Chapter V Finance, Accounts, audits and Reports.

The State Government may transfer to the Board buildings, land or any other property, whether movable or immovable, for use and management by the Board on such conditions and limitations as the State Government may deem fit for the purposes of this Act.

1. (1) The Board shall have its own fund and all receipt of the Board shall be credited thereto, and all payments by the Board shall be met therefrom.
2. (2) The Board may accept grants, subventions, donations and gifts and receive loans from Government or a local authority or anybody or association, whether incorporated or not, or an individual for all or any of the purposes or this Act. It may also create reserves for irrecoverable losses and losses in direct trading activities.
3. (3) All moneys belonging of the fund of the Board shall be deposited in a Government Treasury or the State Bank of India, or the Meghalaya Co-operative Apex Bank Ltd., or any other Bank, approved by the Government; Provided that it will not be necessary for all the moneys to be kept in any one Bank or Treasury.
4. (4) The accounts of the Board shall be operated upon by such officers jointly or individually as may be authorised by the Board.

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

1. (1) The Government may, from time to time, make subvention and grants to the Board for the purpose of this Act on such terms and conditions as the Government may determine in each case. Establishment expenditure of the State Board will be the sole responsibility of State Government. Similarly, it may grant subvention compensating irrecoverable debts.
2. (2) The Board may from time to time, with the previous sanction of the Government and subject to the provisions of this Act and such conditions as the Government may determine, borrow any sum required for the purpose of this Act: Provided that the previous sanction of the Government shall not be necessary to borrow any sum from the Khadi and Village Industries Commission.

1. (1) The Board shall, by such date, in each year, ads may be prescribed, prepare and submit to the Government for approval the budget in the prescribed form for the next financial year showing the estimated receipts and expenditure in respect of Khadi and Village Industries respectively during that financial year. The board shall forward a copy of the budget to the Khadi and Village Industries Commodities for information and comments, if any.
2. (2) Subject to the provisions of sub-sections (3) and (4) , no sum shall be expended by or on behalf of the Board unless such expenditure is covered by a specific provision in the budget approved by the Government.
3. (3) The Board may, within the respective limits of the budget, sanction any reappropriation from one head of expenditure to another or from a provision made for one scheme to that in respect of another: Provided that no reappropriation from the head Loan to any other head of expenditure and vice versa in the budget shall be sanctioned by the Board except with the previous approval of the Government and the Khadi and Village Industries Commission.
4. (4) The Board may within such limits and subject to such conditions as may be prescribed incur expenditure in excess of the limit provided in the budget approved by the Government under any head of expenditure or in connection with any particular scheme so long as the aggregate amount in either budget approved by the Government is not exceeded.

The Board may submit a Supplementary budget for the sanction of the Government in such form and before such data as the Government may prescribe and the provision of section 29 shall apply to such supplementary budget.

1. (1) The Board shall prepares and forward to the Government in such manner as may be prescribed an annual report within three months from the end of the financial year giving a complete account of its activities during the previous financial year along with a copy of the animal statement of accounts referred to in section 33.
2. (2) The Board shall prepare and forward to the Khadi and Village Industries Commission an annual report within three months from the end of the financial year giving a complete account of the funds received by the Board from the said Commission and the activities carried on by the Board from and out of such fund during the previous financial year.
3. (3) The report received by the Government under sub-section (1) shall be laid before the State Legislature as soon as may be after it is received by the Government.

1. (1) The board shall furnish to the Government and the Khadi and Village Industries Commission at such time and in such form and manner as may be prescribed or as the Government may direct, such returns and statements and such particulars in regard to any proposed or existing programme for the promotion and development of Khadi and Village Industries as the Government may, from time to time require.
2. (2) Without prejudice to the provisions of sub-section (1), the Board shall, as soon as possible after the end of each financial year, submit to the Government a report in such form and before such date as may be prescribed, giving true and full account of its activities policy and programme during the previous year.

1. (1) The Board shall cause proper accounts and other records in relation thereto to be kept, including a proper system of internal check and prepare an Annual Statement of Accounts including the Profit and Loss Account and the Balance Sheet in such form as may be prescribed by the State Government in consultation with the Comptroller and Auditor-General of India.(2) The Accounts of the Board shall be audited by the Comptroller and Auditor-General of India or by such person as he may authorise in this behalf and any expenditure incurred by him in connection with such audit shall be payable by the Board to the Comptroller and Auditor-General of India.
2. (3) The Comptroller and Auditor-General of India and any person authorised by him in connection with the audit of the accounts of the Board shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General of India has connection with the audit of Government accounts and in particular shall have the right to demand the production of books of accounts, connected vouchers and other documents and papers, and to inspect any of the offices of the Board.
3. (4) The Accounts of the Board as certified by the Comptroller and Auditor-General of India or any other person authorised by him in this behalf together with the Audit Report thereon shall be forwarded annually to the State Government and that Government may issue such instructions to the board in respect thereof as it deems fit and the Board shall comply with such instructions.
4. (5) The State Government shall
   • (a) cause the accounts of the Board together with the Audit Report thereon forwarded to it under sub-section (4) to be laid annually before the State Legislature; and
   • (b) cause the accounts of the board to be published in the prescribed manner and make available copies thereof on sale at a reasonable price.

If any amount due to the Board in accordance with the terms of a contract or otherwise or any sum payable in connection therewith, has not been paid, the Board may without prejudice to any other remedy provided by law, recover such amount or sum as arrears of land revenue.

The Board shall be competent to write of losses upto Rs.500 in individual cases and not exceeding Rs.5,000 in the aggregate in any financial year in cases failing under all or any of the following categories:-

1. (a) loss of irrecoverable value of stores or of public money due to theft, fraud or such other cause;
2. (b) loss of irrecoverable advance other than loans; and
3. (c) deficiency and depreciation in the value of stores.

1. (1) If at any time the Government are satisfied that
   • (a) the Board has without reasonable cause or excuse made default in the discharge of its duties or in the performance o its functions imposed of entrusted by or under this Act, or exceeded or abused its powers, or
   • (b) circumstances have so arisen that the Board is rendered unable, or may be rendered unable, to discharge its duties or perform its functions under this Act, or
   • (c) it is otherwise expedient or necessary to dissolve the Board, the Government may, by notification, dissolve the Board for such period as may be specified in the notification and declare that the duties, powers and functions of the Board shall during the period of its dissolution, be discharge, exercised and performed by such person or authority, as may be specified in the notification: Provided that the Government shall, before dissolving the Board, give reasonable opportunity to it to show cause against the proposed action.
2. (2) The Government shall before the expiration of the period of dissolution, reconstitute the Board in accordance with the provisions of section 3 and 4.
3. (3) The Government may make such, incidental and consequential provision as may appear to them to be necessary for giving effect to the provision of this section.
4. (4) Any notification issued or order made by the Government under this section shall not be questioned in any court of law.
5. (5) On the Board being dissolved under sub-section (1)
   • (i) all properties and funds, which immediately before the said date were in the possession of the Board for the purposes of this Act shall vest in the State Government.
   • (ii) all members, with effect from the date of the notification under sub-section (1), shall vacate and be deemed to have vacated office as members of the Board, and
   • (iii) all rights, obligations and liabilities (including any liabilities under any contract) of the Board shall become the rights, obligations and liabilities of the State Government.