rituparna_1021006_end term project ppt

7/30/2019 Rituparna_1021006_end Term Project Ppt

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FINANCIAL ACCOUNTABILITYOF

NGOSIN INDIARituparna Roy

1021006


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REGISTRATION

Society registered under the Societies Registration Act

- Common purpose

- Minimum seven members at state level and eightmembers at India level

Charitable Trust- Trust is defined as an obligation annexed to the

ownership of property and arising out of confidencereposed in and accepted by the owner

Company, under Section 25 of the Companies Act

- Purpose of formation

- prohibited from payment of dividend to its members

- procedure for applying


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NGOSAND FOREIGN CONTRIBUTIONS

In recent years, rapid growth in the number of

NGOs worldwide

In Indiaapproximately 3.3 million NGOs (Singh,

2009)

Receive donations from national and international

organizations

Rapid increase in the amount of foreign

contributions received over the last 10 years


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TRENDSOVERLAST 10 YEARS


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SOME STATS..

20,088 associations out of 36414 associations in 2008-09reported receipt of foreign contributions amounting to Rs10,802.67 crores

Top recipient state was Delhi(Rs.2012.83 crore) followed byTamil Nadu(Rs.1649.27 crore) and Andhra

Pradesh(Rs.1244.21 crore) Top donor country was the US (Rs. 3433.30 crores) followed

by UK (Rs. 1,130.68 crores)and Germany(Rs. 1103.68 crore)

World Vision of India, Tamil Nadu was the highest receivingassociation( Rs.192.30 crores)

Highest amount of foreign contributions was used forestablishment expenses(Rs 5,022.21 crores) followed by ruraldevelopment(Rs. 2834.66 crores) and welfare of children(Rs2,303.60 crores)

Source: FCRA Annual Report 2008-09


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FINANCIAL ACCOUNTABILITY

No agreed definition of accountability as yet

Traditional ConceptsFormal Authority

3 issues need to be addressed

Accountable for what?Accountable to whom?

Accountable how?

Benefits from increased accountability

Different departments of Indian Government havedifferent interpretations of accountability

In this contextFinancial Accountability


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WHYACCOUNTABILITYISANISSUE?

Monitoring problem distance between donor and

beneficiary

Large amounts of funds attracted by the

organizations substantial underreporting

In 2008-09, returns have not been received by

16,326 organizations

Classification of utilization of funds often reported

under miscellaneous heads

Sector regulated by multiple laws and acts

Donors have been the most vocal commentators on

this issue EZE of Germany


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FOREIGN CONTRIBUTIONS REGULATION ACT (

FCRA)

Endeavour of Foreigners division bring in

transparency and accountability in the operations of the

act

Major objective to ensure funds are not diverted to

other uses Section 13 and rule 8(1) NGO needs to maintain a an

account for any foreign contribution received and a

record of how the contribution has been utilized

In 2006, FCRA online services online filing ofapplication for registration, prior permission, filing of

statutory returns, status enquiry etc

Major concern - substantial underreporting of funds


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ACCOUNTABILITY MEASURESIN PRACTICE

Certification Systems: Swiss GAAP PRC 21

adopted by International Committee of the Red

Cross and the World Wide Fund for Nature

Rating Systems: Foreign Aid Ratings ( grassroots

Org) , Worth Magazine

Codes of conduct: Codes of the Australian Council

for Overseas Aid (ACFOA 2000)18,Credibility

Alliance in India

Monitoring & Evaluation: Most widely used and

accepted


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ACCOUNTABILITY MEASURES CONTD..

Disclosure of statements and reports

Participation: process based approach

Social Auditing

Disclosure statements Evaluations

Participation

Codes of conduct


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SOMEPROBLEMSWITHACCOUNTABILITY

Fail to address an NGOs moral obligations

Prioritize certain relationships over others

Unrealistic/immeasurable goals

Can be disciplinary and controlling Cost and time dedicated to ensure accountability

product vs. process

- accountability gap

Limitations of increased stakeholder accountability


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INITIATIVESTAKENBYTHEVOLUNTARYSECTORTO

PROMOTEACCOUNTABILITYIN INDIA

Credibility alliance

Introduced in 2001 , registered in 2004

Consortium of voluntary org committed towardspromoting accountability and transparency of IndianNGOs through good governance

Norms divided into minimum norms and desirablenorms

Give India

Indias first online, web based donation service

Organizations may receive donations provided theymeet the norms set up by Give India

Annual review carried out of NGOs listed with it

Must meet standards established by the CredibilityAlliance


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INITIATIVESTAKENCONTD..

Guide Star India

Online platform for Indian NGOs to showcase their work

Initiative of CSIS India

A trust set up in 2009

3 pronged strategy of CSIS- Educate NGOs

- Create an electronic NGO database on a web based platform

- Connect with government

Partners Outstanding Annual Reports Awards

Initiative of CSO partners

Started in 2009

Annual Report as a tool to demonstrate accountability


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REASONSFORLOWPARTICIPATION

Lack of internet access, unreliable power supply

and language barriers

Low levels of communication

Training required with respect to listing,accreditation processes

Shortage of funding in capacity building


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INITIATIVESTAKENBYTHE GOVERNMENT

Planning Commission nodal agency for interfacebetween Government and the voluntary sector

Planning Commission put forth the National Policyon the voluntary sector in the year 2007

Create an enabling environment for NGOs Legitimately mobilize financial resources from India

and abroad

Identify systems so that the Government and the

voluntary sector may work together Encourage NGOs to adopt transparent and

accountable systems of governance andmanagement


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INITIATIVES TAKENBYTHE GOVERNMENT

Need for an alternate central law of registration for

the voluntary sector

Setting up of an independent, national level, self

regulatory agency

NGO partnership system launched by the Planning

Commission in July, 2009

Online platform profile, identification number,

details of existing NGOs

Allows NGOs to apply for grants and track status of

applications


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CONCLUSIONWHEREISTHEDEBATE

GOING?

No one single standard by which NGOs can be

judged

Questions of stakeholder prioritization,

accountability gap and time devoted to

accountability

Balance between short term vs. long term impacts

of accountability

Prevalence of accountability mechanisms need to

be addressed

Maximize benefits of accountability to all interested

parties


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Thank You!!

rituparna_1021006_end term project ppt

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