The Institute of Chartered Accountants
of Sri Lanka

4. General Controls over Funds Received in the form of Cash.



Organisations may receive funds from donors for –

        a) Specific Projects - Eg: House construction, management of pre schools.
        b) General purposes - Eg: Maintenance of refugees camps

 4.1

 Funds Received for Specific Projects.

 These funds are generally received from foreign donors under a binding contract, which stipulates specific terms and conditions. In addition  to such specific terms and conditions, the following general controls should be in place for funds
 received.

 1)

 A separate bank account should be maintained for each specific project and funds received should be remitted or deposited to the  appropriate bank accounts, intact.

 2)

 All amounts received should be acknowledged to the donor giving the following information:

 Date of receipt

 Foreign currency amount

 Exchange rate

 Sri Lankan Rupee amount

 Bank commissions / charges if any

 The last 3 items will not be applicable if the amount received is permitted to be retained in a foreign currency bank account.

 3)

 An official receipt clearly stating that funds are received for Tsunami relief work, should be issued for all amounts received. These  receipts should be counter signed by the Chief Executive or the Chief Financial Officer.

 4.2

 Funds Received for General Purposes.

 These funds may be received from foreign as well as local donors and the following general controls need to be in place:

 1)

 A separate bank account should be maintained for all funds received other than for specific purposes. Funds received should be  remitted / deposited to the appropriate bank account.

 2)

 Acknowledgement procedure recommended for foreign specific projects
 (Para 4.1) can be followed for general purpose funds received from foreign donors too.

 3)

 An official receipt clearly stating that funds are received for Tsunami Relief work, should be issued for all local and foreign donations  received.