Chapter XII FINANCE

1. (1) The University shall establish a fund to be called the University Fund.
2. (2) The following shall form part of, or be paid into, the University Fund-
   • (a) any contribution or grant made by the State or Central Government, University Grants Commission, All India Council for Technical Education or any other authority ;
   • (b) the income of the University from all sources including income from fees and charges and sale proceeds, if any ;
   • (c) all income or moneys from trusts, subventions, bequests, donations, endowments and other grants, if any, received by the University ; and
   • (d) any sum borrowed from the banks or any other agency, with the permission of the State Government.
3. (3) The University Fund shall, at the discretion of the Executive Council, be kept in the State Bank of India, or in any Scheduled 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 in Co-operative Bank approved by the State Government for the purposes of the University, or be invested in securities authorized by the Indian Trusts Act, 1882 (2 of 1882), or, subject to the maximum limit of rupees five lakhs, in the Unit Trust of India or in the shares of, or by giving loans to the consumers' Co-operative Societies established for the purposes of the University, or any recognized institution.

The University shall maintain a Contingency Fund under a separate head of account in the University accounts, to which the amount to be credited shall be such as may, from time to time, be granted as contributions or grants by the State or Central Government through the Director of Technical Education specially for this purpose. Such fund shall be used for meeting the initial expenditure and thereafter for making advances for the purposes of meeting unforeseen expenditure.

With the previous sanction of the State Government, any portion of the University Fund may, from time to time, be credited by the University to a separate head of account as special fund or depreciation fund in the University accounts : Provided that, there shall, be credited and debited to such funds only such sums as shall expressly relate to the objects for which a special fund or depreciation fund is so created and for the purpose specified or for depreciation of equipment as may be provided by Statutes.

1. (1) (a) Notwithstanding anything contained in this Act, during the period of stabilization of the University, the State Government shall specify the date by which and the manner in which the University shall prepare the annual financial estimates of receipts and expenditure of the University.
   • (b) The Executive Council shall consider the estimate as prepared and approve them, with or without modifications and submit them, as approved by it, to the State Government for its sanction.
   • (c) The State Government may pass such orders with reference to the said estimates as it may think proper and communicate the same to the University which shall give effect to such orders.
2. (2) (a) After the period of stabilization of University is over, the Vice-Chancellor shall cause to be prepared by the Finance Officer of the University on or before such date as may be prescribed, the annual financial estimates of receipts and expenditure of the University for the ensuing year and submit them to the Executive Council, through the Finance Committee.
   • (b) The Executive Council shall consider the annual financial estimates so prepared and approve them with or without any modifications.

1. (1) The annual accounts of the University shall be prepared by the Finance Officer under the direction of the Vice-Chancellor, and all monies accruing to or receive by the University from whatever source and all amounts disbursed and paid by the University shall be entered in the accounts.
2. (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 an auditor appointed by it, in consultation with the Comptroller and Auditor General of India. The accounts, when audited, shall be printed and copies thereof together with the copies of the audit report shall be presented by the Vice-Chancellor to the Executive Council and the Chancellor.
3. (3) The Executive Council shall submit a copy of the accounts and the audit report to the State Government along with the statement of the action taken by the University on the audit report, and the State Government shall cause the same to be laid before each House of the State Legislature.

The annual report of the University shall be prepared under the direction of the Executive Council, on or before such date as may be prescribed. The report as approved by the Executive Council shall be submitted by the Vice-Chancellor to the Chancellor and the State Government. The State Government shall cause the report to be laid before each House of the State Legislature.