E-Paper
Get acquainted with foreign funding Act to help NGOs: Home ministry to CAs
CAs have particularly been asked to verify whether the associations are eligible to receive foreign contribution; and assist in properly preparing and maintaining the prescribed books of accounts
After making stricter rules for NGOs to receive funds from abroad, the ministry of home affairs (MHA) has now advised Chartered Accountants (CAs) to familiarise themselves thoroughly with the Foreign Contribution Regulation Act (FCRA) 2010, Foreign Contribution Regulation Rules 2011 as well as amendments and notifications issued by it from time to time so that they can help and guide the associations and their office bearers.
CAs have particularly been asked to verify whether the associations are eligible to receive foreign contribution; ensure whether it is using the designated bank account for the same and assist in properly preparing and maintaining the prescribed books of accounts.
“Since the FCRA deals with the national security, associations are required to exercise extreme care and caution in utilising foreign contribution. CAs examine and audit all relevant books of accounts and bills and vouchers of FCRA associations and then present audited accounts which are submitted/uploaded online to the government. Therefore they are obliged to conduct performance as well as forensic audits to ensure that receipt and utilisation of foreign contribution has happened within the four corners of law,” the Charter issued by MHA states.
“Hence, they are expected to provide proper guidance to the associations in maintaining proper accounts and utilising foreign contribution only as provided under the FCRA law,” it added.
The Centre has, last year, made FCRA stringent by barring public servants from receiving any funds from abroad. It also made Aadhar registration mandatory for NGOs; prohibited transfer of foreign funds to another person and designated State Bank of India, New Delhi, as the only bank where such funds can be received.
