Under the new Law on Non-Governmental Organizations: if the Organization has been funded from public funds during the reporting year in the amount of five million and more AMD, then its annual financial statements submitted to the public authorities, shall be subject to mandatory auditing in respect of public funding not later than the 15 May of the next year, by an independent auditor selected by the Organization’s assembly.
Today, Karen Zadoyan, President of the Armenian Lawyers’ Association, the EU funded “Commitment to Constructive Dialogue” Project Manager, referred to the accountability issue of the non-governmental organizations in the framework of trainings organized for the NGO representatives.
Before that, he informed that within the framework of the project, the ALA Launched trainings and discussions on the new Law “On Non-Governmental Organizations”. Similar meetings have taken place in 4 marzes and are currently underway in Yerevan. At the same time Karen Zadoyan emphasized that the organizations showed great interest in the trainings, and thus the second meeting took place today.
Karen Zadoyan said that the control over the organization is exercised by the Authorized Body. ” n case of detection of violations by the organization, which can be eliminated by the measures taken by the Organization, the Authorized Body recommends the terms and conditions for eliminating violations to the organization,” said the speaker.
The organizations that have decided to engage in entrepreneurial activity will also be accountable. The new law provides this opportunity as well. But there are a number of nuances, which NGOs should master before engaging in entrepreneurial activity.
The ALA President said that the organization has the right to carry out entrepreneurial activity in accordance with the objectives set out in its Charter, to manage its property and the results of its activities for this purpose, as well as to establish a commercial organization or to become a participant of the commercial organization in the manner provided by law. ” The organization maintains separate accounting of entrepreneurial activities, including information on its involvement in statutory reports. Profit earned as a result of an entrepreneurial activities are used only for statutory purposes of the organization,” Mr. Zadoyan said and emphasized that the scope of beneficiaries should also be clarified.
It should be noted that individual consultations are provided within the framework of the project; the legal team will assist NGOs in harmonization of their statutes with new requirements.
The “Commitment to Constructive Dialogue” Project is implemented with the financial support of the European Union by the “Armenian Lawyers’ Association” NGO in cooperation with its partners; Agora Central Europe o.p.s (an NGO from the Czech Republic), Armenian Center for Democratic Education-CIVITAS, “International Center for Human Development” Public Organization, SME Cooperation Association and Union of Communities of Armenia.
Gevorg Tosunyan
Aleksander Sargsyan
