Paropakar Primary Health Care Centre (PPUK), Kavre
Our NGO receives funds from the following sources:
· Dollar supported project fund.
· Membership fees.
· Income from short term professional services and consultancy assignments undertaken by NGO.
· Grants Donations received from philanthropic organizations and individuals.
2. NGO Core Fund
The following are identified as NGO’s core programme:
· NGO’s administrative expenses (house rent, utilities, administrative officer, peon).
· Any programme coming to NGO must allocate some funds to support this core programme.
3 Signatories to Cheque Books
The President of NGO, its Treasurer and one other office bearer will be signatory to NGO’s cheques. Money can be released by the signatures of two signatories.
4. Types of Accounts
The following Two types of accounts will be maintained by NGO:
(1) Central Account
All income accrued to NGO will be deposited in the Central Account. The President, Secretary General and Treasurer are authorized to operate the bank account. Two signatures of either of these officials will be required for fund disbursement.
(2) Savings Account
NGO will keep fixed deposit savings account for its trust fund.
5. Fund Disbursement
All payments are made either by cheque or cash.
6. Payment by Cheque
(1) Payment for Purchases
Payment against purchases exceeding 10000 Rs shall be made by cheque.
(2) Payment for Services Rendered
a. Payments for Staff Salaries
i . Payment Calendar
Staff salaries are paid within seven days following the completion of the month. Individual cheques are to be issued to the employee concerned.
ii. Staff payroll
Staff payroll (salary sheet) is prepared by the Accountant as the basis of payment. The staff payroll contains information on the employees’ basic salary for the month, allowances if any, deductions and net salary payable. The staff payroll is checked by the Treasurer and/or Secretary General and approved for payment by the Executive Director.
iii. Advance Pay
NGO’s employees may take advance payment of up to 3 months (after completion of 3 months probation), if urgently required. The advance must be returned/reimbursed before the end of that particular fiscal year.
For travel purposes, NGO employees shall be given cash advances for expenses covered on official trips. Request for cash advances is prepared by the personnel concerned, recommended by the Treasurer or General Secretary and is approved by the President. All cash advances for travel are to be liquidated within a week following the completion of the trip.
iv. Tax Deduction at Source
NGO will deduct tax at source where applicable as per Government rules.
7. Payment for Contractual Services
Payment for contractual services is done through cheque disbursements. The schedule of payment depends on the Terms of Reference (TOR) agreed upon by the personnel concerned and NGO. Payments are covered by a Request for Payment Form prepared by the accountant and approved by the Executive Director.
8. Procedures for Fund Disbursements
· All requests for payments are to be made using the appropriate forms.
· Requests for payments are to be properly substantiated with bills/receipts and essential documents.
· Requests for payments are prepared by accountant and submitted to Executive Director for checking and approval.
9. Book Keeping and Recording
9.1 Book Keeping
The recording system of NGO’s financial transactions allows to monitor bank balances, status of funds receipts and expenditures, and a comparative statement of budget vs. actual expenditure on a regular basis. NGO will maintain records of fixed assets, petty cash disbursements, supplies, inventory, the use and maintenance of office equipment.
The following sets of financial reports will be prepared by NGO:
A. Quarterly financial reports will be prepared for review by each individual project manager of NGO’s specific projects as well as of its core activities. This quarterly report will be reviewed by the Board of NGO. Financial reports to donors will be submitted as prescribed in the agreement between donors and NGO.
B. Annual Balance Sheet and Statement of Income and Expenditures will prepared for each fiscal year.
Books of Accounts of NGO shall be audited annually by an independent auditor appointed by the General Assembly. NGO may hire internal auditor in order to streamline its accounting systems and procedures.