FA, 2020 amendment increasing...
MHA has advised Chartered Accountants to get themselves thoroughly familiarised with FCRA, 2010, the Foreign Contribution (Regulation) Rules, 2011 so that they can help and guide the associations and their office bearers. MHA has further drawn attention of CAs to the provisions of sections 18, 19, 20,21,22,23 and 24 of the FCRA, 2010 and to Rules 4,5,9,11,13 and 17 of the FCRR, 2011. CAs may take note and advice and assist the associations/NGOs accordingly. MHA said that CAs may help/guide NGOs:
1. To check whether the associations are eligible to receive foreign contributions.
2. To guarantee that the association gets and uses the unfamiliar commitment (FC) through its ledger only opened for the reason as per the changed arrangements of FCRA, 2010 and FCRR, 2011 and that unfamiliar commitment isn't kept in or used from the financial balance being utilized for domestic assets.
3. Assist in the proper preparation and maintenance of prescribed books of accounts under FCRA, 2010 and FCRR, 2011
4. To ensure that the annual returns of the Assembly/NGO have been prepared and uploaded in accordance with the provisions of FCRA, 2010 and FCRR, 2011 as amended from time to time.
Chartered Accountants (CAs) analyze and review all important books of records and Bills and vouchers of FCRA affiliations and afterward present evaluated accounts which are submitted/transferred online to the Government.
Therefore, they are obliged to conduct performance as well as forensic audits to ensure that receipt and utilization of foreign contribution has happened within the four corners of the law. 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 Said MHA.
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