Cmmaao pmi-03 service retirement governance recommendation
NGO Compliance
1. NGO WORLD at NCRD
INTERNATIONAL DAY OF
NGOsNGOs
By M.Yousaf Khan FCMA
Thursday February 27’ 2014
By: M.Yousaf Khan FCMA,CEO MYC.President
ICMAP TMs Club.
2. M.Yousuf &
Co.Management
Consultants
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By: M.Yousaf Khan FCMA,CEO MYC.President
ICMAP TMs Club.
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3. ISSUES & CHALLENGES IN PAKISTANISSUES & CHALLENGES IN PAKISTAN
By: M.Yousaf Khan FCMA,CEO MYC.President
ICMAP TMs Club.
4. Regulatory Structure in Pakistan
The kinds of laws that govern
NGOs fall into two categories:
No1: Registration laws that defineNo1: Registration laws that define
internal governance and
No2: The Reporting relationship
between the state and the NGO,
and taxation laws.
By: M.Yousaf Khan FCMA,CEO MYC.President
ICMAP TMs Club.
5. Expected benefits of registration
1. The ability to enforce by-laws;
2. statutory requirements that force an NGO to become
organized;
3. legal status “at the official level and among donors;”
4. the ability to open a bank account;
5. the ability to sign contracts;
6. the ability to indemnify employees; and
7. the ability to qualify for financial assistance and tax
exemption.
By: M.Yousaf Khan FCMA,CEO MYC.President
ICMAP TMs Club.
9. ISSUES & CHALLENGES
Lack of formal regulatory & monitoring mechanism
Lack of central data base of NGOs
Lack of proactive approach by government.
Lack of coordination among various bodies governingLack of coordination among various bodies governing
NGOs in provinces as well as at Federal government level.
High cost of compliance specially at SECP &
Tough evaluation criteria by PCP
By: M.Yousaf Khan FCMA,CEO MYC.President
ICMAP TMs Club.
10. RECOMMENDATIONS FOR IMPROVEMENT
Development of central data base of NGOs
Single registration authority like Central Registration
Authority (CRA) may be created to regulate an online
registration process for applicants other than SECP.
CRA may constitute member from SWD,ICMAP,ICAP,PCP,FBR
Representatives from leading NGOs to standardize & stream
line registration process.line registration process.
Initially the process may provide registration option under
any of the existing statutes under the centralized process.
In future a new unified registration may be issued as per
international best practices prevailing in the world.
FBR,PCP ,CRA or any registration authority may access the
information from the central data base of the CRA and process
relevant their registration on step by step basis.
By: M.Yousaf Khan FCMA,CEO MYC.President
ICMAP TMs Club.
11. RECOMMENDATIONS FOR IMPROVEMENT
Training & Development facility may be provided by central
registration authority .
Initial training shall be made mandatory for new NGOs for
better governance & compliance in Accounting, Finance,
Taxation , HRM, Program, governance, Procurement.
However specialized trainings (optional) like ProposalHowever specialized trainings (optional) like Proposal
Writing, Financial Management & Reporting , Internal
Controls may be provided at nominal charges to interested
NGOs.
Online training programs may also be organized in
collaboration with ICMAP/Allama Iqbal Open University for
easy access & flexible timing of NGO people.
By: M.Yousaf Khan FCMA,CEO MYC.President
ICMAP TMs Club.
12. RECOMMENDATIONS FOR IMPROVEMENT
License of NGOs may be issued initially for a one year
period and its annual renewal may be linked with
presentation of Audited Accounts & Filing of Income Tax
Returns by NGOs.
In order to promote easy and cost effective compliance,
Central Registration Authority (CRA) may issue completeCentral Registration Authority (CRA) may issue complete
rules & regulations for monitoring and subsequent
compliance like annual audit & compliance including fee
fixation for audit.
CRA may conclude an MOU with ICMAP for compliance
services to NGOs at standardized terms & conditions for
general support to NGOs.
By: M.Yousaf Khan FCMA,CEO MYC.President
ICMAP TMs Club.
13. RECOMMENDATIONS FOR IMPROVEMENT
License of NGOs may be issued initially for a one year period
and its annual renewal may be linked with presentation of
Audited Accounts & Filing of Income Tax Returns by NGOs.
FBR may allow basic exemption u/s 2(36) without PCP
certification , however afterwards same may be required after 3
years or as the period CRA may decide.
In order to promote easy and cost effective compliance, Central
Registration Authority (CRA) may issue complete rules &
regulations for monitoring and subsequent compliance like
annual audit & compliance including fee fixation for audit.
CRA may conclude an MOU with ICMAP for compliance
services to NGOs at standardized terms & conditions for general
support to NGOs.
By: M.Yousaf Khan FCMA,CEO MYC.President
ICMAP TMs Club.
14. NOTES TO BE CONSIDERED
This document is open for comments from all stake
holders.
The purpose is to start a reform process for improvement
in governance , compliance and effective management of
NGOs
This document is a suggestive for stake holders and may
be revised ,upon relevant comments from stake holders.
Process relating to registration u/s 42 of the Companies
Ordinance has not been changed at this point of time as
ICMAP has already been actively involved in revised Code f
corporate governance with SECP as well as with EAD.
By: M.Yousaf Khan FCMA,CEO MYC.President
ICMAP TMs Club.
