ARTICLE 8: AUDIT
Posted: Thu Sep 11, 2025 12:44 am
ARTICLE 8: AUDIT
8.1 Annual Audit:
KPRF shall maintain proper financial records and may conduct an annual audit or financial review of Federation accounts.
If KPRF is registered as a Society or any other legal entity, the annual audit shall be conducted by an independent Chartered Accountant, qualified auditor, or competent person appointed by the KPRF Leadership / Managing Committee, as required by law.
If KPRF is functioning as an unincorporated association, the Managing Committee may still conduct an internal financial review or independent audit for transparency and proper record keeping.
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8.2 Scope of Audit:
The audit or financial review shall verify and examine:
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8.3 Audit Report:
A written audit report, financial statement, or financial review report shall be submitted to the Permanent President, Founder, Treasurer, Secretary, and Managing Committee after completion.
The report may include income, expenditure, balance, assets, liabilities, pending dues, sponsor details where applicable, and observations regarding financial management.
KPRF shall maintain audit reports, financial summaries, receipts, payment records, bank records, and supporting documents in physical or digital form for a minimum period of ten (10) years, wherever practical.
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8.4 Member Access:
Active KPRF members may request to review audited financial statements or approved financial summaries by submitting a written request to the Secretary or Treasurer.
Such review shall be conducted only at a time, place, and manner approved by the KPRF Leadership / Managing Committee.
Members shall not copy, photograph, publish, circulate, or misuse financial records, donor details, sponsor details, bank information, private documents, or confidential records without written approval from KPRF.
The Committee may refuse access to sensitive, confidential, personal, legal, or bank-related information if disclosure may harm the Federation or violate privacy.
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8.5 Special Audit:
The Permanent President, Founder, Treasurer, Secretary, or Managing Committee may order a special audit or financial review at any time if:
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8.6 Regulatory Compliance:
If KPRF is registered under the Tamil Nadu Societies Registration Act, 1975, or any other applicable law, all audits, accounts, filings, and financial records shall be maintained according to the applicable legal requirements.
KPRF shall comply with applicable tax, banking, accounting, society registration, and financial regulations wherever required.
The Managing Committee may seek assistance from a Chartered Accountant, auditor, legal advisor, or competent professional for compliance matters.
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8.7 Financial Irregularities:
Any financial irregularity, false account, hidden collection, unauthorized cash handling, misuse of Federation funds, fake bill, inflated expense, private use of KPRF money, or manipulation of financial records shall be treated as a serious disciplinary offence.
Depending on the seriousness of the matter, KPRF may take action including recovery of money, removal from office, suspension, expulsion, police complaint, legal action, or any other lawful remedy.
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8.8 Final Authority on Financial Review:
The final decision regarding audit appointment, audit scope, financial review, member access, financial explanation, and action on audit findings shall rest with the KPRF Leadership / Managing Committee, subject to this Constitution and the prevailing laws of India.
8.1 Annual Audit:
KPRF shall maintain proper financial records and may conduct an annual audit or financial review of Federation accounts.
If KPRF is registered as a Society or any other legal entity, the annual audit shall be conducted by an independent Chartered Accountant, qualified auditor, or competent person appointed by the KPRF Leadership / Managing Committee, as required by law.
If KPRF is functioning as an unincorporated association, the Managing Committee may still conduct an internal financial review or independent audit for transparency and proper record keeping.
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8.2 Scope of Audit:
The audit or financial review shall verify and examine:
- Race entry fee collections
- Training toss fee collections
- Donations and sponsorships
- Prize funds and prize payments
- Transport and liberation expenses
- Race management expenses
- Trophies, cups, certificates, and event expenses
- Website, forum, printing, and administrative expenses
- Cash, bank balance, UPI payments, and digital transactions
- Assets, equipment, race baskets, clocks, ETS systems, seals, and other Federation property
- Liabilities, pending payments, advances, and dues
- Any suspected financial irregularity, misuse, misappropriation, or fraud
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8.3 Audit Report:
A written audit report, financial statement, or financial review report shall be submitted to the Permanent President, Founder, Treasurer, Secretary, and Managing Committee after completion.
The report may include income, expenditure, balance, assets, liabilities, pending dues, sponsor details where applicable, and observations regarding financial management.
KPRF shall maintain audit reports, financial summaries, receipts, payment records, bank records, and supporting documents in physical or digital form for a minimum period of ten (10) years, wherever practical.
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8.4 Member Access:
Active KPRF members may request to review audited financial statements or approved financial summaries by submitting a written request to the Secretary or Treasurer.
Such review shall be conducted only at a time, place, and manner approved by the KPRF Leadership / Managing Committee.
Members shall not copy, photograph, publish, circulate, or misuse financial records, donor details, sponsor details, bank information, private documents, or confidential records without written approval from KPRF.
The Committee may refuse access to sensitive, confidential, personal, legal, or bank-related information if disclosure may harm the Federation or violate privacy.
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8.5 Special Audit:
The Permanent President, Founder, Treasurer, Secretary, or Managing Committee may order a special audit or financial review at any time if:
- Financial fraud is suspected
- Misappropriation or misuse of funds is alleged
- Race fee collections are disputed
- Prize payments are questioned
- Assets or equipment are missing or damaged
- A serious financial complaint is received
- The Committee believes a special review is necessary for transparency
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8.6 Regulatory Compliance:
If KPRF is registered under the Tamil Nadu Societies Registration Act, 1975, or any other applicable law, all audits, accounts, filings, and financial records shall be maintained according to the applicable legal requirements.
KPRF shall comply with applicable tax, banking, accounting, society registration, and financial regulations wherever required.
The Managing Committee may seek assistance from a Chartered Accountant, auditor, legal advisor, or competent professional for compliance matters.
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8.7 Financial Irregularities:
Any financial irregularity, false account, hidden collection, unauthorized cash handling, misuse of Federation funds, fake bill, inflated expense, private use of KPRF money, or manipulation of financial records shall be treated as a serious disciplinary offence.
Depending on the seriousness of the matter, KPRF may take action including recovery of money, removal from office, suspension, expulsion, police complaint, legal action, or any other lawful remedy.
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8.8 Final Authority on Financial Review:
The final decision regarding audit appointment, audit scope, financial review, member access, financial explanation, and action on audit findings shall rest with the KPRF Leadership / Managing Committee, subject to this Constitution and the prevailing laws of India.