AUDIT & FILING
Every organisation which receives foreign contributions
is required to furnish a certificate from a chartered
accountant. The proforma of the certificate to be
given by the chartered accountant is provided
in Form FC-6.
Along with this certificate, audited Balance Sheet,
Income & Expenditure statement and the statement
of receipt and payment account should also be submitted.
On the basis of the relevant books and vouchers, the
chartered accountant is required to certify the following:
1. the brought forward balance of the foreign contribution
at the beginning of the year.
2. the foreign contribution received during the year
3. the unutilized balance of foreign contribution at
the end of the year
4. certify that the association has maintained the account
of foreign contribution and records relating thereto
in the manner specified in the Foreign Contribution (Regulation)
the information furnished in the certificate and in
the enclosed balance sheet , income & expenditure
statement and statement of receipt and payment are correct.
Filing of Annual Returns
According to the provision of Rule 17 of the FCRR,
2011, following are the guidelines provided with
to filing of annual return.
(1) Every person who receives foreign contribution
under the Act shall submit a report in Form FC-6,
by an income and expenditure statement, receipt and
payment account, and balance sheet for every financial
on the 1st day of April within nine months of the
closure of the financial year, to the Secretary
to the Government
of India, Ministry of Home Affairs, New Delhi. 16.
(2) The annual return in Form FC-6 shall reflect the
foreign contribution received in the exclusive bank account
and include the details in respect of the funds transferred
to other bank accounts for utilisation. (3) If the foreign contribution relates only to articles,
the intimation shall be submitted in Form FC-7.
(4) If the foreign contribution relates to foreign securities,
the intimation shall be submitted in Form FC-8.
(5) Every report submitted under sub-rules (2) to (4)
shall be duly certified by a chartered accountant.
(6) Every such return in Form FC-6 shall also be accompanied
by a copy of a statement of account from the bank where
the exclusive foreign contribution account is maintained
by the person, duly certified by an officer of such bank.
(7) The accounting statements referred to above in the
preceding sub-rule shall be preserved by the person for
a period of six years.
A ‘NIL’ report shall be furnished even
if no foreign contribution is received during a financial
Declaration and authentication
FC-6 form is required to be signed by the Chief Functionary
of the organisation and a certificate
is also required
to be given by a Chartered Accountant giving a brief
summary of the FCRA funds movement and the opening & closing
balances of FCRA Funds.
The Term “Chief Functionary” has not
been defined in the FCRA Act or Rules. Normally the
the organisation should be construed as the Chief Functionary.
The organisation may also designate any office bearer
as the Chief Functionary through a General Body/Governing
Body resolution, for the purposes of filing the FCRA
returns, Forms etc.
Delay in Filing FC-6
FCRA is silent about consequences for delay in filing
FC-6. It can be constructed that an NGO would stand
the risk of losing the FCRA registration if it does
not file returns properly but whenever an NGO is not
able to file FC-6 by 31st December, it should write
a letter to the FCRA office explaining the circumstances
causing the delay. Normally FCRA authorities condone
such delay in filing of returns.
Audit by Central Government
The Central government has a right to appoint a “Group
A” gazetted officer to audit the accounts of
an association or organisation. The relevant sections
this regard is reproduced as under —
“Where any person who has been granted a certificate or given prior permission,
fails to furnish any intimation under this Act within the time specified therefor
or the intimation so furnished is not in accordance with law or if, after inspection
of such intimation, the Central Government has any reasonable cause to believe
that any provision of this Act has been, or is being, contravened, the Central
Government may, by general or special order, authorise such gazetted officer,
holding a Group A post under the Central Government or any other officer or
authority or organisation, as it may think fit, to audit any books of account
kept or maintained
by such person and thereupon every such officer shall have the right to enter
in or upon any premises at any reasonable hour, before sunset and after sunrise,
for the purpose of auditing the said books of account:
Provided that any information obtained from such
audit shall be kept confidential and shall not
be disclosed except for the purposes of this