Lobbying for Accountability

Neelam Makhijani

The accountability question

• Morality question vis Public

• The transparency viewpoint vis Internal NGO sector

• The regulation viewpoint vs State

Are we credible?

• There is a huge media onslaught on the NGO sector and its credibility.

• Scandals in the press.

• Mis-utilisation of donor money

• No accountable patterns

• When we do advocacy, NGO’s need to look into their

own houses

Credibility Alliance

• Agreement of minimum norms of governance and accountability in non profit sector

• Consists of 600 members.

• Norms recognised by Planning Commission

• Accreditation of non profits

• www.credall.org.in

Principles agreed by the Credibility Alliance

• Accountability and Transparency

• Not ranking or rating

• Norms will have to be agreeable to the sector

Agencies that would be best suited for assessors for this

accreditation task• The Schools of Social Work across the country can serve

as accreditation agencies

• Management Schools like IRMA

• Audit firms like Grant Thornton, Deloitte & Price

Waterhouse Cooper, FMSF or foundations like GIVEINDIA and rating agencies like CRISIL, ICRA

Attributes and Criteria for empanelling accreditation agencies

• Process for Accreditation

• Role of National Accreditation Council

• Economics for Accreditation

Who will do the Accreditation Assessment Process?

• Social Auditors

- Valid membership of a professional body in India (CA/ICWA/CS)

- No history of any allegations of physical misconduct (through self certification)

- Business existence for at least 3 years in some location/name/principal partners

- Exposure to development sector (desirable)

• LIKELY NORMS FOR VOLUNTARY SECTOR SUGGESTED BY CREDIBILITY ALLIANCE

• Minimum Norms

• Identity - Principle: The organisation should exist and be registered

• Existence

• The organisation has been in existence for a minimum of 1 year from date of registration

• The physical address given by the organisation is verifiable Legal Status

• The organisation is registered as Trust/ Society/ Section 25 Company.

• Registration documents of the organisation are available on request

Minimum Norms Contd….

• Governance

- Principle: The organisation is committed to and practices good governance specially because

voluntary organisations draw upon public funds.

Minimum Norms Contd….• OPERATIONS

Principle: The organisation must conduct its Programmes and

operations efficiently and effectively in the public interest ProgrammeActivities to be in line with the vision/ purpose/ objective of the organisation. As part of the accreditation process, the assessing agency should not go into the quality of work being carried out or any evaluation which is in the nature of monitoring and evaluation of the development programmes of the VO.

Minimum Norms Contd….• Management

• Appropriate systems be in place for:

• Periodic Programme planning/ monitoring/ review

• Internal control

• Consultative decision-making

• Human Resources

• Clear roles and responsibilities for personnel (including volunteers) exist

• All personnel are issued a letter of contract/ appointment

• Appropriate Personnel Policy is in place

Accountability and Transparency

• Accountability Signed audited statements are available: balance sheet, income &expenditure statement, receipts and payments account, schedules to these, notes on accounts and the statutory auditors? report

Transparency The organisation’s Annual Report be disseminated/ communicated to key stakeholders and available on request every year, within 8 months of the end of the organisation’s financial year.

Frequency of Validity of Accreditation

The accreditation renewal will be based on categorization of NGO’s on the annual receipts of the organization based on the total receipts received. On the basis of receipts 4 categories have been considered.

a. above 10 crores • Valid for 2 years, renewal for 2 years

b. between 1&10 crores • First accreditation valid for 3 years, renewal valid for 2 years

c. below 1 crore • Valid for 3 years, renewal for 3 years

d. below 10 lakhs • Valid for 5 years

Issues for Consideration

• Formation of National Accreditation Council

• Institution of Corpus Funds for such work on the

Lines of National Trust to enable smaller organisations to accredit.

• Facilitation of Electronic Database and Integration of Databases and Guidestar kind of databases