FINANCE POLICIES AND PROCEDURES

Samajik Seva Sadan (SSS) being registered under societies registration act 1860, under 12A & 80G of the income Tax act 1961 and Foreign Contributions regulation act; it follows the accounting principles and practices that conforms to provisions of these acts. The general Accounting principles and practices of the organisation are mainly

1. It follows the mercantile system of accounting as per income tax act. . Hence the income and expenditure for the whole financial year will be made whether paid or not. Depreciation on fixed assets will be maintained on WDV method as per income tax act. Consistency and full discloser will be maintained in following principles   and maintenance of accounts.

2. The financial year of the organisation will be from 1st April of one year to 31st March of the following year.

3. Books of account shall be maintained at head office / branch office as per the requirement of projects operation area and donor requirements.

4. Financial statements and utilisation certificates are to be made preferably on half yearly basis or as per the donor requirements and to be audited by qualified auditors. Consolidated financial statements should be prepared and audited with in July 31st. The return can be filed with Ministry of Home Affaires latest by 30th July and Income tax authorities latest by 30th September of each financial year as per statutory requirements.

5. Program accounts will be settled within three months from the day the program is over.

Sources of Fund: For achievements of its aim and objectives Samajik Seva Sadan (SSS) shall raise its funds from the following sources

1. Membership fees and entrance fees from General body and executive body members

2. Grants, contribution from General body and executive body members

3. Service Charges from beneficiaries treated to be members by deposit of some amount for a particular objective of a project Grant.

4. Sale of own publication/publication of any associates of SSS related to the objectives of any grant sanctioned for implementation by SSS in the form of Books, periodicals, CDS or DVDS etc.

5. Grants, donations or contributions, loan from the financial agencies, Nationalised and Privatised Banks and other funding agencies from non-members, Govt. Local Bodies, Industrial House, Business communities, National and international sources sanction with in the legal objectives of SSS as a society.

6. By any other sources as decided from time to time by the presidium in consultation of the board within the purview of its objectives or by hiring assets created from the requirements of the project grants.

The funds received from (donors / members having permanent account number / recognition as donor agencies) under the above mentioned heads by cash for amounts below 2,000/- and by cheque / draft / fund transfer by Mail transfer (RTGS) for amounts exceeding 2,000/- should be deposited in scheduled bank account opened in the name of SSS for the respective objectives / Projects. Acknowledgement for money receipts for receipts should give the receipts in Indian national currency and receipts of foreign currencies should be done both by format specified by the donor agencies and money receipts. Total receipts of foreign currencies deposited in the scheduled bank and bank interest accrued to the deposits should be acknowledged to the Ministry of Home Affaires Govt of India in the form of FC-4 Return on or before 31st July of every year.

The utilization of funds will be made by following proper accounting principles / procedures described above and maintenance of proper books of account required for statutory and internal control of funds. The books of account should be audited by qualified statutory auditor appointed by SSS and utilisation certificate for each project along with statutory audit report for the organisation as a whole should be prepared by the auditor as per the requirement of donor and Government.

Purpose of this chapter is to provide guidelines/Follow general procedures and practices to the persons responsible in handling of cash and the internal controls to be maintained for the proper safekeeping and smooth management of Cash transactions.

Cash Transactions

1. All receipts of Samajik Seva Sadan (SSS) generally includes grant / donations for a particular activity, revolving loan repayments and sale of SSS /or its associates publications etc. All the receipts of the above categories received from outsiders not exceeding two thousand may be received by cash and amount exceeding 2,000/- should be received only by account payee Cheque / draft in favor of SSS.

2. All cash receipts should be deposited in the designated bank account on the same day or next working day unless impracticable or not directed by competent authority to deposit for the purpose of the requirements of the organization.

3. All payment to outsider above Rs.2,000/-, except to the Govt. and Govt. undertakings and statutory authority unless approved by approving authority should be paid by account payee Cheque or draft. Cheques issue register should be maintained to keep control utilization of Cheques.