NGO Audit

An NGO Audit is a systematic review of the financial statements, books of accounts, and statutory compliances of Non-Governmental Organizations. The purpose is to ensure transparency, accountability, and compliance with laws governing NGOs such as the Income Tax Act, Societies Registration Act, Trusts Act, Companies Act (for Section 8 Companies), and FCRA (if applicable).

Why NGO Audit is Important?

• Ensures funds are utilized for intended charitable purposes.
• Mandatory for claiming exemptions u/s 11 & 12 of the Income Tax Act.
• Builds trust among donors, beneficiaries, and regulatory bodies.
• Helps maintain compliance with FCRA and government guidelines.
• Supports eligibility for grants, CSR funding, and tax benefits.

Documents Required

• Trust Deed / Society By-laws / Section 8 MOA & AOA.
• Books of accounts – cash book, ledger, vouchers, receipts, payment register.
• Donation receipts and utilization records.
• Details of grants received (foreign & domestic).
• Bank statements and investment details.
• FCRA registration and returns (if applicable).

NGO Audit Process

1. Step 1: Review governing documents and registration certificates.
2. Step 2: Verification of income, donations, and grants.
3. Step 3: Checking utilization of funds in line with objectives.
4. Step 4: Ensuring compliance with FCRA, IT Act, and other laws.
5. Step 5: Preparing audit report for submission to authorities.

How Ctrl Tax Advisory Helps

• Comprehensive statutory audits for NGOs, Trusts, and Societies.
• Preparation and filing of annual returns with IT Department, FCRA, and ROC (for Section 8 companies).
• Guidance on maintaining proper records for transparency.
• Assistance in donor audits and CSR compliance.
• Expert advisory on tax exemptions and grants compliance.