CEI Diagnostic Tool – Non-Profit Organisations
Governance Diagnostic Checklist based on the Non-Profit Organisations Act, No. 7 of 2019 (Trinidad & Tobago).
This diagnostic tool is structured as a practical compliance and governance review framework for boards, trustees, controllers, and management of non-profit organisations (NPOs). It reflects statutory obligations under the Non-Profit Organisations Act No. 7 of 2019 and related Registrar General guidance.
Governance Diagnostic Checklist
| Governance Area | Legal Obligation | Relevant Section(s) | Diagnostic Questions | Evidence / Documents |
|---|---|---|---|---|
| Registration | NPO must be registered before operating | s.6 | Is the organisation registered? Is the certificate current? | Certificate of Registration |
| Renewal of Registration | Registration must be renewed annually | s.7 | Has the NPO renewed registration within the required timeframe? | Renewal receipt, Form 3 |
| Constituent Documents | NPO must file constituent documents | s.6(2) | Does the organisation maintain updated governing documents? | Constitution, by-laws, trust deed |
| Register of Controllers | Details of controllers must be kept current | ss.6(2), 15 | Is there an updated list of directors/trustees/controllers? | Register of officers/controllers |
| Notice of Changes | Registrar must be notified of changes | s.15 | Are changes reported promptly? | Filed Form 4, board resolutions |
| Registered Office | NPO must maintain a registered office | ss.6, 15 | Is there a current registered address? | Utility bill, lease, filings |
| Record Keeping | Proper books and records must be maintained | s.16 | Are accounting and operational records up to date? | Financial records, ledgers |
| Retention of Records | Records must be retained | s.16 | Is there a document retention policy? | Records management policy |
| Financial Transparency | Maintain records showing receipt and use of funds | s.16 | Can the organisation trace donations and expenditures? | Audited accounts, bank records |
| Annual Financial Statements | Financial statements must be prepared | s.16 | Are annual financial statements prepared consistently? | Audited or management accounts |
| Monitoring of Transactions | Monitor financial activities to prevent abuse | ss.16, 18 | Are there controls for payments and approvals? | Financial procedures manual |
| AML/CFT Compliance | Must not be used for money laundering or terrorist financing | Act + FIU obligations | Has the organisation conducted AML/CFT risk assessments? | AML/CFT policy, risk assessment |
| Internal Governance | Controllers responsible for compliance | ss.18, 19 | Do board members understand legal duties? | Board induction records |
| Fit and Proper Controllers | Disqualified persons cannot act as controllers | s.19 | Have background checks been conducted? | Declarations, police certificates |
| Cooperation with Registrar | Registrar may request information | ss.10–13 | Can the organisation respond promptly? | Compliance files |
| Inspection Powers | Must facilitate lawful inspections | ss.10–13 | Is there a process for inspections? | Compliance protocol |
| Filing Accuracy | Information must be truthful and complete | ss.6, 7, 18 | Are filings reviewed before submission? | Signed declarations |
| Use of Funds | Funds must advance non-profit purposes | s.3 | Are expenditures aligned with objects? | Budgets, programme reports |
| Restriction on Profit Distribution | Profits cannot be distributed to members | s.3 | Is there a policy prohibiting private benefit? | HR/payroll policies |
| Governance Meetings | Controllers should oversee operations | Best practice | Are board meetings held regularly? | Board minutes |
| Conflict of Interest | Controllers should avoid improper benefit | Fiduciary duties | Is there a conflict-of-interest policy? | Conflict declarations |
| Risk Management | Identify and mitigate risks | s.18 | Does the organisation conduct risk reviews? | Risk register |
| Reporting to Authorities | Information must be supplied | ss.10–13 | Is responsibility assigned? | Compliance calendar |
| Suspension/Cancellation Risk | Registration may be cancelled | ss.8–9 | Has the organisation assessed non-compliance? | Internal compliance review |
| Penalties | Breaches may result in offences | Part V | Are directors aware of liability exposure? | Governance training records |
Key Statutory Obligations — Selected Quotations
Definition of an NPO: “is established primarily for the promotion of a patriotic, religious, philanthropic, charitable, educational, cultural, scientific, literary, historical, artistic, social, professional, fraternal, sporting or athletic purpose…” and “carries on its business without pecuniary gain to its members or officers…”
Registration Requirement: “no one may operate a non-profit organisation… unless it is registered with the Registrar.”
Record Keeping: Section 16 requires proper records relating to activities, transactions, finances, controllers, and operations.
Changes in Particulars: Section 15 requires notification to the Registrar when there are changes to name, address, controllers, constituent documents, or declared purposes.
Disqualified Controllers: Section 19 restricts certain persons from acting as controllers.
Governance Rating System
| Rating | Meaning |
|---|---|
| 0 | Non-compliant |
| 1 | Partially compliant |
| 2 | Fully compliant |
| N/A | Not applicable |
Risk Interpretation:
80–100% = Strong governance
60–79% = Moderate governance risk
Below 60% = Significant compliance exposure
Recommended Governance Policies
- AML/CFT Policy
- Conflict of Interest Policy
- Financial Controls Policy
- Procurement Policy
- Document Retention Policy
- Whistleblower Procedure
- Board Charter / Terms of Reference
- Risk Management Framework
- Donation Acceptance Policy
- Data Protection and Confidentiality Policy