Chapter VIII GRANTS, ACCOUNTS AND AUDIT

Fund of the University.-

1. (1) The University shall maintain a fund to which shall be credited,-
   • (a) all moneys provided by the State and Central Governments;
   • (b) all fees and other charges received by the University;
   • (c) all moneys received by the University by way of grants, gifts, donations, benefactions, bequests or transfers;
   • (d) all moneys received by the University from utilization of intellectual property arising from research conducted or rendering advisory or consultancy services by it; and
   • (e) all moneys received by the University in any other manner or from any other source.
2. (2) All moneys credited to the fund of the University shall be deposited in such banks or invested in such manner as may be laid down by the Board by Regulations.
3. (3) The University shall create a corpus fund for long term sustainability of the University, to which shall be credited such percentage of the net income of the University and donations made specifically towards such corpus fund as the State Government may in accordance with the provisions of the Income tax Act notify: Provided that, the Board may also create endowment funds for specific purposes to which donations may be specifically made.
4. (4) The fund of the University shall be applied in such manner and for such purposes as may be specified by the Regulations (towards the expenses of the University including expenses incurred in the exercise of its powers and discharge of its functions etc.).
5. (5) No part of the income of the University shall be utilized directly or indirectly for the benefit of any officers 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 authority of person has a substantial interest.

The Annual Accounts and Audit.-

1. (1) The University shall maintain proper accounts including income and expenditure statements, internal audit report and statement audited by internal auditor specifying investments and other relevant records and prepare its annual statement of accounts including the balance sheet in such form and as per such accounting standard as may be specified by notification by the State Government in consultation with the Principal Director of State Audit and Accounts Department.
2. (2) Where the statement of income and expenditure and the balance sheet of the University do not comply with the accounting standards, the University shall disclose in its statement of income and expenditure and balance sheet, the following, namely:-
   • (a) The deviation from the accounting standards;
   • (b) The reasons for such deviation; and
   • (c) The financial effect, if any, arising out of such deviation.
3. (3) The Annual Accounts so audited shall be placed before the Audit Committee and the Board of Governors along with audit report and thereafter transmitted annually to the State Government with comments before the end of September each year. The State Government shall lay the same before both the Houses of the State Legislature in accordance with such procedure as may be laid down by it.
4. (4) The statement of accounts referred to in sub-section
5. (1) shall on its approval by the Board, be published on the website of the University.
6. (5) The University shall, where its total income as computed under the Income Tax Act 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
7. (2) of section 288 of the Income Tax Act 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
8. (1) of section 12A of the Income Tax Act.
9. (6) The University shall utilize its income and movable and immovable property only for the furtherance of its objects, shall not invest or deposit any income accumulated or set apart for application to charitable purpose in India in any form or mode other than those specified in sub-section
10. (3) of section 11 of the Income Tax Act and shall not distribute its income or property to any person by way of profit, dividend and interest or in any other manner.

1. (1) The Executive Committee shall prepare, with the assistance of the Finance Officer before 15th January, the financial estimates for the ensuing financial year and get them scrutinized by the Finance Committee and the Board of Governors and place the same before the Academic Senate. The Academic Senate shall consider the financial estimates and forward the same, with such modifications as it deems fit, to the Board of Governors for its approval by the end of March every year.
2. (2) The Board of Governors 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 the expenditure subject to such restrictions and conditions as may be specified in the Regulations. Where no provision has been made in the Budget in respect of such excess expenditure, a report shall be made to the Finance Committee for its consideration and advice at its next meeting.
3. (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 the mobilization of its resources. However, supplementary Budget Estimates may be placed before the Board in October every year in anticipation of any additional grants: Provided that, no expenditure on this part shall be incurred unless such additional grants are received.
4. (4) The University shall not, without the prior approval of the State Government, divert for other purposes earmarked funds or revise the 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 is funded by the UGC, or the Central Government or met out of the interest derivable from a corpus or contribution or donation or endowment instituted by private sector or individual or industry 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. (1) The State Government shall have the power to direct, whenever deemed necessary, an audit of the accounts of the University, by such auditors as may be prescribed.
2. (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 University shall, within thirty days from the date of receipt of such report, furnish its comments or remarks to the Accountant General through the State Government.