—Guide
CSR Fund Utilisation Certification: What Implementing Agencies and Companies Need
How CSR fund utilisation is certified — the CFO's certification under the CSR Rules, reports from implementing agencies, unspent CSR accounts, impact assessments and annual reporting.
Companies spending on CSR must be able to show that funds were used for the approved projects. That puts obligations on both the company and the NGOs or foundations implementing its projects. This guide explains how certification works.
The Company's Obligation
Under the Companies (CSR Policy) Rules, the board must satisfy itself that CSR funds disbursed have been used for the approved purposes and in the approved manner, and the Chief Financial Officer (or the person responsible for financial management) must certify this.
What Companies Ask From Implementing Agencies
- Utilisation certificates, often certified by a CA.
- Project progress reports with outputs and beneficiary data.
- Separate accounting for the company's funds.
- Supporting bills and records on request.
- Impact assessment support for larger projects.
Eligibility of Implementing Agencies
Implementing agencies must be registered with the MCA by filing Form CSR-1, and generally must have income tax registration for charitable entities.
Unspent CSR
Unspent amounts relating to ongoing projects must be transferred to an Unspent CSR Account within the time allowed after the year-end and spent within three years. Other unspent amounts go to specified funds. Accurate utilisation reports help companies calculate unspent amounts correctly.
Impact Assessment
Companies with larger CSR obligations must carry out impact assessments for larger projects through independent agencies.
Annual Reporting
Companies report CSR spending in the board's report and in the MCA's CSR form. Implementing agencies' certified reports underpin these disclosures.
Getting Help
Think Filing certifies CSR utilisation for NGOs and supports companies with CSR compliance.