Online Portfolio - Service Learning Project In Accounting For Non-Profit Organization by BRIYANGKA NALLIAH

Logbook

briyangkanallaiah — 2022-06-06 17:22:23 UTC

Good day! Here are the, Pictures of:-

Group's meetings
Interview session with the Chairman Mr.Faiq
Site visit to Krayon for Society Organization
Online meeting with the Treasurer(accountant) Mr.Amir and Vice Chairman Ms Nurul Izzah

Videos of:-

Interview session
Online meeting with the Treasurer(accountant) and Vice Chairman Ms Nurul Izzah

About Krayon for Society Organization

briyangkanallaiah — 2022-06-06 17:30:21 UTC

Krayon for Society Organization

Founded on 23rd February 2021 with the aims of welfare management work and at the same time fostering the spirit of volunteerism among the community in Malaysia.
The headquarters located in Melaka
Mainly active in Alor Setar Kedah under the name (Pertubuhan Krayon untuk Masyarakat Cawangan Kedah).

Mission:

To inspire the general public, particularly young people, to participate in voluntary and humanitarian activities.

Objective:

To aid the community in terms of welfare issues such as providing assistance to asnaf, the poor, orphans, and those impacted by unforeseen calamities.

Structure:

Chairman, Vice-Chairman, Secretary, Deputy Secretary, Treasurer, Deputy Treasurer, and Exco
Formed by twelve (12) members of the sponsoring committee (AJK)

Stakeholders:

Not affiliated with any corporate entity.
The stakeholders of this society are committee members and volunteer members from all throughout the states.
Involves collaboration with government entities (Selangor Social Welfare Department and Zakat)

Sources of Incomes:

Public donations that mobilizes through projects and programs.
Kelantan Chief Minister's Office and Selangor Islamic Religious.
The Sustainability Fund is used to pay employee allowances, project management expenditures, and program costs.
Sale of program lanyards and t-shirts to support program management expenditures.

Main Activities:

The organization is mostly concerned with charitable activities.
Engages in volunteer works

Accounting and Financial Reporting at the Krayon for Society Organization

briyangkanallaiah — 2022-06-06 17:31:23 UTC

The financial reporting process begins with recording transactions in the excel spreadsheet that solely prepared by the Treasurer (Accountant) of Krayon Society
All the transactions involved recorded on the excel spreadsheet which evident and supported by documents, such as receipts, bills, invoice, bank statements, etc.
Most of the transactions handled via bank (Maybank) whether receiving or payment
Once the transactions filtered in the excel spreadsheet, it will recorded in the ABSS accounting software
Preparing the bank reconciliation, recording monthly transactions and generating auto financial statements completed via thee system ABSS.
The income of the Krayon for Society Organization is known as "collection" the donations made by donors thru the bank
The total income of the NPO divided into two portions, 70% of the total income for Program whereas the 30% of the total income for Administration.
The collection/income recorded separately for each program such as (Foodbank, Ramadhan, General, Tawau, Flood, Hiking, etc) on monthly basis.
The expenses incurred such as the utility expenses, salary, allowance, rental expenses, etc, also recorded on monthly basis.
Under the income statement the total collection recorded as income regardless of the portion, while the 70% allocation for Programs recorded under cost of sales and the balance 30% allocation for Administration recorded under the expenditure part.
The balance sheet items represented by non-current assets consists of fixed assets, current assets represented by cash in hand (bank, petty cash), cash advance, advance salary and stock as well other assets such as deposits.
There is no liability for Krayon for Society Organization
From the review of current accounting as well overall financial reporting process of the NPO we identify there is difference in what we learned in class and the way the doing.
Specifically in preparing income and expenditure statement, as per the NPO's current practice they having cost of sales which represented by 70% of total income.
As what we have learned in the class, there is no cost of sales exist in the statement, since the objective of preparing the statement of income and expenditure is to identify surplus or deficit of income which will later transmitted to the balance sheet.
The 70% of the total income which used to donate for programs is supposed to record under the expenditure by the Krayon for Society Organization instead of under cost of sales.

Interview with Krayon for Society Organization link for recorded video(Before service learning)

briyangkanallaiah — 2022-06-06 17:33:31 UTC

Preparation of Financial Statements of Krayon for Society Organization

briyangkanallaiah — 2022-06-06 17:37:51 UTC

Statements:-

Statement of Receipts and Payments
Statement of Income and Expenditure
Statement of Financial Position

Working:-

Ledger
Trial Balance
Adjustments

Accounting issues at Krayon for Society Organization

briyangkanallaiah — 2022-06-06 17:38:33 UTC

Accounting issues

1. Fixed asset tagging

the labels that identify the equipment using a unique serial number or a code or a barcode.

use barcodes to speed up their data entry and decrease field entry errors.

Asset tagging helps to manage the physical capital and make it easy to make informed decisions whether it be repair or replacement of an asset.

helpful for tracking and preventing theft of physical assets.

2. Unsuitability term for allowance

if Krayon society record the payroll to member or volunteers as salary, the organization need to subject the EPF and SOCSO contribution

Non-accounting issues

1. Staffing

person in charge of Krayon Society, he stated that only the treasurer of the organization owns the basic accounting backgrounds and others not.

difficult the members in organization to make the decision when about the finance issue

leave the organization's financial resources to the peoples who do not have these skills

2. Insufficient volunteers

insufficient in volunteers is failure to properly train and invest in volunteers and members.

The receptionist approach of volunteer management is all too typical, which is a shame since it's not very effective.

volunteers' time and efforts are not quantified in terms of monetary worth by most charitable organizations.

Recommendations:

Accounting issues

1. Fixed asset tagging

Based on the information that we have collected, the organization thinks that asset tagging was easy to do and always misses the changes to do the asset tagging. In this case, the organization should change their mindset regarding the asset tagging and need to do the asset tagging as soon as they can.

2. Unsuitability term for allowance

In the case of the salary term, the organization should change the salary into the allowance and if the organization still choose to continue use the salary term then it should follow the KWSP Act 1991. (which if they did not follow the act, then they will be charge as stated in the act)

Non-accounting issues

1. Staffing

So far, only Treasurer of Krayon for Society Organization has an accounting background. Therefore, the organization should consider to take staff or volunteers with accounting background in their organization to assist the treasurer in the financial transactions of the organization.

The organization should also give a basic accounting training to their member or staff so that if there an issue raises regarding the financial transactions of the company, then the staff can provide their opinion to handle the issues.

2. Insufficient volunteers

The organization should develop orientation or training to their program which will help the volunteers to understand how their position sits within the scope of the organization.

The organization could also incorporate a session of motivation and opportunities for volunteers and staff to bond throughout the orientation program.

Our Reflections

briyangkanallaiah — 2022-06-06 17:39:34 UTC

Any challenges faced or any memorable experiences

feeling uncertain
requires us to proofread many times
the difficulties we encountered presented us with the chance to improve the way we aid our own learning

Impact service learning as a student

improve our academic knowledge and abilities but also our practical skills and personal skills
helps our civic engagement and enhances our relationship with the NPO’s
teaches us how to be independent

Impact on community

enhance student learning in the classroom with real-world experiences in the community
able to convey a message and raise awareness about humanity to the public
give awareness to the chairman of Krayon for Society Organization to give emphasis on accounting expertise

Video

briyangkanallaiah — 2022-06-06 17:39:44 UTC

Meeting (28 April 2022)

2022-06-06 18:48:38 UTC

On 6th May 2022, we have found the NPO (Krayon for Society Organization) that fulfills our requirement and we obtained their agreement to conduct our service learning project.

Meeting (15 May 2022)

2022-06-06 18:53:24 UTC

Online Meeting with the Treasurer(Accountant) and Vice Chairman in relation with the process of accounting (record-keeping, financial reporting, preparation of financial statement) - PART 1

briyangkanallaiah — 2022-06-16 06:26:44 UTC

Online Meeting with the Treasurer(Accountant) and Vice Chairman in relation with the process of accounting (record-keeping, financial reporting, preparation of financial statement) - PART 2

briyangkanallaiah — 2022-06-16 06:29:06 UTC

Documents Provided by the Krayon for Society Organization - P&C

briyangkanallaiah — 2022-06-16 18:48:47 UTC

Data Akaun Krayon4Society

Documents Provided by the Krayon for Society Organization - P&C

briyangkanallaiah — 2022-06-16 18:51:16 UTC

COLLECTION APRIL 2022

Documents Provided by the Krayon for Society Organization - P&C

briyangkanallaiah — 2022-06-16 18:51:33 UTC

PAYMENT TRACKER _ PAYMENT VOUCHER LISTING APRIL

Documents Provided by the Krayon for Society Organization - P&C

briyangkanallaiah — 2022-06-16 18:51:57 UTC

Bank Statement - April

Documents Provided by the Krayon for Society Organization - P&C

briyangkanallaiah — 2022-06-16 18:52:37 UTC

Receipts of Mission Tawau

Meeting (20 May 2022)

kamarulasyraaf84 — 2022-06-16 19:33:07 UTC

Meeting (Interview)(21 May 2022)

kamarulasyraaf84 — 2022-06-16 19:38:16 UTC

Meeting (6 June 2022)

kamarulasyraaf84 — 2022-06-16 19:47:12 UTC

Meeting (14 June 2022)

kamarulasyraaf84 — 2022-06-16 19:53:27 UTC

Service-Learning Contract

briyangkanallaiah — 2022-06-17 18:27:46 UTC

Document & Information Sharing Agreement of Krayon for Society Organization

briyangkanallaiah — 2022-06-17 18:29:34 UTC

10 June 2022

briyangkanallaiah — 2022-06-19 13:45:40 UTC

Site Visit

15 May, 20 May & 06 June 2022

briyangkanallaiah — 2022-06-19 13:53:17 UTC

Group Meetings

21 May & 14 June 2022

briyangkanallaiah — 2022-06-19 14:01:28 UTC

Interview first session
Online meeting with treasurer (accountant) & vice chairman

Documents Provided by the Krayon for Society Organization - P&C

2022-06-21 20:31:37 UTC

Fixed Asset Listing

Transfer of Knowledge

2022-06-21 20:33:37 UTC

The Krayon for Society Organization records the payment to the members and volunteers as salary instead of allowance. Moreover, the NPO didn’t record the SOCSO and EPF contributions as the Krayon Society didn’t deduct those payments. Yet the NPO incurred allowance expenditure for the April month. Hence, we reclassified the accounts by debiting the allowance and crediting the salary account, which amounted to RM 3,800. Therefore, the allowance April month is RM 4,200.

The depreciation value recorded by the Krayon society was RM 8. Generally, we depreciate the value of an asset until it reaches RM 1. As a result, as the NPO has overtaken the depreciation value, the credit balance of RM 7 was reduced by debiting Accumulated Depreciation and crediting the depreciation account, resulting in the depreciation being reduced to RM 1.

The Krayon for Society Organization does not own any property. Despite this, the non-profit accounted for renovations as a non-current asset and claimed depreciation of RM 1,840 and RM 123 respectively. As the non-profit incorrectly classified the renovation account as non-current assets, we reclassify the accounts by debiting Electrical Equipment and crediting the renovation account, as the work performed by the non-profit is most appropriate for the term Electrical Equipment as the NPO fixed the lights, fan switch point, wiring PVC pipe, and casing. In addition, we reclassified the accounts of accumulated depreciation by debiting Renovation's accumulated depreciation and crediting Electrical Equipment's accumulated depreciation.

Online Meeting Session With Lecturer (After)

briyangkanallaiah — 2022-06-26 18:42:42 UTC