Page 310 - CA Inter Audit PARAM

CA Ravi Taori
• Bank Reconciliation: Reconciliation of bank statements with reference to all cash deposits
not only with reference to date and amount but also with reference to receipt book.
• Cash Receipts: Register of cash donations to be vouched more extensively. If addresses are
available of donors who had given cash, the same may be cross-checked by asking entity to
post thank you letters mentioning amount, date and receipt number.
• Foreign Contributions, if any, to receive special attention to compliance with applicable laws
and regulations.
➢ Remittance of Donations to Different NGOs:
• System of NGOs’ Selection: System for selecting NGO to whom donations have been sent.
• Mode of Sending Remittance: All remittances are through account payee cheques.
• Remittances through Demand Draft would also need to be scrutinized thoroughly with
reference to recipient.
• Confirming Receipt of Remittance: All remittances are supported by receipts and
acknowledgements.
• Identity: Recipient NGO is a genuine entity. Verify address, 80G Registration Number, etc.
• Direct Confirmation Procedure: Send confirmation letters to entities to whom donations
have been paid.
• Donation Utilization: Utilization of donations for providing relief to Tsunami victims and not
for any other purpose.
Author’s Note
• Flow chart is for Receipt of Donations and can be referred for immediate recollection of
points.
• Flow has been created for Remittance of Donations to Different NGOs.Students are adviced to
study in this flow only

QNO-- Revolving Fund New Course – (M24E)
ADE.78 Bhaskar CNO – Unique

Sanskar Foundation is a Non-Governmental Organisation (NGO) for orphan children. They have received
voluntary contribution of ₹ 50 lacs from the promoters, specifying that ₹ 20 lacs are towards the Corpus

contribution and ₹ 30 lacs are towards Revolving fund. Explain the terms ""Corpus contribution"" and
""Revolving fund"".
Answer A contribution made towards the capital or the corpus of an NGO is known as corpus contribution. The
donors are generally required to specify whether the donation/grant given by him shall form part of the
corpus of the NGO. Such contributions are generally given with reference to the total funds required by an
NGO.

The objective of a contribution or grant towards a Revolving Fund is to rotate the amount by giving
temporary loans from the fund to other NGO or beneficiaries for their projects and then recover the loan
so as to give temporary loans again and so on. However, any interest earned from the beneficiary on such
temporary loans from the revolving fund could be either added back to the fund or credited to the Income
and Expenditure Account depending on restrictions laid down by the authority providing the contribution
(for the revolving fund) or by the rules and regulations laid down by the concerned NGO in this regard.

Audit of LLP - Returns to be maintained & filed Old Course – (M21E)
QNO Bhaskar CNO - ADE.180
ADE.83 New Course – (SM25)

Tomo Construction Engineering LLP approached CA K to understand various returns to be maintained and

filed by them. Guide/Discuss the various returns to be maintained and filed by them.
Answer Returns to be maintained and filed by an LLP:-
♦️ Every LLP would be required to file annual return in Form 11 with ROC within 60 days of closer of
financial year. The annual return will be available for public inspection on payment of prescribed fees
to Registrar.

www.auditguru.in 9.36