|Financial And Auditing Systems|
SRSP income from grants / donations, bank profits and profit from investment in securities of the Federal Government is exempt from Income Tax under Clause 59 of Part I of Second Schedule of the Income Tax Ordinance, 2001. SRSP is approved by the Commissioner of Income Tax as “Charitable non-profit making institution” for the purpose of section 2(36C) of the Income Tax Ordinance, 2001.
SRSP is using the Accrual Based Accounting using double entry accounting system. Its accounts are maintained in accordance with approved accounting standards as applicable in Pakistan, approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board as notified under the provisions of the Companies Ordinance, 1984.
SRSP uses fund accounting principles for accounting. Fund accounting stresses accountability rather than profitability. The system classifies resources for accounting and reporting into funds that are controlled in accordance with specific activities, objectives and regulations. All accounting transactions are recorded against a specific fund (Grant). The regulations in respect to allowable expenditure and financial reporting are specified by the individual donor agency.
SRSP Financial Management systems are regularly being evaluated by various national and international donors like Pakistan Poverty Alleviation Fund, Government of Pakistan, GIZ, CIDA, DFID, ICMC, AUSAID, CAFOD and USAID etc. We are currently working with almost all the above mentioned donors and are successfully in compliance with their funding terms and conditions.
SRSP activities are controlled and monitored based on the approved operating and grant budgets that are funding the operations. Operating budgets is submitted and approved on an annual basis by the Board of Directors of SRSP. Grant Budgets are negotiated with the donors and approved as per the contract or final agreement. Grant budgets form basis for preparation of the annual operating budget.
The accounts of SRSP are audited annually by KPMG, Taseer Hadi and Co Chartered Accountants, Islamabad, Pakistan.
Further, the donors who prefer to have their specific grant audited by an independent auditor at the conclusion of the grant period or on annual basis, if the grant period is more than one year.
SRSP Finance Section is headed by a qualified Programme Manager Finance supported at Head Office by Manager Finance, two Senior Programme Officers Finance and two Accounts Officer. There are twenty accounting units across SRSP Programme area covering twenty Districts Offices and two tribal agencies. Each unit has its own finance team of two personnel each.
SRSP has an Internal Audit Department, Headed by Programme Manager Internal Audit from Finance background and supported by four members. The main functions of Internal Audit Department is to ensure compliance with all the policies, procedures and internal Controls placed by the management to provide assurance that donor funds are protected from theft, loss or misuse and that reliable information is produced in a timely manner.
SRSP has developed Standard Operating Procedures (SoPs) for Finance, Human Resource Management (HRM), Microfinance, Community Physical Infrastructure (CPIs), Procurement and Asset Management.
The major strength of the organization is its accounting system which enables remote project offices across the province to enter data in the centralized accounting system electronically. This system enables the organization to obtain location-wise, donor-wise, sector-wise, gender-wise and consolidated financial information, whenever required.
Further, SRSP has a Comprehensive Credit Management Information System (CMIS), MIS for Human Resources, Inventory Management, Training and Community Physical Infrastructure (CPIs).