NGO Consultancy
Our Purpose and guiding aim is to help Organizations build stronger systems which are not just smooth and hassle free but also contribute in the accelerated growth of Non Government Organisation !
Consultancy Solutions
Our Consulting Solutions can be classified into following two categories:
Finance
Finance Department or function in any business setting is expected to perform following key responsibilities:
- Book Keeping ( Accounting )
- Compliance Function ( Regulatory, Statutory)
- Management and Control ( Management Information System, Internal financial controls )
- Strategy and Risk Management
- Funding
At Dishtayate, under our umbrella of consultancy solutions we provide solutions to each of the five above mentioned components of finance individually and also as a package as per the requirement of the client.
Audit and Assurance/Assessment Services
There is always a need of regular assessment of functions, operations, reporting systems to with the purpose of monitoring and improvement.
At Dishtayate, we offer wide range of services under our Assurance and Assessment function with the vision of sharing our contribution in the journey of growth and improved performance of our clients.
Our Assurance and Assessment function includes following key service lines:
- Internal Assessments
- Governance Risk and Compliance Audit
- Assessment of Business Ethics
- Social Audit
- Social Impact of CSR ( Corporate Social Responsibility )
Through out Dishtayate, we follow a ‘VALUE ADDITION’ approach, we believe that whatsoever service we may be providing , it should add quality value in our client’s business and operations.
Finance Function
A successful business is the result of effective functioning of different internal processes and departments like production, marketing, sales, administration, finance, human resources etc. For the success of any business it is important that all the function not only perform well individually but also collectively .
All functions are undoubtedly important and interrelated but one function at which each and everyone looks upto is ‘ Finance Function’. Finance Function over the period of time has evolved to a great extent. Traditionally expected to handle the accounting and reporting of transactions , now it includes lots of responsibilities without which no business can un smoothly.
The Finance Function primarily consist of 5 interrelated activities. Each of the activity originate from the Organisational activities and focus on production and use of information to primarily meet the following purpose
- Accounting: To record financial consequences of Organisational Activities
- Compliance :To meet the requirements of governmental and other regulatory bodies
- Management and Control : To produce and use financial and related information to inform, monitor and instigate operational actions to meet Organisational Objectives.
- Strategy and Risk : To inform and influence from a financial perspective the development and implementation of strategy and to manage risk.
- Funding : To inform and engage with investors and funders both current and potential to obtain and maintain necessary financial resources for the Organisation.
At Dishtayate, we work together as partner with the Organisations to ensure smooth functioning of the Finance function and provide our quality services for each of the five activities of finance function individually and collectively as a package.
Accounting
The Purpose of Accounting is to record the financial consequences of Organisational Activities. This covers any activity undertaken by or on behalf of an Organisation that results in a financial obligation or benefit.
Accounting activity also has evolved over the period of time and its importance has risen to a great extent with increasing monitoring, awareness and requirement to present Organisation’s progress not just accurately but which is also authentic, reliable and comply with the applicable laws and regulations.
Accounting function has following three main elements :
Transaction processing
It involves the recording and settlement of financial transactions arising from the Organisational activities. All transactions having a financial obligations are to be booked accurately to record and acknowledge the assets, liabilities, income and expenses of the Organisation.
Transaction Processing is mostly labelled as the basic activity under accounting but a reliable , authentic , accurate processing of transactions forms basis of the entire financial information system of the Organisation whether required for internal or external reporting purposes.
Accounting and reporting
The aggregations of financial transactions in general ledgers together with any required accounting adjustments enable the production of trial balances based on the chart of accounts. The summarised trial balance in turn enable the production of basic accounts in the form of Income ( Profit & Loss) statements and Balance Sheets.
Accounting has to be done to not only ensure authenticity and accuracy but also to make sure that it is in compliance with applicable ‘ Accounting Standards’ issued by the regulatory body of the country ( Institute of Chartered Accountants of India).
Many accounting adjustments are required to ensure the compliance of applicable accounting standards.
Strategy and Risk Management
The Purpose of Strategy and Risk management activities is to inform and influence from a financial perspective the development and implementation of strategy and to manage risk.
Strategy
Finance is firmly integrated in the strategy process for three main reasons:
- Financial Resources: The effective implementation of strategies requires sufficient financial resources.
- Success measure : For commercial entities in particular a key measure of Organisational Success is Financial Performance.
- Cross Organisational Visibility : Financial Information provides a uniform measure of performance across the Organisation and is a key means of making Organisational Activities visible and thus understanding the business.
- Strategic and Annual Plans.
Organisations tend to be more successful if they are led against the backdrop of a strategic direction, rather than via reactionary response to short-term and immediate changes in circumstances. Setting a strategic direction allows longer-term planning to be effective and enables senior leaders to determine and plan to achieve future business opportunities. We can support senior leaders through the process of setting the organisation’s strategy, bringing an external independent perspective to the discussions.
Having set the strategy and agreed the organisation’s goals or objectives, we are also experienced in supporting the translation of the appropriate elements of the strategy into the annual business plans, ensuring “line of sight” between the strategy and operational activities.
Organisation governance framework.
Directors of an organisation have personal responsibilities for their actions in respect of the organisation’s business. Our framework outlines the key responsibilities of accountable executives and Boards, their powers of delegation, the conduct expected of the Board and its proceedings. It reflects principles that have been adopted by the Organisation demonstrates its commitment to openness and public accountability.
Organisation performance measurement
Having determined an organisation’s strategy and its key objectives, reviewing progress towards achievement of the intended goals is central to the activities of the Board and senior leaders. We offer assistance to clients in identifying the critical success factors that underpin achievement of strategic objectives, and the range of performance indicators and associated measures against which to review progress and to support strategic decision-making. We are also able to advise on formats for the reporting of performance measures, review and escalation responsibilities and processes.
Process review and alignment to strategy
When an organisation agrees a new strategic direction, it is important that all processes support the efficient and effective realisation of the Corporate goals. Often, processes will have been designed to deliver against an earlier and different strategic agenda. Optimizing business process through alignment to the new strategy is a crucial activity if the business is to operate efficiently and we offer support and advice on process review and alignment to strategy.
Risk Management
Risk management is an integral part of business management today. For effectively managing the risk it is equally important to first assess the risk. Risk management is an on going process and the range of activities can get very broad as per the needs and requirements of the business. Setting of risk policies, identification of risk across the organisation and monitoring of action plans designed to manage such risks.
Mergers and Acquisitions
Mergers and Acquisitions between NGOs in Aid sector is not new but yes not frequent. NGO mergers and acquisitions though are not as popular as in case of for profit but they are increasing considering donor funding dwindles and the desire to go local and impact increase.
At international level there has been many successful mergers in the NGO sector which are primarily aimed to leverage resources and scale up efforts in the common causes.
Accounting
The Purpose of Accounting is to record the financial consequences of Organisational Activities. This covers any activity undertaken by or on behalf of an Organisation that results in a financial obligation or benefit.
Accounting activity also has evolved over the period of time and its importance has risen to a great extent with increasing monitoring, awareness and requirement to present Organisation’s progress not just accurately but which is also authentic, reliable and comply with the applicable laws and regulations.
Accounting function has following three main elements :
Transaction processing
It involves the recording and settlement of financial transactions arising from the Organisational activities. All transactions having a financial obligations are to be booked accurately to record and acknowledge the assets, liabilities, income and expenses of the Organisation.
Transaction Processing is mostly labelled as the basic activity under accounting but a reliable , authentic , accurate processing of transactions forms basis of the entire financial information system of the Organisation whether required for internal or external reporting purposes.
Accounting and reporting
The aggregations of financial transactions in general ledgers together with any required accounting adjustments enable the production of trial balances based on the chart of accounts. The summarised trial balance in turn enable the production of basic accounts in the form of Income ( Profit & Loss) statements and Balance Sheets.
Accounting has to be done to not only ensure authenticity and accuracy but also to make sure that it is in compliance with applicable ‘ Accounting Standards’ issued by the regulatory body of the country ( Institute of Chartered Accountants of India).
Many accounting adjustments are required to ensure the compliance of applicable accounting standards.
Financial Control
Financial Controls are required to ensure the protection of assets and to ensure that all financial transactions are accurately recorded and reported Activities include inter alia ‘ Internal Control Policies’, ‘Reconciling External Statements’ and ‘Monitoring money outflow and inflow’.
Compliance
The Purpose of Compliance is to meet the requirements of governmental and Other regulatory bodies. Compliances can be further classified in two broad categories:
Regulatory Compliance
Regulatory Compliance covers the range of activities necessary to produce , communicate and verify financial information to meet the local and regulatory requirements ( excluding tax, which has been covered separately). It includes completion of statutory accounts, processing of returns and information for compliance of regulatory acts applicable like Foreign Contribution and Regulation Act, labour Laws to mention some.
Taxation
Tax relates to both complying with the tax requirements of the relevant national authority and Tax planning .Tax reporting and compliance involves the analysis and aggregation of financial transactions in order to compute potential tax liabilities, meet the payment obligations, filing of necessary returns, handling assessments etc. With multiplicity of applicable taxes ( Direct and Indirect) tax compliance have become a more complex but an integral part of finance function.
Management and Control
The purpose of management and control activities is to produce and use financial and support information to inform , monitor, and instigate operational actions to meet organisational activities. This will also play an important part in refining or redefining those Organisational objectives.
It includes various activities but major activities can be classified as under:
- Management Information Generation
- Information analysis and application
- Internal Audit
- Management Accounting
Management Information Generation
It includes development , production and analysis of the information used for management and control purposes. It may include financial as well non financial information.
It covers planning, forecasting, budgeting, target setting, analysis and reporting. The content and scope may vary from Organisation to Organisation as per the need and requirements which may require aggregation of both past and future data.
A strong and reliable information generation is very crucial in the overall process of decision making and management as this data forms basis of all other analysis and reporting.
Information Analysis and Application
This activity primarily includes how information is used for Management and Control. Sound application of data is very important for management and decision making. Following four are the major application areas of information:
- General Management and Control of Operational Activities ; generally with an implicit focus on profitability or value for money goals .
- Cash and Treasury Management ; It has two main performance dimension , first Impact on Company Valuations as it is based on the net present value of future cash flow and second as an asset class to be managed through treasury activities
- Investment Appraisal; seeking merits of investment options using both cash approaches ( Net Present Value and Internal Rate of Return ) and Profit based appraisals.
- Tax Management : It involves the consideration of range of factors such as decision on transfer pricing , legal entity structure, operating locations, and financing structures. Generally Organisations focus on minimising tax liabilities However , progressive and
bottom-line focussed managements have realized that taxes (both direct and indirect, domestic and international), should be viewed as a dynamic item of cost rather than a passive charge on the profits.
Indeed, an effective tax-cost management provides a distinct competitive advantage. This requires the application of appropriate tax strategies proactively identified and surgically implemented.
Internal Audit
In the current scenario, when business processes are getting complex, regulatory involvement is increasing , it is important to have a continuous review of the processes to ensure that they are in line with Organisations established procedure and working towards achieving the Organisation’s goal and objectives.
A sound internal audit will help management to have a look at current progress, identify gaps and take timely decision to fill those gaps and proceed for implementation of decisions for improved Organisation’s performance.
Management Accounting
Management accounting involves partnering in management decision making, devising planning and performance management systems, and providing expertise in financial reporting and control to assist management in the formulation and implementation of an organization’s strategy. It may be regarded as a partnering with the management in the overall decision making .The activities in management accounting includes forecasting and planning, performing variance analysis, reviewing and monitoring costs etc.
