Chapter VI FINANCE, BUDGET AND ACCOUNTS

1. (1) There shall be a fund of the Procurement Authority to be called “ the Medical Goods Procurement Fund ”, to which shall be credited all moneys received by the Authority, including,—
   • (a) all grants and such other moneys as may be paid to the Authority by the State Government;
   • (b) such moneys as may be paid to the Authority by the Central Government or any other State Government or Union Territory or any other authority or agency;
   • (c) all fees, costs and charges received by the Authority under this Act or any other law for the time being in force;
   • (d) all other fees and charges received towards services rendered and towards administrative procedure of the Authority;
   • (e) all moneys borrowed by the Authority;
   • (f) any bequests, donations, endowments or other grants made by private individuals or institutions;
   • (g) all moneys received by the Authority by way of rents or in any other manner or from any other source.
2. (2) The Procurement Authority may keep in current or deposit account with the State Bank of India or with any Nationalized Bank or with any other bank as approved by the State Government in this behalf, such sum of money out of its fund as may be prescribed, and any money in excess of the said sum shall be invested in such manner as may be approved by the State Government.
3. (3) Such accounts shall be operated by such officers of the Procurement Authority as may be authorized by it by regulations made in this behalf.

1. (1) The Procurement Authority shall make provisions for a reserve fund and may provide for other specially denominated funds as it deems fit.
2. (2) The management of the funds referred to in sub-section (1), the sums to be transferred from time to time to the credit thereof and the application of money comprised therein, shall be determined by the Procurement Authority.

All property, funds and other assets vesting in the Procurement Authority shall be held and applied by it for the purposes and subject to the provisions of this Act.

The State Government shall provide grant in aid for the first two years from the establishment of the Procurement Authority for salary component of staff and other office support expenses or till the time the Procurement Authority becomes self-sustainable, whichever is earlier.

The Procurement Authority may, with the previous approval of the State Government, borrow any moneys for carrying out the purposes of this Act or for servicing any loan obtained by it, at such rates and on such conditions, as the State Government may determine at the time the moneys are borrowed.

The State Government may guarantee repayment of the principal of, and interest on, any loan raised or given by the Procurement Authority or transferred to it for the purposes of this Act, subject to such conditions as the State Government may think fit to impose.

1. (1) The Procurement Authority shall keep accounts in such form and in such manner as it may, by regulations made in this behalf, determine.
2. (2) The accounts of the Procurement Authority shall be audited by the Chief Auditor, Local Fund Accounts or by any other auditor appointed by the State Government, from time to time.
3. (3) The audit shall be made in such manner as may be determined by the regulations.
4. (4) The auditor shall submit his audit report to the Procurement Authority and shall forward a copy thereof to the State Government.

1. (1) The Member-Secretary of the Procurement Authority shall prepare, every year, in such form and at such time as may be prescribed, an annual budget estimate in respect of the next ensuing financial year showing the estimated receipts and disbursements of the Procurement Authority and shall submit it to the Procurement Authority for approval.
2. (2) The Member-Secretary shall forward to the State Government copies of the budget estimate so prepared by him and the budget as approved by the Procurement Authority.

The Procurement Authority shall prepare after the end of each year (ending on the 31st day of March), a report of its activities during the previous year and submit it to the State Government before the 30th day of November and the State Government shall cause a copy of such report to be laid before the State Legislature.

1. (1) The Procurement Authority shall not and shall not be required to carry out any of its operations under this Act at a loss. Any deficit in the Medical Procurement Fund caused due to procurement in any financial year shall be made good by the Authority not later than those of the next succeeding financial year.
2. (2) The Procurement Authority shall not place any orders to the successful bidders till the time fund is received at their end from the user institution.

The Procurement Authority shall take fees or charges for carrying out the procurement process at such rate or rates as the State Government may, by notification in the Official Gazette, specify.