Non-Profits Managing Public Funds

Overview

Public money in a private entity remains subject to public accountability.

Partnership agreements under Law 13,019/2014, management contracts, OSCIP partnership terms and grant agreements require funds to follow the approved work plan, a dedicated bank account and evidence for every expense. The accounts are reviewed by the granting body, the Courts of Accounts and the Public Prosecutor’s Office. SGEx reviews these accounts, organizes the evidence of expenditure and determines the amounts in dispute.

When clients call on SGEx

• Accounts for collaboration and funding agreements and grant agreements.
• Management contracts of social organizations and OSCIP partnership terms.
• Disallowances, information requests and findings by the granting body or the Court of Accounts.
• Special accounting reviews (tomada de contas especial) and repayment claims.
• Liability of officers and inquiries into misuse of funds.

How SGEx works

• Work plan. Each expense checked against the approved goal, budget line and budget.
• Dedicated account. Movements, investment income and balances reconciled with the accounts submitted.
• Shared costs. Allocation of staff, premises and services across projects tested against an explicit criterion.

Each disallowance is tested against the document, the rule and the amount that support it.

What We Solve

• Do the partnership accounts reconcile? Reconciliation of the dedicated account, the records and the accounts submitted.
• Do the expenses fit the work plan? Each expense checked against approved goals, budget lines and budget.
• Does the cost allocation hold up? Review of allocation criteria for staff, premises and shared services.
• Are the disallowances well founded? Technical analysis of findings by the granting body or the Court of Accounts.
• How much must be repaid? Calculation and restatement of disallowed amounts, investment income and remaining balances.
• Did the funds reach the goals? Comparison of amounts applied with the report on execution of the agreement.

How We Approach It

1. Agreement and period

   Scope of the instrument, the work plan and the period.

2. Documents

   Dedicated account statements, invoices, contracts and payroll.

3. Reconciliation and testing

   By goal, budget line and source of funds.

4. Report or opinion

   Evidence, disallowances and amounts in dispute.

SGEx methodology stages →

What we examine

Partnership terms, management contracts and grant agreements, work plans and amendments, dedicated account statements, invoices, supplier contracts, payroll, execution reports and opinions of the granting body and the Court of Accounts.

Possible Deliverables

The format is defined according to the agreed scope and the purpose of the work.

• Review of accounts
• Audit report
• Technical opinion on disallowances
• Calculation of amounts to be repaid
• Expert report