Organized by

Financial Management Service Foundation

on

7th and 8

th March, 2008

Financial Management Service Foundation

“Accountability House”

A-5, Sector 26, NOIDA - 201301

Ph: 0120-2546732, 33, 44, 45

Email : fmsf@fmsfindia.org

Report on the Workshop on Social Accountability Standards

Overall Objective of the Workshop

Social Accountability as a part of governance mechanism of NGOs has been in the focus of

FMSF in the recent years. In fact, Social accountability is an issue most of the development

organisations are trying to deal with in their own contexts. However, difficulty in formulating it

in a comprehensive and integrated manner caused it to be a nebulous idea for a long time. In the

light of above drawback, FMSF started the process of developing some benchmark on Social

Accountability by holding Consultations and Workshops on this topic with voluntary

organisations in the last few years. The process of consultations and workshop resulted into

working out eleven “Social Accountability Standards” by consolidating tools and practices

developed for enhancing the accountability of the NGOs. These Standards were published into a

book named “Social Accountability Standards for Voluntary Organisations” by FMSF on March,

2007.

FMSF has further realized that these Social Accountability Standards (SAS) need to be evolved

and integrated into the organizational systems which will enable us to move forward from a

“conceptual” level to an “implementing” level.

The following Social Accountability Standards (SAS) are developed by FMSF:-

• Fundamental Documents (SAS 1)

• Trustees and Board Members (SAS 2)

• Meetings and Resolutions (SAS 3)

• Accounting Policies (SAS 4)

• Social Accountability Reports (SAS 5)

• Staff Policies (SAS 6)

• Appointment and Independence of Auditors (SAS 7)

• Social Audit (SAS 8)

• Own means of contribution and Non-Monetized Assets (SAS 9)

• Ratio Analysis (SAS 10)

• Linking Programme with Finances (SAS 11)

FMSF is in the process of taking forward these Standards among its partner and associate

organizations. To begin with, the first 5 Standards are being taken up and are discussed in a 2 day

workshop. The first slot of this workshop for the Northern Region was organized on 30th & 31st

July, 2007 at NOIDA.

This workshop is the second slot for the Southern Region which was organized in Bangalore on

7th & 8

th March, 2008.

Participants

About 34 participants from various development organizations and funding agencies located in

the Southern States participated in this workshop.

[ Refer Annexure No.1 for the list of participants ]

Resource Team

The team of resource persons for this workshop included the following persons:

♦ Mr. Sanjay Patra, Executive Director, FMSF

♦ Mr. Manoj Fogla, Chartered Accountant, Cuttack

Resource Material

Each participant was provided with the publication of FMSF “Social Accountability Standards for

Voluntary Organisations” written by Mr. Manoj Fogla.

Methodologies and Techniques used

The process included 5 technical sessions on five Social Accountability Standards (SAS) for two

days. Each Technical Session had an input session which was followed by case study exercises,

group discussions and interaction. The workshop was facilitated jointly by Mr.Sanjay Patra, and

Mr. Manoj Fogla. The tentative schedule is enclosed herewith for your reference. The

methodology will be participatory. The participants were provided with the book on Social

Accountability Standards as part of the resource kit.

Schedule

The schedule of the workshop is attached to this report as per Annexure No. II.

Proceedings for Day 1 - (07.03.2008)

Welcome & Introduction of resource persons & participants :

The workshop began with a welcome note by

Sanjay Patra followed by a round of

introduction of participants and the resource

team.

The process of “Expectation Mapping” was

initiated whereby the participants were asked to

write a topic that they expect to be discussed in

the two day workshop. Expectation Mapping

process was assimilated by Ms. S. P. Selvi,

FMSF. The topics expressed by the participants

included the following which were assimilated :

• Responsibility towards the Society

• Answerable to the Community

• Accountability to the cause & to the Stakeholders

• Answerable to the Community upwards and downwards

• Accountability to target groups, stakeholders and funding organizations

• Accountability for each Rupee & Reporting

• Transparency, good planning, reports & documentation, budget analysis Vs cashflow,

projects and financial management

• Programme and Financial Transparency

• Value for Money

• Transparency and Proper Systems

• Value time & resources

• Being transparent in our existence as NGO with our clients

• Being responsible to our clients

• Challenges before NGO; Legal Obligations

• Social Audit, Documentation & Reporting

From the topics expressed, the Objective of the workshop was articulated by the Resource Team

and the colleagues from EED.

Specific Objectives Articulated :

• defining Social Accountability ;

• to get a better understanding ;

• to ensure social accountability through systems

& standards ;

• with participation of stakeholders ;

• considering risks and challenges.

Sanjay informed that in the two day discussions the concept and practice relating to upholding of

Accountability & Transparency will be taken up in the organizational governance, holding

meetings, laying of policies etc. Regarding Social Audit, as this will require a separate workshop

of 2 days, it will not be possible to take it up in detail but will provide an overview of the same.

Session : Voluntary Sector & Accountability

Before taking up the Social Accountability Standard 1, Sanjay provided an overview of evolution

of the Voluntary Sector & the Accountability dimension. Going back to history, he informed that

Government downloaded more responsibilities to NGOs over the years. This increased the

importance and role of NGOs. As more and more international organizations started supporting

small organizations the profile of such small organizations grew big. In this scenario, importance

was not given to establishing systems and practices. There are instances where we find even large

organizations dealing in huge funds function with 2 accountants with manual system of

accounting. The need is the systematic addressing of issues faced by voluntary organizations.

FMSF, realizing the need for standardized common practices started working on research.

Focusing on the Accountability dimension, Sanjay informed that during ‘90s, voluntary

organizations when asked about accounts used to take it as loss of trust on them. However, things

have now changed considerably. In the discussion regarding accountability, he stated that “ mere

compliance” is not accountability, but is part of accountability. Accountability goes beyond mere

compliances and is larger than issues. Compliance contributes to accountability. When we think

about one organization to whom an NGO is accountable foremost, we realize that accountability

actually comes from within and that “people” are the most important stakeholder. But there is a

dilemma that NGOs always face between donors, the State and the beneficiaries.

Comparing Corporate Organisations with NGOs, he informed that stakeholders in a company are

the shareholders and the consumers. A company cannot exist without them. The pressure is from

both sides. If they do not perform, the consumer may reject its product. The consumer is the most

powerful and may go to another company. In NGOs this power is not there with the beneficiaries

and are not in a position to measure the quality of the service rendered by the NGO. It was

informed that Corporates have reciprocal accountability and the challenge for NGOs is how to

ensure downward accountability.

With this the session on Accountability and Voluntary Sector concluded.

Session : SAS 1 – Fundamental Documents

This session was facilitated by Mr. Manoj Fogla. Reflecting on the earlier session on

accountability of NGOs to various stakeholders, he stated that every stakeholder is going to have

effect which may not be similar. The bargaining power is not with the stakeholder. We may

bargain with some stakeholders as they may not be in the picture or may not be the primary

stakeholder. However, the question is how do we become effective at the end of the day.

Regarding fundamental documents, it was informed that the objective of registration is to enjoy

certain privileges. Registration of a charitable activity is to primarily avail certain exemptions &

privileges. Once registered, an NGO attains the legal identity and is treated as an artificial legal

person which can sue and be sued. He went on to explain the importance of the following

fundamental documents.

-Trust Deed or Memorandum of

Association

-Bye-Laws

-Project contracts

It was informed that these documents form

the basis of NGO constitution and

governance and should be drafted properly

and carefully otherwise can endanger the

exemptions and privileges. Service Rules &

Manual are sub documents. Project

Agreement with the donors is also one of the

fundamental documents. Memorandum of

Understanding (MoU) is a document in lieu

of a contract.

It was informed that the Trust Deed or Memorandum of Association of an organization speaks of

the policy of that organization. It declares the not-for-profit nature of the organization. NGOs can

engage themselves in incidental business activity, the net profit of which is treated like a grant,

i.e., to be applied for the objects for which the organisation is formed.

The recent budget 2008, brought out a change in the definition of charitable organization. It states

that those engaging in trade, commerce will have to pay tax. Once the rules come out it will

become more clear.

Manoj also informed regarding distribution of assets on dissolution. He stated that clarity is

required between Corpus Assets and Project Assets. A Trust by itself cannot be dissolved. It can

be dissolved only if the Trust Deed provides for it or if the purpose is achieved. However, a

Society can be dissolved. Also clarity about Project Assets after the project is over is very

important. If these assets go back to the organization, it becomes Corpus Assets.

Articles of Association speak of how to run an organization. It is a legal document containing

rules and regulations to govern, manage and conduct the affairs of an NGO.

It is to be filed along with the MoA and should ideally address the following issues:

• interpretation of expressions used.

• requirements pertaining to notice, frequency, quorum of Board and General meetings

Regarding “proxy”, it was explained that it means a representative of a person duly authorized to

represent. Regarding relevance of “proxy” in an NGO, it was explained that in a General

Meeting, members may be from all over the country. As the organization cannot afford to pay for

the travel of all its members which in some instances comes more than 100. In such instances

“proxy” can be had. However, it should be ensured that “proxies” should not be there for quorum.

It was also informed that “proxy” in Board Meeting should not be counted.

Regarding Project Contracts, it was informed that the contract clauses needs to be take care of

probable changes that might occur during project implementation. For example, changes might

take place in budgeting, project period i.e., extension of project period, purpose of a particular

programme might change due to natural calamities or the activities intended may not match with

the grassroot realities.

Regarding “indemnity”, it was informed that it is meant to take care of loss incurred by the other

party if it sustains any loss due to our negligence. In the indemnification clause, it was suggested

to put a financial limit otherwise it will have to be decided by court. In the case of Corporates,

this issue is not there as they are formed with a limited liability.

Following the above discussion and inputs, case study exercise on “Fundamental Documents”

was provided for group work. The issues in the case study were built around the inputs provided

and helped in generating discussions among the participants.

Session : SAS 2 - Trustees and Board Members

The above session was continued wherein Manoj informed the difference between Governance

and Management. Governance relates more with policy matters and Management is responsible

for implementation of those policies. Governance is the apex body of accountability and is the

ultimate point for accountability which takes the responsibility for the actions / decisions. It is the

prerogative of the Governing Body to take the management by itself or delegate it to other level.

But in general, it is not advisable for the Board to take up / or interfere in the day-to-day

management of the organisation. Executive Director is the representative of the Board. The other

aspect is that, the Board members are also the Directors, out of which one person is designated as

Executive Director and is delegated with specific role and responsibility. It was informed that a

Board member cannot be paid salary for being a Board member.

He further informed that as NGOs deal with public money for public utility purposes, they

should, therefore, exemplify openness and transparency. The shortcoming is noticed in their

struggle in defining role and responsibilities of the trustees which results in governance

imbalance. It was suggested to have a desirable criteria for selection and rotation of trustees to

overcome this shortcoming, whereby the Board members possess diversified skills and ability to

exercise authority.

Regarding composition of the Board, it was informed that the Board member should possess the

required skills that is useful to the organisation. Manoj further informed that in some instances, it

has been noted that the entire Board is created out of the target community who are not

empowered adequately to take part in the decision making of the organisation.

Regarding election / selection of Board members, it was informed about the need to have an open

process in the induction of a new Board member. In many instances, it has been seen that the

Board members do not know about when a new member comes in or when a member goes out

while other stakeholders & staff are aware of it. He also informed that replacement of the entire

board should be avoided. In this aspect, he drew attention to the FCRA law which requires

reporting if more than 50% of the Board members change.

Regarding Board Processes, it was informed that it is important to include orientation of a

member at the time of induction itself. The core expertise of the member is to be made useful to

the organisation by assigning responsibilities accordingly. For example, if a member has finance

expertise, to make him part of the Finance Committee of the organisation so that his financial

skills are used for the benefit of the organisation.

Regarding Conflict of Interest, it was informed

that care should be taken in this areas. He also

suggested to define a policy for dealing with

conflict of interest. The policy should ensure

that interested parties should not be part of

decision-making process and that an annual

declaration of interest should be placed in the

Annual General Meeting (AGM).

Manoj also informed about the Roles and

Responsibilities of the Trustees and Board

Members. This includes the following :

- Formulate the mission statement and revisit it every 3 years

- Formulate structure of Authority and responsibility

- Determine procedure for electing/ selecting the CEO

- Formulate important policy documents and guidelines

- Appoint Statutory and internal auditor

- Determine and approve annual budgets& allocations

- Constitute advisory committees for special functions

- Ensure adherence with statutory compliances

- Review performance of CEO and senior management staff.

Regarding ex-officio Board Members, it was informed that, in one organisation, it is stated that

the District Magistrate is the ex-officio Board Member. By this, whoever is the District

Magistrate, will become the Board Member by virtue of his/her position. The same applies to

Executive Director as well who by virtue of his / her position will become the ex-officio Board

Member. Further, the MoA should have provision regarding Ex- officio board members. They

have the right to participate and vote in the board proceedings. Regarding General Members, it

was informed that ideally, the General Members should be more in number than the Governing

Board.

Following the above inputs, a case study exercise on Trustees and Board Members with

hypothetical instances was provided for group work. The discussions emerged out of those

instances, reiterated the above inputs and enabled further clarity.

With the above process, the session on Trustees and Board Members concluded.

Session 3 : Overview of Social Audit

During the expectation mapping exercise earlier

on the day, one of the topics to be addressed

during the workshop was “Social Audit.” As

this topic was outside the purview of the

workshop schedule, it was decided to

accommodate it before the close of the day and

provide a brief overview. Sanjay facilitated this

session.

Regarding Social Audit, it was emphasized that the underlying principle is “Transparency.” In

the Indian context, we can see that we have moved a long way from “Official Secrecy Act” to

“Right to Information Act “in terms of sharing information and being transparent in our activities.

He informed that “Information is knowledge; Knowledge is power; therefore information

is power” Information plays a very crucial role in every stage of social audit. Being

transparent is a very empowering process.

With this introduction, the methodology of the

Social Audit process was explained.

It is an eight step process of about 21 days

divided into 3 Phases.

1. Preliminary Phase

2. Consultative Phase

3. Consolidating Phase

Phase 1 : Preliminary Phase (includes 4 steps )

• Step 1. Resolving to have a Social Audit

The Governing Body of the organizations should formally resolve to have a social audit.

This should be followed by defining the aims of the audit and identification of

stakeholders as stakeholders form the nucleus of the concept of Social

Audit.

• Step 2. Formation of a Social Audit Committee

Ideally the Social Audit Committee should include 7 to10 members who represent the

various stakeholders. This Committee should be formed by the Governing Body.

• Step 3. Appointment of a Social Audit Officer (SAO)

The Governing Body, in consultation with the Social Audit Committee should appoint

the SAO. Social Audit Officer would act as the prime facilitator and will be an external

person who neither belongs to the community or the NGO. During this step, the roles and

responsibilities of the SAO is to be also defined.

• Step 4. Reviewing the Documentation & Scrutiny of Social Accounts

Review of Social Accounts or the Social Performance Report that contains both

programmatic as well as financial information

2. Consultative Phase

• Step 5. Consulting various stakeholders

During this phase, the Social Audit Committee consults with the stakeholders. The

purpose is to gain a deeper understanding of the activities of the organization.

• Step 6. Preparation & Publishing of the Draft Social Audit Report

Draft social audit report needs to be prepared by the social audit committee. It should

contain the findings of the review of documentation, the Social Accounts and any other

relevant information that is substantial to the process. The draft report should be in a

language easily understandable by the community. It should then be published in a

common area & distributed among the stakeholders. Publishing is done after written and

signed certification by each member of the audit committee.

• Step 7. Jan Sunwayi (Public Hearing)

This is a very important phase in the entire Social Audit phase. Jan sunwayi is a

public hearing wherein all stakeholders assemble to discuss the findings & the draft

Social Audit Report. Jan sunwayi needs to be documented. Social Audit Officer is the

facilitator of the Jan Sunwayi process. Jan Sunwayi enables the NGO to received the

feedback from the community about the activities.

3. Consolidating Phase

• Step 8. Compilation & Submission of the Social Audit Report

During this phase, the Social Audit Report is compiled. The Social Audit Report needs to

be generated after the Jan Sunwayi is over. This Report should be a document that should

include the findings of the Social Audit Committee as well as the issues raised during the

Jan Sunwayi. The feedback or the suggestions during the social audit process should be

incorporated in the social audit process. It should be prepared by the Social Audit committee and should be certified and signed by each member of the committee. One

copy should be submitted to the Board. The report should not be treated as a confidential

document.

In conclusion, it was informed that Social Audit should not be a fault finding exercise. It

should rather be a process of involving the community and taking feedback in order to

improve upon the existing program. If refined further, it would replace “evaluation”. For

this to happen, the concept of Social Audit has to be made part of the internal process of

an organization.

With the above input, the session on Social Audit and Day 1 of the workshop was

concluded.

Proceedings for Day 2 - (08.03.2008)

The day began with a brief recap of the previous day’s proceedings by the participants

facilitated by S.P.Selvi.

Session : SAS 3 - Meetings & Resolutions

Manoj Fogla facilitated the session. He informed that the objective of SAS 3 is to provide

clarity and on the procedures pertaining to Board meetings and general meetings and t o

help in establishing desirable practices regarding various meetings

He informed that sound governance depends on effective interaction between decision-

making persons. Regular meeting should be conducted for :

• Planning & Budgeting

• Resource mobilization

• Legal compliances

• Internal Control

• Appointment of Auditor

• Purchase of Capital Assets

• Opening of Bank accounts

• Election of functionaries

He informed that election of functionaries

is made in the General Meeting. It was suggested that the auditor should come for the

General Meeting.

Regarding meetings, it was informed that there are two types of meetings:

1. General Meetings

2. Board Meetings

Regarding General Members and Meetings, it was informed that Annual General Meeting

(AGM) should be held once in a year to discuss & approve important matters. All

members have right to participate & vote. AGM should be conducted within six months

from end of financial year. Extraordinary General Meeting (EGM) can be conducted if

circumstances so demand. Members should have right to participate and vote. NGOs

follow the principle of one person one vote. In case of organizations registered under

Section 25 of the Indian Companies Act, 1956, the voting depends on the number of

shares held.

Regarding Board Meetings, it was informed that it should be held once in 3 months. The

Board may meet more frequently, if required.

It was also informed that Notice for the meeting should be given in writing. Provision

with regard to length of notice should be provided in the bye-laws. In case of General

meetings 21 days notice should be given and 7 days notice for Governing Body meeting.

It was also informed that the agenda is to be given in advance along with the notice.

Regarding Quorum, it was informed that Minimum numbers of members should be

present to make the proceeding of a meeting valid. The provision with regard to quorum

required, should be given in the bye-

laws. In case of unavailability of

quorum ,meeting should be adjourned

to same day of next week at the same

time and same place.

Manoj elaborated the details of

Quorum. Quorum for a General

Meeting should be one third of total

members. Quorum for a Board meeting should be 50% of the total members. In case if

quorum not available in the adjourned meeting, it can be held a valid meeting. Future

date for the adjourned meeting should ideally be within 7 to 14 days.

Further it was informed that in case of an organization has 8 members and the members

voting 4 each, the Chairman’s Casting Vote will decide the decision / majority. The Chair

in a meeting need not necessarily be the Chairperson of the organisation’s Board. Any

member can chair a Board Meeting and can give a Casting Vote in that particular

meeting.

Regarding “Proxy”, it was informed that

it refers to a person or representative

empowered to attend the meeting on

behalf of a member. However, it was

suggested that in NGOs, normally,

proxies should be avoided. If required,

proxy can be used in General Meetings

only. Proxy can sign the roll call in the

name of the person he/she represents. General Body Meet can be held anywhere, not

necessarily in the Registered Office address. Hence the need for Proxy where a member

is unable to attend a particular meeting. Member who is entitled to attend and vote at the

meeting is entitled to appoint a proxy who can attend and vote. The following

requirements to be taken care of :

• Proxy should carry an authorization form.

• Form should be deposited at the registered office at least two days before the date

of meeting

• Proxy is not permissible for Board meetings.

Regarding Minutes of the meeting, it was informed that it is a formal record of the

proceedings of the meeting. In other words, they are organizational memories of

decisions taken in the past. It is an important record of the summary of proceedings in

written form. During the start of a meeting, Minutes of the previous meeting should be

read and confirmed and signed by the chairperson. Once signed, they cannot be altered.

Further, all members present should sign the attendance register.

Regarding Resolutions, it was informed that it is a formal expression of the decision

taken by the members in a meeting. There are two kinds of resolutions :

1) General resolution where a simple majority is required to pass a decision.

2) Special Resolution where a higher percentage of support is expected to pass a

resolution i.e., 3/4th of the members.

There are also decisions that are unanimous.

Examples of some decisions that require special

resolution are the use of corpus fund and

disposal of asset.

In case any member is not agreeing to any

decision, then the dissent is also recorded with

the name, which is called the “Note of Dissent.”

With the above inputs, the session on Meetings and Resolutions was concluded.

Session : SAS 4 – Accounting Policies

Sanjay Patra facilitated the session on Accounting Policies. Referring to the absence of a

common framework for accounting and reporting of NGOs, he said the NGO accounts

are read by only 2 persons – one, the person who prepared it and the other, God, the

Father.

Generally, NGO Balance Sheets appears untidy. Entry to a financial report is like entry to

a house, where one gets an impression of the house, if it is kept neatly or untidy. Same

applies to the financial statements, it should reflect the way the organization is managed.

In the case of a company, the Trading and Profit & Loss Account shows either net profit

or loss of the particular period. If there is a profit, it shows that the company has managed

the consumers and the shareholders well.

In the case of an NGO, the Trading, Profit & Loss Account is replaced with Income &

Expenditure Account. But the message what this account conveys is not very clear – be it

excess of income of expenditure or excess of expenditure over income. There could be

many reasons – either due to bad budgeting or grant received in advance to be spent the

following year.

It was informed that the objective of SAS 4 is to provide clarity on applicability and

appropriateness of accounting policies and to help understand various accounting policies

which are sensitive to address various NGO specific practices.

Selection and application of accounting policies should be based on appropriateness

keeping in view peculiar characteristics of NGOs.

It was informed that as per the Accounting Standard 1 of the Institute of Chartered

Accountants of India, the basic accounting assumptions applicable to NGO as a whole

are:

(a) Going concern

(b) Consistency

(c) Accrual basis

Regarding basis of accounting, it was informed about Cash Basis and Accrual Basis. It

was suggested, that expenses to be booked on accrual basis and grants on actual basis.

Regarding Fund Accounting, it was informed that grants are shown as income which has

been the practice as per the Income

Tax Act requirement. As the practice

is to prepare one Income &

Expenditure Account where funds

received and utilized from various

donors are put in. The concern in this

method is after some years, it will be

difficult to ascertain the balance of a

specific donor’s grant and what

constitutes the General Fund of the

organisation.

Fund Accounting provides the solution to this concern. As per this concept, various funds

and activities be treated as separate accounting entities. It does not require any

specialized norms or policies. Normal accounting policies are applied but as per specific

requirements of fund or activity. It was suggested that NGOs follow Fund Accounting

wherein they can trace the break up of each grant balance on a specific date.

Regarding depreciation, it was informed that NGOs struggle whether to provide

depreciation or not as donors generally do not agree to it. It was explained that when an

asset is purchased, the Income Tax allows 100% application of the cost of the asset. If the

asset is used, say, for 10 years- then the cost of the asset is spread over 10 years, which is

what is referred as Depreciation. Both donors and Income Tax department allow 100%

cost of the purchase of an asset in the year it was purchased itself.

Regarding depreciation, a Case Law was quoted where an organization tried to claim

depreciation from the I.T. Department which is with the Mumbai High Court where the

I.T. Department stated that the organization is charging 200%. The organization argued

that as per the I.T. Department, what is shown as Income is actually not the income of the

organization, is the grant. Similarly, what is shown as the cost of the asset is actually not

an expenditure, is an asset. Thus it was a contra entry and in principle, the organization

did not get anything. Regarding donors, the NGO stated that it can be taken up bilaterally.

Finally, the case verdict was in favour of the NGO at the High Court level. It is yet to be

decided by the Supreme Court.

Thus, depreciation can be charged by an NGO is the present conclusion.

Also importance of Note to Accounts, it was informed that it is essential as it helps to

provide the right information to

the user of the financial reports.

Example of Contingent

Liabilities was given which is a

liability contingent upon a

certain happening. It was

referred to a major NGO which

had property in a place that faced a tax imposition of Rs. 4 crore on land which is yet to

be settled. This is not an immediate liability but is a Contingent Liability. In such an

instance, the NGO has to provide this information in the Note to Accounts.

The discussion was further facilitated by a case study exercise which enabled the

participants to reflect on the hypothetical instances provided therein and relate it with the

input provided.

With the above inputs, the session on Accounting Policies was concluded.

Session : SAS 5 : Social Accountability Reports

Sanjay Patra facilitated this

session. He explained the objective

of this standard as to provide

guidance on reporting practices

which provide an insight into the

level of transparency and

effectiveness of the governance to

various stakeholders.

The importance of the reports increased as the NGOs are socially accountable and should

generate statements to:

• Satisfy the needs of various stakeholders

• Send a message that trusteeship of funds is done in an efficient, honest and

prudent manner

• Satisfy legal obligations.

The key ingredients Governance and Programme Report needs to reflect the following :

- Overview, Vision, Mission &core values;

- Number & frequency of Board and General Meetings;

- Note on organizational policies & their status;

- Programme activities undertaken by the organization;

- Overview of major assets purchased; and a

- Responsibility Statement.

A case study exercise of an Income & Expenditure and Balance Sheet was given to the

participant to observe and share feed-back. During the discussion on the case study

exercise, it was informed that :

• each item on the liability side should correspond to an item in the Balance Sheet.

• clear reporting of funds such as the Revolving Fund is to be made.

• clarity in accounting & reporting of the Project and Organisational Assets.

Following this, a sample Financial Report based on Fund Accounting was provided to the

participants. The sample report was explained where each item in the Balance Sheet had

a Schedule that gave the details of the same. The Balance Sheet thus prepared appeared

clear and compact.

With the above inputs, the session on Social Accountability Reports was concluded. The

end of the session also brought the workshop to an end.

Compilation of Feedback

0

5

10

15

20

25

Overal l impact

of the

workshop

How useful did

you find the

workshop

How did you

find the

presentation

,faci litation

and discussion

Effectiveness

of Power Point

Presentation

Relevance of

topics

discussed

Arrangements

at the venue

Value of the

Resource

material

1

2

3

4

5

Session : Conclusion & Feed-back

In the concluding session, the participants provided a written feed-back of the workshop.

This has been compiled and the analysis is provided below :

The participants also expressed their thanks to the Resource Team for the useful inputs

and discussion points. With Sanjay also thanking them and the Resource Team, the

workshop was concluded.

Dated : 14.04.2008 Prepared By

FMSF

==================

List of Annexures

S.No.

Particulars

1.

List of Participants

Annexure No. 1

2.

Schedule

Annexure No. 2

Annexure - 1

List of Participants

“Workshop on Social Accountability Standards” – 7th & 8th March, 2008

S.No Name Organisation Contact Address

Phone/

Mobile

Number Email id

1 Mr.P.Krishna Mohan

Accion

Fraterna

Upparapalli Road, Bangalore

Highway, Anantapur-515002.

Andhra Pradesh. 08554-244222 actionf@sancharnet.in

2

Mr.T.Muralidhar

Reddy

Accion

Fraterna

Upparapalli Road, Bangalore

Highway, Anantapur-515002.

Andhra Pradesh. 08554-244222 actionf@sancharnet.in

3 Anto Maliekal

ATMA

Consultancy

Services

Dr.No.:40-10-15, Flat No.13, SIRI

Apartments, Brundavan Colony,

Vijayawada-Andhra Pradesh-520010 0866-2496688 antoseena@rediffmail.com

4

Mrs.Annie

Evangeline

ATMA

Consultancy

Services

Dr.No.:40-10-15, Flat No.13, SIRI

Apartments, Brundavan Colony,

Vijayawada-Andhra Pradesh-520010 0866-2496688 vjwatmacs@gmail.com

5

Mr.Bhaskar Chandra

Adhikari BREDS

Praharajapalem, Post:Pathapatnam,

Srikakulam, Andhra Pradesh 08946-255966 bredsorg@yahoomail.com

6

Mr.G.Anand Kumar

Rao BREDS

Praharajapalem, Post:Pathapatnam,

Srikakulam, Andhra Pradesh 08946-255966 bredsorg@yahoomail.com

7 Prof.S.Peermohamed CREATE

No.2/84, Melachatram Street,

Paramakudi-623707,

Ramanathapuram District, Tamil

Nadu. 04564-228448 Createdurai@yahoo.co.in

8 Ms.Sheela S.

CBM South

Asia

Regional

Office

(SOUTH)

140, Commerce Cube, 2nd Floor, 5th

Main, Puttanachetty Road,

Chamrajpet, Bangalore-560018. 080-26673566 mail@cbmsaros.org

9 N.S.Venkatesh

CBM India

Trust

140, Commerce Cube, 2nd Floor, 5th

Main, Puttanachetty Road,

Chamrajpet, Bangalore-560018. 080-26673566 venkatesh@cbmsaros.org

10 Mr.A.Giridhar DDS

Flat No. 101,Kishan Residency,

Strett No. 5,Begumpet, Hyderabad-

500016. 040-27764577

hyd1_ddshyd@sancharnet.

in

11 Mr.Victor Emmanuel

Emmanuel

Hospital

Association 808/92, Nehru Place, New Delhi. 011-30882008 victor@eha-health.org

12 R. Balasubramaniam

German Agro

Action,

Chennai

No.22, Z Block, 11th Street, Anna

Nagar West, Chennai-40, Tamil

Nadu 044-26211418 balu@dwhh.org

13 Ms. Linet D’souza

International

Youth

Foundation

314, Doddakannelli, Sarjapur Road,

Next to WIPRO Corporate Office,

Bangalore-560035 9980513825 l.dsouza@iyfnet.org

14 Mr.Aakash Sethi

International

Youth

Foundation

314, Doddakannelli, Sarjapur Road,

Next to WIPRO Corporate Office,

Bangalore-560035 9980102728 a.sethi@iyfnet.org

15 Mrs Suman IGSSS

28, Lodhi Road, Institutional Area,

New Delhi 9810819122 simi200102@yahoo.com

16 Mr. Ravi Agarwal IGSSS

28, Lodhi Road, Institutional Area,

New Delhi 9911481501

ravi.agarwal.78@gmail.co

m

17 Ms. Evelyn Daniel IIRD

54, kanchan Nagar, Nakshatrawadi,

Aurangabad-431002, Maharashtra. 0240-2376336 jdaniel@iird.org.in

18

Mr. Dattatraya

Deshpande IIRD

54, kanchan Nagar, Nakshatrawadi,

Aurangabad-431002, Maharashtra

Phone: 0240-2376336 info@iird.org.in

19 Mr.Varghese C John

Kerala Social

Service

Forum

Amos Centre, Adhichira, Thellakom

Post, Kottayam, Kerala-686016 0481-2594802 kssforum@yahoo.com

20 Mr.P. Omprakash

LEPRA

Society

P.B.No.1518, Krishnapur Colony,

West Marredpally, Secunderabad,

Andhra Pradesh-500026. 040-27802139

omprakash@leprasociety.o

rg

21 Ms. Isabel.R MCCSS

21, VI th Main Road, Jawahar

Nagar, Chennai-600082. Tamil

Nadu. 044-26705486

isabelrichardson@yahoo.c

om

22 Mr.Joachim MCCSS

21, VI th Main Road, Jawahar

Nagar, Chennai-600082. Tamil

Nadu. 044-26705486

isabelrichardson@yahoo.c

om

23

Dr. (Mr.) C

Ravikumar OUTREACH

No.109, Coles Road, Frazer Town,

Bangalore-560005 080-25545365

outreach@outreachindia.or

g/dr.cravikumar@gmail.co

m

24 Mr.Sony wood NASA

East Godavari District, Tuni, Andhra

Pradesh-533401. 08854-254008 premdasnasa@yahoo.com

25 Mr.Nageswara Rao NASA

East Godavari District, Tuni, Andhra

Pradesh-533401. 08854-254008 premdasnasa@yahoo.com

26 Mrs.Neelima SHEBA

East Godavari District, Tuni, Andhra

Pradesh-533401. 08854-254008 premdasnasa@yahoo.com

27 Mr.Raja Kulapaty SHEBA

East Godavari District, Tuni, Andhra

Pradesh-533401. 08854-254008 premdasnasa@yahoo.com

28 Ms. Manil J. Joshua SEDS

Anandapuram, Penukonda,

Anantapur, Andhra Pradesh-515124. 08555-245424 sedsngo@gmail.com

29 Mr. P S Prasad SEDS

Anandapuram, Penukonda,

Anantapur, Andhra Pradesh-515124. 08555-245424 sedsngo@gmail.com

30 Mr.M.Rabbani SEDS

Anandapuram, Penukonda,

Anantapur, Andhra Pradesh-515124. 08555-245424 sedsngo@gmail.com

31

Dr. (Ms.) Sheila

Benjamin SCINDeA

80 C, Kottaiyur Road, Yelagiri Hills-

635853, Vellore District, Tamil

Nadu. 9443322093 scindea@vsnl.net

32

Ms Glory

Vijayakumar SCINDeA

No.18 Balaji Nagar, Katpadi-632007,

Vellore District, Tamil Nadu. 944326177 scindea@vsnl.net

33 Ms.Selvi Kumari

Vocational

Training &

Rehabilitation

Centre

No.15, Yamunanathi Street,

Mahatma Gandhi Nagar,

Krishnapuram Colony, Madurai-14. 0452-2531471 vtrcmdu@gmail.com

34 Mrs.Rosy Sorna Jothi

Vocational

Training &

Rehabilitation

Centre

No.15, Yamunanathi Street,

Mahatma Gandhi Nagar,

Krishnapuram Colony, Madurai-14. 0452-2531471 vtrcmdu@gmail.com

35 Ms.Anne Bohrer EED

Desk – Asia/Pacific,

Evangelischer Entwicklungsdienst

e.V.,

Ulrich-Von-Hassell-Str-76,

53123 Bonn, Germany

0049-228-

8101-0 Anne.Bohrer@eed.de

36 Ms.Annette Becker

Church

Development

Service -

EED

Church Development Service EED

EU Cofinancing Desk

Ulrich-von-Hassel-Strasse 76

D-53123 Bonn, Germany

0049-(0)228-

8101-2130 Annette.Becker@eed.de

37 Mr.Manoj Fogla

DM

Associates-

Chartered

Accountants

Sri Vihar Colony,Tulsipur, Sun

Appollo Lane, Cuttack-753008,

Orissa 0671-2304642 mfogla@yahoo.com

38 Mr.Sanjay Patra FMSF

Accountability House, A-5, Sector-

26, Noida-201301

0120-

2546732/33 sanjay@fmsfindia.org

39 Ms.S.P.Selvi FMSF

Accountability House, A-5, Sector-

26, Noida-201301

0120-

2546732/33 selvi@fmsfindia.org

Annexure - 2

Workshop on Social Accountability Standards

7th & 8

th March, 2008

at Bangalore

Tentative Schedule

Day : 1

Topics

9:00-9:45 Registration of Participants

Welcome & Introduction

9:45-10:00

Tea-Break

10:00-12:00 Social Accountability Standard I- ‘Fundamental Documents’

12:00-1:00 Social Accountability Standard II- ‘Trustee and Board members’

1:00-2:00

Lunch Break

2:00-3:00

Social Accountability Standard II- ‘Trustee and Board Members’

(Continued...)

3:00-3:15

Tea Break

3:15- 5:15 Social Accountability Standard III- ‘Meetings and Resolutions’

Close for the Day

Workshop on Social Accountability Standards

7th & 8

th March, 2008

at Bangalore

Day : 2

Topics

9:00-11:00 Social Accountability Standard IV- ‘Accounting Policies’

11:00-11:15

Tea-Break

11:15-1:00 Social Accountability Standard V- ‘Social Accountability Reports’

1:00-2:00 Lunch Break

2:00-3:30 Social Accountability Standard V- ‘Social Accountability Reports’ -

(contd.)

3:30-3:45 Tea Break

3:45-4:30 Concluding Session

Feed-back & Evaluation

Departure