FUND UTILISATION CERTIFICATE
Have you ever wondered where every penny of your allocated funds goes? Whether you’re a project manager, NGO worker, or government official, keeping track of financial resources isn’t just good practice—it’s mandatory. That’s where the Funds Utilization Certificate (FUC) comes into play!
A Fund Utilization Certificate is a document submitted by a recipient to the funding authority to confirm that the funds provided have been used for the specified purpose. It is a critical compliance and audit document that helps maintain transparency, accountability, and trust between the funding agency and the recipient.
A Fund Utilization Certificate is more than just a formal document — it’s proof of accountability, transparency, and proper financial management.
Documents Required:
- Copy of the Grant/Loan Agreement
- Original Receipts & Invoices
- Bank Statements
- Expense Ledger or Statement
- Project Completion or Progress Report
- Auditor’s Report or Verification
FAQs
Most funding agencies provide a prescribed format, but the essential details include: sanctioned amount, utilized amount, purpose, and declaration.
Yes — for small projects or internal donors, self-certified FUCs may be acceptable, but audited certificates add credibility.
An expense report is internal documentation, while FUC is an official certificate submitted to the funding agency.
Yes — but ensure each project has separate utilization details for clarity.
While a properly submitted FUC demonstrates accountability, future funding decisions depend on project performance and agency policies.
Unspent funds must be reported clearly in the FUC and either returned or adjusted as per funding guidelines.
Partial FUCs can be prepared if the funding agency allows staged or interim reporting.