Chapter VI Chapter VI

Funds, Accounts and Audit

The University shall have a general fund to which shall be credited-

1. (a) its income from fees, endowments, grants, donations and gifts, if any;
2. (b) any contribution or grant made by the Central Government, State Government, the University Grants Commission established under section 4 of the University Grants Commission Act, 1956 (Central Act No. 3 of 1956) or like authority or any local authority or any corporation owned or controlled by such Government; and other receipts.

1. (1) The University may have such other funds as may be prescribed by the Statutes.
2. (2) Each college shall be allowed to maintain its funds, as college funds, accrued out of student’s fees and other such incomes not required to be deposited to the University’s accounts.

Management of funds The funds and all moneys of the University shall be managed in such manner as may be prescribed by the Statutes.

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:-

1. (a) creation of the new post of teachers, officers or other employees;
2. (b) revision of the pay, allowances, post-retirement benefits and other benefits of its teachers, officers and other employees;
3. (c) grant of any additional or 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 teacher, officer or other employees;
4. (d) diversion of any earmarked funds other than the purpose for which it was received;
5. (e) transfer by sale, lease, mortgage or otherwise of immovable property;
6. (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
7. (g) take any decision regarding affiliated colleges 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 long term likely to cause financial implications to the State Government.

If the State Government is satisfied that owing to mal-administration or financial mismanagement in the University 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.

1. (1) The annual accounts prepared by the Comptroller shall be submitted to such examination and audit as the Government may direct and a copy of the annual accounts and audit report shall be submitted to the Government.
2. (2) The University shall settle objections raised in the audit and carry out such instructions as may be issued by the Government on the audit report.
3. (3) The Government shall cause the annual accounts and the audit report to be laid before the House of the State Legislature together with their comments.
4. (4) The Comptroller shall, before such date as may be prescribed by the Statutes, prepare the annual financial estimates for the ensuing year.
5. (5) 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 at its annual meeting and the Board may pass resolution with reference thereto and communicate the same to the comptroller who shall take action in accordance therewith.

1. (1) The University shall for the benefit of its officers and employees, create provident fund or pension fund or formulate an insurance scheme in such manner and subject to such conditions as may be prescribed by the Statutes.
2. (2) The provisions of the Provident Funds Act, 1925 (Central Act No. 19 of 1925), shall apply to a fund or an insurance scheme as if it were a Government fund or scheme and the University shall contribute to or invest in such fund or scheme.
3. (3) Where a person in Government employment is transferred on deputation or otherwise to the University, the terms and conditions relating to the fund and the scheme referred to in sub-section (1) shall be such as may be agreed to between the Government and the University.