INSTITUTE OF PUBLIC ADMINISTRATION AND MANAGEMENT (IPAM)

University of Sierra Leone (USL)

Lecture Note on Civil Society organisation (CSO)
Semester: First Semester
Lecturer: Mr. Anthony Swaray Domawa
Year: Three (3)

LECTURE NOTES
DEFINITIONS AND CONCEPTS OF CSOS/NGOS/NON-STATE ACTORS
CS0s/NGOs/NON-STATE ACTORs are voluntary organizations that work with and on
behalf of mostly grassroots people in developing countries to bring relief and development.
They also represent specific local and international interest groups with concerns as diverse
as providing emergency relief, child health promotion, advancement of women’s rights,
poverty alleviation, environmental protection, management and advocacy, agricultural
activities, micro-credit operation, plus a host of other activities like road construction,
housing, hospitals, schools as well as universities, conduction of research etc.

They could further be regarded as people who come together outside the structures of
government in an institutionalized and regularized manner with a view of trying to achieve
social, economic or political change. They may try to affect change just among their own
members mobilizing citizens or member organizations to act in collective interests but will
often try to influence public opinion, the media, elected officials and bureaucrats with a view
to influence the actions of government.

THE POLITICAL AND SOCIO –ECONOMIC CONTEXTS OF AFRICA IN THE

1960’S -1980’S
MAJOR POLITICAL CHALLENGES IN AFRICA
After gaining their independence in the 1960’s, most African countries supported the idea of
a strong central government to secure social justice for all citizens.
Highly centralized and omnipotent states emerged as opposed to democratic system of
government. These emerging regimes and central government considered as facilitators of
wealth distribution, whereas the people sense of duty, responsibility and identity remained
centered on local links, ethnic groups, the village and family.
Politically, the one –party system was portrayed as an embodiment of the people’s will and a
way of uniting the new Nation. One –party system exercised all the power of national
sovereignty, and constitutions were revised to give the single parties and their leader’s
absolute power over the government, the legislature and the Judiciary.

This symbolized the end of the embryonic state and the beginning of the party state.
The marginalization of certain sectors of the population for various reasons, including ethnic
and religious, obliged many national armies or civil groups to seize power by force.
Since 1963, when the first military coup took place in Africa, the continent has found itself in
a cycle of political, social and ethnic conflict. Most of the military regimes adopted new
constitution in order to guarantee freedom and human rights to all citizens. However, history
repeats itself and soon after, it was realized that the political and socio-economic conditions
of Africa under the reform had not improved.
In the 1990’s, domestic and external forces started to exert considerable pressure on Africa
governments to liberalized the political space. Consequently, democratic systems were
introduced, which embarked up on ambitious programmes of political, institutional and
economic reforms. The objectives of those reforms involved changing the role of
government, creating an enabling environment for the private sector and civil society to
flourish, and establishing an effective civil service by increasing its competence, efficiency,
fairness and quality of services.
Tremendous progress has been made, although in many Africa Countries, the situation has
remained the same or has worsened, due to a combination of internal and external factors. For
the most part, government in Africa has been marked by authoritarianism and state
privatization for the benefit of the ruling elite, resulting in institutional disintegration rather
than development.
THE MAJOR SOCIO-ECONOMIC POLICIES AND PROGRAMMES SINCE 1980’S
The 1980’s in particular, was considered a ‘’ lost decade’’ for Africa owing to the multiple
crises experienced within the region. The combination of the rise in oil prices and the fall in
the prices of primary products had a devastating effect on the performance of Africa
economics. This was due to the region dependence on a limited number of primary products.
Other factors that contributed to the crises in the 1980’s included the burden of growing
external debt, rapid population increases, continuous drought accompanied by desertification,
and devastating internal conflicts.

The structural adjustment reforms initiated in the mid- 1980’s with the support and leadership
of the Bretton Woods institutions introduced a new public administration paradigm and
macroeconomic policy framework.
These reforms sought to reduce the role of the state in production as well as service delivery
and encouraged the deregulation of public enterprises. The emphasis was on maintaining
macroeconomic stability, lowering inflation, cutting deficit spending, and reducing the scope
and cost of government. The reforms related to the functioning and role of the state in the
economic sphere have, in many instances, produced positive results. The privatization of
public enterprises producing goods and service has reduced the role of the state in areas
where the private sector has often proved to be a better alternative. However, notwithstanding
the positive results derived from these reforms, the retreat of the state in social area s (health,
education and housing) was detrimental for many Africa countries.
The lessons of experience have shown some limitation of the structural adjustment
programmes (SAPs) of the 1980’s and have pointed to the need to broaden the agenda of
public sector reforms. It’s now being acknowledged that states with weak institutions are not
well prepared to face the adjustment cost of globalization.
Without complementarities between domestic strategies for countries risk exposing
themselves to the kind of protracted crises from which some have just begun to recover.

Globalization requires reinforcing state capacity. Opening up the economy brings costs and
benefits. The more effective a state, the more it can focus on compensation losses caused by
globalization and technical change. The absence of an effective public administration can
often constrain states from participating in the global economy. It is now recognized that the
reform of the public service will give them a better opportunity to benefit from globalization.
A number of programmes have been adopted since the 1980’s in an effort to establish the
foundations for structural transformation and integration of African countries in to the global
economy.
I n 1980’s African leaders adopted the Lagos plan of Action for the Economic Development
of Africa. The plan was designed to restructure the economy based on the twin principles of
national and collective self- reliance and Self Sustainable Development. In 1985, the Africa
priority programme for Economic Recovery (APPER) was adopted. This programme set out
measures for reducing the external debts burden and preparing a common platform for action
at sub regional, regional and international levels. The United Nation plan of Action for Africa
Economic Recovery and Development (UN-PAAERD) was adopted by the United Nations at
its thirteenth session. The programme covered the period 1986-1990, and aimed at
establishing the foundations for structural transformation, increased productivity and general
improvement of Africa economies.
The United Nations New Agenda for the Development of Africa in the 1990’s (UN-
NADAF) was adopted in 1991. This programme was aimed mainly at the transformation.
Integration and diversification of Africa economies so as to strengthen them as partners in
world trade and to reduce their vulnerability to external shocks. Also, recognizing that
greater access to world markets would allow Africa to exploit their comparative advantage
while opening up to international competition, Africa states participated in the Uruguay
Round of multilateral Trade Negotiations in Morocco in 1994.

The United Nations Millennium Declaration was adopted in 2000. The Declaration embodies
goals aimed at improving livelihoods. The Millennium Development Goals (MDGs) consist
of a number of targets including the eradication of extreme poverty and hunger, achieving
universal primary education and the development of a global partnership for Africa’s
Development (NEPAD) the latest in the series of development framework for Africa –
include good governance, economic growth, mobilization of resource, global partnerships,
environmental protection, poverty reduction, and investment in human recourses.
As stated above, many efforts have been made since the early 1980’s to gear Africa towards
a path of sustainable development and economic growth. However, annual economic growth
for the decade of the 1990’s averaged only 2.1 percent needed to reduce the number of
Africans living below the poverty line by 2015.

Although NEPAD and the MDGs were at the very beginning of their implementation, the
attainment of these objectives becomes questionable unless drastic and concrete decisions are
taken at national, sub regional, regional and international levels to pave the way towards
sustainable development and economic growth.
FORMS OF CSOs, NGOs/NON-STATE ACTORs
NGOs exist mostly in the form of professional bodies, usually from the field of science
among others, like the Health for All Coalition, Sierra Leone Teacher’s Union (SLTU),
Health Alert, Centre for Accountability and Rule of Law (CARL), Campaign for Good
Governance(CGG), International Council for Scientific Union (ICSU), others for education
and conduction of research such as the World Research Institute (WRI) the International
Institute For Environmental Development (IIED); Foundation For International Law and
Development (FIELD) ; others prefer to campaign and advocate for particular courses of
action like the friends of the earth (FOE) Greenpeace International, the worldwide fund for
nature (WWF).
There are a host of others that exist as religious groups, charities like OXFAM, Private
Foundation Federations of Medical Practitioners like Medicine San Frontiers (MFS), Bar
Association, Economists from the bulk of the group plus in recent times several other interest
especially human rights issues.
CATEGORIES OF NGOS
Two broad categories/classifications have been used for NGOs.
- Those concerned with and involved in the designing and implementation of projects often
referred to as operational NGOs.
- Those that defend or advocate specific case often called advocacy NGOs.

The most common advocacy methods are networking which strengthens NGOs and enables
those without sufficient funds and other resources to share their voices and exert strength in
members. Another method of advocacy NGOs use is through conferences where groups share
their voices, make contacts and influence public policy.
- The third method is through protests which in recent times accompany most global
 summits and conferences where protester call for attention to be drawn to
undemocratic decision-making processes especially global justice for the world’s poor
and environmental issues.
However, most NGOs undertake both operational and advocacy together especially
on environmental matters which require multi-facets approaches.

Most NGOs work on grass root projects on development, whilst others on relief especially in
strong or displaced populations hit by famine or activities are OXFAM, Save the Children,
CARE, World Vision and Amnesty International.

In recent times NGOs accompany global summits and conferences where protesters call for
attention to be drawn to undemocratic decision-making processes especially global justice for
the world’s poor and environmental issues.
However, most NGOs undertake both operational and advocacy together especially on
environmental matters which require multi-facets approaches.

Values NGOs are known for

- Largely motivated by humanitarian ideas and are mostly being less constrained by
imperatives of politics. This gives them greater freedom and flexibility to work much
more effectively with the very people that they are trying to assist at local level unlike
bilateral and multilateral aid program.
- Tend to be experienced as their members or mission of purpose is mostly derived from
association of experts. As a result they are able to avoid suspicion and cynical
thinking on the point of mostly poor people that they serve and that such service is
sincere and sustainable.
- Internationally, NGOs are listened to in developed countries i.e. countries mostly in the
Northern hemisphere where the majority of NGOs have their origin and support. The
Rio Summit of 1992 on environment and development, the 1994 population summit
in Cairo and the 1995. Copenhagen Summit including the Beijing Women’s
Conference is just some of the notable examples.
- NGOs work best in democratic settings –influence international public opinion
- No sooner a treaty is signed NGOs ensure compliance is adhered to through campaign
and mass awareness.
- Act as watch dogs – pressure group behind the back of the government to uphold
important provisions/treaty/accord agreement (bottom-up approach)
- Their presence prevent government from flouting treaties/accord, laws etc.
- Provide indebt information & analysis at international conference- compelling
transparent negotiations implementation and compliance.

FORMATION AND REGISTRATION OF NGOs

Locally–Group of people coming together for a common purpose. They register their group
to relevant authorities, for recognition, accountability of their actions, their identity. Essential
elements include, name, management, structure, bye-laws, constitution, mission statement,
membership geographic coverage and other necessary legal documents. A registration
Criterion depends on the modus operandi, scope of work and other issues like geographic
coverage. For example, in Sierra Leone, it is the MSWGCA and MODEP (Ministry of
Finance and Development?) that are the responsible authorities.
International
Most International NGOs have their laid down criteria which groups subscribe to for
membership. They could be chapters, sections and others. Notable e.g. Oxfam, Amnesty
International, Action Aid, Defence for Children International etc.

As long as you fulfill the membership criteria – mission/goal, registration fees and uphold
similar ideology, you are going to be considered for membership.

Type of NGOs & CSOs by orientation & level of operation

NGO types can be understood by their orientation and level of operation.

NGO Types By Orientation:

Charitable Orientation often involves a top-down protective effort with little participation by
the “beneficiaries”. It includes NGOs with activities directed toward meeting the needs of the
poor, distribution of food, clothing or medicine; provision of housing, transport, schools etc.
Such NGOs may also undertake relief activities during a natural or man-made disaster.

Service Orientation includes NGOs with activities such as the provision of health, family
planning or education services in which the program is designed by the NGO and people are
expected to participate in its implementation and in receiving the service.

Participatory Orientation is characterized by self- help project where local people are
involved particularly in the implementation of a project by contributing cash, tools, land,
materials, labour etc. In the classical community development project, participation begins
with the need definition and continues into the planning and implementation stages.
Cooperatives often have a participatory orientation.

Empowering Orientation is where the aim is to help poor people develop a clearer
understanding of the social, political and economic factors affecting their lives, and to
strengthen their awareness of their own potential power to control their lives. Sometimes,
these groups develop spontaneously around a problem or an issue, at other times outside
workers from NGOs plays a facilitating role in their development. In any case, there is
maximum involvement of the people with NGOs acting as facilitators.
NGO Types By Level Of Operation:
Community-Based Organizations (CBOs) arise out of people’s own initiatives. These can
include sports clubs, women’s organizations and neighbourhood organizations, religious or
educational organizations. There are a large variety of these, some supported by NGOs,
national or international NGOs, or bilateral or international agencies, and others independent
of outside help. Some are devoted to raising the consciousness of the urban poor or helping
them to understand their rights in gaining access to needed services while others are involved
in providing such services.

Citywide Organizations include organizations such as the Rotary or Lion’s Club, Chambers
of Commerce and Industry, coalitions of business, ethnic or educational groups and
associations of community organizations. Some exist for other purposes, and become
involved in helping the poor as one of many activities, while others are created for the
specific purpose of helping the poor.

National NGOs include organizations such as the Red Cross, YMCAs/YWMCAs,

Professional Organizations etc. some of these have state and country branches and assist local
NGOs.

International NGOs range from secular agencies such as Save the Children Organization,
OXFAM, CARE, Ford and Rockefeller Foundations to religiously motivated groups. Their
activities vary from mainly funding local NGOs, institutions and projects to implementing the
projects themselves.

ETHICS AND NGO OPERATIONS

Ethical code of conduct means moral principles that guide organizations’ behaviour. The
codes of ethics are essential standards and norms of governance, accountability, management,
decision-making and community accountability.

Importance
- Provide standard guideline that NGOs should follow in day-to-day practice.
- Promotes excellence and professionalism in running NGOs.

1. Value
- Though NGOs are diverse, they share a common value system based on desire to improve
quality of life for poor people and combat poverty and inequality.

NGOs are committed to:

- Being responsive to the needs and welfare of people
- Accountability and transparency
- Participative democracy
- People-centered development
- Respect right, culture and dignity of all people within the framework of the bill of rights
- Ensure the organization give time to its mission and objectives
- Promote voluntarism at all levels
- Mutual cooperation, collaboration and networking with other agencies and issues of mutual
concern
- Striving for excellence including efficiency and effective service provision at all levels
2. Governance
- Good governance encourages effectiveness of organization to deliver required services. The
responsibility of the governing body is to ensure the organization’s clear vision, mission,
objectives and policies are adhered.
- Develop policies that prohibit conflict of interest
- Ensure good understanding of policies and acceptability to members
- Ensure sensitivity to gender, religious and racial issues

3. Accountability
- Ensures responsiveness to the needs of community they serve and donors

Transparency; is the key thing

- Involvement of stakeholders
- Regular evaluation and upgrading of programmes
- Hold regular planning sessions that will involve stakeholders
4. Management and Human Resource
- Capacity building and improving skills to leadership at very critical component of
organizational effectiveness.
- Periodical assessment of the mission, objective and operations
- Critically analyze organization’s practice and culture to implement necessary changes to
encourage.
- Transparent procedures for procurement.
- Interactive leadership.
- Adopt proper financial management strategies.

5. Resources
- Valuable tools in which organization maintain its original value of being effective and
efficient in service delivering.
- Proper usage of assets
- Mechanism for managing staff
- Periodic cost benefit analysis

Networking And Coalition Building

A network is any method of sharing information between two systems (human or
mechanical). Several different types of networks exist. There are social networks, NGO
networks, value networks, spiritual networks etc. Basically, it is about getting in touch with
institutions, organizations, and individuals anyone and everyone who can be of help to the
policies and programmes is a very critical aspect of an NGO’s functioning e.g., INGO Forum.
Networking facilitates interaction between experts and information between NGO’s and the
people. E.g., Children’s Forum Network comprising of various children’s group,
organizations, INGO from SLANGO.

Coalition-building is the collective organization and promotion of a unified agenda by

various individuals and organizations. While each advocacy campaign must be specific to the
situation and issue, coalition-building can be an important tool for creating and implementing
a strong advocacy strategy. Coalitions can maximize the efforts and influence of actors. In
some cases, the larger and more vocal the coalition, the stronger the case is for change.
Coalition building is a strategy for networks of NGOs to collectively aspire and work for a
concern and an agenda.
A coalition is an organization of organizations formed to execute a particular campaign. In
nearly every campaign that you undertake, your organization will need to develop informal
relationships with sympathetic/like-minded groups. You will want to form a more formal
coalition but when undertaking by members of your organization cannot possibly produce or
manage alone e.g. NUSS, CCSL, NFHR on the peace process of Sierra Leone.

Entrepreneurship
Entrepreneurship is the practice of starting new organizations, particularly new businesses
generally in response. It is often a difficult undertaking, as a majority of new businesses fail.
Entrepreneurial activities are substantially different depending on the type of organization
that is being started. Entrepreneurship ranges in scale from solo projects to major undertaking
creating many job opportunities.

Entrepreneurs are viewed in many ways by different authors:

- Primarily motivated by overwhelming need for achievement and strong urge to build.
- They are tough, pragmatic people driven by needs of independence and achievement,
seldom willing to submit to authority.
- Prone to insights, brainstorms, ingeniousness and resourcefulness, they are caring,
opportunities, creative and unsentimental.
- Prone to over confidence and over generalizations.
- Innovator, the calculating investor, the over-optimistic promoter and the organization
builder.

Characteristics of Entrepreneurship:
- Has an enthusiastic vision, the driving force of an enterprise.
- His vision is usually supported by an interlocked collection of specific ideas not available to
the marketplace.
- Makes it possible to realize that the vision is clear though details maybe incomplete, flexible
and evolving.
- Promotes the vision with enthusiastic passion.
- Develops strategies to change the vision into reality (presence and determination).
- Takes the initial responsibility to cause a vision to become a success.
- Take proven risk. They assess cost market/customer needs and persuade others to join and
help.
- Usually a positive thinking decision-maker.

Disaster Management
This is a complete series of activities which include risk assessment, prevention measures,
preparedness to cope with future disasters, emergency response to a disaster recovery and
rehabilitation.

Emphasis is on good development and community preparedness. This can reduce impact of
disasters especially for the most vulnerable people living in hazard prone areas with few
financial resources to help them recover, with no saving and having lost their means of
livelihood.

Emergency Response
Each disaster has unique circumstances and the response needs to be tailored to meet the
specifics of the situation but the general areas requiring response include:
- Search and rescue
- Assessment of needs
- Health
- Basic needs
- Gender-understanding the roles of men and women
- Livelihood and economy
- Emotional support
- Finance
- Communication-media coverage, information fundraising.

Disaster Recovery
After the immediate damage is over, families need assistance to rebuild their lives and their
livelihood. Communities need to rebuild their social and physical infrastructure and the
economy needs revitalization. It takes time and money to plan and ensure long-term
development and future disaster preparedness are appropriated for everyone. Damaged
structures cannot be built as before, seasonal factors must be considered-planning season will
affect when seeds need to be distributed and onset of cold weather will affect the shelter
provided.

Disaster Preparedness
Much can be done to prepare for future disaster by:
- Modifying or removing the cause of hazards i.e. building houses away from hazard prone
areas; building levy breaks in food prone area; using improved stoves to avoid the spread
of fire etc.
- Reducing the effects of the hazard if it occurs e.g. building houses to standards that protect
people during a hazard.
- Developing early warming systems which can function without power systems.
- Developing response plan i.e. clear definition of roles and training of emergency services
personnel.
- Collection and storage of resources and equipment to respond quickly
- Public education and rehearsal (evaluation drill e.g.)
Development
Rebuilding after a disaster provides significant way for improved development
-response and recovery planning
-to prepare communities for future hazards.
-upgrading infrastructure, roads, communication, water and sanitation systems to withstand
disaster and assist response
-building hazard resistant public buildings and housing to reduce the impact of local hazard
-developing skills of local personnel to increase their capacity to response in an emergency
-poverty alleviation to reduce vulnerability of those with limited livelihoods
-structural change, land reform expansion and modernization of the economic base may be
more possible and open to change
Care must be taken that improvement do not increase an areas’ susceptibility to disaster.
Environmental factors need to be considered when developing job opportunities so that
people attracted do not live in hazard prone areas such as flood plains or unstable hillsides or
that too many livestock lead to overgrazing end desertification.

International Responses
-codes of conduct with principles like humanitarian imperative, respect for culture and
custom etc.

Ethics of aid
-quick fix
Donor market situation
-media issues

Our Individual Responses

-money is the best way to help (to NGOs and aid organizations overseas due to their nature of
operations.
Why not to give-food, clothing, blanket, medicine sometimes cause problems (sorting,
sorting, transporting etc.)

NGO/CSO, Public Sector Management (HRM) function includes a variety of activities, and
key among:

Human Resources Management

Then in deciding what staffing needs you have and whether to use independent contractors or
hire employees to fill these needs. Recruiting and training the best employees, ensuring they
are high performers, dealing with performance issues, and ensuring your personnel and
management practices conform to various regulations. Activities also include managing your
approach to employee benefits and compensation, employee records and personnel policies.
Usually small businesses (for-profit or non-profit) have to carry out these activities
themselves because they can’t yet afford part-or full-time help. However, they should always
ensure that employees have-and are aware of-personnel policies which conform to current
regulations. These policies are often in the form of employee manuals, which all employees
have.

Note that some people distinguish a difference between HRM (a major management activity)
and HRD (Human Resource Development, a profession), those people might include HRM in
HRD, explaining that HRD includes the broader range of activities to develop personnel
inside of organizations, including, eg, career development, training, organization
development, etc.
There is a long-standing argument about where HR-related functions should be into large
organizations, eg, “should HR be in the organization Development Department or the other
way around?”

The HRM function and HRD profession have undergone tremendous change over the past
20-30 years. Many years ago, large organizations looked to the “personnel Department,”
mostly to manage the paperwork around hiring and paying people. More recently,
organizations consider the “HR Department” as playing a major role in staffing , training and
helping to manage people so that people and the organization are performing at maximum
capability in a highly fulfilling manner.
Getting the Best Employees (Staffing)
-workforce planning
-specifying jobs and roles
-recruiting
-outsourcing (having services and functions performed by non-employees)
-screening applicants
-selecting (hiring) new employees paying Employees (and providing Benefits)
-benefits and compensation

Training Employees
-career Development
-Employee Orientation
-Leadership Development
-Management Development
-personal Development
-Supervisorial Development
-training and Development

Ensuring Safe Work Environments

-Diversity Management
-Dealing with Drugs in the workplace
-Employee Assistance Programs
-Ergonomics; Safe Facilities in the workplace
-Dealing with HIV/AIDS in the workplace
-personal wellness
-Preventing Violence in the workplace
-Ensuring Safety in the workplace
-Supporting Spirituality in the workplace
-Diversity Management

Sustaining High-Performing Employees

-Employee performance Management
-Group performance Management
-interpersonal Skills
-Retaining Employees

Overview Of Non-Profit Financial Management

Description
The following basic overview will give you some overall perspective on the basic processes
involved in non-profit financial management.
The following activities described below occur regularly as part of the yearly accounting
cycle. The accounting cycle includes bookkeeping, generating financial statements and
analyzing information from the statements.
Basic Bookkeeping Activities
Bookkeeping is basically recording various financial transactions.
Bookkeeping activities can often be done by someone who’s doing basic clerical work in the
organization. Often, the board treasurer can help you develop and carry out your bookkeeping
system.

Fiscal Policies and Procedures Manual (or Accounting Procedures Manual)

The board develops and authorizes a set of procedures for how the organization manages its
finance, including how the following activities are carried out by your organization. The
board treasurer usually coordinates the board’s responsibility for the manual, including its
regular review and update.
The board and chief executive should make every effort to ensure compliance to the
procedures in the manual.

Type of Accounting System and Recording of Financial Transactions

Accounting starts with basic record keeping (or bookkeeping). When your organization is just
getting started, your bookkeeping system will probably be base on what’s called a cash-basis
accounting system, rather than accrual-basis system. Many organizations, when starting out ,
use the cash-basis system and a checkbook to track transactions. In the “memo” portion of
the checkbook, they note if the amount depicted on the check is an expense or revenue, and
where the amount came from or is going to. As your organization grows, you ‘ll begin using
ledgers to track transactions, for example, you’ll post cash receipts to a cash receipts journal
and checks you write to a cash disbursements journal.
As your non-profit grows and as you begin using the accrual method, you’ll likely need more
types of journals, for example, a cash Receipts journal, Cash Disbursement journal, Payroll
journal, Accounts, Receivable Ledger, Account Payable Ledger, Sales journal, Purchases
journal and General Ledger.

(In an accurual-basis system, you post entries when you earn the money and when you owe
it. Small organizations usually do not have the resources to use an accurual-based system.
However, financial statements are prepared on basis to record entries in journals, but get help
to convert to an accurual-based basis to generate financial statements.)
You can do posting using a single-entry or double-entry method. Double-entry works from a
basis accounting equation”assets=liabilities+capital”.

The double-entry method makes sure that your books are always in balance. Entry transaction
has two journals entries, a debit and credit. Each transaction affects both sides of the
equation.

Each posting might refer to accompanying documents that you keep in a file somewhere. For
example, postings about cash receipts might refer to invoices that you sent to clients which
prompted them to write checks to your organization (checks which you posted as cash
receipts). For example, posting each about cash disbursements might refer to invoices that
were sent to posted as cash disbursements). When you make a deposit to the bank you’ll file
the bank’s deposit receipt in a file.

Manual or Automated Accounting System

Your record keeping system will be based on a manual system ( where you make entries and
total them by hand) or a computer system. You might even choose to outsource your record
keeping system to another business that manages your bookkeepers activities (along with
other financial management activities) for you.
Soon you may evolve to using a computer-based system, which greatly automates entry of
transactions, update of ledgers, generation of financial statement and financial analysis, and
generation of reports needed for filing taxes, etc. The only drawback t o using a
computer is that you might underestimate the importance of knowing how your accounting
processes really work –that’s an advantage of doing the bookkeeping yourself, if only for a
few months. You should also generate your own financial statements and financial analysis at
least for a couple of months. Having this knowledge and experience helps you develop an
instinct for getting the most out of your financial resources.

Accounts And Chart Of Accounts

You‘ll post each entry according to the category, or account, of the transaction. Each account
will be associated with an account number. These numbers are referenced when developing
your financial statements. You‘ll refer t o a chart of accounts which will tell you what account
number to use when you post an entry. You can design your own chart of accounts, including
coming up with your own account numbers. The chart usually have five areas, including
assets, liabilities, net assets (or fund balances), revenues, and expenses. The account numbers
you come up with should depend on the particular kinds of revenues and expenses you expect
to have most frequently.

However, nonprofits have to report account activity according to the classifications functional
(or programs) and natural (or supporting). Program transactions are those directly related to
provide services to clients, members, etc. Supporting transactions are those in common to all
programs, for example, general management costs, etc. it’s not always easy to know which
transactions belong to which category!

Budgets (Financial Forecasting)

You‘ll have an operating budget (or annual budget), which shows planned revenue and
expenses, usually for the coming year. Budget amounts are usually divided into major
categories, for example, salaries, benefits, computer equipment, office supplies, etc. You
might also have cash budgets, which depicts the cash you expect to receive and play over the
near term, for example a month. You also might have capital budgets, which depict expenses
to obtain or develop, and operate or maintain major pieces of equipment, for example,
buildings, automobiles, computers, furniture, etc. Development of the budgets to the budgets
is usually driven by the chief executive. In the case of corporations, the board treasurer can
take a strong role in developing and presenting the budget to the rest of the board is
responsible to authorize the yearly budgets.

You should develop a program budget, that is, a budget for each major service you provide to
clients. For example, a transportation program. A childcare program. Many non profits have
more than one program. It’s critical to plan and track financial costs for each program. As
much as possible, nonprofits should strive to minimize overhead or administrative costs, that
is, costs to support the resources that support the entire organization and all programs, rather
than just one program. Examples of administrative costs are rent for a building, office
supplies, labor costs for personnel who support the central office or more than one program,
insurance, etc. It’s wise to develop a program budget that allocates indirect costs to programs.
There are several methods to do this.

Usually, each month (during trial balancing-more on that later), you’ll update your budget
report to include actual revenue and expenses. Then you can compare your planed revenue
and expenses to your actual revenue and expenses. This will give you a good idea whether
your operating according to plan or plan or not, including where you need to cut down on
expenses and build up on revenue.

Petty Cash
You’ll have a lot of small, recurring expenses that you‘ll need to pay right away, for example,
to buy a computer power cord, stamps, etc. You‘ll probably work from a petty cash fund. You
might establish this fund by writing a check to you’ll withdraw from the fund by filling out a
voucher that describes who took the money, how much, for what and on what date.
Trial Balances
Usually, once a month, you’ll do trial balancing. Often, the board treasurer can help with this
activity. This activity. Usually starts by totaling the entries from the journal(s) into a general
ledger. (As your business grows, you may use other types of ledgers, too, for example for
equipment, payroll, etc.) When using double-entry accounting, you’ll add up totals both sides
of the ledger to make sure that total debits equal total credits.

You’ll make sure that the individual postings and totals are correct by comparing each to its
accompanying documentation. For example, your recording of cash disbursements will be
compared to your bank’s monthly checking statement that indicates what checks you wrote
over the month. Your recording of cash disbursements will also be compared to
accompanying invoices and other forms of billing to your organization, to verify there was a
need for each check that was written to pay bills.

Internal Controls
You will have various forms of internal controls to ensure the business is following its plans,
minimize the likelihood of mistakes, avoid employee thefts, etc. There are a wide range of
internal controls. For example, you’ll be careful about whom you hire. You might have
authorization lists about who can access which areas of the building, types of information,
etc.

As mentioned above, you’ll carry over totals to various financial reports, including your
budget, to see if your financial activities are according to plan or not. To minimize employee
theft, the business’s mail will be opened by one person who logs in each check that is
received. This person will be someone other than the person who deposits the checks to the
bank. Disbursements of large amounts, for example, over $500, may require a secondary
signature, for example, from the board treasurer.

Another form of financial control is an audit. An audit is a comprehensive analysis, by a

professional from outside the organization, of your financial management procedures and
activities. The auditor produces a report, with a variety of supplements that indicates how
well your organization is managing its resources. Some nonprofits are required to have
audits. It’s usually good practice to have an audit, whether you’re required to or not.
Financial Statements
In order to know how your organization is doing, you’ll do some ongoing financial planning
and analysis. In this planning and analysis, you’ll likely use your bookkeeping information to
produce various financial statements, including a cash flow statement, statement of activities
and a statement of financial position.

Your cash flow statement depicts changes in your cash during the year. Your statement of
activities (known as the income statement before) depicts the changes in your assets over the
past year. This statement is particularly useful to tell you if you are operating with extra
money or at a deficit. This gives you a pretty good impression of your rate of revenues and
spending. It signals areas of concern, as well. Your statement of financial position depicts the
overall value of your organization at a given time (usually at the end of the year). Including
by reporting your total assets, subtracting your total liabilities and reporting the resulting net
assets. Net assets are report in terms of unrestricted, temporarily restricted and permanently
restricted assets. Funders often wan to see the statement of financial position.
Financial Analysis
By themselves, numbers usually don’t mean much. But when you compare them to certain
other numbers, you can learn a lot about how your organization is doing. For example, you
can compare the planned expenses depicted on your budget to your actual expenses in order
to see if your spending is on track.

Another form of comparisons is by using ratios. For example, nonprofits are expected to keep
administrative costs down in order to make more money available for programmes. Dividing
a programme’s expenses by your total expenses indicate the amount of administrative
overhead to run your programme.

The interpretation of results from various types of comparisons depends on the nature of the
non-profit. For example, an association might expect to spend far less on administrative
overhead than would a social services agency during their first year.
Financial Reporting
The types and frequency of reports depend on the nature of the non-profit and its situation.
For example, if the non-profit in some sort of crisis, the board may require frequent reports.

Your board should require regular financial reports at each board meeting. When your
organization is just getting started, the Chief Executive will prepare and present financial
reports to the board. However, as the organization develops, a Board Treasurer will likely
take a strong role in helping the Chief Executive to present financial information to the board.
The Finance Committee, led by the Board Treasurer, ensures that financial reports are
complete and helps present them to other members of the board.

The board may require a statement of financial position and statement of activities at each
meeting. They also may request descriptions of finances for each programme or of
affordability for upcoming, major initiatives. They may request information prior to filing
taxes. They will certainly need to see any results from financial audits.

General Fundraising Tips

Fundraising for an organization can be a very tricky endeavor. While the right fundraiser can
make hundreds of dollars for your organization, the wrong one can actually lose money.
Several factors can influence whether or not the fundraiser you have chosen will make
money. There are no set rules determining which ones to use and which ones to stay away
from; most of that depends on your area and what activities other organizations use.

When Choosing a Fundraiser

Firstly, do some research-find out what other organizations have been doing and what has
worked for them. This is not to say that you should shy away from what others have done.
Some activities, such as car washes, bake and candy sales, and ‘bob-a-job’, work nearly
every time they are done. These kinds of activities work every time for couple of reasons.
First, they work because of the low investment costs required to participate in them. Car
washes, for example, often only cost your organization the price of supplies; sponges,
buckets and soap for a car wash. Second, they work because of the supply and demand.
Unless you are working in a very small community, no single organization is going to wash
every car in town. Your organization can catch the cars some other group missed out on last
week. Or in the case of a bake sale, you are selling one time use products that people will buy
if your prices are reasonable.

The next thing to research when selecting a fundraiser is location. First, if you are planning a
car wash or bake sale, try to find a location that will first give you space for free accessibility.
After you find free space, talk to a manager at your chosen location to find out if their
company offers any incentives for using their location for your fundraiser.

Second item on your agenda should be setting prices for your services or products. If you
have chosen to wash cars, you may consider offering your services for free, asking for
donations instead of a flat fee. While some people may end up not paying, others will
makeup for it by giving you more than you would have asked for.

Even if you do decide to work on a donation only basis, you can save yourself from doing
something for nothing setting a price after a certain point. For example, you could ask for few
Leones. You are still working on a donation basis but you are not running the rick of having
someone take advantage of your free services.

The last important thing to consider when selecting a fundraiser is credibility.

Unfortunately, because of past success and popularity of some activities, such as selling
discounted magazine subscriptions, these activities have been transformed in recent years
into scams. In such a large capacity in fact that potential customers have begun to avoid
giving money to people saying they are selling magazines for their organization, despite the
reputation of the organization. So, be sure to check on the credibility of your activity. While
your members aren’t using these activities to put money in their own pocket, there are too
many others who are. Above all else, the most important thing to remember when you are
selecting a fundraiser is to do your profit exceed that overhead? Are there locations in your
are that will match your earnings? And finally, is the activity credible, or has overwhelming
success in the past made it prime for scams?

Grant Proposal Budget Preparation

1. Determine the Ground Rules
Find out from the application guidelines, Research Office, or funding agency all the
established budget regulations, including:
Allowable Direct Costs- what items can be charged to the agency? Will it pay for outside
consultants? Travel both inside and outside the country? What are the rules about purchasing
equipment? Will it pay for salaries for principal investigators or project administrators?

Facilities & Administrative Costs (also called F&A, indirect costs, overhead) indirect cost
pay for office and laboratory space, heat and lights, library services, administrative and other
costs. Every institution is assigned a federal agency with whom it negotiates an indirect cost
rate each year, based on an audit of the previous year’s transactions. No institution arbitrarily
sets its own indirect cost rate.

Cost Sharing–Federal agencies in the United States require that some part of the cost of a
project be born by the applicant institution. When cost sharing is required and no rate is
specified, about 5to 10% is acceptable. This is usually provided by pledging some portion of
salaries with related fringe benefits, and in some cases, indirect costs.

Other sources of cost sharing can be used, but they must be carefully documented for
auditing purposes. If the agency dose not requires a match, don’t do it. You will be held to
your commitment. Contribute only what is required. In the case of the NSF standard
requirement for a 1% cost share, the university will provide the cost share and it is not
necessary to include it in each proposal. In the case of other NSF projects that require a
different cost share amount, follow the guidelines to provide the appropriate cost share.

Matching-Matching costs are slightly different from cost sharing. Matching costs are
commitments by the university to spend its funds in a certain proportion to funds provided by
the granting agency. Typically, this sort of commitment is required for equipment or facility
grants and is a commitment of actual dollars, rather than an in-kind contribution.

Minimum-Maximum Price Range- Before preparing a proposal and budget, determine

what would be an appropriate amount to request. The guidelines usually will tell you the
maximum amount allowed. Request the maximum if you can justify it, but never request
more money than the program allows. Many agencies publish lists of grant awards made the
previous year.

2. Identify the total cost of the project

Developing the budget is an excellent test of how clearly and completely the project has been
described. The principal Investigator (P1) should be able to work through the narrative of the
proposal and identify the costs to be included in the budget.

If the project is approved, the P1 may be asked to give a rationale for various items in the
budget. It is a good idea to prepare a budget justification worksheet which outlines the basis
on which each cost was developed. Identify the page in the narrative which substantiates the
particular expense, and mention any special purpose for the funds not documented in the
proposal.
The budget justification worksheet can also help the P1 identify the items which can be used
to substantiate local cost-sharing funds. For example, many funding sources will count as
“match (at the regular salary rate normally paid consultants) the time contributed to a project
by a volunteer advisory board, particularly if the board is composed of professionals.
3. Prepare the Final Budget
If the granting agency provides a budget form, you must use it. Otherwise, organize your
budget according to the following commonly used categories.
Personnel (salaries, wages)
References to help you request the proper salaries and wages. If you plan to hire Scientific
Aids, Research Support Scientists, etc. salaries must meet established rates for each position

Consultant Fees; Consultant fees for university personnel must be approved by the relevant
authorities, and must include fringe benefits.

Fringe benefits
Travel
First determine what travel expenses the granting agency will allow, and then itemize the cost
of each trip, e.g. round-trip airfare, lodging and meals, taxis, etc. If you plan to drive your
own car, you may claim a certain amount per mile.

Supplies and Materials (expendables)

Include enough supply money for all activities in the project. Include both expendable
laboratory supplies and expendable (e.g. stationery, duplicating supplies, typing/computing
supplies, and software).

Equipment (capital outlay)

Any items which will retain its usefulness beyond the grant period is considered capital
equipment. The costs for such equipment are included when the appropriate F&A (indirect
cost)percentage is applied, except for those items which cost more than $5,000 per unit.
Funding agencies have different views on the purchase and maintenance of equipment, so be
sure you know the policy of the agency before including such costs in your budget.

Services
Include all expenses to be incurred for services during the project period; for example, media
services, statistical consulting, conferences, workshops, animal care and use, electron
microscopy.

Facilities-hall rental for example

Subcontracts
Total Direct Cost
Facilities & administrative costs (indirect costs)
Total Project Cost
Communication Costs
This category encompasses the cost of all communication related to the project, such as
telephone charges, fax, etc. the cost of communications (paper, envelopes, postage) may
included here or under supplies.

PROJECT MANAGEMENT
Objective
-to explain why project management is important today
-why every good leader needs project management skills
-to explain the main task undertaken by project managers
-to discus project planning and the planning process

Management activities:
-proposal writing
-project planning and scheduling
-project costing
-project monitoring and reviews
-personnel selection and evaluation
-report writing and presentation

Working Definition Of Project Management:

A problem with a known solution scheduled for completion-unique and non-routine activities
is defined as a project.
Project Management is the art and science of solving the problem within predetermind time
and resource parameters
Why Increase In Project Management Emphasis?
-global competition
-need to combine strength across organizations
-evolving technologies-rapid rate of change
-availability of highly skilled work force and more outsourcing
-way for big organizations to benefit from attributes of small organizations

Why Project Management Is Important To You?

-change is everywhere and you will become a part of project of some sort
-those who lead projects-who turn visions of what might be into products and services-stand
out
-many specific skills are being obsolete quickly but managing a project will not
Project Planning
-probably the most time consuming of all project management activities
-continuous activity from initial concept through a system of delivery
-plans need regular revision as information become available
Activities in projects should be organized to produce tangible outputs for management to
judge progress
Milestones are end results of a process activity
Deliverables are end results delivered to customers/target beneficiaries

Project Proposal Content:

-Executive summary
-Cover letter
-Nature of Technical problem
-Implementation plan/strategy
-plan for logistic and administration of the project
-Description of group proposing to do the work

-Any relevant past experience that can be applied

Project management and project Manager?

The Functional Manager vs The Project Manager

Functional managers are usually specialists, analytically oriented and they know the details of
each operation for which they are responsible.

Project managers are generalists that can oversee many functional areas and have the ability
to put the pieces of a task together to form a coherent whole

Project Management and Project Manager

Key questions facing the PM:
-what needs to be done?
-when must it be done?
-how are resources to do the job be mobilized?
Project manager is responsible for staffing, budgeting, directing, planning and controlling the
project.

Responsibilities Of A Project Manager:

-responsible to the parent organization
-responsible to the client
-responsible to the Team members
-Above all never allow senior management to be surprised-be prepared to give ‘bad news’

A. To Parent organization
-conservation of resources
-timely and accurate project communications
-careful and competent management of project
-protect the firm from high risk
-accurate reporting of project status with regard to budget and schedule

B. Responsibilities to Client
-preserve the integrity of project and client
-resolve conflict among interested parties
-ensure performance, budgets and deadlines are met

C. Responsibilities to Team members

-fairness, consistency, respect and honesty
-concern for members-future after project
A number of demands are critical to management of projects
-acquiring sufficient resources
-acquiring inspiring personnel-finding sources of internal motivation
-dealing with obstacles
-making project trade offs
-dealing with risks and failures
-maintaining multiple channels of communication
-negotiation
Most of PM’s time is spent on communicating with the many groups interested in the project.
-considerable time is spent on selling, reselling and explaining the project interested parties-
Top management, Functional Departments, Clients and members of the project Team