Chapter V FINANCE, ACCOUNTS, AUDIT APJD KEPORTS

Payments to the Board.- The Government of Himachal Pradesh may pay to the Board, in each financial year, such sums by way of grants or advances as he may consider necessary for the performance of the functions of the Board under this Act.

Borrowing power of the Board.- The Board may, from time to time, with the previous sanction of the Government of Himachal Pradesh and subject to the provisions of this Act and such conditions as it may determine, borrow any sum required for the purposes of this Act:

Funds of the Board Funds of the Board.-

1. (1) The Board shall have two separate funds known as the khadi fund and the village industries fund and all the receipts obtained by the Board from time to time by way of grants, donations, gifts, advances or loans for the purpose of khadi or village industries shall be credited to the khadi fund or, as the case may be, the village industries fund and all payments by the Board for or in respect of khadi or village industries shall be made from the appropriate fund.
2. (2) The Board may accept grants, donations and gifts from the Central Government or the Government of a State or Union territory or any local authority or any body or association whether incorporated or not or any individual for all or any of the purposes of this Act.
3. (3) If at any time the amount available in either of the two funds referred to in sub-section
4. (1) is in excess of the requirements of that fund and the amount available in the other fund is insufficient to meet the requirements of that fund, the Board may, with the previous approval of the Government of Himachal Pradesh transfer from the first mentioned fund the excess amount or such part thereof as may be necessary to the other fund. Explanation:- For the purposes of computing the amount available in either of the two funds, the amounts accepted under sub-section
5. (2) shall not be taken into account.
6. (4) All moneys belonging to the Board shall be deposited with the State Bank of India or a subsidiary bank or where there is no office of the State Bank of India or subsidiary bank, in a Government treasury or be invested in such securities as may be approved by the State Government.
7. (5) The accounts of the Board shall be operated upon by such officers jointly or individually as may be authorised by the Board.

Power of the Board to spend.- Subject to the provisions of section 25, the Board shall have power to spend such sums as it thinks fit on purposes authorised by this Act: Provided that nothing in this section shall be deemed to prevent the Board from spending, with the previous approval of the Government of Himachal Pradesh, such moneys as it thinks fit on any such purpose outside the areas as comprised in Himachal Pradesh immediately before 1st Nov., 1966.

Applications of funds and properties.-

Budget Budget-

1. (1) The Board shall by such date in each year as may be prescribed, prepare and submit to the [Government of Himachal Pradesh] for approval two separate budgets in the prescribed form for the next financial year, to be called the khadi budget and the village industries budget, showing the estimated receipts and expenditure in respect of khadi and village industries respectively during that financial year and the Board shall forward copies of the budget to the Commission for information and remarks, if any.
2. (2) Subject to the provisions of sub-sections
3. (3) and (4), no sum shall be expended by or on behalf of the Board unless such expenditure is covered by a specific provision in the budget approved by the [Government of Himachal Pradesh].
4. (3) The Board may, within the respective limits of the khadi budget and the village industries budget, sanction any re-appropriation from one head of expenditure to another or from a provision made for one scheme to that in respect of another but, subject to the provisions of sub-section
5. (3) of section 22, in no case shall a re-appropriation of funds be made from the khadi budget to the village industries budget or from the village industries budget to the khadi budget : Provided that no re-appropriation from the head "Loan" to any other head of expenditure and vice versa in either budget shall be sanctioned by the Board except with the previous approval of the [Government of Himachal Pradesh].
6. (4) The Board may, within such limits and subject to such conditions as may be prescribed incur expenditure in excess of the limit provided in the budget approved by the [Government of Himachal Pradesh] under any head of expenditure or in connection with any particular scheme so long as the aggregate amount in either budget approved by the [Government of Himachal Pradesh] is not exceeded.

Supplementary Budget.- The Board may, in any year, submit a supplementary budget for the approval of the [Government of Himachal Pradesh] in such form and before such date as the [Government of Himachal Pradesh] may prescribe and the provisions of section 25 shall apply in relation to such supplementary budget.

Annual Report.-

1. (1) The Board shall prepare and forward to the [Government of Himachal Pradesh] in such manner as may be prescribed an annual report within three months from the end of each financial year giving a complete account of its activities, policy and programme during the previous financial year along with a copy of the annual statement of accounts referred to in section 29.
2. (2) The Board shall prepare and forward to the Commission an annual report within three months from the end of each financial year giving a complete account of the funds received by the Board from the Commission and the activities carried on by the Board with respect to those funds during the previous financial year.
3. (3) The report referred to in sub-section
4. (1) together with a copy of the said annual statement of accounts shall be laid on the table of the Legislative Assembly as soon as may be after it is received by the [Government of Himachal Pradesh].

Returns and Statements.-

1. (1) The Board shall furnish to the [Government of Himachal Pradesh] and the Commission at such time and in such form and manner as may be prescribed or as the [Government of Himachal Pradesh] or the Commission may direct, such returns and statements and such particulars in regard to any proposed or existing programme for the promotion and development of khadi and village industries as the [Government of Himachal Pradesh] or as the case may be, the Commission may, from time to time, require.
2. (2) All returns, statements and particulars furnished by the Board to the [Government of Himachal Pradesh] under sub-section
3. (1) shall, as soon as possible after they are so furnished, be laid on the table of the Legislative Assembly.

Accounts and Audit.-

1. (1) The Board shall maintain proper accounts and other relevant records and prepare an annual statement of accounts including the profit and loss account and the balance sheet in such form and in such manner as may be prescribed.
2. (2) The accounts of the Board shall be audited by such person as the [Government of Himachal Pradesh] may appoint in this behalf.
3. (3) The auditor or auditors appointed by the Commission shall have the right to audit and inspect the accounts of the Board pertaining to the funds advanced by the Commission.
4. (4) The auditors appointed under sub-sections
5. (2) and
6. (3) shall, in relation to such audit, generally have such rights, privileges and authority as may be prescribed and shall, in particular, have the right to demand the production of books, accounts, vouchers and other documents in connection with the audit and to inspect any of the offices of the Board.
7. (5) The accounts of the Board as certified by such auditors together with the audit report thereon shall be forwarded annually to the [Government of Himachal Pradesh] and the Commission before such date as the [Government of Himachal Pradesh] may specify in this behalf.
8. (6) The Board shall comply with such directions as the [Government of Himachal Pradesh] may, after perusal of the reports of the auditors, think fit, to issue.