NGO and INGO Management Software · Guide
NGO Compliance Records in Nepal: Audit, Tax and Reporting
An NGO in Nepal answers to several parties at once: its own general assembly and board, the registering authority, tax offices, donors and, for many organisations with foreign funding, the Social Welfare Council. Each wants proof that money was handled properly and activities were carried out. This article is a guide to the records that make this easier. It is about record keeping, not legal or tax advice. Laws, rates and procedures change, so confirm the current requirements with the relevant authority, your registered auditor and your legal adviser.
The five audiences and what they ask for
| Audience | Typically asks for |
|---|---|
| General assembly and board | Annual report, audited accounts, plans and budget |
| Registering authority | Renewal documents, committee list, annual report and audit as required |
| Tax authorities | VAT and TDS records, returns and supporting invoices as applicable |
| Donors | Financial and narrative reports, audit reports, vouchers on request |
| Council or government counterpart | Agreement, project approvals, reports and budgets where applicable |
Prepare once, present many times. If your records are organised around a single project and ledger structure, each report is a different view of the same facts.
Core finance records
- Chart of accounts and project codes.
- Cash book and bank books for each account, reconciled monthly.
- Vouchers with approvals and supporting documents.
- Advance and settlement register.
- Fixed asset register with purchase date, cost, location and donor.
- Payroll records and statutory deductions as required.
- Budget and budget-versus-actual reports for every grant.
- Year-end trial balance, income and expenditure account and balance sheet.
Tax records to keep tidy
Whether and how VAT and TDS apply to an NGO depends on its activity, its income and the rules in force. In general, keep the following in a form your accountant can use: invoices received and issued, payments on which tax was deducted, deduction certificates or challans, filing dates and acknowledgement. VAT in Nepal is 13% where it applies, but do not assume that your activity is covered or exempt. Ask your accountant or the Inland Revenue Department. Keep a register of tax deducted by month so that deposit deadlines are not missed.
Organisational records
- Registration certificate and renewal dates.
- Constitution and amendments.
- List of general members and executive committee with terms.
- Minutes of assembly, board and committee meetings.
- Policies: finance, procurement, human resources, child and vulnerable adult protection, anti-fraud and data protection.
- Agreements with donors, partners and, where applicable, the Social Welfare Council.
- Audit reports and management letters with follow-up actions.
Programme records
Donors increasingly check that the money produced results, so keep activity reports, attendance sheets, photos where appropriate, beneficiary lists and indicator data. Link each activity to the budget line that paid for it. If an auditor or donor visits, you should be able to move from a voucher to an activity to a participant list without a long search.
A simple annual calendar
| Period | Task |
|---|---|
| Start of fiscal year (Shrawan) | Open new books, approve budgets, confirm project codes |
| Monthly | Reconcile bank, review budget versus actual, deposit taxes as required |
| Quarterly | Donor reports, advances review, activity progress |
| Mid-year | Review policy updates and compliance calendar |
| Year-end | Close books, prepare schedules, appoint or brief the auditor |
| After audit | Present to board and assembly, file with authorities, act on management letter |
Add specific due dates for your organisation from the instructions you receive. Set reminders a month ahead.
Common gaps
- Bills not in the name of the organisation.
- Payments without a recorded approval.
- Tax deducted but deposit date missed.
- Committee changes not updated with the authority.
- Assets purchased with grants not listed.
- Audit recommendations not followed up.
How software helps
A management system stores vouchers, approvals and documents together, runs registers for advances, assets and tax and makes it simple to export schedules for the auditor. It also keeps dates for renewals and audit visible. NGO and INGO Management Software is designed to support these records. It does not decide what your law requires or submit anything on your behalf, and we do not claim any official approval or integration. For storing scanned policies and agreements, see document management software.
Next step
List the ten documents an auditor or donor most often asks you for and check how long it takes to find each one. Share the list with WebsNP by WhatsApp at +977 9846280400 and we will show how the system would store and retrieve them.
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