The objective of this research is to provide ideas, concepts and guidelines that serve to improve the administrative system and develop an Accounting System for Non-Governmental Organizations (NGOs), which provides information related to their sources of funding and the use of those resources, as well as, to comply with the obligations indicated by the tax and fiscal control authorities.
The present investigation tries in some way, to fill the void that exists in our country, regarding the lack of studies related to the Accounting, Administrative and Financial processes that are applied in the NGO's, which at present, are faced with achieving self-sufficiency financial stability in your projects and programs, and long-term financial stability.
NGOs are entities legally recognized by the State (legally protected by Title XXIX of the first book of the Ecuadorian Civil Code) that promote programs and projects aimed at improving the living conditions of the Ecuadorian population, with funds from international cooperation, the State, private company and processes
self-managed.
“The NGOs are autonomous entities, legally established that have non-profit status and organized by ordinary citizens (professionals, technicians and field workers), whose primary motivation is to improve the standard of living of their people. They orient their services to their mission in terms of guiding (guiding, accompanying), serving the population in diverse and complex activities related to development processes, such as the generation of knowledge, the provision of services that respond to the satisfaction of the fundamental human needs, and the investigation and application of alternative development strategies that promote social transformation. Although their work may have political implications, they are not political parties and tend to maintain an independent political position.
According to the Cabanellas Jurist, this type of organization is understood as a certain patrimony linked to a lawful purpose of a charitable, pious, scientific or educational nature, determined by the will of one or more people. The elements to be taken into account are:
The subject of duty that is the founder and the subject of law that is the beneficiary.
The object is the patrimony or goods that are destined for this purpose.
The form determined by its purpose
The diversity of these organizations has made civil legislation classify them as Associations, Foundations and Corporations.
According to the Association of Development Corporations of the Microenterprise ASOMICRO, in its book entitled "Mobilization of Local Private Resources for Development and Legal Framework that governs NGOs", published by IRFEYAL, January 1999, (p. 107 - 112); What distinguishes NGOs from others in the private or public sector is fundamentally their purpose and the nature of their assets. The purpose is the common or social good that refers to the beneficiary group directly established by the organization; As for the patrimony, it is characterized by being destined only for institutional purposes, and on the other hand, the patrimony belongs to the institution, but does not belong to any of its members or partners.
In Ecuador, according to the Directory of Social Development Organizations, Edition 2.000, published by Fundación Alternativa, Abya Yala and UNDP, there are a total of 675 registered national NGOs, which are executing a total of 318 Projects. An important concentration of the services provided by the executed projects suggests that NGOs largely supply the basic needs neglected by the State.
Although it is true that NGOs have a significant contribution to development, many of them present internal limitations that interfere with their normal development and expansion; The limitations to which reference is made have been detected in the control of the use and management of funds and of how to inform the Donor Agencies.
The investigative work is structured in three Chapters, interconnected and sequential in their study; The first Chapter deals with the theoretical foundation of Accounting, its conceptualization and importance and its fields of application. The objective of this Chapter is to introduce the investigated topic and provide the research with sufficient
theoretical foundation, there the criteria and concepts on accounting sciences that various researchers and scholars have are expressed; in addition to the opinions of the author of this Monograph.
The second Chapter is related to the Accounting Principles and the Ecuadorian Accounting Standards NEC, which must be applied in NGOs to ensure a uniform and transparent criterion of their financial system.
Also, the necessary tools are detailed with special emphasis, the procedures that must be followed to ensure efficient Internal Control and the accounting processes and records that are suggested to be used by the NGOs for their normal performance.
The Third Chapter refers to the Financial Reports that the NGOs must present to the Donor Agencies, the formats of each report are presented indicating and the frequency of their presentation, it also deals with the Consolidated Financial Statements, which consist of grouping in a Balance Sheet of Situation and one of Results, the accounting movements made in all the projects and / or programs that are executed, demonstrating in an integral way the financial situation of the NGO, at the end of the fiscal year, that is, as of December 31.
- Accounting fundamentals
Accounting is based on the need to have accurate, timely and complete financial information, with documents and records that demonstrate the processes carried out by an entity and the results obtained that reflect its financial situation.
Any organization that carries out a permanent or occasional activity, for its operation requires controlling the operations it carries out, the changes that have occurred in its assets, its obligations and its assets, so that the results of administrative and financial management can be reported and interpreted.
Many accounting scholars agree that Accounting is an economic science, which has strong relationships with the law since it must be adapted to comply with the legal norms that govern countries and public and private institutions.
- Concept and Importance
To define Accounting, first the concepts issued by certain writers and scholars will be reviewed:
Fernando Boter and Mauri: «We can define Accounting by saying that it is the science that coordinates and provides in adequate books the annotations of operations carried out by a company mercantile, in order to know the situation of said company, determine the results obtained and explain the causes that have produced these results. "
Agustín Argaluza: "Accounting is an auxiliary technique of Business Economics, the objective of which is to satisfy information and control needs at a minimum cost, thus helping companies to achieve higher profits."
Ricardo de Sá: "Accounting is a science that determines the laws that regulate accounts related to events and management actions, whether public or private."
Bernanrd Hargadón: "Accounting is the art of collecting, summarizing, analyzing and interpreting financial data, in order to obtain the necessary information from a company."
David Himelbleau: "Accounting is the language of business and therefore, in current conditions, it is essential for its success."
Inter-American Committee of Accountants: "It is the art of registering, classifying and summarizing in a meaningful way and in monetary terms, transactions that are, in part at least, of a financial nature, as well as interpreting the results obtained."
Enrique Flower Newton: «Accounting is a technical discipline that from the processing of data on the composition and evolution of the patrimony of an entity, the goods owned by third parties in its power and certain contingencies, produces information for decision-making of administrators and interested third parties and for monitoring the resources and obligations of the entity.
Sergio García and Miguel Mattera: «Accounting is a technical discipline that deals with the measurement, recording and interpretation of the effects of acts and events that can be quantified and with economic repercussions on the assets of entities in general and that determine the amount of the profit realized, with the purpose of contributing to the control of its operations and the adequate decision-making.
From the review of the previous definitions, it is concluded that Accounting is a science that allows the analysis and recording of financial events expressed in monetary terms, carried out in an entity or company, until obtaining Financial Statements whose results must be analyzed in order to guide decision-making, therefore Accounting allows the Executive Director (Legal Representative) to foresee what to do in a given situation, decide and act in a timely and effective manner.
The accounting system works from the economic and financial transactions that are the result of institutional management. There are four periods or stages that should be considered in the development of the Accounting of any NGO:
Initial
Period Management
Period End-of-year
Period Settlement Period
The Initial Period: It includes the organization of the NGO and the accounting entries that will motivate the preliminary operations (preparation of budgets, the first requests for funds to donor agencies, receipt of funds in the NGO or donor or beneficiary entity).
The Management period: It is defined as the period of time between the beginning and the end of each accounting year (January 1 to December 31).
The period at the end of the fiscal year: It includes the closing operations of the Financial Situation and Results (of remaining funds for the NGOs) for the determination of the objectives and goals that were achieved and the results of the economic operations.
The settlement period: It is the one that comprises the final settlement and closing balance of the Project or Agreement (most Agreements and Projects do not start on the first day of the year and their end date is different from December 31).
From the above, the need arises to use special methods that satisfy the characteristics of each
NGO with its donor agency. All these transactions are: classified, verified, registered, analyzed and reported through the monthly, quarterly and annual financial reports.
Accounting application fields
Accounting is applicable to all activities carried out by human beings, as well as business activities, activities of a cultural, political, union, sports, military, religious, social, recreational, social assistance nature, etc. in which there is management of economic resources, Accounting is applied, therefore it is stated that its field of application is unlimited, however its principles are unique. There are specialized fields in the accounting area in accordance with the objectives they meet, in such a way that it is possible to speak of:
Cost Accounting: According to Cecil Gillespie in his book entitled Accounting and Cost Control, Editorial Diana, Mexico, Cost Accounting consists of a series of procedures aimed at determining the cost of a product and the different activities that are required for its manufacturing and sales, as well as to plan and measure job performance. It differs from business and financial accounting in that, while the former concentrates its attention on individual products and relatively small groups of activities, the latter draws on the perspective provided by monthly balance sheets and operating and profit statements.
Government or Government Accounting: It is one that serves to record, classify, summarize and interpret the operations of government agencies or institutions, including their companies, based on the General State Budget.
Bank Accounting: It is applied in the Institutions that belong to the National Financial System, the same ones that are regulated by the Superintendency of Banks.
Cooperative Accounting: It is applied in institutions recognized and regulated by the Superintendency of Cooperatives.
Agrarian Accounting: With specialized procedures that allow the registration and results of a temporary activity, the same that enjoys some exemptions in the Tax Regime Law.
Oil Accounting: It is applied in the institutions that carry out activities of inspection, prospecting, exploitation and transportation of oil.
Additionally, specialized Accounting is applied in activities such as Construction, Hospitality, Livestock, Livestock, Insurance and Reinsurance, mining operations, etc.
Accounting Principles And Nec Applicable To NGOs.
Accounting Principles Applicable to NGOs
All operations registered by NGOs must be based on GAAP Generally Accepted Accounting Principles, as a consequence of this practice, there will be truthful, objective and rigorous information that will guarantee the information contained in the Financial Statements and in the periodic reports that are presented to the Donor Agencies.
The GAAP that best suits the performance of the NGO's are, in my opinion, the following:
Accounting Entity: It is represented by the NGO as an entity that develops an activity aimed at implementing its Programs and Projects. Institutions must be treated from the accounting point of view as a separate and distinct entity from their directors, members or private partners. On the other hand, when recording accounting operations, it is not only necessary to consider the operations recorded, but also to observe the nature of the institution's services.
Accounting Period: It is the term of a period referred to the development of an NGO. It is important to consider this principle since most of the Agreements and Projects executed by NGOs do not start on the first day of the year, and the term is on a date other than December 31, as occurs with commercial and industrial companies. In this regard, the monthly and quarterly reports can be called "accounting sub-periods".
Continuity Of The Accounting Entity: The Financial Statements of an NGO as a donor entity, correspond to an entity in permanent existence, so its figures must represent historical values.
Significance: The Financial Statements presented by the NGO as a donor entity must be clear and easy to interpret for anyone who needs to work with these reports. It is necessary that they must be accompanied by explanatory notes which will expand the origin and meaning of the figures already made.
Uniformity: The use of accounting policies, rules and procedures must be uniform over time, so that they allow comparisons of the Financial Statements in a comprehensive manner or influence some items that need to be analyzed and studied, in this way it will be possible to determine how It has been the evolution of the development of the NGO or its Project.
Measurement In Monetary Terms: The movements in the Assets, Liabilities and Equity accounts must be easily recognized in the accounting records and be expressed in monetary terms. The monetary unit for accounting and financial information in the Republic of Ecuador is the United States dollar.
Double Entry: In every NGO each operation that is registered will affect at least two items in the accounting records, based on the double entry system and the principle that there is no debtor without a creditor and vice versa.
Acquisition Cost: Fixed assets must be carried at acquisition or construction cost, whose values are found in the historical accounts, unless said cost has no meaning. The cost of the land must usually be shown separately. Construction cost includes total direct costs and overhead costs such as engineering, supervision, administration, interest, and taxes. The items treated as fixed assets must have, for the Institution, at least a useful life of one year in perspective, although normally this useful life is considered longer. Practical measures or criteria should be established to be able to make uniform distinctions between fixed assets, operation and maintenance expenses.
Obsolescence: Assets that are no longer in service must be withdrawn through a charge to the reserve for depreciation or directly to expenses, so that the fixed assets represent the assets of the institutional service.
Financial Statements: The Financial Statements must conform to the applicable information standards included in the Generally Accepted Auditing Standards.
Ecuadorian Accounting Standards Applicable To NGOs.
By resolution of the Federation of National Accountants of Ecuador dated July 8, 1999, the Ecuadorian Accounting Standards NEC are issued and with Resolution No. 000140 the Internal Revenue Service, resolves to provide that the Ecuadorian Accounting Standards NEC numbers 1 to 15, are of mandatory application by the taxpayers required to keep accounting.
However, it is necessary to clarify that the NECs have been issued to regulate, standardize and harmonize universal accounting procedures, which are basically aimed at commercial, industrial and service companies. Despite this, the review of the 17 NECs shows that some are applicable in the tasks carried out by NGOs.
Nec 1.- Presentation of financial statements: This standard must be applied in the presentation of all General Purpose Financial Statements prepared and presented in accordance with the Ecuadorian Accounting Standards. General Purpose Financial Statements are those that have the objective of meeting the information needs of users and in this case of Donor Agencies whose information is processed to measure, meeting very specific information needs.
A complete set of Financial Statements includes the following components: a) Balance Sheet; b) Income Statement; c) Statement of presentation of equity changes; d) Statement of Cash Flows and; e) Accounting policies and explanatory notes.
The objective of this rule is to account in a significant way for the funds donated by the Cooperation Agencies and by their creditors, in such a way that when they are considered with the Liabilities and the Equity, an objective presentation of the financial situation of the Institution results. both at the beginning and at the end of the exercise. We must understand that the Financial Statements are not intended to show the current values of the NGO's assets or the values that could be obtained in the event of completion or liquidation of its programs or projects.
NEC 5.- Net Profit Or Loss For The Period: «The objective of this Standard is to indicate the classification, disclosure and accounting treatment of certain items in the Income Statement, so that all companies (NGOs) prepare and present it on a consistent basis »
This Standard intends that the Institutions account for sales, income, profits, costs of sales, expenses, gains and losses in such a way that they objectively present the results of operations for the year or years in question.
NEC 13.- Accounting for Depreciation: The scope of this Standard has to do with the obligation to account for depreciation of depreciable fixed assets since it can have a significant effect when determining and presenting the financial situation and results of operations. of an entity.
The amount of depreciation of a negligible asset must be assigned, on a systematic basis, to each of the accounting periods that reaches the useful life of the asset, which must be estimated after considering the following factors: expected physical wear and tear, obsolescence and legal or other limits to the use of an asset.
NEC 17.- Conversion of Financial Statements for the Purposes of Applying the Dollarization Scheme: According to Official Registry No. 57, published on April 13, 2000, and, according to resolution No. SB-SC-SRI-01, the Standard is approved Ecuatoriana de Contabilidad NEC No. 17. Proper adaptation to the dollarization scheme and the conversion of the Financial Statements from sucres to dollars requires a detailed review of the implementation strategy of the new system, the schedule and the necessary steps to follow, possible problems that may arise, and the coordination of the different stages that institutions have to face in order for this implementation to be successful.
"The application of the dollarization scheme includes adapting the institution's transactions to keep the accounting in US Dollars."
The transactions to be adapted refer to all the cycles or economic movements of the NGO's; It basically implies adapting the values in the systems of collections (accounts receivable), purchases (accounts payable), Inventories (fixed assets) and in Payroll or Payroll Roles. In most Institutions this part will be a job mainly in the accounting and Systems area.
As stated in the Supplement of the newspaper El Comercio entitled Dollarization, published on April 17, 2000; NEC 16 and 17 allow the conversion of accounting figures from sucres to dollars, for which three fundamental steps are required:
The first step that must be taken to dollarize the accounting of an Institution is known as comprehensive monetary restatement. This means that as of January 1, 2000, the non-monetary items (assets, liabilities and equity) of the balance sheet must be adjusted to the accumulated inflation levels as of the transition date, which is established on March 31, 2000. The method is the same as that used previously, however the effect of the exposure of the accounts to inflation will not be recorded in equity, but for this period it goes to the income statement, this accounting adjustment will be will register in a new account called Exposure Result.
The second step is the use of the gap correction index between inflation and the devaluation of the sucre. In the last two years, the second indicator has been higher than the first. Thus, while in 1998 inflation was 43%, the devaluation reached 54.13%. In 1999 this behavior was more distorted, the registered inflation was 60.7% and the annual devaluation of 196.6%. Then, the objective is to recognize in accounting the real change in the purchasing power of the sucre. The special gap correction index is equal to the cumulative variation of the difference between inflation rates and the devaluation of the period between December 31 - or the date of origin - and March 31, 2000. The date of origin is the day the transaction occurred; for example,If the Institution bought a house on May 5, 1997, the date of origin for the amortization account of this asset is precisely May 5 of that year.
The third step is the simplest and consists of dividing the non-monetary items for 25,000 sucres and in this way the different accounts are dollarized.
The process of converting the Financial Statements from sucres to dollars applying NEC 17, indicates that it is a requirement that the conversion process must be sufficiently documented in notes to the financial statements.
Internal Controls In NGOs.
As in any business activity, internal controls must be established clearly and precisely to avoid errors in their interpretation and application. In some NGOs, internal procedures and regulations allow for better control over institutional resources promoting the efficiency of operations and ensuring compliance with administrative policies.
The regulations most used to apply internal control in NGOs have to do with the movements of Cash and Banks, Petty Cash funds, Advances to Suppliers and Purchases and Acquisitions.
Internal control of cash and banks
Accounting aspects:
According to the administrative and accounting policy applied in various NGOs, the following internal control mechanisms must be applied in your institution to ensure efficient accounting and financial control:
- All operations carried out by Cash will be carried out taking into consideration the Institutional Chart of Accounts The Accounting Department when making modifications, opening or eliminating accounts of the General Accounts Pan, must immediately notify the Treasurer or the person responsible for Cash The Cashier will record daily all the documents that imply an entry or exit of money, which must be duly supported by documents that meet the fiscal and tax requirements as well as the authorizations of the officials of the specific Program or Project. authorizes all the documents in accordance with the supporting documentation.No document will be paid and registered by Caja,If it does not have the authorization of the Accounting Department, after checking and / or verifying the budget balance, except for those that originate from the liquidation of salaries and Social Benefits, which are the responsibility of the Administration or Personnel Department, if any. make the payment of any obligation derived from the provision of personal services, the Cashier is obliged to deduct the taxes caused by this payment and that must be consigned in the Accounting Department at the time of authorizing the payment, this means that the Department Accounting Department will order the Cashier the amount to be withheld for taxes.All the obligations to be paid by the Cashier must be duly authorized by the Executive Director and the Administrator,or a replacement person in the absence of any of them.All the checks issued must necessarily be signed by at least two people, one of them will be the Executive Director and the other may be the Administrator, Treasurer or a member of the Council Executive, assigned in the Members' Meeting. All documentation related to advance payments of salaries, personal loans and other payments to personnel that are directly related to salaries, must necessarily have the approval of the Executive Director.All documentation related to advance payments of salaries, personal loans and other payments to personnel that are directly related to salaries, must necessarily have the approval of the Executive Director.All documentation related to advance payments of salaries, personal loans and other payments to personnel that are directly related to salaries, must necessarily have the approval of the Executive Director.
Administrative aspects
A). Cash
receipts: All receipts of income must be pre-numbered in original and two copies, the original will be filed with the cash receipt receipt, the first copy will be filed in the document control of each affected Program or Project and the second copy will be delivered to the depositor at that time.
All checks received must be made out to the institutional name.
Post-dated checks will not be accepted.
All checks entered by cashier must be immediately crossed and endorsed by means of a legend that explains to which account it will be deposited, from which bank and the name of the account holder.
The Cashier will not be allowed to receive money or securities in custody, which have not been previously authorized by the Executive Director.
B). Cash outflows:
All funds entered into Cash for any reason must be deposited in bank accounts on the same day that the operation occurs.
The person in charge of making the bank deposits must verify the data on the deposit slip and sign it as a sign of having received the values mentioned therein.
The copies of the deposit slips with the seal of the Bank's receiver must be delivered the same day of the deposit to the Cashier, to support the accounting entries for the outflow of funds.
The expenses of all operations carried out by cash must be paid by check, to facilitate internal control. Payments by checks will be made in the following cases:
The invoices, Sales Notes and Proofs of settlement of purchases and provision of services presented by the Suppliers, which are presented in compliance with the provisions of the previous paragraphs. The documentation corresponding to the payment of suppliers must be delivered to the Accounting department the next day for its registration and corresponding file.
The replacement or reimbursement of purchases made by the staff, referring to materials, office supplies, cleaning, etc. that are duly authorized. The replacements or reimbursements of travel expenses in the Country or abroad and the expenses of representation that are duly authorized by the Executive Director.
Repossessions from the Petty Cash fund; The Cashier will attach the settlement and replenishment form of the Petty Cash fund supported by the expense documents.
Payments for electricity, telephone, water, tax withholdings, taxes, municipal taxes, etc. they will be canceled on the expiration dates.
C). Close the box:
- The Cashier must record all the Cash movements carried out during the day in the daily income part and in the daily payment part, in the latter format the Cash balance will be established. The Cash closing will have a specific time defined, all operations Cash-in and / or cash-out, after the established closing time, will be considered as after-hours operations and with a registration date the following day.
D). Check draft control:
- The Cashier will keep track of the acquisition of the checkbooks and will verify the correlative numbering and the amount of the checks.The checks will be drawn according to the correlative order of the same, in case of cancellation of a check, it must be recorded in the daily part Cash with the word CANCELED, which must include the original check that bears a CANCELED stamp and will be perforated for greater security.All check will be issued with an Accounting Proof of Payment or Expenditure, the same that will be mandatory data required in the format.
AND). General cash rules:
- All documents and vouchers that have been canceled by the Cashier must be immediately stamped with the word PAID or CANCELED. The Accounting Department may make surprise and periodic cash counts, when it deems it convenient. Any difference in the cash count that is detected, the Executive Director will be notified immediately to take appropriate measures in coordination with the Accounting Department, so that the respective adjustment entries are made.
F). Reconciliation of funds:
Every end of the month the reconciliation of funds in foreign currency must be carried out, this reconciliation will include all the availabilities that the Institution has, which will be compared with the balances that appear in the official books and accounting records, in this way differences will be determined due to an adjustment not made to the exchange rate. The reconciliation of balances is necessary to avoid differences at the end of each period of the Project or Program. The adjustments that are made will be signed by the Executive Director, to which will be attached all the working papers that led to the differences in the conciliation, so that the Auditors of the Donor Agencies have the material that gives consistency to the adjustments. made.
Internal Control of Petty Cash Funds
According to the publication entitled Accounting Administration and Internal Control, the cash funds managed through the Petty Cash must be regulated precisely in order to avoid the misuse of these resources, therefore, the following observations are made:
- The Petty Cash fund is one that is made up of a fixed amount of cash, the amounts of which are authorized in accordance with the requirements of the Institution, its use is intended exclusively for minor and unforeseen expenses, which have not been considered for the issuance of purchase orders for reduced value; However, these expenses are considered within the budgets approved by the donor entities. The Cashier or the General Secretary will be solely responsible for correctly managing the Petty Cash Fund, rationalizing the proper use of cash. The opening of the Petty Cash Fund, as well as the fund increases, will be made with the prior approval of the Executive Director.Each expenditure made with this fund must be supported by valid vouchers that meet the fiscal and tax requirements. Only cash disbursements will be attended in the case of acquisitions of smaller amounts whose maximum amount of each payment does not exceed the one previously set. These cash disbursements will be made to cover various concepts such as local mobilization, tolls, snacks, office supplies, cleaning and cleaning supplies, etc. The authorization for the acquisition of a good or service corresponds to the highest administrative authority. The person in charge, to make payments with Petty Cash funds, must verify that all documents have the signature of authorized officials.The documented surrender of the Petty Cash fund must be executed with the support of the payment vouchers that are attached. Supporting vouchers that only describe general concepts such as "for consumption" or "for various sales" or "various services" should not be accepted. The Cashier or General Secretary, when presenting his / her account of the expense in cash, will fill out the Cash Return Girl specially designed for this purpose, in detail.The format of the Worksheet for the Liquidation of the Petty Cash Fund must be made in original and copy, the original and the supporting documents of the expenses to be delivered to the Accounting Department for its accounting record and the copy for your file and correlative control.The replacement of the Petty Cash fund consists of making a check in a timely manner payable to the Cashier, who is solely responsible for managing the funds, for a value equal to the total amount spent, previously the Accounting Department must verify the sum and if the accompanying documents meet the necessary fiscal and tax requirements, and that each document has the stamp of canceled or paid.When approximately 70% of the Petty Cash fund has been used, its replacement must be requested for Avoid running out of money while the funds reimbursement process is being carried out. Written authorizations that modify the amounts assigned to Petty Cash due to increases or reductions must be filed and with a copy of the same they will be accounted for at the time this variation occurs,giving consistency and validity to the accounting entry made. The audits made by the Accounting Department must be made unexpectedly and periodically, any abnormality must be communicated in writing to the Chief Financial Officer to take administrative and accounting corrective measures.
Internal control for purchases and acquisitions:
According to the publication referred to in the previous paragraph, several suggestions are made for the adoption of control systems to carry out purchases and acquisitions with institutional funds, among the most important we have:
- The Executive Director has the power to authorize purchases of goods and services up to the amounts determined by the Board of Directors. The authorizations and executions of purchases must be based on the budget approved by the donor entities. Purchases that exceed the limits determined by the Board of Directors must be approved by this instance. All purchases will be the subject of a written request; This must be sent to the Executive Director for evaluation and approval.Any purchase request must have the following requirements: the purpose for which said equipment or material will be used, detailed specifications of the good required to locate the most appropriate suppliers, if applicable. deal with special materials or equipment, it will be convenient to present potential suppliers to facilitate the purchase process,It must be indicated if the purchase is detailed in the approved budget, the degree of urgency and priority of the purchase must be established, the deadline for the acquisition must be indicated and it will contain the signature of responsibility of the person requesting the purchase and of his Immediate boss The person or commission in charge of purchases, upon receiving this purchase request, must obtain at least three quotes or Proformas, after which a comparative study of the proposals that fit into the technical requirements requested by the user will be carried out. In order to avoid future problems regarding quality and specifications, it will then be submitted to the Executive Director for final approval of the purchase, after the most suitable proposal is approved,The Purchase Order will be made to the supplier, demanding that it respect the conditions stipulated in it. Upon receipt of the equipment purchased from the supplier, a thorough examination must be carried out to verify that the characteristics and technical stipulations are correct, after which the equipment will be received by signing a Certificate of Delivery and Reception, in the that any minor defect that does not disable the received material and that can be corrected by the supplier must be recorded, otherwise the deficient material or equipment should not be accepted.The supporting documents of the acquisitions of goods and services will be subject to the provisions of the Internal Revenue Service in relation to the issuance of valid receipts. Any occasional or permanent professional service,They must be carried out through "civil service provision contracts", which must be signed and authorized by the Executive Director, based on what is established in the Civil Code for the execution of these contractual instruments.
Accounting processes and records for NGOs
Accounting processes:
The main basis for any good organization is the establishment of procedures and simple methods to carry out; timely information and internal controls have always been the fundamental objectives of accounting.
The information required by the Executive Director and by the personnel responsible for the NGO for decision-making in the different projects revolves mainly around accounting, since they need all kinds of information (accounting, extra accounting, historical, prospective, continuous, periodic and accidental), and the procedures adopted to establish the flow of data, which must be through the appropriate information channels which are: documents, special reports and financial statements (balance sheets, income statements, etc.).
According to the Application Manual for NGOs, SASE, Peru (pages 20-23), for the information to be timely and truthful, the following rules must be observed:
- Distribute the executive elements and the auxiliary resources in a coordinated and efficient way so that the activities of the NGO, develop with the greatest possible benefit.All the economic transactions resulting from the management, which have been originated by the different areas, are income or Expenditure items, whose counterparts do not mean income or cash disbursements, must be summed up by the project coordinator. In the event of significant contributions of materials to the Project in execution, accounting must be informed, through summary documents, for their registration clearly and precisely in the special books.Avoid duplication in the functions and tasks assigned to that the reviews and records are not made repetitively.Make documents and books available to the people in charge of Audits and Reviews of the NGO, so that they can be verified quickly and without any difficulty.The accounting system will control the adequate accounting imputation of all operations carried out in the NGO and that These are included in the accounting period to which they correspond. Keep the accounting in statistical form so that the results can be known and establish the corresponding comparisons in each period.Keep accounting in statistical form so that the results can be known and establish the corresponding comparisons in each period.Keep accounting in statistical form so that the results can be known and establish the corresponding comparisons in each period.
The accounting records:
The functions of Accounting is:
A.- Analyze and classify
B.- Register
C.- Summarize the activities and as a consequence of these activities measure the effects produced in the projects of each NGO.
The recommended accounting records to detail the operations carried out by the NGOs on a daily basis are:
Cash Register: In this register all debits and credits applied to the Cash Account are chronologically detailed, it is convenient to have the Balances column that allows the daily obtaining of the available values in this account.
Bank Registry: This registry details all the income, expenses and money balances of the institutional bank accounts. Each program or project that is running will have its own independent Bank Account, the proper management of the Bank registry will provide daily information regarding available balances, avoiding overdrafts and banking problems.
Journal Record (Daily Book): This record allows daily annotation of all transactions or operations carried out by the institution through the Income, Exit and Journal Receipts.
Budgetary Control Registry: This registry consists of the detailed annotation of the values that have been "affected" to the different budgets managed in the Institution. For each budget item or sub-item, it is necessary to open a record that details the income received to finance each activity programmed in the budget, the expenditures applied to this item and the balance of existing funds in the item.
Any transaction that is carried out, whatever its nature, if it is to be registered in the accounting books, must be confirmed in writing and for this, it will use, as mentioned, the income, expenditure or journal vouchers, where they will be detailed the operations, the elements that have intervened in it and the rights and obligations derived from them; in this way, doubts, misinterpretations and reasons for many legal issues will be avoided.
In the same way, the supporting documents of the operations involved will be filed together with the income, exit or daily receipts, in order to give greater consistency to the operations.
The analysis and classification require an orderly procedure and accounting tries to arrange under predetermined classifications a set of events that take place daily in every NGO, in this way it is much easier to understand and interpret the records.
All this large volume of classified operations pays off when summarized, since it is not just one operation, but the sum of all the operations of a day, a week, a month or a year.
Some summaries of accounting records can be done with some frequency and others at long intervals. For example, it is convenient to know the summary of the operations carried out by Caja on a daily basis, while the summary that refers to fixed assets can be made quarterly or semi-annually as a way of controlling assets.
The activities of an NGO can be represented in the following way:
Daily Operations:
Record of the daily movement through the Income, Exit and Daily Receipts.
Control of Budgetary Items.
Control of the movement of Cash and Banks, settlement and determination of balances.
Monthly reports:
Consolidated Balance Sheet
Reports by budget items and sub-items by projects or programs.
Detail of payments made
Liquidation of funds available by projects or programs
Bank reconciliations
Annual reports:
Consolidated Balance Sheet
External Reports of the NGO
Internal Reports of the NGO
The
Vouchers It is suggested that for accounting purposes the NGOs prepare the Income, Expenditure and Daily, to record each of the economic movements made.
Proof Of Exit Or Payment: This voucher is used to record all money outflows by checks, from institutional bank accounts. It is important that in this document the corresponding accounting and the impact on the Program or Fund and the Budget Item or Items are made. Among the most important data that these vouchers must contain are: pre-printed numbering, place and date, check number, bank name, beneficiary name, ID number or RUC, home address, code of the affected program, budget code of the item or affected items, concept for which the payment is made; account codes, account names and debit and credit values; the signatures of accounted for, reviewed, approved and audited; and finally,the signature of the beneficiary of the payment.
Proof of Income: This voucher will be used to record all income of cash or checks to the Institutional bank accounts, as well as the proof of discharge, it must be prepared at the time of receiving the corresponding deposit slips. All cash receipts must be supported by the respective cash receipts. The Income Receipts must be prenumbered documents and must contain, among the most important data: place and date, name of the person who delivers the funds, the record of the money if it was received in cash or by check, name of the bank if it was in check, code of the affected program, the code of the affected budget item or items, concept by which the funds are entered, a column with the account codes,the name of the accounts, the debit and credit values; the signatures of accounted for, reviewed, approved and audited; the signatures of received in accordance and of delivery in accordance.
Journal Vouchers: This voucher is used to record transactions that do not correspond to a Payment or Income Proof; that is, it records the entries for accounting adjustments, to record bank credits and debits, bank transfers, and purchases and sales of foreign currency. Like the previous vouchers, the basic data that it must contain are: pre-printed number, date of the accounting entry, code of the affected program, code of the affected budget item or items, code of the accounting accounts, name of the accounts, debit values and of the Credit; and, the signatures of prepared, approved, accounted for and audited.
- Financial reports to donor agencies
The Accounting system has a final product in the financial information, that is, in the set of data duly ordered and that come to be representative data of the value that, at a given moment, have the different components of the patrimonial situation of the NGO.
Among the most important informative documents to determine the progress and the economic and financial situation of the NGO are the Balance Sheets (Situation and Results).
Through the Balance Sheets, it is checked whether all the journal entries have been transferred to the ledger and if all the annotations of the auxiliary books are in this ledger, since this is how it is known if the financial situation of the NGO is good or bad, and therefore, if it is able to develop projects and programs normally or with difficulties.
To prepare the monthly reports, it is necessary to first know what a budget is, which must be prepared and subjected to a careful and meticulous study, so that there are no complications as the objectives and goals set by the NGO are carried out.
"The budget is a plan that allows the institution's operations to be assessed in monetary terms and in advance, in order to be able to control and subsequently evaluate the efficiency in the management of resources", but it should not only be limited to the evaluation of the objectives, but also includes the measurement of what has been done versus the forecasts and the differences between the two, and as a consequence the triggering of corrective actions in order to establish the balance between what is real and what is budgeted, then, budgeting consists of put under control the activities of an NGO, said activity having been the object of a forecast.
The budget is prepared based on the work plan of the projects or programs that the institution is going to develop in a given period; In accordance with the institutional Chart of Accounts, all the expenses that will be incurred to execute the activities are provided for each budget item or sub-item.
If it is taken into consideration that the budget is the basic element for the good functioning of the NGOs and also for the correct application of accounting and financial administration, the criterion that the budget as a control instrument must be the result of a careful study.
Below is an example of a Budget, the same one that will make it easier to understand its structure and presentation.
Budget
Year: 2.001
Values In: US $ Dollars
PROJECT DESCRIPTION TOTAL PROJECT
AGRICULTURAL HEALTH
EXPENSES:
- FURNITURE AND EQUIPMENT 5,700 4,000 9,700
A.1 IT 1,200 1,800 3,000
A.2 Technician 2,000 1,200 3,200
A.3 Office 2,500 1,000 3,500 OPERATING EXPENSES 2,300 1,900 4,200
B.1 Materials 800 600 1,400
B.2 Training 1,000 1,000 2,000
B.3 Mobilization 500 300 800 ADMINISTRATION 2,900 1,150 4,050
C.1 Rent 1,500 1,000 2,500
C.2 Public services 0 150 150
C.3 Office
supplies 600 0 600 C.4 Maintenance 800 0 800 SALARIES 5,300 4,100 9,400
D.1 Coordinator 3,000 3,000 6,000
D. 2 Secretary 800 0 800
D.3 Accountant 700 0 700
D.4 Messenger 0 500 500
D.5 Social Benefits 800 600 1,400 UNEXPECTED 300 300 600
TOTAL: 16,500 11,450 27,950
INCOME:
- DONATIONS 10,500 9,000 19,500 SERVICES 0 1,700 1,700 SALES 5,000 450 5,450 FINANCIAL 800 200 1,000 OTHER INCOME 200 100 300
TOTAL: 16,500 11,450 27,950
Report on budget compliance by items and sub-items
Every project is subject to a donation agreement between the Donor Agency and the Grantee Entity (in this case the NGOs), and for this agreement to be approved, the Grantee Entity necessarily has to send a budget of the project or program to be executed, who shall use the funds donated pursuant to it, and any change or reprogramming will be made only with the prior approval of the Donor Agency.
The Grantee entity must render narrative and financial reports on the progress of the project or program, with the periodicity agreed in the respective donation agreement or cooperative agreement; These reports will be evaluated and analyzed internally.
The report detailing the expenses by budget items and sub-items is a reflection of the use of donated funds, which is known as the Budget Compliance Report.
Usually, Budget Items represent the main account titles, and budget sub-items represent the subaccount titles.
The existence of adequate reports will facilitate the accumulation, classification and accounting and financial interpretation of all types of information that is absolutely necessary for the efficient, effective and economic use of the resources available to an NGO.
The Executive Directorate is making daily decisions that affect the future of its NGOs, these decisions must be based on precise, exact, timely and pertinent information to the problem in question.
Below is an example of this report, the same one that details the use of budgeted resources by a supposed NGO.
Budget Compliance Report
(It is expressed in US $ dollars)
Project: Health and Sexuality
Period: From February 1, 2000 to April 30, 2000
ITEMS BUDGET EXPENDITURE BALANCE BY
BUDGETARY APPROVED EXECUTED EXECUTE
A. FURNITURE AND EQUIPMENT 5,700 2,420 3,280
A.1 IT 1,200 220 980
A.2 Technical 2,000 1,200 800
A.3 Office 2,500 1,000 1,500
- OPERATING EXPENSES 2,300 300 2,000
B.1 Materials 800 300 500
B.2 Training 1,000 0 1,000
B.3 Mobilization 500 0 500 ADMINISTRATION 2,900 330 2,570
C.1 Rent 1,500 200 1,300
C.2 Utilities 0 0 0
C.3 Tools Office 600 80 520
C.4 Maintenance 800 50 750 SALARIES 5,300 960 4,340
D.1 Coordinator 3,000 600 2,400
D.2 Secretary 800 200 600
D.3 Accountant 700 100 600
D.4 Messenger 0 0 0
D.5 Social Benefits 800 60 740 UNEXPECTED 300 0 300
TOTAL: 16,500 4,010 12,490
Report on the status of income and cash disbursements.
This report is very important to know the settlement of the funds available from the donation for a specific project, in which it details exactly the verification of the remaining funds existing at the cut-off date. This report must be submitted to the Donor Agency on a monthly and cumulative basis, showing all the Income received, the Expenditures made and the Balance available for execution.
An example of this report is presented below, in order to know its structure and composition.
Income and disbursement report for
the "Health and sexuality" project
(expressed in US $ dollars)
Period: from February 1/2000 to April 30/2000
INCOME: 8,853.22
02/05/00 First Transfer of Funds 5,825.12
02/26/00 Second Transfer of Funds 3,000.00
3003/00 Interest Credited to Account 28.10
EXPENSES: 4,010.00
A. FURNITURE AND EQUIPMENT 2,420.00
A.1 IT 220.00
A.2 Technical 1,200.00
A.3 Office 1,000.00
- OPERATING EXPENSES 300.00
B.1 Materials 300.00
B.2 Training 0.00
B.3 Mobilization 0.00 ADMINISTRATION 330.00
C.1 Rent 200.00
C.2 Public services 0.00
C.3 Office
supplies 80.00 C.4 Maintenance 50.00 SALARIES 960.00
D.1 Coordinator 600.00
D.2 Secretary 200.00
D.3 Accountant 100.00
D.4 Messenger 0
D.5 Social Benefits 60.00 UNFORESEEN 0.00
BALANCE: 4,843.22
VERIFIED REMAINING FUNDS:
In cash Petty Cash 20.00
In Acct. Cte. dollars # 1230166 Citibank 2,033.12
In Investment Banco Pichincha dollars 3,000.00
In Accounts Payable:
ESSS (109.45)
SRI (100.45)
REMAINING FUNDS AGREED: 4,843.22 Contribution
of Counterpart Valuation Reports
For the Donor Agencies, a very important component to be considered in the approval of the budgets for the execution of projects, are the counterpart contributions committed by the beneficiary NGOs to contribute. The term "counterpart" is used to designate the resources to be used by the project, different from those provided by the Donor Agency, either directly or through third parties.
Counterpart contributions are the combination of any of the following resources:
- Monetary resources allocated by the proposing NGO Co-financing monetary resources provided by local, national or international agencies Contributions in kind provided by the proposer, often in the form of land, labor, equipment, materials, infrastructure, etc. to be used in the project Contributions in kind from entities that are not directly involved in the project (local or national NGOs, government ministries and agencies, private industry, etc.) Any form of technical assistance (advice, management, etc.).) and / or technical cooperation applicable to the project.
The procedure for calculating the value of the counterparty contributions is as follows:
- Identification of the types of non-monetary contributions that it is proposed to use in the project, according to its components. Definition of the unit of measurement for each of the goods or benefits under consideration; that is, man hours of labor, square meters of space for offices or warehouses, hectares of land for agriculture, etc. Determination of the number of non-monetary units to be consumed in the project Assigning an appropriate value to each type of non-monetary unit contained in each class or type of contribution and the calculation of non-monetary inputs.
There are several methods to calculate the value of contributions: from simple observation to the use of generally accepted standards in the region, or market prices.
Therefore, it is advisable to use factors that have already been used previously in similar projects (consistency principle), and establish the reference values for later use. In other words, it is not only important to determine the value of the inputs, but also to document the sources and the reasons why the factors used for the calculation were selected.
However, the valuation of the counterparty contributions should reflect only financial values and not economic ones. In other words, the values must be considered from the point of view of the project, not that of society or the economy as a whole.
In the identification and valuation of the counterparty, there are two difficulties that must be overcome: first, the counterparties are generally non-monetary contributions or contributions in kind that are valued by applying reasonable factors within the conditions of the local economy and in terms of the real cost. from service.
The second difficulty is due to the fact that within generally accepted accounting principles, both in the United States and in Latin America, the concept of total capitalization does not fit. To register in the accounting of a project, the resources must come from transactions made in cash, or from credits.
Although in certain circumstances it is possible to account for certain intangible assets at market prices, it is generally not easy to do so with contributions received free of charge, such as consultancies and other donated services. However, in the case of small projects that contain contributions in kind, it is customary to include the value of free goods in the calculation of the total costs and benefits of the project.
In project evaluation processes, Donor Agencies generally consider, first of all, the financial point of view in which costs and benefits are valued at market prices. Second, the cost-benefit of the project is analyzed from a broader perspective to determine the impact of environmental, social, economic factors, etc.
In summary, for the financial analysis the value of the counterpart contributions must be clear and simple, the value of the project must reflect market prices and the amount of actual payments made.
Below is a model of the Compliance Report of the Engaged Counterparty:
Report on the compliance of the
committed Counterpart
(It is expressed in US $ dollars)
Project: health and sexuality
Period: From February 1, 2000 to April 30, 2000
ITEMS CONTRIBUTION CONTRIBUTIONS
BUDGETARY VARIATION COMMITTED DELIVERED ABSOLUTE
A. FURNITURE AND EQUIPMENT 5,800 2,000 3,800
A.1 Computer science 0 0 0
A.2 Technical 800 1,000 (200)
A.3 Office 5,000 1,000 4,000
- OPERATING EXPENSES 7,000 1,300 5,700
B.1 Materials 2,000 1,300 700
B.2 Training 2,000 0 2,000
B.3 Mobilization 3,000 0 3,000 ADMINISTRATION 700 120 580
C.1 Rent 600 100 500
C.2 Utilities 0 0 0
C.3 Tools Office 0 0 0
C.4 Maintenance 100 20 80 SALARIES 1,000 100 900
D.1 Coordinator 0 0 0
D.2 Secretary 0 0 0
D.3 Accountant 0 0 0
D.4 Messenger 0 0 0
D.5 Social Benefits 1,000 100 900
TOTAL: 14,500 3,520 10,980
The consolidated financial statements
Program accounting
«Program Accounting is a specialization of Accounting that allows the recording of the transactions of one or more Programs in a comprehensive manner, as if they were independent accounting entities (group of accounts assets, liabilities, equity, income and expenses). It is a group of items created for the registration and control of resources, the management of which is intended for specific purposes.
A Program is a sum of money and frequently other Assets that constitute an independent accounting entity, created and run for a particular purpose and whose transactions are subject to legal or administrative restrictions.
Most of the NGO's denominate Program or Fund to the financial resources destined to the development of Projects. Most of the time, financial resources are obtained through Cooperation Agencies, who in their donation agreements with NGOs request to carry out independent controls.
For there to be a correct application, certain basic principles must be observed, among which the existence of a single Chart of Accounts for the Institution stands out, based on this the issuance of the Consolidated Financial Statements and the registration of all the operations. Complementary accounting entries must be made for operations that involve transactions between Programs, these must be illustrated simultaneously in each affected Program.
In addition, the Programs must be identified by area of interest of the Institution or by compliance with Agreements with Donor Agencies. It is necessary to have common forms of registration for all the Programs and to foresee their classification in such a way as to allow the identification of each one.
Advantage
- It allows keeping records for each Program, considering them as independent accounting entities. Adequate control of cash is maintained according to the agreements signed with the sources of financing or institutional policies. It allows operations between the Programs, being able to make money transfers (donate or lend cash), the operation being recorded in the two Programs Reports are obtained by Donor quickly and reliably Facilitates the control and monitoring of projects Speeds up financial analysis at both project and institution level Allows carry out the consolidation of all the Programs and therefore know the general state of the Institution. Consolidate in a quick and timely manner the reports of one or more Programs, as necessary.It allows you to follow up on the data recorded in the forms and clearly identify the funds that are affected by the movements. Since most donor agencies require an Audit of the funds delivered under the Agreement, these examinations are carried out more quickly and security.
Disadvantages
- It generates greater effort in the accounting work, product of the delicate handling of the Institutional Chart of Accounts. More training is needed for the personnel who work in accounting. It increases the work, since the volume of operations increases in proportion to the number of funds, and due to the Need to balance the accounts individually by Programs. Greater attention should be given to the data recorded in the forms due to the need to clearly identify them in the funds affected by the accounting movement.
Generalities in the application of accounting by programs.
Program accounting complies with generally accepted accounting principles. In relation to accounting standards, these differ from traditional accounting in the following aspects:
- A comprehensive record of fund operations, which requires the formulation of a common system for all Programs (coding of the Chart of Accounts), even when each of these are considered independent accounting entities. The existence of two systems for the management of monetary resources (bank accounts), which we can identify as "Treasury Fund" and "Bank Account for each Program".
The use of the system as a Treasury Fund refers to the use of a single current bank account to debit or credit all the monetary resources that are used within the Institution. The advantage of using this system is that as it is a single checking account, a single bank book is made and the risk of making a voucher and registering it in a checking account to which it does not correspond is reduced. This system also has a disadvantage that is related to the weakness for the audit processes of a particular Program, by not presenting a consecutive order in the vouchers used for the same Program.
The bank account use system for each Program requires that the Institutional Chart of Accounts have an account that corresponds to cash and banks independently. This system has the advantages of being easy to know immediately the availability of monetary resources of each Program, regardless of its budget, it also provides simpler audit elements to corroborate in each Program and finally this system is the most accepted by the agencies donors to manage the funds.
The only disadvantage can be mentioned that it requires greater control in the preparation of the vouchers for each Program.
The Balance
Sheet This Balance, commonly known as the Balance Sheet, shows the financial situation of an institution, through the summary presentation of assets, liabilities and equity at a given date. The NGOs are obliged to issue this Balance to show their institutional situation and their management capacity, but as a result of this investigation it is found that very few NGOs do so, most of them issue their Reports to the Donor Agencies for complying with their agreements and not establish their consolidated Balance Sheet that would provide them with the necessary tools to evaluate their performance and to propose a study that demonstrates the cost-effectiveness of the actions deployed.
The accounting system by Programs allows the issuance of Balance Sheets and Results at the discretion of the Institution, both at the level of Projects (Programs) and at a general or consolidated level.
The consolidated balance sheets (Situation and Results) will be presented to the Ministry of Education and Culture until March 31 of the following year, in accordance with the General Provisions that must be contemplated in the Statutes of each NGO.
The Balance of Results
This Balance within the NGOs is known as the Statement of Income, Expenditures and Surplus Funds, which is a summary of the NGO's cash movement that in most of the times are not prepared based on accrued income and expenses incurred and which are limited to reporting the income and expenses recognized when paid and not when the relative obligation is incurred.
It should be remembered that NGOs are not-for-profit entities, but they are also non-profit.
The results that this Balance produces as surpluses, are exempt from paying income tax, according to Article 9 numeral 5 of the Internal Tax Regime Law, which establishes that: «for Corporations and Foundations created at under the Civil Code can benefit from this exemption, it is an essential requirement that these institutions are registered in the Single Registry of Taxpayers, keep Accounting and comply with the other formal duties contemplated in the Tax Code and this Law ".
The Internal Revenue Service may at any time verify that these institutions are exclusively non-profit, that they are dedicated to the fulfillment of their statutory objectives, and that their assets and income are used for their specific purposes in their entirety. In the event that it is established that these institutions do not comply with the indicated requirements, they must pay taxes with respect to the profits they obtain in business activities, of an economic nature, that they develop in competition with other companies obliged to pay income tax.
- Bibliography
- Zapata, Pedro E. General Accounting, Third Edition, 1999. Martinez, Vázquez Sergio. The Social Enterprise: An Approach to Strengthen Civil Organizations, Costa Rica, 1999 Berrocal , Aquilino .Accounting Administration and Internal Control, Application Manual for NGOs, SASE Ediciones, Lima Peru, July 1992. Miller, Martín A. Guide to GAAP, Second Edition, 1984.Deloitte & Touche. General News report, May 2000. Asomicro. Mobilization of Local Private Resources for Development and Legal Framework that Governs NGOs, 1998Alternativa, Fundación. Directory of Social Development Organizations, 2000 Edition, Quito, Abya Yala, UNDP, Legal Editions. Legal Manual for the Accountant, 1999 - 2000. Legal Editions and the National Federation of Accountants of Ecuador. Ecuadorian Accounting Standards (NEC), Legal Manual for Accountants, 2000Catacora C., Fernando Systems and Accounting Procedures, Mc Grow Hill, 1996, Venezuela.Social Foundation About the Nature and Evolution of Non-Governmental Organizations (NGO's) in Colombia; Santa fe de Bogotá, DC, Colombia, 1992 Pesantez A. , Michael. Valid Accounting Principles in Ecuador, Quito, 1994. Norsud Management. Management in NGOs, First Edition, 1993.Sase, Instituto Apoyo. New trends in the contribution to Social Development Companies and NGOs, Industrial Graphic Printing, Lima, 1999.
