AIS Finance and Accounting Manual

The organization files each month e-declarations and notes for the Tax Directorate as follows:

  • VAT filing form, Purchase Books, Sale Books (this is an obligation, albeit NGOs are not subject to VAT);
  • Filing of Tax-at-Source Forms
  • Filing of Payrolls, Social and Health contributions, and income tax.

Failure to declare or late declaration triggers finds and penalties. Since establishment, the organization has correctly and carefully complied with tax obligations and never received a fine. Link

The organization files e-declarations periodically (annual) to the Tax Directorate as follows:

  • Annual Financial Statements (no later than 31 March of the next year);
  • Statement of Financial Position;
  • Cash Flow Statement;
  • Explanatory notes;
  • Inventory of Assets.

Annual filings are made in compliance with the National Accounting Standard for NGOs 2016. Link

The organization maintains and updates the following each month (rarely every three months update) to be submitted to an institution. This is done proactively and not as an obligation, in order to have better control and internal planning:

  • Inventory of invoices and documents involving liabilities, expenses and transactions;
  • Balance of Account Books; Cross-check and Bank/Cashbox book;
  • Bank account statements for simple or project-based accounts;
  • Costs for Payments list;
  • Evidence of taxes, fees/charges and other liabilities;
  • Planning of monthly salaries in accordance with project(s) budgets.
  • Liquidity evidence and evaluation.
  • Salary logbook where we insert all salary-related transactions. Budget log-frame and salary transactions are completed as per source, depending on working days budgeted under different projects.

The organization has a periodic financial report for each project (contract) that it implements.

Occasionally and in each case, the organization declares to the tax authorities any staff recruitment or employment termination, and this is the moment that triggers financial obligations for social and health contributions.

Routine is entailed in our practice to engage and comply with the following:

  1. National legislation on financial reporting and other requirements.
  2. Policies on reporting, oversight, and auditing according to the contracting obligations required and agreed with the donors. The contracts we take on contain articles, restrictions, and annexes where good management and anti-corruption practices are well defined.
  • Organization’s own rules of procedure on what to do when accepting donations from individuals and non-grant donors; purchases, procurement, and registration of assets and expenditures. Link
  1. Obligations for independent periodical (annual) audits; obligation for audit as per donors’ requirements and decisions; ad hoc audit initiated by the Board of Directors.
  2. The main criteria for staff recruitment are integrity and no conflict of interest.