ABC Foundation, a registered NGO based in Mumbai, launched a nationwide donation drive during the year 2024-25 to support victims of a flood in Uttarakhand. The NGO received substantial donations from individuals, corpor

In the given situation, the audit programme should include the following specific points for audit of receipts and remittances of donation. Receipt of Donations: Internal Control System: particularly w.r.t. division of responsibilities in respect of authorized collection of donations, custody of receipt books, and safe custody of money. Custody of Receipt Books: Existence of system regarding issue of receipt books, whether unused receipt books are returned and the same are verified physically including checking of number of receipt books and sequence of numbering therein. Receipt of Cheques: Receipt Book should have carbon copy for duplicate receipt and signed by a responsible official. All details relating to date of cheque, bank's name, date, amount, etc. should be clearly stated. The cheque should be drawn in the name of NGO only. Bank Reconciliation: Reconciliation of bank statements w.r.t. all cash deposits not only w.r.t. date and amount, but also w.r.t. receipt book. Cash Receipts: Register of cash donations to be vouched more extensively. If addresses are available of donors who had given cash, the same may be cross-checked by asking entity to post thank you letters mentioning amount, date and receipt number. Foreign contributions, if any, to receive special attention to compliance with applicable laws and regulations. Remittance of Donations to Different NGOs: Mode of spending Remittance: All remittances are through account payee cheques. Remittances through Demand Draft would also need to be scrutinized thoroughly w.r.t. recipient. Confirming Receipt of Remittance: All remittances are supported by receipts and acknowledgements. Identity: Recipient NGO is a genuine entity. Verify address, 12A & 80G Registration Number etc. Direct Confirmation Procedure: Send confirmation letters to entities to whom donations have been paid. Donation Utilisation: for providing relief to flood victims and not for any other purpose. System of selecting NGOs to whom donations have been sent. Statutory compliances for donation made