The document discusses the accounting system and financial reporting of BRAC's Education Project (BEP). [1] BEP follows International Accounting Standards and GAAP in preparing its financial statements on an accrual basis. [2] It recognizes grants as income when conditions are met and matches expenses, following the principle of transparency. [3] The accounting system provides guidelines for assets, provisions, taxation, and financial instruments to maintain accurate and standardized reporting.

1. Accounting System and Financial Reporting of NGOs: Case
Study of a BRAC’s Project
Munima Siddika1 and Mohammad Sarwar Jahan Rekabder2
tawheedfj@yahoo.com
Abstract: In the absence of specific accounting and financial reporting standards and
diverse interpretation of certain terms under the laws of the land, it has become a very
difficult task to follow a standardized procedure in generation and presentation of
accounting and financial information of NGOs. The practices followed by NGOs in
Bangladesh are varied and diverse and there by preparation of financial statements are
incomparable and difficult for uses to understand. The paper tries to demonstrate
financial reporting and accounting system of a BRAC’s project and provide a guideline
for constituting suitable financial reporting and accounting systems for NGOs. The
article elaborates on basis of preparation of financial statements and reporting
procedure and then followed by accounting systems of regional office and head office of
that project. The final part of the article discuses issues relating to financial report and
financial transparency of the project.
Keywords: BRAC, NGO, Accounting System, Financial Statements, Financial Report.
1
Munima Siddika, Lecturer, Faculty of Business and Economics, Daffodil International University, 102
Sukrabad, Mirpur Road, Dhaka-1207, Bangladesh.
2
Mohammad Sarwar Jahan Rekabder, Lecturer, Faculty of Business and Social Studies, State University of
Bangladesh,
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2. INTRODUCTION
NGOs have become major players in the field of international and national development.
Since the mid-1970s, the NGO sector in both developed and developing countries has
experienced exponential growth. From 1990 to 2000 total development aid disbursed by
international NGOs increased ten-fold. In 1992 international NGOs channeled over $7.6
billion of aid to developing countries. (Retrieved from: http://wbln0018.worldbank.org)
on 25th February, 2006. Bangladesh has largely failed to assist the poor or reduce poverty
because of limited resources and planning, while NGOs have grown dramatically, but it
ostensibly fails to fill this gap. There are more and bigger NGOs here than in any other
country of equivalent size. The Association of Development Agencies in Bangladesh
(ADAB) had a total membership of 886 NGOs/PVDOs (Private Voluntary Development
Organizations) in December 1997, of which 231 were central and 655 chapter (local)
members (ADAB, 1998). The ADAB Directory lists 1007 NGOs, including 376 non-
member NGOs. The NGO Affairs Bureau of the Government of Bangladesh (GOB),
which has to approve all foreign grants to NGOs working in Bangladesh, released grants
worth about $250 million US dollars in FY 1996-97 to 1,132 NGOs, of which 997 are
local and 135 are foreign (NGO Affairs Bureau, 1998). NGOs have mainly functioned to
service the needs of the landless, usually assisted by foreign donor funding as a
counterpoint to the state's efforts (Lewis, 1993). Besides all these advancement the field
of NGO, Financial Reporting process and application of accounting is disgraceful. NGOs
in Bangladesh have increasingly become subject to question and criticism from the
government, political parties, intellectuals and the public in genus for misuse of funds,
gender discrimination, and nepotism. Absence of proper guidelines in preparing financial
statements and reports makes it more complex. The government of Bangladesh doesn’t
have any unique rules for preparing the financial reports. BRAC is one of the largest
NGOs in Bangladesh. It has more than hundreds projects. BRAC maintains books of
accounts and other record on a program or project basis. And its reporting process is
transparent and one of the most structured system in Bangladesh. This report we will
discuss about the financial reporting and Accounting system of BRAC Education
Program (BEP). BEP begun experimentally in 1985, it is an independent education
67

3. program organized and managed by BRAC with the approval of NGO Bureau of the
Government of Bangladesh. The analysis and discussion of reporting systems of BRAC
Education Program will give guidance and support to other NGOs about the generation of
accounting systems and reporting procedure, and to maintain a transparent system of
utilizing grants.
2. LITERATURE REVIEW
International Accounting Standards (IAS) doesn’t have specific guidelines for NGOs.
Regarding applicability of Accounting Standards to NGOs, the Accounting Standards
Board (ASB) has given an opinion in September 1995. “The Institute will issue
Accounting Standards for use in the presentation of the general purpose financial
statements issued to the public by such commercial, industrial or business enterprises as
may be specified by the Institute from time to time and subject to the attest function of its
members” It is clear from the above that the Accounting Standards are applicable to
NGOs whose some, or more, of the activities are commercial or business in nature.
However, it is very difficult to determine what the exact meaning of commercial is or
business activities with reference to NGOs. NGOs are not meant for earning profit out of
their activities. There are some NGO related laws and regulations in Bangladesh. While
registration is not mandatory for any NGOs, 2 types of legal frame work govern NGOs of
Bangladesh.
a. Laws for Incorporation Acts: There are four such Acts in Bangladesh: the Societies
Registration Act, 1861; the Trust ACT, 1882; Co-operative Societies Act, 1952
and the Companies Act of 1994.
b. Three laws and ordinances for regulation the relationship of such associations with
the Government: The Voluntary Social Welfare Agencies (Regulation and Control)
Ordinance, 1961; the Foreign Donation (Voluntary Activities) Regulation
Ordinance, 1982. This Forms the basis for registration with the NGO Affairs
Bureau (NGOAB); the Foreign Contribution (Regulation Ordinance 1982)
Government organization, The NGO affairs Bureau, has been carrying out NGOs
registration and processing of funds. NGO Bureau examines and evaluates reports
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4. submitted by NGOs and the checking of their income and expenditure accounts. The
inspection and audit of accounts kept by NGOs are under section 4 and 5 of the Foreign
Donation (Voluntary Activities) Regulation Ordinance 1978. As per Bangladesh
Chartered Accountants Order 1973, the NGO Affairs Bureau will prepare a list of
Bangladesh Chartered Accountants for annual audit of NGO accountants. The NGOs
prepare their annual program report within three months of ending the financial year and
send copies to NGOAB’s Economic Relation Divisions, Concern Ministries, Concerned
Deputy Commissioner and Bangladesh Bank, the following information should be
incorporated with it: (a) project should be shown separately in the annual report. The
main theme of project based report should expenses against actual target achieved in
detail on the proposal, expenses against the Thana & Districts in the project should also
be shown clearly (b) full list of permanent or liquid assets with vehicles of the
organization (c) Sources of organizations own income & expenditure (d) Details of
organization’s foreign travels by its officers & employees (f) Details of organization’s
revolving loan fund investment described by sector (f) Details of fund for projects
implemented with fund generated through agreement with Government’s different
ministries and directors and other sources (g) Details of persons employed by the
organization (with monthly salaries of Taka 5,000 and above or one time Taka 10,000 or
above, their names, designation, qualifications, age, total salaries, allowance and length
of services with the organization) should be attached.
In preservation of foreign aid accounts NGO Bureau have guidelines for NGOs according
to The Foreign Donation (Voluntary Activities) Regulation Ordinance, 1982: (a) all
foreign funds or foreign Currency remitted but received in Bangladeshi Taka (Currency)
should be received through only one bank account by each NGO. (b) Bangladesh Bank
on receipt of six monthly foreign currency accounts received in July and January each
year from NGOs will send it to NGO Affairs Bureau and Economic Relations Division.
(c) All expense vouchers will be preserved for 5 years at head office of the NGO. At the
field level, they will preserve copy of expense vouchers at their office for 5 years. (d)
NGO will preserve books of accounts: (a) In the case of foreign aid material Form, FD-5
(b) In the case of foreign funds through double entry system Cash Book.
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5. All documents maintained in (d) should be preserved on an annual basis-one from 1st July
to 31st December and the other 1st January to 30th June. The World Bank put emphasis on
the reporting practice of NGOs but the existing laws and regulations has minimal
emphasis on the reporting of the NGOs. It would be effective if there could be a simple
and single form of reporting for all NGOs and for all of their activities. But the activities
of the NGOs’ are too numerous and diverse and the legal interests of the government and
the public are too diverse to make this possible. BRAC has consistently maintained high
levels of transparency in all its operations; its extraordinary effort towards financial
transparency was recognized in 2005 when it won the CGAP (Consultative Group to
Group to Group to Assist the Poor). BRAC follows and prepare the financial reports on
the basis of GAAP and International Accounting Standards (IAS).
METHODOLOGY
As research approach case study is taken to make an empirical inquiry that investigates a
phenomenon within its real life context. Here the accounting system of BRAC Education
Program is described in a framework within an organizational environment. The events
are described in some detail with the main and subsidiary points highlighted. BRAC is a
gigantic organization it maintains and amasses lots of information. The accounting
system is identical in every outlet and for every project. The information was taken from
the Head office (BRAC Center) and from one Regional office (Dhaka Urban Samoli) by
interviewing the staff and management. The information used in this case study is both
primary (collected from field) and secondary (collected from annual report, progress
report, Code of conduct, statements, and written principles)
FINANCIAL ACCOUNTING SYSTEM OF BRAC EDUCATION SYSTEM:
BEP has some principles; these principles guide the Project behavior and help in the
development of policies and procedures for financial activities. The principles are:
stewardship or safekeeping of the project resources, accountability to explain how funds
70

6. are being used, transparency to ensure financial information is recorded accurately and
presented clearly; consistency is maintained over the years so that comparisons can be
made; non-deficit financing, it represents sufficient funding source, standard
documentation guides the system of maintaining financial records and documentation
according to internationally accepted accounting standards and principles. The
procedures and the implications of the accounting standards followed by BRAC
Education Program for reporting; are adopted depending on the expertise and resources
available; the volume and type of transactions; reporting requirements of managers; and
obligations to donors.
Basis of Preparation of Financial Statements of BEP
According to the IAS-1, non-profit, government and other public sector enterprises
seeking to apply this standard may need to amend the description used for certain line
items in the financial statements and for the financial statements themselves. BRAC
prepare the BEP’s financial statements under the historical cost convention on a going
concern basis. BEP also follows the accrual basis of accounting or a modified form there
of key income and expenditure items. The head office or the main center records all
treasury, investment and management functions. The accounting records and financial
statements are maintained and presented in accordance with the principles of fund
accounting. Funds are established and maintained the under fund accounting principles.
Donors’ Grants
BRAC preserve and accumulate foreign grants according to Foreign Donations
(Voluntary Activities) Regulation Ordinance, 1978. At present three practices are widely
followed by NGOs in recognition of grants: Grants recognized as income, grants
recognized as liabilities and grants recognized as income only to the extent of the
expenditure incurred (Anand Pagaria, 2006). BEP recognize grants as income when
conditions on which they depend have been met. If the grants are specified for the
funding of specific project, then income is recognized equal to expenditure incurred on
the project or program. For donors’ grants which involve funding fixed assets, income is
recognized as the amount equivalent to depreciation expenses charged on the fixed assets
71

7. concerned. All donors’ grants received are initially recorded at fair value as liabilities in
the “Grants Received in Advance Account”. For grants utilized to purchase fixed assets
are transferred to deferred income accounts. Donors’ grants received in-kind through the
provision of gift and/ or services, are also recorded in fair value. Income reorganization
of such grants follows that of cash based donor and any expenditure yet to be funded but
for which funding has been agreed at the end of any specific period is recognized as grant
receivable.
Revenue Recognition
According to ISA-18, revenue should be measured at fair value of consideration received
or receivable. NGOs don’t have revenues like the normal business organizations, they
recognize grants as revenues. BRAC maintains a bank account for foreign donors
(According to: Foreign Donations Regulation Ordinance, 1978 (30) under sub-rule (4) of
rule 4) and revenue is recognized as the interest accrued and as per IAS-18, interest
revenue is recognized on a time-proportion basis using the effective interest rate. All
other incomes are recognized when the right to receive such income has been reasonably
determined and all conditions precedent is satisfied.
Matching of Expenses
BEP’s program related expenses arise from goods and services being distributed to
beneficiaries in accordance with the program related objectives and activities. Head
office’s program related expenses are allocated to the program at approximately 7% of
their costs, most of the time these allocations are made with the consent of the donors.
Assets
IAS-1 standards requires certain disclosures on the on the financial statements.
Enterprises need to present current and non-current assets and liabilities on the face of the
balance sheet as separate classifications considering nature of operation of the
enterprises. When an enterprise chooses not to make this classification, assets and
liabilities should be presented broadly in order of their liquidation value. As BEP is a
project of BRAC, it presents the balance sheet according to its operational nature, and it
72

8. doesn’t classify its assets and liabilities as current and non-current assets. According to
IAS-16 and IAS-1, the NGO states its’ fixed assets at cost less accumulated depreciation,
depreciation is provided for on a straight line basis over the estimates useful life. Like the
profitable business organization, accounts receivables are stated at nominal value and
stated net provision for irrecoverable amounts.
Provisions for Liabilities
BEP’s Provisions for liabilities are recognized when there is a present obligation as a
result of a past event and it is probable that an overflow of resources embodying
economic benefit will be required to settle the obligation and a reliable estimate of the
amount can be made. Provisions are reviewed at each balance sheet date and adjusted to
reflect the current best estimate. If the effect of time value of money is material, the
amount of a provision is the present value of the expenditure expected to be required to
settle the obligations.
Taxation
Under the income Tax Ordinance 1984 (Amended),in addition to its commercial
activities, BEP is also subject to taxation on income derived from its other non
commercial activities unless they are tax exempt. The tax charge is in respect of taxable
income arising from Deferred taxation is provided for using the liability method, on all
temporary differences at the balance sheet date between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purpose. Deferred taxation
benefits are only recognized when their recognition is probable.
Impairment of Assets
IAS-36 addresses mainly accounting for impairment of goodwill, intangible assets and
property plant and equipment. The standard includes requirements for identifying an
impaired asset, its recoverable amount, recognizing or revising any resulting impairment
loss and disclosing information on impairment losses or reversal of impairment loss. At
each balance sheet date, BEP carried out a review, on the carrying amount of assets to
determine whether there is any indication of impairment. If any such indication exists,
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9. impairment is measures by comparing the carrying values of the assets with their
recoverable amounts.
Financial Instruments
According to IAS-32, BEP recognize and disclosure financial instruments in the balance
sheet when the NGO become a party to the contractual provisions of the instrument.
Receivables are carried at anticipated realizable values. Unlike the profitable organization
bad debts are written off when identified and an estimate is made, based on all
outstanding amounts of the balance sheet. BEP state the payables at cost which is the fair
value of the consideration to be paid in the future for goods and services received. Cash
and cash equivalents for the purpose of the statement of cash flows comprise cash and
bank balance, included in cash and bank balances, which are received through donors’
grants
ACCOUNTING SYSTEMS OF THE REGIONAL OFFICE
Traditionally, Accounting records fall into two main categories: Supporting Documents
and Books of Account. BEP keep files of the following original documents to support
every transaction taking place: Receipt or voucher for money received, receipt or voucher
for money paid out, invoices, certified and stamped as paid, paying-in vouchers for
money paid into the bank, bank statements, journal vouchers for adjustments and non-
cash transactions. BEP maintains several books of accounts as part of a full bookkeeping
system: General/Nominal Ledger, Journal or Day Book, Wages book, Assets Register
and Bank Reconciliations statements. The management information system of BEP
collects data from 565 area office then these are integrated under 139 regional offices and
then send it to head office for analysis. The accounting system of these regional offices is
well organized and supported by computer aided accounting software but we will discuss
the systems manually.
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10. Charts of Accounts
The first step taken by BRAC is to choose an accounting software package which is clear
and concise and easy to operate and maintain the NGO accounting. The second step of
BRAC was to clarify purpose of organization and reflect that in a clear and concise chart
of accounts. It is important that a chart of accounts reflect all the major functions and
project operation of the organization in a concise and systematic manner (retrieved from:
http://www.global.net.pg/atprojects/manage.htm, retrieved on February 23, 2007). BRAC
has more than hundreds projects, it prepares charts of accounts and code them for
computer aided soft ware. The coding of the account head represents the specific project,
regional office, and lastly the respective income, expenditure, liabilities or assets.
Cash Book
Regional office maintains separate cash books according to IAS-7 for different area
office under it. The area office maintains petty cash books for the recording of cash. The
area office conveys all its accounts (mainly expenditure) at the end of the month to the
regional office. The regional office then prepare separate cash book for every area office.
The opening balances of these cash book represent the cash on hand of the area office.
All expenditure and revenue recorded in the cash book are supported by vouchers.
Ledger Book
The format and procedure of preparing the ledger is same as the normal business
organization. Different transactions of account heads are accumulated here. After
recording the transaction of the last date of the month, balance is drowned. As it is a
computerized system, data is typically entered into the system only once. Once the entry
has been approved by the user, the software includes the information in all reports in
which the relevant account number appears
Receipt and Expenditure Statement
The receipts and expenditure statement is one kind of trial balance which is prepared by
regional office, which include the balances of the ledger. In computer aided accounting
75

11. system the receipt and expenditure statement is automatically prepared when ledger is
prepared.
Head Office Current Account Breakup Statement
The regional office maintains and transfers a ledger account to HO it includes
transactions like Motorcycle loan, Bonus Provisions, Gratuity Provisions, Provident
Fund, Insurance provisions for the employees. The regional office also transfers a
Motorcycle Loan Schedule as motorcycle is considered as assets.
ACCOUNTING SYSTEMS of THE HEAD OFFICE
The head office transactions are same like the regional office. Most of the transactions
are recorded at cash and the accounts are automatically posted to Receipts and
Expenditure statement under different heads. Head office maintains two sets of ledger
accounts other then the normal account heads. These are “Field Area Current Account
breakup” to record transaction with the regional office and Head Office Current Account
Break up to maintain correlation with the Regional Offices’ breakups. It provides a
provision to reconcile and find out the accounts in transit.
Fund Control
The income generating micro finance project transfer money to all projects and at the end
of every month and the money transferred is adjusted with Head Office Current Account
and it is done to avoid cash payment from the HO. The transactions are made by passing
journal entries “Fund Control Account” and it is shown on the Head Office Current
Account Break up Statement. In the field or regional office when micro finance project
transfer money to other project, then the journal is passed like this:
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12. Journal in Regional Office Micro Finance Project
Particulars Debit Tk. Credit Tk.
Head office current account Dr. XXXXXXX
Cash Cr. XXXXX
Journal in Regional Office other Project (where cash is transferred)
Particulars Debit Tk. Credit Tk.
Cash. Dr. XXXXXXXXX
Head office current account Cr. XXXXXXXX
Here cash is being transferred from microfinance project to other project. Both projects
submit Head Office Breakups to the Head Office. To adjust and prepare the combined
financial statements, all the details accounting statements are transferred to head office by
Head Office Breakup statement. The head office adjusts the journal like this:
Journal in Head Office
Particulars Debit Credit
Tk. Tk.
Fund Control Account Dr. XXXX
Regional Office Current Account (Micro Finance Project) Cr. XXXXX XXXX
Regional Office Current Account (other project where cash is
transferred )Dr.
XXXX
Fund Control Account Cr.
Head Office Account ultimately becomes:
Journal in Head Office
Particulars Debit Credit
Tk. Tk.
Regional Office Current Account (other project where cash is XXXX
transferred )Dr.
XXXX
Regional Office Current Account (Micro Finance Project) Cr.
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13. The detailed accounts accumulated under Receipt and Expenditure Statement and Head
Office Current Account Breakup Statement prepared in the Regional Offices are monthly
transferred to the Head Office. The accounting information collected by auto taker (a
computer supported device) is then automatically posted to ledger account maintained by
the head office. Then finally management prepares the financial statements, which
includes Balance Sheet, the Statement of Receipts and Payments, Statement of Changes
in Net Assets and Statement of Cash Flows.
7. REPORTING OF BEP
BRAC submit audit reports for all projects, along with FD-4 certified by the auditors, to
the NGO Affair Bureau and to Prime Minister’s Office.
7.1 Reporting for the BOAD
BEP’s reporting for the Board is done quarterly (or as required). This reporting includes a
Balance Sheet and a Statement of Receipts and Payments. This entail accounting for all
funds (i.e.: including USD funds). A uniform and consistent format is used for reporting
to the Board. This is also the report that is provided to auditors and used in the annual
report.
7.2 Reporting to the Management
BEP’s prepares management reports monthly, at the end of every quarter or as required.
There are different kinds of reports used by managers of BEP to take decisions: the
Budget Compared to Actual Performance Report, the narrative progress Report
(represents the achievements and impact of the project on the beneficiaries), the internal
financial report (prepared for 18 months to analysis cost, expenditure and their change),
quarterly cash flow projections report (to analysis exchange gains and fund deficits),
monitoring report (prepared by the monitoring team of 14members for every unit of the
NGO, which lists 20 issues need to be followed up).
7.3 Reporting for donors
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14. Donors have their own reporting requirements and specifications and an NGO should
attempt to meet these as much as possible. Conversely, if donors are amenable, a generic
format may be agreeable. Donor reports are submitted no more than one month after the
close of the accounting period being reported upon. A donor tracking schedule is set up to
monitor due dates and for work planning purposes.
8. FINDINGS AND RECOMMENDATIONS:
The accounting system of BRAC Education Program is well planned and contemporary
and it is highly eulogize by the donors. It assists the internal control, cash control, internal
auditing process, budget formulation and execution, facilities or property management,
financial operations and analysis, grants management and information resources
management. But there are some weaknesses in this financial Accounting system. Like:
1. The project grassroots links are not efficient enough so the generation of
information in that level is weak and some times not supported by documents
2. The filed based development expertise some times fails to develop innovative
measures to support modern financial Management
3. The project doesn’t give more emphasis on long-term commitment and
sustainability; which could assist the progress and accountability of the project.
4. The cost effectiveness of the project is not used uniformly in every outlets
5. For generation of accounting information and reporting the project authority don’t
have modern process oriented approach and they failed to increase institutional
capacity.
In order to make the project accounting process modern some recommendations could be
considered: The project could hire more expertise and modern management technique; it
could be more participative and transparent; the information could be modernized by use
of internal network and of process oriented approach and value based management
approach could make the accounting process efficient. BRAC Education Program is one
of the largest projects in Bangladesh which is financed by the foreign donors; the
79

15. accounting system of this project is well organized and transparent. The processes of
presenting the financial statements are unique and very systematic. BEP after all these
limitations; could give the other NGOs some guidelines for preparing and installing
accounting systems, making assumptions about accounting principles and lastly but not
the list to prepare and present financial statements and submit financial reports.
8. REFERENCES
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2006: 1716-1723.
ADAB. (1998). Directory of PVD0s1NGD0s in Bangladesh (Ready Reference). Dhaka: ADAB.
Ahmad Mokbul Morshed. 2005. “The State, Laws and Non-Governmental Organizations (NGOs) in
Bangladesh”. International Journal of Not-for-Profit Law. Vol. 3. Issue. 3
BBS. (1998). Statistical Pocketbook of Bangladesh. Dhaka: BBS
Bird, P., Morgan-Jones, P. (1981), Financial Reporting by Charities, Institute of Chartered Accountants
in England and Wales, London.
Charities Aid Foundation (CAF) (1989), Charity Trends 11th Edition, Charities Aid Foundation,
Tonbridge
Ebdon, R. (1995). quot;NGO Expansion and The Fight to Reach The Poor: Gender Implications of NGO
Scaling-up in Bangladeshquot;. IDS Bulletin. Vol. 26. No. 3. pp. 4955.
Hashemi, S. M. 1995. quot;NGO Accountability in Bangladesh: Beneficiaries, Donors and Statequot; in Edwards,
M. and Hulme, D. (eds.) Non-governmental Organizations: Performance and Accountability Beyond the
Magic Bullet. London: Earthscan Publications.
http://www.ngoregnet.org/contact_us.asp
http://www.aidsalliance.org/sw17688.asp#nav-tools#nav-tools
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16. http://www.oneworldtrust.org/?display=ngoinitiatives&text=1
http://www.gdrc.org/ngo/financial-mgmt.html
http://www.ngomanager.org/dcd/Topsites/
Lewis, D. J. 1993. quot;NGO-Government Interaction in Bangladeshquot; in Farrington, J. and Lewis, D. J.
(eds.) Non-Governmental Organizations’ and the State in Asia: Rethinking Roles in Sustainable
Agricultural Development. London: Routledge.
Montgomery, R. et al. (1996). quot;Credit for The Poor in Bangladesh: The BRAC Rural Development
Programme and the Government Thana Resource Development and Employment Programmequot; in
Hulme, D. and Mosley, P. (eds.) (1996). Finance Against Poverty. Vol. 2. London: Routledge.
NGO Affairs Bureau. 1998. Flow of Foreign Grant Fund Through NGO Affairs Bureau at a Glance.
Dhaka: NGO Affairs Bureau, PM's Office/GOB.
Report of the NAB for the Prime Minister. quot;There are several complaints of irregularity and corruption
against the NGOsquot;, Bhorer Kagoj. 29 July, 1992 (Daily Newspaper in Bangla).
Reza, H. (1992). quot;Main report, NGO: New Challenge for the State and Governmentquot;, Kagoj. 31 August,
1992 (Weekly Magazine in Bangla).
Salamon, L. M. and Anheier, H. K. (1997). quot;Toward a Common Definitionquot; in Salamon, L. M. and
Anheler, H. K. (eds.). Defining The Nonprofit Sector A Crossnational Analysis. Manchester: Manchester
University Press.
Task-Force Report. (1992). Report of the Task-Forces on Bangladesh Development Strategies for the
1990s: Managing the Development Process. Vol. I & 2, Dhaka: University Press Limited.
White, S. (1999). quot;NGOs, Civil Society, and the State in Bangladesh: The Politics of Representing The
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17. webmaster.financialservices@utoronto.ca
Wood, G. D. (1997). quot;States Without Citizens: The Problem of the Franchise Statequot; in Edwards, M. and
Hulme, D. (eds.). NGOs, States and Donors: Too Close for Comfort? London: Macmillan
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Appendix
BRAC Education Programme
Balance Sheet As at …..200X
Particulars Notes June 30. 200X June 30, 200X
Taka Taka
ASSETS
Property Plant and Equipment
Motor cycle loans
Inventories
Interest receivable
Advance deposits and prepayments
Cash in hand and at banks
TOTAL ASSETS
LIABILITIES AND NET ASSETS
Liabilities:
Deferred income
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18. Grants received in advance account
Other current liabilities
Net Assets:
Capital fund- temporarily restricted
TOTAL LIABILITIES AND NET
ASSETS
BRAC Education Programme
Statement of Cash Flows
For the financial year ended at …..200X
Particulars Notes June 30. 200X June 30,
200X
Taka
Taka
Cash flows from donors financing activities
Surplus of income over expenditure
Adjustments to reconcile changes in net assets to
net cash provided by operating activities:
Depreciation
Donor grants- Amortization of investment in
property, plant and equipment
Donor grants- amortization of motorcycle,
replacement of fund.
Adjustments for other accounts:
Decrease/ increase in inventories
Decrease/ increase in interest receivable
Decrease/ increase in other current Liabilities
Increase in deferred income
Net increase in motorcycle loans
Net cash used in operating activities
Cash flows from investing activities
Interest received on fixed deposits and bank
83

19. accounts
Less- purchase of property plant and equipment
Net cash used in investing activities
Cash flows from donors financing activities
Grants received during the year:
BRAC’s contribution
Less- Grants utilized during the year
Net increase in cash and cash equivalents
Cash and cash equivalents, begging of the year
cash and cash equivalents, end of the year.
BRAC Education Programme
Statement of Income and Expenditure
For the financial year ended at …..200X
Particulars Notes June 30. 200X June 30, 200X
Taka Taka
INCOME
Donor grants
Bank interest income
EXPENDITURE
Surplus of income over
expenditure for the year
BRAC Education Programme
Statement of changes in Net Assets
For the financial year ended at …..200X
Particulars Notes Capital fund
(temporarily
restricted)
84

20. Taka
At July 1, 200X
Net surplus for the year
At June 30, 200X
Net surplus for the year
At June 30, 2006
85