15 June 2011
For NGO it is very much important to know whether the NGO has been registered under the Societies Act or not. Then it is to be seen how and where from the funds are coming. You have see that the NGO is doing activities as set in the Memorandum of Association. The funds should not come from any illegal means. If any foreign funds are coming then proper permission is to be looked into. The activities are also to be approved by the managing committee and all expenses should be in accordance with the approval as granted by the managing committee.No unauthorized expenses beincurred and allowed to be recorded in the books of the NGO. The accounts must me audited by the Chartered Accountant and a copy of the same is required to be filed with the appropriate authority.