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Writer's pictureCA Umang Jain

Initial Requirement list for Audit of an NGO

Is your NGO entity getting Audited? Or are you a Auditor of an NGO?


In this case, there are numerous documents to be taken care of, given below is a preliminary requirement list of documents, and additional documents may be required which will vary from case to case basis that should be taken care of while initiating an audit.


P.S: Details of document required is grouped for ease of understanding


Is your NGO entity getting Audited? Or are you a Auditor of an NGO?  In this case, there are numerous documents to be taken care of, given below is a preliminary requirement list of documents, and additional documents may be required which will vary from case to case basis that should be taken care of while initiating an audit.
Initial Requirement list for Audit of an NGO

Sl No

Particulars

Remarks

A

General

1

Deed/Memorandum of association of the NGO.

2

Recognition/ Registration certificate of NGO, if registered - Society / 12A / 80G / CSR-1

3

Audited/Unaudited Financial Statements of immediately preceding financial year along with copy of ITR.

4

Books of Accounts-Tally backup, SAP, Accounting Software access


B

Cash and Bank

5

Bank Statements (also those closedduring the year)- Annual

6

Bank Interest Certificates - Annual

7

List of bank guarantees with purpose & direct confirmation from Banks

8

Certificate for Cash Balance as the year end


C

Receivables

9

List of members and reconciliation of their membership fees.

10

List of all the donations andgrants received - properly classified whether corpus or general.

11

Workings of total anonymous donations received.


D

Trade payables/Advances to Vendors including Capital advances

12

Advances to Suppliers &Sundry Creditors - Annual Ledger with Closing balance confirmations

13

Ageing of Creditors

14

Details of MSME registered Creditors


E

Property, Plant and Equipment/CWIP/Intangible assets and Intangible assets under development

15

expenses

16

Fixed AssetRegister & depreciation (along with workings)

17

Details of profit/loss on sale of asset

18

Breakup and details of the Capital Work in Progress and intangible assets with reasons for items more than180 days, if any ( as per the format decided during the visit)

19

Physical verification report for last year and done until date for the current year

20

Copy of lease deedsfor all the leasehold properties

21

Original RCs for all the vehicles


F

Inventory

22

Inventory valuation inter alia showing Cost & NRV

23

Yield Ratiocalculation (for manufacturing entities)

24

Consumption ratioof major raw materials for last threeyears qty wise as wellas amount wise(for manufacturing entities)

25

Statement of capacity utilization for all the plants for the current period and last 3 years (for manufacturing entities)

26

Physical Verification report of stock lying with 3rd party, Branch, Warehouse, Plant etc. during the period, if conducted. Remarks for variances if any


G

Borrowings

27

Bank Loan Statements - Annual (with segregation of Interest and Principal Repayment component)

28

Interest working of all the loans along with Loan statements for the year

29

Balance confirmation of the outstanding borrowings from related parties& Banks as at financial year end (31-03) directly at our email id.

30

Unsecured Loan Statements - Annual (with segregation of Interest and Principal Repayment component)


H

Purchases

31

Purchase Register for the period ended along with reconciliation with books of accounts

32

Copy of Top 15 invoices (Value Based)


I

Employee Expenses

33

Monthly statement of total no. of employees (Location wise) including bifurcation for newly joined and employees which had left

34

Details and working of Bonus, Variable pay/increment, Sales Incentive and Sales commission for the periodended and policyof the

entity consistently followed or as per labour award/agreements.

35

TDS returns copies and challan copies and login credentials- For the Year

36

Provident Fund returns copies and challan copies and login credentials- For the Year

37

ESI returns copies and challan copies and login credentials- For the Year

38

Bonus Act returns copies and challan copies - For the Year


J

Other Expenses

39

Electricity Bill and Water Bill - Monthly in pdf format

40

Rent Bills-Monthly in pdf format

41

Commission Fees

42

List of all the insurance policies held by the entity along with the policies- Key man insurance, Health Policy for Employees, Fire and other general insurance policies

43

Any other recurring expenses - Bill - Monthly in pdf format

44

Party wise details of Prepaid and outstanding expenses as on period end, along with management remarks on old provisions along with the disclosure for financials purposes (Current & Non Current)

45

Copy of donation receipt, if any, made during the period


K

Investments

46

Demat statements as at financial year end (31-03)

47

Mutual Fund Statements as at financial year end (31-03) along with the details of sale & Purchase of mutual funds during the period year ended financial year end (31-03) & Profit/loss recognized on sale of such mutual funds


L

Statutory Dues & Taxes

48

Month wise statement of Provident Fund, Profession Tax, ESIC, TDS, GST with Challans

49

Details of disputed statutory dues, if any

50

Direct and Indirect tax status as at financial year end (31-03)

51

Income tax demand /refund status from portal​

52

Direct and Indirect tax orders received during the period ended financial year end (31-03)​


M

Others

53

Details of any government grant received during the year- along with grant deed

54

Detailed project report of major events/ drives conducted during the year

55

List of all the members of the NGO

56

Latest proceedings/notices/orders of Tax Authorities (in case of demand order)

57

Income tax, GST, TRACEs Login credentials

58

Secretarial Records

59

ROC forms filed during the period ended financial year end (31-03)

The above is a preliminary requirement list of documents, and additional documents may be required which will vary from case to case basis, also note that not all the above requirements maybe applicable to your entity so send only the once applicable to your entity.


We hope the above blog was helpful in enhancing your knowledge on the matter. In case of any queries feel free to get in touch with our team of experts.



Quote of the day:


“ I can't change the direction of the wind, but I can adjust my sails to always reach my destination.“

~Jimmy Dean



Regards

CA Umang Jain

+ 91 96323-32850

umang@caumang.com


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