governmental and non profit organization

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COLLEGE OF BANKING AND FINANCIAL STUDIES

DEPARTMENT OF UNDERGRADUATE PROGRAMME

B.Sc. in Accounting, Auditing and

ASSIGNMENT BRIEF- Group Work

Weightage: 30%

Student Name & ST Number

Semester

5 Spring 2020-21

Assignment Title

Module Government & Non-

profit Organization

Accounting (UG045)

Assessor:

Dr. Salman

Start Date: 5th April 2021 Internal Verifier Dr. Labeeb

Due Date:

30th April 2021

Required Work, Format and Grading

You must submit the following by the assignment due date:

▪ Completed answers to each task, making sure that you fully address each of the outcome
criteria.

▪ Answer all questions separately.
▪ Assignments without TURNITIN report will not be accepted.

Resources:

You need to demonstrate a confident application of the theories to the assignment task. The

theoretical underpinning of your observations and deliberations should also demonstrate a good

understanding of the subject by the way that your analysis is structured.

You can access the Internet to research about the topic. You should demonstrate good academic

practice by the appropriate use of academic texts and journals that are properly referenced.

Guidelines and further information about assignment:

Assignment must be submitted with the “Turnitin” report. If the report generated

indicates a similarity index percentage of 20% or more, a review of your assignment is

necessary to ensure the same is reduced to less than 20%.

Student declaration:

I certify that the work contained in this assignment was researched and prepared by

me:

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Signature: ___________________________ Date:

___________________

The user ID and Password for submitting the soft copy of the report through

TURNITIN is as follows:

Class ID: 28551125 Enrolment Password: GNOMB

Submission time and date

You should submit the assignment by the time and date mentioned otherwise a ‘NA’ will be

awarded. Fill in the form cover and staple it with your assignment. Make sure that all the

relevant details are complete. Assignments must be submitted by the due date. You may

include diagrams, figures etc without word penalty.

Plagiarism Writing

1. Plagiarism occurs if you use somebody else’s work in an assignment or exam answer,

but fail to state where you got the material from. You need to be also very careful

about the amount of words you are using from somebody else’s work.

2. It can happen in any type of assessment where you are given the questions or tasks in

advance.

3. If another student uses your work in his/her answer(s), both you and he/she will be

punished when caught.

4. Punishments for committing plagiarism can be very severe.

Details

Plagiarism is a form of cheating in which students use the work of others and present it as

their own. It may include all or any one of the following –

1. Copy extensively from the work of others (from sources such as books, magazines,

journal, web-sites etc) and submit the work as your own.

2. Copy another students’ work and submit it for assessment under your own name.

3. Allow another student to copy your work and then submit it for assessment under

their own name.

What happens if you get caught?

The examining body of CBFS may punish offending students in any manner that they deem

fit. Typical punishments may range from reduction in grades, making students re-sit modules

and even failing students on a module or an entire award. The college considers this form of

cheating as a serious offence. Therefore be forewarned!

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Learning Outcomes covered in this Group Assessment:

Learning Outcome Assessment Criteria

LO 2 apply non-profit firm

standards in terms of concepts,

theories and modes of inquiry

1. provide a basic definition of non-profit firm standards.

2. understand the models applicable to the non-profit sector.

3. recognize the importance of non-profit firms in the
economy.

4. provide a suitable definition of risk associated with the
non-profit firms.

5. identify the opportunities of non-profit firms in helping the
society.

LO 7 demonstrate an awareness of

audits taken place in non-profit

firms

1. Regulatory framework.

2. Measuring audit behavior of non-profit firms.

3. Reflections from the Audits of non-profit firms.

Scenario:

Child Care is a local non-profit organization solely managed by Mr. Mohammed. Before 10

years, his family contributed property and savings to establish this non-profit organization

which aims to provide free education, food, and shelter to orphans in the country. The source

of income is from donations and charities which Mohammed can generate from his family

members. Mohammed’s educational qualification is an engineering graduate and therefore he

has no knowledge of managing a non-profit organization. Mohammed’s lack of accounting

and finance knowledge has created liquidity issues to the organization. In addition, there is no

proper checks and balances done on the accounts since its inception. The employee base

consists of Mr. Gopi, Ms. Sara, and Mr. Ahmed. Gopi looks for housekeeping, cleaning, and

cooking for the shelter home. Sara is the cashier of the firm. Sara manages financing of the

non-profit and Ahmed looks for the administrative aspect of the firm. All these three

employees are full time employed but are underpaid as compared to the private sector.

However, since few years, the number of orphans has increased in the organization and

therefore there is negative cash balances for few years.

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The details of the closing balances of the net assets are as follows: (all figures in Omani rial)

2018 2019 2020

Unrestricted (44,000) (67,000) (91,000)

Temporary restricted (30,000) (57,000) (67,000)

Permanently restricted 100,000 100,000 100,000

There is an immediate need to recruit additional three full time employees, out of which, two

employees are required in the housekeeping whereas one employee is required in the

administration of the non-profit. Mohammed is facing criticism from his existing staff, which

are complaining of lower salary and lengthy working hours. Mohammed is also facing tough

challenge in generating funds from charities and donations as increased expenses of the non-

profit firm is worrying him. Major donors are also not happy with the type of services

provided to the key stakeholder (orphans) of the non-profit firm. Neighbouring society

houses have appreciated the charity work done by Child Care. Thuriya, a local bank manager

has approached Mohammed and is willing to provide a bank loan for covering negative cash

balances. Thuriya also recommends Mohammed to cut down unnecessary expenses like

leisure, stationery, and travel costs. However, Mohammed will have to keep the noncurrent

assets of Child Care as mortgage to avail the bank loan.

Ahmed is of the opinion that the non-profit firm should expand its management board and

include major donors as trustee. This will increase accountability and transparency in the

non-profit organization. However, Sara is totally against this option, as new trustees will

create additional confusion and operational challenges to existing management (Mohammed)

and to the non-profit firm. Gopi is of the opinion to close this non-profit firm as increased

negative cash balances will create serious liquidity issues in near future. Mohammed’s

ultimate objective is to generate profits from the non-profit firm so that he can use the

additional income for other business needs.

Mohammed has approached you and asked some generic and specific questions which could

help fix the mentioned issues.

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Requirement:

Task 1: Give a proper definition of non-profit firm. (LO 2.1)

Task 2: Give a summary of the case study and reflect the model applicable to the mentioned

non-profit sector (LO 2.2)

Task 3: Critically emphasize the importance of the non-profit organization to the economy.

(LO 2.3)

Task 4: What are various categories of risks associated with Child Care based on the above

scenario? (LO 2.4)

Task 5: Based on the findings, give recommendations to Child Care so that the firm could be

financially independent and contribute to the society. (LO 2.5)

Task 6: What are the regulatory issues which the mentioned non-profit firm should consider

while maintaining its financial records? (LO 7.1)

Task 7: Do you recommend an internal auditor for Child Care? If yes, what are the

immediate issues to be addressed by the internal auditor. (LO 7.2)

Task 8: What are the reflections from the above case study? Write briefly in terms of the

auditing and regulatory framework. (LO 7.3)

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Marking scheme:

Task(s) Marks

Task 1 2

Task 2 3

Task 3 4

Task 4 3

Task 5 5

Task 6 3

Task 7 5

Task 8 5

30

Instructions

1. Use proper referencing wherever applicable.

2. Word count: around 2,500 words

3. If the assignment is done in a group, then specify the work distribution among the

group members.

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