TIES Accounting Policy Manual

Tropical Institute of Ecological Sciences (TIES)

1. Introduction

The Accounting Policy Manual provides the financial management framework for the Tropical Institute of Ecological Sciences (TIES). It ensures that financial transactions are recorded, reported, and managed in a consistent, transparent, and accountable manner, supporting the organisation’s mission of environmental research, conservation, and community development.

This policy applies to all TIES offices, projects, research centres, and field units, and must be adhered to by all staff, including project investigators, administrative personnel, finance staff, and consultants handling TIES funds.

2. Objectives of the Accounting Policy

• Ensure accurate, consistent, and transparent financial reporting
• Support informed decision-making by management
• Maintain donor confidence and regulatory compliance
• Promote strong internal controls to safeguard assets
• Ensure accountability in the use of public, donor, and project funds
• Align with applicable accounting standards for non-profit entities

3. Basis of Accounting

TIES follows the accrual basis of accounting, recognising income and expenses when they are earned or incurred, and not when cash is received or paid.

Financial statements are prepared in accordance with:

• Indian Accounting Standards (Ind AS) applicable to NGOs
• Income Tax Act, 1961 (Section 12A / 80G compliance)
• Foreign Contribution Regulation Act (FCRA), where applicable
• Donor-specific financial reporting requirements

4. Fund Accounting Framework

TIES follows a Fund-Based Accounting System to ensure proper utilisation and reporting of restricted and unrestricted funds.

Fund Categories

• General Fund (Unrestricted): Core operations and administrative expenses
• Project / Grant Funds (Restricted): Donor-funded research, CSR, government and international grants
• Designated Funds: Special reserves for specific institutional purposes
• Fixed Asset Fund: Investment in physical assets
• Endowment / Corpus Fund: Principal remains intact; income supports activities

Each fund is accounted for separately with distinct ledgers and cost codes.

5. Revenue Recognition Policy

Revenue is recognised when it is earned, measurable, and collectible.

• Grants and Donations: Recognised as per donor agreements; restricted funds treated as liability until utilised
• Project Fees and Consultancy: Recognised based on completion stage or deliverables
• Training & Academic Programmes: Recognised on completion of the event
• Membership Fees: Recognised over the membership period
• Interest Income: Recognised on time-proportion basis
• Sale of Publications / Services: Recognised upon delivery or completion

Unspent project funds remain restricted until donor approval for utilisation or refund.

6. Expense Recognition Policy

Expenses are recognised:

• When services are received
• When materials are delivered
• When obligations arise (not upon payment)

Expense Recording Guidelines

• Supported by valid documentation (invoice, PO, approvals)
• Aligned with approved budgets
• Allocated to correct project or cost centre
• Compliant with donor conditions

7. Fixed Assets and Depreciation

Capitalisation: Assets above ₹5,000 with useful life exceeding one year are capitalised.

Asset Categories:

• Buildings
• Laboratory Equipment
• Field Instruments
• Office Equipment
• Furniture & Fixtures
• Computers & IT Equipment
• Vehicles

Depreciation Method: Straight-Line Method (SLM) based on prescribed useful life.

8. Internal Control System

• Segregation of duties
• Defined approval hierarchy
• Documented processes and vouchers
• Dual signatories and bank reconciliation
• Petty cash limits and surprise verification
• Inventory and stock audits

9. Budgeting and Forecasting

• Annual institutional budgets
• Project-wise donor-approved budgets
• Monthly variance analysis
• Quarterly management review

10. Grants and Project Accounting

• Separate ledgers and cost centres
• Budget vs actual monitoring
• Donor-mandated reports and audits

11. Compliance Requirements

• Income Tax Act (12A / 80G)
• FCRA (where applicable)
• GST laws
• CSR guidelines
• Internal, statutory and donor audits

12. Financial Reporting

• Monthly internal reports
• Quarterly management reports
• Annual audited financial statements

Audited financial statements shall be published on www.ties.org.

13. Ethical Standards & Governance

• Zero tolerance for fraud or misuse of funds
• Conflict of interest declarations
• Confidential handling of financial data
• Whistle-blower mechanism
• Oversight by Management and Board of Directors

14. Review and Revision of Policy

This Accounting Policy Manual shall be reviewed every three years or earlier if required by regulatory or operational changes. All revisions must be approved by the Executive Director and communicated to staff.