Ark Alert – NGOs to Submit Financial Reports by end of October 2018
On 28 September, 2018, the Ministry of Health and Social Welfare (Dodoma), issued a statement requiring all non-governmental organizations (NGOs) to submit financial information and cash expenditure reports for years 2016 and 2017 within 30 days. In referencing the National Policy for NGOs including NGO’s Act No. 24 of 2002 as amended in 2005, the Ministry has reminded all NGO’s of their obligation to submit their financial information to the registrar of NGO’s. In addition, the Ministry insists on compliance with the NGOs Code of Conduct, GN. No. 363, 2008 which mandates transparency and accountability in the management of finances and its administration for NGOs. Against this, the Ministry has noted with concerns that most NGO’s are operating in the country without complying with the requirements of the law. Bearing this in mind, the Ministry now requires NGOs to provide their financial information within 30 days from the date of the mandate’s declaration or face legal consequences which include a possible revocation of a given organization’s registration.
Key highlights of what’s expected of NGOs:
Registration in the ORS is only possible once relevant forms have been correctly filled and filed. The following information is required for the file to be moved into ORS:
- Submit to the Registrar of NGOs audited financial statements for the years 2016 and 2017 within 30 days from the date of the notice and prepare to submit the same for year 2018 by the end of this year.
- To submit details of sources of finance, project expenses and projects implemented including anticipated future projects.
- The mandate requires all financing contracts for years 2016 to date be submitted to the Registrar.
- Going forward, NGOs to ensure that projects being implemented adhere to the priorities, plans and strategies of the government at all levels
- Before any project is implemented, NGOs are required to obtain approval from the Office of the Registrar for NGOs seating under the Ministry of Health and welfare including approval from the President’s Office Regional Administration and Local Government (TAMISEMI). The main reason for this is to enable monitoring of all projects during implementation.
- International NGOs should involve local NGOs in their activities within the country.
- NGOs registered under any other law e.g. under the Companies Act No. 12 of the year 2002, Registration Insolvency and Trusteeship Agency (RITA), Societies Act, etc. must apply for a certificate of compliance as required under Section 11 of the NGOs Act as amended in 2005. Failure to do so is a violation of the law.
Submission of financial information and other required details should be made through email at email@example.com or be submitted directly in hard copy to the Office of the Registrar for NGOs.
Ark is All for You
Despite the short notice, we encourage all NGO’s (whether registered under BRELA, RITA, etc.) to comply with this requirement. This is aimed at achieving compliance and transparency in the projects NGOs undertake within the country.
In case you require our assistance or have queries or unsure of what exactly is expected from you, kindly call us using our contact details immediately below. Otherwise we believe this alert is informative and helpful to you.
John Shimbala, Director
Mobile: +255 766 798 508
Godfrey Temba, Director
Phone: +255 767 810 970
Joanna H. Mallya, Business Consultant
Phone: +255 782 512 353
Ark Associates Limited
369, Toure Drive
Oysterbay P O Box 23197
Dar es salaam, Tanzania
Tel +255 2222 96800
This publication is intended to provide you with a general compliance guide and does not constitute a professional tax advice. Do contact us in case of any questions requiring a formal advice or position of the law.
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Ark is an association ark partners and associates. The entities have since 17 May 2016 been providing professional taxation, accounting, company administration, audit and assurance services.
The current Directors in office are:
John Shimbala and Godfrey Temba.
For more information please visit us at www.ark.co.tz