20. Financial resources

The financial resources of an Incorporated Organisation may consist of the following:

• (a) fees collected by the Incorporated Organisation for services provided to the Founding Members or Ordinary Members;
• (b) grants and donations received by the Incorporated Organisation and accepted by its Board;
• (c) any other resources approved by its Board in accordance with these Regulations and the Rules.

21. Accounting Records of Incorporated Organisations

(1) An Incorporated Organisation must keep Accounting Records that are sufficient to show and explain its transactions so as to:

• (a) disclose with reasonable accuracy the financial position of the Incorporated Organisation at any time; and
• (b) enable the Founding Members and the Board to ensure that any accounts prepared by the Incorporated Organisation under this Part comply with the requirements of these Regulations and the Rules.

(2) An Incorporated Organisation must ensure that its Accounting Records are:

• (a) kept at the place in the AIFC that the Founding Members consider appropriate, except so far as the Rules otherwise require; and
• (b) preserved by the Incorporated Organisation for at least 6 years after the day they are created or, if the Rules prescribe another period, the other period; and
• (c) open to inspection by a Founding Member at all reasonable times; and
• (d) otherwise kept and maintained as may be prescribed by the Rules.

(2-1) If an Incorporated Organisation, for whatever reason, ceases to exist or ceases to be an Incorporated Organisation within the meaning of these Regulations, the Founding Members immediately before the Incorporated Organisation ceases to exist or ceases to be an Incorporated Organisation shall ensure that its Accounting Records are preserved for at least 6 years after the date of such cessation.

(3) Contravention of this section is punishable by a fine.

22. Accounts

(1) The Founding Members of an Incorporated Organisation must ensure that accounts are prepared in relation to each financial year of the Incorporated Organisation within 6 months after the end of the financial year and that the accounts comply with the requirements of this section.

(2) The accounts must:

1. (a) be prepared in accordance with accounting principles or standards prescribed by the Rules or otherwise approved by the Registrar of Companies; and
2. (b) show a true and fair view of the financial position of the Incorporated Organisation; and
3. (c) comply with any other requirements of these Regulations and the Rules.

(3) The Founding Members must approve the Incorporated Organisation’s accounts and must ensure that they are signed on their behalf by at least 1 of them.

(4) The accounts must be examined and reported on by an Auditor, only if the gross annual income of an Incorporated Organisation is more than 500,000 USD.

(5) An Incorporated Organisation must file its audited accounts for a financial year with the Registrar of Companies within 7 days after the day the accounts are approved by the Founding Members and reported on by an Auditor.

(6) Contravention of this section is punishable by a fine.