Wednesday, August 26, 2009

Audits of Sikkim NGO's


State Govt to ask audit reports from 1843 NGOs registered in Sikkim
GANGTOK, August 25: Following the questions raised in the Sikkim Legislative Assembly during the recent budget session on the activities of NGOs in the State, the State Government is determined to weed out dubious and so-called NGOs from the list of 1843 registered NGOs.
For a small State like Sikkim with a population barely touching 6 lakhs, 1843 NGOs being registered means that there is an NGO for every 326 persons in Sikkim.
The figures of 1843 registered NGOs in Sikkim had been tabled by the concerned Minister in the Assembly. Question had also been asked over the quantum of fund received by each NGP from the State government, Centre and foreign donors.
Regarding this question, the Law department had replied that the quantum of fund received by each NGO the State, Centre, foreign nations and any other sources will be available only after submission of the annual/audit report by the associations as required under section 5 (I) of the Sikkim Regulation of Societies, Associations and Other Voluntary Organizations Act, 2008.
The Act had come into force on July, 2008 and has completed one year of its commencement and as per the sections of the Act, the associations are required to submit the annual audit report along with annual report of activities during the preceding year.
The field of activities of each NGO was supposed to be looked into by the State government after submission of the annual report by the associations.
Following up the assurances given in the Assembly, the Law department is set to formally issue a circular directing all the associations, organizations (government/non-governmental) managing committees, societies, samitis and clubs to submit their annual report/audit report as per the above Act.
The above bodies will also to be directed to renew their registration on expiry of a period of one year from the date of registration on payment of Rs. 500 on or before September 30 this year.
The payment of registration renewal by 1843 NGOs will mean revenue of Rs. 9.2 lakhs to the State exchequer.
Failure to renew will summarily attract penalties as per the Act.
This upcoming measure to rein in the mushrooming of NGOs is said to ensure credibility of the NGOs. Barring some, many NGOs have been just registered for sake of name and self-importance by the office bearers while other NGOs are interested only in funds.
Some NGOs have been propped up to secure projects from various donors including the State and Central governments. Some NGOs just exist on paper only, it is informed while many are defunct.
Study of annual report will help the State government to understand the source of funds among the NGOs and could assist the government to formulate more policies to stop the mushrooming of dubious NGOs, it is claimed.