The Institute of Chartered Accountants
of Sri Lanka

 A monthly expenditure report should be prepared giving the following information:

 A programme activity report should be prepared for every quarter of the financial year giving following information for each activity undertaken.

• Budgeted and actual number of units / beneficiaries
• Budgeted and actual cost per unit / cost per beneficiary
• Budgeted and actual total cost
• Total difference in units / beneficiaries compared with budget
• Total difference in cost per unit / beneficiary compared with budget
• Percentage differences in units and cost per unit compared with the budget (Refer Annex. 15)

 The programme activity report should explain the reasons for any major variations in cost per unit, total cost or cost per beneficiary. Financial and non  financial data required can be obtained from the documentary file maintained for each program.

 The program activity report should also include -

 1) Narrative descriptions of various programmes undertaken
 2) Difficulties encountered in the conduct of programmes
 3) Stage of completion of capital expenditure programmes and expected date of completion.
 4) Critical comments on the effectiveness of programmes.

 A Receipts and Payments Account should be prepared for every quarter giving the following actual and budgeted amounts side by side.

• Total receipt of funds for the period
• Total expenditure incurred classified into

    - Programme Expenditure
    - Administrative Expenditure
    - Capital Expenditure

• Net receipts / (payments) for the period
• Cash balance at the beginning of the period
• Cash balance at the end of the period (Refer Annex. 14)

 A detailed break up of the fixed assets at the end of each period should be given as a memorandum record together with the receipt and payment  account.

 At the end of financial year the following reports need to be prepared.

• Receipts and Payments Account for the financial year similar to the quarterly report
• A detailed break up of fixed assets as at year end
• A programme activity report similar to the quarterly report

 However, in addition organisations may decide to prepare Income and Expenditure Account and Balance Sheet using accrual concept with the advice of  their Financial Consultants.

 An external audit needs to be carried out at the end of each financial year during the project implementation period. Selection of the External Auditor  may be done by the Governing Body of the organisation for general purpose funds received. However for specific funds donor’s approval may be  necessary for selection of External Auditor.