Comprehensive Care for Street Children: Handbook for Planners and Practitioners Managing Finances by Rainbow Homes Program

Open Hearts, Open Gatesâ&#x20AC;Ś

Printed by: Print World # 9810185402

Comprehensive Care for Street Children: Handbook for Planners and Practitioners Managing Finances

Indradhanush Academy Centre for Equity Studies 105/6A, 1st Floor, Adhchini, Aurobindo Marg, New Delhi-110017 Ph.: 011-26514688, 41078058 Email: indradhanush.ces@gmail.com Website: centreforequitystudies.com

Centre for Equity Studies

Indradhanush Academy Centre For Equity Studies

Indradhanush Academy

la?k"kZ dh jkgksa esa la?k"kZ dh jkgksa esa] dksbZ rks gekjk gks---gj jkr dh ckgksa esa] lqcg dk ut+kjk gks

In this life full of strife In this life, full of strife, We long for a friend and guide... In the darkness of night We long for a dawn, warm and bright

la?k"kZ dh jkgksa esa] dksbZ rks gekjk gks---geus rks t+ekus dh] jaft'k dks gh ih Mkyk pqHkrs gq, gj iy dks] gl [ksy ds th Mkyk

In this life full of strife, We long for a friend and guide… We swallow hatred and the vile Stinging moments, with a smile

D;ksa iwN jgs gks rqe] D;k geus xok;k gS thou dh rks cl NksM+ks] gj [okc ijk;k gS

Why do you ask, what have we lost, Not just life, even our dreams went past...

la?k"kZ dh jkgksa esa] dksbZ rks gekjk gks----

In this life, full of strife We long for a friend and guide…

oks iy Hkh Fkk viuk] ;s iy Hkh gekjk gS la?k"kZ dh jkgksa esa] vc dksbZ gekjk gS---oks jkrsa feV gh xbZ] ,d lqcg vkbZ u;h py jgs veu dh jkgksa ij] gj [okc gekjk gS ,d vk'kk veu dh] gS vc bl fny esa dksbZ jkg u vc jksds] dqN dj ds fn[kkuk gS c<+k,axs ge dne dks] feVk;saxs gj xae dks pysaxs mu jkgksa ij] tgk¡ ls fn[krk fdukjk gS la?k"kZ dh jkgksa esa] gj dksbZ gekjk gS----

In this life, full of strife, We have someone as a guide and friend… That past was ours, this present is ours In this life, full of strife, Now we have someone as a guide and friend… Those nights have passed, there dawns a new sun Walking on the paths of peace, every dream is ours There is a ray of hope in this heart There is no stopping us; we have to achieve something now We will take a step forward, remove all the pain We will walk on paths in life, from where the shore is near In this life, full of strife, We have everyone as a guide and friend…

Written by one of the children from Sneh Ghars in Delhi

Open Hearts, Open Gates…”

“

Comprehensive Care for Street Children: Handbook for Planners and Practitioners Managing Finances

Indradhanush Academy Centre for Equity Studies

We would like to thank… In researching and writing these handbooks, we have drawn on some of the best examples in the work by pioneers like Sister Cyril in Kolkata, MV Foundation led by Shantha Sinha and the BOSCO Brothers. We have added learning based on the efforts of Centre for Equity Studies and Aman Biradari, of work with state governments of Andhra Pradesh and Delhi; to establish and manage Sneh Ghars in Hyderabad and Delhi. Without the support of the senior officials in the Department of School Education, Ministry of Human Resource Development (MHRD) especially Secretary, Anshu Vaish, Additional Secretary Anita Kaul, Directors Neelam Rao and Maninder Kaur, and the state governments of Andhra Pradesh and Delhi, this effort would not have been possible. This effort was supported by grants from ICCO & Kerk in Actie; Save the Children and Axis Bank for which we are very grateful, and look forward to further support for this work from diverse sources, including Partnership Foundation and Sir Dorabji Tata Trust. We are grateful to the following experts who authored various portions of the detailed manuals; for each, this was a labour of love. The writers are Ambika Kapoor, Harsh Mander, Preeti Mathew, Satya Pillai, Shashi Mendiratta, Sunil Snehi and Sveta Dave Chakravarty. We learnt a great deal from the children themselves, as well as the team members or Sneh Sathis who undertook the pilot to establish Sneh Ghars, the Loreto Rainbow Home, Kolkata, the Dilse team, Delhi and the Aman Vedika team, Hyderabad, for providing rich insights on residential care setups in functional schools. We acknowledge Satya’s stewardship and for holding the reins of all the teams to ensure timely completion of this complex task. She was ably advised by Sister Cyril, Sveta Dave, K Anuradha, Ferdinand Van Koolwijk, Fr. George Kollashany, and Shashi Mendiratta; and assisted by her team members Shubhada Hiwale, Preeti Mathew and Ambika Kapoor. We would also like to thank Aarti Chandra for patiently going through the transcripts and editing them. Finally, sincere and heartfelt thanks to Harsh Mander, for his inspiring leadership of the entire process of putting our learning’s together and ensuring that the child remained in focus at all times.

Contents Chapter 1: Accounting System.......................................................................................................... 7 Chapter 2: Financial Management and Fund Accounting.........................................................14 Chapter 3: Budgeting and Budgetary Control............................................................................18 Chapter 4: Purchasing/Procurement System and Inventory Management............................20 Chapter 5: Fixed Assets Management System............................................................................25 Chapter 6: Statutory and Legal Requirements............................................................................27 Chapter 7: Financial Review and Audit System..........................................................................34

Introduction The basic purpose of this manual is to provide a useful and effective accounting system to Sneh Ghars and organisations involved in developmental activities. This manual therefore covers finance and accounts related aspects. Statutory and Legal provisions related to finance have been briefly discussed in this manual. This manual also describes the practices that a home/organisation should adopt to ensure the efficient use of funds for its activities. This manual is not a final answer to all finance related matters but a guide to follow proper financial and accounting policies in the best interest of the project/organisation. This manual is the result of meaningful contributions and inputs from the homes and partner organisations involved in these activities. We acknowledge all of their support and inputs.

Chapter

Accounting System

Definition An accounting system is a system of regular and systemic recording of the financial transactions of an organisation in books of accounts and summarising them in the preparation of the final accounts i.e. the Balance Sheet, Income and Expenditure Account, etc. The accounts should be maintained using the double entry system by regularly following one method of accounting that is either the cash method or the mercantile method. Under the cash method all financial transactions are recorded as and when cash is received or paid whereas under mercantile or accrual method, transactions are recorded as and when they are effected irrespective of the fact as to whether the amount has been paid or received. The mercantile method is more appropriate and scientific and is also recommended by the Institute of Chartered Accountants of India. It may be noted that an organisation should consistently follow the method that has been selected by it. Purpose The main objectives of an accounting system are: •• •• ••

To record all financial transactions accurately and completely. To prepare timely and accurate reports for donors and management. To prepare financials and other reports in compliance with statutory laws.

Accounting Principles Transactions are recorded using the following three accounting principles: •• •• ••

Debit the receiver and credit the giver. Debit what comes in and credit what goes out. Debit all expenses and losses and credit all incomes or gains.

These three principles clearly state that every financial transaction has two aspects i.e. ‘Debit’ and ‘Credit’ or in simple words ‘In’ and ‘Out’. Accounting Period Starts from 1st April of one year to 31st March of the following year.

Types of Accounts The different types of accounts are: •• •• ••

Real Account – This account relates to the accounts of real items, which are tangible e.g. fixed assets, goods, cash, bank, etc. Personal Account – This account relates to the accounts of persons e.g. debtors, creditors, etc. Nominal Account – This account relates to the transactions pertaining to expenses or losses and profits or gains.

Accounting Heads Expenses should always be recorded under proper heads of accounts as per their nature and relevance. Accounts should be created in a manner to clearly reflect the budget line items of the approved programme budget. A clear distinction should be made between capital and revenue expenses. Capital expenses are those expenses which have enduring benefits over a long period and are shown in the Balance Sheet. Revenue expenses are those expenses whose benefits are exhausted immediately or within a short period i.e. one year and are reflected in the Income and Expenditure Account. Sneh Ghars are not encouraged to incur capital expenses directly and are expected to incur revenue expenses only related to the running of the Sneh Ghar. All capital items are bought and recorded by the implementing organisation. Accounting Books/Records It is mandatory for an NGO to maintain separate books of accounts for Indian funds and FCRA funds. It is therefore suggested that separate persons are engaged for maintaining these separate set of books of accounts. A list of accounts records, which are normally kept by an organisation is as follows: •• •• •• •• •• •• •• ••

Cash/Bank Book Journal Ledger Petty Cash Book Vouchers Receipt Book Salary Register Fixed Asset Register

Whereas a Sneh Ghar is expected to keep the following accounts records: •• •• •• •• •• •• ••

Petty Cash Book Vouchers Salary Register for Sneh Sathis Fixed Asset Register Child Attendance Register Stock Register Register for Receipt of Donation (in kind)

Cash/Bank Book This book keeps a record of all transactions involving cash or bank. This is also called the Book of Primary Entry. A bank book is maintained for recording bank related transactions whereas a cash book is kept for recording transactions involving cash. Journal A journal is also known as the Book of Original Entries. This book keeps a record of all noncash transactions such as transfer entries, non-cash contributions, debit notes from funding agencies, rectification/correction entries, adjustment entries, etc. Ledger All cash and non-cash entries are transferred to separate individual accounts in a Ledger. This process of transfer is also called posting. Entries containing both cash and bank are called Contra Entries and are not posted to the ledger account as they are entered in the cash book and bank book, thereby adhering to the double entry method. In a ledger, the financial information is classified by its nature and relevance. All ledger accounts are periodically balanced and a summary of all these closing balances is called the trial balance which is used to prepare financial statements. Petty Cash Book As the name suggests, this book is maintained to record small transactions and consolidated amounts from the petty cash book are recorded in the main cash book. This book helps to reduce the volume of transactions to be recorded in the cash book. Sneh Ghars should maintain a petty cash book for recording all payments made for various home running expenses under different heads of accounts e.g. vegetable, fruit, medicines, conveyance, hair cut expenses, etc. and submit it with all payment vouchers to the implementing organisation before making a fresh requisition of monthly advance. A Petty Cash Book makes it possible to open as many heads as the type/nature of expenses a Sneh 9

Ghar requires. A finance person verifies the payment vouchers with the petty cash book and posts a consolidated entry in the main books of account. It should also be ensured that the balance as per the petty cash book agrees with the main book balance. Vouchers A voucher is a documentary evidence for recording a transaction. Vouchers are prepared for all cash and non cash transactions. Vouchers bearing cash or bank transactions are classified as Receipt Vouchers and Payment Vouchers respectively, whereas the voucher recording non cash transactions are called Journal Vouchers. Vouchers play a very important role in preparing the financial records of an organisation and therefore they should be complete in all respects. A voucher should contain the following basic information: Date

of Transaction Voucher Number Nature of Transaction (with complete narration) Amount (in words and figures) Account Head Project Name Supporting Documents Every voucher should be signed by the person who has prepared it and by an authorised person. Overwriting and use of white correction fluid should be strictly prohibited. Receiver’s signatures are required in the case of payment vouchers. A Revenue stamp should be affixed on the voucher for all payments, cash or bank, exceeding Rs.5000/-. The stamp should always be cancelled either by drawing a cross or by signing across. No revenue stamp is required on imprest transactions with Sneh Sathis. It is however required when a loan or salary is given. The Sneh Ghar has to ensure that all its payments are duly authorised and supported by proper bills/invoices. In the case of purchase of vegetables, milk or any payment where a pucca or proper bill is not available, a voucher should be prepared by the Sneh Sathi, clearly stating the nature of transaction, quantity, price, etc. Receipt Book All incomes and receipts should be duly acknowledged by an authorised person through a receipt voucher. Organisations should use printed receipt books for accepting donations. A Receipt book should contain receipts in duplicate – original for the donor and a duplicate copy for office use. All receipt books should be kept under the control of a responsible authorised person and need to be physically verified at regular intervals to avoid their misuse. Receipts should contain the following information: 10

Serial

Number PAN of the Organisation Complete Name and Address of the Donor Details of Payment Purpose of Donation Complete details of 80G exemption order and validity period thereof When making a donation, the donor should be requested to fill up complete details viz. name, address, contact number, donated amount or item, purpose, etc. in the donation register. Under no circumstances should a donation be accepted without acknowledgement. Cash donations should always be discouraged. However, it maybe noted that receipt under Section 80G are to be given only for monitory donations (either cash or cheque) and not for donations received in kind. All income is recorded at the implementing organisation and therefore all money generated or received at a Sneh Ghar should be sent across to the office immediately. Salary Register This register is maintained for recording the details of the salary paid to the Sneh Sathis. The register is prepared on a monthly basis, showing the name of the Sneh Sathis, their designation, basic pay, Dearness Allowance, Employee Provident Fund (employer share), allowances if any, total dues, deduction from salary i.e. Employee Provident Fund (employee share), advances, other specific deductions, if any, total deductions, net amount payable and signature of the concerned Sneh Sathi. Sneh Ghars should maintain a salary register for the Sneh Sathis and prepare a salary statement at the end of every month and send it to the implementing organisation for salary payment. The main office will check the salary statement and divide it into three parts: (a) (b) (c)

payment by account payee cheques, payment by direct bank transfer and cash payment in exceptional cases only.

The statement of salary along with the salary cheques and cash will be sent to the Sneh Ghar for its disbursal. The Sneh Ghar coordinator will ensure that a revenue stamp is affixed on the salary register for each employee and that each Sneh Sathi signs in the space against his/her name as s/he collects the salary. Fixed Assets Register Sneh Ghars will maintain a Fixed Assets Register and ensure that all fixed assets purchased, gifted or transferred from different locations are recorded in the register before putting 11

them into use. Fixed assets can broadly be classified under the following categories: Furniture

and Fixtures

Vehicles Office

Equipment Computer Land and Buildings A Fixed Assets Register contains complete details of all the assets owned by the organisation and which are being used in the Sneh Ghar. The register normally shows the following information: Name Description Cost Supplier’s

Name Invoice Number Date of Purchase Direct expenses incurred for bringing that asset to use Location Condition Name of Donor Asset Identification Number Date of Disposal of Asset Depreciation Assets received as gifts should also be recorded in this register. Different pages are allotted for each category of assets and a few pages should be left blank after each category to record future entries. All bought assets need to be accompanied by a supplier’s challan whereas assets transferred are accompanied by a transfer note issued by the transferor. In the case of gifted assets, the complete details of the donor are required. The Sneh Sathis have to ensure that the challan or transfer note contains complete details of the respective assets and are entered in the fixed assets register under the correct head. Financial Statements Financial statements are a summarised form of the financial position of an organisation and are prepared at regular intervals from the books of accounts. These statements are used by various stakeholders viz. management, donors, government agencies, etc.

A number of financial statements are required at regular intervals by the management to analyse the financial health and viability of a project or an organisation. These can be generated by using a number of accounting software available in the market. These accounting softwares come with a lot of features that can also be used to create cost centres, prepare a fund flow statement or a ratio analysis report, etc. All these reports are automatically updated with each entry made in the accounts. Each Sneh Ghar is treated as an independent project unit and recorded as a separate cost centre in the main book of accounts. This practice helps the management to make a financial analysis of each Sneh Ghar and ensures the optimal utilisation of available resources. The following financial statements are required at regular intervals by the management: •• Trial Balance is the summary of all closing balances of ledger accounts and the cash and bank book. As the books of accounts are maintained under the double entry system, therefore both sides i.e. debit and credit of the trial balance are to be equal. •• Receipts and Payments Account is an abstract of all receipts and payments. It includes both capital and revenue items. This statement reflects the movement of funds and therefore considers only the actual inflow and outflow of a fund. •• Income and Expenditure Account is a statement of income and expenditure pertaining to a specific period. This statement reflects only the revenue items including provisions and outstanding and does not consider capital items. The difference between income and expenditure is called surplus i.e. excess of income over expenditure or deficit i.e. excess of expenditure over income. •• Balance Sheet is a statement of all assets and liabilities on a particular date. It shows the financial status of an organisation.

Chapter

Fund Management and Fund Accounting

Fund Management Definition Fund Management plays a very crucial role for an implementing organisation because of its dependence on donations and grants. Donors trust organisations that are capable of using funds in an optimal manner for the activity or project intended. Therefore, it is necessary for an implementing organisation to adopt well defined procedures and checks for the judicious and maximum use of its financial resources. Primary Finance Functions The primary function of the finance team is to ensure that adequate internal controls and checks are in place for an efficient and effective fund management. These functions can be classified into the following sections: Bank

and Cash Management Receipts of Funds Disbursement of Funds (a) Bank and Cash Management Bank Account: Separate bank accounts should be opened and maintained for receiving foreign contributions as defined in the ‘Foreign Contribution Regulation Act (FCRA)’ and for receiving Indian funds. The implementing organisation is to ensure that at no point, any FCRA fund is transferred to a local bank account and vice versa. When an implementing organisation establishes more than one Sneh Ghar at separate locations in different regions/states, separate ‘Project Bank Accounts’ should be opened. These project bank accounts should be linked with the main bank account of the implementing organisation. The overall responsibility of distribution of funds among various project bank accounts should rest with the main office. Sufficient funds should be transferred from the main bank account to the project bank account as per the requisition received from the Project/Regional Office. A large amount of money should not be kept in local project bank accounts. The implementing organisation should closely monitor the utilisation of funds by the Sneh Ghars and should ensure the timely preparation of a consolidated report based on the fund utilisation statement received from all the Sneh Ghars/project offices. 14

Every Sneh Ghar should also have a separate bank account which will be used exclusively for receiving advance payments from the implementing organisation to meet home running expenses. Payment of all fixed expenses viz. salaries of Sneh Sathis, utility bills, monthly ration, toiletries, stationery, etc. and non recurring expenses viz. building repair, boring expenses, purchase of fixed assets, etc. should be made directly by the implementing organisation. Sneh Ghar accounts should only be used as an imprest account and therefore should not accept any income from any source. The coordinator of every Sneh Ghar should prepare a monthly fund requisition in advance and submit it to the implementing organisation in the last week of the month e.g. fund requisition for July should be made in the last week of June. The implementing organisation should review the requisition and transfer the fund in two or more equal tranches, as agreed, to the Sneh Gharâ&#x20AC;&#x2122;s bank account. Bank Management: It is the responsibility of the accounts team to operate bank accounts and handle cash in an effective and efficient manner. Bank channel should be the preferred mode of payment. The accounts team should ensure that: i. ii. iii. iv. v. vi. vii. viii. ix. x. xi. xii.

Opening and closing of bank accounts are approved by the board of members through a board resolution. Addition or deletion of any signatory is also approved by the board. Cheque signing limit has clearly been defined for each signatory. Bank account is opened in the name of the organisation. Separate bank accounts are opened for local funds and foreign funds. Local funds and foreign funds are never mixed at any point of time. The bank account is always operated on a joint signatory basis. Separate project bank accounts are opened for long-term projects or a big project funded by a single donor. Separate project bank accounts are linked with the main bank account. Cheque books are kept by an authorised finance person under lock and key. The authorised person never signs blank cheques. Bank reconciliation statements are prepared at frequent intervals.

Cash Management: i. ii. iii. iv. v.

Cash is withdrawn from the bank as per office/Sneh Ghar needs. Cash payments are made for routine petty cash expenses, advance to Sneh Sathis, travel advance or for making emergency purchases. Imprest account is kept under a responsible person. Cash is physically checked with the books of accounts regularly. Person making the payments is different from the person making the book entry. 15

(b) Receipts The Finance team has to ensure that: Proper

receipts are issued for all donations and grants. Particulars of donor and purpose of donation are mentioned on receipts. Receipts are issued by an authorised person. All receipts books are kept by an authorised person under lock and key. Foreign contributions as defined under FCRA are received in the FCRA designated bank account only. Foreign inward remittance certificate is obtained for every foreign remittance and is matched with the intimation/advice received from the donor. Separate bank accounts are maintained for local and foreign grants. (c) Disbursements The Finance team has to check that: Payments

are duly authorised and are in accordance with the budget heads. Payments are adequately supported by authenticated documents. Monthly payroll is prepared in coordination with the concerned heads. A clear distinction is made between Capital and Revenue items. Imprest is given to authorised persons only. Advances to Sneh Sathis including travel advance are ‘reconciled’ every month. Payment to a supplier is made against a proper bill. Advance, if any, paid earlier to a supplier is adjusted against the final payment. Disbursements to partners are made as per the agreement signed with them. Foreign grant is not disbursed to any non-registered FCRA organisation. Fund Accounting Definition As the name suggests, it is a fund based accounting system and plays a very crucial role for an organisation that is running a number of projects and handling various donations or grants for specific purposes. Under this system each fund is treated as an independent project and therefore has a separate set of records and financial statements. These financial statements of different funds are consolidated while preparing the financials of an organisation as a whole. Use of the fund accounting concept is not limited to a specific fund only, it can also be used for specific programmes or activities being funded by various donors.

The concept of fund accounting has been extended to Sneh Ghars also, as it is considered as an independent project and treated as a separate cost centre for accounting purposes. Purpose Fund accounting helps to analyse each project and its activities comprehensively. It is widely used for ensuring financial transparency, close monitoring on project fund movement, timely preparation of reports and clear allocation of various common expenses. Advantages The main advantages of fund accounting are enumerated as follows: optimal usage of funds available for a specific purpose or project. Keeps track of inter-project borrowings. Expedites the decision making process. Ensures efficient allocation of available resources. Helps in timely and accurate reporting. Keeps control on project cost/expenses. Ensures timely execution of projects. Enhances the donor’s trust in the organisation. Ensures compliance with the requirements of the donors in the fund utilisation and in the preparation of reports. Aids the smooth functioning/execution of the project/programme with an assured and uninterrupted fund supply. Helps in evaluating performance of each project. Ensures

Chapter

Budgeting and Budgetary Control

Definition A Budget is a plan that identifies the financial resources of the implementing organisation, required to achieve its programmatic objectives. It is a link between the available finance and the planned activities of a Sneh Ghar. Activities should be planned in such a manner that adequate funding is assured for the smooth running of each activity. Budgetary control ensures recording of expenses under proper budget heads and assists in controlling the actual expenditures. Budgeting Process It is a financial plan that needs to be prepared very carefully and approved prior to a defined period of time. As the budget involves various functional activities, a close association of the Sneh Sathis is essential for the satisfactory formulation and implementation of the budget. All programme or project plans should be directed to achieve the overall goals of the organisation for which it is formed. Budgeting process involves the following steps: •• •• •• •• •• •• •• •• •• •• •• •• ••

Plan the overall activity for the Sneh Ghar. All activities should be well defined, broken down to the smallest possible extent and the time frame of their implementation should be clearly laid down. Identify the staff for the budgeting process, define their responsibilities and fix the target dates. Identify the donors. Convert the programme plan into a financial plan through budgeting. Budgeting procedures should also satisfy the donor’s requirements. Separate budgets should be prepared for each Sneh Ghar. Separate budgets should be prepared for fixed assets. Budgets should be prepared on realistic assumptions/estimates. Targets should be realistic and not impracticable. A lump sum amount can be used for those budget items that are unable to be broken down practically. Provision for inflation should always be made in the Annual Budget. Budgeting process for the next financial year must start at least three months before the end of the current fiscal year to ensure that the new budget is approved by a competent approving authority before the designated budget period begins.

•• ••

Provision for certain unforeseen or abnormal expenditures should be made. Ascertain that the project is technically sound, economically and socially viable and fits within the overall economic objectives of the donor/sponsoring body.

Monitoring and Evaluation Monitoring and Evaluation is a very crucial part of an effective budgeting process. The main objectives of monitoring and evaluation are to: •• •• ••

•• •• •• •• •• •• •• •• ••

Ensure that expenses are booked under proper account-heads. Ensure that expenses are incurred as per the budget. Ensure that booking of expenses under the wrong budget head is not made just to exhaust the left over balance under that head or to avoid overspending under another budget head. Ensure that prior approval has been obtained for any revision in the budget. Ensure timely execution of the programme/project. Ensure proper allocation of funds for the effective implementation of planned activities. Compare actual expenses with the budget expenses and prepare a variance analysis statement. Investigate irregularities, if any, and record the reasons thereof. Review the budget at frequent intervals; say monthly, as budgeting is a continuous process. Analyse unusual fluctuations in expenditure and income. Ensure that the same expenses are not being charged to different donors if donations have been received from multiple donors for a project. Ensure that unspent balances, if any, are carried forward to the next grant period with the prior approval of the donor.

Chapter

Purchasing/Procurement System and Inventory (Stock) Management

Purchasing System Definition This is a set of clearly defined procedures that need to be followed by the implementing organisation to procure or purchase goods and services in a transparent and efficient manner. Purpose It ensures receiving the best value for the money spent. It helps in procuring goods and services of the best quality, in the correct quantity and in a timely manner by maintaining transparency. It ensures that all available suppliers are given an equal chance and that the supplier offering the best deal is selected. If the implementing organisation has established only one Sneh Ghar, it is more practical for the Sneh Ghar to undertake independent purchasing. However, if there is more than one Sneh Ghar, a centralised purchasing process, as described below is more economical and viable. Procedures (a) Purchase/Service Requisition The following pointers must be kept in mind: Purchase/Service

requisition should be prepared by the Sneh Sathis for any purchase requirement. This requisition form should clearly describe the supplies/asset/service/quantity and value required. This form should be duly approved by the authorised person and then forwarded to the purchase department. A Sneh Ghar should prepare its monthly requisition for toiletries, food stuff, stationery items, etc. and submit it to the implementing organisation before the 25th of every month. On receipt of the requisition from all the Sneh Ghars, the main office prepares a consolidated purchase order and sends it to the supplier. List of supplies for each Sneh Ghar is prepared 20

in triplicate – one for the supplier and two for the receiver Sneh Ghar. The Sneh Sathi verifies the receipt of supplies with the lists and the supplier’s delivery challan, and sends back one signed copy of the list to the main office for the payment process. (b) Role of Purchase Department The Purchase Department must assure the following: It

must be independent of the receiving department and the accounts department. The purchase department should acknowledge the receipt of the purchase requisition order and take proper action. It must review the requisition and check the availability of the things required before selecting the supplier and placing the purchase order. Purchase Orders should be pre numbered and must be issued by authorised persons only. Purchase order books should be kept under lock and key to avoid their misuse. Procurement is normally done by inviting tenders for big orders or quotations for small orders. Ensure that at least three quotations from different suppliers are invited for the purchase of goods valuing more than Rs.10000/- (or any other agreed amount). The purchase officer should place the order with the lowest bidder. If the chosen bidder is not the lowest one then the reasons why the lowest quotation was not chosen should be recorded on the comparative statement. The purchase department should prepare a list of reliable suppliers, which should be updated with the addition of new suppliers or changes in the information of existing suppliers. A Procurement Committee can be formed, if required, for bulk purchases. The committee may consist of one person each from the Sneh Ghar, the finance department and the purchase department. A Purchase Order may be classified under the following categories: i. High Value Items ii. Low Value Items iii. Size of the Order iv. Capital Items v. Regular Items The

purchase order should clearly state the name of the vendor, date of issue of the purchase order, description, unit, quantity, unit value, total value, terms and conditions including name of the contact person in the office, the time by when it is required, etc. 21

The

purchase officer should also check with the finance department about the availability of funds before placing a high value order. Regular supplies/services for the office and programmes are purchased from an approved regular supplier/service provider and the contract with the supplier should be reviewed at regular intervals and renewed on merit basis. Emergency Purchases are made after getting an approval from the authorised person. Formal competitive requirements may be waived for making such purchases. Emergency procedures should strictly be utilised only to purchase that quantity of a good or service which is necessary to cover the emergency. Sole Source Procurement is justified when the required item is available or supplied by a single vendor only. A written justification is required while making a requisition for sole source. (c) Receipt of Supplies/Service The following points are important: Goods

are received as per the purchase order and a Goods Receipt Note (GRN) is prepared for the receipt of each supply. The purchase department and accounts department are intimated about shortage, rejection or return, if any. Receipt of supplies is well in time and is recorded in the stock register before being put into use. Fixed Assets are recorded in the Fixed Assets Register. (d) Payment to Supplier The accounts department in the implementing organisation should ensure that: The

supplier’s invoice is received directly by it. There is no over writing and cutting in the supplier’s invoice. The supplier’s invoice is verified with the Purchase Order, GRN and issue debit/ credit note, if required. Payment is made as per the terms and conditions laid down in the purchase order. The payment is released preferably by an account payee cheque in the supplier’s name. Tax, if any, is deducted while making the payment to the service provider. Inventory (Stock) Management Efficient management of inventory brings major benefits to the implementing organisation. The classification of inventory depends upon the nature of activities carried on by an

organisation. Proficient management of inventory helps in placing an order of optimum quantity after considering the Ordering Costs and the Carrying Costs. Ordering Costs These are: Date

of preparing purchase order Cost of receiving material Documentation processing time Transportation costs Cost of frequent or small quantity orders Discount on placing a bulk order Carrying Costs These are: Storage

costs Cost of staffing the stores Handling costs Cost of auditing and stock-taking Cost of funds blocked in stock Extra cost associated with an urgent order Inventory Levels Inventory levels should be fixed before a new purchase order can be placed in order to get the maximum benefit for the organisation. The following inventory levels can be fixed for different inventory items: Reorder

level – This is the level when a fresh order is to be raised. Minimum Stock Level or Buffer Stock level – This is the level below which stock should never fall. Maximum Stock Level – This is the level beyond which keeping stock is not cost effective. Advantages Sound inventory management system ensures: Optimum

use of inventory items. Fund is not blocked in inventory.

Timely

placement of purchase orders. Accurate recording of inventory. Minimum storage costs. Bulk order discount from suppliers. Monitoring The following need to be carried out: Physical

verification of inventory with finance and stock records should be done at regular intervals and proper action should be taken in case of any discrepancy. Stock register should contain the following information: i) Opening balance of stock ii) Dates of receipts and issue iii) Quantity received and issued iv) Closing balance of stock Obsolete,

discarded and expired items in case of eatables or medicines are to be struck off from the inventory register. Sneh Ghars purchase perishable items viz. vegetables, fruits, milk, etc. on a daily basis, and follow the above procedure for the other items.

Chapter

Fixed Asset Management System

Definition Fixed assets are tangible assets having a useful life of more than one year. It should be the endeavour of every implementing organisation to take all possible measures to safeguard these assets and use them efficiently and effectively. Fixed Asset Management System is a set of procedures, which ensures the optimal use of fixed assets during their useful life. This system should be developed very carefully. Purpose The main purpose of the fixed assets procedures is to ensure a proper recording of all the assets and to keep an effective control on their usage by monitoring their movement and condition. These procedures ensure a physical verification of assets at regular intervals as well as arrange insurance cover for all the assets. Fixed assets are normally classified under the following categories: •• •• •• •• ••

Vehicles Office Equipment Furniture and Fixtures Computer and Peripherals Land and Buildings

Fixed assets are recorded at purchase price plus all direct expenses incurred for bringing that asset into use. Donated assets are recorded at fair market value. Identification Number Every asset should be allotted an identification number. Such a number may be alpha numeric and should clearly describe the asset category, donor’s name, year of purchase, location of asset and serial number. For example, a computer purchased in 2012 for Khushi, by using money from the Partnership Foundation Fund, can be allotted an identification number that reads Partnership Foundation/Computer/2012/Khushi/001. Insurance Cover All assets should be adequately insured and in case they are not, the implementing organisation should ensure that appropriate measures and proper checks are in place to

safeguard the assets. Insurance cover should be taken for all major risks like flood, fire, earthquake, riots, etc. Internal Checks or Controls Internal checks or controls are introduced to safeguard the assets and maximise their use. The objective of all these checks is to ensure that: •• •• •• •• •• •• •• •• •• •• •• •• •• •• •• •• •• ••

Additions and disposals are properly authorised. Documents relating to purchase or disposal of assets are in place. Additions and disposals are correctly recorded. Assets are purchased as per pre-defined procurement policies. Assets are bought as per the approved budget. Specifications as described in the purchase order are to be checked while accepting delivery of assets. Every asset carries an identification number. Obsolete and damaged items are removed from the records. Assets whether purchased or donated are recorded in the fixed assets register. Movement and condition of assets are closely monitored and properly documented. Handing and taking over of assets are properly documented. Physical verification of assets takes place at regular intervals and proper actions are taken for removing discrepancies, if any. Discrepancy, if any, must be investigated, documented and corrected immediately. Assets sold to members or relatives are duly authorised and properly documented. Assets are correctly depreciated as per the prescribed rate of depreciation. Lost assets are thoroughly investigated. Newly purchased assets carry a guarantee or warranty card. Fixed asset register is maintained and updated with every purchase or disposal.

Chapter

Statutory and Legal Requirements

Definition These are government-defined set of rules and regulations laid out under different Acts and need to be adhered to by all organisations which are registered under any of these Acts. These legal compliances are mandatory in nature and therefore all the registered organisations are bound to follow them. Purpose A registered organisation is offered a range of benefits under different Acts. All these benefits can be availed of only, if the registered organisation complies with all the legal and statutory requirements as laid down under the applicable Acts. These compliances are also necessary to avoid penalties, prosecutions and fines under those Acts. Applicable Acts The Acts that apply are: •• •• ••

Societies Registration Act, 1860 Income Tax Act, 1961 Foreign Contribution Regulation Act, 2010

Society Registration Act, 1860 (a) Registration as a Society A voluntary organisation can be formed as a society. A society is an association of persons united together by mutual consent to deliberate, determine and act jointly for the same common purpose. As per the Act, a society can be formed by minimum seven (or more) persons, eligible to enter into a contract, for any literary, scientific or charitable purpose, or for any purpose as is described in Section 20 of this Act. The registration is made with the Office of the Registrar of Societies of a particular state. An organisation that wishes to register is required to submit various documents to the Office of Registrar of Societies for registration under the Societies Registration Act, 1860. The Registrar scrutinises the submitted documents and after satisfying himself about the correctness of all the documents filed and compliance of all the required provisions of the Act, issues a Certificate of Registration. A registered society has to file its audited Annual Accounts and a list of governing body members to the Office of the Registrar of Societies every year. 27

Income - Tax Act, 1961 (a) Requirement of Registration The income of a charitable organisation is exempt from income tax on fulfillment of certain conditions as prescribed in the Income Tax Act. However, any profit or gain for activities by such an organisation shall not be exempt unless the business is incidental to the attainment of the objectives of the trust/ institution and separate books of account are maintained by such a trust/ institution in respect of such a business. Sections 11, 12, 12A and 13 of the Income Tax Act deal with tax exemptions in respect of income of trust/institutions. The organisation needs to get itself registered under the Income Tax Act for claiming exemptions in respect of its income.

Permanent Account Number (PAN) This number has 10 alphanumeric characters and is issued in the form of a laminated card. All organisations which are required to get themselves registered as per the Income Tax Act or furnish returns of income should apply for PAN on Form No.49A. Once the PAN is allotted, it remains valid forever unless it is cancelled or changed by the Income Tax Department. Tax Deduction Account Number (TAN) An organisation is required to have TAN if it is required to make payments from which tax is to be deducted as per the Income Tax Act. It has to apply for allotment of TAN on Form No.49B The organisation deducting TDS (tax deduction at source) is required to issue a certificate to the person from whose payment tax has been deducted. The certificate is to be issued on prescribed Form No.16/16AA for deduction of tax from salary payment and on Form 16A for other payments. Such an organisation is also required to submit quarterly TDS return to the income tax authority 15 days after the end of each quarter i.e.. TDS return for the quarter ending June is to be filed by 15th July. In the case of quarter ending March, the due date of submission of TDS return is 15th June.

(b) Procedure of Registration under Section 12A Application of registration should be made within a period of one year from the date of incorporation of an organisation/institution, on Form No.10A (in duplicate) to the Commissioner of Income Tax along with the necessary documents. After verifying all the documents and calling for such information or making such enquiries as he thinks necessary to satisfy himself about the genuineness of the activities of an organisation, he shall pass an order granting registration to the organisation. If for some reason he is not satisfied, he can pass an order refusing registration. However, no adverse order shall be passed unless and until the applicant has been given a reasonable opportunity of being heard. 28

An order granting or refusing registration should be passed within six months from the end of the month in which the application for registration has been received. An organisation registered u/s 12A is required to get its accounts audited if its total income for a year exceeds the maximum amount (Rs.1.80 lakhs at present) that is not chargeable for income tax. The organisation is also required to apply a specified percentage (85% at present) of the income for charitable purposes, within India, during the previous year in which the income had been derived. The organisation can accumulate 15% of its income for charitable purposes without any obligation of applying it in a specific time frame. If the organisation is unable to apply 85% of its income in a year, it can still use it in the following year after fulfilling certain conditions as defined in the Income Tax Act. The funds of the organisation are required to be deposited or invested in the permissible forms and modes as prescribed by the Act. (c) Registration under Section 80G A voluntary organisation in the field of charitable or welfare services can apply for this registration. Donations made to certain charitable or religious institutions are eligible for deduction from the taxable income of the donors under the provisions of Section 80G of the Income Tax Act. Therefore it helps organisations to mobilise funds within the country as the possibility of tax exemption attracts donors. Procedure of Registration under Section 80G: The application for approval u/s 80G(5)(vi) is to be made on Form 10G (in triplicate) to the Director, Income Tax (Exemptions) or DITE. The application should be accompanied by the following documents: i. Copy of the Income Tax Registration Certificate issued under section 12A. ii. A detailed note on the organisationâ&#x20AC;&#x2122;s activities since its inception or for the last three years whichever is less. iii. Copies of the audited accounts of the organisation since its inception or for the last three years whichever is less. After verifying the given documents and after satisfying himself with the genuineness of the activities of the organisation or institution, the DITE will make an order in writing to that effect and grant an approval specifying the period for which it is valid. If the DITE is not satisfied, he will give the applicant a reasonable opportunity of being heard after which he will either pass a favourable order or an adverse order. The DITE shall record reasons for the rejection in his order. (d) Annual Statutory Compliances An organisation has to file the annual income tax return along with the following documents as per the Income Tax Act by the due date which at present is 30th September of the relevant assessment year: 29

Audit report on Form 10B as certified by a Chartered Accountant Balance Sheet Income & Expenditure Account Receipts & Payment Account Computation of Income Copy of Registration Certificate under Section 12A Details of activities undertaken during the previous year (desirable)

Foreign Contribution (Regulation) Act, 2010 (FCRA) Foreign Contribution Regulation Act 2010 (FCRA) came into force on 01.05.2011 and replaced FCRA 1976. Its prime objective was to regulate the foreign receipts of certain specified persons, irrespective of the nature of receipt, unless it is specifically excluded in FCRA. Person includes an individual, a Hindu undivided family, an association or a company registered under Section 25 of the Companies Act, 1956. Foreign Contribution means funds received from any foreign source, as defined in FCRA, whether in India or outside India and whether in Indian currency or foreign currency. No person having a definite cultural, social, economic, educational or religious programme shall accept foreign contribution unless such a person either obtains a Certificate of Registration under FCRA or obtains prior permission to receive foreign contribution by making an application to the Ministry of Home Affairs in the form and manner and along with the fees, as may be prescribed. If on receipt of an application for grant of certificate or giving prior permission and after making such enquiry as the Ministry deems fit, it is of the opinion that the conditions as specified in FCRA are satisfied, it may, ordinarily within ninety days from the date of receipt of application, register such a person and grant him a certificate or give him prior permission, as the case may be, subject to the terms and conditions as may be prescribed. The registration shall be valid for a period of five years and the prior permission shall be valid for the specific purpose or specific amount of foreign contribution, as the case may be. No specific time limit has been provided under the FCRA for making an application. However, as per the FAQs issued by the FCRA Department, application for registration under the FCRA can be made by an organisation after three years of active functioning, provided that the organisation has spent more than 6 lakh rupees during these three years. An organisation which is newly established and which does not have a proven track record of functioning may also receive foreign contributions for specific activities, for a specific purpose or specific amount and from a specific source after seeking project based prior permission from the Ministry of Home Affairs. (a) Mandatory Obligations to be followed by a FCRA Organisation An organisation registered with FCRA has to follow certain mandatory obligations which are given below: 30

Separate

Bank Account: A separate bank account has to be maintained for receiving and utilising Foreign Contributions. Any local income of the organisation cannot be deposited into the Foreign Contribution Account. No foreign funds can be transferred to any organisation, which has no FCRA registration.

Separate

Books of Accounts: For the transactions of Foreign Contribution Funds, an organisation has to maintain separate books of accounts. Combined books of accounts for Domestic and Foreign Contributions are not allowed.

Utilisation

within the Country: No Foreign Contribution is to be utilised for any programme outside the country.

Annual

Return:1 An annual return on Form FC-6 has to be filed to the FCRA Department by 31st December of every year with a certified Balance Sheet and Receipts and Payments Account. The details of the office bearers should also be attached with the annual return.

Social Security Measures Employee Provident Fund (EPF) & Miscellaneous Provisions Act, 1952 The Employee Provident Fund And Misc. Provision Act, 1952 is a government scheme meant to provide security to the employees against old age and ill health. This Act is applicable on an organisation that employs 20 or more employees. The Employee Provident Fund and Miscellaneous Provisions Act, 1952 comprises of the following three schemes: Employees Provident Fund Scheme, 1952 Employees Deposit-Linked Insurance Scheme, 1976 Employees Pension Scheme 1995 (earlier known as the Family Pension Scheme, 1971) The primary objective of these three schemes is to provide social security and to develop a habit of saving amongst the workers while they are employed and to make provision for their benefit after they retire from service and for their family members after their death. (a) Employees Provident Fund Scheme, 1952 Eligibility: Every employee working in an establishment to which this Act applies is eligible to become a member of the Fund if his basic salary falls within the limit as prescribed under the Act. A person engaged for even one day is brought under the purview of the EPF coverage. The forms and procedures can be downloaded from the website of the Ministry of Home Affairs at http://mha.nic.in/ fcra.htm Till 31st December 2011 this form was known as FC-3. 1

Rate of Contribution: The Employee’s share of contribution under this scheme is 12% of his Basic Salary plus Dearness Allowance. His contribution shall be calculated to the nearest rupee and deducted from his monthly salary/wages payment. Employer’s Contribution: The contribution payable by the Employer under this scheme shall be equal to the contribution payable by the Employee (12% of Basic & DA). The employer’s share splits into two parts - 3.67% goes to the Employees’ Provident Fund whereas 8.33% goes to the Employees’ Pension Fund. The pension amount is subject to a maximum of Rs.541 i.e. 8.33% of a salary of Rs.6500/-. Other Charges: The employer is also required to pay an amount equivalent to 1.115% and 0.50% of basic salary and DA towards administration charges and EDLI charges respectively. Due date of Deposit: It is the responsibility of the employer to deposit the provident fund along with the other charges for each month within 15 days of the next month. Penal provisions are attracted in case the employer does not make the payment before the due date. (b) Employees Deposit- Linked Insurance Scheme, 1976 This scheme was notified with effect from 01.08.1976 and is applicable to all the subscribers of the Employees Provident Fund Scheme, 1952. All members of the Employees Provident Fund Scheme automatically become members of the Employees Deposit-Linked Insurance Scheme, 1976; unless an exemption has been obtained in favour of a Life Insurance Corporation policy. Employees are not required to contribute under the Employees Deposit-Linked Insurance Scheme whereas the employer contributes at the rate of 0.5% of the wages of the members on which the Provident Fund has been paid. Benefits under the EDLI Scheme, 1976 are payable to the person who is entitled to receive the provident fund of the deceased member. (c) Employees Pension Scheme, 1995 Employees Pension Scheme, 1995 was made applicable on 16.11.1995 with retrospective effect from 01.04.1993. All members of the Employees Provident Fund Scheme automatically become members of this pension scheme. 32

Employees are not required to contribute towards this scheme whereas 8.330% of basic salary and DA of an employee is contributed by the employer towards this Pension Fund. A person during his life time or his family after his death is entitled to the benefits available under this pension scheme on fulfillment of a few conditions as prescribed. Gratuity Gratuity is a retirement benefit and is paid to an employee in consideration of his past service when the employment is terminated. It provides financial support to the employee after his employment comes to an end and provides much needed financial assistance to the surviving members of the family after the death of the employee. Gratuity schemes, therefore, serve as instruments of social security. According to Section 4(1) of the Payment of Gratuity Act, 1972, gratuity is payable to an employee on the termination of his employment after he has continuously served for at least five years. This clause is not applicable in case termination of services is due to his death or disablement due to an accident or disease. Eligibility Gratuity is payable to an

employee on his superannuation, or on his retirement or resignation, or to his nominee or family on his death or disablement due to accident or disease. Calculating Gratuity Amount of gratuity is arrived at by calculating 15 days wages based on the rate of wages last drawn by the employee for every completed year of service or part thereof in excess of six months. The monthly wage is multiplied by 15 and divided by 26. Gratuity is paid within 30 days of retirement, resignation or death. However, If the employee is dismissed because of his willful or negligent act causing loss/damage

to the organisation, then gratuity will be paid after adjusting such loss or damage. No gratuity is paid in case the employee is dismissed for his violent or riotous or disorderly conduct.

Chapter

Financial Review and Audit Systems

Definition This is a systematic review of all the financial transactions of an organisation. It ensures the preparation of periodic financial reports for the management and donors along with statutory reports in compliance with various applicable laws. This system involves: •• •• ••

Financial Reviews and Follow-up Plans with the Management Annual External Audit and Related Procedures Regular Internal Audit and Related Procedures

Financial Reviews and Follow-up Plans with the General and Advisory Committee The Financial Review System is a very important management tool to ensure the generation of regular and timely financial and other related reports for the management. This system defines the type, contents and frequency of various reports. It focuses on managerial aspects of the organisation and includes accounting and records keeping, financial reporting, budget monitoring, internal controls and grant management standards. (a) Management Information Report Various finance reports are prepared for apprising the management of the financial health of the organisation. Management should hold finance review meetings on a monthly basis to get itself acquainted with the financial status of the implementing organisation. Generally, the following reports are prepared for review by the management on a monthly basis: Trial

Balance Bank Reconciliation Statement Staff Advance Statement Monthly Expenses Statement Monthly Variance Analysis (b) Donor’s Reports Donor’s reports are prepared as per the donor’s requirements and grant agreement. Normally the frequency of submission of periodic reports to the donor is clearly defined in the grant agreement but in the absence thereof, the grant recipient should submit the 34

following information on a bi-annual basis: Fund

Utilisation Statement Statement of Variance Analysis A copy of the audited annual final accounts of the implementing organisation may also be submitted to the donor every year. Regular Internal Audit and Related Procedures Regular internal audit is not mandatory for NGOs but it is always expected that implementing organisations should have an internal audit system commensurate with its size and nature of activities to ensure efficient functioning and effectiveness of internal controls. Scope of an internal audit depends upon the size and structure of the organisation and on its requirements. The main objectives of an internal audit system are to: Review

all accounting systems. Check if proper recording and accounting of all financial transactions is being carried out. Ensure cost effectiveness of internal checks/controls at various points. Analyse the organisational structure to ensure harmony in responsibility and authority at various levels. Evaluate systems to ensure the optimal use of resources for the attainment of the organisation’s goals. Assess internal controls for safeguarding assets. Review the insurance cover for all the assets. Ensure the compliance of various policies and applicable laws. Examine the system of communication of policies to all concerned. Verify and physically examine all the tangible assets. Examine the system of compilation of data for preparing various reports for the management and external agencies. Review the reliability and relevance of all the periodic reports. Ensure the timely submission of various reports. Check that the use of funds is for the attainment of the organisation’s objectives. Prepare a Variance Analysis Statement. Ensure the timely payment of statutory dues. Check that all payments are duly authorised. Ensure correct and timely disbursal of fund to partner organisations.

Annual Reports and Audit Requirements Every organisation is required to prepare annual accounts and other reports and get them audited, as prescribed by various laws, by a duly qualified auditor. A duly qualified auditor means any person who is a qualified Chartered Accountant and a practicing member within the meaning of the Chartered Accountant Act, 1949. Appointment of an external auditor should be made by the Governing Body of an organisation. The auditorâ&#x20AC;&#x2122;s appointment letter should clearly define his scope of work and remuneration. An external auditor is expected to take all necessary measures to ensure that the accounts of an organisation have been maintained as per generally accepted accounting policies and applicable accounting standards and laws. S/he has to certify that the organisation has complied with the statutory audit and other legal requirements. It is the duty of the auditor to make adequate disclosures in his audit report if he finds any deviation from the prescribed accounting standards and accounting policies. The managementâ&#x20AC;&#x2122;s responsibility is to take appropriate action in response to the adverse remarks or qualifications in the auditorsâ&#x20AC;&#x2122; report. All irregularities need to be properly dealt with by the management.

la?k"kZ dh jkgksa esa la?k"kZ dh jkgksa esa] dksbZ rks gekjk gks---gj jkr dh ckgksa esa] lqcg dk ut+kjk gks

In this life full of strife In this life, full of strife, We long for a friend and guide... In the darkness of night We long for a dawn, warm and bright

la?k"kZ dh jkgksa esa] dksbZ rks gekjk gks---geus rks t+ekus dh] jaft'k dks gh ih Mkyk pqHkrs gq, gj iy dks] gl [ksy ds th Mkyk

In this life full of strife, We long for a friend and guide… We swallow hatred and the vile Stinging moments, with a smile

D;ksa iwN jgs gks rqe] D;k geus xok;k gS thou dh rks cl NksM+ks] gj [okc ijk;k gS

Why do you ask, what have we lost, Not just life, even our dreams went past...

la?k"kZ dh jkgksa esa] dksbZ rks gekjk gks----

In this life, full of strife We long for a friend and guide…

Written by one of the children from Sneh Ghars in Delhi

Open Hearts, Open Gatesâ&#x20AC;Ś

Printed by: Print World # 9810185402

Comprehensive Care for Street Children: Handbook for Planners and Practitioners Managing Finances

Centre for Equity Studies

Indradhanush Academy Centre For Equity Studies

Indradhanush Academy