COMPLIANCE MANAGEMENT

PURPOSE OF THIS PROCESS

Compliance with legal and statutory regulations are paramount to the successful running of the Trust’s operations. It is therefore very important that we understand and comply with all the relevant legal requirements. This process lays down the many compliance and regulatory norms that the Trust must follow.

 

COMPLIANCE POLICY

The Compliance Policy of the Trust entails the following:

❖ Maintain KYC information of all stakeholders (donors, volunteers, Cluster Leads, auditors, consultants, vendors, beneficiaries, schools and Trustees).
❖ Set up a compliance monitoring team.
❖ Formulate a Compliance Redressal System
❖ Identify all legal and statutory requirements.
❖ Avoid delays in submitting the statutory returns.
❖ Maintain evidences for all receipts and payments.
❖ Monitor the safety of the children.
❖ Cash donations more than 3000 are not accepted.

LIST OF MANDATORY STATUTORY COMPLIANCES

Here is a list of the legal and statutory compliances the Trust must adhere to:
1. Submission of Annual Audited Accounts
2. Release of the Annual Report, covering balance sheets, P&L statements for the year in review.
3. Important Resolutions
4. FCRA filings
5. Fund utilisation certificates by the chartered accountants
6. TDS filings (applicable only if the Trust employs people, vendor payments, etc.).
7. GST filings (based on applicability; may be NIL returns).
8. PF filings (applicable only if the Trust employs people).

 

LIST OF MANDATORY STATUTORY REGISTRATIONS

Here is the list of mandatory statutory registrations that need to be in place:
1. Trust Deed
2. PAN Card for the Trust
3. TAN Registration
4. GST Registration (if applicable)
5. Bank Accounts
6. FCRA Registration
7. 12A Certificate
8. Registrations towards ESI, PF, Gratuity (applicable when the Trust has employees).
9. MOA
10. AOA

LIST OF MANDATORY MANAGEMENT ACTIVITIES

Here is the list of mandatory management activities that have be carried out:
1. Annual General Body Meeting
2. Appointment/Re-appointment/Replacement of Trustees in line with the Trust Deed
3. Communicating changes in the management, if any, to the Trust’s bankers.

 

OTHER VERIFIABLE RECORDS

Apart from the filings and maintenance of registers, the Trust needs to keep the following records ready
and available all the time for the law enforcement agencies to check:

❖   The Donors’ List

❖   Beneficiaries’ List

❖   Proof of benefits provided (photos, videos, brochures)

❖   Proof of events conducted (event-based evidences)

❖   Books of Accounts

INTERNAL AUDIT OF COMPLIANCE

All compliances are to be verified by the internal audit team once every three months and the reports are to be shared with the Management Team. Any deficiencies evidenced must be resolved without undue delay.