New Delhi : Delhi-based chartered accountancy firm SARC & Associates has been hired to audit the Prime Minister’s Citizen Assistance and Relief in Emergency Situations (PM CARES) Fund, according to information given by the fund’s administrators.
The independent auditor has been appointed for three years. The audit will be conducted at the end of a financial year, as per details given in the set of frequently asked questions on the Fund. The appointment is significant because critics have questioned the rationale for a fund other than the Prime Minister’s National Relief Fund (PMNRF) for relief work and have also sought more transparency about the usage of monies from the Fund.
Charitable trusts get income tax exemption and therefore need to get audited by a chartered accountant and report to the tax department. Over the last few years, the department has tightened the rules governing charitable trusts to ensure that funds received are used for intended objective and to boost compliance. The department has also stepped up disclosure requirement of trusts in the audit reports.