Our client is an Endowment Fund and as per the criterion laid down in ATR-14, it falls into the category of “Medium Size Entity”, though the volume of transactions is small.
The main object of the Fund is to provide perpetual source of income to supplement the income of the parent organization which is an educational institution running on commercial lines but also receives grants from the government regularly.
Guidance is required as to whether the fee for the audit of the Fund should be charged as per paragraph 11 or paragraph 4 of the subject ATR.
The Committee has examined your enquiry and is of the opinion that ATR -14 appears to apply to the said organization provided that it is neither charitable institution nor a ‘not for profit organization’.
(July 8, 2010)