Dear Members,
I am working in NGO as Finance Manager. And i have some doubts regarding FCRA Administrative Expenses.
1. We had purchased a Vehicle from Mahendra and they have provided loan to Organization. Every month the premium and interest is paying through bank.
Now please tell me how to treat these while submitting FCRA Annual Returns.
a. Premium paid -> Admin / Programme Expenses
b. Interest paid – > Admin / Programme Expenses
2. We are also running a Hotel for Girls and Boys. We are incurring Electricity Charges, Electrical repairs to this Hostel. Can we show this as Administrative Expenses / Programme Expenses
3. In the previous year We had transferred FCRA Funds to other FCRA holder. Now the project was closed. They have transferred unutilized funds to our organization. How can we show this in our books of accounts?
Please help me sir. Your valuable guidance can help me a lot.
With regards,
Sirisha
I think when you say premium, you mean Principal.
As far as vehicle is concerned, since it is not a revenue expenditure, most likely it has been capitalized, hence principal part would be adjusted against loan & will not be routed through Income & Expenditure. As far as interest is concerned, if the vehicle is being used for office purpose, interest part would become admin expense.
Any expenditure for running a hostel, as part of a programme, may be treated as Programme Exp.
Unfortunately in FC4, there is no provision for refund of any grant, therefore a bit dicey on how to treat it. Suggest you may consider refund as adjusting against other grants that you have paid out. Thus reducing total quantum of grants paid out. But I feel for proper guidance, more information is needed, Suggest you may discuss it with your auditor.
If the Registration has lapsed due to some reason, how do the trust apply again after period of 4 months of expiry is also crossed.
Do we open another entry for the MHA site as previous password is not allowing this.
If the purchased vrhicle is registered in the name of your NGO, it comes under Admin – 1a and b FC asset register should be maintained.
Point number2 comes under programme.
Point 3 comes under FC money and should be credited into “other FC account”, but not Delhi Main FC Account. Inform the Donor about the unutilised FC money and get thrur written permission to utilise that fund for any activity related to the objectives mentioned in your MOA or Trust deed. Or You can even seek their permission to use it under general reserve for developmental activities.