Fund Utilisation Certificate

A Fund Utilisation Certificate (FUC) is an official document issued by a Chartered Accountant (CA) that certifies the proper use of funds allocated for specific projects, grants, or loans. This certificate plays a crucial role in demonstrating financial transparency and accountability. Here are the key components that should be included in a Fund Utilisation Certificate:

1. Heading/Title

The certificate usually begins with a clear heading, such as “Fund Utilisation Certificate” or “Certificate of Fund Utilisation.” This title immediately identifies the document’s purpose.

2. Certification Statement

This section includes a formal declaration by the CA, stating that they have reviewed the financial records and verified that the funds were utilized as per the terms and conditions set by the funding agency or grant provider. The statement typically includes phrases like “This is to certify that…” or “I hereby certify that…”

3. Details of the Organization

• Name of the Organization: The full legal name of the entity that received and utilized the funds.
• Address: The official address of the organization.
• Registration Details: Information regarding the organization’s registration, such as its registration number or any relevant legal identifiers.

4. Details of the Funding Source

• Name of the Funding Agency: The name of the entity providing the funds, such as a government department, NGO, or private investor.
• Project or Grant Name: The specific name or title of the project, grant, or loan for which the funds were allocated.
• Sanction Letter Reference: Reference number or date of the sanction letter or agreement under which the funds were disbursed.

5. Amount of Funds Allocated and Utilized

This section provides a detailed breakdown of the financials, including:

• Total Funds Allocated: The total amount of money granted or provided for the project.
• Funds Utilized: The exact amount spent on the project or for the specified purpose.
• Unspent Balance: If applicable, the amount of funds that remain unutilized.

6. Period of Utilisation

This section specifies the time period during which the funds were utilized. It includes:

• Start Date: The date when fund utilization began.
• End Date: The date when the funds were fully utilized or the reporting period ended.

7. Purpose of Fund Utilisation

A description of the specific purposes for which the funds were used. This should align with the objectives or conditions set forth in the funding agreement. It might include categories such as:

• Salaries and Wages
• Equipment Purchase
• Project Expenses
• Operational Costs
• Administrative Costs

8. Supporting Documents

A list or reference to the documents that were reviewed to verify the fund utilization, such as:

• Invoices
• Receipts
• Bank Statements
• Payment Vouchers

This section ensures that all expenditures are backed by proper documentation.

9. Chartered Accountant’s Details

• Name and Signature of the CA: The name of the Chartered Accountant issuing the certificate, along with their signature.
• CA Registration Number: The official firm registration number (FRN) and member registration number (MRN) of the Chartered Accountant.
• Firm Name and Seal: The name of the CA’s firm and the official seal or stamp.
• Date of Issuance: The date on which the certificate is issued.
• UDIN: A 18 digit Unique Document Identification Number.

10. Declaration

A formal declaration confirming that the information provided in the certificate is true and accurate to the best of the CA’s knowledge. This may include a disclaimer noting that the certification is based on the documents reviewed and does not constitute an audit.