Dear SRRF members,
We have received a new query under FCRA from P.Mallikarjuna Reddy’MAHITA- Hyderabad
• One of our Europe based donor agency has appointed project officer in
Hyderabad to monitor their projects in South India. Since the person doesn’t
have FCRA, the particular donor agency has requested MAHITA that they will send
the project amount to our organization account and in turn we have to take care
of the Project Officer’s salary, travel, Capacity Building workshops of their
donor agency partners and other administrative expenses as per the sanctioned
amount. The Donor Agency has agreement with the Project Officer directly and the
money is coming to our Bank Account. Mahita is working with the donor agency for
a long time and they are one of our primary donor agency.
• Based on the monthly expenditure statement submitted by the Person, we are
incurring his expenditure (Salary, travel, administration) through Cheque and we
are also deducting Professional Tax and TDS from his salary. The bills and other
expenditure incurred in his name and he is submitting every month to our
• We have an agreement with him in regarding to the maintenance of accounts,
maintenance of all vouchers and systems as per the sanctioned budget with the
particular donor agency.
In the recent time, one external financial person has raised objection that,
since the agreement is directly with the individual person vis-à-vis the donor
agency and our organization can’t facilitate this kind of financial process and
suggested us to take appropriate guidance in this issue.
In this regard, we would be thankful if you could inform us, whether we can
continue with this process or NOT? If this is not a good practice as per the
law, what would be the alternative, as neither the donor agency nor their
appointed Project officer doesn’t have FCRA account in India.
Socio Research & Reform Foundation
(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
Tele/Fax: +91-11-25821088, 25817157, 25722044