internship report shakil

Auditing of an NGO: A Case Study on AWARE Project Funded by ActionAid Bangladesh

LETTER OF TRANSMITTAL

3rd May, 2012

Nausheen RahmanAssociate ProfessorDepartment of FinanceFaculty of Business StudiesUniversity of Dhaka

Subject: Submission of Internship Report.

Dear Sir,

I have the honor to submit my internship report on “Auditing of an Ngo: A Case Study on Aware Project Funded by Actionaid Bangladesh”. It is a great opportunity for me to be acquainted with the audit procedure undertaken by SSAC Chartered Accountants, a leading CA firm and independent member of Urbach Hacker Young International Limited, the 23rd largest accounting practitioner body in the world which can enhance a person’s knowledge about the concurrent practice of auditing regarding the NGO’s.

The six weeks’ internship program has contributed greatly in gathering my knowledge as it has provided me with wide exposure of the professional environment. I tried to incorporate the practical knowledge whenever I found it necessary in this report. This report is prepared under your kind supervision and I respectfully acknowledge your sincere guidance and assistance.

I believe the analysis done here will help me in future to know how diversified situations may arise in professional practices and how they have to be dealt with along with due care and professional skepticism. I will be very glad to provide you with further explanations or clarifications in this regard that you may feel necessary.

Thank you very much for your kind supervision and great co-operation.

Sincerely yours,

Muhammad Firoz Mahmud

Roll: 14-089 BBA 14th Batch, Sec: A Department of FinanceFaculty of Business StudiesUniversity of Dhaka

Advancing Women to Activate on Right and Empowerment Project


ACKNOWLEDGEMENT

First of all, I would like to thank the Almighty Allah for blessing me with the strength, aptitude

and patience for successfully completing my internship and this report.

I would like to thank my faculty advisor Nausheen Rahman for giving me the opportunity to

work with him during my period of internship. I have been able to compile and complete this

report in a comprehensive manner due to the guidance, support and counseling that he has

provided me with during this period. I have tried my best to implement his constructive

suggestions while doing my report.

I would also like to take this opportunity to acknowledge the help provided to me by some

personals of SSAC, Chartered Accountants. My sincere gratitude goes to Mr. Snehasish Barua,

FCA, Partner; Koushik Ahmed, Audit Supervisor; and Mahamuda Khatun, Team Supervisor for

giving me time from their busy schedule, providing me with information that was required to

complete the report and for guiding me properly throughout the period of my internship. I

would also like to thank all the employees and students of SSAC, Chartered Accountants who

has supported me and co-operated with me during my internship period.

Finally, my sincere thanks go to each and everyone who has helped and supported me

significantly in different stages during the period of my internship.



List of Acronyms

Acronym Full Form

NGO Non Governmental Organization

CA Chartered Accountant

VAT Value Added Tax

ICAB The Institute of Chartered Accountants of Bangladesh

NGOAB Non-Government Organization Affairs Bureau Bangladesh

ISA International Standards on Auditing

BSA Bangladesh Standards on Auditing

GAAP Generally Accepted Accounting Principles

SRA Specific Risk Analysis

ICQ Internal control questionnaire

ToR Terms of Reference

TA Travel Allowance

PM Program Manager

TDS Tax Deducted at Source

PR Principal Recipient

FIFO First In First Out

FD- 4 Foreign Donation- 4



Executive Summery

Audit procedure is mainly a step by step approach. As this is a case study on SKS Foundation; a partner NGO of ActionAid Bangladesh on a particular project, it will cover a little area of NGO auditing. But the snapshot can be obtained from this study. The selected NGO has wide range of operation. It has its operation beyond the boarder. The selected portion that has been audited is an audit on “Advancing Women to Activate on Right and Empowerment Project”, a project taken by the government of Bangladesh and implemented through the SKS Foundation; a partner NGO of ActionAid Bangladesh.

As an audit firm SSAC has a complete set of procedures to be followed at the time of audit performed. From engagement to report submission the process is followed with reasonable and professional care and maintaining all rules and regulation and standards.

In this report the main focus was on the implementation procedure of audit and finding out the features that is taken to audit the NGOs. NGO auditing is not like general company auditing. Huge amount of foreign donations are involved here. For that reason the verification of the authenticity of foreign donation is mandatory in case of NGO auditing. The 35 conditions imposed by NGOAB are considered a guideline in this regard.

The auditing is done to find out irregularities regarding stock management, fixed asset management, proper implication of Bangladesh Accounting standards, VAT Act, income tax ordinance, labor law and other included in internal control system.

The opinion provided by the auditor is obviously beneficial for the NGOs as those can improve the quality of the respective NGOs performance. In the audit a follow up of the previous year’s audit is verified whether that is solved or not. If not, recommendation on taking proper action is communicated to the management.

But the effort will best be obtained when the transparency of financial reporting will be ensured through a system where the audit procedure will be more flexible and easy to understand. Because it will ensure greater accessibility of people to disclose and evaluate as well as understand and implement the auditing and accounting knowledge.

The auditing profession has contributed and will be contributing a greater extent in ensuring transparency and efficiency of internal control system of various sector of Bangladesh. The achievement of the auditors will be then when the maximum people of the country will be aware about their rights and then proper transparency will come conquering all obstacles.



TABLE OF CONTENTS



Chapter One: Preamble

1.1 Introduction

Bangladesh has a history of rich sociological bondage. This social bondage is a basic cultural

attributes of Bangladeshi society. With the span of time the social bondage and other social

developmental and other activities is now losing the appeal and effectively. But the state and

governmental system is not as adequate to fulfill the requirement of the people of our

country. The new capitalist culture is now expanding the income gap between the rich and

poor. Undesirable Social and Cultural hazards are now growing in numbers. Government is

elected by the people but due to some sort of systematic hazards and cultural deterioration

all governmental activities do not fully benefit the people of the country. NGO’s are

welcomed here to replace this type of responsibilities which would have to be done by the

Government.

Non-Governmental Organizations (NGO) is not financed by the Government. NGO’s mainly

receive fund from foreign countries and they expend this on different projects aiming to

maintain social awareness covering the site of education, sanitation and health. To ensure

proper transparency and accountability generally auditing is done on those NGOs. Because

there are huge possibilities of misusing the fund received from the foreign donor.

Potential threats and prospects of NGO auditing is now a very important aspect to raise

awareness of the stakeholders of the NGO’s and making an evaluation to improve the quality

of auditing. This NGO receive a huge amount of Donations which are transmitted to Sub-

recipients NGOs and with prescribed instruction and Budgets. But due to some difficulties

and Problems the proper clarification of the audit made cannot be achieved. Due to the

weakness in internal control system and other associated external problems the proper

utilization of fund money sometimes fall apart.

To minimize the risk of that misuse the roll of auditors is important. What should be those

roles in assessing the risk, minimizing those risks, strengthening the internal control system

and making adequate contribution to the development of the country is an important aspect

of this internship report proposal. SSAC as a leading chartered accountancy firm has a wide



practical exposure on the NGO auditing. In this study those information are incorporated

which are best conform the procedure of Auditing of a NGOs by a CA firm.

1.2 Objectives of the study

Generally in our academic life we get theoretical knowledge about different aspects. But now

a day, in the job market there is no substitute of work experience. Getting meaningful work

experience in one major field of study must to be given a high priority. After getting

theoretical knowledge from university, it is all about the application of that knowledge in real

world situations. It has immense importance to establish relationship between theory and

practices in real world situation. Practically the auditing of NGO is deeply characterized by

learning the current accounting and auditing standards, role of regulatory authorities,

activities of different financial and non-financial institutions from home and abroad and

government itself. The objectives of this report are:

Gaining practical knowledge and experience on how a chartered accountancy firm

(SSAC) performs an audit and a how audit work.

Special Procedures taken by the Firm (SSAC) to audit NGOs and their sub recipients.

Understanding the field level problems related to the implementation of the

prescribed procedure from the part of both Auditor and client.

Getting an exposure of the problems in internal control system of different

organizations and plausible recommendations.

Understanding how NGO’s are being benefited by the supervision of the audit firm

with adequate exposure on future prospects.

1.3 Methodology of collecting Information

The hypothesis which I will develop will be through empirical testing research based on the

collection of quantitative data taken from financial statements, balance sheets of Different

Sub-Recipients and the selected NGO itself. I will mainly focus on the qualitative and

quantitative aspect of my audit. Because for most of the cases, auditing is not only to focus

on quantitative aspects of information, it is focusing on qualitative aspects of information

also.



In order to prepare the assigned project paper I have collected necessary information from

two types of source as follows:

1) Primary sources information.

2) Secondary sources information.

Primary sources information

1. I have collected primary information by working with NGO audit teams.

2. Discussing with engagement partner, audit manager, audit stuff and articled students.

Secondary sources information

1. I have also collected secondary information like annual audit report, management

audit report, accounting system, Policies, Circulation & audit working papers.

2. The information was obtained from various corresponding files of the firm.

1.4 Limitation of the study:

During my study, I have confronted some challenges. I have tried my best to overcome those

challenges. Even then, I have some limitations. The study is conducted with an objective to

make a thorough study of external audit procedure. The challenges I mentioned before can be

termed as the limitation of my study. Those limitations are as follows:

a) As the internship was the first practical experience, it was not possible for me to know all

and everything of audit program.

b) Also it became difficult for me to be efficient in handling the unique problems while

auditing the NGO.



Chapter Two: Literature Review

NGO means non government organization (Peter Willetts.2011). NGOs are not self-serving in

aims and related values. Their aim is to act in the public arena at large, on concerns and

issues related to the well being of people, specific groups of people or society as a whole.

They are not pursuing the commercial or professional interests of their members. It is said in

The Commission and Non-Governmental Organizations: building a stronger partnership.

Non-governmental development organizations are potentially critical catalysts for unlocking

the energies and resources of the poor and voiceless, for building pluralistic and democratic

societies. To be effective in this role, they must formulate and implement programs that

strategically promote and support long-term changes that have large-scale development

multiplier effects. All too often the early successes of NGOs are difficult to sustain let alone

replicate on a larger scale, because of problems in organization and management. (Brown,

David. 1988. "Organizational Barriers to NGO Strategic Action." Institute for development

research, Boston, 10 pp.)

"Auditing is the accumulation and evaluation of evidence about information to determine

and report on the degree of correspondence between the information and established

criteria. Auditing should be done by a competent, independent person." (Loebbecke.1986)

In other words Auditing is subject to expectations and demands which are, justifiably or

otherwise, often disappointed (Kealey, Lee & Stein 2007).

According to the Companies Act 1994, accounts of companies registered under this act must

be audited by chartered accountants within the regulations of the Bangladesh Chartered

Accountants Order 1973. Similarly, all books of accounts maintained by a non-government

organization receiving foreign donations shall be audited by a chartered accountant as

defined in the same order (http://www.banglapedia.org/httpdocs/HT/A_0361.HTM)

NGO Auditing is being characterized as a tool to find out the possible threats and risk

associated with the operation of the NGO. To ensure accountability in NGO sector previously

studies are done. With regard to the evolution of NGO accountability practices and their



implications on NGOs, Songco (2007) finds that the effort of creating a more proactive

environment for NGO accountability is to dissect the different levels at which accountability

needs to be promoted, the methods that can be used by NGOs operating in these different

levels and incentives and disincentives that can be instituted in this regard. Lloyd R. and L.

delas Casas, (2005) investigate NGO self-regulation and its impact on enforcing and balancing

accountability.

Srinivas (2005) claims that NGO accountability covers issues such as organizational

management, project implementation, financial management and information disclosure. It

is related to issues such as answerability, responsibility, liability, dependability,

conscientiousness, reliability, trustworthiness, legitimacy, and transparency. There has been

a rising visibility and stakes of NGOs' work. A crisis of legitimacy in many sectors, especially

business and government has amplified the need for NGOs as a 'counterbalance'.

With regard to the evolution of NGO accountability practices and their implications on NGOs,

Songco (2007) finds that the effort of creating a more proactive environment for NGO

accountability is to dissect the different levels at which accountability needs to be promoted,

the methods that can be used by NGOs operating in these different levels and incentives and

disincentives that can be instituted in this regard.

Ebrahim (2003) who recognizes five broad mechanisms for NGOs accountability in practice:

reports and disclosure statements, performance assessments and evaluations, participation,

self-regulation, and social audits. Ebrahim analyzed these five mechanisms along three

dimensions of accountability: upward-downward, internal-external, and functional-strategic;

and observed that accountability in practice has emphasized upward and external

accountability to donors while downward and internal mechanisms remain comparatively

underdeveloped.

Moreover, NGOs and fund donors have focused primarily on short term 'functional'

accountability responses at the expense of longer-term 'strategic' processes necessary for

lasting social and political change.



Chapter Three: Profile of SSAC

SSAC was established in 1993 under the name of Syful Islam & Co, Chartered Accountants. The firm became Syful Shamsul Alam & Co, in February 2003.The partners are:

PARTNERS

Md. Syful Islam, FCA, FCMAA. K. M. Shamsul Alam, FCAMd. Raghib Ahsan, FCANasim Anwar, FCAMd. Abdul Majid, FCASnehasish Barua, FCAMohammad Saif Uddin, FCAMd. Liaquat Hossain Chowdhury, FCA, FCMA

3.1 The profile of SSAC at a glance:

Name of the audit firmSyful Shamsul Alam & Co (SSAC)

Chartered Accountants

Date of establishment 06 March, 1993

Corporate office

Paramount Heights (Level-6)65/2/1 Purana Paltan

Dhaka-1000. BangladeshTel: +88(02)9555915, +88(02)9515431,

+88(02)9515491Fax: +88(02)9560332

Dhaka officeDilkusha C/A (6th Floor)Dhaka-1000, Bangladesh

Tel: +88(02)9572217

Chittagong office

Bashar squrae (M. Court), 5th Floor108, Agrabad, Chittagong.Phone: +8801819380455

3.2 Manpower Strength

Sl. Personnel Number01. Partners 08



Sl. Personnel Number02. Professional Staff:

- Senior Director-Taxation 01- Director-Audit & Consultancy (Chartered Accountant) 01- Deputy Manager-Taxation & Corporate Affairs 01- Deputy Manager-Audit & Consultancy 06- Senior Assistant Manager-Audit & Consultancy 04- Senior Assistant Manager-Taxation & Corporate Affairs 02- Assistant Manager-Audit & Consultancy 03- Assistant Manager-Taxation & Corporate Affairs 03- Executive and Junior Executive-Audit, Consultancy & Taxation 07

03. Articled Students 9004. Interns 1505. Supporting Staff 20

Total 163

3.3 Role of the Personnel:

i. Partners:The role of a partner is to get new clients and also sometimes the clients approach the partners themselves. The partners also make sure the existing clients are provided with the best possible service. Partners guide their employees to prepare a proposal which is to be submitted to the client depending on what kind of service the client requires.

ii. Audit manager:An audit manager is a Chartered Accountant who assists the partners in various ways. He/ She review reports before signing by the engagement partner.

iii. Supervisor:A supervisor may or may not be a Chartered Accountant. He has to complete the course and having some years experience in the field of accountancy therefore he designated as the Audit Supervisor of the firm. Audit manager briefs the audit supervisor on where and when an audit has to be performed and how the job is to be carried out.

iv. Senior student:An audit senior has some years of experience in the accountancy field therefore he has been designated as the audit Senior of the firm. Audit senior is briefed by the audit manager and supervisor about where and when an audit has to be performed and how the job is to be carried out.

v. Semi-Senior Student:A semi-senior student has to complete at least one year of article ship in the firm. Every time he is liable to his assigned senior/s.

vi. Junior Student:



Junior Students are the fresher who have just joined as an articled to the firm.

3.4 Non Professional Staff:

The numbers of non professional staffs involved with the firm are as follows: General Manager (GM) Manager Accountant IT Specialist Computer Operator Photocopy Machine Operator Receptionist.

3.5 Services Provided By the Firm

SSAC provides a wide range of high quality services of diversified nature to its clients in the private and public sectors in Bangladesh. It also renders services to international development agencies and expatriate consultants those are associated with various projects in Bangladesh.

(a) Services offered cover the following areas Statutory audit. Internal audit. Special audit. Management audit. Performance audit. Financial review. Accountancy. Taxation – individuals, companies, banks, branch offices, liaison offices. Accountancy and management training. Company formation and secretarial work. Investigation of frauds and irregularities. Setting up branch office and setting up liaison office. Companies’ registration with Board of Investment, Ministry of Industries etc. Obtaining trade license, factory license, Import Registration Certificate etc. Providing services regarding setting up of office, drafting rent/lease agreement,

recruitments of staff etc. Services relating to fixed assets management, inventory management etc. Services with regard to share issue, right issue, initial public offering, prospectus. Outsourcing of accounting services, payroll, internal audit etc. Tax planning and tax management of expatriates. Business plan developments. Feasibility study of projects.



Management consultation/development. Privatization consultancy. Company acquisition, merger, spin off, amalgamation etc. Liquidation and winding up of companies. Organizational consulting services. Share/business/asset valuation. Other services as per needs of the clients.

(b) Following are a few of the major category of clients receiving SSAC’s services

3.6 Association and Membership

(a) Affiliation with International Auditing/Accounting Firm

SSAC is an independent member of Urbach Hacker Young international Limited, 23rd largest network in the world with 96 independent member firms in 78 countries.


Manufacturing and Trading

Apparel Engineering Cement Fabricated products Pharmaceuticals Garments / textiles Food products

Energy and Telecommunications

Oil and gas Power and power

generation Telecommunication Mining.

Non-profit organizations

NGOs Charitable

organization Universities

Commercial services

Courier and cargo services

Hospitals Airlines Hotels

Finance

Banking Investment Insurance Capital Market.


Chapter Four: Audit Procedures for NGOs followed by SSAC

4.1 Engagement Procedures

Before discussing the audit procedures followed by SSAC, I’ve tried to focus on the

engagement procedures through which SSAC is engaged/ recruited by the NGO to perform

the audit. SSAC faces three kinds of situations in engagement process:

Engagement with new NGO.

Engagement with existing NGO.

Directly appointed by the NGO.

Before starting the audit work, some letters are exchanged between SSAC and NGOs.

4.1.1 In case of engagement with new NGO:

4 (four) letters are exchanged between SSAC and NGO including acceptance letter of

appointment at the time of involving with the new NGO. Following stages are followed by

both SSAC and NGO:

Stage-1: NGO requires for technical and financial proposal from the SSAC

NGO generally gives circular with the newspaper or directly wants proposal for audit from

the audit firm. In case of direct offer they request to the audit firm to submit a quotation for

the cost of conducting audit of the NGO. The NGO firm mentions here the key areas of the

audit in the form of attachment.

Stage-2: The technical and financial proposal is sent by SSAC to the NGO

After reviewing the NGO letter or paper’s circular, audit firm drafts a proposal letter to the

NGO. The proposal letter contains technical and financial proposal for carrying out the

subject of audit. The firm also mentions that as it is an estimate, the cost may vary with

variation in number of mandates estimated to be utilized for the job.

Stage-3: Acceptance by the NGO on the basis of proposal of SSAC– A letter of contract

After receiving proposal letters from various audit firms, the NGO then selects the one which

is favorable to them, and it appoints the audit firm for audit purpose. From the technical and

financial proposal of the SSAC the NGO understands the nature of the audit (such as



independent, external) to assess the organization’s internal control system in administering

the audited matter.

Stage-4: A letter is sent by SSAC to the NGO confirming to work with the NGO –

Confirmation Letter

After receiving the acceptance letter from the NGO, SSAC provides confirmation letter

describing the firm’s willingness to work with the NGO.

4.1.2 In case of engagement with existing NGO

Three letters are exchanged between the SSAC and NGO:

1. Willingness letter for reappointment: In this letter SSAC wants to audit this

year. It can request to increase audit fee or change some other conditions.

2. NGO sends appointment letter.

3. SSAC accept this appointment.

4.1.3 In case of directly appointed by the NGO

If the NGO is interested to work with SSAC, then it directly sends an appointment letter to the

firm which includes all terms and conditions. If all terms and conditions are favorable to the

SSAC then it accepts the appointment and sends a letter to the NGO as an auditor.

4.2 Audit Procedures Followed By SSAC

The primary goal of SSAC at the time of involving in any audit engagement is to provide the

opinion on Financial Statements in accordance with Bangladesh Standards on Auditing (BSA)

as well as International Standards on Auditing (ISA). SSAC also seek to provide auditing and

management consultancy services that are innovative, efficient and most importantly

responsive to the NGO’s needs.

There are seven steps involved in the procedures that come one after another. Steps are as

follows:

Identity overall goals

Gather & evaluate initial information

Assess general risks

Assess account-specific risks

Develop effective and efficient audit plan/work program



Conduct audit testing

Evaluate and communicate audit results

4.2.1 Identify Firm’s Overall Goals

The goal of SSAC in conducting an audit is to express an opinion as to whether the financial

statements are prepared and presented fairly in accordance with Generally Accepted

Accounting Principles (GAAP). The Firm’s policies on Generally Accepted Accounting

Principles are contained in Accounting Standards. The audit team considers these standards

in formulating an opinion. In forming an opinion, the audit team also addresses

responsibilities for:

Errors

Irregularities and other matters

Efficiency

NGO value

4.2.1.1 Errors

Errors are unintentional misstatements or omissions of accounts of disclosures in financial

statements and may involve:

a) Mistakes in gathering or processing accounting data from which financial statements are prepared.

b) Incorrect accounting estimates arising from oversight or misinterpretation of facts and;

c) Mistakes in the application of accounting principles relating to amount, classification, manner of presentation or disclosure.

The audit team is required to design the audit to provide reasonable assurance of detection of

material errors.

4.2.1.2 Irregularities and other matters

Irregularities are intentional misstatements or omission of amounts or disclosures in the

financial statements, including fraudulent financial reporting and misappropriation of assets.

So there is always a risk that material irregularities may occur and not be detected. This risk is

increased by the possibility of management’s override of internal controls, collusion, forgery,

or unrecorded transactions. So the audit team is required to design the audit to provide

reasonable assurance of detection of material misstatements regarding irregularities.



4.2.1.3 Efficiency

The audit team should design audit procedures that accomplish the overall goals discussed

above in the most efficient manner. Performing an efficient audit involves:

Performing front-end risk assessment and planning with adequate partner and

manager involvement.

Designing the combination of audit procedures based on the risk assessment that

will efficiently reduce the risk of undetected material misstatements to an

appropriately low level.

Assigning work to adequately trained and supervised persons with appropriate

experience and skill levels.

4.2.1.4 NGO value

It has long been a tradition of SSAC to provide enhanced value to NGOs as an integral part of

audits. This strategy has allowed SSAC to differentiate our approach from that of other firms.

Most NGOs and most of related personnel would agree that the achievement of SSAC

differentiate from other firms and communicate the value of SSAC audit by consistently

stressing the following:

Sound working relationship

Understanding NGO’s activities and funding.

4.2.2 Gather & Evaluate Initial Information

After involving with the NGO, SSAC first task is to collect and evaluate the relevant and

necessary information related to the NGO’s operation for the purpose of:

Understanding the NGO’s activities and operation

Considering the internal control structure

Identifying NGO expectation

Considering materiality.

4.2.2.1 Understand the operation of NGOs

Proper planning and designing of an audit is dependent on proper understanding of NGO’s

operation. So after appointing by a NGO, the members of an audit team use various sources

to gain an understanding of NGO operation.



4.2.2.2 Consider internal control structure

Every NGO has some kinds of accounting system by which transactions are processed, and

records of those transactions maintained. That 'system' should incorporate control features

and is normally referred to as the system of 'Internal Control'.

The existence of a reliable system of internal control can be a great help to the auditor,

because the objectives of the system should be:

a) Ensuring that the records are complete, accurate and properly authorized;

b) Detecting errors and fraud.

So, SSAC’s first task in relation to the NGO's system of internal control is to ascertain record

and evaluate it. Then properly using the knowledge of the NGO's system to plan audit tests to

be performed is necessary.

4.2.2.3 Identify NGO expectation

As external auditor, auditor should identify the NGO’s expectation and design and perform

the audit to meet the NGO expectation.

4.2.2.4 Consider materiality

Information is material if its omission or misstatement could influence the economic decisions

of users taken on the basis of the financial statements. Materiality depends on the size of the

item or error judged in the particular circumstances of its omission or misstatement.

In designing the audit plan, I’ve established an acceptable materiality level so as to detect

quantitatively material misstatements.

4.2.3 Assess General Risks

During audit planning and risk assessment, I’ve obtained initial audit evidence in order to:

1. Effectively assess the inherent risk of potential financial statement misstatements,

2. Identify indicators of possible going concern problems, and

3. Identify account specific risk and design an overall audit approach to provide

reasonable assurance of detecting material misstatements.

The assessment of risk is accomplished using a “top-down” approach. The audit team focuses

initially on high level information. The nature and extent of documentation will vary

significantly based on an entity’s size, complexity, ownership characteristics, and level of risk.



Key Factors

Significant background information and NGO, economic and industry conditions that provide

an indication of the level of risk for an engagement are mentioned in items 1-15 listed below:

1. Understanding NGO business: Can be obtained from various sources, e.g. annual report,

minutes, internal reports, previous year audit work papers, discussion with NGO;

2. Management’s style, outlook;

3. Significant current events and reporting issues;

4. Results of financial performance review;

5. Management control environment;

6. Accounting system – policy, procedure & manual;

7. Materiality consideration;

8. Limitations of the engagement, if any, e.g. documents lost, post dated appointment, no

inventory, no cash count was done;

9. Overall audit approach;

10. Coordination and timing.

4.2.4 Account-Specific Risk Analysis

Specific risk analysis (SRA) builds on information obtained during general risk assessment (GRA) and is completed after consideration of the evaluation of the internal control system. SRA is done to design the nature and extent of substantive tests on account level. SRA includes three functions-

1. Assess account specific risks:

i. Identify accounts to be addressedii. Describe the potential risks/ frauds per GRA -Inherent risk

iii. Describe the potential risks as per SRA assessment -Inherent riskiv. Determine whether the I/C for those accounts are adequate- Control

risk v. Determine whether to perform test of control or not.

2. Assess the risk of potential fraud

3. Develop audit plani. Select substantive audit procedures- Detection risk

ii. Develop work programsiii. Perform engagement administration

4.2.5 Development of Effective and Efficient Audit Plan/ Work Program



Work program is a list of procedures that are needed to be performed to conduct the audit.

The program may also contain the audit objectives for each area and should have sufficient

detail to serve as a set of instructions to the assistants involved in the audit, and as a means

to control the proper execution of the work.

In SSAC, I’ve used work programs for different types of account head. Work programs were

developed for different types of activities and for different types of account heads. Usually an

audit program contains

NGO procedures and background information.

Audit objectives.

Audit procedures.

Performance and results of work.

Conclusions.

Work programs help the auditors to ensure the quality of the audit tasks as it provides

necessary guidelines about how to carry out their audit tasks and how to analyze all the

account heads in a proper way. So when a new student is registered as articled student in

SSAC, it is the responsibility of managers/supervisors to introduce him/her with different

types of work programs.

All procedures included in the work program must be completed and any revisions in the

program, made during testing, must be adequately explained and approved by the senior or

manager.

4.2.6 Conduct Audit Testing

After completing work program, the audit team conducts two types of tests which SSAC

mentioned in earlier discussion. Two tests are:

o Test of Controls

o Substantive Test

4.2.6.1 Test of Controls

Based on the GRA, SRA and evaluation of internal control system, SSAC decide whether to

perform test of control.



The audit team should test any internal controls upon which reliance is placed to reduce the

likelihood of misstatements in the financial statements and the reduced substantive test has

been decided.

For the effectiveness and efficiency of audit work, SSAC conduct test of control at least in the

following three major accounting areas which in turn will cover most of the account level

tests in any NGO.

Type of Test Account level test covered

1) Cash Receipts Test Cash, Bank, Sales, Revenue, Receivables.

2) Cash Disbursement TestCash, Bank, Inventory, Purchase, Fixed

Assets, Payables, Expenses.

3) Payroll Test Payroll expenses, cash, bank.

Control Outlines

Items included in the three tests of control forms can be modified to include additional items,

to delete some non- applicable items and also to customize the test for each and every

different type of NGO specific procedures. Following groups of Internal controls may be

considered while developing the forms for internal control tests.

Authorization controls

Transaction processing controls

Substantiation and evaluation controls

Physical safeguard controls

4.2.6.2 Substantive Tests

Substantive tests are procedures performed to detect misstatements in financial statement

balances. SSAC perform the following two types of Substantive Tests:

Analytical procedures

Detail Tests

4.2.6.2.1 Analytical Procedures



“Analytical procedures” means the analysis of significant ratios and trends including the

resulting investigation of fluctuations and relationships that are inconsistent with other

relevant information or deviate from predicted amounts. Analytical Procedures are the

testing of financial information by evaluating actual vs. expected relationships among

financial and non-financial data, e.g. utilities, rent, payroll. Analytical procedures may be used

as a substantive test of balances and for a final review of yearend financial statements.

Analytical procedures include the consideration of comparisons of the entity’s financial

information with, for example:

Comparable information for prior periods.

Anticipated results of the entity

Similar industry information

SSAC generally apply analytical procedures at or near the end of the audit when forming an

overall conclusion as to whether the financial statements as a whole are consistent with the

auditor’s knowledge of the NGO operation.

4.2.6.2.2 Detail Tests

Detailed tests may include the following:

a) Confirmation of third parties- Bank, A/P, A/Rb) Observation of asset - Inventory count, FA, Cash Count, Payroll cheque distributionc) Tests of reconciliation- bank reconciliation, inter-co reconciliationd) Analysis of accounte) Vouchingf) Exception testsg) Cut off testsh) Inquirei) Valuation testsj) Reading of FSk) Reading of minute of meeting of stockholder, directors and committee.

4.2.7 Evaluate and Communicate Audit Results

At the last stage of audit, the audit team communicates the result of the audit to the management and the stakeholders of the NGO. The audit team issues two types of reports:



External report which is commonly known as the “Auditor’s report”

Internal report which is known as “Management Letter”.

SSAC therefore have three areas to deal with:

--- The unqualified audit report;

--- Qualifications in audit reports;

--- The management letter (also known as letter of weakness or letter of comment).

4.2.7.1 External Report/ Auditor’s report:

Basic elements

The auditor’s report includes the following basic elements, ordinarily in the following layout:

a. Title;

b. Addressee;

c. Opening or introductory paragraph

i. Identification of the financial statements audited;

ii. A statement of the responsibility of the entity’s management and the

responsibility of the auditor;

d. Scope paragraph (describing the nature of an audit)

i. A reference to the BSA;

ii. A description of the work the auditor performed;

e. Opinion paragraph containing

i. A reference to the financial reporting framework used to prepare the financial

statements; and

ii. An expression of opinion on the financial statements;

f. Date of the report;

g. Auditor’s address; and

h. Auditor’s signature.

4.2.7.2 Internal Report/ Management letter

As a value added service to the NGO SSAC gives a Management Letter to its audit NGOs. The main purpose of the letter of management is to draw the attention of management to areas of weakness requiring rectification. It is also possible for the auditor to suggest areas where



economies or improved efficiency are possible. Such a letter is, of course, no substitute for a qualification in the audit report. It will usually deal with matters not serious enough to justify an audit qualification.

4.2.7.2.1 Contents:

Generally the following matters, arising out of the audit, will be included in a letter to

management:

a) weaknesses in the structure of accounting systems and internal controls;

b) deficiencies in the operation of accounting systems and internal controls;

c) unsuitable accounting policies and practices;

d) Non-compliance with accounting standards or legislation.

Points made in previous years' management letter should be reviewed. Where they have not

been dealt with effectively, the auditors should enquire why appropriate action has not been

taken. If the auditors consider the points still to be significant, they should include all these

points again in their current letter. In addition, recommendations made by internal audit

which have not been implemented by management, may need to be included.

4.2.7.2.2 Management response

The auditor should request a reply to all the points raised, indicating what action

management intends to take as a result of the comments made in the management letter. It

should be made clear in the report that the auditor expects at least an acknowledgement of

the letter or, where he considers it appropriate, the directors' discussion of the letter to be

recorded in the board minutes.

4.2.7.2.3 Basic elements of the management letter

The management letter includes the following basic elements, ordinarily in the following

layout:

a) Addressee;

b) Transmittal Letter;

c) Title;

d) Background Information

e) Scope of Work, e.g.

i. Compliance;

ii. Authorization;



iii. Accuracy;

iv. Monitoring;

v. Safeguarding

f) Findings: Each finding consists of four different sections, as under:

vi. Fact (What it is)

vii. Effect (What harm was caused by not complying with the criteria)

viii. Recommendation (That corrects the cause and the condition as applicable)

ix. Management response

g. Date of the report;

h. Auditor’s address; and

i. Auditor’s signature.

4.3 Audit Work - A Chronological Sequence

Although all audits will have precisely the same objective, namely to report to the interested

parties on the results of the audit investigation undertaken within the context of the

engagement, it is nevertheless true that the detailed manner in which the audit is conducted

will depend upon the size and circumstances of the NGO concerned.

For the audit objective to be achieved a systematic approach to the task is essential and,

although all aspects of audit work are closely interrelated, it is convenient to distinguish the

essential phases though which the audit develops.

In the Auditor’s Operational Standard the following five essential phases are highlighted:

1. The auditor should adequately plan, control, and record his work.

2. The auditor should ascertain the NGO’s system of recording and processing

transactions and assess its adequacy as a basis for the preparation of financial

statements.

3. The auditor should obtain relevant and reliable audit evidence sufficient to enable

him to draw reasonable conclusions there from.

4. If the auditor wishes to place reliance on any internal controls, he should ascertain

and evaluate those controls and perform compliance tests on their operation.

5. The auditor should carry out such a review of the financial statements as is sufficient,

in conjunction with the conclusions drawn from the other audit evidence obtained, to

give him a reasonable basis for his opinion on the financial statements.



As required by the Terms of Reference (ToR) the audit was carried out in accordance with

Bangladesh Standards on Auditing (BSA) and the specific conditions and supervision given in

the ToR.

Audit methodology carried out during the audit of principle recipients and sub-

recipient NGOs

The methodology was as follows:

i. Entrance meeting with management of the project;ii. Audit planning-ascertaining the scope and extent of audit work, preparation of

work program and selection of skilled and competent audit team; iii. Reviewing and assessing the internal control environment;iv. Reviewing and assessing the accounting system;v. Contacting and interviewing the program officials as well as beneficiaries

through field visits;vi. Supervising and reviewing of audit work by senior audit personnel;vii. Periodic discussion with the management on audit observations and disposal

thereof; viii. Submission of draft audit report and letter to management;ix. Discussion on draft report and exit meeting;x. Issuance of final report.

Assessment of internal control environment

As part of the assessment of internal control environment SSAC have reviewed the accounts

manual, human resources manual and procurement manual and tested their compliance.

SSAC also reviewed accounting system of the project.



Chapter Five: Analysis of the Financial Statements Maintained by the

SKS Foundation (A Partner NGO of AAB)

Generally the donors prescribe the format they prefer to get financial information. These

formats are maintained by the SKS Foundation; a partner NGO of ActionAid Bangladesh.

Generally statements are prepared with adequate notes to accounts. They keep quarterly

reports.

The Financial statement audit is done through checking different heads of accounts and

conducting field visit. Analysis of the financial statements maintained by the SKS Foundation

(a partner NGO of AAB) is given below:

5.1 Identification and project related information

5.1.1 Identity of SKS Foundation

A non-governmental, non-political, non-profitable, non-religious and humanitarian

organization established on 1 December 1987. SKS is an organization for social welfare. It

started development work for the people through socio-economic programs. SKS is the joint

effort of a few local self-developed young men and women, social workers from various

academic disciplines. The organization may be traced back in the activities of a local club at

Bharatkhali of Gaibandha district, one of the remotest and disaster prone northwestern

District of Bangladesh.

Geographically, one of the distinctive features of the district is that out of its total 2179

square km the river of the Teesta, the Bramhmaputra and the Jamuna engulf large north to

south in the eastern part. The district has about 2.2 million populations. It is heartening to

mention that Gaibandha is one of the extremist disaster prone areas of Bangladesh. Flood is

often common during the monsoon. Reversibly there is prevalence of drought almost every

dry season of the year.

Most miseries in the life of the people is river erosion and this rendered a large number of

people homeless, landless, asset-less and also in loss of valuable belongings. River erosion is



one of the serious causes of poverty in this disaster prone district. The number of poverty

stricken people is increaing day by day where the country situation is reverse.

SKS Foundation is registered with the Government of the People’s Republic of Bangladesh,

Social Welfare Department vide Regestration No. Gaibandha- 274/1991 and will NGO Affairs

Bureau under Foreign Donations (Voluntary Activities) Regulation Ordinance 1978 as

amended in 1982 vide Registration No. Dhaka- 1215/1997 dated 18.11.1997 and last

renewed date 18.11.2007.

5.1.2 Background of the project

Advancing Women to Activate Rights & Empowerment (AWARE) project have been

implementing in 04 unions of Fulchari Upazila under Gaibandha district. Project activities are

IGA development, marketing, khas land, women farmer, leadership building training,

prevented violence against women, linkage with govt./non-govt. organization, child and

adolescent development for socio-economic and political development for achieving its

specific goal and objectives. Participants of the project are women 1255, child 690 and 472

sponsored child of them and adolescents are 66 and total number is 2011. We have passed 6

years of the project. Significant levels of positive changes are made during the period.

5.1.3 Objectives of the project

The specific objectives are:

01. To ensure women’s participation in livelihood activities and to change her position and

condition through income generation.

02. To promote and protect food and livelihood security, mitigate monga of vulnerable

groups in underdeveloped high risk rural areas of Gaibandha district.

03. To increase participation in decision making process at local level and encourage

preparing gender based budget.

04. To ensure women’s right to resource (Khas, Land and Property) and legal rights over

resources i.e. ownership.

05. To take initiatives for ensuring the rights to health and education and incorporate

relevant institutions in this project.



06. To reduce vulnerability to target communities to disasters by using local knowledge and

capacity to mitigate the effects.

07. To explore children’s aptitude through education and cultural programs.

5.2 Basis of preparation

5.2.1 Statement of Compliance

The financial statements have been prepared following accrual basis of accounting in

accordance with the Foreign Donations (Voluntary Activities) Regualtion Ordinance and Rules

1978, Bangladesh Financial Reporting Standards (BFRS) and other applicable laws and

regualtions.

5.2.2 Basis of measurements

The financial statements have been prepared on historical cost convention.

5.2.3 Basis of preparation

The financial statements except for receipts and payments account information have been

prepared on accrual basis of accounting.

5.2.4 Presentation and functional currency and level of precision

The financial statements are presented in Bangladesh Taka (Taka/Tk), which is the

organization’s functional currency. All financial information presented in Taka and has been

rounded off to the nearest integer.

5.2.5 Components of financial statements

Components of financial statements are as follows:

1. Balance Sheet

2. Statement of income & expenditure

3. Statement of receipts & payments

4. Notes to the financial statements



5.2.6 Reporting period

The financial statements covered the period from 1 January 2011 to 31 December 2011 .

Comparative figures have been given.

5.3 Significant accounting policies

5.3.1 Grant

The grant is recognized as income when it is received and ActionAid Bangladesh complies

with the conditions attaching to it. Grants that compensate for expenses incurred are

recognized as revenue in the income and expenditure account on a systematic basis in the

same period in which the expenses are incurred with NGO Affairs Bureau approval.

5.3.2 Income and expenses

All income and expenses are recognized on accrual basis.

SKS FoundationAdvancing Women to Activate on Right and Empowerment Project



Balance Sheet as of 31 December 2011

Assets Note 2011 2010

Taka Taka Property & Assets

Fixed Assets Ann-AA 379,020 496,344379,020 496,344

Current assets

Cash with Bank balance 4.00 57,295

35,121

Total current assets (A) 57,295

35,121

Less: Current liabilities 25,000

21,000

Provision for expenses 5.00 25,000

21,000

Total Current liabilities (B) 25,000

21,000

Net current assets (A-B) 32,295

14,121

Total assets 411,315

510,465

Fund account

Capital fund 6.00 411,314

510,466

Total capital fund 411,314

510,466

5.5.1 Balance Sheet

5.5.2 Statement of Income & Expenditure

SKS Foundation




Statement of Income and Expenditure

For the year ended from 01 January to 31 December 2011

Note2011Taka

2010Taka

IncomeGrants income 7.00 2,485,879 2,659,012 Total income 2,485,879 2,659,012

ExpendituresPersonnel cost 8.00 1,730,176 1,702,976 Seminar/ Workshop/ Conferences 9.00 57,238 107,161 Program Cost 10.00 337,998 376,848 Training cost 11.00 19,682 166,177 Office Stationary & Cell phone bill 12.00 85,663 64,296 Traveling allowances 13.00 73,590 15,036 Office expenses 14.00 88,358 77,874 Others (Audit fee) 15.00 25,000 21,000 Depreciation Ann-AA 167,326 99,435 Total expenditure 2,585,031 2,630,803

Excess of income over expenditure transferred to capital fund (99,152) 28,209

5.5.3 Statement of Receipts and Payments

SKS FoundationAdvancing Women to Activate on Right and Empowerment Project

Statement of Receipts and PaymentsFor the year ended from 01 January to 31 December 2011



Note2011Taka

2010Taka

Receipts

Opening Cash in hand & Bank 35,121 15,032

Grants received 7.00 2,485,879 2,659,012

Loan Received 16.00 313,000 95,000

Total grants received 2,834,000 2,769,044

Payments

Personnel cost 8.00 1,730,176 1,702,976

Seminar/ Workshop/ Conferences 9.00 57,238 107,161

Program Cost 10.00 337,998 376,848

Training cost 11.00 19,682 166,177

Office Stationary & Cell phone bill 12.00 85,663 64,296

Traveling allowances 13.00 73,590 15,036

Office expenses 14.00 88,358 77,874

Others (Audit fee) 15.00 - -

Loan Payment 17.00 313,000 95,000

Capital Cost 18.00 50,000 128,555

Last Year Audit fee Payment 21,000 -

Total payments 2,776,705 2,733,923

Closing balance (A-B) 57,295 35,121

5.5.4 Notes to the Financial Statement

Amount in Taka

Amount in Taka

4.00 Cash with Bank balance 31 Dec 2011 31 Dec 2010



Bank balance 57,295 35,121

57,295 35,121

Name of Bank: Sonali Bank LimitedAccount No.: 1192 CurrentBranch: Fulchari, Gaibandha

5.00 Provision for expenses

Audit fee 25,000 21,000

25,000 21,000

6.00 Capital fund

Opening capital 510,466 482,256Excess of income over expenditure (99,152) 28,210

411,314 510,466 7.00 Grants received from AAB

The following amount was received from AAB through Sonali Bank Limited, Varotkhali Branch, Gaibandha through AAB Bank Account no. 009-062795-011 on the following dates:

Received date28.04.11 1,203,695 1,484,96801.08.11 699,644 872,05130.10.11 582,540 301,993

2,485,879 2,659,012

8.00 Personnel Cost

Director (Partly) 106,574 96,889Managerial 319,748 290,680Skilled 1,303,854 1,315,407

As per statement of income & expenditure 1,730,176 1,702,976

9.00 Seminar/ Workshop/ Conference

Quarterly Meetings of Community Journalist Group 1,795 5,995 Sponsorship PRRP Community Discussion 240 990Entrepreneurship development Meeting 1,981 -Linkage with different service providers 1,000 1,235Quarterly Producer group meeting (snacks) 596 3,520Women linkage with local market 1,892 -Khas land follow up meeting 1,972 5,335Open Budget, Meeting, gathering at union level 5,000 28,001Meeting with UP standing committee 2,640 7,690Participatory plans and budget 900 -Participatory review & reflection process workshop 1,147 3,556



Yearly planning workshop and review meeting 1,510 -Monthly program staff meeting 11,996 10,467National and International day observation 6,845 24,898Lokokendra forum meeting 742 -Lokokendra wise planning workshop 1,030 -Awareness on Disaster preparedness 496 -Spouse/ Guardian forum meeting 1,460 6,390Follow up of dialog session on right to know the information

2,288 -

Court yard session for 2 adolescent group 490 -School level orientation 1,450 4,149Meeting with UP NNPC 464 4,935Monthly refresher meeting for center facilitator 9,304 -

57,238 107,161

57,238 107,161

10.00 Program Cost

CM Materials 28,946 49,702

Child Photo/ Profile 8,897 -

Local Travel cost per month Tk. 700. 7,000 -Refreshment for children for CM 7,979 -

Community news letter 8,008 4,995Children Emergency Fund 2,996 3,936Administrative Equipments Maintenance 8,495 48,934

Nursery activity 1,000 -Sapling follow up 200 -Vegetable cultivation follow up 187 -Road side tree plantation 485 -Upazila and District level Mela 850 -Seed collection and preservation 998 -Reflect Materials cost 2,362 -Communication cost for PO, LM 6,586 -House Rent for lokokendra 12,000 10,900Mini library 498 - Field visit of Govt. Service provider 1,000 -Govt. service camp at Lokokendra level 1,000 -

Linkage with govt. department for skill training 500 -

Facilitator Honorarium ( learning centre) 143,507 61,653

Child Material 20,418 22,406

Sports materials for shishu kendra 4,972 Participating in local level cultural program 620 -

House Rent for shishu kendra 52,800 -Sponsorship children scholarship 5,000 -Annual sports 5,460 -Child Center Formed 174,322Total Program Cost 337,998 376,848

337,998 376,848



11.00 Training cost

Women Leadership Training 12,182 74,952Women Leadership Follow up Training 7,500 48,147Others training - 43,078

19,682 166,177

12.00 Office Stationary & Cell phone bill

Printing, stationery & photocopy 34,273 -Phone, fax, internet etc. 51,390 64,296

As per statement of receipts & payments 85,663 64,296

13.00 Traveling allowances

Local travel & outstation travel 54,507 -Fuel 13,261 11,004Repair & Maintenance 5,822 4,032

73,590 15,036

14.00 Office expenses

Cleaning Materials 1,562 - Electricity Bill 7,200 14,375 IPS Battery 7,534 - Misc. Exp 7,587 8,299 News Paper 3,044 - Partner's Office Rent 55,200 55,200Bank charges 6,231 -

88,358 77,874 15.00 Others(Audit Fee)

Audit fee 25,000 21,000

As per statement of income & expenditure 25,000 21,000

Less: Provision for audit fee 25,000 21,000

As per statement of receipts & payments - -

16.00 Loan Received

SKS Gaibandha-GF 313,000 95,000


17.00 Loan Payment

SKS Gaibandha-GF 313,000 95,000




18.00 Capital Cost

Motorcycle - 110,600Electric Equipment - 12,505Lokokendra Furniture & Fixture - 5,450Tally Software 50,000 -

50,000 128,555


SKS FoundationAdvancing Women to Activate on Right and Empowerment

ProjectFor the year ended from 01 January to 31 December 2011


Figure in Taka

Chapter Six: Terms of Reference (ToR); Requirements and Compliance


Balance as on 1st

January'11

Addition during the

period

Sales/Transfer

during the

period

Balance as on 31 December 11

Depreciation Rate

Balance as on 1st January'11

Charge during the

year

Adjustment on sale / transfer

during the Year

Balance as on 31 December

11

Written down value as on 31 December '11

Construction 101,385 - 101,385 20% 20,277 20,277 - 40,554 60,831

Furniture & Fixtures 216,375 - 216,375 15% 101,613 32,456 - 134,069 82,306 -

Electric Equipment 210,580 - 210,580 20% 113,114 42,116 - 155,230 55,350 -

Motorcycle 333,150 - 333,150 20% 134,837 66,630 - 201,467 131,683 -

Bicycle 11,200 - 11,200 15% 6,503 1,680 - 8,183 3,017

Tally Software - 50,000 - 50,000 33% - 4,167 4,167 45,833

Total 2011 872,690 50,000 - 922,690 376,344 167,326 - 543,670 379,020

Total 2011 744,135 128,555 872,690 276,911 99,435 376,346 496,344

Particulars

C O S T D E P R E C I A T I O N


In addition to the auditors’ report, we also report as follows on the basis of our examination of the books and records of “Advancing Women to Activate on Right and Empowerment Project” of SKS Foundation on specific points required by the NGO Affairs Bureau vide its circular no. ABIBU/PIN-2/CA Firm /745/2010-37 dated 12 January, 2012 as follows:

ToR-1: Requirements:

In course of audit of NGOs, the audit firm should perform their duties with utmost responsibility remaining fully independent.

Compliance:

We have conducted the audit in accordance with Bangladesh Standards on Auditing (BSA) and disposed of our obligations with utmost responsibility remaining fully independent. The terms of reference provided with the enlistment has been properly followed.

ToR-2: Requirements:

The audit firm should conduct the audit of NGOs keeping in view whether the project has been implemented in compliance with the following rules and regulations enacted for the NGOs and the terms & conditions relating to project approval:

The Foreign Donation (Voluntary Activities) Regulation Ordinance, 1978. The Foreign Donations (Voluntary Activities) Regulation Rules, 1978. The Foreign Contributions (Regulation) Ordinance, 1982. Working procedures as mentioned in circular (Paripatra) No. 33.43.27.00.00.01.2000-

107 issued by the office of the Prime Minister dated 29.05.01 (as applicable). FD-6 related to project approval (where projects objectives, aims and budgets are

stated in details). FD-7 or FC-1 Terms and Conditions of project approval.

Compliance:

In course of our audit we observed from our test verification that the NGO has followed the rules and regulations enacted for the NGOs as applicable and the project has been implemented and the expenditure have been incurred in accordance with the provisions of FD-6 and the terms and conditions contained in the project approval.

ToR 3: Requirements:

The audit firm, along with their audit report, should issue audit certificate as per format FD-4 and annexure A-1 attached thereto prescribed by NGO Affairs Bureau, relating to foreign donation received and expenditure incurred, duly filled up by the audit firm. All information in FD-4 regarding foreign grant receipts and payments must be in cash basis, not in accrual basis i.e. no foreign grant can be presented as negative or receivables. In FD-4 difference



between approved budget and actual budget need to be disclosed as gross amount. All details i.e. line item wise approved budget, actual expenditures, variances and reason for variances will be included in annexure A/1. All information (budget line item and sub line item) in annexure A/1 and budget should be same as in approved project (Annexure-C).

Compliance:

Form FD-4 along with Annexure-1 have been prepared in the prescribed format of NGO Affairs Bureau in respect of foreign donations herewith.


In case of more than one project separate audit reports must be prepared as per project year. If there is any local income/grant related to the project should be shown separately.

Compliance:

The NGO maintains one separate project account.

ToR-5: Requirements and Compliance:

The summarized project goal, objective and main activities of the project should have to be mentioned in the audit report along with factors stated below:

a) Summarized project briefing

A non-governmental, non-political, non-profitable, non-religious and humanitarian organization established on 1 December 1987. SKS is an organization for social welfare. It started development work for the people through socio-economic programs. SKS is the joint effort of a few local self-developed young men and women, social workers from various academic disciplines. The organization may be traced back in the activities of a local club at Bharatkhali of Gaibandha district, one of the remotest and disaster prone northwestern District of Bangladesh. Geographically, one of the distinctive features of the district is that out of its total 2179 square km the river of the Teesta, the Bramhmaputra and the Jamuna engulf large north to south in the eastern part. The district has about 2.2 million populations. It is heartening to mention that Gaibandha is one of the extremist disaster prone areas of Bangladesh. Flood is often common during the monsoon. Reversibly there is prevalence of drought almost every dry season of the year. Most miseries in the life of the people is river erosion and this rendered a large number of people homeless, landless, asset-less and also in loss of valuable belongings. River erosion is one of the serious causes of poverty in this disaster prone district. The number of poverty stricken people is increasing day by day where the country situation is reverse.

SKS Foundation is registered with the Government of the People’s Republic of Bangladesh, Social Welfare Department vide Registration No. Gaibandha- 274/1991 and will NGO Affairs Bureau under Foreign Donations (Voluntary Activities) Regulation Ordinance 1978 as amended in 1982 vide Registration No. Dhaka- 1215/1997 dated 18.11.1997 and last renewed date 18.11.2007.



ii) Objectives

The specific objectives are:

01. To ensure women’s participation in livelihood activities and to change her position and

condition through income generation.

02. To promote and protect food and livelihood security, mitigate monga of vulnerable

groups in underdeveloped high risk rural areas of Gaibandha district.

03. To increase participation in decision making process at local level and encourage

preparing gender based budget.

04. To ensure women’s right to resource (Khas, Land and Property) and legal rights over

resources i.e. ownership.

05. To take initiatives for ensuring the rights to health and education and incorporate

relevant institutions in this project.

06. To reduce vulnerability to target communities to disasters by using local knowledge and

capacity to mitigate the effects.

07. To explore children’s aptitude through education and cultural programs.

iii) Targets:

The project will be implemented as per the guideline of ActionAid Bangladesh and in coordination with SKS Foundation in selected areas.The targeted beneficiaries of the project are women 1255, child 690 and 472 sponsored child of them and adolescents are 66 of Fulchari Upazila in Gaibandha District.

iv) Location of the project:

Fulchari Upazila in Gaibandha District.

v) Number of personnel (Local): No.Cost

Director (Partly) 1 106,574

Managerial 1 319,748

Skilled 14 1,303,854

As per statement of income & expenditure 1,730,176

b) Details of name of the project, total duration of the project, the date and memo no of project's approval, date and memo no of release of fund, amount of released fund (with installments), amount of received foreign donation, audit year, project area, number of beneficiary, auditors appointment date are given below:



Name of the Project Advancing Women to Activate on Right and Empowerment Project

Total duration of the project 3 Year

The date and memo no of project's approval

Date: 05/04/2011; Memo No:ABBU/PRO-5/SKS Fou:/100-11/2011-1007

Date and memo no of release of fund Date: 05/04/2011; Memo No:ABBU/PRO-5/SKS Fou:/100-11/2011-1007

Amount of released fund (with installments)

No. of Installment

Date Amount Total

1 28.04.11 1,203,695

2,485,879

2 01.08.11 699,644

3 30.10.11 582,540

Amount of received donation 2,485,879

Whether the foreign donation received in the mother account before releasing the fund or not?

Yes.

Audit Year 1st January to 31st December 2011

Project Area Fulchari, Gaibandha.

Number of BeneficiaryParticipants of the project are women 1255, child 690 and 472 sponsored child of them and adolescents are 66 and total number is 2011.

The date of appointment of auditor for Audit purpose October 17, 2011


Balance Sheet, Income & Expenditure Account and Receipts & Payments Account will be part of audit report and duly signed by NGO authority. Further explanation is required if Balance Sheet is not required. The Receipts and Payments Account should have been prepared in accordance with the head of accounts maintained in the ledger book of the NGOs. Notes showing the detailed breakup of the expenditures under the consolidated head of accounts have been attached herewith wherever found necessary. (Such as Contingency and Others) should have to be attached.

Compliance:



a) Receipts and payments account has been prepared in accordance with heads of Accounts maintained in the ledger book of the NGO.

b) No difference is observed between the heads of accounts as per receipts and payments accounts and the heads of accounts as per Annexure-A/1 attached with the Form FD-4

c) Notes showing the detailed breakup of the expenditures under the consolidated head of accounts has attached herewith wherever found necessary.

d) Balance sheet has been prepared and submitted along with this audit report.

e) The Receipts and payments account, income and expenditure account and balance sheet have been duly signed by the appropriate authority of "AWARE Project" of ActionAid Bangladesh and with this audit report.


Audit report for NGO must be counter signed by appropriate authority of CA firm along with common seal. But full signature of auditor is required in audit certificate, Balance Sheet, Accounts Statement, FD-4 certificate and compliance of TOR statement. Full signature of auditor will be followed by full name and title of FCA/ACA. NGO audit report must be prepared according to the following sequence:

First Part

Auditors Certificate along with scope opinion etc. Balance Sheet Income and expenditure statement Receipts & Payments Statement Notes to financial statements Schedule/Appendix/ Others

Second Part

FD-4 Certificate Annexure A/1 Notes to FD-4 (if any) Statement on NGO Bureau TOR compliance

(All conditions described in TOR must be complied)

Compliance:

The audit report has been duly signed and the seal of the firm has been affixed. And also the full signature of the auditor Mr. Snehasish Barua, FCA is also added. The report is prepared as per Bangladesh Standards on Auditing (BSA) and the sequence prescribed in the ToR.FD-4 certificate is attached along with Annexure-A/1.




In case of ongoing project (multi years project life), the auditor’s report must contain information on whether last year audit has been performed or not and if performed whether that was send to NGO affairs Bureau. In case of similar project (i.e. in last year there was a similar name/ similar nature), the auditor’s report also contain information on whether last year audit has been performed or not and if performed whether that was send to NGO affairs Bureau.

Compliance:

This is a three year project. Audit had been performed in the previous year. And the audit report was send to NGO affairs Bureau.


On completion of the audit, the audit firm should forward one copy of the audit report in a sealed cover directly to the Deputy Director (Inspection and Audit), NGO Affairs Bureau, Dhaka.

Compliance:

The audit report has been duly signed and the seal of the firm has been affixed. One copy of the audit report is being forwarded directly to the Deputy Director (Inspection and Audit), NGO Affairs Bureau, Dhaka.


If there is any partner NGO in the project under audit, the accounts of partner NGO also required to be audited. There should be a statement regarding partner NGO audit and whether the audit is satisfactory or not.

Compliance:

There is no partner NGO involved as such, therefore no statement regarding partner NGO audit is required.


Information of Initial registration number and date of registration of NGO with NGO affairs Bureau and last renewal date need to be mentioned.

Compliance:

SKS Foundation is registered with NGO Affairs Bureau of Bangladesh Government vide registration number 1215 dated 11 November 1997 and subsequently renewed on 31 August 2008 covering a five-year period upto 31 August 2013 under the Foreign Donation (Voluntary Activities) Regulation Ordinance and Rules 1978.




Whether all the foreign donations have been received by the NGO through a single bank account as per provisions of Rule 7 of The Foreign Donations (Voluntary Activities) Regulation Rules, 1978? If the foreign donations are received through more than one bank account the name of concerned bank, account number and the amount should have to be mentioned.

Compliance:

The NGO as per provisions of Rule 7 of The Foreign Donations (Voluntary Activities) Regulations Rules, 1978 has reportedly received all the foreign donations through a single bank account.


Detailed description of the bank account number approved by the NGO Affairs Bureau to receive donations, name of the bank and branch, amount of donation received and name of the donor for the project year. Also relevant project bank account number, bank name & branch and balance information required to mention. There should be information regarding reconciliation of mother account and project account and whether the reconciliation is correct or not.

Compliance:

Donations were received through mother account no. 3998/37, Sonali Bank, Bharatkhali Branch, Gaibandha. The donations amounting to Tk. 2,485,879 was received against the approval of Tk.2,500,000 as per NGO Affairs Bureau approval no ABBU/PRO-5/SKS Fou:/100-11/2011-1007 dated 05/04/2011. The date of receipt, amount received in local currency are as follows:

Received from Taka Grant received from :

ActionAid Bangladesh 2,485,879

Local Source (Cash) -

Local Source (Goods) - 2,485,879

Date Taka 28.04.2011 1,203,695 01.08.2011 699,644 30.10.2011 582,540

2,485,879 The details of the banks, and the balances as at December 31, 2011 were as follows:



Name of BankBalance as per bank

Statement as at December 31, 2011

Balance as per project bank book as at

December 31, 2011

Bank reconciliation

performed and checked

Sonali Bank Limited , Fulchari, Gaibandha

Current A/C No. A/C No-1192/5 (Mother account)

Nill Nill No

Sonali Bank Limited , KurigramSTD A/C No-3998/37

(Operational account)91,420 57,295

Yes


In case of foreign donations received in kinds, making the valuation thereof should be included with grant shown in FD-4 (either separately or consolidated) and should submit statement in respect its use and description of balance in accordance with FD-5.

Compliance:

As reported by the management no donation in kinds was received during the period under audit.


Interest earned/exchange gain derived on foreign donations should have to be stated separately in the statement of accounts and to spend such fund whether permission/approval has been obtained from NGO Affairs Bureau should have to be mentioned.

Compliance:

No exchange gain was earned against the foreign donation received for the Project.Bank interest amounting to Tk.0 was earned on foreign donations through bank account maintained for the ActionAid Bangladesh. The amount was not spent and not included in the unutilized balances as it is required to be refunded to the donor and therefore approval from NGO Affairs Bureau was not required.


Whether the NGO has maintained Cash Book/Bank Book and Ledger Book under double entry system of accounting as per requirement of Rule 6 of The Foreign Donation (Voluntary Activities) Regulation Rules, 1978, also a statement on whether the cash book/bank book, ledger book, stock register, asset register & other registers has been maintained accordingly.



Compliance:

Cash book/bank book and ledger on double entry basis and other registers viz attendance register and stock register have been maintained as per Rule-6 of Foreign Donations (Voluntary Activities) Regulation Rules 1978.


In case, where there is Revolving Loan Fund (RLF) against previously and currently implemented projects of the organization, whether separate project/donor-wise accounts are maintained or a consolidated accounts is maintained should have to be mentioned. Also a statement on whether this account has been audited separately every year or not. If foreign aided RLF account is not kept separate and there are loan disbursements then service charge received required to show as a receipt.

Compliance:

There is no Revolving Loan Fund (RLF) against the project. Therefore no existence of such account; and audit is not required.


Information regarding having license of Micro Credit Regulatory Authority for NGO’s which involves in micro credit by using foreign donors grant.

Compliance:

There was Micro Credit activity of the NGO.Reg.No-01621-00534-00045


Whether the amount of donation has been spent in foreign currency? If spent the details of which should have to be mentioned.

Compliance:

No transaction was made in foreign currency on account of any expenditure during the period.


Whether excess expenditure has been incurred against particular head of expenditure or adjusted the expenditure of one head with another head or adjusted the expenditure of an unapproved head with an approved head? If done, detail description of the purpose of such excess expenditure along with the reasons should have to be mentioned.

Compliance:

Expenditure of some head has exceeded the approved budget.\



Item of Expences Budget Actual Spent Variance

Fuel 12,000 13,261 (1,261)

Repair & Maintainance 5,300 5,822 (522)

Misc.Exp 7,500 7,587 (87)

Bank charges 6,000 6,231 (231)


Whether the salary-allowances of officers/staffs are paid by bank cheque or in cash should have to be mentioned. The statutory requirement is all expenditures along with salary and other benefit over BD Taka 10,000 needs to be disbursed through bank account.

Compliance:

Salaries of employees of the “Advancing Women to Activate on Right and Empowerment Project" of SKS Foundation were paid through cheques or bank advice so far as it came to our notice.


If the project is implemented by receiving loan, necessary information relating to the source of loan should have to be mentioned.

Compliance:

During the Project period, loan was taken from other projects by the management to implement the activities of the Project and subsequently the loan was fully paid.


Whether any member of the General Body and Executive Committee receives salary-allowance or any sorts of honorarium? If receives, details of which should have to be provided. Also if executive head of NGO is taking salary or other benefits and honorarium from Project under audit either full or partial, detail disclosure is required.

Compliance:

Salary or remuneration has not been received by any member of general body.


Whether the internal control system of the organization is satisfactory or not should have to be satisfactory.

Compliance:



The internal control system of the Organization was found satisfactory to the extent of the audit of the Project financial statements.


Whether any amount has been refunded to the donor agency without prior approval form NGO Affairs Bureau? If refunded, details should have to be given;

Compliance:

No amount was refunded to the donor during the year, which required approval from NGO Affairs Bureau.


Whether in light with the government rules and regulation revenue stamp has been affixed in appropriate case, VAT/Income tax has been deducted from bill/voucher or not and deducted VAT/Income tax have been duly deposited with government exchequer , auditors comments should have to be given in this regard. Also a statement of VAT and IT deposit (separate amount for each) has to be given.

Compliance:

Required revenue stamps were affixed where necessary.The Organization deducted Value Added Tax (VAT) where applicable, as per requirements of Value Added Tax (VAT) Act 1991 and the Value Added Tax (VAT) Rules 1991 for the Project and deposited the same with the Government Exchequer.

The Organization deducted tax as per the requirements of Income Tax Ordinance 1984 and Income Tax Rules 1984 for the Project and deposited the same with the Government Exchequer.

Sl. No. & Subject

Deductable Amount(Tk)

Deducted Amount(Tk)

Deposited Amount in

Treasury(Tk)Due Amount

1 2 3 4 2-3=5

01. VAT 13755 13755 13755 0

02. IT 1785 1785 1785 0

Total 15542 15543 15544 0


Statement on whether the NGO as a legal entity as per Income Tax Ordinance 1984 submitted income tax return accordingly.



Compliance:

Income Tax Return of SKS Foundation for the assessment year 2012-2013 will be due on 15 July 2012.


Information required relating to whether the NGO has any income generating activities under the project, if so whether the income tax has been duly paid for on all earnings or income tax exemption certificate in relevant case.

Compliance:

There was no Income Generating Activities (IGA) under the project.


Whether any officer/staff/member of the executive committee or general body has availed foreign tour with the finance/air ticket/other facilities received from foreign sources. If availed, description of which and in case of foreign tour whether permission of NGO Affairs Bureau has been obtained details of which should have to be stated.

Compliance:

As we informed by the management and observed from our verification that, none of the officers/ staffs/member of the executive committee or general body has availed foreign tour with the finance/air ticket/other facilities received from foreign sources.


The description of fixed assets along with probable market price held by the organization at the time of audit should have to be attached with the report. The related fixed assets/deeds/house rent agreement/donated land are in the name of the organization should have to be mentioned in the report and if available detailed schedule should have to be given.

Compliance:

Fixed assets have been reported in the financial statements. Particulars regarding house rent agreements are given below:

SKS Foundation Agreement Period

Name of Landlord Monthly Rent Taka Gaibandha

Project Office in Fulchari Gaibandha

01/01/2011 to 01/12/2011

Tahmina Begum Simu 4186



Shisu Kendra 01/07/2011 to 01/12/2011

Md. Mokbul Hossen 400

Shisu Kendra 01/01/2011 to 01/12/2011

Md. Saju Mia 400

Shisu Kendra 01/01/2011 to 01/12/2011

Nahida 400

Shisu Kendra 01/01/2011 to 01/12/2011

Ayna 400

Shisu Kendra 01/01/2011 to 01/12/2011

Rahima 400

Shisu Kendra 01/01/2011 to 01/12/2011

Md. Abdus Salam 400

Shisu Kendra 01/01/2011 to 01/12/2011

Jobeda 400

Shisu Kendra 01/01/2011 to 01/12/2011

Babee 400

Shisu Kendra 01/01/2011 to 01/12/2011

Moslema 400

Shisu Kendra 01/01/2011 to 01/12/2011

Shefali 400

Shisu Kendra 01/01/2011 to 01/12/2011

Mariom 400

Shisu Kendra 01/01/2011 to 01/12/2011

Md Amjad 400

Shisu Kendra 01/01/2011 to 01/12/2011

Habeda 500

Shisu Kendra 01/01/2011 to 01/12/2011

Farjana 500


After the completion of audit the CA firm should submit a Management Letter/ Report of all irregularities/ illegal expenditure / unauthorized expenditure/ expenditure which is beyond budget to the management authority of NGO and one copy of its require to submit Deputy Director of NGO affairs Bureau (Inspection & Audit) along with audit report. If such letter is not required that also needs to be mentioned.

Compliance:

As we didn't found any irregularities / illegal expenditure / unauthorized expenditure in the accounts of AWARE project, management letter is not required.


A CA firm can not perform audit for the same NGO project more than consecutive three (3) years. For this purpose a statement is required that the CA firm is not engaged as an auditor for the NGO under audit for more than consecutive three (3) years.

Compliance:



This is the first year of audit of "Advancing Women to Activate on Right and Empowerment Project" of SKS Foundation by Syful Shamsul Alam & Co, Chartered Accountants


A list of Executive Committee/ Governing Body/ Management Committee members of NGO under audit should have to be given.

Compliance:

The names and designations of the Members of the Senior Management Team of the AAB are:

Sl. No. Name of the Member Designation01 Murshed Alam Sarkar President02 Md. Mosharof Hosen Khan Vice-President03 Rasel Ahmed Liton Chief Executive04 Prity Dey Manager05 Rafiqul Islam Sarkar Member06 Nishat Nahar Member07 Md. Aiyub Ali Member


Statement on whether the cost of project audit has been incurred from the project fund or not.

Compliance:

The project audit cost of will be incurred from the project fund as per approved FD-6 , Ref ABBU/PRO-5/SKS Fou:/100-11/2011-1007 dated April 05, 2011.


In the audit report, the Chartered Accountant (CA) firm enlistment with NGO affairs Bureau reference number along with date and serial number should have to be mentioned.

Compliance:

Firm’s enlistment number with NGO Affairs Bureau and date of renewal has been disclosed in the Auditors’ Report (Page no.1) and Auditors’ Certificate (Page no.12).

Chapter Seven: Findings & Opinion

6.1 FD-4 (Findings)



I have assisted auditing the Accounts of Advancing Women to Activate on Right and

Empowerment Project of SKS Foundation,(Radakisnopur, College road, Gaibandha)

having registered with the NGO Affairs Bureau, under the foreign donation (Voluntary

Activities ) Regulations Ordinance 1978 (Reg. no.-1215, Date-18-11-1997 and

subsequently renewed on 31 August 2008 covering a five-year period up to 31 August

2013) for the year ended 31 December 2011 and examined all relevant books and

vouchers and certify that according to the audited accounts;

(1) The brought forward Foreign Donations for the project was Tk. 35,121

(2) The Foreign Donations amounting to Tk. 2,485,879 were received by the organization

for the project.

(3) The Balance of unutilized Foreign Donations by the organization is Tk. 57295.

(4) Foreign Donations amounting to Tk. 2,467,705 have been utilized for the following

purposes:

Heads of Expenditure Differences

Amount as per Approved budget

Amount actually Paid Differences if any with reason

(As per Annexure-A of project proforma) 2,500,000 2,467,705

The remaining balance of Tk 52,295 is deposited in the bank.

(5) Certified that the organization has maintained the accounts of Foreign Donations and records relating thereto in the manner specified as in section 5 of the Foreign Donations (Voluntary Activities) Regulations Ordinance, 1978 read with rule 6 and 7 to the said ordinance.

(6) The information furnished above is correct and checked by the chartered accountants.

6.2 Notes to the FD-4



Details of Estimated Cost of the Project

For the period from 1 January to 31 December 2011

Head of Expenditure Cost in Bangladesh Taka

(i) Civil construction, if any Nil

(ii) Other material inputs including Furniture and fixture Nil

(iii) Personnel 1,730,176

(iv) Consultants:

(a) Foreign(b) Local

Nil

Nil

(v) Revolving loan fund, if any: Nil

(vi) Training, if any: (a) Field duration

(b) Number of Trainees

Nil

Nil

(vii) Seminar/Workshop/Conferences 57,238

(viii) Program Cost 337,998

(ix) Office Accommodation 55,200

(x) Office equipment (Tally Software) 50000

(xi) Vehicles Nil

(xii) Travelling allowances and daily allowances 73,590

(xiii) Custom duty and Sales Tax (CDST) Nil

(xiv) Head Office and Branch Office’s expenses charged 118,821

(xv) Contingency Nil

(xvi) Others(Audit Fee) 25000

Total 2,467,705

Chapter Eight: Conclusion



In this study I have tried to incorporate a practical exposure on the audit of Non

Governmental Organizations. As an external auditor during audit it is important to maintain

professional skepticism to identify misstatement in the financial statements. As now a day,

auditing is not confined to rectification of irregularities and placing findings, the

recommendation made on those irregularities concerning the effects is a moral and

professional responsibility.

For this reason a proper understanding of the client and its operations is necessary for an

auditor. In Bangladesh the NGO sector is big and the number of beneficiaries is increasing day

by day. Proper transparency of this sector can ensure development in greater extent for our

beloved country Bangladesh. CA firms can contribute a lot in achieving this goal as the

Chartered Accountants have a place of trust and belief by the people.

ANNEXURE (Annexure A/1)




Sl Amount as Amount

# Head of expenditure per budget actually spent

Tk (Tk.) (Tk.)

1 Civil construction if any

2 Other material inputs

3 Personnel : Number of man-month

aChief Executive (Please specify theforeign or local)

Local 106,574 106,574

b Other managerial staff

1. Foreign:

2. Local: 319,748 319,748

c Skilled

1. Foreign:

2. Local: 1,324,901 1,303,854 21,047 1.59%

d Unskilled

Total (a+b+c) 1,751,223 1,730,176 21,047 1.20%

4 Consultants: Number man-month

(a) Foreign: -

(b) Local: -

5 Training for project 19,750 19,682 68 0.34%

6 60,100 57,238 2,862 4.76%

(Annex-C part-5)

7 Program Cost & Tally Software 391,177 387,998 3,179 0.81%

8 Office accommodation 55,200 55,200 0.00%

9 Office equipment

10 Vehicles

Variance % of Variance

: SKS Foundation

:

: ABBU/PRO-5/SKS Fou:/100-11/2011-1007 dated April 5, 2011 (Govt. Approval)

: January 1 to December 31, 2011 Tk. 2,500,000.00

: January 1 to December 31, 2011

Name of organization


Govt. approval & fund release memo and date

Project period and budget

Audit period

Name of the project

6Seminar/Workshop/Conferences for the project

60,100 57,238 2,862 4.76%

(Annex-C part-5)

7 Program Cost & Tally Software 391,177 387,998 3,179 0.81%

8 Office accommodation 55,200 55,200 0.00%

9 Office equipment

10 Vehicles

11Travelling allowances and daily allowances (TA & DA) for consultant and project personnel.

59,650 54,507 5,143 8.62%

12 Fuel 12,000 13,261 (1,261) -10.51%

13 Repair & Maintainance 5,300 5,822 (522) -9.85%

14 Custom duty and VAT - -

15 Cleaning Materials 2,200 1,562 638 29.00%

16 Elecricity Bill 7,200 7,200 - 0.00%

17 IPS Battary 8,000 7,534 466 5.83%

18 Misc.Exp 7,500 7,587 (87) -1.16%

19 News Paper 3,150 3,044 106 3.37%

20 Bank charges 6,000 6,231 (231) -3.85%

21 Contingency -

22Audit fee

25,000 25,000 -

23 Printing, stationery & photocopy 34,500 34,273 227 0.66%

24 Phone Bill 45,150 44,750 400 0.89%

25 Fax, internet etc. 6,900 6,640 260 3.77%

Total 2,500,000 2,467,705 32,295 33.88%


BIBLIOGRAPHY:

The Companies Act, 1994 (Act XVIII of 1994);

Bangladesh Standard on Auditing (BSA), Volume I & II;

Bangladesh Accounting Standards (BAS);

The Societies Registration Act, 1860 (Act XXI of 1860);

The Trust Act, 1882 (Act II of 1882);

Microcredit Regulatory Authority Bangladesh: Microfinance Regulations in Bangladesh Development & Experiences, Lila Rashid, Director, MRA;

Ahmed Saifuddin, Spring 2006, NGO perception of poverty in Bangladesh: Do their programmes match the reality?, University of Bergen, Norway;

Hashimi, S M, S R Shchuler and A P Riley (1996): 'Rural Credit Programmes and Women's Empowerment in Bangladesh', WorldDevelopment, Vol 24, No h, pp 635-53;

Zohir, Sajjad and I Matin (2004): 'Wider Impacts of Microfinance Institutions Issues and Concepts', Journal of International Development, Wiley and Co. UK;

Chow David FCCA, FCPA, CPA (April 2009): Analytical Procedures –A powerful tool to auditors, T/Dialogue.


internship report shakil

Documents

period of internship

internship period

actionaid bangladesh

weeks internship program

aware project

case study

ssac chartered accountants

great opportunity