Chapter VIII FINANCE AND AUDIT

1. (1) The Chairman shall place before the annual meeting of the Board, held in the year following the year in which it is established and before annual meeting thereafter, a report on the working of the Board during the preceding financial year together with a budget estimate showing, in such form as may be prescribed, the anticipated income and expenditure of the Board during the financial year in which such annual meeting is held.
2. (2) The report shall be forwarded to the government as soon as possible but not later than one month of its presentation before the annual meeting of the Board together with such comments thereon as the Board may think fit to make.
3. (3) The budget estimates shall, after confirmation by the Board, be forwarded to the Government within such time as may be prescribed.
4. (4) The Government shall within three months of the receipt of the budget estimate either accord its approval to the same or return it to the Board with such comments and suggestions as it deems necessary if in its opinion such estimates :-
   • (i) is not reasonably accurate with reference to ascertainable facts or shows a deficit in the closing balance;
   • (ii) includes new items of recurring expenditure which are likely to impose on the Board in the future financial liabilities which the Board is not likely to be able to meet from its income; OR
   • (iii) includes provisions for expenditure which are not in accordance with the provisions of this Act.
5. (5) If the budget estimates is returned under clause
   • (i) of sub-section (4), the Board shall consider the comments and suggestions made by the Government and may-
   • (i) if it thinks fit, revise the said estimate OR
   • (ii) if it does not think fit to revise the estimate resubmit it in its original form to the Government within one month of receiving it, together with its replies on the comments and suggestions made by the Government.
6. (6) If the Government does not approve of the budget estimates as revised by the Board, it may amend the budget estimate by making –
   • (i) such modifications are in its opinion necessary to render the estimate reasonably accurate with reference to ascertainable facts or to balance the income and the expenditure;
   • (ii) additions, alteration or modifications in any provision relating to new expenditure to recurring nature;
   • (iii) any alteration or modification in any provision which, in its opinion is not in accordance with the provision of the Act;
7. (7) The budget estimates as amended by the Government shall be the budget estimates of the Board for the concerned financial year.

1. (1) The Government may, after considering the budget estimates, the accounts of the Board and such reports as it may call for, make such annual and periodical grants to it as it may think fit.
2. (2) To enable the Board to function effectively as soon as it is established, and at any time thereafter, the Government may make such grants to the Board as it may think necessary.

Funds of the Board

1. (1) The Board shall constitute funds as under :-
   • (i) Reserve Fund, named as “Mizoram Board of School Education Reserve Fund”.
   • (ii) Operational Fund, named as “Mizoram Board of School Education Operational Fund” (2)
   • (i) The initial constitution of these funds shall be made out of earmarked grants from the Government subject to the maximum extent of Rs.5,00,000/- for the Reserve Fund and Rs.50,000/- for the Operational Fund.
   • (ii) Interest accruing on all moneys held in the Reserve Fund shall be transferred to the Operational Fund annually and shall be considered as income of the Board and taken into account in the preparation of Board’s budget.
   • (iii) All sums which may be paid by the Government for the Reserve Fund and the Operational Fund shall be forthwith deposited in the appropriate fund.
   • (iv) All fees realized under any of the provisions under this Act shall be deposited in the Operational Fund.
   • (v) All sum representing income endowments of property owned or managed by the Board shall be deposited in the Operational Fund.
   • (vi) The Board shall credit to the Board’s Reserve Funds Accounts all such grants from the Government or donations from any other source made or provided specifically for augmentation of the Reserve Fund immediately on receipt.
2. (3) All moneys payable to the credit of the Funds shall forthwith be paid into the State Bank of India to credit of the relevant Funds shall be signed by the secretary and presented for encashment after obtaining the countersignature of the Chairman.
3. (4) The Board shall keep account of all its receipts and expenditure in the manner prescribed.
4. (5) No expenditure shall be incurred from the relevant Fund of the Board except for the purposes of this Act and unless such expenditure is provided for in the budget approved under this act or can be met by reappropriation in the prescribed manner.
5. (6) No drawal except interest accruing annually on the Reserve Fund shall be made at any time except with the specific approval of the Government.

Audit of the Accounts of the Board

1. (1) The accounts of the Board shall be examined and audited annually in such manner as may be prescribed, by an auditor appointed by the Government besides audit by the Accountant General concerned as and when he so desires.
2. (2) For the purpose of examination and audit under subsection (I), an auditor appointed under that sub-section may,-
   • (a) require in writing the production before him of any document relating to the Board or the assets thereof which he considers necessary for the purposes of audit;
   • (b) require in writing the personal appearance before him of any person accountable for or having the custody or control of, any such document to answer any question relating thereto; and
   • (c) require any person so appearing before him to submit a statement in writing in respect of any such document.
3. (3) It shall be the duty of the Board, and of every member thereof, and of the secretary and the member of the staff in the service of the Board to afford to the auditor every facility for the examination and audit of the accounts of the Board and to comply with any requisition made by the auditor under sub-section
4. (2) and with the requirement of any rule made in this behalf.
5. (4) Not more than three weeks after the completion of the audit he shall submit to the Government a report on the account audited, and shall send a copy thereof to the Board which shall forward it to the Government together with observations thereon.
6. (5) The Government shall take such action on the audit reports as it think fit.