Chapter VI FINANCE AND ACCOUNTS

(1) The amounts received from any of the following sources shall form part of the University Fund,-

1. (a) any contribution or grant made by the University Grants Commission or the Central Government;
2. (b) any contribution or grant made by the State Government;
3. (c) any bequests, donations, endowments or other grants made by private individuals or institutions;
4. (d) the income received by the University from fees and charges;
5. (e) any contribution or bequests from the Industries. traders or entrepreneurs;
6. (f) any contribution or endowments from foreign Governments or any foreign Institutions or companies subject to any law for the time being in force;
7. (g) the amounts received from any other source.

1. (2) The said fund shall be kept in a Scheduled Bank as defined in the Reserve Bank of India Act, 1934, or in a corresponding new bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 or may be invested in securities authorised by the Indian Trusts Act, 1882, as may be decided by the Syndicate.
2. (3) The said Fund may be employed for any of the purposes of the University in the manner prescribed by the Statutes. 1[(4) No part of the income of the University shall be utilised directly or in directly for the benefit of any Officer or Authority of the University or any other person who has made substantial contribution to it or of any relative of such Officer or Authority or person or any relative of such officer or Authority or person has a substantial interest.] 1. Deemed to have been Inserted by Act 54 of 2020 w.e.f. 12.09.2001

(1) The annual accounts of the University shall be prepared under the direction of the Syndicate.

1. (2) the Annual Accounts so prepared shall be considered by the Academic Council at its next earliest meeting. The Academic Council may pass a resolution with reference thereto and communicate the same to the Syndicate. The Syndicate shall consider the

suggestions made by the Academic Council and take such action thereon as it thinks fit and shall inform the Academic Council at its next meeting the action taken by it or the reasons for not taking action.

1. (3) The accounts of the University shall be audited by the 1[Principal Director, Karnataka State Audit and Accounts Department] once in a year, in the month of April.
2. (4) The Accounts so audited will be placed before the Academic Council and the Syndicate and thereafter transmitted to the State Government with comments before the end of September each year. The State Government shall lay the same before both Houses of the State Legislature at their next earliest session. 2[(5) The University shall, where its total income as computed under the Income Tax Act, 1961(Central Act 43 of 1961) without giving effect to the provisions of sections 11 and 12 of that Act exceeds the maximum amount which is not chargeable to income- tax in any previous year, get its accounts for that year audited by an accountant as defined in the Explanation to sub-section (2) of section 288 of the Income Tax Act, 1961 and furnish along with its return of income for the relevant assessment year the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed, in accordance with clauses (b) and (ba) of sub-section (1) of section 12A of the Income Tax Act, 1961.
3. (6) The University shall utilize its income and movable and immovable property

those specified in sub-section (3) of section 11 of the Income Tax Act, 1961 and shall not distribute its income or property to any person by way of profit, dividend and interest or in any other manner.]

1. Deemed to have been Substituted by Act 54 of 2020 w.e.f. 19.06.2020 2. Deemed to have been Inserted by Act 54 of 2020 w.e.f. 12.09.2001

(1) The Syndicate shall prepare with the assistance of the Finance Officer before such date as may be prescribed by the Statutes, the financial estimates for the ensuing year and get them scrutinised by the Finance Committee and place the same before the Academic Council.

1. (2) The Syndicate may, in cases where expenditure in excess of the amount provided in the budget is to be incurred or in cases of urgency, for reasons to be recorded in writing incur expenditure subject to such restrictions and conditions specified in the Statutes. Where no provision has been made in the Budget in respect of such excess expenditure, a report shall be made to the Academic Council at its next meeting.
2. (3) The budget estimates of the University shall be prepared keeping in view the anticipated grants from the State Government and all other sources including mobilisation of its resources. However, supplementary budget estimates may be placed before the Syndicate in October every year in anticipation of any additional grants, but, no expenditure on this part should be incurred unless such additional grants are received.
3. (4) The University shall, without the prior approval of the State Government not divert for other purposes earmarked funds or revise scales of pay of its staff or implement any

scheme which involves any matching contribution from the State Government or a scheme which imposes a recurring liability on the State Government after the assistance from the sponsoring authorities ceases: Provided that no prior approval is necessary where a scheme or a programme which imposes a recurring liability on the University, but funded by the University Grants

Commission, the Central Government or met out of the interest derivable from a corpus or contribution or donation or endowment instituted by a private sector or individual or institutions and such a recurring liability does not cast any burden on the State Government and the entire expenditure in that respect is met out of the university funds.

(1) The State Government shall have the power to direct, whenever deemed necessary, an audit of the accounts of the University, including those of the institutions managed by it, by such auditors as it may specify.

1. (2) Whenever the accounts of the University are audited by the Accountant General and the report thereof with observations or in respect of the items held for want of clarifications are made available to the University for further comments or remarks the

Annual Report.- (1) The Syndicate shall prepare the annual report containing all the particulars highlighting the activities of the University, target and achievements concerning each financial year and submit it to the Academic Council before 30th June. The

Academic Council may pass resolutions thereon and refer back the annual report to the

Syndicate for compliance. The Syndicate shall take action in accordance therewith. The action taken thereon shall be intimated to the Academic Council at its earliest next meeting.

1. (2) Copies of the annual report incorporating the resolutions of the Academic Council

earliest sessions.