Financial Management of NGOs

Compiled by: Dr.Mohammed Guthigar

 Mandatory
 It is an important element of program management and it should be regarded as a separate
activity overseen by an auditing service.
 Financial management includes planning, organization, control and monitoring of financial
resources for an organization to achieve its goals.
 Financial management is not a simple accounting practice.
 Financial management for NGO is like running maintenance for a car. Unless you fill your car
with good quality gas and oil and have it serviced regularly, the car won’t work properly.
 A car not serviced will sooner or later break down and its passengers won’t reach their
destination. In practice, financial management means taking action to ensure a healthy financial
state of an organization and leave nothing to chance.

What are all there in Financial management?

 Cash book
 Ledger
 Bills/Vouchers/receipts
 Bank passbook
 Donation/cash receipt book
 Stock book/Inventory
 Voucher files
 Budget
 Audited statement of accounts

1
 Cash book(Sample)
ABC Trust

Cash book Apr2016-March2017

Month Particulars Credit Debit Balance
To opening balance
1.7.2016 2000 2000
To donation received from jasir
1.7.2016 1000 3000
By travel paid to Johny
4.7.2017 250 2750
By refreshments
5.7.2018 120 2630
By stationary
6.7.2019 100 2530
Closing balance 3000 470 2060

Ledger(Sample)
Contribution &
31/12/2014 718 To Contribution from Robert Donation
Contribution &
10/3/2015 720 To Contribution from Jerald Donation
Date R.NO V.NO Particulars Head of A/c Credit Debit
To 02 meter patch Equipment purchase
24/7/2014 2 cord cost paid repairs &maintenance 195.00
To Intel core
computer processer
purchase cost paid to Equipment purchase
26/7/2014 3 SSSSSTechnologie repairs &maintenance 35870.00
To HP 1510 Inkjet
printer cot paid to Equipment purchase
28/7/2014 4 SVS CORP Pune repairs &maintenance 4341.00

2
 Receipts & Payments Account
NGO-ABCD
Jan - December 2015
opening balance Program COSTS
Cash in hand - 409.15 Training for target group
Cash at Bank - 25257.37 OB :1)Act-1 Training for SHGs on conducting effective meetings 0.00
(xxx bank -222222) OB:1) Act-2 Trainings for SHGs on maintening Books and documets 0.00
By Interest
received 19030.00 OB :1) Act-8 Dialogue with functionaries of financial and government institutions on EDP 2268.00

Grants from xxx 1585064.00 Sub total 35024.52

OB:2)Act-3 Information dissemination program on NREGA through publicity material 4952.00

Sub total 18819.00

OB:3)Act-1 Enterprise development training : 7717.00
OB:3)Act-2 Enterprise development motivation training for those who start new 6814.00
Personnel costs
Project Director - Personnel cost 242242.00
Project Coordinator - Personnel cost 205836.00
Office Secretary - Personnel cost 95160.00
Driver - Personnel cost 95160.00
Travel allowance to staff 12915.00
1284781.52
Administration cost
Office rent & Electricity 109091
Communication (Phone charges , postage, internet) 19567.00
Stationery , printing and Xerox 6299.00
Computer and printer repairs & maintennence 1350.00
Vehicle maintenance (fuel,repairs,insurance,spare parts) 148311.00
Staff Meeting 21236.00
Consultation and staff trainings 22025.00
Auditing 17100.00
Sub total 344979.00
Total of 5.1.1+5.1.2+5.1.3 1629760.52

Closeing Balance 0.00

Cash in hand…00
Cash at Bank---00
1629760.52 1629760.52

3
Cash Voucher

4
Cash Receipt

Bill format

5
Stock Inventory