1. Well-come to the Presentation of Financial Systems Shushilan

2. A standard policy and procedures are followed by the organization contained 11 Chapters with 40 different form and formats

3. Financial Management Responsibility DeLEGATEdAUTHORITyDeLEGATEdAUTHORITy ACCOUNTABILITyACCOUNTABILITy EC Director Finance Team Project Team

4. The Financial Planning Process Plan Do Review 1. Set Budget 2. Implement Plans 3. Monitor Budgets 4. Build in learning & take action

5. AreaNumber No. of Total Staff23 No. of Professional Staff07 Skilled staff16 Male = 20 Female = 3 Finance & Internal Audit Staff

6. Field Worker Supervisor/Centre Manager Senior Program Officer Accountant Asstt. Director/Cell Head Director Deputy Drectorr Approval Procedure Work Execution Preparation of bills Recommendation Voucher Preparation Verify with budget Bill approval Voucher Approval

7. ▪ The following position can approve the payment bills up to an amount of: GradeNature of Expenditures Amount limit – Tk Remarks Grade -10Project Budgeted Heads Any AmountBills and Vouchers Grade -9 & 8Project Budgeted Heads Any Amount only for bills If Advisers (grade 9) lead any Projects as PC Grade -7 & 6Project Budgeted Heads 25,000only delegated persons

8. CASH MANAGEMENT 1. Keep money coming in separate from money going out 2. Always give receipts for money received 3. Always obtain receipts for money paid out 4. Pay surplus cash into the bank 5. Have properly laid down procedures for receiving cash 6. Restrict access to petty cash and the safe 7. Keep cash transactions to an absolute minimum Shushilan also has separate cash management policy.

9. Bank Management 1. Shushilan operating separate Bank Account for the grant received from each donor. At least two signatures are necessary to operate the bank account. 2. Cheque signatory must not prepare Cheque and vouchers. 3.All cancelled Cheque are marked “CANCELLED” and preserved in the voucher file along with the supporting voucher. 4.All payments made to vendors through Account Payee Cheque for TK. 10,000 and above. 5. An acknowledgement obtained from the vendor after payment of any bill.

10. Formation of Procurement Committee : Director of Shushilan form a Procurement Committee (PROC) consisting of at least 3-5 members. The Director and the Accountant (same Project) should not be included in this procurement committee. The PROC will send their recommendation to Director or his/her designated person for Approval. But Director will remain accountable for all procurement. Continue----- Procurement Procedure

11. Actions before Procurement: * Procurement of goods or services require complete recording. * The expenses must be authenticate by proper documentation. * No expenditure to be reimbursed for procurement if those are not budgeted, allowable, and reasonable. * Standard procurement procedure must be followed. * In case of extreme emergency, which prevents to follow the procedure, prior permission must be received from donor. * Administrative negligence or delays caused by poor management cannot be invoked to skip the normal procedure.

12. Fixed Assets, Store, Inventory Management 1.WAREHOUSE INVENTORY 2.NON-WAREHOUSED INVENTORY 3.Depreciation 4.BOOKS and DOCUMENTS 5.Registers 6.Store Management 7.Fixed Assets Sale Procedures

13. Shushilan Standard Procurement Policy:. An organization for Development of eco-sensitive Community of the Sundarbans and its Vicinity AmountSourceQuotationMethod of Procurement Up to TK. 15,000 Open Market/ Enlisted Vendors NoneDirect purchase/open market TK. 15,001 - 50,000 Open Market/ Enlisted Vendors ThreeOpen market purchase by PROC. For enlisted vendor, purchase order should be issued by Director/ Deputy Director TK. 50,001- 10,00,000 Open Market/ Enlisted VendorsThree Open market purchase by PROC. For enlisted vendor, purchase order should be issued. by Director/Deputy Director Above TK.10,00,000 Open Market/ Enlisted Vendors/Press Tender ThreeThrough limited tender (sealed bid)/ press tender. For all cases Purchase Order will be issued. by Director/Deputy Director

14. Mode of Payment:  The grantee should make payment to the vendor through Account payee cheque if it is equal to or more than Tk. 10,000 (ten thousand) against the above procurements of goods and services. Cash payment should be restricted as much as possible. But for a single bill, cash purchases should not be more than Tk.10,000. In case of emergency the Director can approve cash to be paid to the vendor.  In the remote area or in some cases the suppliers do not have bank account or in some reasons they are unwilling to accept the cross cheque, DD or TT in that case Accounts section may arrange payment against the written request from supplier. This must me approved by the authority of Shushilan. 

15. Internal Control Person WhoShould Not Prepares VouchersApprove Vouchers Prepares ChecksSign Checks Has Access to Blank ChecksPost Payments Receives CashRecord Cash Receipts Prepares Bank Deposits or Records Cash Receipts Reconcile Bank Accounts Is Responsible for the Physical Security of Assets Perform the Physical Inventory of Assets Prepares PayrollDistributes Payroll Payments Maintains Driver LogMonitor Fuel Usage

16. Financial Monitoring Shushilan monitor the project activities and prepare a monitoring report in the filed of program and financial management system. Corrective actions are taken on the basis of this monitoring report particularly in the field of budget, internal control system and program activities. For monitoring activities Shushilan use internal resources as well as external resources when required.

17. Accounts Record Keeping Cashbook (Manually) Tally Software (Accounting Software) Concern Worldwide Provided Accounting Software Ledger, Stock Book, Advance Register, Cheque Register, Daily Cash in hand certificate/Register, Assets Register, All type of Voucher Monthly, Quarterly, Six Monthly and Yearly Financial Report with Bank Reconciliation Statement & Budget Variance. Internal and External Audit Report

18. Reporting System  Shushilan prepare Financial Report on the basis of donor requirement.  The financial reporting process are Monthly, Quarterly and yearly.  The financial reporting consider financial statement, budget variance, utilization rate, cash flow and explanatory notes.  The Budget Compared to Actual Performance Report and the Cash flow Report shows how the financial planning and financial accounting processes come together to produce management reports.

19. Audit i. Donor Audit: Donor or the representative of the donor or any other person/ auditor/ organization appointed by them may conduct audit any time whenever felt necessary. The Auditor can check all the financial and program related records and activities. ii.External Audit: The organization will conduct external Audit as per requirement of the project/GOB. iii. Internal Audit: Shushilan has a internal audit cell who conducts audit of books of accounts of all projects round the year

20. Fraud and Irregularity Management It happened when internal control systems fail to prevent losses through theft, fraud or other irregularities. Fraud is defined as: a deliberate, improper action, which leads to financial loss to the organization. This includes theft of goods or property; falsifying expenses claims; and falsification (or destruction) of records to conceal an improper action. Fraud does not include: accounting errors; actions condoned by established practice; and cases where no loss is incurred. THE PROCESS: Deterrence Types of irregularity Detection Investigation The Aftermath – As per HR policy

21. Budget Trends (Taka) YearsDonors Grant 20054,50,05,500 20066,66,47,619 200711,63,18,459 2008 (6 month)10,65,20,636 2008-200924,14,51,625 2009-201023,82,03,846 2010-201241,12,06,642 2011-201266,02,27,490 2012-201371,97,52,208