Accounting Primer for UNICEF Implementing Partners
Areas: Financial Management Capacity Building
Year of Completion : 2011
Commissioner of Disaster Management (Disaster Management II), Revenue Department, GoAP.
UNICEF funds various programmes/projects implemented by the Government Departments and NGOs at the grass root level. The implementing partners submit proposals to UNICEF, which assesses the proposals and disburses the required amounts. While disbursing the amounts, UNICEF specifies the break-up of the approved budget into specific heads/activities, namely, salaries, honorariums, contingencies, etc. The disbursement is done in the form of cheques issued or through bank transfer to the project director or to the district NGO network. The project director then disburses the amount to the anganwadis or other field level agencies for the implementation of the project. The NGO network disburses required amounts to the individual NGOs for implementation.
It was observed by auditors that the district level project implementers are not maintaining proper books of accounts nor were proper utilization certificates being submitted for the amounts being taken as advances. Audit also reported lack of any bank reconciliation and non-accounting of capital/inventory items. Most of the time, payments to the suppliers are made by cash and these transactions are also not being recorded or accounted.
In this background, UNICEF requested CGG to conduct capacity building programmes for its implementing partners on the basics of accounting and book keeping. The objective of the project was to create an awareness and understanding in the staff of the implementing partners on the importance and relevance of maintaining books of accounts. The project further aimed to explain the process of accounting and the various forms used by UNICEF in financial reporting