Chapter V FINANCE, ACCOUNTS, AUDIT 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) The Board shall have its own fund and all receipts of the Board shall be credited thereto, and all payments by the Board shall be met there from. (2) A Board may accept grants, subventions, donations and gifts and receive loans from Government or a local authority or any body or association whether incorporated or not, or an individual for all or any of the purposes of this Act. It may also create reserves for irrecoverable losses and tosses in direct trading activities. (3) All money belonging to the fund of the Board shall be deposited in the State Bank of India or with the agents of the State Bank of India or where there is neither an office of the State Bank of India nor an agent of the State Bank of India, in a Government Treasury or be invested in such securities as may be approved by the Government. (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) The Government may, from time to time make subventions 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 the State Government. Similarly it may grant subvention compensating irrecoverable debts. (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 purposes of this Act: Provided that the previous sanction of the Government shall notbe necessary to borrow any sum from the Khadi and Village Industries Commission.

(1) The Board shall, by such date in each year as may be prescribed 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 Commission for information and remarks, if any. (2) Subject to the provisions of sub-section (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) 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 re-appropriation from the head “Loan” to any other head or 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) 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 date as the Government may prescibed and the provisions of section 26 shall apply to such supplementary budget.

(1) The Board shall prepare and forward to the Government in such manner, as may he 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 annual statement of accounts preferred to in section 30. (2) The Board shall prepare and forward to the 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 Commission and out of such fund during the previous financial year. (3) The report received by the Government under sub-section (1) shall be laid before the Nagaland Legislative Assembly as soon as may be after it is received by the Government.

(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 prescribe or as the Government or the Khadi and Village Industries Commission 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) 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 a true and full account of its activities, policy and programme during the previous Financial year. (3) All returns, Statements and particulars furnished by the Board to the Government under sub-section (1) shall as soon as possible, after they are so furnished, be placed on the table of both the houses of Legislature.

(1) The Board shall maintain proper accounts and other relevant records and prepare an annual statement of accounts including the profit and loss account and the balance sheets in such form as may he prescribed. (2) The accounts of the Board shall be audited by suchperson as the Government may appoint in this behalf. (3) The Auditors appointed by the Khadi and Village Industries Commission shall have the right to audit and inspect the accounts of the Board pertaining to the funds advanced by the Khadi and Village Industries Commission. (4) The person appointed under sub-section (2) and (3) shall, in connection with such audit, have such rights privileges and authority as may he prescribed and in particular, such auditor shall have the right to demand the production of hooks, accounts, connected vouchers and other documents and to inspect any of the offices of the Board. (5) The Accounts of the Board as certified by such auditor together with the audit report thereon shall he forwarded annually to the Government and the Khadi and Village Industries Commission before such date as the Government may specify in this behalf. (6) The Board shall comply with such directions as the Government may, after perusal of the report of the auditor, think fit to issue.