizational management mentio adolescent girls and women from depriv communities.

1. Budgetary Controls

Is an annual budget prepared for the whole organization giving breakup of Programme Expenditure and Administrative expenditure?

As informed, no annual Budget was prepared the organization.

Is there project budget for specific donors (donor reporting to be taken as sample)

No project budget was prepared in the organisation, as there is no program/project running now a days.

Is actual expenditure and income measured against the budget at regular intervals? At what intervals? Who reviews these?

As informed, yes, but no such reports or minu seen in this regard.

Are explanations noted for significant variances?

Not applicable for now.

2. Accounting Records

Are the following accounting records accurate and up-to-date?

As informed by the management, no account records were maintained because of non- availability of program and there no transacti were made in the organisation.

Cash Book (Cash and Bank)- Check the Date of last entry

Same as above

Petty Cash (if maintained)

1. Petty Cash Book
2. Date of last entry

Same as above

Other Records

1. Ledger
2. Salaries and Wages records
3. Staff Advances

Same as above

Is the governing body presented with summaries of accounting information? Date when last presented? (Check the minutes/email)

As explained by management, There’s No su practice.

Do the accounting records clearly identify funds given for a specific purpose (Fund/Project wise Accounting)

There are no specific Projects, hence it is not applicable for now.

Is sufficient information available to report back to each donor in the way requested? Have such reports been produced in the past years?

Yes, as per the old available data, it had enou information in this regard.

Maintenance of Subsidiary Records such as Fixed Assets Register, Stationery Stock Register, Phone Log Book, Vehicle Log Book etc.

Yes, the Fixed Assets register has been maintained but few things like location and current value was missing in that format.

Method of Accounting followed - cash or accrual?

Cash Basis

Whether the organization is having computerized accounting software i.e. Tally ERP 9 or any other accounting software?

Yes, Books for last years were maintained on ERP 9 software, it was outsourced earlier.

Whether the heads of expenditure commensurate with the budget heads and whether the supporting relate to the head of account in which the expense is booked?

N/A for now.

Whether the organization has any monthly reporting system for internal decision making?

As informed, yes, but the record was not avai during the visit.

Whether backup of the accounting records taken/ what is the frequency?

Not applicable as accounting was outsourced earlier.

Are the vouchers manual or software generated?

Yes, computerized vouchers were available.

Does the voucher have sufficient information related to the transaction i.e. Date, amount, Nature of expenditure, Project, etc.

No, Vouchers don’t have sufficient informatio the nature of expenditure etc.

1. Expenditure Controls

Is all expenditure authorized by a senior member of staff? Who is the authorized staff member? (Names of authorized signatories)

Yes, all payments are authorised by secretary.

Does different staff authorize payments to those who prepare and sign cheques?

Not applicable for now.

Is there an adequate segregation of financial duties? For Example, Accountant and cashier are the same person?

Not applicable for now.

Are payments made only against an original invoice?

Yes, as per old available records all payments have done against original invoice.

2. Purchase Controls

Is there a financial limit above which the quotations need to be obtained?

Yes, above 5000 it would be mandatory of Procurement Process as per bylaws. However, the same was not followed by the organization

Is there an adequate system for procurement? Are several quotes obtained?

Yes, the organisation has a procurement polic but it is not applicable for now.

Are comparative statements of quotations prepared and approved?

Not applicable for now.

Are invoices matched against orders?

No such system has been seen in last years as well.

Is there a regular stock taking of goods? Is a stock register maintained? (If stock is available) Date for last stock taking?

Not applicable

3. Bank Accounts

Are all accounts opened in the name of the organization? (Saving accounts are preferred)

Yes, all accounts opened in the name of the organization.

Are there cheque signing procedures in place (single signatory, joint signatories etc.)

The Joint Signatory mode is being followed by organisation.

Are blank cheques ever pre-signed? If yes, how this can be avoided?

As informed by management, no such system there in the organisation.

Are bank accounts reconciled each time a statement is received or at least monthly? Date of last reconciliation?

Not applicable for now in absence of transacti in the organisation.

What happens to cancelled cheques?

As informed record is kept with books of accounts.

Are separate Bank Accounts opened for separate Projects (if needed)?

Not needed/Applicable

In case of a single bank Account, is there any system – bank reconciliation or other to identify the balances in each project?

Not applicable

4. Cash Transactions

Is cash kept securely? Who holds the keys?

AS informed Yes, But no cash box in the safe found during the visit.

Is a numbered receipt issued for cash received?

Receipts have not been issued to individual donors for cash received.

Does someone other than the cashier authorizes payments?

No, only Secretary authorizes all payments.

Is the cash counted regularly by a senior member of staff in the cashier’s presence? Date when last verification took place.

No such system was found in place.

Is there any cash transaction limit (Cannot exceed INR 10,000/day to one vendor)

No cash transaction limit in the policy.

Is there any threshold limit of holding cash at a time.

No threshold limit is fixed for holding cash at a time.

5. Physical Controls

Is there a record of all fixed assets owned?

Yes, But the Fixed Assets register has not bee maintained as some assets and location relate information was missing in the FAR.

Is this record updated regularly? Date of last entry

No, the Record is not up to date; the last date entry is 14/06/2013.

Is the insurance cover sufficient for the current value of the items owned?

No, Insurance cover taken.

Do all the fixed assets shown in the accounts exist? How are the items controlled that are no longer needed?

It is so difficult to comment in this regard because the record is not up to date.

Are all items owned kept securely?

Yes, the available fixed assets were kept securely.

Are any vehicles used for personal purposes? Is there a record for it and is the amount being refunded?

As informed, Organization does not have any vehicle.

Are assets donated to organization recorded in the Fixed Assets Register?

Yes, some assets were donated by a donor an that was recorded in the register.

Is physical verification of fixed assets undertaken? If so, what is the periodicity?

No, there is no physical verification of Fixed assets.

6. Audits

Procedure for appointment of Auditors whether the same has been spelt out in the bye laws/relevant document in place?

Yes, as per the byelaws, the auditor will be appointed in the general body meeting

Whether the statutory auditor has been appointed in the General Body/Board?

No, the statutory auditor has not been appoint in the General Body/Board.

,

Whether appointment letter/Contract has been issued by the organization?

The organization has not issued any appointm letter to the auditors.

Whether audit is undertaken at organization’s office?

No, an audit was undertaken at CA’s Office.

Whether audited statements include fund-wise statements so as to reflect clear segregation of different funds?

Not applicable for now.

Whether Audit is completed within August of the following year?

FY 22-23 Date on 15/10/23 FY21-22 Date on 10/09/22 FY 20-21 Date on 16/7/21

Does the Auditor provide Management letter/Observations conducted at the time of audit?

No, the auditor has not issued a management letter / Observations letter.

Policy on Rotation of Auditors

No such policy or clause is found in the byelaw

Whether the independence of auditor being observed with respect to the following:

1. Is a relative of a Board member or CEO?
2. Is he engaged in providing services pertaining to organizational financial systems including preparation of books of account?
3. Is he a part of the management?
4. Is he Chief Functionary of any other NGO?

As explained by the management, the auditor not connected to any board member or team member.

1. Registration

Proper Registration as a legal entity

Yes the organisation is registered under Bihar Society Registration Act 1860 Section 21 on 31/08/2009.

Filing of Returns with the Registrar of Societies

/Renewals societies as and when required / companies act or the specific state trust law as required along with the Minutes of the General Body/Annual Report/ Annual audited statements

No Return filled in Register of Societies.

Amendments made if any in the bye-laws or the constitution are properly documented and filed with the Registrar or the respective authority

Board members changed but not intimate to registrar’s office

2. Income Tax Act

Registration and renewal under section 12A & 80-G

Final 12A & 80G registration valid A. Y. 2026- 27.

80G URN: AACTM8149EF20212. Date on

12/03/2022

12A URN: AACTM8149EE2012301 Date on

12/03/2022

Obtaining PAN /TAN from the IT department

Pan: Yes

TAN: Not available

Filing of Annual Returns of Income in due time/Assessment status (obtain dates of last three-year filing)

ITRs filed on time and the dates of the same ar as follows:

FY 2020-21 AY 2021-22 Date on 23.02.22

FY 2021-22 AY 2022-23 Date on 26.10.22

FY 2022-23 AY 2023-24 Date on 22.11.23

Whether 85% of Income has been applied towards charitable purposes? If not, has form 9A or form 10 been filed with Income Tax authorities?

Yes, as per Audit F.Y. 2022-23 report 85% Income was applied towards charitable purposes.

Whether Quarterly TDS returns have been filed on time?

There is no TAN Number, so it’s not applicable.

Whether TDS deductions and deposits on specified payments as per the Income Tax Act?

Not Applicable for now.

Whether Form 10B has been filed with Income tax authorities. If yes, please check whether relevant information is matching with audited statements.

Yes, the Relevant Information matches the aud statement.

3. Foreign Contributions (Regulations) Act, 2010

Registration and Renewal under FCRA-FCRA number

As the organisation is not registered under FCR Act, hence it is not applicable.

Filing of returns –date of last return filed-copy of return (FC-4)

N/A

Maintenance of separate bank account exclusively for foreign contributions

N/A

Whether there is intermingling of FC and LC funds

N/A

Whether Utilization Accounts have been intimated in FCRA portal?

N/A

Whether Annual returns match with FCRA audited statements?

N/A

Is there a communications team in place?

The organisation does not have a communication team.

If yes, is there a separate person in charge of Hindi, English and A/V content?

No

Does the organization have a website? If yes, is it being updated on a regular basis?

The organization has a website, but it is not accessible. The management said they are working on it.

Is the organization active over social media (twitter, Facebook, Linked In and Instagram)?

The organization has a presence on Facebook only, but no regular posts are done.

If yes, how frequently are the posts on social media updated? Is a particular person responsible for handling the social media accounts?

The organization does not have any particular person for social media. The organization secretary handles the account.

Are newsletters being published on a monthly basis for internal communication?

The organization does not publish any newsletters.

Are photo/video archives available? If yes, how and where are they stored?

The organization has soft copies of photos and videos from past activities, which are stored on the office laptop.

Are posters and banners being made on a regular basis?

The organization made the posters and banner on a project or event basis.

Are there safeguarding policies regarding communications?

The organization does not have a safeguard policy.

Number of years of existence

The Organisation has existed for the last nine years; it was registered on 22nd September 2014 under the Company Act.

What are the core areas in which the organisation works?

Livelihood, activities, and programs like skills development

1. Board and Management

Constitution of the Board (General Body/Executive Committee/Board of Trustees) as per the Memorandum and Articles of Association/Trust Deed

The organization is registered as a section 8 company under the Company Act 2013 and the constitution of the organisation is established b board of directors. Presently organisation has a board of 3 directors.

Participation of the board members in the meetings - whether all the members regularly participate in the meetings?

The management mentioned that all members participated regularly, but the records were unavailable.

General Body/Governing Body/BOT Meetings organized as per the constitution.

As informed by the management, The organization has conducted the meeting annually as per the company act and byelaws.

Availability of Notice Book/Notice for Board Meetings.

The organization has not maintained the notice book/issued notices for its board meetings.

Has the Change in constitution/structure of Governing Body in the last 3 years been intimated to statutory authorities.

As per the information provided, two changes i members have occurred within the last three years, and updated the changes to the MCA as per Company act.

Has the quorum specified in the Memorandum/bye laws being met in each of the Board meetings.

The organization’s memorandum specifies the quorum under the company section 103. As pe the records, they are following the quorum in board meetings.

Whether any of the Board members are related to each other?

As informed and available records, no board member is related to each other.

Whether there is any conflict-of-interest policy in the memorandum /bye laws or is there a separate policy?

The organization does not have a conflict-of- interest policy.

Whether the memorandum /bye laws/Governance Manual state the method of election, selection, retirement or re appointment of Board Members in case of vacancy? Whether there are any laid down criteria for selection of Board Members?

The method of election, selection, retirement, o reappointment of board members is mentioned in the byelaws.

Is there any payment done to the Board members? If yes, what is the number/percentage of Board members being paid and nature of payments?

No Payment was made to any of the board members.

Whether the Board members are qualified and their membership, if any, with other organizations?

Yes, As informed, they are qualified, and one of the board member has involvement in another organization i.e. Buniyad, Srijan, Vinobaseva Ashram, etc.

1. General

Number of Employees (Full-time, part-time, consulting); (No. within Accounts, Program, Fundraising, HR etc.)

There are no full time and part time staff.

Number of Volunteers (and if they are being paid any honorarium)

The organisation has four non-paid voluntee

Does the HR Policy cover staff recruitment, appointments; procedures; payments; appointment letters? Is it followed through?

The organisation does not have any HR polic

Is there implementation of various social security measures as per the laws of the land like gratuity, PF and other benefits (PF is applicable for organisations exceeding 20 staff)

Currently, the organisation does not have th to implement various social security measur

Mode of Salary/Consultancy charges (cheque/cash)

Not applicable, the organisation does not ha staff.

Is there an organisational Chart available for verification?

The management told us that the organisati chart is being processed. They haven't made

Whether Leaves and Attendance register is maintained for all the staff?

Not applicable, the organisation does not ha staff.

Whether Staff Files are maintained which contains the details of each personnel such as appointment letter, Increment letter, educational qualifications, KYC documents, consent to policies etc.?

Not applicable, the organisation does not ha staff.

Is there a staff appraisal system?

Not applicable, the organisation does not ha staff.

Gender Ratio (Gender Diversity)

Not applicable, the organisation does not ha staff.

Social Composition of staff (Social Diversity)

Not applicable, the organisation does not ha staff.

Details about second line leadership

As per the interaction with the founder, ther one for the second-line leadership. He menti he is looking for someone to recruit a suitabl candidate who can look at the program strategically.

Is the staff responsible (for finance, program, MEL, research, etc. department) suitably qualified and experienced?

The organisation does not have any staff.

Is there a frequent turnover of staff?

The organization does not have any staff.

Whether all the adjustments from payroll on account of leave etc. made after receiving proper authorisation from the competent authority?

Not applicable, the organisation does not ha staff.

Whether the accounts department maintaining salary register regarding the salaries paid?

Not applicable, the organisation does not ha staff.

Financial Policy

The organisation does not have a finance

HR Policy

The organisation does not have an HR Po

Child Protection Policy

The organisation does not have an Child Policy.

Prevention of Sexual Harassment Policy

The organisation does not have a preven harassment policy.

Communication Policy

The organisation does not have a commu policy.

Vision or mission statement of organisation (5-year plan etc.)

The organisation does not have a vision or statement.

Organisation’s strategy documents or any perspective papers

The organization does not have any specifi or perspective papers.

Documentation of the values of the organisation

The Organisation does not have any forma

Areas of work done (State/District/Village)

Currently, the organisation works in 2 stat and Madhya Pradesh. In Delhi- East Delhi, Delhi.

In Madhya Pradesh, the organisation exists Rajgarh district, with three blocks and 25 V

Target communities (Number and Nature)

The target communities are women, girls, and from the marginalized section of socie

Key themes/sectors of program intervention

The organisation's key themes are liveliho through stitching, designing, awareness an accessibility of social schemes and gender health, collective networking, and capacity

Availability of program reports/annual reports

The organisation does not have any progra annual reports.

Availability of documents regarding activities at the organization level (2 years)

The organisation has Case studies and dat skilled development from the past program USHA.

Describe the government relations of the organization.

The organisation does not have any relatio contact with the government. The manage hasn’t planned yet either.

Mode of data collection (Manual/Online)

The organisation uses the data collection me both manual and online, when required to m the donor's needs.

Please comment on the available monitoring and evaluation documents (log frame, impact evaluation, learning documents, theory of change)

The Organisation does not have any monitor evaluation documents, log frame etc.

Please comment on the qualifications and experience of the staff responsible for MEL.

The organisation does not have qualified and experienced personnel for Monitoring and Evaluation.

Please comment on the current method(s) of fundraising.

The organisation does not have any method o fundraising.

Please comment on the qualifications and experience of the staff responsible for fundraising.

The organisation does not have professional experience in fundraising. As of now, only Har Ji has raised funds through his contacts.

Who are the current donors, or sources of funding (in detail)?

Currently, the organisation is supported only USHA CSR and individual donors.

Are contracts available between donor agency and organization?

The organisation has the contract between th USHA CSR and DAF.

Please comment on any existing proposals?

The management mentioned some proposals the pipeline with MHI, APF, and Heidelburg.

Main challenges faced during fundraising

The management mentioned challenges like proposal writing, identification of donor agenc not being updated on the market, and not hav a professional team.

What is the reporting (narrative, finance) process to funders?

The management mentioned that the funders have requested only the data every month.

What are the key priorities for fundraising of the organization for the next 2 years?

The organisation's management mentioned th their priorities for their program are capacity building, livelihood, and social security schem

1. Budgetary Controls

Is an annual budget prepared for the whole organization giving breakup of Programme Expenditure and Administrative expenditure?

As informed, no annual Budget was prepared the organization.

Is there project budget for specific donors (donor reporting to be taken as sample)

There is no specific 100% donor funded progr running in the organisation.

Is actual expenditure and income measured against the budget at regular intervals? At what intervals? Who reviews these?

As informed, yes, but no such reports or minu seen in this regards.

2. Accounting Records

Are the following accounting records accurate and up-to-date?

Cash Book (Cash and Bank)- Check the Date of last entry

Last updated till 30th June 2023, books of accounts are pending from the last 6 months the time of review visit.

Do the accounting records clearly identify funds given for a specific purpose (Fund/Project wise Accounting)

There are no specific funds in the organization hence it is not applicable for now.

Method of Accounting followed - cash or accrual?

Accrual basis

Whether the organization is having computerized accounting software i.e. Tally ERP 9 or any other accounting software?

Yes, Books are maintained on tally ERP 9 software.

Whether the heads of expenditure commensurate with the budget heads and whether the supporting relate to the head of account in which the expense is booked?

Not applicable as no program is currently run in the organisation.

Are the vouchers manual or software generated?

Yes, all vouchers are Software generated.

Does the voucher have sufficient information related to the transaction i.e. Date, amount, Nature of expenditure, Project, etc.

No, Vouchers don’t have sufficient informatio like the nature of expenditure etc.

1. Expenditure Controls

Is all expenditure authorized by a senior member of staff? Who is the authorized staff member? (Names of authorized signatories)

Yes, all payments are authorized by the Di

Are payments made only against an original invoice?

Yes, all payments were made against on o invoice.

2. Purchase Controls

Is there an adequate system for procurement? Are several quotes obtained?

No financial limit is defined by the organis taking quotations and as there is no high v purchase in the organisation, hence it is n applicable as well.

Are comparative statements of quotations prepared and approved?

There is no such procurement system foun organisation.

Are invoices matched against orders?

There is no such procurement system foun organisation.

3. Bank Accounts

Are all accounts opened in the name of the organization? (Saving accounts are preferred)

Yes, all accounts opened in the name of th organization.

Are there cheque signing procedures in place (single signatory, joint signatories etc.)

The Joint Signatory mode of operation is b followed by the organisation.

Are blank cheques ever pre-signed? If yes, how this can be avoided?

No such practice followed, and no blank si cheques were found at the time of review.

Are cheques written for as many payments as possible? (are banking transactions happening in most cases?)

Yes, all payments are made by cheques.

Are bank accounts reconciled each time a statement is received or at least monthly? Date of last reconciliation?

The monthly Basis Bank Reconciliation Sta Has been Prepared and file maintained. D Reconciliation June 2023.

What happens to cancelled cheques?

File maintains for Cancelled cheque.

In case of a single bank Account, is there any system – bank reconciliation or other to identify the balances in each project?

there is no multiple projects in the organiz

4. Cash Transactions

Is cash kept securely? Who holds the keys?

As there is no cash transaction so this sec applicable

Is a numbered receipt issued for cash received?

N/A

Does someone other than the cashier authorizes payments?

N/A

Is the cash counted regularly by a senior member of staff in the cashier’s presence? Date when last verification took place.

N/A

Is there any cash transaction limit (Cannot exceed INR 10,000/day to one vendor)

N/A

Is there any threshold limit of holding cash at a time.

N/A

5. Physical Controls

Is there a record of all fixed assets owned?

Not applicable, as informed organisation d have any assets.

Is this record updated regularly? Date of last entry

N/A

Is the insurance cover sufficient for the current value of the items owned?

N/A

Do all the fixed assets shown in the accounts exist? How are the items controlled that are no longer needed?

N/A

Are all items owned kept securely?

N/A

Are any vehicles used for personal purposes? Is there a record for it and is the amount being refunded?

N/A

Are assets donated to organization recorded in the Fixed Assets Register?

N/A

Is physical verification of fixed assets undertaken? If so, what is the periodicity?

N/A

6. Audits

Procedure for appointment of Auditors whether the same has been spelt out in the bye laws/relevant document in place?

Yes, it’s explained in the MoA.

Whether the statutory auditor has been appointed in the General Body/Board?

Yes, the statutory auditor has been appoin General Body meeting.

Whether appointment letter/Contract has been issued by the organization?

The organization has not issued any appoi letter to the auditors.

Whether audit is undertaken at organization’s office?

No, the audit was undertaken at CA’s Offic

Whether audited statements include fund-wise statements so as to reflect clear segregation of different funds?

Not applicable as orgnisation is not runnin projects.

Whether Audit is completed within August of the following year?

No, the audit for the last f/y was complete month of October 23.

Does the Auditor provide Management letter/Observations conducted at the time of audit?

No, the auditor has not issued a managem Observations letter.

Policy on Rotation of Auditors

No such policy or clause is found in the by

Whether the independence of auditor being observed with respect to the following:

1. Is a relative of a Board member or CEO?
2. Is he engaged in providing services pertaining to organizational financial systems including preparation of books of account?
3. Is he a part of the management?
4. Is he Chief Functionary of any other NGO?

As explained by the management, the aud connected to any board member or team member. NA

1. Registration

Proper Registration as a legal entity

The organisation is registered on 22nd Sep 2014 as a section 8 company under Compa 2013, the CIN U74999DL2014NPL271734 d

22.09. 2014,

Filing of Returns with the Registrar of Societies

/Renewals societies as and when required / companies act or the specific state trust law as required along with the Minutes of the General Body/Annual Report/ Annual audited statements

Yes, the ROC documents form 4 and form 7 Submitted 28 Oct 2023.

Amendments made if any in the bye-laws or the constitution are properly documented and filed with the Registrar or the respective authority

As per the information provided, two chang members have occurred within the last thr and update the change the director on MC website.

2. Income Tax Act

Registration and renewal under section 12A & 80-G

12A & 80G registration valid A. Y. 2026-27

Obtaining PAN /TAN from the IT department

Pan : Yes TAN : None

Filing of Annual Returns of Income in due time/Assessment status (obtain dates of last three- year filing)

Yes, ITRs were filled on time. The date of fil three years are as follows.

• AY 21-22: 5 Jan, 2022
• AY 22-23: 22 Oct, 2022
• AY 23-24: 27 Oct 2023

Whether 85% of Income has been applied towards charitable purposes? If not, has form 9A or form 10 been filed with Income Tax authorities?

Yes, as per Audit report 85% Income was a towards charitable purposes.

Whether Quarterly TDS returns have been filed on time?

There is no TAN Number. so, its not applica

Whether TDS deductions and deposits on specified payments as per the Income Tax Act?

N/A

Whether Form 10B has been filed with Income tax authorities. If yes, please check whether relevant information is matching with audited statements.

Yes, the Relevant Information matches the statement.

3. Foreign Contributions (Regulations) Act, 2010

Registration and Renewal under FCRA-FCRA number

The organisation is not registered under FC 2010, hence it is not applicable.

Filing of returns –date of last return filed-copy of return (FC-4)

N/A

Maintenance of separate bank account exclusively for foreign contributions

N/A

Whether there is intermingling of FC and LC funds

N/A

Whether Utilization Accounts have been intimated in FCRA portal?

N/A

Whether Annual returns match with FCRA audited statements?

N/A

Is there a communications team in place?

The organisation does not have a communic team.

If yes, is there a separate person in charge of Hindi, English and A/V content?

N/A

Does the organization have a website? If yes, is it being updated on a regular basis?

The organization does not have a website.

Is the organization active over social media (twitter, Facebook, Linked In and Instagram)?

The organization does not have any social m pages.

If yes, how frequently are the posts on social media updated? Is a particular person responsible for handling the social media accounts?

N/A

Are newsletters being published on a monthly basis for internal communication?

No. The organization did not publish any mo letters for internal communication.

Are photo/video archives available? If yes, how and where are they stored?

The organization has soft copies of photos a videos stored on a hard disk.

Are posters and banners being made on a regular basis?

The org does not have any posters and ban a regular basis. Only the program launch w in Delhi.

Are there safeguarding policies regarding communications?

The organization does not have safeguardin policies.

Number of years of existence:

What are the core areas in which the organisation works?

Has there been any political backlash?

Board and Management

Constitution of the Board (General Body/Executive Committee/Board of Trustees) as per the Memorandum and Articles of Association/Trust Deed

Participation of the board members in the meetings - whether all the members are regularly participating in the meetings?

General Body/Governing Body/BOT Meetings organized as per the constitution.

Availability of Notice Book/Notice for Board Meetings.

Has the Change in constitution/structure of Governing Body in the last 3 years been intimated to statutory authorities.

Has the quorum specified in the Memorandum/bye laws being met in each of the Board meetings.

Whether any of the Board members are related to each other?

Whether there is any conflict-of-interest policy in the memorandum /bye laws or is there a separate policy?

Whether the memorandum /bye laws/Governance Manual state the method of election, selection, retirement or re appointment of Board Members in case of vacancy? Whether there are any laid down criteria for selection of Board Members?

Is there any payment done to the Board members? If yes, what is the number/percentage of Board members being paid and nature of payments?

Whether the Board members are qualified and their membership, if any, with other organizations?

General

Number of Employees (Full-time, part-time, consulting); (No. within Accounts, Program, Fundraising, HR etc.

Number of Volunteers (and if they are being paid any honorarium)

Does the HR Policy cover staff recruitment, appointments; procedures; payments; appointment letters? Is it followed through?

Is there implementation of various social security measures as per the laws of the land like gratuity, PF and other benefits (PF is applicable for organizations exceeding 20 staff)

Mode of Salary/Consultancy charges (cheque/cash)

Is there an organizational Chart available for verification?

Whether Leaves and Attendance register is maintained for all the staff?

Whether Staff Files are maintained which contains the details of each personnel such as appointment letter, Increment letter, educational qualifications, KYC documents, consent to policies etc.?

Is there a staff appraisal system?

Gender Ratio (Gender Diversity)

Details about second-line leadership

Is the staff responsible (for finance, program, MEL, research, etc. department) suitably qualified and experienced?

Is there a frequent turnover of staff?

Whether all the adjustments from payroll on account of leave etc. made after receiving proper authorization from the competent authority?

Whether the accounts department maintaining salary register regarding the salaries paid?

Financial Policy

HR Policy

Child Protection Policy

Prevention of Sexual Harassment Policy

Communication Policy

Other Remarks: The policies have not been approved by the board.

Vision or mission statement of organization (5-year plan etc.)

Organization’s strategy documents or any perspective papers

Documentation of values of the organisation

Areas of work done (State/District/Village)

Target communities (Number and Nature)

Key themes/sectors of program intervention

Availability of program reports/annual reports

Availability of documents regarding activities at the organization level (2 years)

Describe the government relations of the organization.

Mode of data collection (Manual/Online)

Please comment on the available monitoring and evaluation documents (log frame, impact evaluation, learning documents, theory of change)

Please comment on the qualifications and experience of the staff responsible for MEL

Please comment on the current method(s) of fundraising.

Please comment on the qualifications and experience of the staff responsible for fundraising.

Who are the current donors, or sources of funding (in detail)?

Are contracts available between donor agency and organization?

Please comment on any existing proposals?

Main challenges faced during fundraising.

What is the reporting (narrative, finance) process to funders?

What is the status of funds for following 3 years? Are there available funds?

What are the modes of fundraising that the organization hopes to explore in the future. Are there specific donors/mode that the organization wishes to target?

Is there capacity to diversify fundraising? (Individual, Corporate, Institutional)

What are the key priorities for fundraising of the organization for the next 2 years?

1. Budgetary Controls

Is an annual budget prepared for the whole organization giving breakup of Programme Expenditure and Administrative expenditure?

Is there project budget for specific donors (donor reporting to be taken as sample)

Is actual expenditure and income measured against the budget at regular intervals? At what intervals? Who reviews these?

Are explanations noted for significant variances?

2. Accounting Records

Are the following accounting records accurate and up-to-date?

Cash Book (Cash and Bank)- Check the Date of last entry

Petty Cash (if maintained)

1. Petty Cash Book
2. Date of last entry

Other Records

1. Ledger
2. Salaries and Wages records
3. Staff Advances

Is the governing body presented with summaries of accounting information? Date when last presented? (Check the minutes/email)

Do the accounting records clearly identify funds given for a specific purpose (Fund/Project wise Accounting)

Is sufficient information available to report back to each donor in the way requested? Have such reports been produced in the past years?

Maintenance of Subsidiary Records such as Fixed Assets Register, Stationery Stock Register, Phone Log Book, Vehicle Log Book etc.

Method of Accounting followed - cash or accrual?

Whether the organization is having computerized accounting software i.e. Tally ERP 9 or any other accounting software?

Whether the heads of expenditure commensurate with the budget heads and whether the supporting relate to the head of account in which the expense is booked?

Whether the organization has any monthly reporting system for internal decision making?

Whether backup of the accounting records taken/ what is the frequency?

Are the vouchers manual or software generated?

Does the voucher have sufficient information related to the transaction i.e. Date, amount, Nature of expenditure, Project, etc.

1. Expenditure Controls

Is all expenditure authorized by a senior member of staff? Who is the authorized staff member? (Names of authorized signatories)

Does different staff authorize payments to those who prepare and sign cheques?

Is there an adequate segregation of financial duties? For Example, Accountant and cashier are the same person?

Are payments made only against an original invoice?

2. Purchase Controls

Is there a financial limit above which the quotations need to be obtained?

Is there an adequate system for procurement? Are several quotes obtained?

Are comparative statements of quotations prepared and approved?

Are invoices matched against orders?

Is there a regular stock taking of goods? Is a stock register maintained? (If stock is available) Date for last stock taking?

3. Bank Accounts

Are all accounts opened in the name of the organization? (Saving accounts are preferred)

Are there cheque signing procedures in place (single signatory, joint signatories etc.)

Are blank cheques ever pre-signed? If yes, how this can be avoided?

Are bank accounts reconciled each time a statement is received or at least monthly? Date of last reconciliation?

What happens to cancelled cheques?

Are separate Bank Accounts opened for separate Projects (if needed)?

In case of a single bank Account, is there any system – bank reconciliation or other to identify the balances in each project?

4. Cash Transactions

Is cash kept securely? Who holds the keys?

Is a numbered receipt issued for cash received?

Does someone other than the cashier authorizes payments?

Is the cash counted regularly by a senior member of staff in the cashier’s presence? Date when last verification took place.

Is there any cash transaction limit (Cannot exceed INR 10,000/day to one vendor)

Is there any threshold limit of holding cash at a time.

5. Physical Controls

Is there a record of all fixed assets owned?

Is this record updated regularly? Date of last entry

Is the insurance cover sufficient for the current value of the items owned?

Do all the fixed assets shown in the accounts exist? How are the items controlled that are no longer needed?

Are all items owned kept securely?

Are any vehicles used for personal purposes? Is there a record for it and is the amount being refunded?

Are assets donated to organization recorded in the Fixed Assets Register?

Is physical verification of fixed assets undertaken? If so, what is the periodicity?

6. Audits

Procedure for appointment of Auditors whether the same has been spelt out in the bye laws/relevant document in place?

Whether the statutory auditor has been appointed in the General Body/Board?

Whether appointment letter/Contract has been issued by the organization?

Whether audit is undertaken at organization’s office?

Whether audited statements include fund-wise statements so as to reflect clear segregation of different funds?

Whether Audit is completed within August of the following year?

Does the Auditor provide Management letter/Observations conducted at the time of audit?

Policy on Rotation of Auditors

Whether the independence of auditor being observed with respect to the following:

1. Is a relative of a Board member or CEO?
2. Is he engaged in providing services pertaining to organizational financial systems including preparation of books of account?
3. Is he a part of the management?
4. Is he Chief Functionary of any other NGO?

1. Registration

Proper Registration as a legal entity

Filing of Returns with the Registrar of Societies

/Renewals societies as and when required / companies act or the specific state trust law as required along with the Minutes of the General Body/Annual Report/ Annual audited statements

Amendments made if any in the bye-laws or the constitution are properly documented and filed with the Registrar or the respective authority

2. Income Tax Act

Registration and renewal under section 12A & 80-G

Obtaining PAN /TAN from the IT department

Filing of Annual Returns of Income in due time/Assessment status (obtain dates of last three-year filing)

Whether 85% of Income has been applied towards charitable purposes? If not, has form 9A or form 10 been filed with Income Tax authorities?

Whether Quarterly TDS returns have been filed on time?

Whether TDS deductions and deposits on specified payments as per the Income Tax Act?

Whether Form 10B has been filed with Income tax authorities. If yes, please check whether relevant information is matching with audited statements.

3. Foreign Contributions (Regulations) Act, 2010

Registration and Renewal under FCRA-FCRA number

Filing of returns –date of last return filed-copy of return (FC-4)

Maintenance of separate bank account exclusively for foreign contributions

Whether there is intermingling of FC and LC funds

Whether Utilization Accounts have been intimated in FCRA portal?

Whether Annual returns match with FCRA audited statements?

Is there a communications team in place?

If yes, is there a separate person in charge of Hindi, English and A/V content?

Does the organization have a website? If yes, is it being updated on a regular basis?

Is the organization active over social media (twitter, Facebook, Linked In and Instagram)?

If yes, how frequently are the posts on social media updated? Is a particular person responsible for handling the social media accounts?

Are newsletters being published on a monthly basis for internal communication?

Are photo/video archives available? If yes, how and where are they stored?

Are posters and banners being made on a regular basis?

Are there safeguarding policies regarding communications?