Audit over audit. Is it ethical and correct?

30th April 2014

Dear Friends,

It has become a recent practice among Voluntary Organisations and Funding Agencies to enter into some sort of tripartite agreement with auditors designated by Funding Agencies to get the audited accounts of the project funded by respective Funding Agency again audited by the designated auditor.

1. Is it a healthy and ethical practice?
2. Why this need has arisen? Can we in the Voluntary Sector Introspect and Respond?
3. Our experience is that at some point these designated auditors emotionally blackmail Us for few small and even big mistakes or adjustments we made in the interest of the organisation and take a bribe. It is another BIG question if these are made for fraudulent interest of our CEOs or there accountants? How do we resolve the issue?

These are sensitive, critical but crucial questions we need to respond that I am sharing with you experiencing these entire traumas over 45 years.

Regards,
V.B.Chandrasekaran,
Chatti Mahatma Gandhi Aashramam,
Chatti Post, Chinthur Mandal, Khammam District,
Andhra Pradesh, Pin Code: 507129.
Email: verivaan2049@yahoo.com antarbharatid2010@gmail.com;

Posted in General | 10 Comments

Can we receive Indian Currency through Western Union in FCRA bank A/c?

Dear Friends,
 
Can Designated Bank (FC bank account) receive Indian Currency through Western Union, say for example From Canada to India?
 
Looking froward to hearing from you all.
 
Ajaya 
Posted in FCRA, TAX, LEGAL | 5 Comments

Corpus Fund

Dear All,

Greetings from Hyderabad!

Can the own funds of the NGO be converted into Corpus Fund based on the decision of the BoT/GB?

Thanks and regards,


B V Soma Sastry

Posted in FCRA, TAX, LEGAL | 3 Comments

85% utilization

Dear All,

Greetings from Hyderabad!

This is with reference to the 85% utilization as per the provisions of the IT Act. My query is as under:

There are certain projects for which funds are not received in the FY as the funds of the previous years are still with the NGO. Do we have to consider the expenditure for calculation 85%. The receipt was already considered in the previous year and so that has been accounted for as part of the accumulation.

The second aspect is the interest earned on the NGOs own funds and the expenditure incurred from the said receipts. Should we treat the interest as receipt and the corresponding expenditure for working out 85% utilization.

Kindly respond.

Thanks and regards,

B V Soma Sastry

Posted in FCRA, TAX, LEGAL | 3 Comments

Utilization of grants/donations received

Dear Sir

I wanted to know if there is any notification /guideline (other than income tax requirements) regarding full utilisation of grants/ donations received by an NGO. This assumes importance in view of the CSR provisions of Companies Act 2013.

Many thanks and regards

Joy Jain

Posted in FCRA, TAX, LEGAL | 1 Comment

Interpretation of Clauses of the CSR Schedule

In regards to interpretation of clauses, if the schedule dealing with CSR – the words cannot be construed to have a narrow meaning. How does an accountant deal with this while he ought to make sure that a CSR head is not wrongly debited.

Best Regards.
Udayan Maroo

Posted in CSR | 1 Comment

NGO Accounting Software

Following query received from Mr. Udayan Maroo. Kindly provide your responses.

Dear friends,

Which is the accounting software which like an ERP provides beyond accounting for NGOs?

Best Regards.
Udayan Maroo

Posted in General | 3 Comments

Is 80-G mandatory to get CSR funds?

Dear Friends,
Wish you all Happy Tamil New Year Day.

Is 80-G mandatory to get CSR funds by a Voluntary Organisation?

V.B.Chandrasekaran,
Chatti Mahatma Gandhi Aashramam,
Chatti Post, Chinthur Mandal, Khammam District,
Andhra Pradesh, Pin Code: 507129

Posted in FCRA, TAX, LEGAL | 8 Comments

Treatment of Interest received

Respected sir/friends

Please gave your suggestion on Interest received from FCR Account. Actually as per the directions of the funding agency we transferred the amount from FCR Account to General Account (spl account only for those funding agency) for the operational  purpose. On quarterly basis. Now we got some interest from this (general bank a/c).  we feel this is also treated a FCR Account or Not?

Please give your suggestions on this issue.

SV Reddy
Finance Officer
HELP, 2nd lane, Sujatha nagar,
Lawyer pet Ext,
 ONGOLE – 523 002. A.P

Posted in FCRA, TAX, LEGAL | 5 Comments

Purpose of Utilisation Account

I have now joined another NGO called “Pratham Books” in Bangalore. They are into developing, publishing & distributing children’s books in various languages and promoting reading habit among children.

I have a query in this. We receive grants/donations from various Donors to develop and distribute books. When Donors are Foreign based, we receive grant in FCRA account. But since, development and printing done in India, books are accounted and stocked in our Local Books, from where we distribute it. Can we transfer Foreign money to our Local account for this distribution? Can opening a Utilization Account will help us?

Looking forward for your response.

Regards
Pragya

Posted in FCRA, TAX, LEGAL | 14 Comments