Chapter VI Funds and Accounts

The University funds : (1) The University shall have a General Fund to which shall be credited:- (i) Its income from fees, endowments and grants and income from properties of the University including hostel, experimental stations and farms; (ii) Contribution and grants made by the Government on such conditions as are consistent with the provisions of this Act; and (iii) Other contributions, grants, donations benefactions and loans and other receipts. (2) The University shall form a fund called the Foundation Fund from contributions and grants made by the Central Government or the State Government or agencies approved by the Central or State Government for being credited to that fund and such other sums as may be specified by the Board, shall be credited to this fund, and the Board may, as and when necessary, retransfer such amount as may be specified, from the Foundation Fund to the General Fund, in the manner prescribed. (3) The University shall furnish statements of accounts, reports and other particulars to the Government relating to any grant made by the Government and shall take such action and furnish such statements, accounts, reports and other particulars relating to the utilization of any grant within such time and in the manner as the Government may direct. (4) It shall be competent for the University in furtherance of its objectives to accept the grants from the Government or any other State Government or the Central Government or Statutory Bodies or endowments or donations under such conditions as may be agreed upon between the University and the donor.

Provident fund, pension and insurance : (1) The University shall create for the benefit of its officers, teachers, ministerial staff and other employees, in such manner and subject to such conditions as may be prescribed, such pension, gratuity, insurance, provident fund as it may deem fit. (2) For such pension, gratuity, insurance and provident fund so constituted by the University, the Government may declare that the provisions of the Provident Funds Act, 1925 (Central Act No. 19 of 1925) shall apply to such funds as it were Government Provident Fund: Provided that the University shall have power in consultation with the Finance Committee and the Board to invest provident fund amount in such manner as it may determine.

Management of funds: The General Fund, Foundation Fund and other funds of the University shall be managed according to the provisions laid down in the Statues.

Accounts and audit : (1) The annual accounts and balance sheet of the University shall be prepared by the Comptroller under the direction of the Vice-Chancellor and all moneys accruing to or received by the University from whatever source and all amount disbursed or paid shall be entered in the accounts. (2) The Comptroller shall, before such date as may be prescribed by the Statutes, prepare the annual financial estimates for the ensuing year. (3) The annual accounts and the annual financial estimates prepared by the Comptroller shall be placed before the Board together with the remarks of the Finance Committee for approval and the Board may pass resolution with reference thereto and communicate the same to the Comptroller who shall take action in accordance therewith. (4) The annual accounts shall be audited in the prescribed manner by such auditors as the State Government may direct and the cost of such audit shall be a charge on the University fund. (5) The accounts when audited shall be printed and copies thereof, together with the audit report, shall be submitted by the Vice-Chancellor to the Board which shall forward them to the Chancellor with such comments as may be deemed necessary. (6) The University shall settle objections raised in the audit and carry out such instructions as may be issued by the State Government on the audit report.

Government grants : The Government shall every year make the following lump sum grants to the University, namely:- (i) A grant not less than the expenditure incurred in the University on agriculture education, research and extension education. (ii) A grant not less than the estimated net expenditure of pay and allowances of the staff contingencies, supplies and services of the University other than in respect of the activities in various organizations, referred to above in clause (i); (iii) A grant to meet such additional items of expenditure recurring and non- recurring as the Government deems necessary for the proper functioning of the University; (iv) The State Government shall also make non-lapsable lump sum grant to the University in respect to schemes included in the Five Year Plan and transferred to it for implementation by the University of an amount equal to the net outlay in the annual plan. Adjustments may be made for the anticipated assistance from the Central Government and other agencies sponsoring such schemes provided such assistance may come to the University directly, rather than through the State Government.

Control of the State Government.- Where the State Government funds are involved, the University shall abide by the terms and conditions attached to the sanction of such funds which may inter alia include prior permission of the State Government in respect of the following, namely:- (a) Creation of the new posts of teachers, officers or other employees; (b) Revision of the pay, allowances, post-retirement benefits and other benefits to its teachers, officers and other employees; (c) Grant of any additional/special pay, allowance or other extra remuneration of any description whatsoever, including ex-gratia payment or other benefits having financial implications, to any of its teachers, officers or other employees; (d) Diversion of any earmarked funds other than the purpose for which it was received; (e) Transfer by sale, lease, mortgage or otherwise of immovable property; (f) incur expenditure on any development work from the funds received from the State Government for any purposes other than for which the funds are received; and (g) Take any decision resulting in increased financial liability, direct or indirect, for the State Government. Explanation- The above conditions shall also apply in respect of the posts created from any other fund, which may, in the long term, be likely to cause financial implications to the State Government.

Assumption of financial control by the State Government as emergency Measure: (1) The State Government shall have the right to cause an inquiry to be made, by such person or persons as it may direct, and to issue directions to the University, in respect of any matter connected with the finances of the University, where State Government funds are concerned. (2) If the State Government is satisfied that owing to maladministration or financial mismanagement in the University a situation has arisen whereby financial stability of the University has become insecure, it may by a notification, declare that the finances of the University shall be subject to the control of the State Government and shall issue such other directions as it may deem fit for the purpose and the same shall be binding on the University.