With many of the non-governmental organisations (NGOs) receiving huge funds from national and international donors, the Institute of Chartered Accountants of India, recently released a guide on accounting and auditing for these NGOs with a view to ensuring true and fair presentation of financial statements.
The president of the institute, R. Bupathy, told reporters that the NGOs or non-profit organisations were considered one of the major players in the socio-economic process in the country.
He said considering the fact that there were over 25,000 NGOs and the “mind-boggling'' amount involved, they should ensure optimum utilisation of funds and maintain proper accounts of the funds received for public welfare to bring transparency and accountability.
He said the purpose of bringing out the guide was to ensure uniformity in accounting procedure as different accounting practices were being followed by the NGOs and the financial information provided by them was also different.
He said, in the long run, the technical guide could be made into standards, which the NGOs might adhere to and was open to having discussion with the Government in this regard.
Sachin Tendulkar's case
Mr. Bupathy said the disciplinary committee of the institute would take up the second hearing on the allegations levelled by cricketer, Sachin Tendulkar, against his former chartered accountant next month.
Mr. Tendulkar is locked in a legal battle with his former chartered accountant, Madhav Bhatkhande, who charged him Rs. 42 lakhs for managing his accounts since 1989 and offering him advice on taxation. On a complaint from the cricketer, the institute set up a five-member committee and he appeared before it on April 3.
Asked whether a final decision would be taken at the second hearing, Mr. Bupathy said it was dependent on the evidence furnished by both the parties.