Enhancing Credibility Presentation by Subhash Mittal Nurturing Partnerships for Developing...

Enhancing Credibility

Presentation by Subhash MittalNurturing Partnerships for Developing Sustainable CSOs IIC, February 19, 2010

Presentation by Subhash Mittal IIC, New Delhi, 19 Feb 2010

Approach

Developing a Transparency & Accountability Framework


Accountability Framework

Overall Objective To operate in a transparent manner

and be accountable to its main stakeholders.


Strategy for achieving the objective

Installing a strong internal control environment which enhances transparency.

Identifying accountability needs /requirements of main stakeholders.

Putting in a system which helps fulfil these requirements.


Main Stakeholders

Members/Trustees of the Society / Trust

Employees Fund Providers Government Communities


Members / Trustees

Byelaws / Trust Deed generally requires annual audited accounts to be presented and approved in General Meeting

Mostly medium to large CSOs provide Annual Reports covering audited accounts as well as activity report.


Fund providers

Institutional Donors- Providing reports and complying

with agreement terms.- Agrees to independent audits /

evaluations.- Provides Utilisation Certificates


Fund providers………. Cont’d

Individuals Providing reports / information to the

donors (challenge how to keep donor satisfied so that s/he continues to provide donations)

Keeping donor involved in what you are doing so that her / his interest in the organisation / activity continues (desired)


GOVERNMENT

Income Tax Audited accounts to be filed with Income Tax

authorities alongwith an annual return (Form 10B). Applying for renewal of S. 80G exemptions.

(authority to issue tax-exempt receipts to individual donors).

Compliance with tax withholding provisions. Withholding (TDS) returns to be filed regularly.

FCRA Annual audited return to be filed with Ministry of

Home Affairs.


Employees

Paying dues as agreed to. Creating working conditions which are

conducive to work. Keeping employees informed of major

developments within organisation. Staff Development (desired)


Communities No defined accountability parameters

(challenge)From donor perspective Best accountability of utilisation of funds

can come from community – develop social audit strategies which are part of program strategies

From the CSOs point of view Sustainability of activity Scope for community to even fund the

activities


Transparency framework

Within organisation A good internal control system helps

ensure transparency over activities after elapse of time

Documentation of procedures makes everyone aware of processes, reducing scope for arbitrariness


Transparency framework ………cont’d

Outside organisation Providing sufficient details about the

CSO’s activities both physicals as well as financials will help provide credibility about the organisation to the public at large

Wherever possible provide information in the format that it is easy to compare.


Strong Suggestion

Each CSO must develop a written Accountability & transparency framework for itself. This would help generate strong credibility with its stakeholders.


Thank you.

Enhancing Credibility Presentation by Subhash Mittal Nurturing Partnerships for Developing...

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