Treatment of FCRA fund received in utilisation account instead of main account

Posted on March 7, 2017 by SRRF

Dear Members,

Our NGO has received a foreign donation directly into our Utliisation account, instead of the FCRA Main account. How can this be corrected?

Regards,

Sujatha Krishnaswamy

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2 Responses to Treatment of FCRA fund received in utilisation account instead of main account

  1. Subhash Mittal says:
    March 10, 2017 at 9:54 am

    Agree with Udayshankar. You may need to deal with banker, who sometimes do not transfer funds, so easily. But a bit intrigued, how did your donor receive Utilisation Account details, since you should have given only FCRA Designated Account details to the donor.

  2. C Udayashankar says:
    March 8, 2017 at 5:53 pm

    From a commonsense point of view, one feels that what is credited into Utilisation Account can immediately be transferred to FCRA account without utilising even a single rupee from the Utilisation Account. Auditor may be requested to suggest a footnote at appropriate place in the financial statements, apropriate entries in the Bank Registers and Vouchers. If utilisation had taken place straight from the Utilisation Account, then the case invites problems.

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