Charities and Societies Proclamation (proc. no.621/2009)

SECTION SIX
CHARITY AND SOCIETY ACCOUNTS AND
REPORTS
77. Duty to Keep Accounting Records
1/ The Officers of a Charity or Society shall ensure that accounting records are kept inrespect of the Charity or Society which are sufficient to show and explain all the transactions and disclose at any time.
2/ The accounting records shall, in particular, contain entries showing from day to day all sums of money received and expended by the Charity or Society, and the matters in respect of which the receipt and expenditure takes place; and record of the assets and liabilities of the Charity or Society.
3/ Charities and Societies may not receive anonymous donations and shall at all times keep records that clearly indicate the identity of donors.
4/ The Officers of a Charity or Society shall preserve any accounting records made for the purposes of this Article for at least 5 years from the end of the financial year of the Charity or Society in which they are made.
5/ Unless the Agency consents in writing to the records being destroyed or otherwise disposed of,
where a Charity or Society ceases to exist within the period of 5 years mentioned in sub-article (4) as it applies to any accounting records, the obligation to preserve those records in accordance with that sub-article shall continue to be discharged by the last officers of the Charity or Society.
78. Annual Statements of Accounts
1/ Any Charity or Society shall submit to the Agency an annual statement of accounts prepared in accordance with acceptable standards.
2/ Notwithstanding sub-article (1) of this Article, Charities and Societies whose annual flow of funds does not exceed Birr 50,000.00, (fifty thousands)the statement of accounts may choose to prepare a receipts and payments account and a statement of assets and liabilities.
3/ The Officers of a Charity or Society shall preserve any statement of accounts and related documents prepared under sub-article
(1) and (2) of this Article for at least 5 years from the end of the financial year.
79. Annual Examination of Accounts
1/ Any Charity’s or Society’s account shall be examined annually by a Certified Auditor or internal auditor or an auditor designated by the Agency.
2/ Any Charity or Society shall be audited by an External Auditor where its annual gross income immediately preceding the specified budget year is more than Birr 100,000.00
(hundred thousands).
3/ Notwithstanding sub-article (2) of this Article, examination of account may be conducted by an external or internal auditor or an auditor designated by the Agency any time according to the directives issued by the Minister.
4/ Where it appears to the Agency that the account of a Charity or Society is not audited within five months from the end of that year or to be audited by a certified external auditor, the Agency may appoint an Auditor.
5/ In accordance with Sub-article (4) of this Article, the expenses of any audit carried out by an Auditor appointed by the Agency shall be paid by the Charity or Society concerned, or where at faults the Officers of the Charity or Society.
80. Annual Activity Report
1/ The Officers of a Charity or Ethiopian Resident Society shall prepare and transmit to the Agency an annual activity report on the major activities and relevant information regarding the Charity or Society.
2/ The annual activity report required under sub-article (1) of this Article shall be transmitted to the Agency within three months from the end of that financial year or within such period as the Agency may for any special reason require.
3/ Every such annual activity report shall have attached to it the annual statement of accounts.
81. Disclosure of Annual Activity Report
Any annual activity report or other document kept by the Agency, when requested by a concerned body, may be made open to the public at any reasonable time if the Agency or the Sector Administrator or the Charity and Society so decide.
82. Reporting to other Persons
Nothing in this part shall prohibit the rules of a Charity or Society from requiring that books of account, audit reports and annual reports be submitted to persons or organizations in addition to which reports are made under this part.
83. Notification of Bank Accounts
The officers of a Charity or Society shall report to the Agency annually and upon request about all the bank accounts of the Charity or Society with necessary particulars.

Ethiopia

Published by

Abrham Yohannes

Abrham Yohannes Hailu Licensed Lawyer & Consultant

3 thoughts on “Charities and Societies Proclamation (proc. no.621/2009)”

  1. I need a lawyer who can assit a foreign NGO registration in Ethiopia. The purpose of the NGO is to assit Amhara freedom fighters and tackling the TPLF criminal leaders in throughout the country. I mean it.

  2. It is nice to hear this good news! I want to thank you so much, this site has been very useful regarding Ethiopian legal issues. Please keep on what you are doing!!! Keep it up!

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.