Accounting Practices of NGO: A study on MAX Foundation.

Abstract

The report is based on ‘Accounting Practices of NGO: A study on MAX Foundation.’ This research aims to comprehend how the documentation, reporting, and auditing are performed in NGOs and get an insight into the receiving and utilizing the process of foreign donation. The Max Foundation is a leading non-profit organization dedicated to improving child health in low-income countries. Established in 1995, it has evolved from supporting research on childhood cancer to becoming a powerful force in the fight against undernutrition. This summary highlights the foundation's history, key interventions, and remarkable impact on child health. Initially focused on pediatric cancer research, the Max Foundation experienced a pivotal shift in 2001. Recognizing the devastating impact of undernutrition on child mortality and morbidity, the organization began to redirect its efforts towards tackling this critical issue. This shift marked a significant step forward in addressing the root causes of child health disparities in low-income settings. The Max Foundation developed the innovative Healthy Village approach, a comprehensive strategy that addresses undernutrition through integrated interventions. This approach combines Safe water, sanitation, and hygiene (WASH): Providing availability of clean water, sanitation facilities, and hygiene education helps prevent waterborne diseases and create a healthy environment for children. Nutrition: Offering nutrition education and promoting healthy dietary practices ensures children receive the essential nutrients needed for optimal growth and development. Care: Providing access to primary healthcare services, including immunizations and treatment for common childhood illnesses, further safeguards children's health and well-being. The Max Foundation has successfully implemented the Healthy Village approach in Bangladesh, Ethiopia, and Nepal. Their commitment to scaling up their interventions and reaching more children has resulted in significant growth and progress. Additionally, the foundation has developed innovative models like "Max Payment-by-Results" to incentivize effective program implementation and ensure maximum impact. The Max Foundation's work has garnered international recognition for its effectiveness. Notable achievements include: 2010: Awarded the prestigious Bill and Melinda Gates Foundation Grand Challenges Exploration grant. 2015: Received the Conrad N. Hilton Humanitarian Prize for their transformative work in Bangladesh. 2020: Successfully halved stunting rates in program areas of Southern Bangladesh, demonstrating the remarkable potential of the Healthy Village approach. Looking Ahead: The Max Foundation remains committed to its mission of improving child health in low income countries. They continue to expand their operations, advocate for global attention to undernutrition, and build local capacity to ensure long-term sustainability. Their groundbreaking work serves as an inspiration and a model for other organizations working to improve the lives of children around the world. Accounting is the study of how information is provided to and used by managers in businesses so they may make well-informed decisions that will better prepare them to perform management and control tasks. These are the main duties carried out by financial accountants of this organization produced by the following variety of cost accounting instruments: Budget variance Analysis, Rate and Volume Analysis, Cost Analysis, Cost Benefit Analysis, Financial forecasting, yearly budgeting, internal financial presentation and communication, strategic planning, strategic management advice, and capital budgeting. Basically, in an organization accounting information – has four basic roles. They are Documenting, Financial Reporting, Program cost control and improvement, and Forecasting, Budgeting, and Planning. Documentation is a very important aspect of any NGO, because it’s a nonprofit organization and handles foreign donations, so there may be a lot of chance for irregularity. Besides the government agencies issued several regulations to handle the NGO operations. To comply with these statutory issues, today’s NGOs are very much concerned about the proper documentation of their activities. Besides the documentation, another major task of the MAX Foundation grants and finance department is to prepare financial reports. This report has the maximum significance to its stakeholders and donors. Proper allocation of funds, effective cost control, and continuous development are very important. Thus, the accounting and finance department of MAX played a key role in bringing it up here.