FINANCE DEPARTMENT

Finance Guidelines

* Establish the amount to be donated regularly by each ÁMPS Unit to the Regional Office.

* Make sure that all the ÁMPS Units and all the ÁMPS projects are financially self sufficient.

* Maintains accounts & produces budgets all over from Sectorial to Village level.

* Inspect the Finance statements and reports of the ácárya/ás and of the projects.

* Ensure that the workers follow the conduct rules regarding the use of their personal and organizational incomes.

The finance Department of Ánanda Márga Pracáraka Saḿgha is in charge of managing the affairs of the organization in terms of funds or money. It plays three roles: Treasurer, Bookkeeper and Accountant.

 

Treasurer

Receives keeps and disburses funds using proper discrimination over the needs and priorities of the organization. The limited resources of the organization are often a problem. How to accomplish desired programs on very limited funds or how to meet obligations as they fall has always been a challenge for this department. Proper discrimination has to be exercises in order that whatever funds available will be properly utilized. To do this the Finance Secretary, as a treasurer, must always be aware of what is going on in every department.

 

Bookkeeper The Finance Secretary records and classifies all financial activities, including every detail which involves the receipts and disbursement of funds. All useful information about the cash flow of the organizations has to be properly recorded.

 

Accountant The Finance Secretary have to summarize all the information recorded in the form of a report or statement in order to be helpful to anyone, that is, a concise picture of the significant findings gleaned from detailed records. The consolidated reports of income and expenditure should be ready at the time of reporting and should at glance give accurate idea of the financial conditions of the Organization.

 

To Summarize; the Duties Therefore of Finance Secretary are: As a Treasurer collects and receives subscriptions, donations, etc. and deposit the money in the bank.

 

As a Bookkeeper Keeps and maintain cash books and other accounts whenever necessary. Bookkeeping means recording the financial data according to classifications in a prescribed manner. Entries in the financial books are based on the financial documents, such as the Official Receipts OR and Cash Vouchers CV. To classify well one has to know and understand each transaction.

 

As an Accountant Handle all cash and disbursement and submit reports to the Central Committee. The Finance Secretary is the trusty of the mundane wealth of Ánanda Márga. To the Finance Secretary is given the trust and duty to take care of the monetary side of the organization, and thus must execute this responsibility in a trustworthy manner. To do this, two very important documents are needed: one for receiving money using OR - official receipts books; and one to disburse funds by using cash voucher books.

 

Example of Official Receipts Add one sample OR Here

 

An official receipt OR is the evidence that an amount of cash has been received. This cash received may be a donation, a pledge, etc. in any case it is a document issued upon receiving cash.

 

 

Each official receipt should be written with carbon copy at least in two copies recording the following data: Serial Number: Each receipt should be recognised by a Progressive Serial Number. Date: The date of issuing the OR should be the same when the money is received. Name: Full name and surname of the person or organization giving the fund. Amount: The amount of the fund received should be written in words and in numbers. Cash: If the payment is made in cash just write the full amount. Check: If the payment is made with checks specify the amount, the check number Purpose: The purpose of the payment Signature: The OR must be signed by the Finance Secretary or by an authorized person.

 

Example of Cash Voucher Add one sample Cash Voucher here

 

A Cash Voucher is a proof that a certain fund has been disbursed. It is a special form on which is recorded pertinent data about expenditure and the particulars of its payment.

 

 

Each Cash Voucher should be written with carbon copy at least in two copies recording the following data: Serial Number, Each Cash Voucher should have a Progressive Serial Number. Date: The date of the Cash Voucher must be the same when the money is disbursed. Name: Full name and surname of the person or organization receiving the fund. Amount: The amount of the fund disbursed must be written in words and in numbers. Cash: If the disbursement is made in cash just write the full amount. Check: If the disbursement is made with checks specify the amount and check number Purpose: The purpose of the disbursement. Signature: The Cash Voucher must be signed by the Finance Secretary or by an authorized person.

 

Definition of Financial Accounts

Income
1. Donations funds that come from the márgiis, donors or sympathisers who give either regularly or occasionally.

2. Pledges funds that come from the márgiis or sympathisers who have signed the pledge cards. Pledges are collected regularly

3. Registration Fee funds coming from the registration fee of seminars, conferences, retreats, and any other program, etc.

4. Sales funds that comes from selling of books, newsletters, magazine, CDs, and commerce items. During reporting these funds should be divided as book sell, CD sell, Commerce items, etc.

5. Fund Raising incomes from selling tickets from vegetarian dinners, second hand items,

6. Loans funds borrowed from someone or from institutions such as banks, etc.

7. Other Income includes interest income from saving in the bank refund of tickets, etc.

 

Expenditures

1. Travel & Transport fund spent to travel by bus, taxi, train, boats, plain, etc.
2. Office Supply fund spent to buy material needed to maintain the office like, paper, pens, folders, clips, computers, printers, shelves, etc.
3. Communications amount spent in sending letters, circulars, telegrams, telephone bills, etc. This account is subdivided into correspondence, circulars, telegrams and telephone.
4. Maintenance funds spent to maintain jágrtis, offices & other ÁMPS properties. It includes rental, electricity, water, construction material, gardening supply etc.
5. Administration funds spent for visas, government dues, taxes, organizational dues, etc.
6. Festivals funds spent for social & spiritual functions, festival, parties, outings, collective meals, etc.
7. Food Include meals of workers, food for seminars, retreats, social and spiritual functions will have a separate account accordingly.
8. Workers Support includes personal things for the workers such as clothes, foot wares, toiletry, medicines,
9. Miscellaneous small expenditures which could not be classified under any of the above account titles.
10. Departmental includes all expenses for each Department for its own program and
11. 50% Pledge to RO fund paid to the Regional Office which is half of the total pledge collected.

Cash on Hand COH

It is the actual amount of money in cash kept in the office, jágrti, etc.

 

Cash in Bank CIB

It is the total amount deposited in the bank which appears in the passbook or bank statements Total Cash Holding

 

It is the sum of the balance of cash in hand plus cash in bank.

Debit and Credit

An account has two sides – one side which signifies an increase and another side which signifies a decrease. The left side of an account is always called a debit and the right side of an account is always called a credit. A debit may signify either an increase or a decrease, depending on the nature of the account and a credit may like wise signify either increase or decrease. The debit side of asset accounts (anything physical or rights owned that has a money value, like cash on hand, Cash in Bank, Accounts receivable, etc.) is used for recording increases and the right side is used for recording decreases. The system for liability (accounts payable) and income or revenue accounts (pledges, donations, Sales, etc.) is exactly the opposite, with the debit side being used to record decreases and the credit side to record increases. The rules of debit and credit may therefore be stated as follow.

 

Debit signifies
Increase in asset accounts
Decrease in liability accounts
Decrease in income accounts
Increase in expense accounts

 

Credit signifies Decrease in asset accounts
Increase in liability accounts
Increase in income accounts
Decrease in expense accounts

 

Journal A journal or a book of original entry is a permanent chronological record of the debits and the credits resulting from money transactions. On the basis of the evidence provided by the financial documents, such as the Official Receipts and the cash vouchers, the transactions are encoded chronological order in this journal.

 

For our purpose, a 16 column journal will be used. The following accounts have been found out to be used often.

 

Cash on hand
Pledge
Donations
Sales
Office supply expenses
Communication expenses
Travel and Transportation Expenses
Workers support
Office/Jágrti Maintenance
Departmental expenses
Miscellaneous expenses
Sundry accounts

 

The rest of the accounts that will be used, like cash in bank, social functions, etc. may happen only once or twice a month. When these transactions occur, they will be lodged under the heading sundry account. In recording financial transactions, always keep in mind that for every debit there is always a corresponding credit. A transaction always affects at least two accounts. If only two accounts are affected, one of them must be a debit and the other must be credited for a like amount. If more then two accounts are affected, the sum of the debit is always equal to the sum of the credits. At the end of each month, every column is added and a test of equality between the sum of the debits and the sum of the credits is made. This test of equality maybe done as often as desired; if there is no equality between the two, it is probably due to one or more of the following errors:

 

1. One of the columns was incorrectly added.
2. The amount was incorrectly recorded.
3. A debit was recorded as a credit, or vice versa, or the amount was omitted entirely.

 

It is readily apparent that that in entering transactions in the journal care should be exercised in recording correct figures in the appropriate accounts.

 

In preparing financial statements, however, it is the balance of each account that is needed rather than the total debits and the total credits of each account. A balance is the difference between the total debits and the total credits in an account.

 

To handle all cash receipts and disbursements and render accounting of the same to the Central Committee form time to time.

 

Financial Statement

A financial statement is a summary of all transactions over a period of time showing the amount and kind of income, the amount and kind of expenses, and the result cash positions. This quantitative report is the means of conveying to management a concise picture of the financial conditions of the organisation. Therefore, it is to be expected that this report is accurate (correct, exact, precise, and truthful). This explains the reason why a Finance Secretary has to go thru all those details of recording a transaction. The sequence of events leading to the making of a financial report may be diagrammed as follows:

Financial Transaction occurs

Financial Document prepared Entry Recorded in Journal Columns are added Financial Statement prepared

A Financial Statement should be identified by the name of the unit or dioceses or region, the title of the statement, and the date or period of time.

The use of indentions, captions, sign of the currency and rulings in the financial statements should be noted. They are employed to accentuate the several distinct sections of the statement. At the bottom part of the statement, the finance secretary has to sign his name.

Instructions

1. Analyse each transaction carefully and fill out an official receipt or a cash voucher accordingly.
2. Based on the official Receipt or the Cash Voucher, record every transaction in the Financial book, keeping tract of the balance of the cash on hand.
3. At the end of the month, determine the balance of each column.
4. Based on the balance of each column, make a financial report.

Budgeting

A budget is a formal written statement of a management’s plans for the future, expressed in financial terms. Most college students have at one time or another drawn up plans for the effective use of their time to secure a balance between academic and extra curriculum activities. This is a time budget expressed in days or hours. Similarly a student with limited resources finds helpful to write down a plan for efficiently using his funds to see him through a semester or year of schooling. This is an expenditure budget in terms of cash.

 

A budget charts the course of the action. Thus, it serves management in the same manner that the architects’ blue prints assist the builder and the navigator’s flight plan aids pilot. A budget, like a blue print and a flight plan, should contain sound, attainable objectives rather then more wishful thinking.

 

Three Functions of a budget
1. It serves as a plan or a blue print for accomplishing a set of objectives. Budget objectives also encourage efficiency and reduction in cost and act as a deterrent to waste.
2. It serves as a forewarning of conditions that require advanced remedial action. A Budget compels executives to study their problems It instills the habit of careful investigation before decisions are made.
3. It serves as a means of evaluating the performance of the workers. Budgeting contributes to effective management control through the preparation of frequent budget reports in which actual performance preparation of frequent budget reports in which actual performance and budget objectives are compared and variation are revealed.

 

How to make a Budget

1. Prepare an income or cash receipt forecast. This is a starting point because to a significant extent operating expenses will be controlled by expected income.
2. Estimate the operating expenses and departmental expenses. These estimates will depend on plans of activities and targets of the organisation.
3. Summarise the estimated data in the form of a budgeted financial statement for the program budget period.

 

The role of Finance in the Mission of Baba is indeed a bug one. Without finance movement will be like that of a snail’s pace. Without funds, it will be like a bus that has ran out of gasoline and the driver and the passengers will have to push to make it to move. The bus will arrive to its destination, but it would take a long, long time and by that time the people will dead tired. But with the gasoline tank full, there would be no problem, provided the bus is complete in its parts and in good running conditions. So also is finance in Ánanda Márga as an organisation. It is that which gives movement its desired speed. For example, Dharma Pracára has all its program of activities laid out, thoroughly planned out; but it cannot bring these plans into action without proper funds. All these dynamic plans will just remain plans unless and until finance comes into the scene.

 

But oftentimes, finance secretary is there in the scene but the funds, itself, is not there. So one can just imagine the burden of being a finance secretary without wealth. Therefore, a finance secretary must be well-equipped with all the “strength giving devices” sincerely, following Yama and Niyama, especially Brahmacarya. He must have viveka (the power to discriminate which is lasting and which is not) so that when the going is rough, he can easily detach (vaeragya) himself from a seemingly huge problem.

 

It certainly is a big help to know the following pará (great qualities)
1. Krpá Mercy
2. Mrduta Mildness
3. Dhaerya Patient, constancy
4. Sampat Desire for more spirituality
5. Hasya Cheerfulness
6. Vinaya Humility
7. Romainca Rapture
8. Sisthirata Quietude
9. Dhyána Meditation
10. Gambirya Gravity
11. Udyama Untiring effort, never disheartened
12. Aksobha emotionless
13. Cudarya magnanimity
14. Ekagra concentration, one-pointdness

 

I want you to work only with this body and then leave it permanently. This is not possible for you. Increase the speed of your activities thousands of times or even countless times more than what it is and accomplish your work only with this body.

 

There are three spheres physical, mental and spiritual. It is your dharma to show the right path to the society in these three spheres. It depends on your speed also.

 

Work with the infinite power of Parama Atma (Supreme Being) and with infinite speed.

 

Victory is Surely Yours “Bábá”

 

Workers of Finance Department
* The Finance Secretary Central shall have his cadre of workers from Sector to Village level.
* There should be one Assistant Finance Secretary Central (AComSC), whom will work under direct supervision of Central Finance Secretary.
* Workers up to the Regional level shall be Avadhúta; if an Avadhúta is not readily available the work may be temporarily managed by WT or LFT (using the word acting, with their designation).
* Workers below regional level shall be WT; if WT is not readily available the work may be temporarily managed by the LFT or LPT using the word “acting” with their designation.

 

Workers’ Qualifications Finance Department
* They are workers of ÁMPS. They must have a fair knowledge on all kind of account system and know how to keep books and accounts. They should also have business, enterprises and managerial basic skills.
* They must be strong in 16 Points
* Must follow Yama and Niyama

 

Finance Structural Side
* As per rules of ÁMPS

 

Finance Global Basic Training Centre – FIN-GBTC
* There should be a FIN-GBTC ???, where trainees will acquire fair knowledge on all kind of system of keeping books and accounts.

 

Finance LFT Training Center * FIN-LFT Training Center. The students will learn the entire knowledge imparted during the General LFT Training. They will follow the manual Vidyaságar ‘Ocean of knowledge’ which will be covered in all parts. The students will learn also individual skills, basic principles all kind of system of keeping books and accounts.

 

Movements * Morality and anti corruption movements.

 

Magazines * From Central Level to the Ánanda Márga Unit Level should publish two magazines every six months. The Sectorial and Regional consolidated financial reports shall be published and distributed to all the ÁMPS Units.

 

Finance Department

1. System of financial management It is decentralised into departments and units with a pyramidal structural system of supervision. Similarly there is a system of designated revenue collection from lower level to upper level. That is, all units in the area have to submit one-eighth of their total income to the Dit Finance Secretary; all Dits are to submit one-eighth of their total income to the Diocese Finance Secretary; all Dioceses are to submit one-eighth of their total income to the Region Finance Secretary, and so on.

2. Financial bodies and its structure

a) General Finance Department General supervision of all financial activities of all departments and wings.
b) CFC (Central Finance Committee) A body of the Central Committee to oversee the financial activities through the General Finance Department.
c) In coordination with Central Commerce Secretary has to establishing self-sufficiency so that no department, no wing, no section and no sub-section of our organisation shall depends on donation for the day to day running of the organization. Donations are to be sought for service projects and acquiring organizational properties.
d) Raise fund for general activities.

3. Resources of Finance Donation (Márgiis are required to contribute minimum 2% of their income). Contribution and Production or activities for item/items designated to each department for fund raising.

4. Bank account A bank account should be opened in the name of the organisation, the department, project or activities. The bank accounts should be opened jointly with two signatures (two out of three) by concerned persons with the approval of the structural supervisory authority and GFS (General Finance Secretary). An individual WT bank account can be opened with permission.

5. Treasury All the collection, donation and contribution of funds must be deposited to the Treasury. To withdraw the fund there is need of concurrence of GFS in all cases and sanction of GS for general fund, sanction of ES for ERAWS fund in the Centre. Similar system will work on the other levels. Within the Treasury there is an Account Section. This Account Section will maintain the account of the fund, which is deposited to Treasury. Each department, section and individual will maintain its own account.

6. Approval of Project The President is the final authority to approve any project. The project proposal should be submitted to the GS with the recommendation of the department secretary after the concurrence of GFS.

7. Tax Payment: Legal work and Tax Payment of any project or department should be done promptly by the concerned In-charge. Tax return should be submitted regularly to the revenue department of the Government by the concerned body. Each Margi should endeavour to spend a fiftieth of income on Public Service (Caryácarya Part.1- Livelihood, Chapter 25).

8. Donation, Loan and Transfer of funds
a) Donation As our institutions are charitable and service oriented organizations, it does not encourage giving any kind of donation, however, if it becomes imperative, the said donation can be given with proper approval of the management committee of the institution or unit.

b) Loan No loan equivalent to or more then US$ 1,000 is to be taken or given without permission and approval of Central Finance Department. (*Notes-The amount may vary from different Sector and countries).

c) Transfer of Funds Transfer of funds from one Ánanda Márga Unit to another Ánanda Márga Unit of same department can be done taking into consideration the progress and developments of both ÁMPS Unit, but with the proper recommendations and final approval of the concerned central departmental secretary and GFS.

9. Reports and Returns Every department is to collect a monthly finance report from its lower levels. A consolidated report is to be submitted by the Finance Secretary or In-charge of that level to the higher level regularly. The department head should submit the previous finance report of his/her department in the following month to GFS.

10. Inspection and Audit The Finance Department, with the help of ISMUB Dept, or directly, makes arrangements for inspection of every unit at regular intervals and yearly. Internal and external auditors do audit. The audit report is to be submitted to the General Finance Dept. of AM and to the agency where it is imperative.

 

Examples of Systems of Designated Revenue Collection

Disposal of Surplus, Net Profit of ERAWS Units:
* The profit of a school after meeting its regular expenses to the end of the month should be distributed as follows:
* 50% for reserve fund to meet emergency of school;
* 25% to be transferred to Central ERAWS for all-round development of ERAWS and to be issued receipt for the same;
* 25% for betterment of other ERAWS units.

Surplus Profit of Homes and its Transfer to Relief Section (Central)
* Children's Home should meet requirements for 100 children for one year. Students Home, Retiring Home and Sisters Home should meet requirement for 100 persons for one year. From each remaining portion of cash:
* Keep 25% of surplus to meet requirements of a bad year;
* 25% for betterment of Homes;
* Rest 50% should be transferred to Central ERAWS to help Relief Section Central to meet emergencies and to feed different homes.
* (From RS Guide Book pgs 1-3)

Other Financial Policies

* 25% of Baba’s Photos sales to be given to legal head;
* 2.5% of the profit of publication sales to Baba’s family;
* Pratika sales proceeds to Training Centers;
* Kiirtana Cassette/CD/downloading sales to HPMG/HPMGL;
* Prabháta Saḿgiita sales to Central Office.
* The minimum 2% collection from Márgiis is to be distributed towards all departments as mutually agreed upon in the SEC approved by CEC. (Detailed modalities on this are still being worked out -GFS).

 

Monthly Reports to Submit

Five Common
1) Initiation Mention the Name and Surname, address, tel. number, e-mail address, date of birth and the date of initiation, and specify if it is Nama Mantra or First Lesson.
2) Follow up Review of lesson. Specify which lesson was reviewed and or which lesson was given.
3) DDC Door to Door Contacts
4) WT/LFT Creation Whole Timer & Local Full Timer sent to Training Center since last report.
5) Fund Collection Either regular or special donation received; excluding income from commercial activities such as selling books, CDs, yoga classes, renting rooms, etc.

Finance Reports
a) Personal Income and Expenditures
b) Project/S under Direct Supervision

Post Tour Out-Turn * Consolidated explanation of date and places visited and work done.

Tour Program * Consolidated date and places to visit and the work intended to accomplish.

Regular Dues

Finance Structural Side ACB Jurisdiction &Logistic Operation
* Central Finance Secretary ACB Central Level Jurisdiction
* Sectorial Finance Secretary ACB Sectorial Level Jurisdiction
* Regional Finance Secretary ACB Regional Level Jurisdiction
* Diocese Finance Secretary ACB Diocese Level Jurisdiction
* District Finance Secretary ACB District Level Jurisdiction
* Block Finance Secretary ACB Block Level Jurisdiction
* Paiñcayat Finance Secretary ACB Paiñcayat Level Jurisdiction
* Village Finance Secretary ACB Village Level Jurisdiction

FINANCE Sectorial Ácárya Jurisdiction and Logistic Operation

The Sectorial Farm Secretary is Ác. Avt.

Has been posted in Manila Sector on

His main Office is located in

Address

Contact

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