Chapter V UNIVERSITY FUNDS

General Funds.—The University shall have a general fund to which shall be credited,-

1. (i) its income from fees, endowments and grants, if any;
2. (ii) contributions or grants, which may be made by the Government on such conditions as it may impose;
3. (iii) other contributions, receipts, grants, donations and benefactions.

Foundation Fund.—(1) The University shall form a fund called the Foundation Fund from contributions and grants made by the Central Government and the State Government for being credited to that fund and of such other sums of the University which may be credited to the said fund.

1. (2) All the moneys in the Foundation Fund shall be invested in the securities mentioned or referred to in clauses
   • (a) to
   • (d) of section 20 of the Indian Trusts Act, 1882.

Pension and Provident Funds.—(1) Where any pension fund, or provident fund has been constituted by the University for the benefit of its officers, teachers or servants, the State Government may declare that the provisions of the Provident Funds Act, 1925 (Central Act 19 of 1925) shall apply to such fund as if it were a Government Provident Fund.

1. (2) Persons in Government services transferred to the University under section 7 shall be entitled to pension under the [Karnataka] State Civil Services Rules or such other rules as were applicable to them immediately before the transfer and such pension shall be payable by the State Government and shall be an expenditure charged on the Consolidated Fund of the State.

Other Funds.—The University may have such other funds as may be prescribed by the Statutes.

Management of Funds.—The General Fund, the Foundation Fund and the other funds of the University shall be managed according to the provisions laid down in the Statutes.

Government Grants.—(1) The State Government shall, every year, make non-lapsable lumpsum grants to the University as follows:—

1. (i) a grant not less than the net expenditure incurred in the year 1961-62 on such of the activities and institutions of the Agriculture, Animal Husbandry and other Government departments as are transferred to the University;
2. (ii) a grant not less than the estimated net expenditure of pay and allowances of staff, contingencies, supplies and services of the University other than in respect of the activities and institutions referred to in clause (i);
3. (iii) a grant to meet such additional items of expenditure recurring and non-recurring as the State Government may deem necessary for the proper functioning of the University.

1. (2) The State Government shall also make a non-lapsable lumpsum grant to the University in respect of schemes included in the Third Five-Year Plan and transferred for implementation by the University, of an amount equal to the net outlay as shown in the annual Plan after deducting the anticipated assistance from the Central Government and other agencies sponsoring such schemes.
2. (3) Notwithstanding anything contained in sub-section
3. (1) with effect from the seventh financial year after the establishment of the University, in respect of the activities, institutions, staff, contingencies, supplies and services referred to in clauses
   • (i) and
   • (ii) of sub-sections (1), an amount, not less than the average of the actual expenditure incurred in respect of such activities and institutions, staff, supplies and services during the preceding three years, shall be paid every year as non-lapsable lumpsum grant to the University: Provided that if the University commences to function from any date after the first day of April in any financial year, the grants under clauses
   • (i) and
   • (ii) shall be fixed taking into consideration the expenditure the University will have to incur for the unexpired portion of that financial year.
4. (4) The University shall furnish statements, accounts, reports and other particulars as the State Government may require before any grant is made by the Government, and shall take such action and furnish such statements, accounts, reports and other particulars relating to the utilisation of any grant, within such time and in such manner as the State Government may direct.
5. (5) It shall be competent for the University in furtherance of its objects to accept grants from the [Government of Karnataka] or any other State Government or the Central Government or statutory bodies, and endowments or donations under such conditions as may be agreed upon between the University and the grantor or donor.

Power of Government to order auditing.—The State Government shall have power at any time to order an audit of the accounts of the University by such auditors as it may direct.

Financial Estimates.—(1) The Vice-Chancellor shall cause to be prepared on or before such date as may be prescribed, the financial estimates of the University for the ensuing year and submit the same to the Board for its approval.

1. (2) The Board may approve the financial estimates subject to such modifications as it deems fit, and no expenditure shall be incurred except in accordance with the financial estimates as approved by the Board.

Accounts and auditing.—(1) The annual accounts and the balance sheet of the University shall be prepared under the direction of the Vice-Chancellor and all moneys accruing to or received by the University from whatever source and all amounts disbursed or paid by the University shall be entered in the accounts.

1. (2) The annual accounts and the balance sheet shall be submitted by the Vice-Chancellor to the State Government which shall cause an audit to be carried out by such persons as it may appoint in this behalf. The accounts when audited, shall be printed and copies thereof, together with the audit report, shall be presented by the Vice-Chancellor to the Board and the Chancellor.
2. (3) The Board shall submit a copy of the accounts and the report to the State Government along with a statement of the action taken by the University on the audit report, and the State Government shall cause the same to be laid before both Houses of the State Legislature.