NGO ACT OF 2002 WETHER IT HAS ADEQUATE PROVISION FOR EXPRESSING FINANCIAL MATTERS FOR NGOS IN TANZANIA.

1.0 Introduction
The purpose of this paper is to review critically the NGO Act of 2002 and show weather it has adequate provisions for expressing financial matters for NGOs in Tanzania.
In this paper we have to understand what is an NGO and financial matters for the purpose of giving clear clarifications for expressing financial matters for the NGO Act .
In this paper also recommendations and conlusion will be provided after reviewing the NGO Act.

1.1 Definitions
1.1.1An NGO
An NGO is a voluntary grouping of individuals or organizations which is autonomous and not for profit sharing; organized locally at the grassroots level, nationally or internationally for the purpose of enhancing the legitimate economic, social and cultural development or lobbying or advocating on issues of public interest or interest of group of individuals or organization. (NGO policy ,2001)
1.1.2 Financial matters
Financial matters are all matters concerning with money within an organization.





2.0 Review of NGO Act 2002 on financial matters
2.1 Observations
In part II section 8 (1)- (2);it describe the source of fund of the board but ; the act does not explain how the fund acquired will be spent and modality of expenditure including approval mechanism. it has only mention what the funds of the board shall consist of and how the board may invest and deposit with a bank any money not immediately required for the use by the board.
Also in part II section 9 (1)- (4) explain on the annual estimates; but it does not mentioned the long term forecasting revenue and expenditure for both coordinating board and NGOs which is very crucial. This is a business plan for 3-5 years.
In part II section 10 (1)&(2) explain how the board shall keep proper books of accounts and submit to the controller and auditor general account of the board with a statement of financial activities and income expenditure during that financial year, with a statement of assets and liabilities of the board. Therefore this section does not show who will be responsible and accountable for the reports presented by Controller and Auditor general; also the section does not show the role of internal auditor that is very important for daily internal control and will help to prepare a financial statement that will show a true and fair financial position of the NGO.
In part 29 (a) &(b) explain how financial and the activities reports
for each NGO shall for every calendar year.
The section does not specify who is responsible to audit accounts of the NGOs before submitting the reports to the council, the board and other stakeholders. Also the section does not show if those reports will be monthly, quarterly; which is a good way of writing those reports.



2.2 Recommendations and conclusion
-All those sections reviewed should be amended and include the missing details on financial matters I have mentioned in each section so as to attain objectives of the NGOs.
-Financial matters in the NGO Act 2002 should compile with other financial regulations; this means finance act, financial memorandums.etc