1. The Toolkit - Introduction
1.1 |
This Toolkit sets out the basic financial procedures and internal control systems, the management of Non Government Organisations (NGOs) should implement – to instil financial discipline and foster accountability at each stage of project implementation. It stipulates the processes needed to be established to ensure proper fund and resource management. It is important for these organisations to be transparent, accountable and introduce good governance in their affairs, especially as large funds for Tsunami rebuilding effort are now being received by them.
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1.2 |
This Toolkit does not aim to be an exhaustive list of controls and recognizes that not all the controls mentioned will be applicable in every type of organisation. But such organisations after considering its size, activities undertaken, the staff strength etc, should endeavour to implement a well planned combination of these controls in such a manner an acceptable balance is achieved.
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1.3 |
It is the fundamental duty of the management of these organisations to protect their assets and ensure their application for the intended purposes. In order to discharge this duty it is essential that there are adequate internal financial
controls over the organisations assets and their use. This Toolkit has been prepared to help the management secure the protection of assets under their charge, to ensure equitable distribution of donations received and to assist in promoting greater professionalism in the management.
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1.4 |
Controls are a necessary feature of any well managed organisation. Because of the special characteristics of this sector, they play an essential part in helping to show potential donors and other interested parties that the organisations assets are safeguarded and managed efficiently.
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1.5 |
This Toolkit does not remove the need for the management to seek appropriate professional advice where it is required. This Toolkit does not cover every eventuality and there may well be instances where the management may need to seek further advice.
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1.6 |
This Toolkit is recommended to be read by – |
• Every member in the Governing Body and the executives of the donor funded Agencies / Organisations.
• Representatives of the donors granting funds.
• Management and financial consultants, external and internal auditors providing services to these organisations.
• The key officials in the Government Ministries involved in Tsunami relief activities.
