Chapter V FUND, FINANCE, ACCOUNT AND AUDIT

All property, fund and other assets vesting in the Board shall be held and applied by it, subject to the provisions and for the purpose of this Act.

1. (1) The Board shall have its own fund, and the following money shall be credited thereto,-
   • (a) fees, royalties and charges, including penalties, levied and collected by the Board ;
   • (b) grants, subventions, contributions and financial assistance, if any, made to it by the Government or otherwise ;
   • (c) bequests, donation and endowments or other contributions, if any;
   • (d) interest and dividends on, and sale proceeds of, any securities vested in it ;
   • (e) all rents and profits from the property vested in it ;
   • (f) other money received by, or on behalf of, the Board.
2. (2) The Board shall establish the following funds, namely :-
   • (a) general fund ;
   • (b) salary fund,-
     • (i) for all posts approved by the State Government;
     • (ii) for all other post separately ;
   • (c) trust fund ;
   • (d) development and programme fund ;
   • (e) contingency fund.
3. (3) Any other fund which in the opinion of the Board is deemed necessary to establish. The establishment and utilization of which shall be as prescribed by regulations.
4. (4) The following shall form part of, or be paid into the general fund,-
   • (a) non-salary contribution or grant, received from the State Government or Central Government or Corporate Social Responsibility Funds under the Companies Act, 2013 (18 of 2013) ;
   • (b) all incomes of the Board from any source whatsoever including income from fees, other fees and charges ;
   • (c) any sums borrowed from the banks, or any other agency, with the permission of the Government ;
   • (d) sums received from any other source or agency.
5. (5) The salary fund shall consist of all amounts received from the State Government, Central Government or any other endowment or contribution received towards full or part payment of the salary and allowances. No amount from this fund shall be utilized for the purpose other than payment of salaries and allowances.
6. (6) All income on moneys from trust, bequest, donations, endowments, subventions and similar grants shall form part of the trust fund.
7. (7) (a) The development and program fund of the Board shall consist of all infrastructure development grants received from the State Government, all contributions made by the industry, banks and financial institutions or any person or institution.
   • (b) No amount from this fund shall be appropriated to any other fund of the Board or expanded for any other purpose.
   • (c) The development and program fund shall be utilized in the manner consistent with the object of the program and as per the guidelines of the funding agency on expenditure and audit, to be granted and approved by the Governing Council.
8. (8) The Board shall have and maintain a contingency fund under a separate head of the Board accounts which shall be used only for the purpose of meeting any unforeseen expenditure.
9. (9) Surplus money at the credit of these funds, including accruals thereto, which cannot immediately or at any early date be applied for the purposes aforesaid shall, from time to time, be deposited in the Nationalized or Scheduled Banks or invested in any other Equity or securities issued by the Corporations having financial participation of the State Government.
10. (10) The Board may keep in current or deposit account with the State Bank of India or with any Schedule Bank as defined in the Reserve Bank of India Act, 1934 (2 of 1934), which holds a license issued by the Reserve Bank of India under section 22 of the Banking Regulation Act, 1949 (10 of 1949), or with any bank approved by the 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 Government.
11. (11) Such accounts shall be operated upon by such officers of the Board as may be authorized by the Board or regulation made in this behalf.

Subject to the provisions of this Act, the fund of the Board shall be applied only to the payment of charges and expenses incidental to the matters specified in this Act; and for any other purpose for which by or under this Act powers are conferred or duties are imposed upon the Board.

No payment shall be made by Bank out of the Board‟s fund except upon a cheques or letter of credit signed by an officer authorized by the Board in this behalf.

The Board shall pay, from time to time, to each district office and institute such sums as the Board may determine, for enabling the offices and institute to discharge the duties and functions imposed on them by the Board for completion of works or Development Schemes within its jurisdiction.

1. (1) The Board shall prepare, before such date and in such manner as may be prescribed by regulations, the budget estimates of the income and expenditure of the Board for the next financial year.
2. (2) The Board shall on or after the date referred to in sub-section (1), consider the budget estimates prepared by it and submit them as approved by it to the Government, for the sanction. The Government may pass such orders with reference to the budget estimated as it thinks fit, and communicate the same to the Board. The Board shall give effect to such order.
3. (3) The Financial year of the Board shall be the same as that of the State Government.

1. (1) The Board shall keep accounts in such form and in such manner as prescribed by the financial regulations approved by the Governing Council.
2. (2) The accounts of the Board shall be audited by an auditor appointed by the Board.
3. (3) The Government may, if it thinks necessary, appoint a special auditor to audit the accounts of the Board.
4. (4) The auditor or the special auditor, as the case may be, shall submit his report to the Board and shall forward a copy thereof to the Governing Council.
5. (5) The cost of the audit under sub-section (2) or (3), if any, shall born by the Board.

1. (1) The Government shall have the right to cause an inspection to be made by such a person or persons as it may direct, of the Board of the buildings, hostels, laboratories, libraries and equipment of any institution affiliated to the Board of the teaching or other work conducted by any such institute and of the conduct of any examination and assessment held on behalf of the Board, and to cause an inquiry to be made in like manner in respect of any matters conducted with the Board.
2. (2) The Government shall, in every case, give due notice to the Board of its intention to cause an inspection or inquiry to be made and the Board shall be entitled to appoint a representative, who is authorized by the Board to be present and be heard at such inspection or inquiry.
3. (3) The Government shall communicate to the Board its views with reference to the results of the inspection or inquiry and may, after ascertaining the opinion of the Board thereon, advise it on the action to be taken, and fix a time limit for taking such action.
4. (4) The Board shall report to the Government such action, if any, as it has taken or proposes to take upon the results of the inspection or inquiry. Such report shall be submitted with the opinion of the Board thereon, within such time as the Government may direct.
5. (5) Where the Board does not within the time fixed, takes action to the satisfaction of the Government, the Government may, after considering any explanation furnished or representation made by the Board, issue such directions as it may think fit, and the Board shall comply with such directions.

1. (1) The Board shall furnish to the Government such reports, returns and statement as may be required by the Government and such further information relating to any matter connected with its work as the Government may call for.
2. (2) The Government may, after considering any such report, returns or statements or information furnished, give such directions consistent with this Act as may be necessary, and the Board shall comply with such directions.