Chapter VII FINANCE

University fund.—(1) All grants and loans received from the State Government, the Government of India, the University Grants Commission and from any other source, all revenues of the University, all fees received, all incomes such as rent and profits derived from properties and funds vested in the University, all endowments and donations received from any source whatsoever, all other miscellaneous receipts of the University and all deposits, remittances and service funds, received in connection with the affairs of the University shall form one consolidated fund styled [112][The Mahatma Gandhi University Fund] and shall be employed for the purposes and in the manner laid down in this Act and in the Statutes, Ordinances, rules, bye-laws and orders made thereunder:

Provided that separate accounts may be maintained for specific purposes.

1. (2) . All moneys in the [113][Mahatma Gandhi] University Fund shall be lodged in the Government Treasury or with the approval of the Government in the State Bank of India or its subsidiaries upto such limits as may be fixed by the Government.
2. (3) . The University may invest such part of the moneys in the Gandhiji University Fund, as it may deem fit, in Government securities or securities guaranteed by the Government of India.
3. (4) . The custody of the [114] [Mahatma Gandhi]

Grants from Government Grants from Government.-(1) The University shall receive as grants for its maintenance such sums, subject to such conditions as may be fixed by the Government from time to time.

Annual estimates of income and expenditure Annual estimates of income and expenditure.-(1) The Syndicate shall prepare the financial estimates of the income and expenditure of the University for the next ensuing year before such date as may be prescribed by the Statutes and forward the same together with a memorandum conveying explanatory notes thereon to the [115][Chancellor] for consideration. [116] [(2) The Chancellor shall consider the financial estimates and shall approve it either without alterations or with such alterations as he may deem fit.]

Funds earmarked for a purpose not to be diverted without prior approval of Government.—The University shall not,--

1. (a) . without the prior approval of the Government,--
   • (i) . divert funds earmarked for a purpose for any other purpose; or
   • (ii) implement any scheme which involves any matching contribution from the State Government; or
2. (b) . implement any scheme which imposes a recurring liability on the Government, after the assistance from the sponsoring authority ceases.

Annual accounts.—(1) The annual accounts of the University shall be prepared under the directions of the Syndicate and shall be submitted to the Government for audit.

1. (2) . The annual accounts together with the audit report thereon shall be published by the Syndicate and copies of such accounts and audit report shall be placed before the Senate and submitted to the Government [117] [and the Chancellor.]
2. (3) . The annual accounts shall be considered by the Senate at its annual meeting, and the Senate may pass resolutions with reference thereto and communicate the same to the Syndicate which shall take action in accordance therewith.

Annual report.—(1) The annual report of the University shall be prepared under the direction of the Syndicate and shall be presented to the Senate for its review on or before such date as may be prescribed by the Statutes.

1. (2) . The Senate may pass resolutions on the annual report and communicate the resolutions to the Syndicate.
2. (3) . The Syndicate shall inform the Senate of the action taken by it on the resolutions passed by the Senate under sub-section
3. (2) and shall submit a copy of the annual report together with a copy of the resolutions, if any, of the Senate under sub-section
4. (2) to the Government [118][and the Chancellor].

Audit of accounts of the University Audit of accounts of the University.—(1) The Government shall appoint auditors of the accounts of the University and the institutions under the management of the University.

1. (2) . The auditors shall maintain a continuous audit of the accounts of the University and may, after giving due intimation, conduct local audit of any institution under the management of the University.
2. (3) . The University shall bear the cost of the audit as fixed by the Government.
3. (4) . After completing the audit for a year or for any shorter period or for any transaction or series of transactions, the auditors shall sent a report to the University and a duplicate copy thereof to the Government.
4. (5) . The auditors shall specify in the report under sub-section
5. (4) all cases of irregular, illegal or improper expenditure or of failure to recover moneys or other property due to the University or of any loss or waste of money or other property thereof caused by neglect or misconduct of the officers and authorities of the University.
6. (6) . The auditors shall also report on any other matter relating to the accounts of the University as may be required by the Government.
7. (7) . The University shall forthwith remedy any defect or irregularity pointed out by the Auditors and report the action taken to the Government.
8. (8) . On consideration of a report of the auditors under this section the Government may, if they consider it necessary so to do, direct the University to comply with the provisions of sub-section
9. (7) within such period as may be specified in the direction and the University shall comply with such direction.