Small NGOs to be exempted from compulsory audit?
The Ministry of Economic Development
proposes exempting small NGOs from compulsory audit
Audits (Amendment) Bill which the ministry submitted to the government on 29 January provides for exempting NGOs whose
annual income does not exceed 3 million roubles per annum from compulsory
audit. This proposal, if approved, would not affect non-state pension funds or
NGOs receiving finance from abroad. It is to be included in a bill containing a
raft of measures for the support of socially oriented NGOs for the period up
Miloslavskaya, member of the public chamber and director of the Russian branch
of the International Centre for Non-commercial Law told ASI: ‘This holds out
the possibility of the less well resourced NGOs not having to spend money on
audits under the legislation. Naturally these are very expensive for them’ and
she added that ‘amending the law would afford them some relief’. So she
concludes that if the proposal is approved, it would be very useful for small
organisations and have a positive affect on their activities.
dean of the law faculty at Moscow State University, Elena Abrosimova, agreed
with Ms Miloslavskaya, voicing support for the initiative. She explained to ASI
that small NGOs were unable to finance the conduct of an audit. So exempting
them from the obligation would remove a burden.