8/31/2017 NATIONAL

HUMAN RIGHT
ORGANISATION
MANNUAL BOOK

Pawan Ojha Advocate-9534129333, Organization

Legal Support Team
NHRO are organized institutions that not only deliver services but also manage
staff personnel, oversee administration and maintain cash funds. As recipients
of grants from various channels and project holders of welfare activities, they are
required to uphold principles of accountability and transparency. One of the strong
indicators of these principles is keeping policies and manuals in place, based on
which the day-to-day operations of the organization are to be carried out. Even
donors ensure that their grant recipients have such systems in place prior to
providing funding support to them. Many small organizations fail to keep up-to-
date operational procedures either due to lack of awareness about such things or
because they do not have skills to develop and maintain them.

In this regard, we have come up with samples of management and administrative

policies for NHRO, which can be freely referred to for developing some of their
own. NHRO are advised not to copy the material presented here as it is, but rather
use it as a reference and improvise it further for producing effective and tailor-
made policies suitable to their local environments. The policies presented here are
standard procedures and they have been uploaded here for reference only. By no
means, they are complete or perfect and NHRO are recommended to use the
material as a suggestion, rather than as a rule.

1. General Personnel Policy (also Human Resource Policy)

(1). Purpose and Categories of Personnel…..

(2). Volunteers and Personnel Recruitment…..
(3). Appointment Letter and Staff Orientation at the NHRO…..
(4). Employee Salary Benefits in NHRO…..
(5). Travel Rules & Regulations at NHRO…..
(6). Holidays and Leave in NHRO…..
(7). Employee Termination Rules in NHRO…..
(8). Conflict Management Policy in NHRO…..
(9). Settling Grievance Policy in NHRO…..
(10). Peformance Evaluation System Policy for NHRO…..
(11). Policy for Annual Performance Evaluation at NHRO

2. Communications Policy
3. Computer Policy
4. Procurement Policy
5. Fixed Assets Policy
6. Finance Policy

@ Pawan 1.1 Purpose

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The purpose of the Personnel Policy is to set down the policies, conditions, rights
and obligations of NHROemployees subject to their performing of the duties and
responsibilities in their respective job descriptions.

From the time of hiring, each employee will have access to this policy, so that
he/she can adhere to it with full knowledge and information.

The policies described below may at any time be subject to modification if the
Board of Members of NHRO deems it necessary. In such cases, employees will
be fully informed of the changes made.

1.2 Categories of Personnel

All personnel working for NHRO are classified into following types

1.2.1 Employees

Employees designate salaried individuals who, after a probationary period, are

given oNHROing assignments, either part-time or full-time, and are paid on
monthly basis. They will be contracted on long-term basis subject to periodic
evaluations and performance assessments. They will have the responsibility
towards the day to day functioning and/or in any one of more
oNHROing/prospective projects of the organization.

All the employees of the organization are classified into categories. These
categories are as follows:

1.ManagementCategory:
a.ExecutiveDirector
2.ProfessionalCategory:
a.ProgramOfficer
b.Researcher
c.FinanceOfficer
3.SupportCategory:
a.AdministrativeAssistant
b. Office Boy

1.2.2 Consultants

Consultants are professional experts hired by NHRO on short-term basis only for
the completion of specific tasks and assignments related to NHRO or one or more
of its projects. Separate and limited contracts, defining their job description,
timeline, deliverables, reporting procedures and payment details will be issued to

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consultants. They will be paid on daily/monthly/weekly basis depending upon the
nature of their assignment. They will not be considered as full-time or part-time
employees of the organization.

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1.2.3 Volunteers
Volunteers are individuals who work at NHRO out of their own choice or have been
deputed at NHRO by other organizations. They will be assigned tasks from time to
time as deemed necessary by NHRO. NHRO will have a limited contract with
volunteers and will not provide any compensation except under special conditions.
They will not be considered as full-time or part-time employees of the organization.

1.3 Personnel Recruitment

NHRO believes in equal employment opportunity to each individual, regardless of

race, color, gender, religion, age, sexual orientation, national or ethnic
origin, disability, marital status, veteran status, or any other occupationally
irrelevant condition. This policy applies to recruitment and advertising; hiring and
job assignment; promotion, demotion and transfer; layoff or termination; rates of
pay and benefits; selection for training; and the provision of any other human
resources service.

1.3.1 Notice of Vacant or New Position

It is the responsibility of the Board of Members to fill vacant positions as well as

new regular positions and new temporary positions of a duration exceeding more
than six months. The Board must make sure that the positions can be filled under
the organizational budget.

For all new positions, a job description shall be established and include the
following elements:

•positionsummary
•descriptionofduties and responsibilities
•conditionsofwork
• qualifications

Notice of a new or vacant position must be approved by the Board before it is

released publicly.

Recruitment for a new or vacant position can be opened to internal and external
competition. For external recruitment, positions in the professional category can

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be advertised publicly through newspapers if they are regular positions, or if there
is a limited tendering process for consultation.

1.3.2 Interview and selection

As a general rule, a selection committee comprising of, at least two members shall
be assembled for filling all positions.

The committee will go through the applications received, retaining those that show
the best qualifications. It will evaluate each candidate’s application with the help of
an evaluation form created beforehand, containing well-defined criteria.

A list of the candidates chosen to be interviewed will be shortlisted by the Selection

Committee. The interviews will serve to make a final choice and also to establish
a database of potential future candidates.

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1.3.3 Appointment Letter

Any personnel employed with NHRO will be issued an appointment letter prior to
his/her employment by NHRO. The appointment letter will officially announce
his/her position within the organization, the place of assignment and the effective
date of employment. The appointment letter will carry annexes, specifying the
employee’s job description, terms of reference, salary and benefits and other
relevant terms of employment (Refer 1.4 Employment).

1.3.4 Probationary Period

A probation period of three months shall apply to all new employees from the date
of hire. Exceptionally, the probation period may be extended to six months. In case,
if a new employee fails to perform in accordance to expectations of NHRO
staff/board, he/she will be given a notice, terminating the contract at the end of the
probationary period.

1.3.5 Staff orientation

All new employees will get an orientation about the organization’s mission and
strategies, its structure and the staff within it, the policies and conditions of
employment, the internal rules and regulations, etc.

1.4 Remuneration

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NHRO believes in attracting and retaining a qualified and effective workforce
through a system of payment that is both appealing and fair. All employees of
NHRO are entitled to a basic salary, depending upon their skills, qualification and
experience. The basic salary will be mentioned in the appointment letter.

1.4.1 Salary Increment

Salary increment will be based upon an employee’s position and performance.

Increment will be provided to employees on annual basis after their performance
evaluation.

Salary increment is calculated on the basis of basic salary of the staff.

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1.4.2 Salary Benefits

(a) Bonus

All employees shall receive an annual bonus equal to one month’s basic salary.
Bonus will be included in the monthly salary payment of the month preceding the
festival.

However, new staff on will not receive any annual bonus until the completion of the
six-month probationary period.

(b) Provident Fund

All regular employees are expected to set aside 10% of monthly pay to his/her
provident fund. NHRO will contribute the same amount on monthly basis. Both the
employee’s and NHRO’s contributions are deposited in a savings account under
the employee’s name. The provident fund can only be withdrawn upon the
employee’s resignation from NHRO.

1.4.3 Compensation against Accident of the staff during Service

In the event that the staff succumbs to an accident while working for NHRO, i.e.
during the office hours or during field trips, he/she is entitled to receive
compensation amounting to a maximum of two-month salary of the individual to
cover the medical expenses.

1.5 Working Days and Hours

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1.5.1 Working Days

NHRO will follow a 6 days a week working schedule from Monday to Friday.
Saturdays and Sundays are considered non-working days for field staffs .

Unless otherwise specified, NHRO will observe the same public holidays as those
prescribed by the Government not exceeding ____ days a year. The Executive
Director will prepare a calendar of public holidays not exceeding _____ calendar
days at the beginning of each fiscal year and circulate it to all staff.

1.5.2 Office Hours

The office shall open from 09.30 am in the morning till 05.30 in the evening. All
employees are expected to complete 8 working hours daily. There will be one hour
lunch-break.

During the winter season, the office hours will be from 10 am to 5 pm.

1.5.3 Overtime

Various factors, such as workloads, operational efficiency, and staffing needs, may
require variations in an employee’s total hours worked each day. In such
circumstances, the employee may have to work beyond the scheduled office
hours.

Under such circumstances, the staff working overtime is entitled to payment for
working overtime and is authorized by its immediate supervisor for the same.
However, no overtime compensation will be provided for staff during field trips. The
overtime rate will be paid on hourly basis and will be calculated on the basis of the
basic salary.

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1.6 Travel
Staff members may be asked to travel away from their usual workplaces on
authorized missions. The policy on payment of travel allowances
adopted NHRO applies to all employees regardless of job category or status. It
also applies to the consultants, when mentioned in their agreement.

After reimbursable expenses are made, the person making an expense claim shall
use the appropriate forms available.

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The expenses will not be reimbursed if proper justifying documents (original
receipts) are not attached except for per diem. Eligible expenses include:

1.6.1 Per diem

All employees and volunteers are provided per diem of _______ (Breakfast _____,
lunch _____and dinner ______) to cover the cost of food for each night spent
outside the city as approved by NHRO.

1.6.2 Accommodation

All employees and volunteers are entitled to claim expenses incurred for
accommodation for official trips outside Kathmandu. Maximum claims for
accommodation shall not exceed ____. Claim for accommodation will be
reimbursed upon submission of bills/receipts.

1.6.3 Mode of Transport

NHRO will pay only surface transport as far as possible, i.e. bus. If any individual
is using personal vehicle for NHRO related work, they can be reimbursed the
actual fuel cost based upon the mileage. Some maintenance will also be awarded
if required. However, the private transport must be shared by more than one NHRO
member or employee.

1.7 Leave and Holidays

1.7.1 Leave

All employees are entitled to the following leave with pay.

(1) Annual Leave

All employees of NHRO are entitled to 18 working days off as paid leave per year.
This leave is accrued monthly at the rate of 1.5 working days.

(2) Sick Leave

Employees are entitled to 12 working days of sick leave with pay per calendar year.
Sick leave is accumulated at the rate of 1 day for every full month worked.

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Employees have to present a medial certificate to substantiate claims for sick leave
with pay for absences exceeding two successive days.

(3) Maternity Leave

All female employees are entitled to maternity leave of 90 calendar days twice.

(4) Paternity Leave

Male employees are entitled to paternity leave of 11 calendar days twice.

(5) Mourning Leave

In case of death of a parent, child or spouse, employees be given mourning leave

of 15 days each.

(6) Emergency Leave

Emergency leave is granted to employees for any serious illness of a parent, child
or spouse and/or persona1 emergencies. A total of 7 days per year can be allowed
for emergency leave.

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1.7.2 Holidays
All employees are entitled to 16 days of paid leave due to public holidays. Public
holidays are specified in advance by the Executive Director in consultation with
staff members.

Employees who are required to work on public holidays are entitled to

compensatory day off. NHRO will keep records of number of hours/days worked
by its employees on public holidays. Request for compensatory leave shall be
substantiated with this record and approved in advance by the Executive Director.

In the event that a public holiday is declared by the Government on a certain day
without prior notice, NHRO staff cannot consider it a holiday until and unless
notified by the Executive Director or the Board. All public holidays are subject to
the approval of the Executive Director or the Board.

1.7.3 Leave without Pay

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(1) Leave without pay may be granted to employees up to 36 days per year.
(2) Leave without pay that is taken for a month or more shall not be counted as
time worked, hence no benefits shall accrue to the employees during such period.
(3) Employees on probation are not entitled to leave with or without pay but can
accrue such leave during the probationary period.
(4) Leave without pay is applicable when the employee has exhausted all his
annual and sick leave.

1.7.4 Absences

(1) An employee who is unable to come to the office is required to notify the office
of the reason for his/her absence.

(2) Unauthorized absences are grounds for disciplinary action. The following
procedures shall apply:

i. An employee that has been absent for two consecutive working days without
notice nor explanation shall be personally sought of by the Executive Director.
He/she shall be asked to put in writing the reason(s) for his/her absence.
ii. If, after seven consecutive days of absence, the employee continues to fail to
give any explanation of the cause of his/her absence, the employee will be
considered to have resigned from his/her position.
iii. iii. In cases where the employee cannot give any satisfactory answer to the
cause of his/her absences, in the judgment of the Executive Director, the employee
may be subjected to disciplinary action.

1.8 Staff Movement

(1) Assignments and Transfers

According to project needs, any employee can be transferred temporarily or

permanently to any location where NHRO conducts its activities. The transfer may
be the result of a promotion, a change in role due to service requirements or other
reasons.

A permanent transfer to a new place of work that includes a new job mandate shall
result in a contract renewal. In addition, the employee concerned shall be notified
one month in advance of his change in situation.

(2) Interim positions and promotions

An employee may be called on to temporarily perform a job in a higher category.

That does not automatically give him the right to the salary and benefits of this

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position. However, after a reasonable amount of time, NHRO shall reclassify the
employee in the category of the new job or return him/her to his/her former duties.

An employee who receives a promotion can be required to complete a trial period

in the new position. If the trial period is successfully concluded, the employee will
be reclassified in the new job category and at a salary scale level higher than his
former position. If the trial period is not satisfactorily completed, the employee will
be reinstated in a position at the same level as his former position.

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Employee Termination Rules in NHRO

1.9 Prohibition on Outside Employment and/or Engagement
Full-time regular employees of NHRO are not allowed to undertake outside
employment.

1.10 Termination of Employment

1.10.1 Conditions for Termination

Employees shall lose their jobs under any of the following conditions:

(1) Voluntary Resignation

i. Personnel wishing to resign from post may do so by giving a resignation letter to

the Executive Director stating the reasons for resignation and effective date of the
same. One month of prior notice is required for such resignations.
ii. The date in which the resignation letter is received at the NHRO office is
considered the date on which notice of resignation is given. Failure to provide
sufficient notice may be ground for forfeiture of all accrued employee benefits.

(2) Redundancy of the Position

Depending on the nature and volume of its operation, NHRO may declare certain
positions redundant. Persons occupying those positions will therefore be forced to
be separated from NHRO with proper notice. While doing so, NHRO will give at
least 2 months notice in advance.

(3) Termination with Cause Grounds for employee termination are the
following:

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i. continuing inefficiency and gross negligence of duty.
ii.fund embezzlement.
iii. Misuse of office equipment, and other properties.
iv. repeated unauthorized absences and leaves
v. intoxication while on official business or within office premises
vi. unauthorized disclosure of official information

(4) Retirement

When an employee reaches the age of retirement, according to the country’s law,
the employment relationship comes to an end. NHRO shall notify the employee by
letter, stating the date the employment terminates.

The retiring employee shall receive salary up the date of departure and other
allowances such as the Provident Fund, as specified in his/her agreement.

(5) Death

When an employee dies, his/her salary and benefits will automatically be paid to
his/her legal heirs.

1.10.2 Procedures for Termination and/or Disciplinary Action

i. NHRO will ask the employee for a written explanation on the offense deemed
committed by the employee concerned, identifying the charges against him/her
and the particulars of the facts relied upon to support it.
ii. The employee is given 3 working days to submit his/her explanations.
iii. Based on the written explanations submitted by the employee concerned and
the strength of evidence presented, NHRO may choose to decide on the charges
or pursue further investigation of the case.
iv. NHRO can, shall it feel necessary to, suspend the employee in question from
duty during the period of investigation subject to the following conditions:
a. should the employee be in a position to tamper with the evidence against
him/her.
b. should the employee’s continuing presence in the organization be deemed
inimical to the interest of the organization.
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1.11 Conflict Management

1.11.1 Conflict Resolution

Whenever a dispute arises among the NHRO staff, it shall be resolved in a

constructive manner, i.e. the solutions shall lead to positive changes. Employees

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who feel unfairly treated or who have complaints about a situation or about working
conditions should notify the Executive Director immediately.

1.11.2 Staff Behavior

NHRO expects its employees to adopt attitudes and behavior that maintain the
good image of the organization. NHRO employees shall display an exemplary level
of professionalism and integrity.

Furthermore, besides the usual rules every good employee needs to follow
(respect, courtesy, punctuality), there are particular procedures of conduct for
members of the organization which must be observed.

(1) Political Activities

Since NHRO is a non-political organization, employees shall not participate in

activities of a purely political nature on work premises or during working hours. It
is also prohibited to use the organization’s materials for these purposes.

(2) Discrimination and Harassment

Under the principles established by NHRO, no employee, man or woman, has the
right to put pressure on another, make intimate advances, give preferential
treatment or show sexual favoritism at work.

(3) Conflict of Interest

To avoid putting themselves in a conflict of interest with the objectives and

operations pursued by NHRO, employees shall respect the following guidelines:

• It is prohibited to use NHRO property for illegal or unauthorized purposes.

• It is prohibited for any NHRO employee having confidential information to disclose

it without express authorization beforehand.

• Employees cannot at any time accept a job from another employer if this job
interferes with their work schedule and their duties and responsibilities.

• Employees shall avoid putting themselves in situations where they may gain profit
or derive direct or indirect interest by influencing a contract award.

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• Employees cannot solicit or accept tips, gifts, favors or other forms of gratuities
for services rendered or required to be rendered in performing their duties within
the organization.

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1.11.3 Grievances
If an employee feels unfairly treated by circumstances that infringe on his/her rights
or change his/her employment conditions, he/she should discuss the situation with
his/her immediate supervisor. If, after the matter has been discussed and
corrective measures taken, an employee feels it has not been satisfactorily settled,
he/she can submit a grievance to the Executive Director, who will discuss and
provide appropriate solution. All grievances shall be handled internally because
there is no recourse to external mediation or arbitration.

1.12 Performance Evaluation and Skill Training

1.12.1 Performance Evaluation System

The performance evaluation system is a means by which NHRO can increase its
efficiency and that of its employees. The purpose of the system is for
the organization to fulfill its mission by attaining its objectives and for employees
to grow and feel fulfilled through proactive performance supervision.

The system enables, among other things, the harmonizing of individual employee
objectives with those of the organization, the measuring of employee potential and
work performance and the support of employee improvement by working with them
on their development needs.

The annual performance evaluation seeks specifically to:

• promote communication between employees and their supervisors;

• clarify expectations concerning objectives and performance;
• improve employee performance through on-going monitoring and feedback;
• assess and reward individual performance;
• allow employees to express their career aspirations.

The performance evaluation focuses on the individual employee in relation to the

tasks and responsibilities assigned to him. It is not necessarily a comparison of
one employee’s performance with that of another. Thus, the employee’s work
performance is to be assessed in relation to absolute procedures, that is, according
to the evaluator’s performance criteria and not according to relative procedures.

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The performance evaluation also allows NHRO to assess the quality of human
resources in their department or organization, note important information
concerning expectations and needs and clarify decisions concerning transfers or
work assignments.

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1.12.2 Elements of the Performance Evaluation System

A performance evaluation system is composed of three main stages that

generally take place over a period of a year:

(1) Performance planning

The performance planning stage enables employees and supervisors to come to

an agreement on what is to be accomplished during the year and how it will be
carried out. The following procedures and tools are used to facilitate this stage:

a) Job description or list of duties

Each employee must have an up-to-date job description defining the purpose of
the work and the responsibilities involved.

b) Setting of objectives

For each key responsibility associated with a position, at least one objective
should be established for a particular period. The objectives should be clear and
quantifiable, and the assessment criteria should be mentioned.

c) Individual action plan

The individual action plan is a planning tool used to specify the steps to be taken
to achieve the objectives set beforehand. The action plan should be prepared
jointly with the immediate supervisor. It may also involve new initiatives
facilitating improved productivity or personal capacity development.

(2) Performance Monitoring and Management

Staff performance and productivity should be managed on an on-going basis

throughout the year. The following elements, among others, are involved:

a) On-going Supervision

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This means taking the time to observe, examine sources of difficulty and seek
solutions.

b) Regular Communication

This involves regular exchanges so that employees can receive feedback about
their performance and receive the necessary supervision.

c) Periodic Evaluation

This involves formal, scheduled meetings between an employee and supervisor

to discuss activities carried out, end results and the adjustment of the action plan
and objectives, if necessary. A minimum of one meeting every six months is
suggested to ensure satisfactory results.

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(3) Annual Performance Evaluation

The annual performance evaluation is the analysis, based on documentation from
previous stages of the process, of an employee’s work record. The evaluation
addresses two fundamental questions. The first relates to the past and involves
verifying what was accomplished qualitatively and quantitatively during the year.
The second relates to the future and consists of identifying means to be considered
to ensure the employee continues to grow and develop.

The performance evaluation form should include all the sections needed for the
evaluation. This includes a section relating to performance evaluation in relation to
the objectives established at the outset and in relation to the responsibilities of the
position, a section that specifies or targets what is needed for the employee’s
development and finally a section allowing the employee and the evaluator to
express their comments and affix their respective signatures. The form should also
include a performance level classification and a definition of each of these levels.

The annual performance evaluation does not have any financial impact on salaries.
It is first and foremost a tool to evaluate the employee’s performance and take
remedial action if necessary.

1.12.3 Skill Training and Professional Development

Depending on available funds, NHRO should foster the professional development

of its employees in order to be as effective as possible in its activities. The training
programs chosen should address the actual needs identified and expressed during
performance evaluation sessions.
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1.13 Bond

As part of the staff and organizational development activities, NHRO may at times
decide to send a designated staff person for trainings and/or further studies both
abroad as well as at local level. NHRO will bear the full/partial costs of the
trainings/studies for this. However, the designated staff sponsored for the
trainings/studies is required to sign a bond with NHRO that requires him/her to
complete the full tenure of working with the organization.

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2. Communications Policy for NHRO Office Management

2.1. Purpose

The purpose of this policy is to control and reduce the communication cost in an
effective way. Telephones are the most convenient and fastest mode of
communication but for long distance communication, they are expensive.
There are other modes for fast communication such as courier, fax or e-mail. And
out of these, e-mail is fast and more affordable. NHRO prefers to use e-mail for
out of station correspondence to reduce the communication costs. Telephones can
be used for local calls and in emergency for national & international long distance
calls.

Internet service at the office can be used to download and send email and to
conduct work-related research.

2.2 Guidelines

NHRO provides the following guidelines to its staff to control telephone use.

a. Telephone users are requested to keep their conversations short in order to

keep the cost down and to keep the lines open for other people in and outside the
office that need to use the telephone.
b. In general, employees should avoid using phones for non-official calls and are
encouraged to use STD/ISD facilities available outside the office. However, the
non-official calls will be billed to employees at prevailing rates. To keep track of
such calls, a record sheet is provided to each employee working in the office in
order to make it easier to remember to record the long distance calls (STD / ISD).
All long distance calls should be recorded on this sheet along with all required
information and submit to the finance division each month.
c. In order to minimize communication costs as much as possible, email should be
used rather than fax or direct long distance calls.
d. Copies of all in-coming and out-going official communications (fax, letters sent
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or received) should be filed. The employees sending / receiving important e-mails
should be responsible to print and file such e-mails. A copy should go in the central
file system.
e. Efforts should also be made to keep fax messages short and to send long
documents by fax only in urgent cases.
f. Regarding international phone calls, the need for the official call should be
discussed verbally with the Executive Director, unless exceptional circumstances
make this impractical.

More NHRO Operational Policies:

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3. Computer Policy for NHRO Office Management

3.1 Purpose
NHRO seeks to effectively manage the computer system for guiding the use,
maintenance and security of the computer equipment. Employees are responsible
for ensuring that the procedures and policies suggested here are followed.

3.2 Use

Using computer equipment requires particular care because of its fragility and high
cost. Access to the equipment should thus be strictly reserved to NHRO
employees only. Those employees who are unable to handle commonly-used
software will be given an orientation by the senior staff on request. At least one
NHRO employee will be trained in handling minor maintenance of computers and
accessories at the office.

3.3 Security

a. In order to safeguard the computers against viruses, the external drives

(CDs/DVDs/floppies/pen drives) that are at NHRO office are only to be used. In
the same way, no external drive from any source other than from sealed packets
shall be used in the computers, unless it is first scanned with a latest anti-virus
software.
b. In order to safeguard computers from viruses, antivirus software has been
installed in the computers. The virus list for this program should be updated on a
regular basis. It is the duty of the employee who has been assigned a computer to
update the virus list on her / his computer.
c. There should be at least two backups of all important documents. One copy
should be on the hard disk of the computer assigned to the concerned employee
and a second copy on a CD/DVD kept in the office.

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d. The computers of the NHRO should normally be used by its employees.
Consultants and volunteers should seek prior permission of NHRO employee
before using his/her computer in the office

3.4 Saving documents in the Computers

In order to streamline the procedure to save documents in the computers and to

make it easier for people to find documents and make back-ups of important
documents, each employee should have a c:/my documents directory in his/her
computer. This directory should be broken down into sub-directories to facilitate
retrieval of important documents. Each employee will include a copy of all their
important documents to be backed up on a directory entitled backup.

3.5 Back-ups of Documents

In order to safeguard important documents and other work done by the staff, the
back-up directory of the employee shall be backed up on CD/DVD once every
week (every Friday) and the CD/DVD stored by the employee.

More NHRO Operational Policies:

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4. Procurement Policy for NHRO

4.1 Purpose
The purchase of goods and services is necessary for the smooth operation of
the organization. The aim of the internal control system for the supplying of goods
and services is to ensure orders are handled by individuals having skills in
evaluating what purchases are required from suppliers offering the best deals, to
ensure purchases made do not exceed the budget provided and to ensure
purchased goods and services conform with the quantity and price specified in the
order.

4.2 Methodology

NHRO shall follow certain methods in purchasing goods, equipment and services
required for the needs of the organization or its projects. Use of competitive bidding
shall be a priority practice. The first criterion in choosing a supplier shall be the
lowest bid. However, if a supplier does not provide the required level of service or
an adequate guarantee, then other criteria shall also be considered. NHRO shall
specify in the purchase file the reasons the lowest bid was not chosen.

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• For purchases under ________, a price survey by telephone of two suppliers will
be sufficient for determining the supplier.
• For purchases above ________, a quotation/invoice shall be obtained from three
local suppliers.
• Purchases from a sole source shall be explained in the purchase file.

The purchase file shall contain all the documents pertaining to each transaction,
i.e. the purchase requisition, quotations, contact information of suppliers purchase
contracts or orders, invoices, delivery slips and any other pertinent documents.

4.3 Purchases

Employees making purchases as part of the project activity or organizational work

shall follow these mechanisms:

a. Requisition form – the employee requesting a purchase fills this form, has it
approved by the Executive Director and sends it to finance division.
b. Order form – the finance division issues the order form, after it is signed by the
Executive Director. The concerned employee or the finance division will make the
purchase successful on the basis of the order form.
c. Delivery slip – After the purchase has been made, a delivery slip will be issued
by the finance division for the supplier, who will sign it and give it back to the
finance division.

More NHRO Operational Policies:

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5. Fixed Assets Policy for NHRO

5.1 Purpose
To carry out its activities, NHRO needs material resources. The quality of these
resources is dependent upon how they are used. Material resources are in large
part durable goods, which need to be well-managed to be maintained in good
condition. These goods include stationary, tables, chairs, shelves, computers and
related accessories. The Fixed Assets Policy will aim for:

• precise identification of goods that are part of the asset base;

• sensible use of goods;
• periodic taking of physical inventory;
• effective maintenance of goods;
• replenishment of goods when required.

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5.2 Procedures

At NHRO, the management of material resources is the responsibility of the

__________ staff. The procedures involved in managing these resources are:

• receiving and recording goods;

• using goods properly;
• maintaining goods;
• taking inventory of goods;
• disposing of goods.

Material resources are managed by means of records or files.

5.3 Asset inventory

The purpose of the inventory is the physical monitoring of the items belonging to a
project. The inventory makes it possible to detect differences between information
about goods in the records and the actual state of goods.

Inventory is usually done once a year and is the responsibility of the finance
division.

5.4 Procedures

The inventory procedure is composed of the following steps:

a. Creation of record cards on which is found:

• type of item
• description of item
• identification code
• service user or name of manager
• assigned location
• previous placement of item
• notes on condition of item
• record updates
• minutes of physical inventory

b. Final removal of an item

c. Replacement of an item

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d. List of annual needs

5.5 Removal of items

The inventory procedure described above permits the identification of dilapidated

or defective goods whose presence in office presents more inconveniences than
advantages, for various reasons:

• steep rise in operating or maintenance expenses;

• excessive cost of repair;
• any other objective reason.

The Executive Director should give the authorization to take out of service, transfer
or dispose of any items, and that should be noted in the book of assets.

@ Pawan

NHRO Finance Policy

6.1 Fund Receipt

6.1.1 Sources of Funds

NHRO receives funds from the following sources:

i. Dollar supported project fund.

ii. Membership fees.
iii. Income from short term professional services and consultancy assignments
undertaken by NHRO.
iv. Grants Donations received from philanthropic organizations and individuals.

6.1.2 NHRO Core Fund

The following are identified as NHRO’s core programme:

A. NHRO’s administrative expenses (house rent, utilities, administrative officer,

peon).
B. NHRO’s Ashreya Shivir Shelter.
C. NHRO’s befriending service “Sumitra”.

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Any programme coming to NHRO must allocate some funds to support this core
programme.

6.1.3 Signatories to Cheque Books

The President of NHRO, its Treasurer and one other office bearer will be signatory
to NHRO’s cheques. Money can be released by the signatures of two signatories.
However, any cheque of more than ________ will require the signature of the
President.

6.1.4 Types of Accounts

The following three types of accounts will be maintained by NHRO:

(1) Central Account

All income accrued to NHRO will be deposited in the Central Account. The
President, Secretary General and Treasurer are authorized to operate the bank
account. Two signatures of either of these officials will be required for fund
disbursement.

(2) Savings Account

NHRO will keep fixed deposit savings account for its trust fund.

(3) Petty Cash Fund

A petty cash fund of _______ is kept to cover payments not exceeding _____. The
Accountant/Office Administrator will handle this account and is to be liquidated
every two weeks.

The President and/or Treasurer will ensure proper handling of petty cash fund
through surprise checks from time to time.

@ Pawan

NHRO Finance Policy

6.1 Fund Receipt

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6.1.1 Sources of Funds

NHRO receives funds from the following sources:

i. Dollar supported project fund.

ii. Membership fees.
iii. Income from short term professional services and consultancy assignments
undertaken by NHRO.
iv. Grants Donations received from philanthropic organizations and individuals.

6.1.2 NHRO Core Fund

The following are identified as NHRO’s core programme:

A. NHRO’s administrative expenses (house rent, utilities, administrative officer,

peon).
B. NHRO’s Ashreya Shivir Shelter.
C. NHRO’s befriending service “Sumitra”.

Any programme coming to NHRO must allocate some funds to support this core
programme.

6.1.3 Signatories to Cheque Books

The President of NHRO, its Treasurer and one other office bearer will be signatory
to NHRO’s cheques. Money can be released by the signatures of two signatories.
However, any cheque of more than ________ will require the signature of the
President.

6.1.4 Types of Accounts

The following three types of accounts will be maintained by NHRO:

(1) Central Account

All income accrued to NHRO will be deposited in the Central Account. The
President, Secretary General and Treasurer are authorized to operate the bank
account. Two signatures of either of these officials will be required for fund
disbursement.

(2) Savings Account

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NHRO will keep fixed deposit savings account for its trust fund.

(3) Petty Cash Fund

A petty cash fund of _______ is kept to cover payments not exceeding _____. The
Accountant/Office Administrator will handle this account and is to be liquidated
every two weeks.

The President and/or Treasurer will ensure proper handling of petty cash fund
through surprise checks from time to time.

@ Pawan

Payment Procedures
6.2 Fund Disbursement

All payments be made either by cheque or cash.

6.2.1 Payment by Cheque

(1) Payment for Purchases

Payment against purchases exceeding ______ shall be made by cheque.

(2) Payment for Services Rendered

a. Payments for Staff Salaries

i . Payment Calendar

Staff salaries are paid within seven days following the completion of the month.
Individual cheques are to be issued to the employee concerned.

ii. Staff payroll

Staff payroll (salary sheet) is prepared by the Accountant as the basis of payment.
The staff payroll contains information on the employees’ basic salary for the month,
allowances if any, deductions and net salary payable. The staff payroll is checked

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by the Treasurer and/or Secretary General and approved for payment by the
Executive Director.

iii. Advance Pay

NHRO’s employees may take advance payment of up to 3 months (after

completion of 3 months probation), if urgently required. The advance must be
returned/reimbursed before the end of that particular fiscal year.

For travel purposes, NHRO employees shall be given cash advances for expenses
covered on official trips. Request for cash advances is prepared by the personnel
concerned, recommended by the Treasurer or General Secretary and is approved
by the President. All cash advances for travel are to be liquidated within a week
following the completion of the trip.

iv. Tax Deduction at Source

NHRO will deduct tax at source where applicable as per Government rules.

b. Payment for Contractual Services

Payment for contractual services is done through cheque disbursements. The

schedule of payment depends on the Terms of Reference (TOR) agreed upon by
the personnel concerned and NHRO. Payments are covered by a Request for
Payment Form prepared by the accountant and approved by the Executive
Director.

More NHRO Operational Policies:

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Policy for Book Keeping and Record Maintenance

in NHRO
6.2.2 Procedures for Fund Disbursements

• All requests for payments are to be made using the appropriate forms.
• Requests for payments are to be properly substantiated with bills/receipts and
essential documents.

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• Requests for payments are prepared by accountant and submitted to Executive
Director for checking and approval.

6.3 Book Keeping and Recording

6.3.1 Book Keeping

The recording system of NHRO’s financial transactions allows to monitor bank

balances, status of funds receipts and expenditures, and a comparative
statement of budget vs. actual expenditure on a regular basis.

NHRO will maintain records of fixed assets, petty cash disbursements, supplies,
inventory, the use and maintenance of office equipment.

6.3.2 Accounting

The following sets of financial reports will be prepared by NHRO:

A. Quarterly financial reports will be prepared for review by each individual

project manager of NHRO’s specific projects as well as of its core activities. This
quarterly report will be reviewed by the Board of NHRO. Financial reports to
donors will be submitted as prescribed in the agreement between donors and
NHRO.

B. Annual Balance Sheet and Statement of Income and Expenditures will

prepared for each fiscal year.

6.4 Auditing

Books of Accounts of NHRO shall be audited annually by an independent auditor

appointed by the General Assembly.

NHRO may hire internal auditor in order to streamline its accounting systems and
procedures.

- Txs for reading

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