NGO Accountability

NGO ACCOUNTABILITY: 

NGO ACCOUNTABILITY 1 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

Introduction: 

Introduction Accountability is related with issues such as answerability, responsibility, liability, dependability, conscientiousness, reliability, trustworthiness, legitimacy, and transparency. NGO accountability covers issues such as organizational management, project implementation, financial management and information disclosure. 2 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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Accountability calls for a simplified structure:- that avoids duplication and achieves greater impact; empowered and responsible staff managers; a leaner and more efficient non-governmental organization (NGO) that fosters management excellence and is accountable for achieving results. 3 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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Accountability requires that an NGO provides a professional or financial account (or justification) of it activities to another stake holding group or individual. It presupposes that the NGO has a clear policy on who is accountable to who and for what. It involves the expectation that the NGO will be willing to accept advice or criticism and to modify its practices in the light of that advice and criticism. 4 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

The concept of accountability: 

The concept of accountability Accountability for an NGO essentially means: empowered and responsible staff and managers who have more authority, responsibility for decision-making, can improve delivery of the NGO's aims and objectives and can improve management of human and financial resources. 5 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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Accountability can be characterized in a number of ways:- Accountability is personal , i.e. authority can only be delegated to one person. Accountability is vertical , i.e. from top to bottom, responsibilities and authority is delegated from supervisor to subordinate. Accountability is neutral , i.e. it is neither a positive nor a negative concept. 6 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

Principles of Accountability: 

Principles of Accountability The four principles of accountability call for responsibility and authority to be clearly specified; guidance and support to be provided at all stages to everyone involved; exercise of responsibility ; authority to be monitored and assessed, and appropriate action to be taken. 7 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

1st Principle: 

1 st Principle One of the first principle is that responsibility and authority has to be clearly specified. The responsible person must be informed of the expected programme results and resources (financial and human) allocated for the purpose. Monitoring and evaluation systems should be clarified, along with organizational values, policies, rules and regulations, and the behavioural standards. 8 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

2nd Principle: 

2 nd Principle The second principle calls for providing guidance and support to the responsible person in the form of regular and timely management information, training and development, access to senior managers, and advice from financial and human resource management experts. 9 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

3rd Principle: 

3 rd Principle The third principle calls for the monitoring and assessment of the needs of responsibility and authority. This is done by an objective comparison of results against targets and standards, covering such issues as:- delivery of programmes, cost and quality; management of human and financial resources; decision-making - authority fully exercised but not exceeded; and compliance with policies, values, rules and regulations, and behavioural standards. 10 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

4th Principle: 

4 th Principle The final principle is on taking appropriate action. This deals with issues such as:- excellence, satisfactory performance, unsatisfactory execution of responsibility and authority as a result of carelessness or ignorance, unacceptable execution of responsibility and authority due to deliberate flouting of policies, rules and regulations, or exceeding the limits of decision-making authority. 11 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

Accountability- Why ?: 

Accountability- Why ? 12 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

Accountability- Why ?: 

Accountability- Why ? NGO accountability covers issues such as Organizational management, Project implementation, Financial management and Information disclosure. 13 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

Accountability- Why ?: 

Accountability- Why ? It is related with issues such as Answerability, Responsibility, Liability, Dependability, Conscientiousness, Reliability, Trustworthiness, Legitimacy, and Transparency. 14 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

Accountability- Why ?: 

Accountability- Why ? Rising visibility and stakes of NGOs' work. A crisis of authority in many sectors, especially business and government, has amplified the need for NGOs as a 'counterbalance'. 15 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

Accountability- Why ?: 

Accountability- Why ? Cases of NGO misconduct in advocacy, fund use, management, and governance, have come to light, questioning their very legitimacy and congruency with social values and expectations. Ignored the fact that they are answerable to key stakeholders and the constituency that they work with, for promises of performance. 16 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

Accountability- Why ?: 

Accountability- Why ? Promote and consolidate greater democracy. Needed to help create institutional arrangements for global governance in a shrinking and interdependent world. Essentially means empowered and responsible staff and managers who have more authority and responsibility for decision-making 17 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

Accountability- Why ?: 

Accountability- Why ? Improve delivery of the NGO's aims and objectives and can improve management of human and financial resources. Accountability calls for a simplified structure that avoids duplication and achieves greater impact ; empowered and responsible staff managers; that fosters management excellence and is accountable for achieving results. 18 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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WHY ACCOUNTABILITY ? An NGO without proper accountability systems is fragile and open to rumours about mismanagement and abuse of power. It will prevent it from enjoying respect and full legitimacy in the eyes of its stakeholders, including the duty bearers whom they intend to engage in i.e. Advocacy A sound accountability structure is the most important aspect of prevention and detection of corruption. 19 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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There has been rising visibility & stakes of NGO work.A crisis of legitimacy in many sectors has amplified the need for NGO as a “counterbalance”. NGO responsibility in problem solving-human right,poverty,environment,peace building etc.is increasing.So there is enhanced need of accountability in all sectors to consolidate greator democracy. NGO credibility is also needed to create arrangement for global governance in a shrinking & interdependent world. 20 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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ACCOUNTABILITY MECHANISM In NGO,accountability mechanism takes number of forms. For eg. :- They include documents such as legal instruments,policies,mandates,values, rules & regulations. It could also be in form of process covering the way work is done,disbursement and accounting etc. 21 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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Bodies ,whether internal & external ,are sometime set up to oversee & investigate accountability of an NGO Accountability also involves the justice system-apeal for redress etc. Policies are put in place,that cover goal setting & work planning 22 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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Other accountability mechanism are:-programme management planning & review,monitoring of product management & setting of accountability panels. Programme management planning & review covers such issues as enhancement of the performance appraisal system for NGO managers Compliance monitoring takes the form of regular monitoring of compliance with financial rules & regulation,management objective within individual of units of the NGO. 23 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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The accountability panel itself is chaired by the management representative & reviews ,review exercise of managerial authority & responsibility within the NGO. 24 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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LEGAL ACCOUNTABILITY Legal Accountability means there is some theory or claim under the law to find culpability such as a crime or a theory to receive money by way of a civil case. Sometimes, people act in a way which may be immoral or unethical but it is not violative of a law. Now every NGO has to register somewhere according to the laws of the country of registration. 25 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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How an association becomes an NGO or how to distinguish them is not clear. The situation is more complex for international NGOs, though,there is no international legal system which means the legal accountability of an international NGO tends to be weak 26 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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POLITICAL ACCOUNTABILITY A surfeit of NGO activism may place a strain on parliamentary and other institutions that are meant to resolve the claims on society rather than promote them. It argues that the greatest expression of democracy lies in those institutions that give expression to the opinion of all people, organised and unorganised. 27 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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It concludes, therefore, that the challenge for governments is to prevent the mantle of political legitimacy slipping from the democratic institutions into the more apparently popular one of civil society, as this would result in a less accountable democracy 28 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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FINANCIAL AC COUNTABILITY 29 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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Definition of Financial Accountability: Financial Accountability is the ability to account for money properly. This would mean that a person is able to show how they have used the money. They should also be able to show that the money was used properly and accounted fairly. Finally, their financial reports should be financially true and not misleading . 30 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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Why Financial Accountability is Needed in NGO? A small stain on a white sheet is more visible than a larger stain on grey sheet. It prevents an NGO from engaging in for-profit activity or decision made by individuals with conflicts of interest. 31 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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This form of accountability is particularly strong for NGO which are highly dependent on external financing Some NGO’s which are engaged in the PPP with government must be strong with this accountability. 32 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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Benefits of Financial Accountability Helps NGO in making the image of Non Profit Organization. NGO which are mostly dependent upon the public donations get benefits. It helps the NGO in Fund Raising activity. People get safeguard about the use of money they poured in NGO. 33 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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How Financial Accountability can be achieved? Proper cash flow statement. Proper ways of accounting. Proper way of working for getting benefits of tax exemption. 34 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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Proper and regular Audits. Proper documenting. Recruiting qualified persons as an accountant. 35 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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Changing scenario in India 36 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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Global Scenario 37 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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Regulatory authorities Ministry of Home affairs The new FCRA Bill 2006 The Income Tax Department Charity commissioner in some states Companies Registration Office [Section 25 companies] 38 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

Ethics And NGOs: 

Ethics And NGO s 39 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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Influence of NGOs over the society is increasing. Most trusted organization than Government, Corporate and Media. As the influence continues to grow, NGOs are also attracting greater public scrutiny, prompting calls for greater accountability. 40 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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They promote humanitarian issues, development aid, sustainable development, the interests of the poor, Human Rights and environmental protection and help to relieve suffering and provide social services. 41 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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While most NGOs strive ethically and responsibly to promote the public good, there are also many actors in the NGO community that do not follow acceptable standards of conduct, whether in fundraising, governance, or use of public funds. 42 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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There are many NGOs that have been set up for unethical ends, such as “Briefcase NGOs” who function mainly to try to attract grants or donations to enrich their owner. Many highlighted issues and conflicts of interest, failures to adhere to an organization’s mission, questionable fundraising practices, and a lack of transparency. 43 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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Many stories In a world of accounting scandals and scurrilous politicians, perhaps the only thing we can trust in is that our trust will be breached. Unethical NGOs such as these exploit people’s giving nature and weaken the trust of the public and donors in the NGO sector. Ethical and responsible NGOs are tainted in the process. 44 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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So the critical question arises about the accountability of NGOs and that need to be resolved. In the absence of a clear guidelines or an official code of conduct, NGOs have a moral and ethical obligation to be transparent and answerable to the public for their activities. 45 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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Ethics refers to well-founded standards of right and wrong that prescribe what humans ought to do, in terms of rights, obligations, benefits to society, fairness, or specific virtues of honesty, compassion and loyalty. "Ethics consists of the standards of behaviour our society accepts.“ 47 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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Ethical accountability is the practice of improving overall personal and organizational performance by developing and promoting responsible tools and professional expertise, and by advocating an effective enabling environment for people and organizations to embrace a culture of sustainable development. 48 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

Methods Of Enhancing Accountability: 

Methods Of Enhancing Accountability Voluntary codes of conduct as guidelines Self-certification Certification Methods of Enhancing Accountability Accreditation Rating organizations/third-party evaluations/watchdog Award programs Information agencies 49 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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One must develop a constitution, clear vision/mission statement and objectives. A governing body which understands ultimate responsibility for governance and set policies; approve major strategies/plans, budgets and reports; and supervise the chief executive consistent with the constitution and mandate of the organization. 50 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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Explicitly and consciously put measures in place to progressively attain the standards. Seek to engage in continuous self, peer and or external assessment and evaluation to monitor the progress. 51 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

SOCIAL ACCOUNTABILITY OF AN NGO: 

SOCIAL ACCOUNTABILITY OF AN NGO ‘ 52 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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Social Accountability is very crucial to organizations in general and NGOs in particular. It is not only what we do, but also what we do not do, for which we are accountable’ An NGO has to work for public purposes in order to retain its legal and ethical entity. 53 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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Why is accountability agenda critical for NGOs? Are NGOs not already doing enough to justify their social accountability? Then why should an NGO devote additional energy and resources, which could have otherwise been used for charitable purposes? In this context, it is important to unravel reasons for the importance of social accountability with regard to the NGOs 55 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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Increased awareness Peoples’ Empowerment Better Governance Increased Development Effectiveness Enhances the Credibility 56 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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Social Accountability Standards (SAS) There exits eleven Social Accountability Standards Aimed at spreading awareness and understanding regarding the necessity of developing certain objective norms of accountability in the voluntary sector 57 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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THE INDIAN SCENARIO: 

THE INDIAN SCENARIO 3.3 million registered not for profit organisations General lack of awareness of the common man about the voluntary sector. The voluntary sector in India has now taken some positive steps towards self regulation and becoming more transparent and accountable. 61 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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India has multiple Acts under which organisations are registered as not for profits or NGOs in India, accountability requirements of all these Acts differ No uniform accounting policy or reporting framework that applies to all NGOs Our statutory framework does not require NGOs to be accountable directly to the public, administrative authority not equipped with resources to monitor and penalise those defaulting in making necessary filings. 62 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

INITIATIVES PROMOTING ACCOUNTABILITY: 

INITIATIVES PROMOTING ACCOUNTABILITY Give India India’s first online giving portal was founded in the year 2000. Platform to create a philanthropy marketplace at showcasing the work of NGOs that meet stringent norms of transparency and accountability in the public domain Opened the doors for organisations to access funds from donors simply on the strength of their willingness to be transparent and accountable. 63 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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2. Credibility Alliance A consortium of voluntary organisations committed towards enhancing accountability and transparency in the Indian voluntary sector through good governance. Represented on the Planning Commission’s committees for reforms in the voluntary sector. Norms requires NGOs to disclose the methods of dissemination of their Annual report and the number of copies given. 64 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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3. Guide Star India A soon to be launched online platform for NGOs in India to voluntarily showcase their work, articulate their needs and make their information accessible to donors. Initiative of Civil Society Information Services India, a trust set up in 2009 with a mission to educate Indian NGOs to voluntarily share, in the public domain, information that advances transparency and encourages charitable giving. 65 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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4. Joy of Giving Week Coordinated by Give India, initiative as one that would promote transparency and accountability. An open ecosystem that virtually allows every NGO willing to commit itself to basic public disclosure. Tremendous public interest and media coverage which will only heighten awareness about the voluntary sector and reward NGOs that are accountable. 66 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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5. CSO Partners’ Outstanding Annual Report Awards An initiative of CSO Partners in collaboration with like minded organisations to promote transparency and accountability Promote better standards in financial reporting as well as the preparation and presentation of annual report. 67 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

EMBRACING TOOLS OF ACCOUNTABILITY... : 

EMBRACING TOOLS OF ACCOUNTABILITY... If they become aware of opportunities If the platform is easy to use or there is capacity building support If they are trained to submit information If they have the access to update themselves If it is easy to get started and slowly step up If it pays to be accountable (resources flow to them as a result of their efforts to be transparent and accountable). 68 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

CONCLUSION : 

CONCLUSION NGOs in India have been successful in bringing about several electoral reforms to make politicians accountable. Played a key role in getting the landmark Right to Information (RTI) Act passed in 2005 to make the government machinery accountable. Time for NGOs in India to focus their energies at enhancing their own accountability. 69 Dr. Bhargav DeshpandeSymbiosis Institute of aaahealth Sciences

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THANK YOU!!! 70 Dr. Bhargav R. Deshpande Symbiosis Institute of Health Sciences