Funds to NGOs and its Auditing

This Ministry of Social Justice & Empowerment launched an NGO portal viz. www.ngograntssje@gov(.)in for mandatory online submission and processing of GIA applications w.e.f. 01-04-2015. During the year 2014-15, 4174 NGOs have submitted applications for grants-in-aid for implementing the schemes of welfare of Scheduled Castes, Other Backward Classes, Senior Citizens, Persons with Disabilities and Drug & Alcohol abuse prevention, on this portal. Of these, 1360 NGOs were sanctioned funds for implementing the schemes.

The guidelines of the schemes do not stipulate auditing of the reports by Chartered Accountants authorized by the Ministry. After release of grants-in-aid to NGOs, the final accounts for a financial year are required to be rendered by them with utilization certificate and audited accounts signed by a chartered accountant within six months of the close of the financial year. In case the NGOs (i) do not get their accounts audited (ii) do not follow the norms, and (iii) do no maintain their accounts properly then no further grants-in-aid is released to the organization. Also, the Ministry can initiate action to blacklist such organization and take legal action for recovery of funds released to them.

This information was given by the Minister of State, Social Justice & Empowerment, Shri Vijay Sampla in a written reply to a question in Rajya Sabha here today.

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