Chapter VIII Chapter VIII

Finance, Accounts and Audit

Board's Fund.––

1. (1) The Board shall have its own fund.
2. (2) The Board may accept grants, subventions, donations and gifts from the Government or a local authority, or any individual or body, whether incorporated or not, for all or any of the purposes of this Act.
3. (3) All moneys received by or on behalf of the Board by virtue of this Act, all proceeds of land or any other kind of property sold by the Board, all rents and all interests, and profits for works done to private and public agencies and other moneys accruing to the Board shall constitute the fund of the Board.
4. (4) Except as otherwise directed by the Government, all moneys and receipts specified in the foregoing provisions and forming part of the fund of the Board shall be deposited in the State Bank of India or any scheduled Bank or invested in such other form as may be approved by the Government: Provided that the Board may invest any sums not required for immediate use in such securities or debentures as may be approved by the Government.
5. (5) Notwithstanding anything contained in sub-section (4), the Board may deposit in the Reserve Bank of India or in any scheduled Bank any amount not exceeding such sum as may be prescribed for the operation of an account with such bank and such account shall be operated upon by such officers of the Board as may be authorised by the Board and in such manner as may be prescribed. Explanation:–– For the purposes of this sub-section, the "Reserve Bank of India" shall mean the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934 (Central Act 2 of 1934) and a scheduled Bank shall mean a bank included in the second schedule to the said Act.

Subventions and loans to Board.–– The Government may make subventions or advance loans to the Board for the purposes of this Act on such terms and conditions as the Government may determine.

Power of Board to borrow and land.––

1. (1) The Board may, with the previous sanction of the Government and subject to the provisions of this Act and to such conditions as may be prescribed in this behalf, borrow any sum required for the purposes of this Act.
2. (2) Whenever the borrowing of any sum of money has been approved by the Government, the Board may, instead of borrowing such sum or any part thereof from the public, take credit from any bank or any corporation owned or controlled by the Central Government or a State Government on a cash account to be kept in the name of the Board of the extent of such sum or part thereof, and may, with the previous sanction of the Government, grant mortgages of all or nay of the properties vested in the Board by way of security for such credit.
3. (3) Subject to such conditions and limitations as may be prescribed and with the previous approval of the Government, the Board may, for the promotion and execution of any housing improvement or building scheme under this Act, or other financial institutions approved by the Government or with the Life Insurance Corporation of India established under section 3 of the Life Insurance Corporation Act, 1956 (Central Act 31 of 1956).
4. (4) Subject to the provisions of this Act and to such conditions and limitations as may be prescribed, the Board may out of its funds grant loans and advances on such terms and conditions as it may determine to any co-operative society for the construction or improvement of houses.

Guarantee by Government of loans.––

1. (1) The Government may guarantee in such manner as it thinks fit, the payment of the principal and interest of any loan proposed to be raised by the Board on debenture or of either the principal or the interest: Provided that the Government shall, so long as any such guarantees are in force, lay before the Legislative Assembly of Goa in every year during the budget session, a statement of the guarantees, if any, given during the current year and an up-to-date account of the total sums, if any, which have been paid out of the Consolidated Fund of the Territory by reason of any such guarantees or paid into the said Fund towards repayment of money so paid out.

Repayment of loans taken under section 67.–– Every loan taken by the Board shall be repaid by the Board within the period agreed upon by the Board and subject to the provisions of sub-section

1. (2) of section 84 by such of the following methods as may be approved by the Government, namely––
   • (a) from a sinking fund established under section 70 in respect of the loan; or
   • (b) by paying equal yearly or half-yearly instalments of principal or principal and interest, throughout the said period; or
   • (c) if the Board has, before borrowing money on debentures, reserved, by public notice, a power to pay off the loan by periodical instalments and to select by lot the particular debenture to be discharged at particular periods, then, by paying such instalments at such periods; or
   • (d) from money borrowed for the purpose; or
   • (e) partly from the sinking fund established under section 70 in respect of the loan and partly from money borrowed for the purpose.

Establishment and maintenance of sinking fund.––

1. (1) Whenever a loan has to be repaid from sinking fund, the Board shall establish such a fund and shall pay into it every year until the loan is repaid, a sum so calculated that if regularly paid, throughout the period agreed upon by the Board, it would, with accumulations by way of compound interest, be sufficient after payment of all expenses, to pay off the loan at the end of that period.
2. (2) the rate of interest on the basis of which the sum referred to in sub-section
3. (1) shall be calculated shall be such as may be prescribed:

Power to discontinue payments into sinking fund Power to discontinue payments into sinking fund.–– Notwithstanding anything contained in section 70, if at any time the sum standing at credit of the sinking fund established for repayment of any loan is of such amount that if allowed to accumulate at the rate of interest prescribed under sub-section

1. (2) of that section, it will be sufficient to repay the loan at the end of the period agreed upon by the Board, then, the Board may discontinue further annual payment into such fund.

Investment of sinking fund.–– All moneys paid into a sinking fund shall, as soon as possible, be invested by the Board––

1. (a) in Government securities; or
2. (b) in securities guaranteed by the Central Government or a State Government.

Annual examination of sinking fund.––

1. (1) The Government shall cause the said sinking fund to be examined every year and ascertain whether the cash and current value of the securities at credit of such fund are actually equal to the amount which would have accumulated, had investments been regularly made and had the rate or interest as originally estimated been obtained therefrom.
2. (2) The Board shall forthwith pay into the sinking fund any amount which Government may certify to be the deficiency therein after examination as aforesaid, unless the Government specially sanctions a gradual readjustment.

Estimates of income and expenditure to be laid annually before Board.––

1. (1) The Chairman shall, at a special meeting to be held in the month of February in each year, lay before the Board an estimate of the income and expenditure of the Board for the next ensuing year.
2. (2) Every such estimate shall make provision for the due fulfilment of all the liabilities of the Board, and for the efficient administration of this Act.
3. (3) Every such estimate shall differentiate capital and revenue funds, and shall be prepared in such form, and shall contain such details, as may be prescribed.
4. (4) Every such estimate shall be completed and printed and a copy thereof sent, by post or otherwise, to each member at least ten clear days before the date of the meeting at which the estimate is to be laid before the Board.

Sanction of Board to estimates.–– The Board shall consider every estimate so laid before it and shall sanction the same either without modification or with such modification as it may think fit.

Approval of Government to estimates.––

1. (1) Every such estimate, as sanctioned by the Board, shall be submitted to the Government who may, at any time within one month after receipt of the same,––
   • (a) approve the estimate; or
   • (b) disallow the estimate or any portion thereof and return the estimate to the Board for amendment.
2. (2) if any estimate is so returned to the Board it shall forthwith proceed to amend it and shall resubmit the estimate as amended to the Government who may then approve it.

Supplementary estimate.––

1. (1) The Board may, at any time, during the year for which any estimate has been sanctioned, cause a supplementary estimate to be prepared and laid before it at a special meeting.
2. (2) The provisions of sub-section
3. (3) and
4. (4) of section 74, and of section 75 and 76 shall apply to every supplementary estimate.

Adherence to estimate and maintenance of closing balance.––

1. (1) No sum shall be expended by or on behalf of the Board unless the expenditure of the same is covered by a current budget grant or can be met by reappropriation or by drawing on the closing balance.
2. (2) The closing balance shall not be reduced below such limit as may be prescribed.
3. (3) The following items shall be exempted from the provisions of sub-section
4. (1) and (2), namely:––
   • (a) refund of moneys belonging to contractors or other persons held in deposit, and of moneys collected by, or credited to, the Board by mistake;
   • (b) payments due under a decree or order of a Court;
   • (c) sums payable under a compromise of any suit or other legal proceedings or claim effected under this Act;
   • (d) sums payable under this Act by way of compensations; and
   • (e) payments required to meet any emergency.
5. (4) Whenever any sum exceeding rupees ten thousand is expended under clause
   • (c) of sub-section (3), the Chairman shall forthwith report the circumstances to the Board explaining how it is proposed to cover the expenditure.

Definition of cost of management.–– For the purposes of this chapter, "cost of management" means––

1. (a) the allowances and remuneration of the Chairman and the members of the Board.
2. (b) the salaries, fees and allowances and contributions paid in respect of officers and other employees of the Board, except employees who are paid by the day or whose pay is charged to temporary work; and
3. (c) all office expenses incurred by the Board. Explanation:–– For the purpose of clause (c), the expression "office expenses" means expenses incurred for carrying on office work, and includes the rent of office buildings, the provision of furniture therefor, charges for printing and stationery, postage, electricity, telephones, and telegrams, conservancy charges, catering charges incurred in connection with meetings and conferences held by or on behalf of the Board and contributions towards welfare and recreation of the staff of the Board.

Capital account and revenue account.––

1. (1) The Board shall keep a capital account and a revenue account.
2. (2) The capital account shall show separately all expenditure incurred by the Board on each housing, improvement or building scheme.

Credits to capital account.–– There shall be credited to the capital account––

1. (a) all sums (except interest) received by way of betterment fees under this Act:
2. (b) all moneys received on account of loans taken by the Board in pursuance of this Act;
3. (c) all moneys received as grants by the Board for purposes of this Act from the Government;
4. (d) all moneys received by the Board on account of repayment of loans and advances granted under sections 32 and 67;
5. (e) the proceeds of the sale of any land belonging to the Board which was purchased out of any loans or grants;
6. (f) where any land was purchased out of advance from the revenue account the portion of the proceeds of the sale of such land which remains after crediting to the revenue account the amount of such advance;
7. (g) the proceeds of the sale of any movable property (including securities for money invested from the capital account) belonging to the Board;
8. (h) all lumpsums received from any Government in aid of the capital account;
   • (i) all moneys received by the Board in connection with leases;
9. (j) all sums, if any, which the Government directs under sub-section (2) of section 84 to be credited to the capital account; and
10. (k) all moneys realised from the sale of securities by direction of the

Application of capital account Application of capital account.–– The moneys credited to the capital account shall be held by the Board in trust and shall be applied to––

1. (a) meeting all costs of framing and executing housing, improvement or building schemes;
2. (b) meeting the cost of acquiring lands for carrying out any of the purposes of this Act;
3. (c) meeting the cost of constructing buildings required for carrying out any of the purposes of this Act;
4. (d) the repayment of loans from money borrowed in pursuance of this Act;
5. (e) granting of loans and advances under section 32 and 67;
6. (f) making payments in pursuance of section 118 otherwise than for interests or for expenses of maintenance or working;
7. (g) making or contributing towards the cost of surveys in pursuance of section 116;
8. (h) meeting such proportion of the cost of management as may be directed by the Board; and
   • (i) temporarily making good the deficit, if any, in the revenue account at the end of any year;

Credits to revenue account.–– There shall be credited to the revenue

account––

1. (i) all interest received in pursuance of section 56 or section 57
2. (ii) all annually recurring sums received from the Government in aid of the funds of the Board ;
3. (iii) all compensation received by the Board under section 102;
4. (iv) all rents of land vested in the Board;
5. (v) all rents of building vested in the Board;
6. (vi) all interest of loans and advances granted by the Board under section 32 and 67; and
7. (vii) all other receipts by the Board which are not required by section 81 to be credited to the capital account.

Application of revenue account.––

1. (1) The moneys credited to the revenue account shall be held by the Board in trust, and shall be applied to––
   • (a) payment of all charges or payments towards interest or sinking fund due on account of any loan taken in pursuance of this Act, and all other charges incurred in connection with such loans;
   • (b) payment of all sums due from the Board in respect of rates and taxes imposed by the local authority concerned, upon the land vested in the Board;
   • (c) payment of cost, if any, of maintaining a separate establishment for the collection of rents and other proceeds of land vested in the Board;
   • (d) payment of all sums which the Government may direct to be paid to any auditor under section 91;
   • (e) payment of the cost of the management excluding such proportion

thereof as may be debited to the capital account under clause

1. (h) of section 82;
2. (f) payment of all other sums due from the Board, other than those which are required by section 82, to be disbursed from the capital account.

1. (2) The surplus, if any, remaining after making the payment referred to in sub-section
2. (1) shall, subject to the maintenance of a closing balance as required by sub-section
3. (2) of section 78, be invested in the manner laid down in section 72 towards the service of any loans outstanding after the expiry of thirty years from the commencement of this Act, unless the Government otherwise directs.

Power to direct sale of securities in which any surplus of the revenue accounts is invested.–– If at any time after any surplus referred to in sub-section

1. (2) of section 84 has been invested, the Board is satisfied that the investment is not needed for the service of any loan referred to in the sub-section, it may, with the approval of the Government, sell the securities held under the investment.

Advance from revenue account to capital account.––

1. (1) Notwithstanding anything contained in section 84, the Board may advance any sum standing at the credit of the revenue account to the capital account for the purpose of meeting capital expenditure.
2. (2) Every such advance shall be refunded to the revenue account as soon as may be practicable.

Advance from capital account to revenue account.––

1. (1) Any deficit in the revenue account at the end of any year may be made good by an advance from the capital account after obtaining the approval of the Government.
2. (2) Every such advance shall be refunded to the capital account in the following year.

Submission of abstracts of accounts to Government.–– At the end of every year, the Board shall submit to the Government an abstracts of the accounts of its receipt and expenditure for such year, in such form and in such manner as may be prescribed.

Audit of accounts.–– The accounts of the Board shall be examined and audited once every year by such auditor as the Government may appoint in this behalf.

Power of auditor .–– The auditor may––

1. (a) by summons in writing require production of any document, the perusal or examination of which he believes necessary for the elucidation of the accounts;
2. (b) by summons in writing require any person who has the custody or control of any such document or who is accountable therefor to appear in person before him; and
3. (c) require any person so appearing to make and sign a declaration with respect to such document or to answer any question or to prepare and furnish any statement relating thereto.

Remuneration of auditor.— the Board shall pay to the auditor such remuneration as the Government may direct.

Reports and information to be furnished by auditor to Board.—

1. (1) The auditor shall—
   • (a) report to the Board and to the Government any material impropriety or irregularity which he may observe in the expenditure, or in the recovery of moneys due to the Board, or in the accounts;
   • (b) furnish to the Board such information as it may require concerning the progress of his audit;
   • (c) report to the Chairman any loss or waste of money or either property owned by or vested in the board caused by neglect or misconduct, with the names of persons directly or indirectly responsible for such loss or waste; and
   • (d) submit to the Chairman a final statement of audited accounts, together with a report on the result of the audit and duplicate copies thereof to the Government, within a period of three months from the end of the year or within such further period as the Government may allow in the behalf. (2)
   • (a) The auditor may disallow every item contrary to law and surcharge the same on the person making or authorising the making of the illegal payment; and may charge against any person responsible therefor the amount of any deficiency or loss incurred by the negligence or misconduct of that person or of any sum which ought to have been, but is not, brought into account by that person and shall, in every such case, certify the amount due from such person.
   • (b) The auditor shall state in writing the reason for his decision in respect of every disallowance, surcharge or charge and furnish a copy thereof by registered post to the person against whom it is made.
   • (c) If the person to whom a copy of the decision is so furnished refuses to receive it, he shall be deemed to have been duly furnished with the copy, within the meaning of clause (b); and the period of fourteen days fixed in sub-section
2. (4) and
3. (5) shall be calculated from the date of such refusal.
4. (3) For the removal of doubts it is hereby declared that it shall not be open to any person whose negligence or misconduct has caused or contributed to any such deficiency or loss to contend that, notwithstanding his negligence or misconduct, the deficiency or loss would not have occurred but for the negligence or misconduct of some other person.
5. (4) Any person aggrieved by a disallowance, surcharge or charge made under sub-section
6. (2) may, within fourteen days after he has been furnished with a copy of the decision of the auditor, appeal to the Government who shall pass such orders as it thinks fit.
7. (5) Every sum certified to be due from any person by the auditor under this Act shall be paid by such person to the Board within fourteen days after he has been furnished with a copy of the decision of the auditor unless within that time such person has appealed to the Government against the decision under sub-section (4); and such sum if not paid, or such sum as the Government shall declare due, shall be recoverable on an application made by the Board to the Government as if it were an arrears of land revenue.
8. (6) Notwithstanding anything contained in this section, the Government may at any time direct that the recovery of the whole or any part of the amount certified to be due from any person by the auditor under this Act shall be waived it in its opinion, such a course is necessary considering all the circumstance of the case.

Auditor's report to be sent to each member and considered by Board.–– The Chairman shall cause the report of the auditor to be printed and shall forward a printed copy thereof to each member and shall bring such report before the Board for consideration at the first meeting to be held immediately thereafter.

Board to remedy defects pointed out by auditor.–– It shall be the duty of the Board to remedy forthwith any defects or irregularities that may be pointed out by the auditor and to submit a report thereon to the Government.

Statements of accounts and audit report to be forwarded to Government.––

1. (1) The statement of accounts of the Board as certified by the auditor together with the audit report thereon shall be forwarded annually to the Government and the Government may issue such instructions to the Board in respect thereof as it deems fit and the Board shall comply with such instruction.
2. (2) The Government shall––
   • (a) cause the statement of accounts of the Board together with the audit report thereon to be laid annually before the Legislative Assembly of Goa; and
   • (b) cause the statement of accounts of the Board and the audit report to be published in the prescribed manner and make available copies thereof on sale at a reasonable price.

Valuation of assets and liabilities of Board.–– The Board shall have valuation of its assets and liabilities every five years made by a valuer appointed with the approval of the Government; Provided that it shall be open to the Government to direct a valuation to be made at any time it may consider necessary.