#

Evaluation Criteria

Maximum MARKS(NGO)

Marks Awarded

1

Objectives and Values (Max Marks 5 ):
Vision/ mission.
Legal basis.
Core Values Objectives.

2
2
1

2

Directors’ Report / Chairman’s / (Head of the Organization Report) CEO Review (Max Marks 10):
A general review of the activities / projects completed during the year and in progress. Highlighting the contribution towards achieving the main objectives, contributions made towards the economy of the country. e.g. poverty alleviation.
Information on various programs / human resources & infrastructure developments, other segments of NGO Financial and operational sustainability analysis provided.
A general outline of future activities & projects.

4



4


2

3

Accounting Policies and Disclosures with National and International Accounting Standards (Max Marks 40):

Details of Accounting Policies and Disclosures

1.  Comparative information is disclosed in the balance sheet, income statement, statement of changes in equity, cash flow statement and accounting policies and explanatory notes are provided.
2.  Each material item should be presented separately. 
3.  Presentation of accounting policies.
4.  Accrual basis is followed (except donations and grants service charge income on cash basis).
5.  The source and amount of any donations received during the period are reported and shown separately from the other income generated by NGO.
6.  No recurrent expenditure has been charged to capital a/c.
7.  Revenue from non core activities has been separately identified.
8.  Loan loss provision expenses related to loan losses are shown separately from other expenses in the income statement.
9.  Interest accrued on savings of beneficiaries.
10.Income from investments is shown separately.
11.Income and expenditure statement for the financial service operations is provided, in addition to other operational statements for the whole institution.

Balance Sheet

Sheet provides classified summary of micro credit program, social development program and commercial activities tied with the microcredit program of the NGO.

1.  Accounting policies on recognizing income and expenses.
2.  Basis of cost allocation for shared costs policy (if applicable).
3.  Accounting of Grant/ subsidies/ donations.
4.  Material in kind donations or subsidies are disclosed.
5.  Depreciation policy and charge
6.  Loan loss provisioning (aging) and write off policy.
7.  Source of loan, terms and interest on borrowings from outsiders.
8.  On lending rate of service charge to beneficiaries (clients).
9.  Effective rate of service charge to beneficiaries (clients).
10.Interest rate paid on savings to beneficiaries (clients).
11.Terms and nature of investments.
12.Any unusual financial movement during the period.
13.Significant departure from accounting standards should be adequately explained/justified.

Compliance with Core IASs
Extent of compliance with the following core IAS / IFRS (Applicable Adopted by each country for financial year concerned) or equivalent National Standards.
Core IAS’s :
1,2,7,8,10,12,14,16,17,19,21,24,27,28,30,32,36,37,38, and 39 (consider if implemented locally).

Presentation of Financial Statements
Presentation / format of Balance Sheet.
Presentation / format of Income Statement.
Presentation / format of Cash Flow/ S A funds.
Presentation / format of changes in Equity.
Explanatory notes on Financial Statements.

If financial statements comply with all relevant accounting standards, an explicit statement of such compliance. Where management concludes that compliance with a relevant accounting standards requirement would result in misleading financial statements, departure from relevant accounting standards requirement is required and should be explained.
Ø    Financial statements are prepared on a going concern basis.
Ø    Consistency of presentation.
Ø    Other disclosures as required.

2


1
1
1

2


1
2
1

1
1
12






























1
1
1
1
1




1





1

1
2





5

4

2
2
2
2
2

5

Stakeholder Information (Max Marks 10 ) Stakeholder’s information on Equity (Grant + Accumulated Surplus), Reserves are provided with clarity.

Promoters / Members information
-Distribution of shareholders.
-Shares held by Directors/Executives.

Graphic/pictorial data on
- Segmental Presentation.
- i.e. Geographical Segments, Nature of the Projects, Community services development project educational, vocational etc.

Five year summary
- Community Services carried out.
- No. of beneficiaries.
- level of enhancement of the social status i.e. comparison of past present gender wise or age wise or income level wise.

Grants / Donation
Administration cost incurred per unit of disbursement.
Balance Sheet -Members funds.
Project wise -Property Plant and Equipment.
-Net current assets.
-Long term liabilities.
-Capital grants.

Project performance
Projects completed Value areas.
Administration cost measured on a unit of disbursement.
- Value of the project activities per beneficiary.
- Administration cost per beneficiary.

2



2




2




2













2

6

Statement of value added and how distributed (Max Marks 5)
-Government as taxes.
- Value of disbursements to different categories.
-Children/infants.
- Families etc.
- Environmental Projects.
- Health Projects.
- Vocational developments / Education.
- Media etc..
-Retained within the organization.
-Employees as remuneration.

5

7

Report Presentation (Max Marks 10)
Production quality of report-
- Cover and printing including the theme (on the cover).
- Effectiveness of photographs and their relevance.
- Effectiveness of charts and graphs.
- Layout of contents.
- Clarity, simplicity, and lucidity in presentation of accounts.

2
2
2
2
2

8

Timeliness and AGMs (Max Marks 10)
Annual audit was undertaken within six months of the financial year end.

10

TOTAL MARKS ( OUT OF 100)

100