Financial management system of access Bangladesh foundation

Abstract

Access Bangladesh Foundation, a non political, not for profit and non government organization was set up in 2008 with the aim of encouraging poor disable person, ultra poor people and women to become self-reliant and not to be dependent on others. ABF enables them to become contributing productive members of society and helps them to lead their lives with dignity and self respect. The main objective of this study is to explore the financial management system of Access Bangladesh Foundation. For accomplishing the study, data were collected both from primary and secondary sources. A number of discussions were made in order to understand different financial issues and activities. Access Bangladesh Foundation gives priority in maintaining excellent financial management system after incorporation. ABF believes good practice in financial management can help financial manager and project coordinator to be effective and efficient stewards of the resources to achieve objectives and fulfill commitments to stakeholders. Officers at every level in Finance department have a role to play in handling the financial activities and risks, answer to donors and beneficiaries and deliver results to the stakeholders. Financial planning in ABF involves building both longer term funding strategies and shorter term budgets and forecasts. Once plans are set, ABF draws up its budgets and cash flow forecast to help the implementation of plans. ABF is receiving support by national and international donors, currently as on date, ABF is receiving fund for six projects. ABF receives funds from the donors according to agreement and other sources of fund like social contributors, member’s subscription, donation, service charge, etc. ABF maintains separate bank account for its projects and open the bank account in any scheduled bank in the project area by taking resolution of the Executive committee. Bank reconciliation statement is prepared by a Finance officer in every month to reconcile the bank balances. All fixed assets are recorded in fixed assets register. The fixed assets are physically verified at the end of each year and results are reconciled with fixed assets register. Different types of internal risks are managed by using a series of controls, checks and balances. Internal controls are also very important in protecting all those who handle the financial affairs of the ABF as they remove any suspicion of and temptation to dishonesty. This study finds that there are no internal auditors in ABF and the internal audit is not conducted on a regular basis. Study also finds a communication gap between the project employees and personnel of finance department of ABF which induces the conflict in obtaining and using the funds. So ABF should introduce efficient internal audit mechanism in order to examine the financial operations and should generate more funds for expanding and smooth continuation of their projects.