Objective
Important Auditing Standard : SA 250 ‘Consideration of Laws and Regulations in an Audit of Financial Statements
Verification of contribution brought Check the previous year FCRA certrificate and obtain the
forward from previous year.
How much contributions was
received during the year?
Verification contribution remained
unutilized at the end of the year
Accounts and Records
Statement as per Form FC6
Balance Sheet
Statement of Receipts and Payments
Procedure Remarks
Verified Rs
amount 74902.20
Check the Foreign Contribution bank statement and ascertain
the receipts during the year.
Obtain the breakup of foreign contribution donor wise and
reconcile the same.
Note that, receipts also include contribution received in kind
(materials, shares/securities). These items should be valued
and included in the certificate as foreign contribution.
Check the utilization of funds with respect to the bank
statement and other vouchers.
Utilization means both expenses, acquisition of fixed assets
and money given on loan.
You should reconcile the contribution unutilized with the FCRA
bank account in the books of accounts
Closing Balance of Foreign contribution
as per FC6
Less: Value of materials in stock if any
(received from foreign contribution) as
per FC7
Less: Loans given
Less: Cash held (Out of Foreign
Contribution)
Less: Any other Item
Closing FCRA bank balance as per
books.
Now, you should also reconcile the balance in FCRA bank
account with the closing balance as per FCRA bank
statement.
Verify that the Balance sheet should show all assets and
liabilities pertaining to FCRA funds.
Ensure that Assets and Liabilities related to local funds are not
be reflected in the Balance Sheet.
Verify that the Receipts & Payments account shows all
receipts and payments recorded in FCRA bank book and cash
book.