Chapter VI Chapter VI

No financial obligation on State Government No financial obligation on State Government

1. (1) This Act and the regulations that may be made thereunder shall not cast any financial obligation in any manner on the Government of Nagaland or its agencies. All expenditure called for the implementation of this Act and the regulations shall be exclusively borne by the University.
2. (2) Nothing herein shall be deemed to prevent the Government of Nagaland from contributing or giving a grant to the University for promoting academic excellence.

Funds of University The University shall operate the following two funds namely:

1. (1) The Endowment Fund
2. (2) The General Fund.

Endowment Fund

1. (1) Immediately after the commencement of this Act, the University shall set up an Endowment Fund with Rupees One crore to begin with, into which further amounts, as determined by the Governing Council shall be credited every year.
2. (2) The University shall have power to invest the Endowment Fund in such manner as may be prescribed by regulations.
3. (3) The interest, dividends and other forms of growths of the money from Endowment Fund and all other receipts shall be credited to the Endowment Fund.
4. (4) When a resolution by the Trust or an Act for repeal of this Act by the Nagaland Legislative Assembly for dissolution of the University is passed, all moneys in the General Fund and all other receipts of the University on all other counts, shall stand transferred to the Endowment Fund for exclusively applying the Fund for the purposes of rehabilitating the students and others affected by such dissolution: Provided that the quantum of moneys in the Endowment Fund shall be reviewed on a five yearly basis by the Governing Council and at the end of such review, if the fund position is found to be reasonably comfortable, one-third of moneys in the Endowment Fund may be withdrawn and credited to the General Fund for purposes of developing the infrastructure of the University if two-thirds of the members of the Governing Council vote in favour of such a proposal.

General Fund General Fund

1. (1) The University shall also set up a General Fund into which the following shall be credited:
   • (i) Contributions and grants made by the Trust;
   • (ii) Contributions and grants made by the Government of Nagaland;
   • (iii) Contributions and grants made by the University Grants Commission;
   • (iv) Contributions and grants made by the Central Government;
   • (v) Contributions and grants made by other organizations in India and abroad, subject to laws in force;
   • (vi) Bequests, donations, endowments or other grants made by private individuals and organizations;
   • (vii) Income received by the University on account of fees and other charges; and
   • (viii) Amounts received from any other source.
2. (2) The funds shall be deposited in banking institution or held in shares, securities, debentures or in any other form as may be determined by regulations and as far as possible they may be held in such form which does not pose serious risks.
3. (3) The funds shall be operated exclusively for the purposes of the University in such manner as may be prescribed by regulations.

Funds for sponsored schemes 50. The contributions, funds amounts, grants received for a sponsored scheme shall not be credited to the University Fund but shall be kept separately and utilized only for the purpose of the scheme.

Annual accounts and audit Annual accounts and audit 51.

1. (1) The Annual Accounts of the University shall be prepared by the Finance Officer under the directions of the executive Council.
2. (2) The accounts of the University, shall be audited every year by certified auditors duly appointed by the executive Council.
3. (3) The annual accounts and the audit reports shall be first approved by the Finance Committee before presented to the Governing and Executive Councils.
4. (4) The Executive Council and the Governing Council, in that order, consider the annual accounts and audit reports and make recommendations in regard thereto for Mer action by the Finance Committee which shall give an Action Taken Report to the Governing and Executive Councils at the earliest.

Financial estimates 52.

1. (1) The annual budget for a financial year shall be prepared by the Finance Committee well before the commencement of the financial year.
2. (2) The budget will thereafter be considered by the Executive Council and then duly approved by the Governing Council.
3. (3) Expenditure in excess of the budget in a financial year in extraordinary circumstances shall be incurred only with the approval of the Executive Council.
4. (4) Such excess expenditure shall later be approved by the Governing Council at the time of approving the annual budget for the next financial year.

Execution of contracts 53.

1. (1) All contracts relating to the management and administration of the University shall be expressed to have been made by the Executive Council. The Vice Chancellor shall execute contracts above rupees ten lakhs and the Registrar shall do so in all other cases. All contracts shall be executed with the prior approval of Pro Chancellor.
2. (2) Nothing herein shall be deemed to prevent the Registrar, with the prior approval of the Pro Chancellor to delegate some of his contracting powers to the Financial Officer.