1. Enhancing Credibility Presentation by Subhash Mittal Nurturing Partnerships for Developing Sustainable CSOs IIC, February 19, 2010

2. Presentation by Subhash Mittal IIC, New Delhi, 19 Feb 2010 Approach  Developing a Transparency & Accountability Framework

3. Presentation by Subhash Mittal IIC, New Delhi, 19 Feb 2010 Accountability Framework Overall Objective  To operate in a transparent manner and be accountable to its main stakeholders.

4. Presentation by Subhash Mittal IIC, New Delhi, 19 Feb 2010 Strategy for achieving the objective  Installing a strong internal control environment which enhances transparency.  Identifying accountability needs /requirements of main stakeholders.  Putting in a system which helps fulfil these requirements.

5. Presentation by Subhash Mittal IIC, New Delhi, 19 Feb 2010 Main Stakeholders  Members/Trustees of the Society / Trust  Employees  Fund Providers  Government  Communities

6. Presentation by Subhash Mittal IIC, New Delhi, 19 Feb 2010 Members / Trustees  Byelaws / Trust Deed generally requires annual audited accounts to be presented and approved in General Meeting  Mostly medium to large CSOs provide Annual Reports covering audited accounts as well as activity report.

7. Presentation by Subhash Mittal IIC, New Delhi, 19 Feb 2010 Fund providers Institutional Donors -Providing reports and complying with agreement terms. -Agrees to independent audits / evaluations. -Provides Utilisation Certificates

8. Presentation by Subhash Mittal IIC, New Delhi, 19 Feb 2010 Fund providers………. Cont’d Individuals  Providing reports / information to the donors (challenge how to keep donor satisfied so that s/he continues to provide donations)  Keeping donor involved in what you are doing so that her / his interest in the organisation / activity continues (desired)

9. Presentation by Subhash Mittal IIC, New Delhi, 19 Feb 2010 GOVERNMENT Income Tax  Audited accounts to be filed with Income Tax authorities alongwith an annual return (Form 10B).  Applying for renewal of S. 80G exemptions. (authority to issue tax-exempt receipts to individual donors).  Compliance with tax withholding provisions.  Withholding (TDS) returns to be filed regularly. FCRA  Annual audited return to be filed with Ministry of Home Affairs.

10. Presentation by Subhash Mittal IIC, New Delhi, 19 Feb 2010 Employees  Paying dues as agreed to.  Creating working conditions which are conducive to work.  Keeping employees informed of major developments within organisation.  Staff Development (desired)

11. Presentation by Subhash Mittal IIC, New Delhi, 19 Feb 2010 Communities  No defined accountability parameters (challenge) From donor perspective  Best accountability of utilisation of funds can come from community – develop social audit strategies which are part of program strategies From the CSOs point of view  Sustainability of activity  Scope for community to even fund the activities

12. Presentation by Subhash Mittal IIC, New Delhi, 19 Feb 2010 Transparency framework Within organisation  A good internal control system helps ensure transparency over activities after elapse of time  Documentation of procedures makes everyone aware of processes, reducing scope for arbitrariness

13. Presentation by Subhash Mittal IIC, New Delhi, 19 Feb 2010 Transparency framework ……… cont’d Outside organisation  Providing sufficient details about the CSO’s activities both physicals as well as financials will help provide credibility about the organisation to the public at large  Wherever possible provide information in the format that it is easy to compare.

14. Presentation by Subhash Mittal IIC, New Delhi, 19 Feb 2010 Strong Suggestion Each CSO must develop a written Accountability & transparency framework for itself. This would help generate strong credibility with its stakeholders.

15. Presentation by Subhash Mittal IIC, New Delhi, 19 Feb 2010 Thank you.