Management of Samadhan:
The organization wholeheartedly believes that the bottom-up planning system is the best way of participation of the community people for real & sustainable development. So that, in every tier of the planning process participation of representative of grassroots people are ensured and even though the grassroots level representatives are, exist in the organizational management body both General and Executive Body. Samadhan agreed to ensure Accountability, Responsibility and Transparency in all aspect of program and finance in every level of the Management both field and office.
The organization is rapidly growing and highly accepted to local government, local administration and local communities for its commitments, bottom-up & participatory planning process, accountability, responsibility and transparency towards communities, local authorities and donors etc. Such of gain of the organization was possible only the causes of staff devotion, competent decision making process of the management and their honesty and un-contradictory initiatives in everywhere. Now the trend of organizational scale-up both geographical and financial is still satisfactory. The field level offices are running well under direct leading of respective Manager, Regional Manager/Project Coordinator with the help of different sector head as representative of head office. The Senior Management Team (SMT) is playing vital roles to smooth operation of program(s) and as well as to ensure prior financial support to make the staff proactive in program implementation with prior accountability, responsibility and transparency in all aspect. The SMT is more powerful among the organization, making decision, formulate, review and update need based policies, procedures and strategies and approval from the Executive committee it is implementing and following to the point, which process is one of the exciting tires to smooth running of the organization.
To ensure transparent management of finance Samadhan has skilled manpower in finance section. The accounts department of Samadhan maintains and controls the entire finance and accounting system. It follows internationally recognized accounting system called “accrual basis accounting” system. Samadhan has its separate mother accounts titled “Samadhan”, which is operating by joint signature of two signatories; those are Treasurer and Executive Director. Other than that, Samadhan maintains separate bank account for each of project funded by donors and uses the sign of two signatories against each of bank account. It has regular practice of prepare monthly and quarterly financial report to the donors needs. Samadhan audit its finance and accounts by hiring government authorized and PKSF enlisted audit firm annually and has internal control through its system of internal audit by a regular internal auditor. Samadhan usually carry out its internal audit each and every project, interventions and activity generally with in six-month interval and incase of need it has been done any time by breaking the half yearly auditing practice considering it’s importance and justification, Samadhan has appointed qualified and experience auditing staff.
Budget Formulation and Variance Analysis:
The organizational yearly budget prepared at four level of the organization, those are (i) In primary stage the initial budget planning starts at the branch level and project office level, (ii) In secondary stage the secondary/regional/sector based staffs are review the draft budget prepared in primary steps, (iii) In this stage all sector heads at head office are checking, reviewing and making it pre-finalized the budget under the guided of Executive Director (iv) Finally the General Board is approving the pre-final budget with depends upon satisfactory discussion with justification of Executive Board, especially the Treasurer and Executive Director.
Incase of new project budget Samadhan always try to address the local issues i.e. demand driven by the community, against of which the organization collect need based data through focused group discussion, survey and community consultation, after that analyzed and use to make information, based on those primary needs and information designed new project budget and submit to donor, when the donor give primary green signal then it is discuss in the executive board meeting, whom give pre-approval and refer to the general board for post approval.
A yearly budget is split into monthly figures spelling out financial and program targets. All branch/project offices budgets are consolidated in the head office to formulate the organization’s aggregate budget. Financial monitoring is carried out monthly based on budget variance, MIS and FIS reports.
Income Tax Return Submission:
Samadhan is a regular income tax payee organization, submitting income tax return is mandatory under government rules. The organization has regularly submitted the returns accordingly. The government has exempted as non-profit organizations dealing with microfinance from paying income tax from the surplus earned. However, if having there is any income from other than microfinance, it will be subject to the relevant rules of taxation.