Rule, 2016
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CALENDAR
VOLUME - IV
UNIVERSITY ACCOUNTS CODE
(As amended upto 20th September, 2016
MAHARSHI DAYANAND UNIVERSITY, ROHTAK
(A State University Established under Haryana Act No. 25 of 1975) NAAC Accredited ‘A’ Grade
CALENDAR
VOLUME - IV
UNIVERSITY ACCOUNTS CODE
(As amended upto 20 September, 2016
MAHARSHI DAYANAND UNIVERSITY, ROHTAK
(A State University Established under Haryana Act No. 25 of 1975) NAAC Accredited ‘A’ Grade Published by:
S.P. VATS
Registrar, Maharshi Dayanand University, ROHTAK (Haryana) Price : Rs. 300/- Printed at:
M.D. University Press, Rohtak Published in : July, 2013
INDEX
Chapter No. Contents Page no.
01. Introduction 1-3
02. General Principals of Financial Management and Control 4-19
03. Submission and processing of Bills for payment 20-33
04. Budget Estimates 34-41
05. University Revenues 42-46
06. Grants 47-51
08. University Accounts 58-65
09. Salaries and Allowances 66-72
10. Contingencies 73-77
11. Examination Expenditure 78-87
12. Store Purchase Regulations 88-107
13. Fellowships, Scholarships and Stipends 108-109
14. General Provident Fund 110-115
15. University Employees’ New Pension Scheme 2008 116-121
16. Pension Rules for University Employees Appointed prior to 1-1-2006
17. T.A. and L.T.C. Regulations 135-148
18. Medical Aid to University Employees and Students and use of the University Ambulance Regulations
19. Dr. Radha Krishanan Foundation Fund 151-153
20. Advances /Loans 154-162
21. Preservation/Destruction of Records 163-176
22. Revised Pay Rules & Pay Fixation 177-196
23. University Employees ACP Rules 2008 197-220
24. Self-Financing Schemes 221-226
25. University Library System 227-234
26. University Auxiliary Services 235-246
27. Financial Powers of various Officials/Functionaries 247-248
28. Writing Off Losses of Store Articles, Cash, Demurrage, etc and for determining store articles as surplus, obsolete or unserviceable and their disposal
29. Vice- Chancellor’s Discretionary Fund 253
30. Vice- Chancellor’s Fund 254-257
31. The Teachers’ Welfare Fund 258
32. Payment of Over-time Allowances to the University Employees who are called upon to work beyond Office Hours or on
33. The Hostel Funds 260-263
34. Rules for Compassionate Assistance to the dependents of deceased University Employees
35. Determining the rates for Editing, Writing and Compiling text books of the University
36. Refreshment for the members of various Statutory Authorities/ Bodies and Standing Committees etc.
----- Various University Accounts Code Forms 270-459
CHAPTER - 1
INTRODUCTION
1.1 Short Title and Commencement:
I) These rules shall be called the University Accounts Code. II) It shall come into force on such date as the University may, with the approval of the Executive Council, notify it.
III) The Finance Department, Govt. of Haryana has desired the Universities to frame these rules in exercise of the powers vested in it under the University Act and the Statute of the University, as amended from time to time. Any modification to these rules shall, therefore, be made only with the approval of the competent authority i.e. the Executive Council. 1.2 Definitions:
In these rules, unless anything is repugnant to the Act or Statutes, the terms defined below have been used in the sense herein explained.
I) “Act” means Maharshi Dayanand University Act, 1975 (No. 25 of 1975) as amended by the Haryana State Assembly from time to time.
II) “Academic Council” means Academic Council of the University. III) “Administrative Approval” means the formal acceptance by the Vice-Chancellor of a proposal to incur expenditure on works initiated or connected with the requirements of the University.
IV) “Appropriation” means the allotment of a particular amount of money to meet expenditure on a specified object including primary unit of appropriation. V) “Bank” means any Public Sector Bank or Banks in which funds of the University may be kept in the current, savings or fixed deposit accounts, with the approval of the competent authority.
VI) “Book Transfer” means the process whereby financial transactions which do not involve giving or receiving of cash, or of stock material, are brought to account. This also includes corrections and amendments made in cash, stock or book transactions previously taken to account.
VII) “Budget” means the statement of estimated Receipt and Expenditure of the University for purposes specified therein during a financial year as approved by the competent authority. VIII) “Cash” means legal tender coins, currency and bank notes, cheques payable on demand, bank drafts, government drafts and revenue stamps.
Note: Government securities, deposit receipts of banks, debentures and bonds accepted as security deposit shall not be treated as cash.
IX) “College” means a constituent College of the University. X) “Competent Authority” means a body or an officer empowered by the competent authority through delegation of powers to exercise specified powers in respect of specified matters.
XI) “Contract” means a person, syndicate or firm that has made a contract with the University and also includes contractors who have entered into an agreement with it for the execution of works or for providing certain services in connection therewith. XII) “Controlling Officer” means the Officer of the University, a Head of a Department or other officer who is entrusted with the responsibility to control the incurrence of expenditure and/or collection of revenue.
XIII) “Court” means Court of the University.
XIV) “Drawing & Disbursing Officer (DDO)” means an officer who has been authorized by the competent authority to draw the bills on behalf of a Department/Branch and pass the bills for disbursement of payment on behalf of the University. XV) “Employee” means an officer or employee of the University and includes a Government/other employee on Foreign Service under the University, but does not include a Government employee, who though doing work in the University, but remains under the administrative control of his parent Departmental in Government. XVI) “Executive Council” means Executive Council of the University. XVII) “Finance Committee” means Finance Committee of the University. XVIII) “Financial Year” means the year beginning on the 1st of April and ending on 31st March of the following calendar year.
XIX) “Governing Bodies” means the Academic Council, Finance Committee, Executive Council, and Court of the University.
XX) “Government” means the State Government of Haryana.
XXI) “Grant-in-aid” means any contribution or grant, which may be paid by the Government or any other Body on such terms and conditions as it may impose. XXII) “Head of Branch” means an officer declared as such under any general or special order of the competent authority. The term includes an Incharge of a Branch. XXIII) “Heads of Account”
(a) “Major Head” means the main head of account provided in the budget with the object of classifying the receipt and expenditure of the University. Major Heads of account generally correspond to ‘Functions’ of the University.
(b) “Minor Head” means a head subordinate to a Major Head. Minor Heads identify the ‘programmes’ to be undertaken to achieve the objectives enshrined under a Major Head.
(c) “Sub-head” means a head subordinate to a Minor Head. A programme may consist of a number of schemes or activities, and these shall generally correspond to a sub- head below a Minor Head under which such programme, activity or scheme has been listed.
(d) “Detailed Head” means a branch below a Sub-head. A Detailed Head indicates the object or nature of expenditure on a scheme or activity or organization in terms of inputs such as “Salaries”, Office Expenditure”.
(e) “Primary Unit” means a branch below a Detailed Head.
(f) “Standard Object of Expenditure” is a portion of supply under each Detailed Head, which is allotted to a prescribed Sub-Branch of the Head as representing one of the Standard Objects of the supply.
XXIV) “Joint Director (Local Audit)” means the Joint Director (Local Audit) or an Audit Officer or a Senior Auditor performing the duties of the Joint Director (Local Audit) under the orders of the Director (Local Audit), Haryana.
XXV) “Non-recurring expenditure” means expenditure sanctioned as one time charge irrespective of the fact whether the expenditure is actually incurred in one lump sum amount or in installments.
XXVI) “Re-appropriation” means transfer of funds by a competent authority from one unit of appropriation to another to meet specified expenditure.
XXVII) “Recurring expenditure” means the expenditure, which is incurred at periodic intervals. XXVIII) “Revised Estimates” are estimates of probable revenue or expenditure during a financial year under the various Major Heads, Minor Heads, Sub-heads and Primary units of appropriation framed in the course of the year on the basis of actual transactions till then recorded, and in the light of any facts which may be known during the remainder of the year. Additional appropriation/ supplementary grant is obtained, where necessary, on the basis of Revised Estimates.
XXIX) “Statutes” and “Ordinance” means the Statutes and Ordinance framed by the University under the Act.
XXX) “Technical Sanction” is the sanction of the competent authority to a properly detailed estimate of the cost of a work or repair.
XXXI) “University” means Maharshi Dayanand University, Rohtak, established by Maharshi Dayanand University Act, 1975 (No. 25 of 1975) of Haryana State Assembly. XXXII) “University Funds” means the funds of the University comprising all the revenues, grants, contributions, bequests, endowments, etc. received by the university, the amount borrowed by the university and all moneys received by the university to refund the loans. XXXIII) “University Account” means the Bank Account in which all the grants-in-aid and other revenues of the university are credited. It does not include current accounts maintained by the Deans/Directors/HODs in respect of Amalgamated Funds, Scholarships, Securities and the like, but includes the current and saving accounts maintained by the Engineering Unit for making payments in connection with the University works. All the terms and expressions not defined in this code and used in the Act, Statutes, Ordinances and Regulations of Maharshi Dayanand University, Rohtak shall have the meaning respectively assigned to them in the Act, Statutes, Ordinances and Regulations. 1.3 Removal of Doubts.
Where a doubt arises as to the interpretation and/ or meaning of any of the provision of these rules, the matter shall be referred to the Vice-Chancellor who, after considering the matter, may either give the interpretation and/or meaning of such provision or report the matter to the Executive Council for the purpose.
CHAPTER – 2
GENERAL PRINCIPLES OF FINANCIAL
MANAGEMENT AND CONTROL
2.1 - General 2.1.1 It is the primary objective of the University administration including its financial administration to provide effective support to the teaching, learning and research programmes. This objective should throughout be borne in mind, and duplication and delays avoided.
2.1.2 Efficient financial administration of the University calls for a coordinated working of all its component units. That all its components should work with a spirit of co-operation and in a co-ordinated manner, therefore, hardly need any emphasis. 2.1.3 An officer mandated by Statutes or Ordinances, or other person authorized by the Executive Council or any other competent authority for the proper collection, administration and utilization of funds placed at the disposal of the Department/office, Principal School/College or other institution shall do so with utmost care and responsibility. In exercising this responsibility, the Head of Department, Principal of School/College or other institution shall keep in mind the rules and procedures contained in this Code which are intended to ensure the judicious, proper and optimal use and safeguard of the University funds against injudicious spending, wastage, misuse or misappropriation. These principles are aimed at sound financial management and control and general guidance. 2.1.4 All transactions involving the taking and giving of cash, stores, other properties, rights, privileges and concessions, which have monetary value, shall be brought to account at once under proper head. Every University Officer shall be personally responsible for the money which passes through his hands, and for the proper record of receipts and payments in the prescribed format as well as for the correctness of the accounts in every respect. 2.1.5 The financial records and accounts of the University shall be maintained separately for each financial Year.
2.1.6 (a) The financial records and accounts of the University shall be maintained in the prescribed forms and registers.
(b) No addition to, alteration in or modification of any register or form prescribed in the University Accounts Code or introduction of any new form shall be made without the written orders of the Vice-Chancellor.
(c) For administrative convenience, however, such registers as may be subsidiary to the financial records and account books prescribed in the University Accounts Code may be maintained but such registers will not be recognized or substituted as financial records and books prescribed in this Code.
2.1.7 All financial records and books of accounts and registers shall be properly bound, neatly prepared and safely stored. No records or account shall be maintained in loose sheets or in loosely bound volumes. Computerized records/accounts in loose sheets shall be secured properly and got bound at the earliest, except where they are required to be kept otherwise.
2.1.8 The pages of all financial records, account books, stock registers and such other registers shall be serially numbered. The Head of Section shall record on each book before use a certificate recording the number of pages it contains alongwith dates of its opening and closing entries.
2.1.9 Forms, notes, letters, etc. which are used frequently in various offices of the University, should be standardized and printed. This, besides simplifying the procedures and work of the University, will lead to economy of time and effort.
2.1.10 General principles of financial management and control have been described in this Chapter, but detailed rules and procedures dealing with different aspects are given in other relevant Chapters.
2.2. Receipts of Money 2.2.1 (a) It shall be the primary responsibility of the Accounts Branch to ensure full and timely realization of all types of dues of the University. It will be ensured that these are correctly and promptly assessed, collected and deposited in the University accounts under the proper heads.
The Head of the Branch/Office shall undertake a series of surprise checks throughout the financial year to satisfy himself that the University dues are being recovered within a reasonable time and that cash has been correctly accounted for.
(b) The Accounts Branch shall ensure that the grants receivable by the University and the income accruing from investments are received and accounted for in due time.
(c) The Head of Branch/Office concerned shall satisfy himself that the system of control over the sales and services rendered and the subsequent payment thereof is adequate.
2.2.2 The sums received on behalf of the University shall forthwith be deposited into the Bank in full and appropriation of such sums to set off other expenditure shall be prohibited. 2.2.3 An officer or employee of the University authorized by the Vice-Chancellor to receive moneys on behalf of University shall give the payer a receipt of the amount realized duly signed by him. The receipt must be in the prescribed form and from the printed Receipt Book supplied to the employee for the issue of receipts.
2.2.4 Where it is found to be inconvenient to put full signature, prior approval may be obtained from the Finance Officer for putting initials subject to the condition that adequate safeguards are introduced for ensuring effective control over the collection and accounting of receipts.
2.2.5 No duplicate receipt shall be issued on the ground that original has been lost. If any necessity arises for such a document, a certificate may be given stating that on a specified day a certain sum on a certain account was received from or paid to a certain person. 2.2.6 Money, which is not a part of University dues or the deposit of which in the University account has not been authorized under any rules or orders, shall not be accepted. Private cash or accounts of the employee shall not be mixed up with the University cash or account under any circumstances.
2.2.7 Serially numbered Receipt Books will be supplied with serially numbered foils in triplicate. The receipt shall be made out with copying pencil/ball pen by using carbon paper. The original copy shall be given to the payer, first carbon copy shall be sent to the concerned Branch/Section and triplicate carbon copy shall be retained as office copy. 2.3. Expenditure and Payment of Moneys 2.3.1 No Officer shall incur expenditure or enter into any liability involving expenditure or transfer of money from the University account or University investment in deposits unless such expenditure or transfer has been sanctioned by general or specific order by the competent authority.
2.3.2 The following shall be the general principles governing all expenditure incurred from the University funds:
(a) That there shall be provision of funds authorized by the competent authority fixing the limits within which expenditure can be incurred.
(b) That the expenditure shall be incurred in conformity with the relevant provisions of the Act, Statutes, Ordinances, and Rules & Regulations framed by the various authorities of the University.
(c) That there should exist sanction, either general or special, accorded by the competent authority, authorizing the particular item of expenditure. It must be clearly understood that mere budget provision does not automatically carry with it any authority to incur any expenditure, for which prior and formal sanction of the competent authority must invariably be obtained. The budget provision simply indicates the limit upto which expenditure is permissible under any Head of Account.
2.3.3 That no authority or officer of the University in whom powers of financial sanction, including financial delegation, have been vested, shall exceed those powers of sanction. 2.3.4 That no officer of the University in whom financial powers have been delegated shall incur any expenditure, which involves or is likely to involve, at a later date, expenditure beyond his power of sanction.
2.3.5 That sanction to incur expenditure shall indicate the details of provisions under the relevant budget head wherefrom such expenditure is to be met. A sanction or order shall come into force from the date of issue unless any other date from which it shall come into force is specified therein.
2.3.6 That no money shall be drawn from the Bank unless it is required for immediate disbursement.
Standards of Financial Propriety 2.3.7 Every officer incurring or authorizing expenditure from University funds shall be guided by high standards of financial propriety and fiscal discipline. Generally, emphasis should be laid on the following principles while incurring or authorizing expenditure :
(a) Every officer shall exercise the same vigilance in respect of expenditure to be incurred from the University moneys as a person of ordinary prudence would exercise while spending his own money.
(b) The expenditure should not, prima facie, be more than what the occasion may demand.
(c) No authority shall exercise his powers of sanctioning expenditure to pass an order which will be directly or indirectly to his own advantage.
(d) University moneys should not be utilized for the benefit of a particular person or a section of the people, unless:
(i) A claim for the amount could be enforced in a Court of Law, or
(ii) The expenditure is in pursuance of a recognized policy or custom, or
(iii) The amount of allowances granted to meet expenditure of a particular type should be so decided and regulated that the allowances do not become a source of profit to the recipients.
(e) No officer of the University shall pass his own expenditure unless expressly provided under rules or under the order of a competent authority. Control of Expenditure 2.3.8 The Head of Office/Branch shall be responsible for enforcing financial discipline and strict economy at every step. He shall be responsible for observance of all relevant financial rules and regulations both by his own Office and by Offices subordinate to his and for guarding against wastage and loss of University money and property, and shall further ensure that the prescribed checks against them are effectively applied. 2.3.9 The Head of Branch shall ensure not only that the total expenditure is kept within the limits of the authorized appropriation, but also that the funds allotted are utilised in the interest of the University and only on the objects for which the money has been provided. In order to exercise proper control, he shall maintain detailed up-to-date accounts not only of what has actually been spent from an appropriation, but also what commitments and liabilities have made and/or still remain outstanding against it. He must be in a position to assume before the Finance Committee/Executive Council/Court etc. complete responsibility for expenditure, and to explain or justify any instance of excess expenditure or financial irregularity that may be brought to notice.
2.3.10 Every claim received in the University office shall be meticulously checked before releasing the payment.
2.3.11 All bills presented for payment shall be examined in accordance with the relevant provisions in the rules, and the Disbursing Officer shall, if the claim is found to be admissible, if the authority is proper, if the signature is true and in order, and if the receipt is a legal acquittance, make an order on the bill under his signature to release the payment. The order shall specify the amount payable both in words and in figures. 2.3.12 No ‘claim’ against the University, which is not presented within the prescribed time limit, will be entertained without a prior special sanction of the competent authority. 2.3.13 No cheque shall be signed unless required for immediate delivery to the payee or drawn in favour of a person other than the actual payee.
Delays in Payment 2.3.14 (a) Delay in the release of payment indisputably due from the University is contrary to all the rules and the budgetary principles, and shall be avoided.
(b) It is an important financial principle that the money indisputably payable should not, as far as possible, be left unpaid, and that the money paid shall, under no circumstances, be kept out of accounts a day longer than is absolutely necessary.
(c) An officer may not, on his own authority, authorize any payment in excess of the funds placed at his disposal. If the officer is called upon to honour a claim which is certain to produce an excess over the allotment or appropriation at his disposal, he shall obtain the orders of the Vice-Chancellor before authorizing the payment of the claim in question.
2.4. Ordering and Accounting for Supplies 2.4.1 The Head of Office/Branch or the Officer authorized for ordering supplies shall ensure the following :
(a) That all purchases or acquisition of stores are made in conformity with the procedure prescribed for indenting and purchasing the stores.
(b) That all supply orders are made in officially prescribed format or printed order forms, and are signed by a responsible person authorized to do so.
(c) That no person shall sign the trader’s own order form.
2.4.2 (a) That purchases are made in the most economical and transparent manner.
(b) That where possible, arrangements may be made with other Departments/Institutions at the same station so as to obviate the duplication of costly equipment, reprographic facilities, back numbers of journals, costly books, etc.
2.4.3 (a) That purchases are not made much in advance or in excess of actual requirements resulting in locking up of capital.
(b) That no equipment or machinery remains out of use for unduly long period for want of repairs.
2.4.4 That scientific instruments and equipments are exempted from custom duty. Duty exemption certificate should generally be obtained before placing orders for supplies. 2.4.5 That all stores on receipt are thoroughly examined and checked for quality and specifications, counted, measured or weighed, as the case may be, when delivery is taken. 2.4.6 That the stores are kept in safe custody, and suitable arrangements are made for their proper storage and upkeep. Special attention must be paid to the storage of costly, combustible, radioactive and perishable stores. Responsibility for the control and safety of costly and sophisticated equipments should be assigned to a particular Officer.
2.4.7 That the invoices are checked, signed and passed for payment by the person authorized to make the order.
2.4.8 That the stores are issued as per prescribed procedure and norms against duly approved indents by an authorized Officer.
2.4.9 (a) That proper stock ledgers and accounts are maintained for stores, equipments and implements.
(b) That history sheets are maintained for costly equipments as prescribed in rules or orders issued from time to time.
(c) That log books are maintained to keep a record of the out turn where equipments/implements/machines are meant for undertaking jobs for different Offices/Branches or users.
2.4.10 (a) That the stores are inspected periodically.
(b) That the stores are physically verified once in year.
(c) That the instructions prescribed for disposal of obsolete, surplus or unserviceable stores are duly observed.
2.5. Duties Regarding Maintenance of Accounts 2.5.1 The accounts and financial records of the University shall be maintained in the prescribed forms and registers. Every officer shall be personally responsible for the money which passes through his hands or is paid on his behalf, and for maintaining proper records of receipts and payments in the prescribed account as well as for the completeness and strict accuracy of the account in every respect and their submission within the prescribed time schedule.
2.5.2 It is not sufficient that an officer’s account should be correct to his own satisfaction. An officer has to satisfy not only himself, but also the audit that a claim which has been accepted is valid, that the voucher is a complete proof of payment which it supports, and that the account is correct in all respects.
2.5.3 It shall be necessary that all accounts are so kept and the details so fully recorded, as to afford the requisite means for satisfying any enquiry that may be made in the particulars of any case.
2.5.4 It is further essential that the records of payment, measurements and transactions in general are so clear, explicit and self-contained as to be citable as satisfactory and convincing evidence of facts, if so required, in a Court of Law.
2.5..5 An officer who signs or countersigns a certificate shall be personally responsible for the facts stated therein, and it is his duty to know the facts to the extent to which he may reasonably be expected to be aware of them. Appendage of signature on a printed certificate is no justification for one’s signing it as it is, unless it represents true facts of the case and is entirely endorsable by him as correct. If the printed matter does not represent the facts, it is his duty to make necessary amendment before affixing his signature.
2.5.6 (a) Every correction or alteration in accounts, stock register, etc. shall be made neatly in red ink (a single line being drawn through the original entry to be corrected and attested by the dated initials of the authorized officer). All corrections and alterations in bills and vouchers shall be similarly attested by the officer drawing the bill or the person preferring the claim, while those in the pay orders shall be similarly attested by the officer signing them.
(b) Erasures, over-writings and blinding of existing entries are absolutely forbidden, and shall on no account be made in bills, cheques, registers, statements and accounts of any description.
2.6 Contracts Elements of Contract 2.6.1 An agreement is normally entered into with the intention to create legal obligations to be discharged by the parties thereto. An agreement, which can be enforced by law, becomes a contract.
2.6.2 Every contract is the result of an offer or proposal and its acceptance. The offer must be communicated and the acceptance of the offer must also be communicated. The essentials of a valid contract are:
(a) An offer and its acceptance;
(b) The intention to create legal relationship thereby;
(c) The parties to the contract should be capable of entering into contract;
(d) Their consent should be free and real;
(e) The contract should be for an object permitted by law;
(f) The agreement should be supported by consideration; and
(g) The agreement should be capable of being performed.
2.6.3 The following are various types of contracts which figure in the course of the transaction of business in the University.
(a) Contracts between the University and members of the staff: Contract of service Deputation contract Agreement relating to special advances given to members of the staff.
(b) Contracts between the University and outsiders:
Contract for the supply of goods Contract for the construction of buildings, roads etc.
Contract for services like tailoring for stitching uniforms, carting goods, housekeeping, security, electrical fittings maintenance, maintenance of sanitation, maintenance of parks, gardens and landscape, etc.
Signing of Contracts on Behalf of the University 2.6.4 (a) The Registrar/other officers shall be the authorized officers to enter into agreements, sign documents and authenticate records on behalf of the University for items operational at University/Department/Office levels, respectively. They will act in such capacity when the appropriate authority of the University has taken a decision in the matter. They will also exercise such other powers and perform such other duties as may be prescribed by the Statutes or the Ordinances.
(b) The limitations upon the powers of the University Officers, the conditions under which such powers should be exercised and the general procedure prescribed with regard to the various classes of contracts such as calling for and acceptance of tenders, etc. are laid down in the relevant Chapters and Appendices of the University Accounts Code.
2.6.5 The University shall be made a party to every contract entered into on its behalf and the words “For and on behalf of the University” shall follow the designation appended below the signature of the officer authorized for executing the contract. 2.6.6 All formal agreements shall be drawn in triplicate, the original being on stamp paper of prescribed denomination. After execution, the original shall be kept in safe custody, the duplicate should be given to the contracting party and the triplicate kept in the relevant file for reference.
General Principles 2.6.7 The following general principles shall be observed by all officers empowered to enter into contracts or agreements involving expenditure from the University funds:
(a) The terms should be precise and definite, and there should be no room for ambiguity or mis-interpretation/ mis-understanding therein.
(b) Any contract, which if made between private persons, and is required by the law to be registered , shall be registered.
(c) (i) Wherever possible, standard forms of contracts should be adopted for specific types after adequate prior scrutiny and consultation with the University Legal Adviser. The alternatives used in the standard forms, which are not applicable, should invariably be scored out in consultation with the Finance Office.
(ii) In cases where standard forms of contracts are not used, legal and financial advice shall be taken in drafting the contracts and again before they are finally entered into.
(d) No relaxation of specifications agreed upon in a contract or relaxation of the terms of an agreement entered into by the University, shall be made without proper examination of the financial implications involved in such relaxation. The interest of the University shall be taken due care of before agreeing to any relaxation of agreement or contract. The Finance Office shall invariably be consulted in such cases.
(e) In selecting the tender to be accepted, the financial status of the individuals and firms tendering must be taken into consideration in addition to all other relevant factors.
(f) Save in exceptional circumstances, no University work of any kind should be commenced without prior execution of contract documents. Even in cases where a formal written contract is not made no order for supplies, etc., should be placed without at least a written agreement as to the price.
(g) Provision must be made in contracts for safeguarding University property entrusted to a contractor and for recovery of hire charges, if any, therefore.
(h) When a contract is likely to endure a period of more than five years or where the contract provides for a definite schedule for the execution of various stages of the contract, it should include a provision for unconditional power of revocation by the University, if the contractor fails to keep such schedule without any justifiable ground by serving a notice to that effect. The period of notice, in such circumstances, should not normally be longer than 3 months.
(i) All contracts shall have a provision for recovery of liquidated damages for defaults on the part of the contractor, unless any special instructions are issued by the competent authority.
(j) ‘Cost Plus’ contracts shall be avoided except where they are inevitable on account of reasons to be recorded by the competent authority.
Explanation: A ‘Cost Plus’ contract means a contract wherein the price payable for supplies or services under the contract is determined on the basis of the actual cost of production of the supplies or services concerned plus profit either at a fixed rate per unit or at a fixed percentage on the actual cost of production.
(k) (i) The terms of contract for the purchase of perishable stores should invariably include the following ‘warranty clause’. This form may, however, be modified, if the need be.
MODEL FORM OF WARRANTY
The contractor/seller hereby declares that the goods/stores/ articles sold to Maharshi Dayanand University Rohtak (hereinafter referred to as Purchaser) under this contract shall be of the best quality (and workmanship) and shall be strictly in accordance with the specifications and particulars contained/mentioned in the Clause _________ of the purchase Order No. ___________ dated __________ and the contractor/seller hereby guarantees that the said goods/stores/articles would continue to conform to the description and quality aforesaid for a period of ___________ days/months from the date of delivery of the said goods/stores/articles to the Purchaser and that notwithstanding the fact that the Purchaser (Inspector) may have inspected and/or approved the said goods/stores/articles be discovered not conforming to the description and quality aforesaid or have deteriorated (and the decision of the Purchaser in that behalf will be final and conclusive) the Purchaser will be entitled to reject the said goods/stores/articles or such portion thereof as may be discovered not to conform to the said description and quality. On such rejection the goods/articles/stores will be at the seller’s risk and all the provisions herein contained relating to rejection of goods etc., shall apply. The contractor/seller shall, if so called upon to do, replace the goods, etc./or such portion thereof as is rejected by the Purchaser otherwise the contractor/seller shall pay to the Purchaser such damages as may arise by reason of the breach of the condition herein contained. Nothing herein contained shall prejudice any other right of the Purchaser in that behalf under this contract or otherwise.
(ii) It shall be ensured that in all contracts where a warranty clause is included, the position regarding delivery of goods in replacement of rejected ones is made clear beyond doubt by mentioning clearly that the University will not bear any additional expenditure like transportation, etc. as a result of rejected goods.
(l) (i) ‘Lump Sum’ contracts should not be entered into except in cases of absolute necessity, and the reasons should be recorded in writing. Whenever such contracts are entered into, all necessary safeguards to protect the interests of the University should invariably be specified in the conditions of the contract.
(ii) A schedule of quantities with the rates of such materials as are supplied for use in the execution of the contract work shall form an essential part of the contract. It should also contain an escalation clause pertaining to the rates of such materials the prices of which are controlled by Government, and which the contractor arranges himself so that the University may get the benefit of any saving in the quantities of the material actually used in execution.
(m) The issues whether any sales tax, purchase tax, octroi and terminal taxes and other local taxes and duties are to be paid and, if so, by which party, should be settled and cleared up before entering into any contract, involving transfer of movable property, whatever its nature.
(n) For facilities like power and water (both treated and raw) allowed to contractors out of the University’s meters, a clause specifying the rate and mode of recovery towards cost of such facilities from the contractors shall be inserted.
(o) Before entering into a contract or an agreement, all pros and cons should be considered and validity of contractual documents should be ensured. In important and complicated cases, legal advice should be taken in the drafting of contracts before they are finally entered into.
(p) No work shall be done under an agreement/contract beyond the date of expiry of its tenure. Wherever it is considered that the work has to be continued beyond the date of expiry of the tenure, timely action should be taken for renewing the contract/ agreement for the further period required, after a suitable review of the provisions of the old agreement/contract to see whether any modification therein are required. 2.6.8 The terms of a contract once entered into shall not be materially modified without the prior consent of the authority competent to approve the contract. No payments to contractors by way of compensation or otherwise, outside the specified terms of the contract or in excess of the contract rates, may be authorized without the prior approval of the competent authority after obtaining financial advice.
2.6.9 No contract involving unspecified liability or any condition of an unusual character shall be entered into.
2.6.10 Where escalation in respect of labour, overheads, customs duties, freight, etc., is provided for in a contract, the basis for the calculation of the same should be clearly indicated. Calling of Tenders 2.6.11 Generally contracts should be placed only after open tenders have been invited. However, where open tenders are not invited and purchase is effected by negotiation or through limited tenders, specific reasons for doing so should be recorded and prior approval of the competent authority taken in writing, unless such action is taken in accordance with the instructions issued by the University. Similarly, when lowest tender is not accepted, reasons should be recorded and approval in writing of the Vice Chancellor should be obtained before placing orders.
Safe Custody of Contracts 2.6.12 All contracts shall be kept in the safe custody of the Registrar or any other authorized officer to be designated by the Vice-Chancellor.
Register of Contracts 2.6.13 All contracts should be entered in a register. Whenever an agreement is taken out from safe custody, a record should be made in the register showing the person to whom it was made over, under the dated initials of the officer keeping the contracts in safe custody. An acknowledgement in writing should also be obtained from the person to whom the contract is made over and this should be kept in the place in which the contract was, pending return of the contract to safe custody. When it is necessary to refer to any contract, as far as possible, the triplicate copy in the relevant file should be made use of and recourse to taking the original contract out of safe custody should be kept to the minimum. Verification of Contracts 2.6.14 (a) A periodical verification of all contracts in safe custody, at least once a year, shall be made by the Registrar/Officer in whose custody the contracts are kept and a note of the result of such verification shall be made by the Register under his dated signature.
(b) At the time of transfer of charge, the relieving officer and the relieved officer shall both sign the Register. Any document found missing or any unusual feature noticed at the time of such handing over and taking over charge, should be clearly recorded in the Register under the dated signatures of both the officers. 2.7 Defalcation and Losses Report of Losses 2.7.1 (a) Wherever any loss or shortage of University money, revenue, stores or other property by embezzlement, fraud, theft, etc., or neglect of any University employee or other causes is discovered, a preliminary investigation into the loss shall be made forthwith by the Head of Office and the result of such preliminary investigation shall be reported to the Registrar as well as to the Finance Officer even when such loss has been made good by the Party responsible for it. If the loss exceeds Rs. 10,000/-, the Registrar will obtain suitable orders of the Vice- Chancellor and also report it to the Executive Council in due course,
(b) A detailed enquiry shall forthwith be made by an officer of the University or a special Committee appointed for the purpose as may be deemed proper by the Vice-Chancellor. After the matter has been fully enquired into, taking due account of the total money lost, a report showing the circumstances in which the loss took place and the steps taken or recommended to recover the loss and to punish the offenders and measures taken or proposed to be taken to avoid recurrence of such loss in future, shall be submitted to the Vice-Chancellor by the Enquiry
(c) Whenever embezzlement of University money is discovered, an enquiry shall at once be instituted under the orders of the Vice-Chancellor who will place the Report of Enquiry alongwith Action Taken Report, if any, before the Executive Council.
2.7.2 Depending upon the results of the enquiry, departmental proceedings and/or prosecution shall be instituted at the earliest against the delinquents as per University’s prescribed rules and procedures.
Responsibility for Losses 2.7.3 Every officer shall be fully responsible for any loss caused to the University by fraud or negligence on his part and /or on the part of any other officer subordinate to him to the extent of his contribution or facilitation or assistance or negligence in causing the loss.
2.7.4 (a) The cardinal principle to determine the responsibility is that every University employee should exercise the same vigilance while incurring the expenditure from University fund, as a person of ordinary prudence would exercise in respect of expenditure and custody of his own money. In all cases of negligence and lack of devotion in the discharge of duty relating to costly assets such as buildings, equipments, machinery, etc. or their remaining unutilized or substantially unutilized for lack of planning; infructuous, unnecessary and injudicious expenditure; delays in taking action/decisions for placing orders or in making any due payments or in execution of sanctioned schemes and projects which result in increase of cost and/or over-runs, responsibility for the loss suffered by the University shall be fixed. While the competent authority may, in special cases, condone an officer’s bonafide errors of judgement causing financial loss to the University, if the officer can satisfactorily establish that he has acted in good faith and done his best to the limits of his ability and experience, personal liability shall be strictly enforced against all officers who are found dishonest, careless or negligent in the discharge of duties entrusted to them.
(b) In cases where loss has been caused due to delinquencies of subordinate officials and where it appears that this has been facilitated by laxity of supervision on the part of a superior officer, the latter shall also be called strictly to account and his liability in the matter shall be carefully assessed and fixed.
(c) (i) The desirability of enforcing pecuniary liability alongwith other forms of disciplinary action shall be considered as per rules.
(ii) If the loss has been caused through fraud, every endeavour shall be made to recover the whole amount from the guilty, and where laxity of supervision has facilitated the fraud, the supervising officer at fault shall also be appropriately penalized either directly by requiring him to make good the loss in sufficient proportion or indirectly by reduction or stoppage of his increments of pay.
(iii) It should always be considered whether full or part value of University property or equipment lost, damaged or destroyed by the extraneous considerations and/or negligence of the employee(s) entrusted with their care, should be recovered from the guilty official (s). The order of recovery should mention the amount and mode of recovery.
(d) Steps should be taken to ensure that the University employees involved in any loss or irregularity which is the subject of any enquiry is not inadvertently allowed his pensionary benefits while the enquiry is in progress. The Finance Officer and the authority competent to sanction pension/University’s share of Contributory Provident Fund shall be kept informed so as to deal with the case as may be required under the rules.
(e) The fact that the University employees who, before being found guilty of frauds or irregularities have been demobilized or have retired and have thus escaped punishment, should not be made a justification for absolving those who are also guilty but who still remain in service.
(f) It is of the greatest importance to avoid delay in the investigation of any loss due to fraud, negligence, financial irregularity, etc.
Material Losses 2.7.5 University Officers shall, in addition to taking action as prescribed above in this rule, follow the provisions indicated below in cases involving material loss or destruction of University property as a result of fire, theft, etc.
(a) When material losses due to suspected theft, fraud, fire etc., occur in any Office, such cases shall invariably be reported to the Police through the Registrar for investigation. The Registrar shall exercise his discretion in determining the stage at which reports should be sent to the police keeping in view the fact that the police investigation will be increasingly handicapped with lapse of time. Note: A report of the loss shall invariably be made to the Insurance Company, wherever the property has been insured against such risks.
(b) For the purpose of the above instruction, all losses, except the losses due to suspected sabotage, pilferage, defalcation etc. of the assessed value of Rs. 10,000/- and more shall be regarded as ‘material’. All such cases shall be reported to the police promptly irrespective of the value of the loss involved.
(c) Once the matter is reported to the police authorities, all concerned shall provide necessary information and other assistance to the police in their investigation. A formal investigation report should be obtained from the police authorities in all cases which are referred to them as indicated above.
Accidents 2.7.6 (a) Any loss exceeding book value of Rs. 5,000/- to an immovable property such as buildings, communication system or other works, caused by fire, flood, cyclone, earthquake or any other natural cause, shall be reported at once by the Officer(s) concerned to the Registrar.
(b) After the full enquiry into the cause and extent of loss has been made, a detailed report should be sent by the investigating authority concerned to the Registrar. Procedure for Accounting/Redrawal of Claims of Amount Lost Through Misappropriation, etc.
2.7.7 Moneys or cheques lost or stolen from the cash balances, permanent imprest or remittances in transit shall be reflected in the accounts immediately after the loss or defalcation has been discovered.
Note: The acceptance of counterfeit coins or currency notes (including mutilated and soiled currency notes), should be regarded as loss of cash.
2.7.8 An amount lost on account of misappropriation, defalcation, embezzlement, etc. may be redrawn if required for disbursement of claims against the University pending investigation and further action, and recovery, if any, of the loss with the approval of the authority competent to write off the loss in question in terms of the delegation of powers. The amount may be drawn on a simple receipt specifically mentioning that the amount is being redrawn under the orders of the competent authority pending the write off of the loss and the amount paid will be classified as a ‘Special Advance’. If any amount of the loss is subsequently recovered, it shall be credited to the above head and the balance, if any, under that head if found irrecoverable shall be written off with the sanction of the competent authority and adjusted as a loss under the head of account to which the expenditure of the Branch concerned is ordinarily debitable.
2.8 Financial Advice/Concurrence 2.8.1 The Finance Officer shall be responsible for exercising general supervision over the funds of the University. He is also to advise the University as regards its financial policy. It is necessary that:
(a) the University decision-making authorities shall ensure the participation of Finance Officer in all financial matters right from the stage of planning a scheme;
(b) the Finance Officer or his nominee should have representation on various Committees constituted for devising a policy or effecting purchase of stores, equipments, implements, etc. for assistance with regard to technical procedure and financial advice.
2.8.2 (a) If a Department/Branch requires advice on any financial or accounting matter, it should be referred to the Finance Officer.
(b) The Internal Audit Branch should also be available for advice, particularly in offices where accounting staff is not available.
(c) The circumstances and organizational methods will vary with the size of individual Office, but where the Head of an Office is in doubt as to the safeguards appropriate to his Office, he should consult the Internal Audit Officer. Where he suspects malpractice in any accounting area, he should refer the matter immediately to the Finance Officer.
2.8.3 As a general rule :
(a) In all important matters and transactions with financial implications, advice of Finance Officer should be obtained;
(b) All proposals for financial sanction should be routed through the Finance Officer unless exempted under delegation of powers.
2.8.4 University Statutes, Ordinances, Rules and Regulations, in so far as they embody orders or instructions of a financial character or have important financial bearing, shall be made after obtaining the advice of the Finance Officer. Precision and clarity being the very essence of all legal and statutory documents, drafting of notifications, etc., relation to financial matters should be given special care.
2.9 Extension of Time When Office is Closed Wherever in these rules, any act or proceeding is done or allowed to be done or Taken on a certain day, and the office is closed on that day, the act or proceeding shall be done or taken on the next working day.
2.10 Finance Officer’s Powers in Matters of Detail Any details connected with accounts, but not provided for in these Rules, the instructions and guidelines issued/to be issued by the Finance Officer from time to time shall be followed.
2.11 Manners of Keeping Accounts 2.11.1 (a) Books of accounts and Forms and Registers shall be appropriately bound and machine numbered before these are brought into use.
(b) No erasure shall be made in any account book, register, form, voucher or cheque; and if any correction has to be made, it shall be made neatly in ink and attested by the dated initials of the employee(s) concerned or, in the case of a cheque, by the signature of the officer signing the cheque, and, in the case of a voucher, by the DDO’s also. Any entry required to be substituted shall be simply crossed in red ink so that it remains legible though deleted.
2.12 Destruction of Records Vouchers, Registers and other Forms prescribed in these Rules shall not be weeded out or destroyed otherwise than in accordance with the directions as to the disposal of records, with the approval of the Vice-Chancellor.
Provided that no voucher, register or form, relating to an audit objection, shall be destroyed or weeded out until the audit objection has been got removed. (Refer to Chapter 21 for Details of Destruction of Records).
2.13 Maintenance of Suit Register The Registrar shall maintain a Central Register of Suits in UAC Form 1/1 in two volumes, one for suits in which the University is the Plaintiff and the other for suits in which the University is Defendant. The concerned Head of the Office/Department shall also maintain a Register of Suits in the same proforma and shall enter every case of the Office/Department in that Register indicating brief particulars of the case. After entering the Bill of Legal Advisor/Advocate’s fee and other expenditure in the Suit Register, the Head of the Office/Department will get the bill pertaining to the case simultaneously entered in the Central Suit Register by deputing the concerned official alongwith the bill and Suit Register of the Department.
2.14 Audit of Accounts 2.14.1 (a) The accounts of the University shall be regularly audited either by the Internal Audit of the University or by the Joint Director, Local Audit on the establishment of the Director (Local Fund Audit, Haryana).
(b) The University shall pay to Government an audit fee as determined by the Director, Local Audit, Haryana in accordance with the orders of the Govt.
(c) No cheque shall be issued from the University Account unless the Audit has recorded pre-audit enfacements on the relevant vouchers showing the amounts admitted for payment.
(d) The Director or Joint Director, Local Audit, Haryana shall issue such utilization certificates in respect of grants in-aid received from State Government and other funding agencies as may be required.
(e) The University shall deal with the Audit Notes, if any, received from the Director, Local Audit, Haryana expeditiously and have the objections removed without avoidable delay and Local Audit shall also drop the objections as expeditiously.
(f) The University shall promptly deal with the Audit Notes, if any, received from the Accountant General, Haryana, and have the paras removed without avoidable delay.
2.14.2 Modification in Present Pre-Audit Scheme The Pre-Audit Scheme given hereunder, notified by Government of Haryana vide Memo No. 14/116/09-3FA date 18.8.2009, shall be followed .
(a) The University accounts shall be subjected to Pre-audit as per the following expenditure limits :
Sr. No. Description of expenditure Exemption from
1. All recurring contingent expenses including stationery and consumables
2. Expenses by teachers against Research Projects of various funding agencies.
3. All non-recurring expenses including equipments, maintenance and repairs of building, minor construction works, etc.
4. Expenses relating to conduct of examination including
(b) In addition to the above, in the case of “salaries to staff and other fixed charges like dearness allowances/traveling allowance, etc., following procedure will be adopted :
(i) Salaries and other allowances Payment of salary of staff can be made without pre-audit except in the case of new appointments, which will be done after getting the same pre-audited. Similarly at the time of annual increment or enhancement occasioned in salary of an incumbent due to DA hike, the same will also be got checked from audit. However, whenever there is a clarification on pay revision/ACP/pay fixation, these cases shall be verified by L.A.D. by way of pre-audit.
(ii) Government levies Electricity, Telephone and medical reimbursement.
Full exemption from pre-audit on actual amount of bill received.
(iii) Refund against deposits Full exemption from pre-audit
(c) The modified scheme as state above, will be introduced initially in all Universities and the Board of School Education, Bhiwani.
(d) The results of this liberalized system of pre-audit will be reviewed after one year.
(e) Accounts including income and reconciliation of four months in a year i.e. one month in each quarter of each year shall be subjected to detailed check. Selected months shall be conveyed by the Directorate through month selection memo.
(f) The daily income and receipts of the universities and Board of School Education, Bhiwani will be checked by their Chief Accounts Officers and will be post-audited by the Audit staff.
(g) From 1.4.2010, the modified system of pre-audit will be implemented in all the universities and Board of School Education, Bhiwani with following changes in the instructions issued by Finance Department vide memo non 14/116/2009-3FA dated 18.8.2009:
(i) The bills of constructions/Engineering Branch will be subject to hundred percent pre- audit.
(ii) All bills pertaining to medical reimbursement will be pre-audited.
(iii) The post-audit of expenditure made out of grants will be done on priority basis for timely issue of utilization certificate.
(h) Audit organization will ensure that there is no splitting of bills and vouchers pertaining to the same expenditure with an aim to make use of the liberalized monetary limits of the 2.15 Books of Accounts The Accounts Branch of the University shall maintain books of accounts as specified in the Act, Statutes, Ordinances, Regulations and Accounts Code.
2.16 Inspection by Finance Officer 2.16.1 (a) Notwithstanding anything contained in these rules, the Finance Officer shall have power to inspect himself or through his nominee the accounts of any University office and to conduct a physical verification of cash, property or stores in the charge of any office of the University. Such inspections shall not absolve the other employees of their responsibilities in this regard.
Demand of Information by Statutory Audit/Internal Audit
(b) All Heads of Offices of the University shall afford all reasonable facilities to the statutory audit/internal audit for the discharge of their functions and furnish full information required by them for the preparation of any official account or report.
(c) No Office of the University shall withhold any information, books or other documents required by statutory audit/internal audit for the discharge of their bonafide functions.
Note: If the information, books or other documents or a part thereof are of a secret nature, these should be sent by name of the officer concerned who will deal with them in accordance with the standing instructions for handling and custody of such documents. Prompt Disposal of Audit Observations
(d) It shall be the responsibility of the Head of Office that the replies to audit observations are furnished within the prescribed time, and no objection is allowed to remain unsettled for unduly long period.
2.17 Power to Amend the Rules.
The power of interpreting, changing and relaxing these rules consistent with the Act and Statutes shall vest in the Executive Council/Vice-Chancellor of the University. CHAPTER – 3
SUBMISSION AND PROCESSING OF BILLS FOR
PAYMENT
3.1 Introductory 3.1.1 Bills presented to Accounts Branch/Local Audit as the case may be are required to be passed for payment after pre-audit as provided under Rule 2.14. 3.1.2 The expenditure shall be incurred out of the sanctioned budget and governed by the following essential conditions :
(a) that there is a provision of funds for the purpose mentioned in the proposal under consideration;
(b) that the expenditure shall be incurred in accordance with the financial rules and regulations framed by the competent authority; and
(c) that there exists sanction, either general or special for incurring the proposed expenditure.
3.2 Allocation of Expenditure Between Capital and Revenue 3.2.1 The classification of expenditure as Capital or Revenue will broadly depend on the following conditions :
(a) Capital expenditure may be generally defined as expenditure incurred with the object of either creating physical assets or purchase of an object or material of permanent character or reducing the recurring liabilities.
(b) It is not essential that all the capital assets should be productive in character or that they should even be revenue generating. A productive asset may be considered as one which produces sufficient revenue to afford a surplus over all expenditure incurred on its functioning. It may on rare occasions be necessary and justifiable to treat as capital a scheme not commercially remunerative, but involving large expenditure e.g. the construction of a new building.
(c) It is inherent in the definition of capital expenditure that the assets created should belong to the authority incurring the expenditure.
(d) Expenditure on a temporary asset cannot ordinarily be considered as expenditure of capital nature.
3.2.2 Having decided that the expenditure on a scheme for creation of a new or additional asset shall be classed as 'Capital', the following main principles shall be applied for the treatment of expenditure in accounts:
(a) Capital bears all charges for the initial construction of a project as well as charges for intermediate maintenance of the work while not yet opened for service including charges for such further additions and improvements, as may be sanctioned under rules made by the competent authority.
(b) Subject to (c) below, revenue bears all subsequent charges for maintenance and all working expenses. These embrace all expenditure on the working and upkeep of the project and also on such renewals and replacements and such additions, improvements or extensions as under rules made by competent authority, and are debitable to the Revenue Account.
(c) In the case of works of renewal and improvements which partake both of capital and revenue nature, it is impracticable to draw a hard and fast line between what is properly debitable to capital or revenue. Allocation in such cases is made by detailed rules and formulae devised by the executive authorities, which are applied in estimates and accounts to determine the allocation of expenditure between capital and revenue. These rules and formulae must necessarily be based upon some general principle of sound finance, which should aim at an equitable distribution of burdens between present and future generations. 3.3 General Instructions on Classification of Expenditure Besides proper application of the general principles set forth above and such other general or special orders as may be issued from time to time, the main responsibility of the Accounts Branch shall be to check and ensure that every expenditure is classified and recorded under the grant and the sub-head under which the provision for expenditure has been made in the Budget Estimates.
3.4 General Checks to be Exercised in Respect of Bills Submitted for Pre- Audit 3.4.1 The following checks will be exercised on all classes of bills:
(a) that the bills are prepared in the prescribed form, signatures are genuine, the bills are in original; a brief abstract is given in the official language authorised for the purpose under the signature of the Drawing & Disbursing Officer on all vouchers prepared in any other language, signatures, if not in the authorised script, are transliterated, and the sub-vouchers bear notes of dates of payment;
(b) that the details work up to the totals, and the totals are in written words as well as in figures;
(c) that they bear a 'pass order' signed by the Drawing & Disbursing Officer;
(d) that there are no erasures, and that any alterations in the total are attested by the officer concerned as many times as they are made;
(e) that no payment is made on a bill or order not signed by the Head of the Office himself or on a voucher or order not signed with a stamp, and if the bill/voucher is not accompanied by the sanction accorded by the sanctioning officer or by an authorised officer;
(f) that in all cases where tallying of different documents is mandatory, a note stating that the same has been done shall be recorded on both the documents, and the note shall be initialed by Accountant who does the tallying;
(g) that the deductions of Provident Funds, Income-Tax, etc. have been correctly Note: In respect of the pay bills of his own establishment and pension bills paid by him after pre-check, the FO/DR or AR (Accounts) acts as the officer responsible for recovering Income-Tax on the income chargeable under the head 'Salaries' and is, therefore, under a statutory obligation to deduct, at the time of payment, Income- Tax on the amount payable at the rate applicable to the estimated income of the assessee under the head "Salaries". In respect of other bills, the Accounts Branch is not responsible for checking the correctness of the Income-Tax deductions but whenever such bills come under his scrutiny in the course of audit, he should always see that deductions of Income-tax are not omitted in cases where such deductions should clearly be made h) that no bill of pay or allowances, not claimed within two years of its becoming due, is admitted without the sanction of the competent authority;
(i) that the stores are purchased as far as possible through the Store Purchase Office. 3.4.2 The checks, illustrated in the succeeding Rules, will essentially be exercised in respect of the various categories of bills. These checks are only illustrative and not exhaustive. 3.5.1 Check of Establishment Pay Bills
(a) That the bills have been signed by Drawing & Disbursing Officer and his signature tallies with the signature in the Register of Specimen Signatures.
(b) That the bills have been prepared in conformity to University Rules and Regulations.
(c) That the arithmetical calculations of the bills are correct.
(d) That the absentee statement, where required, is duly filled-in or a 'no leave' certificate is furnished.
(e) That the enhanced pay of officiating university employee is in accordance with the rules.
(f) That the dates of making over and receiving charge are stated and joining time is certified to be correct.
(g) That the increment drawn is supported by an increment certificate.
(h) That the number of persons for whom pay or leave salary has been drawn does not exceed sanctioned strength of the establishment.
(i) That where arrears are drawn, a certificate is recorded by Drawing & Disbursing Officer stating that necessary note has been made in the original bill (s) from which the claim was omitted.
(j) That the remarks that the claim has been effected on account of death, retirement, permanent transfers, or first appointment etc. are entered in detail.
(k) That the admissibility of special pay, personal pay and any other allowances claimed in an establishment bill shall be checked with reference to the rules or orders in force. A note of special pay, if admissible, shall be made in the red ink against the name of the incumbent concerned. In case, the changes in pay are not properly explained in the remarks columns of the pay bill, the amount may be kept in objection and the details called for separately. The pay bill need not be returned unpassed on this count.
3.5.2 Check of Increment Certificates Increment certificates should be examined to ensure that the increment claimed is according to rules, and that it has actually accrued. It should also be ensured :
(a) that the increment granted is admissible under University Rules;
(b) that the period of suspension is not treated as duty except in the circumstances explained in University Rules; and
(c) that a proper note of the increment is recorded in the Service Book with red entries, duly initialed by the authorized officer.
3.5.3 Check of Last Pay Certificates The Last Pay Certificates should be subjected to the following checks :
(a) The ‘Last Pay Certificate’ is issued by the Drawing & Disbursing Officer in the event of transfer of a University employee to another post or office under the jurisdiction of another Drawing & Disbursing Officer.
(b) In checking these certificates, it shall be ensured :
(i) that the certificate is in the prescribed form and has been properly drawn up;
(ii) that the extent of joining time availed of and the joining time pay are in conformity with University (Joining Time) Rules as amended from time to time;
(iii) that pay or leave salary, if due for a period prior to joining time, is drawn according to rates noted in the Last Pay Certificate; and
(iv) that certificate of availing of L.T.C. for the block is recorded on the Last Pay Certificate.
Note: (1) The term 'undisbursed pay and allowance' includes nothing except pay and allowances drawn and due to an employee, but for some reasons not paid.
(2) ‘Undisbursed pay and allowances’ may be retained by the Drawing & Disbursing Officer for a period not exceeding 3 months, provided suitable arrangements exist in his office for the safe custody of the money. The ‘undisbursed pay and allowance’s should be refunded by short drawls from the bills and may be taken in reduction of expenditure under various detailed heads, if these are refunded in the same accounting year. Such recoveries pertaining to previous year shall be recorded under distinct minor head 'Deduct Recoveries of Overpayments' below the concerned major/sub-major head in the Appropriation Accounts. The refunds against the ‘undisbursed pay and allowances should be noted against the short drawls in the original bills.
3.5.4 The Accounts Branch shall maintain an Establishment Check Register (UAC Form 6/4) separately for each DDO under his control. All sanctions for creation of posts will be noted in this register in the relevant columns. The confirmation is made only once in the service of an official which will be in the entry grade subject to the fulfillment of the conditions prescribed, and this issue has been de-linked from the availability of vacancies in the permanent posts in the grade. Therefore, the check to be exercised by the authorized Officer (DR/AR/Supdt.) may be limited to ensure that the total number of employees does not, at any time, exceed the number of posts sanctioned for each section of establishment, and shall include those who are (i) drawing duty pay, and (ii) are on leave including extra-ordinary leave or under suspension.
3.5.5 The posting in the Establishment Check Register will include the number for whom claims have been shown as paid in the monthly bill. This is necessary to ascertain the total number of persons paid salary against the number of posts sanctioned during a month. When the posting of all bills pertaining to an establishment in the register has been completed, the total shall be struck against each section.
3.5.6 Though it is the primary duty of the Head of the Office to obtain the sanction for extension/continuance of the temporary posts well in time, it is equally the responsibility of the FO/DR or AR to ensure that salary claims are not entertained and paid as a matter of routine beyond the date of expiry of the period for which such posts have been sanctioned. In cases where the sanction for the continuance of a temporary post which is otherwise a part of regular establishment and continued from year to year is not received even after three months from the date of expiry of the period of sanction, payments should be made only after obtaining the prior specific approval of the competent authority. In cases of posts sanctioned for a specific period, payment beyond the specific period shall be made only with the approval of the competent authority, if sanction for continuation of the post is not available. This would apply mutatis- mutandis to Cheque Drawing DDOs.
3.5.7 The increments drawn or any changes in the pay as indicated in the pay bills should be noted in this register. Similarly all cases of death, retirement, resignation and permanent transfer out of the establishment as also important events like suspension, withholding of increment etc. shall be noted in this register under the attestation of the D.R. or A.R. (Accounts).
3.6 Check of Pay Fixation Cases 3.6.1 While adopting revised pay scales, the following points must be adhered to:
(a) All the replacement scales should be based on the functional pay scales of the categories of the posts.
(b) The formula for fixation of pay and other related matters like categories of employees to whom these revised pay scales shall apply shall be the same as notified by the State Govt. for its employees. The option for adopting the revised pay scales shall be exercised by the employees within 3 months from the date of notification issued by the University.
(c) The university shall adopt Haryana Civil Services (ACP) Rules, 2008 notified by the Finance Department for the employees of State Govt. and implement the same on the same pattern as applicable to the State Govt. employees.
(d) The Dearness Allowance, House Rent Allowance, Conveyance allowance, Medical Allowance, Travelling Allowance and all other incentives to the employees of University will not exceed those admissible to the State Government employees under any circumstances, and shall not be made effective/applicable from the date earlier than that the State Govt. has fixed for release of such incentive(s) to its employees.
3.7 Check of Overtime Allowance Claims Overtime Allowance Claims may be admitted only after ensuring :
(a) that the Head of the Office has furnished the certificate, with the overtime bill(s) duly signed by him that ‘the employee(s) has/have performed overtime duty in the interest of the University and the purpose for which the employee
(s) was/were put on overtime duty has been fulfilled’.
(b) that the categories of staff for whom overtime allowance is claimed, are eligible for the same; and
(c) that the claims are made at the prescribed rates.
Note: Objection should not be taken to the grant of overtime allowance for a particular item of work which has been ordered by competent authority in public interest. 3.8 Check of Children Education Allowance, Tuition Fees 3.8.1 The instructions of the Haryana Govt. with regard to Children Education Allowance for its employees shall be followed by the University with the approval of Executive Council.
3.9 Check of Travelling Allowance Bills 3.9.1 In checking the travelling allowance bills, it must be ensured:
(a) that the journey was actually performed;
(b) that it was necessary, and authorised by general or special orders;
(c) that no bill has been submitted in respect of the same journey earlier;
(d) that the amount drawn is correct with reference to the rates and other rules. In addition, the Controlling Officer shall, before signing or countersigning a travelling allowance bill, scrutinize carefully the distances entered therein, but the Finance Officer shall check the amount claimed for the journey performed by railway and air where authorised specially by the competent authority, with the help of the Railway Time Table and the time table of the Indian Air Lines or Air Transport Company or other authentic source;
(e) that the bills are prepared strictly in accordance with the provision in the University Rules;
(f) that the dates and hours of the commencement as well as end of the journeys (where necessary) and the purpose of journey are clearly stated in the columns provided for the purpose in the travelling allowance bill form;
(g) that the bills are countersigned in all cases except where specifically authorised otherwise and that the prescribed certificates have been furnished by the Head of the Office;
(h) that the instructions for preparing travelling allowance bills as printed on the form of the T.A. Bill are duly complied with and those irrelevant certificates scored out;
(i) that the claims for the conveyance of motor-cycles, bicycles etc; during tour are supported by special orders of the authority competent to pass such orders.
(j) that in case of journeys performed by road between places connected by rail, the charge for travelling allowance should be supported by an order of the competent authority allowing travel by road by mode other than public transport.
(k) that the claims for travelling allowance for journeys performed to give evidence in a court are supported by the necessary certificates of (a) attendance and (b) non- payment of expenses by the court;
(l) that in the case of bills for journeys on transfer, the claims are supported by:
(i) the certificates showing the members and their relationship with claimant and the age of his children;
(ii) the certificate of declaration of actual expenses incurred in transportation of personal effects, conveyances etc; and
(iii) the certificate from the Controlling Officer that the charges on account of transportation of personal effects have been scrutinized by him; and that he is satisfied that these are reasonable;
(m) that the charges have been classified.
3.9.2 General Check Points The following points will be helpful in scrutinizing the travelling allowance bills. (A) Road Mileage
(i) Is not admissible in addition to (a) permanent travelling allowance, (b) conveyance allowance, and (c) contingent charges claimed towards taxi/scooter hire charges separately for transportation of official records.
(ii) Short journeys within a radius of 8 kilometers of the headquarters shall not be added to journeys made on the same day beyond 8 kilometers radius for the purpose of calculating the distance travelled on that day.
(iii) Fraction of a kilometer shall be omitted while calculating the total distance traveled for the purpose of preparing a bill.
While admitting daily allowance bills, it will be ensured:
(i) that the officer reaches a point outside the radius of 8 kilometers from his headquarters;
(ii) that the dates and the hours of departure from and arrival at the headquarters are shown when daily allowance is claimed;
(iii) that the Daily Allowance is inadmissible when the employee: a. is joining on duty on his first appointment;
b. is on transfer;
c. is on leave;
d. is getting permanent travelling allowance as provided under A (i) above; e. is claiming it in addition to railway fare or actual expenses; f. performs journey within a radius of 8 kilometers of his headquarters; g. halts at the headquarters.
While admitting Conveyance Allowance claims, it shall be ensured that :
(i) there is a sanction of the competent authority; and
(ii) the claim has been made as per specific terms of sanction, if any. While admitting claims for railway journeys, it shall be ensured that :
(i) the fare claimed is not higher than that given in the fare tables in force on the day(s) of journey, and the rate claimed is not higher than what is admissible to the claimant;
(ii) date and time of stoppage and resumption of a journey are stated on the bill whenever such journey is interjected by a halt (s) for which daily allowance is claimed.
Travelling Allowance is inadmissible when the employee :
a. proceeds on leave;
b. rejoins after leave;
c. is already on leave of any kind;
d. is dismissed from University service; and e. is transferred at the employee’s own request or for misconduct.
Note:- The cancellation/reservation charges on unused air/rail tickets may be preferred by the claimants in T.A. bill form and should be classified under the head "Travel Expenses". [Authority: Min. of Fin. Deptt. of Exp. O.M.No.19028/1/78-E-IV (B) dated 18.2.1981] 3.10 Leave Travel Concession The University has introduced New Leave Travel Concession (LTC) Scheme for its employees for visiting Home Town and any other place in India on the pattern of Haryana Government as notified by the State Govt.’ Finance Dept. vide letter no. 13/19/2008-2SII, dated 5.2.2009. The current block, as notified by the Haryana Govt., shall be 2008-2011 (1.1.2008 to 31.12.2011), and the subsequent blocks shall be 2012- 2015;2016-2019;2020-2023; and so on.
The following checks must be exercised while admitting the LTC bill for payment:
(a) That the employees, who have availed of the benefit of LTC in the current block under the old scheme, shall not be entitled to the benefit of this scheme for the balance period of the current block.
(b) The University employee will be entitled to one month pay as defined in Chapter 17 of this Accounts Code.
(c) If both the University employee and his/her spouse happen to be in the University/Central Govt./ Haryana Govt./other State Govt. or institutions funded by Central/Haryana/Other State Govts., only either of them shall be entitled to the benefit of LTC.
(d) The authority competent to authorize drawal and disbursement of the pay to the University employees shall also be competent to sanction drawal and disbursement of the ‘entitled amount’ under the LTC scheme.
(e) That no arrears of LTC would be admissible when the pay is revised from a retrospective date.
3.11 Medical Reimbursement Claims The following checks are to be exercised by the DDO in respect of Medical Reimbursement Bills:
(a) The bill for medical reimbursement shall be prepared in UAC Form 6/13.
(b) The amount drawn in the bills must be supported by proper receipts and vouchers in all cases, submitted by the University employee along with essentiality certificates in From ‘A’ and ‘B’.
(c) The DDO will examine whether the fees charged by the Authorised Medical Attendant is in accordance with the prescribed rates.
(d) The DDO will examine that all the sub-vouchers relating to tests etc. are duly countersigned by the Medical Officer, and by the authority competent to accept the claim of medical reimbursement.
(e) Special care will be taken in regard to the diet charges because these are normally included in the hospital bills submitted by the University employee, as these charges are not reimbursable except in case of Group ‘D’ employees who are to undergo treatment for T.B./mental diseases or leprosy, etc.
(f) Details in regard to the dependents of the University employee and residential address must be obtained from the University employee for keeping the same in the relevant records.
(g) The DDO will ensure that except for the period of in-door treatment, the University employee, whose bill is being admitted for payment, is not claiming fixed medical allowance.
3.12 Check of Fully-Vouched Contingencies Payment of fully-vouched contingencies will be made on detailed bills. No registers need be maintained for the record of these bills except in cases where the University desires the Finance Officer to check the charges of individual disbursing officers against a lump sum appropriation placed for the purpose at the disposal of a single higher authority. The actual check should be conducted as in the case of bills countersigned before payment. 3.13 Contingent Charges for Wages of Mazdoors and Pay and Allowances of Staff Paid from Contingencies Contingent charges on account of wages of ‘mazdoors’ engaged for manual labour and paid at daily or monthly rates will be admitted by the Internal Audit on the authority of a certificate signed by the DDO to the effect that the ‘mazdoors’ were actually engaged and paid contingent charges. Contingent charges on account of pay and allowances of all other staff paid from contingencies will be prepared on the basis of Attendance Roll and admitted by the Internal Audit on the authority of the certificate as proof of engagement, disbursement etc, as prescribed in the University Account Code (Receipts and Payments Rules).
3.14 Telephone Call Charges 3.14.1 Offices/Officers having telephones with ISD/STD facilities shall be responsible for all calls that may be made from their telephones. If some of the items in bills, received from the Department of Telecommunications, pertain to unavoidable private calls of officials, they will have to be paid in full by the concerned official who availed of the facility. Simultaneously, arrangements must be made for recovery from the official (s) for the private calls (s), and the amounts duly accounted for.
3.14.2 DDO shall check that the bills for phone calls are supported by the certificate that the calls were made for official purposes, and that in respect of exceptions mentioned therein, indication is given about the recovery thereof effected/being effected. 3.14.3 Recoveries made from University officers on account of private calls may be adjusted in reduction of expenditure and not credited as revenue receipts in University accounts. 3.15 Fee for Engagement of Lawyers The following points may be borne in mind while passing such bills: 3.15.1 Ministry of Law of the State Govt. should invariably be consulted by the University in regard to the fees of lawyers proposed to be engaged/ empanelled at District or High Court levels except in cases in respect of which standing arrangements have been made, and in cases where lawyers are engaged on scales of fees fixed by the High Court concerned.
3.15.2 The expenditure on payment of legal charges either on account of fees to barristers, pleaders etc., or the institutions of law suits or prosecution cases etc. as well as in connection with arbitration cases, it shall be ensured that the sanctions to incur the expenditure on legal charges, etc. conform to the limits prescribed by the State Govt. and sanctioned by the competent authority of the University.
3.16 Scholarship Bills 3.16.1 In the case of those stipends and scholarships which are considered to be important in view of their value or governing conditions or other similar considerations, the check should be conducted by numbers only.
3.16.2 Check by numbers will be to ensure that :
(a) the sanctioned scale/amount is not exceeded;
(b) there is no excess over the total amount sanctioned for the scholarship; and
(c) the scholarships are drawn only for the period for which they are sanctioned. 3.16.3 The bills for educational scholarships, stipends etc. should be checked with a view to see that they have been drawn in accordance with the procedure laid down in the relevant University Rules etc., and that necessary certificates showing that the prescribed conditions have been fulfilled, are furnished along with the bill or separately, as may be necessary. 3.16.4 Scholarship bills shall be posted in the register in UAC Form 2/6 in the same manner as the Register of Grants-in-Aid except for the column meant for watching receipt of Utilisation Certificates.
3.17 Loans and Advances Bills 3.17.1 In respect of loans and advances to University employees, the sanctions should be examined and the reasons for any unusual conditions included therein, if any e.g., remission of interest in an individual case, shall be enquired. It has to be seen that the conditions of repayment of loans and advances are complied with by the debtor, and the Finance Officer should exercise a close watch over repayment of principal and realization of interest. In reviewing the outstanding loans and advances, special attention should be directed to irregularities in payments, acknowledgement of balances and unrealizable and doubtful assets. During the pre-check of a loan or advance bill, it should be seen that :
(a) the amount claimed is in accordance with the sanction order, and
(b) the conditions to be fulfilled before payment, if any, are actually fulfilled and a certificate to that effect is recorded on the bill.
3.17.2 The responsibility for calculation of interest on interest bearing advances, recoverable from the loanee University employee, will be that of the Head of Office/DDO both for gazetted and non-gazetted University employees. The Heads of Offices would, however, be responsible for obtaining mortgage bonds and agreements, and ensuring that necessary insurance, as required under the rules, is effected.
3.17.3 The Finance Officer will be responsible for (a) checking the correctness of the interest recovered by the Drawing & Disbursing Officer, and (b) confirmation of the correctness of the balances as shown in the recovery schedules and pointing out discrepancy, if any, to the concerned Drawing & Disbursing Officer.
3.18 Long Term Advances to University Employees i.e. Advances Recoverable in not less than 60 Monthly Installments 3.18.1 Advances drawn must be checked in full. It shall be ensured:
(a) that every advance has been sanctioned by competent authority in accordance with the rules governing it;
(b) that the amount drawn does not exceed the amount sanctioned and permissible under the rules;
(c) that it is properly recorded;
(d) that recoveries are regularly made as required by rules and are duly accounted for in the books of the FO /DDO.
(e) that the balance outstanding at the close of each financial year is communicated to the University employee. For this purpose, a statement of outstanding balances should be furnished to the DDO concerned with the observation that non-receipt of any comments within two months would be treated as acceptance of balance by the
(f) that in case the recovery of the advance is neglected and/or irregular, the matter is reported to the sanctioning authority; and
(g) that the certificates regarding availability of funds have been issued by the competent authority before issue of sanction and incorporated therein. 3.18.2 The recovery of the advances should commence with the first release of pay, leave salary or subsistence allowance, as the case may be, after the advance is drawn. 3.18.3 It should be ensured that a certificate signed by the competent authority to the effect that agreement/surety bond in appropriate UAC Form has been signed by the University employee drawing the advance, and that it has been examined and found to be in order, is attached to the bill for drawl of Motor Car Advance.
3.18.4 The H.B.A. Rules, enshrined in Chapter 20, shall govern the grant of House Building Advance .
3.18.5 For monitoring the recoveries of these advances, a Loan Register for House Building/Conveyance/other loans and interest thereon, shall be maintained by the Finance Office in UAC Form 2/7. Separate pages should be allotted to record loans/advances sanctioned to University employees in various offices. All the recoveries effected from establishment bills should be noted based on the schedule of recoveries in the respective pages of the broadsheet which should be totaled every month and tallied with the ledger figures in the Bill Section. Any discrepancy between these two sets of figures should be noted and analyzed on separate pages set apart at the end of the register, to watch that they are eventually resolved and reconciled. This monthly verification, indicating progressive differences and their reconciliation, shall be submitted to the Finance Officer every month by 20th of the second succeeding month. Interest may be calculated by applying the formula given under Rule 20.3.3 of Chapter 20.
3.19 Check of Contracts 3.19.1 It is an important function of the Finance Officer to examine contracts or agreements for works or supplies entered into by the departmental authorities on behalf of the University. 3.19.2 Concerned executive authorities who enter into contracts for works or supplies will also be entirely responsible to watch their fulfillment.
3.19.3 The following fundamental principles are laid down by University for the guidance of authorities authorised to enter into contracts or agreements involving expenditure from Consolidated Fund of the University. These are financial rules but they also indicate the points which should be kept in mind by the Finance Officer in scrutinizing contracts :
(a) The terms of a contract must be precise and definite, and there must be no room for ambiguity or misconstruction therein;
(b) As far as possible, legal and financial advice should be taken in the drafting of contracts before they are finally entered into;
(c) Standard forms of contracts should be adopted wherever possible, the terms being subjected to adequate prior scrutiny;
(d) The terms of a contract once entered into shall not be materially modified without the previous consent of the competent financial authority;
(e) No contract involving an uncertain or indefinite liability, and no condition of an unusual character shall be entered into without the prior consent of the competent authority;
(f) Whenever practicable and advantageous to the University, contracts should be signed only after tenders have been openly invited and finalised, and in cases where the lowest tender is not accepted, reasons should be recorded justifying the circumstances;
(g) Besides all other relevant factors, the financial status of the individuals and firms being considered for award of contract must be taken into consideration;
(h) Even in cases where a formal written contract is not made, no order for supplies, execution of work, etc. shall be placed without at least a written agreement as to prices/rates and approval of the competent authority;
(i) Provision must be made in contracts for safeguarding University property entrusted to a contractor;
(j) When a contract is likely to endure for a period of more than five years, it should, wherever feasible, include a provision for an unconditional power of revocation or cancellation by the University with a notice of six months notice to that effect, and a notice of three months in case of yearly contracts; and
(k) The Finance Officer shall have power to examine contracts and to bring to the notice of the proper authority any cases where competitive tenders have not been sought, or where high tenders have been accepted, or where other irregularities in procedure have come to light.
3.19.4 Deviation from contracts requires an authority not inferior to the authority that is required for the original contract.
The Finance Officer shall also ensure that any payments outside the strict terms of the contract or in excess of contract rates are not made without the consent of the competent authority.
3.19.5 When payments included in the contingent bills are made at certain contact rates which are not required to be communicated to the Finance Officer, a certificate should be obtained from the competent authority to the effect that the claim is correct with reference to such contract rates.
3.20 Procedural Instructions for the Check of Contracts and Agreements and Contractor’s Bills 3.20.1 Check of Contracts and Agreements, Tenders etc.:
The general checks to be exercised are described in the earlier Rules. Other checks are detailed below :
3.20.2 In scrutinizing an Acceptance of Tender, it should be ensured :
(a) that the particulars regarding quantity and rates are furnished and the prices stipulated are firm. Particulars of the contracts providing for the price variation clause or provisional rates, should be carefully examined;
(b) that there is no omission of any important clause e.g. date, place and mode of delivery, despatch instructions, name of the consignee, etc.;
(c) that it is signed by an authority which is competent to enter into the contract. In case the signature on the order is that of an authority who is not competent to enter into the contract, a certificate to the effect that the purchase has been approved by the competent authority, is recorded thereon mentioning also the designation of the authority whose approval has been obtained;
Note: In the copies of Acceptances of Tender, Supply Orders etc., all the sheets containing rates, prices and other important conditions should be signed in ink by the purchasing officer concerned.
(d) that the provision for the payment of sales tax, excise duty, and other statutory govt. levies should be checked with reference to the instructions issued by the University from time to time. Vague provisions, such as, “sales tax will be paid, if legally leviable” should be objected to and the contracting officer should be asked to state in definite terms whether sales tax, excise duty, etc. are payable, and if so, at what rate and on what amount; and
(e) that the contract has been signed for and on behalf of the University. 3.20.3 All contracts and agreements required to be checked should be reviewed by the DR/AR (Accounts) and submitted to the Finance Officer for further review. Before checking purchase bills, the Finance Officer should satisfy himself that the sanctions and agreements were properly checked and bear suitable endorsement of check and review. 3.20.4 Cases of the type mentioned below may be scrutinized carefully :
(a) Inclusion of any new item of expenditure not originally contemplated in the contract.
(b) Extension in the date of delivery in contract where higher prices have been allowed on account of early delivery of stores.
(c) Compensation allowed to firms in respect of contracts.
(d) Any extraordinary or unusual stipulation in the contract, even if it is sanctioned by University.
(e) Any special and apparently objectionable procedure of purchase, inspection and payment sanctioned by University.
(f) All contracts on cost plus profit basis.
(g) All contracts with private firms to act as University stockists.
(h) All sanctions to ex-gratia payments.
3.21 Check of Bills for Supply of Stores Against Contracts, Purchase Orders and Agreements etc.
3.21.1 The following checks are prescribed in respect of bills for purchase of stores :
(a) That there is a provision of funds authorised by the competent authority.
(b) That there exists sanction either special or general accorded by the competent authority authorizing expenditure.
(c) That the purchases are made economically and in accordance with the rules and orders made by competent authority.
(d) That the rates mentioned in the bill agree with those shown in the purchase order.
(e) That certificates of quality and quantity of the stores being purchased are furnished.
(f) That the purchases have not been split up so as to avoid the necessity of obtaining the sanction of higher authority; and
(g) That in regard to stores purchased through an agency of DGS&D, debits for which are raised by the Stores Purchase Office, it should be ensured by the Finance Officer that the debits accepted are proper charges against the work, office or other expenditure unit under their control and that the supply has been duly sanctioned. For debits for advance claims not supported by consignee receipt certificates, the Finance Officer should take adequate and prompt action to get the consignee receipt and settle the discrepancy or deficiency, if any, mentioned in the receipt certificate in consultation with the consignee.
3.21.2 As per rules contained in Chapter 7 of GFR, the responsibility of maintaining numerical and value accounts of stores and undertaking the annual physical verification of stores shall be that of the departmental officers. The rules referred to above prohibit the physical verification of stores by persons not conversant with the classification, nomenclature and technique for proper verification of any particular classes of stores. Accordingly, the departmental accounting organization (including internal Audit) is not required to maintain the numerical and value accounts of stores or to conduct physical verification of stores and stock. During internal check, it should, however, be ensured : that a certificate of physical verification is recorded periodically by the responsible authority; that the system of verification adopted is adequate and proper; that the staff employed for physical verification are independent of those responsible for the physical custody of the stores or for keeping accounts thereof; and that the excesses and shortages found during physical verification are properly investigated, accounted for and adjusted or written off under orders of competent authority.
3.21.3 Where a ‘period’ or value’ account is maintained, it will be the duty of the Finance Officer to ensure, during internal check, that :
(a) the stores are priced with reasonable accuracy, and that the rates which are reviewed from time to time, are correlated with prevailing market rates and are revised, wherever necessary;
(b) the value accounts tally with the accounts of works and of departments connected with the stores transactions, the total of the value account tallies with the outstanding amount in the general accounts, and the numerical balance of stock materials is reconcilable with the total of ‘value’ balances in the accounts at the rates applicable to various classes of stores; and
(c) steps are taken for the adjustment of profits and losses resulting from revaluation, stock taking or other causes.
3.22 Post-Check of Bills Paid by Cheque Drawing DDOs.
3.22.1 In the case of bills paid without pre-check by the Drawing and Disbursing Officers having cheque drawing powers, in addition to the general checks mentioned under Rule 3.4 and check against provision of funds referred under Rule 3.21.1 above, the following checks will also be exercised at the time of conduct of post-check :
(a) that the vouchers are duly supported by acknowledgement of the payees;
(b) that they are stamped as “Paid”
(c) that unless otherwise provided in the rules, revenue stamps are affixed to all vouchers whose net amounts exceed Rs. 5000 and the stamps are duly cancelled;
(d) that the vouchers bear voucher nos. as given in the List of Payments. 3.22.2 The detailed instructions explained above for the checks of various categories of bills shall also be kept in mind at the time of conducting post-check of vouchers to be received from the cheque drawing DDOs.
3.23 Computerization of Accounts With a view to deliver the processed accounting inputs to the end users and improving the efficiency, accuracy, completeness and other qualitative aspects of financial reporting, the University has decided to switch over to e-Governance mode which includes computerization of entire gamut of its administrative functions, financial transactions, academic matters (admissions, examinations, class room management, etc.), stores control, implementation of RFID technology in library and all other activities. Computerization of financial operations would include budget management, cash flows, pay roll system, fees and all other types of collections, balance sheet preparation, transactions with banks, etc. The contract for switching over to e-Governance mode has been awarded to a firm. The Finance Office will switch over from the existing accounting software, COMPACT to the new system in the near future, probably by March 31, 2011. The University staff shall be imparted training in handling the new system. The firm shall make the ‘Manuals’ available for using the system.
CHAPTER – 4
BUDGET ESTIMATES
4.1 Object of Budget The Annual Financial Estimates also known as ‘Budget’, present under different heads the estimated receipts and expenditure of the University in respect of a financial year, before the commencement of that year. The Budget specifies the objects for and the limits up to which expenditure may be incurred during the course of financial year. Its object is to exercise financial control over approved items of income and expenditure – in other words, it is an instrument of financial control.
4.2 Classification 4.2.1 The budget estimates shall be prepared in accordance with the provisions of the Act, Statutes and other instructions laid down for the purpose. The Budget is broadly divided into five parts, viz.- Part I - Non-plan: Dealing with the receipts and expenditure connected with Administration of the University including general and auxiliary services. Part II - Plan : Dealing with the receipts and expenditure on development activities in the University out of Plan provision.
Part III - Self-Financing Schemes: Dealing with the receipts and expenditure relating to Self-Sustained/Self-Financed Courses and programmes.
Part IV - UGC & Other Funding Agencies : Dealing with the receipts and expenditure against Funds earmarked for specific purposes received from other funding agencies.
Part V- Debts, Deposits, Advances, etc. : Dealing with the receipts and expenditure relating to Debts, Deposits, Advances, etc.
4.2.2 The Budget estimates should also contain:
(a) A Budget Note or Explanatory Memorandum :
The Budget Note or Explanatory Memorandum at the beginning should explain salient features of the items provided and the important variations between the Budget Estimates and the Revised Estimates of the current year and Budget Estimates of the ensuing year. It should also consist of :
(i) Review of the fiscal administration of the past year;
The financial position for the current year;
(iii) The Budget Estimates for the ensuing year:
Each head of the account should be dealt with separately and the proposals for new expenditure should be explained clearly. The Budget Estimates as a whole must be analysed to justify the extra expenditure in the next year over the current year and striking increases should be examined and explained.
The Explanatory Memorandum should also indicate, in important cases, the actual physical achievement vis-a-vis expenditure actually incurred during current year and proposed and anticipated for the next year.
(b) Budget at a Glance:
It should show over all financial position of the University.
(c) Abstract of Income and Expenditure :
It should show the department-wise summary of income and expenditure
(d) Summary of Budget :
A summary of Budget is made up of Major Heads which are further sub-divided into Sub-Major Heads and Minor Heads. Further break-up of the provision against each Minor Head into Sub-Heads, Detailed Heads and Primary Units is also given in the Budget wherever necessary.
The Major, Minor and other heads of accounts are so fixed as to facilitate financial control and to make available statistical information required by the authorities of the University. The names of heads of accounts are so chosen as to indicate clearly and briefly the purpose of the expenditure or receipt
(e) The Budget Estimates should contain separate columns for the following :
(i) Heads of Account including their Sub-Branch.
(ii) Actuals for the previous year.
(iii) Budget Estimates and Revised Estimates for the current year.
(iv) Budget Estimates for the ensuing year.
(f) Schedule of Construction Work:
(g) The details of Receipts and Expenditure pertaining to UGC and other funding agencies should also be briefly included in the case of continuing schemes.
(h) An appendix called Schedule of Departmentwise Establishment showing the scales of pay and strength.
4.2.3 The details of progressive expenditure, grants received etc., should also be briefly included in the case of continuing schemes.
4.3. Formulation of Proposal for Budget Estimates and Preparation of Detailed Schedules.
The Finance Officer shall invite budget proposals for the next year from all the Heads of Offices of the University in the month of August each year. The Heads of Offices shall prepare detailed schedules of anticipated expenditure and receipts in UAC Forms 2/1 to 2/3. While preparing the detailed schedules, the general or special instructions issued by the Govt. or funding agencies, as the case may be, as well as actual expenditure incurred and income generated during the preceding year, should be given due consideration. Enhancements, especially extraordinary enhancements and incorporation of new Schemes/Objects of Expenditure, in the next year’s estimates of expenditure and depletion in income shall be accompanied by full justification and a descriptive note to each such schedule explaining the aims and objectives and programme of work. In the case of proposed new Schemes, the consent of the body or authority who has agreed to provide funds for the purpose through necessary grant-in-aid shall be provided. All these detailed schedules shall be passed on to the Finance Officer so as to reach him not later than the 31st October or any other date fixed by him, whichever is earlier.
4.4 Scrutiny of Detailed Schemes The Finance Officer shall cause the scrutiny of all the detailed schedules received by him from the HODs, Directors, and other Officers of the University in the light of such information as may be at his disposal e.g. any standing or special ceilings of overall expenditure prescribed by the body or authority who is to give the necessary grant-in-aid. In case of doubt, he will consult the HOD, Director, and other Officer of the University concerned for the purpose of modifying the detailed schedules received by him. After completing the scrutiny of the detailed schedules and their revision, wherever necessary, the Finance Officer shall consolidate the figures of estimated receipts and expenditure in the form of abstracts to work out the estimates of expenditure and income under each Major Head.
4.5 Preliminary Completion of Budget Estimates The Finance Officer shall complete the assignment referred to above by 30th November and obtain the orders of the Vice-Chancellor thereon in order to be ready with complete information by middle of December.
4.6 Transmission of Proposals & Detailed Schedules to Govt. etc. The abstract and the detailed schedules in respect of Schemes to be wholly or partially financed by the State Govt. shall be forwarded to the Government concerned by 31st December. Such abstracts and detailed schedules shall also be furnished to any other body which has agreed to provide necessary funds for the Schemes concerned, if so required. 4.7. Final Preparation of Budget Estimates for Presentation to the 4.7.1 In the month of February, when the budget session of the State Legislature is about to commence, the Finance Officer shall ascertain unofficially (in case not informed officially by Govt.) the figures of the grants-in-aid recommended for the University for inclusion in the State Budget. On the basis of the information available with him as to the grants-in- aid and other receipts expected from the Government or other sources, the Finance Officer shall revise the detailed schedules and abstracts where necessary and to the extent possible. He shall then prepare the Summary of Estimated Receipts and Expenditure for the next financial year alongwith the other information referred to in Rule 4.2.3 and obtain the order of the Vice-Chancellor for presenting the Estimates to the Finance Committee for examination and making a recommendation to the Executive Council. 4.7.2 The University shall furnish information for such programmes as may be required by the Government with regard to the necessity, source of funding, budgetary details etc. 4.7.3 The procedure for framing of estimates for Receipts and Expenditure are given in subsequent sub-rules.
(a) Estimates for Receipts 4.7.4 The estimates of receipts from Students as fees, etc. would be prepared by the Finance Officer on the basis of the anticipated number of students during the ensuing year finalized by the Registrar with the approval of the Vice-Chancellor.
Estimates of receipts from the lands and buildings will be furnished by the concerned Branch. Similarly, the estimates for other Heads will be prepared by the Offices/Branches concerned. The Estimates would be finalized by the Budget Section with reference to last year’s actuals and other relevant factors affecting the receipts. Estimates of receipts from Self-Financing Courses will be prepared after obtaining information from the Heads of Self-Financing Courses.
4.7.5 In the case of Earmarked (Special) Funds, the Estimates of receipts will be prepared by the Branch concerned and furnished to Budget Section of the Accounts Branch. 4.7.6 In the case of Deposits, Interest, etc. Heads, the Estimates will be finalized by the Budget Section on the basis of information furnished by the Branch concerned.
(b) Estimates for Expenditure 4.7.7 Both in the case of Maintenance and Development Budgets, estimates of expenditure under the various Heads will be prepared by the Branch concerned. New items of expenditure under Maintenance grant will be compiled separately for approval of the Finance Committee before inclusion in the Budget.
The estimates will be supported by the Schedule of Establishment and details of scheme- wise expenditure, wherever necessary.
In case of earmarked fund, the estimates under the various Heads under Self-Financing Scheme will be prepared and forwarded to the Budget Section. 4.7.8 In the case of Earmarked Funds, the estimates of expenditure under the various Heads/Schemes will be prepared by the concerned Branch/Section and forwarded to the Budget Section.
4.7.9 In the case of Deposits etc. Heads, the figures will be finalized by the Budget Section on the basis or information furnished by the concerned Branch.
4.7.10 All new major construction works or schemes or projects for which provision is proposed to be included in the Budget Estimates should invariably be placed before the Building and Works Committee for approval.
4.7.11 Proposals involving “fresh expenditure” will not ordinarily be considered unless exceptional circumstances exist where the expenditure is “inescapable”, and there is a strong justification to incur the expenditure. The order of preference in selection of works and schemes should be :
(a) Development and other expenditure for which grant from the Government of India/ Government of Haryana/Other Funding Agencies is forthcoming;
(b) Development and other expenditure which is productive and can be balanced by fees, etc., therefore;
(c) Other Development expenditure;
(d) Schemes of low priority which have already been held over at a convenient intermediate state or have to reach such stage.
4.7.12 Proposals for provision needed for creation of new posts should be accompanied by full details of the existing strength of the relevant Section or Unit and circumstances justifying the creation of new posts.
4.7.13 In the case of a proposal for increase in staff or revision of pay, the numbers, rates of pay and allowances and the period, if appointments are temporary, should be given in detail. This will be a recurrent item. The immediate financial impact in the current year should be indicated by working out the actual cost to be supported by a statement which should also specify the details of the existing establishment and its cost. A separate statement should be given showing the expenditure involved on average cost basis, if the scheme is going to be perpetual one. The financial impact of the proposal, both in the budget year in which it is proposed to give effect and in subsequent years, should be clearly brought out. A careful and detailed estimate should be made of the whole cost involved after taking into account the full implications of the proposals. The estimate should provide for other incidental expenditure e.g. traveling allowance and other allowances which are recurring items and contingencies, supplies and services which are non-recurring items 4.7.14 In estimating the cost of the schemes in the budget year, it should be carefully considered when the scheme is likely to be implemented and a pro rata provision should be made. It may also be stated whether the scheme has received requisite administrative approval of the competent authority.
Where a new scheme is planned to be taken up in the financial year, which has been accepted in principle and for which necessary details for budget provision are not available, provision should e limited to the requirements for preliminary expenses, and for such initial outlay as, for example, collection of material, requirement of skeleton staff, etc. 4.7.15 Due allowance should be made for the settlement of preliminaries involving delays e.g. selection of personnel, renting or constructing a building, etc. in working out the cost in the first year.
4.7.16 If the Scheme involves construction of a building or other works of capital nature, the cost of such works should be stated.
4.7.17 (a) In the case of building programme, a list showing the major works proposed to be executed during the year should form part of the Budget. Provision for special repairs of buildings should be indicated separately with full justification and estimates.
(b) The total cost of each scheme, the amount already spent and the balance required for future years should be clearly shown. If any building already in existence is to be vacated as the result of shifting to new building, it should be stated how it is proposed to utilize the building to be vacated.
(c) Provision should be made for works of which the preliminaries such as acquisition of site, preparation of detailed plans and estimates, etc. have either been settled or are likely to be settled before the close of the year.
4.7.18 Shortfall or addition of revenue or savings in existing expenditure involved in the scheme should also be stated.
4.7.19 The following instructions should be carefully observed in the preparation of the detailed estimates:
(a) The aim should be to achieve as close an approximation to the actuals as possible. The provision to be made will depend on the nature of items of expenditure. In the case of fixed charges or new schemes, acquisition of new assets, the provision should be based on the estimated requirements as per the existing rates and standards. In regard to fluctuating items, the provision may be based on the average of the past three years together with information and other relevant material available with the Budget Branch.
(b) As the University accounts are maintained on cash basis, the estimates should be prepared on the basis of what is expected to be actually received or paid (under proper sanction) during the ensuing year including arrears of previous years, and not only for the demand or the liability falling within the year. In no case should merely the net receipts or net charges be entered instead of the gross transaction in full.
(c) It is incorrect budgeting to omit or postpone charges that are inevitable, and it is worse budgeting to provide for receipts and expenditure that are not definitely expected.
(d) In framing estimates for the sanctioned establishment, the full amount of pay including increments which are likely to be drawn by staff on duty during the year should be provided for. Suitable provision should be made for leave salary. Provision for those who are on deputation or otherwise absent and unlikely to return to the strength within the period of the budget should be excluded.
(e) No provision should be made for posts which have been decided to be left unfilled. If, however, it is desired to revive any of these posts, approval of the Vice- Chancellor should be obtained before including any provision in the estimates on this account.
(f) For fluctuating charges such as laboratory expenses, travelling allowances, contingent charges, official postage and the like, a brief explanation of any abnormal variation should be given.
(g) The estimates of income and expenditure should be based upon a comparison of the past three years’ actuals with such modification as may be necessary in view of the probable increases or decreases due to some special factors likely to operate during the next year.
(h) Fixed charges are not to be taken as fixed for all times. These must be carefully reviewed, especially expenditure on supplies and services, and contingencies, as the time of preparation of the Budget is the most convenient time for suggesting economy. Fixed establishments are also not irrevocable, and should be formally reviewed by the Heads of Branches periodically.
(i) Estimating authorities should explain clearly, material variations between the Revised Estimates of the current year and the Budget Estimates of the ensuing year. Any supplementary or additional grants sanctioned after the passing of the Budget for the current year should be indicated, quoting authority.
(j) In case of expenditure which is met partly by Government and partly by the University or partly or wholly out of endowments, etc., the explanatory column should specify the estimates classified according to the source or sources from which the expenditure is proposed to be met.
(k) The requests for making provision for capital works should invariably indicate, in case of each work, the total amount sanctioned, the year of commencement of work, the total expenditure incurred upto the end of the previous year, amount provided for in the current year’s budget, the amount required for the next year, and the balance to be asked for in future years, and anticipated date of completion of work.
(l) If any provision is considered for a fresh item of expenditure, it should be included in a separate statement. The term “fresh charges” applies not only to expenditure, which has not been previously included in the sanctioned grant, but also to additions to or extensions of an existing service, commitment or facility e.g. provision of new buildings, addition to establishment etc. The statement of fresh charges should show separately:
(i) Schemes which have already been sanctioned subject to provision of funds in the coming years; and
(ii) Schemes which have been proposed, but are yet to be examined. The estimates under this head should contain full explanations with all details, and a statement of the cost (recurring and non-recurring) that will be incurred both in the budget year and later years. In the case of recurring expenditure, the estimated cost in the budget year and the ultimate recurring cost should be given. In case of non-recurring expenditure which will be spread over a number of years, the expenditure in each year should be given.
(m) The budget estimates under detailed heads should be rounded to the nearest thousand rupees. Ordinarily, provisions amounting to Rs. 500/- and above should be rounded to next thousand and those below Rs. 500/- should be omitted.
(n) All items should be provided under proper Heads of Account. Special care should be taken in classifying the Revenue and Capital expenditure.
(o) The sub-heads of accounts should not be unnecessarily multiplied. 4.7.20 In framing the budget estimates, the estimating authorities should exercise utmost foresight. An exortation to show foresight is not an invitation to provide for additional items of expenditure without justification. While provision should be made for all items of expenditure that can be foreseen, it is essential that the amount of provision should be restricted to the absolute minimum necessary. The Heads of Branches shall ensure that the rules and schedules for the preparation and submission of budget are followed strictly, and they should devote their personal attention in the preparation of budget estimates. 4.8 Excesses & Surrenders The Finance Officer shall invite a list of Excesses and Surrenders from all the Heads of Offices in the month of October. The Heads of Offices shall assess the progress of expenditure and anticipated expenditure during the remaining months of the year, and send a list of Excesses and Surrenders to the Finance Officer in UAC Form 2/4. The Finance Officer shall scrutinize these proposals in the light of reasons explained and put up proposals to the Vice-Chancellor for the re-appropriation of funds from one Standard Object of Expenditure to another or between Detailed Heads within the same Major Head. The Finance Officer may obtain a second list of Excesses and Surrenders in UAC Form 2/5 in the month of February for similar action.
4.9 Regularization of Excess When it is found after the close of the financial year that expenditure under any Major Head has exceeded the budget provision, the excess may be regularized with the approval of the Vice-Chancellor subject to the consent of the Finance Committee and the Executive Council. Excess under Detailed Heads of Expenditure may be approved by the Vice- Chancellor.
4.10 Review of Actual Receipts and Expenditure compared with Budget Estimates 4.10.1 A statement called Appropriation Account of the actual expenditure of the University during the preceding financial year, as compared with the budget provisions for that year, shall be prepared by the Finance Officer in the prescribed form in the month of July and shall be submitted to the Finance Committee. A similar statement shall be submitted in the case of actual receipts of the University during the preceding financial year, as compared with the Budget Estimates for that year.
4.10.2 The Finance Committee will duly consider all cases where there have been large variations and make such comments as it may consider necessary in each case. The statements with the comments of the Finance Committee shall subsequently be placed before the Court.
4.11 Preparation of Revised Budget Estimates If unforeseen circumstances arise during the course of the year requiring large scale changes in the Budget Estimates approved by the Court, the Vice-Chancellor may direct the Finance Officer to prepare Revised Budget Estimates to be laid before the Finance Committee for recommending the same to the Court for approval. 4.12 Allotments to Heads of Offices (HODs/Directors/other Controlling Officer) After the annual Budget Estimates have been approved, the Finance Officer shall work out in consultation with the Heads of Offices of the University who are overall incharge of the Schemes, the allotment to be placed at their disposal for respective Schemes. Subject to the power to incur expenditure delegated to various Officers of the University, the Heads of Offices shall incur expenditure and shall be responsible for ensuring that the allotments placed at their disposal are not exceeded. The Scheme Incharges/Principal Investigators shall submit periodical reports to the Heads of Offices concerned for the overall execution of the Scheme and carry on such directions which they may issue from time to time. In case, it becomes impossible to run the Scheme within the sanctioned amount, the Head of the Office concerned may approach the Finance Officer who may consider the feasibility of making additional funds available if possible, by making re-appropriation from one SOE/Scheme to another with the approval of the competent authority so as to meet the situation. However, until this is done, it shall be incumbent upon the Head of the Office or other Controlling Officer not to exceed the allotted budget. 4.13 Declaration of Unspent Funds as Non-lapsable Unspent amount under non-recurring Heads of capital nature such as buildings, land, machinery and equipment, furniture, books, motor-vehicles and other such items, if any, under State financed Schemes, may be declared as non-lapsable for utilization in the next financial year for the same specific items, by the Finance Officer after satisfying himself about the justification thereto. Similar unspent amount pertaining to the previous years (other than the last preceding year), may be declared as non-lapsable with the approval of the Vice-Chancellor. In regard to similar provisions in schemes financed by other funding agencies, the carry-over as non-lapsable may be approved likewise, but it shall be subject to approval of the concerned funding agencies.
4.14 Financial and Budgetary Control Periodical Review and Reports 4.14.1 The financial control in the University can be exercised broadly through the review of : (i) the ways and means position; and (ii) the progress of the expenditure as compared with the budget provision sanctioned by the Executive Council, and the funds provided by the concerned financing bodies. Periodical review of University revenue, expenditure, investments, property etc., and submission of reports to the Executive Council have been indicated in the relevant Chapters of this Code. These provisions should receive personal attention of and follow up action by the concerned officers. 4.14.2 For facilitating effective control, the balances of the University relating to the (i) Maintenance Grant, (ii) Development Grant, (iii) Earmarked (Special) Funds, and (iv) Debt, Deposits and Advances, etc. heads may be kept in separate bank accounts. 4.14.3 The bank balance as at the close of every month shall be promptly reconciled with the book balance with the minimum possible delay. The Finance Officer shall ensure that the differences, if any, are pursued and settled promptly.
4.14.4 Investments in respect of each Fund shall be monitored as detailed under Rules 5.16 and 4.14.5 Keeping a constant watch over the progress of expenditure is very important for fiscal management. To help the Heads of the Office to discharge these duties, the Finance Office shall furnish them with a statement showing the expenditure under the respective budget heads at the end of each quarter or at such shorter intervals as may be fixed in individual cases. The Heads of Office shall reconcile the figures of expenditure appearing in these statements with their books and take prompt action to reconcile the discrepancies. The Heads of Office shall also take action to ensure that the expenditure is kept within the budgeted provision and, where necessary, take timely action to obtain supplementary grants or seek orders for re-appropriation of funds from the available savings within the concerned budget head.
CHAPTER – 5
UNIVERSITY REVENUES
5.1 General 5.1.1 Following are the sources of revenue of the University.
(a) Grants from the State Government
(i) Maintenance (Non-plan) grants
(iii) Other special grants or grants for specific purpose.
(b) Grants from the University Grants Commission for specific purpose.
(c) Grants for earmarked (special) projects and sponsored Research Schemes from other funding agencies.
(d) Trusts, bequests, donations, endowments, contributions and income from investments
(e) Fees from students including hostel fee.
(f) Building, Lands and other properties
(g) Income from sale of publications
(h) Income from Self-Finances courses
(i) Receipts of Units like University Works and University Auxiliary Services.
(j) Receipts in the form of inspection fee, affiliation fee, etc. from affiliated 5.2 Manner of Receipt of Funds 5.2.1 Money may be received and credited to the University Account :
(a) By direct payment into the Bank
(b) by payment to an authorized official/officer and subsequent remittance by such official/officer into the University’s Bank account.
5.3 Record of Grants-in-aid and Contributions 5.3.1 All the grants-in-aid received from Government in the shape of cheques/drafts, etc. shall be credited direct to the University Account by the Finance Officer who shall at the same time keep a note of the same in a Register in UAC Form 3/1 for reference and record. 5.3.2 In respect of Schemes financed by other Agencies, a separate Register of demand raised, grant received and the balance shall be maintained by the concerned Head of Office/Drawing and Disbursing Officer in UAC Form 3/2 (Part A). This Register shall be in two parts: ‘Part A’ to note down the demand raised, grant received and the balance and ‘Part B’ to note down the sanctioned outlay separately for recurring and non-recurring Heads and expenditure incurred there-against from year to year. The Register in ‘Part A’ shall also be maintained by the office of Finance Officer. In addition to a bound Register, spare sheets to these Forms shall be added to each file and completed so that upto-date information is readily available in the file also. The Finance Officer may, however, obtain quarterly return in regard to all amounts that may have remained due for more than six months from the concerned Head of the Office and review the steps taken to recover the balance amount.
5.4 Issue of Receipts of Income When money is received by an employee of the University authorized to do so, it shall be in the form of cash or cheque or bank draft or postal order or money order. Except in the case of payments by postal orders or where a special form of receipt has been prescribed in these Rules, a receipt in UAC Form 3/3 shall be given to the person making the payment. When the payment is received by cheque, the words “on realization” shall be added to the receipt. The original copy of the receipt shall be handed over to the person making the payment and the carbon copy retained for record. The power to receive money may be delegated to an employee with the permission of the University Officer concerned. The employee so authorized shall also be authorized to sign the receipts”. 5.5 Control over Receipt Books A record of Receipt Books, used or unused, shall be kept in UAC Form 3/4. Before bringing a Receipt Book into use, a certificate as to the number of receipts contained therein shall be recorded thereon by the Drawing and Disbursing Officer after its physical verification, and it shall be got checked from Audit. Similarly when the Receipt Book is completed, a certificate to the effect that the entire income has been credited to the University account shall be recorded and the completion/return of Receipt Book also recorded in remarks column of UAC Form 3/4.
5.6 Disposal of Money Received All money received under Rule 5.4 shall be immediately entered in a Cash Book in UAC
Form 3/5 (a) and UAC Form 3/6 (b) on the receipt side in the Miscellaneous Column. The money so received shall be credited into the University Account on every Monday or as soon as it exceeds Rs.100/- whichever is earlier. The bank ‘pay-in-slip’ in support of the credits shall be carefully preserved.
5.7 Disposal of Postal Orders Received 5.7.1 In the case of money received by Postal Orders, the Drawing and Disbursing Officer receiving the same shall enter them in a Register of Postal Orders in UAC Form 3/6. Where Postal Orders have not been crossed, these will be crossed, and whereafter all Postal Orders received during the week shall be sent every Monday to the Bank for collection.
Receipts by Money Orders 5.7.2 The Money Orders shall be received by the DDO concerned or by an employee to whom this power has been delegated by the DDO. The officer receiving the Money Order will ensure that these are entered in the Money Order Register to be maintained in UAC Form 3/7 before returning the acknowledgement portion of MOs to the Postal authorities. Before closing the cash book of the day, it shall be ensured that the money orders entered in the Money Orders Register have been duly accounted for in the Cash Book and a receipt in UAC Form 3/3 has been issued to the payee.
5.8 Classified Statement of Income At the end of each month, a schemewise classified Statement of Income realized shall be prepared in UAC Form 3/8 by each employee authorized to receive money and forwarded to the Finance Officer through DDO as per provision under Rule 8.12 who shall, on receipt of the monthly Bank Statements, verify the credits thereof and investigate discrepancies, if any.
5.9 Withdrawal of Money 5.9.1 When money is to be withdrawn from the University account, a cheque shall be prepared and signed by the Finance Officer or an employee empowered in this behalf. Each withdrawal shall be supported by one or more vouchers. Before signing the cheque, it shall be ensured that the Finance Officer/Deputy or Assistant Registrar, Joint Director, Local Audit or Internal Audit, as the case may be, has enfaced the voucher with a pre-audit stamp, for the amount which is proposed to be withdrawn unless the withdrawal represents a transfer from one Bank to another. He shall, at the same time, record and sign a certificate indicating voucher number, cheque no. and date vide which payment is being made, and that the expenditure has been classified.
5.9.2 All cheque books shall be kept in safe custody and a record thereof kept in UAC Form 3/4. When blank cheque books are received from the Bank, the number of cheques in each book shall be counted and certificates printed thereon signed by an employee empowered by the Finance Officer in this behalf.
5.10 Numbering of Vouchers All vouchers shall be numbered with a suitable letter prefixed to the numbers to indicate the name of the Bank against which the cheque is to be issued. The number of the cheque should be clearly indicated on the voucher and the numbers of the vouchers on the counter- foil of the cheque.
5.11 Maintenance of Bank Ledgers 5.11.1 (a) As soon as cheques are signed, these shall be entered in Bank Ledger in UAC
Form 3/9. Where it is necessary to issue duplicate cheques in lieu of cancelled or lost cheques, the entries in the Ledger shall be made in red ink to distinguish such entries from those representing regular withdrawals. Bank charges, if any, shall be entered at the end of the month in the Ledger.
(b) At the end of the month, the entries in the Ledger in red and ordinary inks shall be separately totalled. A reconciliation statement shall be drawn up in each Ledger after tallying the entries with the Bank statement in the following form :- Add :
(1) Income as per Form : Rs.
(2) Amount in respect of cancelled cheques : Rs.
(3) Grants-in-aid, contributions etc. credited direct : Rs.
(4) Money received by Bank transfer : Rs.
(5) ----------------------------------------------- : Rs.
Total : Rs.
Deduct
(1) Amount paid by Bank transfer : Rs.
(2) Amount of duplicate cheques : Rs.
(3) Amount of other cheques issued : Rs.
(4) ------------------------------------------------ : Rs.
Total : Rs.
Closing balance to agree with Ledger balance : Rs.
Add income credited in the Bank but not included in Form : Rs. Add amount of uncashed cheques detailed below : Rs.
Balance as per Bank Statement : Rs.
Difference to be investigated : Rs.
5.12 Classification of Payments Before a cheque is signed, the Officer signing the cheque shall also ensure that the amount proposed to be withdrawn has been duly classified under the appropriate scheme. The classification shall be done in a Classified Abstract in UAC Form 3/10. 5.13 Posting of Classified Abstract Separate pages shall be set apart in the Classified Abstract for classifying the expenditure under different schemes. Book transfers shall also be reflected in the Classified Abstract. 5.14 Proving the Classified Abstract At the end of the month, various columns of Classified Abstract (UAC Form 3/10) for each Scheme shall be totaled, and a consolidated schemewise classification statement shall be prepared and tallied with the total of the amount of cheques issued during the month. 5.15 Classification of Income On receipt of classified statement of income (UAC Form 3/8) from the various Drawing and Disbursing Officers/creditors, the credits of the amounts shall be verified from the bank statements by the Finance Office. The Finance Office shall also consolidate the whole income schemewise in the bank ledgers.
5.16 Investments The Finance Officer, may, if the position of funds permits, subject to any policy laid down in this behalf by the Executive Council, invest a portion of the balance in the current/saving account in such short-term deposits as may be feasible. In order to watch the recovery of the interest and the amount invested, an account of such deposits shall be kept in a Register of Investments in UAC Form 3/11.
5.17.1 Review of Cash Balance
(a) General : There are two categories of investments:
(i) Investments relating to the various funds and finances of the University, and
(ii) Investments forming part of the original endowment.
(b) At the end of each week or such other intervals as may be prescribed, the balances standing to the credit of University in different Bank accounts shall be called for by the Cash Section of the Finance Office, and the information received shall be passed on to the respective Section Incharges responsible for the maintenance of books of accounts. The Sections shall review the balances as appearing in their books of accounts, in the light of the information received from the Bank, and submit proposals to the Investment Section for investment of surplus funds, if any, or for realization of the investments already made having regard to the immediate and future commitments.
5.17.2 Authority Competent to Make Investments
(a) Subject to the powers delegated by the Executive Council, the Vice-Chancellor or an officer authorized by him shall manage the property and have the power to invest any money belonging to the University, including the unapplied income, in such stocks, funds, shares, or securities as it may deem fit or in the purchase of immovable property in India with the power of diverting such investment from time to time.
(b) There shall be an Investment Committee constituted by the Executive Council in this behalf to deal with matters connected with investments of the University money. The Committee shall perform such functions as may be prescribed by the Executive Council from time to time. The instructions issued by the Govt. of India on the subject will also be kept in view by the Committee while deciding the mode of investment.
Securities, Shares
(c) In the case of investments in Govt. approved securities and shares etc., all proposals, whether for sale or purchase, shall be placed before the Investment Committee. In the case of urgency, the decision of the Investment Committee may be obtained by circulation.
Short-term Deposits
(d) Subject to general directions and policy prescribed by the Executive Council, the Vice-Chancellor may make investments short-term deposits (if the rate of interest is higher than that in the Savings Bank Account) with any of the Banks approved by the Executive Council within the maximum limit laid down by it as and when funds are available for investment. The Finance Officer may make an investment as recommended by the Committee.
5.17.3 Mode of Investment
(a) The investments of the University money shall be in conformity with the rules, regulations and Statutes of the University.
(b) All surplus balances of various funds, which are available for investment for a short period, shall be invested in short-term deposits with the approved Banks. All sums received by way of bequests, endowments, etc. and the surplus balances standing to the credit of University in its various accounts which are not generally required at short notice, shall be invested on a long-term basis in securities and other approved investments.
Investment Register
(a) A record of all investments of the University shall be maintained in a Register of Investments in UAC Form 3/11.
(b) The Investment Section shall ensure that for every deposit made, the deposit receipt is received from the Bank within a reasonable time, and that the same is securely preserved after a note of it is taken in the Register of Investments. Similarly, whenever deposit receipts are sent for realization, it shall be ensured that the sale proceeds are duly credited by the Bank or that a ‘pay-in-slip’ for the amount is received.
(c) The Investment Section shall also maintain other registers prescribed in the Account Code.
(d) Detailed instructions regarding maintenance of accounts of investments are contained in the Account Code.
5.17.5 Physical Verification of Securities/Fixed Deposit Receipts There shall be an annual physical verification of Securities/Fixed Deposit Receipts as per instructions contained in the Account Code.
5.17.6 Periodical Reviews
(a) The Finance Officer shall conduct a quarterly review of all investments. A report about ascertained losses or unusual depreciation in the market price shall be submitted to the Investment Committee, Finance Committee and Executive Council.
(b) The Finance Officer shall submit to the Investment Committee, Finance Committee and the Executive Council annually a statement in the month of February showing the fund-wise position of investments.
CHAPTER - 6
GRANTS
6.1 General 6.1.1 (a) The grants-in-aid are the major source of receipts of the University. The grants are usually received from the State Government, University Grants Commission, and sometimes from other agencies.
6.1.2 Broadly speaking the grants can be divided into two categories, viz., (i) recurring and (ii) non-recurring. Recurring grants are paid for financing the expenditure on pay and allowances and other contingent expenditures, whereas non-recurring grants are received generally for expenditure on acquisition of assets like buildings, learning resources (books, journals etc.) and equipments.
6.1.3 The grants shall be utilized only for the activities which are duly approved by the grant giving authority.
6.1.4 Grants received for specific purposes are to be utilized for such purposes only within the prescribed time limit and no diversion thereof for other purpose is permissible. 6.1.5 No funds out of the grants shall be utilized for any scheme or purpose for which prior approval of the grant giving authority has not been obtained. Incurring of expenditure in anticipation of grants or in excess of grants is also not permissible. 6.2.1 The normal activities of the University are funded under the Annual Maintenance Grant system by the State Government. The grant is determined on year-to-year basis on the Net Deficit principle, that is, the grant is sanctioned to cover the net deficit. For this purpose, estimates or projections of the gross expenditure and the gross receipts shall be made, and grant shall be gross expenditure minus gross receipts.
6.2.2 The elements that are crucial for the assessment of the requirements of the University are:
(a) Provision for salaries, all admissible allowances, Provident Fund, retirement benefits, etc.
(b) Provision for working expenses of the University as a whole. These would include:
(i) The requirements for items coming under the Budget head “Working Expenses” for all the Departments/Offices. These comprise sub-items like consumables, contingencies, postage, stationery, etc.;
(ii) The recurring expenses other than salaries and allowances on all centrally administered services, maintenance and amenities, water and power charges, general academic and research provisions, the library centralized
(c) Provision for Fellowships, Scholarships and Studentships. Note: (a), (b) & (c) relate to the existing activities.
(d) Requirements for the normal growth of the existing activities to be projected for the year.
(e) The cost of any existing activity which the University authorities may decide to discontinue or continue at a lower key during the period for which the assessment is being made. The cost saved should be deducted from the assessment under (a),
(b) & (c).
(f) Other receipts of the University on various counts during the period. 6.2.3 Assessment of some of the above elements is made as under :
(a) Assessment under 6.2.2 (a) – Salaries, Allowances, Provident Fund, etc.; The effect of annual increments in the pay scales should be assessed. There is always a certain number of vacant posts. Besides, periodical directions not to fill the posts when they fall vacant, for reasons of economy or otherwise, add to the number of vacant posts. Since all the vacant posts cannot be filled at once, a phased release of vacant posts should be planned and the cost thereof assessed.
(b) Assessment under 6.2.2 (b) - Working Expenses:
The projection of working expenses should be based on past experience, the normal growth of the ongoing activities, and the rise in prices of items generally coming under the category “consumables”. Due provision should be made to meet the impact of these elements. The University shall maintain a statement of percentage of rise in prices of broad categories of consumables from year to year. This should be referred to in projecting the requirement for consumable items. Likewise, any rise in the rates of “postage and the cost of travelling’ should be taken note of and provided for.
(c) Assessment under 6.2.2 (c) Fellowships, Scholarships and Studentships. The amount required for fellowships, scholarships and studentships should be assessed under the existing approved pattern of scholarships and fellowships relating to rates, numbers, etc., and the approved strength of beneficiaries. The requirements of Research Fellowships and Research Associateships for post- doctoral work should also be assessed under this Head. It may be noted that the provision for fellowships and scholarships is treated as a sub-block, and any savings thereof cannot be appropriated and used to augment the provision under “Salaries” or under “Working Expenses”. Any unutilized provision would, therefore, lapse at the end of the period.
(d) Assessment under 6.2.2 (f) - Other Receipts:
These receipts are broadly classified as indicated in Chapter 5. Their assessment should be based on past experience and current trends, and should take into account any special development which may have an impact on the projected receipts under any of the items.
6.2.4 The University is paid additional maintenance grant when there is a revision of Pay Scales, Dearness Allowance, etc.
6.3 Development (Plan) Grants 6.3.1 The development programmes of the University are financed generally by the State Government.
6.3.2 The University submits proposals for the development of its activities to the State Government. These proposals called “Plan Proposals” are drawn up normally for periods coinciding with the state Plan periods. The elements of a Development Plan are identified in several ways over a period of time. The following examples are illustrative:
(a) Some areas are identified internally by the Department/Office in the course of pursuing their normal activities.
(b) Some elements may represent areas of special interest of some faculty groups, which the authorities feel should be supported as relevant and desirable.
(c) Yet some others may get identified in the process of implementing the present approved Plan activities.
(d) Sometimes, a new activity is phased over two or more Plan periods.
(e) An activity might have been included in the previous plan. But owing to several reasons, it might be decided that it should be provided for in the subsequent Plan also.
(f) There might be other elements which the University may wish to take up as items representing urgent needs.
(g) Finally, a Plan for a subsequent period should make provision for any spillover of activities from the preceding Plan.
6.3.3 Normally, the University receives an indication from the State Government of the approximate size of the Plan finances that might become available during the forthcoming Plan period. Such an indication is normally given in advance of the close of the current Plan period, and the University is advised to work out its priorities amongst the several items in the proposals, and formulate its Plan within the anticipated Plan finances.
6.3.4 Based on the recommendations of the Visiting Committee where appointed for the purpose and the financial resources available for the Plan period, the State Government sanctions grants to the University for each Plan period. The grants mostly relate to implementation of schemes of recurring and non-recurring nature for the purpose of creation of new posts under the new Department/Office or for expansion of the construction of buildings. The grants are sanctioned on the specified conditions to be complied with by the University. The following conditions need a special mention.
(a) Progress Report 6.3.5 The State Government ordinarily releases amounts to the University against the sanctioned grants in such installments as may be necessary for meeting expenditure likely to be incurred during a period of three or six months. For this purpose, the Finance Officer may obtain progress reports and requirements from the Heads of Department/Offices, and prepare the demand on the basis of these reports and its own assessment. Before, however, doing so, the Finance Officer will ensure that the requirements received from the Department/Offices are within the approved budget provision. He shall also ensure that the grants are utilized for the purpose for which they are sanctioned and according to terms and conditions, if any. 6.3.6 The Finance Office shall maintain a Demand Register for watching the receipt of grants due from the State Government and other bodies. It will also maintain a Register to watch the progress of expenditure against the grants received for individual schemes. 6.3.7 At the end of each month, the Finance Office shall prepare a report showing various grants-in-aid due to the University, actual receipts, balance receivable, date and amount of the claims submitted, and the nature of the follow-up action taken in the matter. The report shall be supported by a review indicating the probable requirements of the immediate future and suggest suitable measures for providing the required sums. These measures may include encashment of investments, if any, or proposals for transferring or temporarily advancing amounts from one account to another.
6.3.8 A statement of accounts duly audited and a certificate from the statutory Auditors of the University to the effect that “the grant has been fully utilized for the purpose for which it was sanctioned”, shall be furnished to the Government, as soon as possible, at the end of each financial year. In the case of Maintenance and Development grants, the utilization certificates may be submitted in two stages: (i) immediately after the accounts of the year are closed ; and (ii) after the accounts of the year are audited by statutory Auditors. In case of Maintenance grants, the certificate would show the expenditure against the total grant received during the year. In the case of Development grants, however, the certificate would be drawn up separately for each scheme.
(c) Maintenance of the Assets Created Out of the State Government Grants. 6.3.9 One of the conditions of the State Government relating to its grants is that the assets, acquired wholly or substantially out of the grant provided by it, shall not be disposed of, encumbered or utilized without prior sanction of the State Government for purposes other than those for which the grant was given, and should at any time any activity cease to function, such assets shall revert to the State Government. The University shall, therefore, maintain a register of such assets in UAC Forms 4/1 and 4/2. The Heads of Branch shall maintain the register up-to-date and shall furnish the following certificates to the Finance Officer every year before 15th of April.
Certificates
1. Certificates regarding physical verification :
“Certified that all the assets/articles that were purchased out of different grants sanctioned by the State Government during the year have been physically verified and that the same were found to be in order.”
2. Certificate regarding Maintenance of Dead Stock Register : “Certified that inventories of permanent or semi-permanent assets created/acquired wholly or mainly out of the grants given by the State Government are being maintained in the prescribed format and are being kept up-to-date.” 6.4 Unassigned Grants The Funding Agency may also give an unassigned grant for meeting the expenditure on items covered under the scheme of unassigned grant.
The University may incur expenditure on the items covered under the scheme from the unassigned grant allocated without seeking prior concurrence of the Funding Agency, except where otherwise indicated, in accordance with the priority which the University may assign to them subject to the general conditions prescribed by the Funding Agency. 6.5 University Grants Commission Grants The University may receive grants from University Grants Commission for conducting research, organizing seminars, holding workshops, etc. The University shall incur expenditure from these grants subject to the conditions laid down by the sponsoring agencies and render such statement of accounts, etc. as may be required. 6.6 Grants from Other Agencies The University may receive grants from other Agencies for sponsored research schemes, seminars, workshops, etc. The University shall incur expenditure from these grants subject to the conditions laid down by the sponsoring agencies and render such statement of accounts, etc. as may be required.
6.7 Supplementary Grants In addition to the grants sanctioned at the commencement of the year, it may sometimes be necessary to obtain supplementary grants. Supplementary grants may be required in the following cases:
(a) When the amount included in the original grant under the relevant Heads is found to be insufficient for the expenditure which has to be incurred during the year.
(b) When expenditure has to be incurred on fresh charges, not contemplated in the original estimates for the year;
(c) When it is desired to obtain prior approval of the Executive Council to a scheme or item involving large financial commitments for the present as well as future years.
(d) The Executive Council shall not accept any proposals for supplementary demands unless it is convinced that if the supplementary grant is not sanctioned, serious inconvenience will be caused.
(e) In the case of schemes which are fully financed by other funding Agencies such as University Grants Commission, CSIR, DST, ICAR, etc., formal supplementary grants need not be obtained after the scheme is administratively approved by the Executive Council, and the expenditure is contained within the grants provided by the Funding Agency. A suitable explanatory note may be given with reference to the Revised Estimates in case of major variations.
CHAPTER - 7
PRE-CHECK PAYMENT PROCEDURE
7.1 General The following procedures shall be observed for presenting, processing and passing of claims presented to the Finance Officer/DDO for payment.
7.1.1 The payment procedures will be subject to provisions contained in the Act & Statutes of the University as amended from time to time.
(a) All payments shall be made by cheque or demand draft drawn in favour of a party, person, bank or an authorized agent, unless decided otherwise due to unavoidable circumstances.
(b) As far as possible, the cheque/demand draft shall be crossed. In case payment is made by open cheque, it will not be sent to the payee by post. 7.2 Scrutiny and Payment Procedures 7.2.1 Bills shall be passed for payment and cheques issued within a maximum of seven working days of their receipt. Effort should be made to pass the bills and make the payments even within a shorter period. The Finance Office shall lay down norms in this regard and personally monitor their compliance. In addition, the bills with indication as ‘Immediate’ by the DDO shall be attended to urgently so that the cheques are issued either on the same or the next day. The checks that are to be exercised on the bills by the payment Section have been explained in Chapter 3 which deal exclusively with this aspect. 7.2.2 The Finance Officer shall obtain the specimen signatures of the officers drawing pay, contingent, grants-in-aid bills etc., and paste the same on the pages of the payment register set apart for the purpose, duly attested in ink.
7.2.3 After duly examining the bills in all aspects and recording pay order for the payment in words and figures on each bill, Assistant/Superintendent shall submit them to the DDO for his scrutiny. This shall be done along with the concerned ‘DDO-wise Bill Passing-cum-Expenditure Control Register’ in UAC Form 5/1. The DDO will examine the bills and satisfy himself regarding the correctness of the charges. Thereafter, he will tick off the relevant entry, affix his initials in the ECR and approve the pay orders under his full dated signature. Subsequently, the bills, so passed, shall be made over immediately to the Cheque Section. 7.2.4 Payments in respect of outstation establishments will be done through bank drafts, or alternatively through direct credit to the accounts of the payees through banking channels by following the approved e-payment procedure. The provisions of paras 7.9.1 to 7.9.11 of Chapter 7 are relevant for the purpose of payments through bank drafts. The bank drafts shall be collected from the bank with which the University is in account, by sending a requisition in Draft Form available with the bank. Requisition for cancellation of the bank drafts obtained earlier or issue of fresh drafts in lieu of the cancelled one shall be sent separately to the banks and shall not be included in the requisition statement of fresh demand drafts. Every requisition sent to the bank shall be entered in the Register of Bank Drafts to be maintained in UAC Form 5/2 and the Finance Officer/Cheque Drawing DDO shall watch their receipt from the bank and dispatch to the payees concerned through this Register. The bank will return one copy of the requisition statement to the PAO while issuing bank drafts. The bank draft shall be dispatched with a forwarding letter in UAC
Form 5/3 to the party concerned by Registered Post, and the receipt of acknowledgement should be watched. The details of cancellation or corrections in Demand Draft will be noted against the original entry in Register of Bank Drafts (UAC Form 5/2). 7.2.5 The cheque writer shall prepare a cheque for the net amount. When two or more bills are payable to the same person/firm, a single cheque will be issued for the total amount and the particulars of each bill will be entered separately in the register of cheques delivered. The cheque writer will note the number of the cheque prominently on the bill, enter its details in the Register of the Cheques Drawn to be maintained in UAC Form 5/4 and submit the cheque along with the bill to the Finance Officer or other officer authorized to sign the cheque for payments of Rs. Ten lakhs and above, through the Superintendent/AR (A/C)/DR (A/C). The Finance Officer/other authorized signing the cheque will tick the cheque number, ensure that the amount of cheque agrees with the amount passed for payment, and then sign the cheque after cancelling the pay order given earlier. The passed bill together with the cheque will be returned to the Cheque Section. At the time of its delivery, the Cheque Section will affix the date on the cheque. If the acknowledgement is received by the time of delivery/dispatch of the cheque, the Cheque Section will immediately attach the payee’s acknowledgement to the bill, stamp it as paid and write the Voucher Number on the upper right hand corner of the bill. The details of payments for each day shall be entered in the Register of Cheques Delivered (UAC Form 5/5) on a separate page for each day. The register may be prepared with second and third perforated copies for each page for making two carbon copies required as “Daily Memorandum of Pre-check Payments”. The acknowledgement receipt should be watched in every case and should be in the following form:
“Received Cheque No. ______________________ dated ___________________ for Rs. ______________ from the _______________________ in payment of Bill No. _________________ dated _____________ on account of _____________________” If the crossed cheque/demand draft is required to be sent by post, the Cheque Section will dispatch the instrument/valuable by Registered Post along with the covering memo in UAC Form 5/3 and a copy of the ‘printed acknowledgement. The acknowledgement form is to be returned by the payee to the Finance Office on receiving the payment, and the Finance Office will keep a watch on the same.
7.3 Procedure for Issuing a Fresh Cheque in Lieu of a Lost One 7.3.1 If the Finance Officer or DDO of a Department/Office is approached with the request for a fresh cheque in lieu of the one issued earlier on the grounds that it has been lost, the Finance Officer/DDO shall proceed with such request in the manner stated below:
(a) The Finance Officer/DDO shall send an intimation regarding the reported loss of cheque to the bank/branch on which the cheque was drawn by registered post (with Acknowledgement Due), and advise it to ‘stop payment’ if it is presented thereafter. If the currency of such a cheque has not expired in terms of Rule 45 of the C.G.A. (R&P) Rules, 1983, at the time of sending the intimation, the bank shall acknowledge in writing that it has kept a note of the ‘Stop Payment Order’ in the following form :
“We acknowledge the receipt of your letter No. ____________________ dated __________ and advice having noted to stop payment of cheque No. _____________ dated __________ for Rs. _____________ favouring ________________________. In this connection, it is certified that cheque
No. _____________ dated _____________ for Rs. _____________ reported by the drawing officer to have been drawn by him on this bank in favour of ______________________ will not be paid, if presented thereafter”. In case the currency of the cheque reported to have been lost has expired at the time of intimation to the bank, the acknowledgement of the ‘Stop Payment Order’ from the bank may not be insisted. The postal acknowledgement in such cases may be treated as sufficient for the record of the Finance Office.
(b) The Finance Officer will satisfy himself from the records maintained in his office, viz. the payment/error scrolls received from the paying bank, Register of Cheques Delivered, etc. that the payment of the cheque in question has not been made. If the currency of the lost cheque expires on Saturday, the Finance Officer shall also verify the payment scroll for the subsequent working day of the bank.
(c) The party requesting for the issue of fresh cheque in place of the lost one should execute an indemnity bond in the Form GAR 12. The execution of such an indemnity bond is not necessary in the case of a Government department/Public Undertaking wholly owned by Government or the bank. In these cases a fresh cheque can be issued on receipt of a certificate that the cheque alleged to have been lost was not received by them or it was lost after receiving and that it will be returned to the Finance Officer, if found afterwards.
(d) The Finance Officer may issue a fresh cheque in lieu of the lost one under intimation to the DDO and/or payee on completion of the requirements in clauses
(a) to (c) above. He shall also keep a suitable note regarding the issue of a fresh cheque in lieu of the lost one on the spare leaf provided in MICR cheque book, and on the counterfoil where MICR cheques have not so far been introduced, as well as on the paid vouchers and against the relevant entries in the Register of Cheques Delivered.
7.3.2 If it is found afterwards that the original cheque has been paid, the Finance Officer will take up the matter with the paying branch through a letter by Fax/e-mail/any other reliable mode and place the paid amount under the Head “Suspense Accounts (Civil)- Cheques Cancelled But Paid”, till the matter is investigated and the amount either recovered or written off. The paid cheque till that time will be removed from the payment scroll and kept in the personal custody of the Finance Officer. In case the DDO notices such fact of payment, he will immediately report the matter to the paying branch by Fax/e- mail/any other reliable mode and inform the Finance Officer for further action. 7.4 Procedure for Issuing Fresh Cheque in Lieu of Cancelled/Time Barred Cheque Revalidation of time-barred cheques by the Finance Officer/ cheque drawing Officer is not permissible irrespective of the date of its drawal. Fresh cheques shall be issued in all such cases.
The time-barred cheque received back by the Finance Office shall be cancelled under the signature of the cheque drawing Officer and not destroyed. The cancelled cheque shall be deemed as a voucher/sub-voucher for issuing fresh cheque in lieu thereof and the fact of issuing fresh cheque shall be noted on it. The amount of the time-barred chaeque i.e. voucher shall be classified as (-) credit. Entries regarding cancellation of old cheque with voucher number of the fresh cheque etc. shall also be noted on the counterfoil/record slip of the old cheque book.
7.5 Procedure for Returning Unpassed Bills 7.5.1 If for any reason, it becomes necessary to return a bill without passing, it should be returned to the Bill Counter with a Half Margin Memorandum in UAC Form 5/6 stating the reasons for return of the bill. The drawer of the bill will be separately informed to collect the bill from the Bill Counter after surrendering the token. In the case of bills received through post, the same should be returned by registered post along with the Half Margin Memorandum.
7.5.2 The bill will be passed for the admissible amount with the amounts considered inadmissible being disallowed, in case minor omissions/inaccuracies are noticed. Simultaneously the drawer of the bill should be intimated regarding the amount disallowed and the reasons for the disallowance.
7.6 Closing of the Day’s/Year’s Transactions 7.6.1 The cheque drawing Officer, at the end of the day, shall tally the Register of Cheques Drawn with the Cheque Book and verify that the cheque numbers are serially entered in the register, and that cheques other than those accounted for in the register have not been removed from the Cheque Book. He shall also initial the spare leaf of the cheque book/counterfoil of the next unused cheque (the first to be used on the next day). Turning back to the last initial will enable him to ascertain the number of cheque forms that have been actually used during the day. At the end of the financial year, he shall intimate the Finance Officer regarding the total number of cheques issued on the last day, total amount thereof and the number and amount of the last cheque, under each category. 7.6.2 The entries in the Register of Cheques Delivered shall be added up at the end of each day, and the vouchers transmitted to the Accounts Section for detailed compilation, along with the second and third perforated carbon copies of the relevant day’s page of the register. 7.6.3 On receipt of payment scrolls from the Bank regarding the cheques encashed, the corresponding cheque numbers shall be ticked off in the Register of Cheques Delivered. A list of outstanding cheques shall also be prepared every month from the un-ticked entries in the Register of Cheques Delivered. The total amount of such outstanding cheques at the end of the month should be reconciled with the balance outstanding under the suspense Head “Finance Office - Cheques”.
Note: If any cheque appears to be outstanding for an unduly long period, necessary enquiries should be made regarding its non-encashment. If the same cannot be traced, the payment should be stopped and the charge representing it cancelled. The entries in the accounts books against it should be suitably revised.
7.6.4 The following particulars of the cheques outstanding/remaining un-encashed for more than three months should be noted in a separate register and pursued at once for tracing it.
(i) Cheque number and date;
(ii) Voucher number and date;
(iii) Drawee’s name;
(iv) To whom delivered/dispatched;
(v) Date of delivery/number and date of forwarding letter;
(vi) Particulars of payment (HBA, GPF, Contingency, salary etc.); and
(vi) Remarks, if any.
The pending cheques shall be referred to the concerned authority/person etc. for finding out whether the cheque has been got encashed, and if so, they shall be asked to furnish the date of encashment along with other requisite particulars.
In cases, where the party/person concerned intimates non-receipt/loss of cheque, the Finance Office shall issue duplicate cheque after following the procedure laid down in
Rule 7.3.
7.6.5 The Check Register of Outstanding Pre-check Cheques will be maintained personally by the Finance Officer in UAC Form 5/7. This Register should show the total daily issue and encashment of cheques and the balance of unpaid cheques at the end of each month. This should also be compared with the total of the cheques outstanding as per the list of outstanding cheques, and the balance at the end of each month should be independently tallied with the amount outstanding under the suspense Head “Finance Officer- Cheques” 7.7 Categories of Cheques and Their Use 7.7.1 Negotiable (Also referred to as Category ‘A’ cheques) These cheques are used for payments on account of personal claims to the University employees, contractors and suppliers, and public sector companies, corporations etc. Negotiable cheques will be drawn as payable to or order of the ‘Payee’. While writing cheques of this category, name of the payee should be followed by his bank account number and name of bank/branch. As a safeguard against fraudulent payment, all non- salary cheques in excess of Rs. 500 and salary cheques in excess of Rs. 1000 shall be crossed and marked ‘Account Payee’. If, in exceptional circumstances, a cheque drawn in favour of a private person or a University employee including pensioners is not crossed at the request of the payee, payment will be made only to the payee or to a person holding letter of authority from the payee, on proper identification. In case of payment demanded through the messenger, the signature of the messenger must be verified. Payment to the payee’s banker shall be opted only in exceptional cases, and that too on certifying that the amount has been placed to his credit. It should, however, be ensured that no payee makes it a practice to get uncrossed cheques in his favour as a matter of routine. 7.7.2 Cash payment of salaries and other dues to the University employees in excess of Rs. 500.00 shall not be permissible.
7.7.3 ‘Open’ cheques will invariably be made over to the individual payees through the concerned Drawing and Disbursing Officers/bill drawing office who would be responsible for obtaining their acknowledgement in the prescribed register having following columns :
(i) date, (ii) name of the officer, (iii) number of the cheque, (iv) amount (v) bill number and date against which amount received, and (vi) acknowledgement. 7.7.4 The Finance Office will make payments to the University employees either by account payee cheques or by crediting the due amount directly to their bank accounts through ECS or other modes of e-payment, wherever such facilities are available, through the accredited bank. In the case of e-payments, the Finance Officer will advise the bank directly under intimation to the employee as per the procedure laid down for e- payments by the CGA, at least as many days in advance as required under the mode of e-payment used. This will enable the bank to credit the amount to the respective accounts of the employees on due date. Clear cut instructions shall be issued to the bank that the amount is neither credited to the beneficiary’s account prior to the date on which payment is due, nor delayed.
7.7.5 Acquittance for payments made to University employees should be obtained in accordance with the provisions of University Rules and Regulations. However, where payment is made by direct credit to individual’s bank account, acquittance will not be required. In such cases, the acknowledgement of the bank about getting the advice will be sufficient. 7.8 Non-Transferable Cheques (Also referred to as Category ‘B’ cheques) These cheques are meant for payment to the payee who is a University officer for disbursement of payments of amounts Rs. 500 or less etc., and payments pertaining to office establishment and office contingencies. These cheques will be drawn in favour of the Payee by his official designation, and will contain the superscription ‘Not Transferable’ on the top. These cheques shall be drawn as payable to the payee only and not ‘to order’. These cheques are not negotiable and payments will be made only to the Payee or to his messenger holding a letter of authority on proper identification. In such cases of cheques drawn in favour of the University officers, the specimen signatures of these officers will be supplied to the bank in advance and care will be taken by the bank to see that the signature given as discharge on the cheque agrees with the specimen signature on record. 7.9 Bank Drafts 7.9.1 Payment by bank drafts to outstation payees by Finance Office is permissible in the following types of cases:
(a) All cases where payment has to be made by bank drafts either under the provisions of any law, or other legal or contractual obligations;
etc. not covered under (a) above and located at outstations may by made through crossed bank draft or direct credit to their bank account through the mode of e- payment as per the prescribed procedure.
7.10 Payment by Mail Transfer 7.10.1 In order to enable the Finance Officer to arrange remittance by Mail Transfer, the DDO will submit the bill with an endorsement that the payment may be arranged by Mail Transfer. He will also indicate the account number and name of the Bank Branch through which the payment is to be remitted. The Finance Officer will intimate the particulars of cheque number and date to the DDO to enable him to complete his records and watch the acknowledgement from the grantee institution.
7.10.2 This facility will be available only for Autonomous Bodies/Public Sector Undertakings and Grantee Institutions for payment of grant-in-aid, and will not be applicable for suppliers and other private parties.
7.10.3 In addition to mail transfers, electronic modes of payments available with the banks may also be utilized to the extent possible in accordance with the prescribed procedures. 7.11 Payment By Order In case, payment by order is required to be authorized by the paying authorities, the Finance Office shall draw the pay order to transfer the funds from the Collection Account of the University to other University Account for utilization and requirement of the University.
CHAPTER – 8
UNIVERSITY ACCOUNTS
8.1 General The following shall be the authorities of the University, namely:-
(i) the Court;
(ii) the Executive Council,
(iii) the Academic Council;
(iv) the Finance Committee;
(v) the Faculties;
(vi) the Academic Planning Board; and
(vii) such other authorities as may be declared by the Statutes to be the authorities of the University.
Court 8.1.1 The Court will consider and pass resolution on the annual report, annual budget, the annual accounts and the audit report of the accounts of the University. Executive Council 8.1.2 The Executive Council, shall manage and regulate the finances, accounts, investments and property of the University in accordance with the rules contained in the University Accounts Code framed by it in consultation with the Finance Committee. The Finance Committee 8.1.3 The Finance Committee, as provided in the Statutes of the University, shall exercise the powers and perform functions as under:
(i) It will examine the accounts and scrutinize the proposals for expenditure, and submit the annual budget to the Executive Council for approval.
(ii) It shall examine and recommend to the Executive Council the creation of teaching and other post.
(iii) It will fix the limits for the total recurring expenditure and the total non-recurring expenditure for the year based on the resources and income of the University. The University shall not incur any expenditure in excess of the limits so fixed. The University shall also not incur any expenditure for the purposes other than those provided in the budget without the prior approval of the Finance Committee.
(iv) The annual account and the official estimates of the University shall be placed before the Finance Committee for its consideration and comments thereon and thereafter submitted to the Executive Council for approval.
The Finance Officer 8.1.4 (a) The Finance Officer of the University shall:
(i) exercise general supervision of the University funds and advise the University authorities with regard to financial policies; and
(ii) perform such other financial functions as may be assigned to him by the Vice-Chancellor/Executive Council or as may be prescribed by the Statutes or the Ordinances.
Provided that he shall not incur any expenditure or make any investment exceeding Rs. 1.00 lakh without the prior approval of the competent authority.
(b) Subject to the control of the Vice-Chancellor and the Executive Council, the Finance Officer shall:
(i) hold and manage the properties and investments of the University, including trust and immovable properties for fulfilling any of the objects of the University;
(ii) ensure that the limits fixed by the Finance Committee for recurring and non-recurring expenditure for the financial year are not exceeded, and the money is expended or spent for the purposes for which it was granted or allotted;
(iii) be responsible for the preparation of annual accounts and budget of the University and for presentation to the Executive Council after it has been considered by the Finance Committee;
(iv) keep a constant watch on the cash and bank balances and investments;
(v) watch the progress of collection of revenue and advise on the collection methods;
(vi) ensure that the registers of properties of the University are maintained properly and that stock checking of equipments and other materials are conducted annually in all the offices of the University including Regional Centres, Study Centres and other institutions maintained by the University;
(vii) bring to the notice of the Vice-Chancellor any unauthorized expenditure or other financial irregularities and suggest appropriate action against persons at fault; and
(viii) call from any office of the University, including Regional Centres, Study Centres and other institutions maintained by the University, any information or reports that he may consider necessary for discharging his responsibilities.
8.2 Objectives of Financial Information and Accounting Systems 8.2.1 (a) The University shall develop a responsible information system to meet its complex financial information needs. The basic objectives of the University accounting, financial information and reporting systems are to:
(i) compile and generate fund accounts exhibiting true and fair view of the University affairs;
(ii) develop a broad-based classification of data to enable its effective application for operation of multi-purpose sub-systems needed for financial planning and management;
(iii) generate monthly Account of Receipts and Payments with progressive figures upto the end of the month as also consolidated accounts at the end of the year in the pre-determined format;
(iv) provide meaningful information for preparation of Budget Estimates, provide concise budget and control reports to all levels of University Management as also identify the heads of accounts showing wide fluctuations;
(v) provide tools and procedures for regular and co-ordinated review of schemes and projects, as also critical analysis, evaluation and appraisal of performance of all the University services;
(vi) generate financial reports (such as various types of receipts and expenditure for a programme or a course thereunder, components of course development and printing costs, Branch-wise/Region-wise analysis, and the like) which would assist the university management to review various university activities, schemes and programmes to attain the approved educational objectives within the expenditure plans; and
(vii) provide reports necessary for proper fund utilization and ensuring an efficient financial management and control.
(b) The University shall computerize all its financial operations such as receipts, payments, transfers, journals, bank statements/scrolls, pay roll system, stores accounting, etc.
(c) The University accounting is more akin to Government accounting system than that of a commercial organization, as it is not run on commercial principles. The Accounts of the University shall, therefore, be maintained on cash basis, which is more suitable for recording its transactions as well as presenting the true state of affairs of the University. The University may change over to accrual system of accounting as per directions of the Government.
8.3 Form of Accounts and General Classification Book of Accounts 8.3.1 All Departments/Offices of the University shall maintain books of accounts as specified in the University Accounts Code.
Form of Accounts 8.3.2 The accounts and registers shall be maintained in such form and according to such general principles and methods as may be prescribed from time to time by the Executive Council. Main Branch and Structure of Accounts 8.3.3 The accounts shall be exhibited in the same Heads as in the Budget for facilitating financial and accounting control.
Major, Minor and other Heads of Account 8.3.4 “The major, sub-major and minor heads of accounts together with sub-heads/detailed heads etc. shall be decided by the University keeping in view the codification required for computerization of accounts. Their nomenclature shall follow the pattern in the Budget from time to time.
Purpose of Heads of Accounts 8.3.5 The Major, Minor and other heads of account are so fixed as to facilitate financial control and accounting and to make available statistical information required by the Authorities of the University and Government. The names of the heads of accounts shall be chosen as to indicate clearly and briefly the purpose of the expenditure of receipt. Recording of Classification 8.3.6 The classification on bills should be recorded by the DDOs. Officers respondible for the collection of University dues shall record the classification on challans. 8.4 Classification of Expenditure as Revenue and Capital Capital Expenditure 8.4.1 Expenditure of a capital nature may broadly be defined as expenditure incurred with the object of either increasing concrete assets of a material and permanent character or of extinguishing or reducing recurring liabilities.
Principles for Allocation of Expenditure between Capital & Revenue 8.4.2 The following main principles will govern the allocations of expenditure between Capital and Revenue in the Budget Estimates and Accounts:
(a) Capital should bear all charges for the first construction and equipment of a project as well as charges for intermediate maintenance of the work while not yet open for service and bears also charges for further additions and alterations as may be sanctioned by competent authority.
(b) Subject to Sub-Rule (c) below, revenue shall bear all subsequent charges for maintenance and all working expenses. These charges embrace all expenditure on the working and upkeep of the project, and also renewals, replacements, additions, improvements or extensions as may be sanctioned.
(c) In the case of works of renewal and replacement, which partake both of a capital and revenue nature, the allocation of expenditure should be regulated by the broad principle that revenue should pay or provide a fund for the adequate replacement of all wastage or depreciation of property originally provided out of capital grants, while the cost of genuine improvements will be debited to capital. The sanctioning authority shall determine the expenditure on account of reparation or damage caused by extraordinary calamities such as fire, floods, earthquakes, etc., and charge it to Capital or Revenue in such a way as decided by the competent authority.
8.4.3 (a) As a general principle, lands, buildings, vehicles, machinery, tools and appliances, apparatus, non-consumable stores, all books, journals, office equipments, scientific apparatus, furniture and fixture, purchased whether from Maintenance Grant or from Development Grants, shall be treated as capital and shown as assets in the Balance Sheet.
(b) Recurring expenditure (such as the expenditure on staff required for processing the books and servicing of equipment within certain limits of percentage) met out of non-recurring grants should be classified as revenue expenditure.
(c) Expenditure like customs duty, clearing charges, transport and freight charges, loading and unloading charges, installation charges paid on imported equipment and books may be treated as capital expenditure and added to the cost of equipment and books.
(d) As regards the classification of works expenditure (maintenance and minor repairs, special repairs, additions and alterations, minor and major works), the principles prescribed by the Government of India for guidance of the Central Public Works Department shall be followed.
Capital Receipts 8.4.4 Capital receipts related to expenditure previously debited to Capital, accruing during the process of construction of project, should be utilized in reduction of capital expenditure. Thereafter, their treatment in the accounts will depend on circumstances, but they should never be credited to the ordinary revenue account.
8.5 Classification of Advances 8.5.1 (a) Advance payments are made for a variety of reasons e.g. for taking delivery of the material for which cash has been paid in advance or for payment of customs duty or for purchase of chemicals or for importing equipment and chemicals from abroad or for purchase of steel, cement and other building materials or for conducting tours or for holding of conferences, etc. Since the payment of advance is made out of the yearly grant, these advances shall be charged as final payments.
(b) The amount of advances outstanding as on the 31st March of a year should be reviewed. The amount of advances where supplies have not been received or services have not been rendered, should be withdrawn from the final head of account and shown as “Advances Recoverable” both in the Receipts and Payment Account as also in statement of Assets and Liabilities.
8.6 Inter-Departmental Adjustments 8.6.1 Inter-departmental adjustments shall be made in the following circumstances:
(a) When the stores are centrally purchased for reasons of economy and supplied to various Depts./Offices, but there is a separate provision for such stores in the budget of the Dept/Office.
(b) When the cost of a joint scheme/project initially debited against one Dept./Office is apportioned subsequently amongst other Depts./Offices concerned.
(c) When an auxiliary Unit like University Press renders service to other Depts./Offices and the accounts of its output have to be kept to show the working results of the auxiliary Unit.
8.6.2 The procedure for the settlement of inter-departmental adjustments will be regulated by per directions contained in this Accounts Code.
8.7 Subsidiary Account of Auxiliary Units When the operations of an auxiliary Unit are of a quasi-commercial character, the Unit shall maintain such subsidiary and Proforma accounts as may be directed by the Finance Officer.
8.8 Monthly and Annual Accounts Monthly Accounts 8.8.1 The monthly accounts of the University shall be prepared in the form and in the manner indicated in the University Account Code.
Annual Accounts 8.8.2 (a) The Annual Accounts comprising Receipts and Payments Account, Income and Expenditure Account, and Balance Sheet shall be prepared in the form approved by the Executive Council.
(b) The Income and Expenditure account and Balance Sheet referred to above, shall be prepared on cash basis. Accrued receipts and accrued liabilities shall be reflected and explained by suitable footnotes where the amounts involved are substantial. (Needs redrafting- accrual system system)
(c) The Annual Accounts shall be prepared scrupulously in due time, as per the prescribed schedule, for submission to Audit. The audited accounts will then be presented to the Authorities of the University, and submitted to the State Government as provided in the University Act.
(d) The Finance Office shall also prepare Appropriation Account and the Statement of Actual Receipts during the proceeding year as compared with the Budget Estimates for that year (Refer to Rule 4.11 of Chapter 4 for further details). 8.9 Arrangement for Maintenance of Accounts 8.9.1 The arrangements for the maintenance of initial accounts will be as under:
(a) The receipts and payments of the University will be handled centrally, either by the Finance Office or through the Bank (s). All the financial records and accounts prescribed in the University Account Code will be kept in the Finance Office except those indicated below:
(b) The accounts to be maintained in other Depts./Offices will comprise:
(i) Accounts of imprest and departmental advances (Refer to Chapter 12)
(ii) Store Accounts (Refer to Chapter 17)
(c) The Depts./Offices/Units like University Library, Guest House, Estates Office, University Press,, Engineering Unit, etc. will maintain such financial records and initial accounts as are special to their activities as indicated in the respective Chapters of this Account Code.
8.10 Internal Audit/Concurrent Check of Financial Transactions & Accounts 8.10.1 The Finance Office will make appropriate arrangements for such effective internal checks as are necessary to:
(a) ensure maintenance of correct accounts;
(b) prevent and detect errors and irregularities of fraud; and
(c) guard against wastage, loss or leakage of University money, stores or property. 8.10.2 All other financial transactions concerning receipts and payments of the University and accounts registers shall be subjected to pre-check and concurrent audit by rotation on a suitable scale as prescribed in this Account Code.
Objective and Scope of Internal Audit 8.10.3 (a) The objective of internal auditing is to assist the management in the effective discharge of its responsibilities by furnishing it with objective analysis, appraisals, recommendations and pertinent comments concerning the activities reviewed and making the whole scheme of internal audit purposeful and relevant to the present day requirements.
(b) It is important that the internal audit should not be confined to routine checking of records. The Internal Audit Officer should, on the other hand, be concerned with a view of all operations of the University, and should aid the management by conducting an audit known as ‘Management Auditing’, or ‘Operational Auditing’.
(c) In order to measure the effectiveness of various internal controls of the Depts./ Offices/ Centres/Units, the Internal Audit Officer shall:
(i) undertake checks in sufficient detail to ascertain whether the records and reports do actually reflect the actual operations and the results clearly;
(ii) determine whether the controls established to safeguard the University’s assets and to prevent fraud are effectively applied and that proper accounts and records do exist and are available for inspection;
(iii) check whether the policies and procedures as expressed in the Minutes of the Executive Council of the University, Office Orders, Manuals or other written instructions are complied with;
(iv) undertake follow-up action in accordance with the systems and procedures to check that they are operating properly and effectively, particularly to note any unauthorized variation, and if necessary, he would offer recommendations for improvements or necessary review; and
(v) serve as useful liaison officer between top management and lower levels of management.
(d) Internal Audit Officer shall conduct audit of all sanctions as per Rules and Orders issued from time to time.
(e) All the agreements relating to major works and percentage of agreements relating to minor works shall be scrutinized by the Internal Audit Officer.
(f) The Internal Audit Officer shall be competent to conduct surprise physical verifications of cash and stock.
(g) The Internal Audit Officer shall also function as Stores Verification Officer. He shall arrange non-custodian verification by a team of stock verifiers who shall conduct the verification throughout the year.
Details regarding quantum/extent of internal audit of various transactions, records and procedural guidelines for conducting internal audit are given in this Accounts Code.
Spirit of Audit 8.10.4 The fundamental object of audit is to ensure the value for the money spent by ensuring that the expenditure is not wastefully and irregularly incurred. Audit is not a mere application of rules and orders to minute details as it would reduce audit to a mere routine. The prescribed checks should, therefore, be observed in spirit and not in letter as opposed to spirit.
Audit Programme 8.10.5 The Internal Audit Officer shall, at the commencement of each year, draw up an audit programme for the Audit Branch for the whole year for conducting audit of accounts of all Depts./Offices/Centres/Units, and obtain approval of the Vice- Chancellor through the Finance Officer. The audit shall be conducted in accordance with the programme so drawn up.
Results of Audit 8.10.6 (a) The Internal Audit Officer shall prepare a Quarterly Report of important points noticed in internal audit on which action is pending for submission to the Vice-Chancellor through the Finance Officer.
(b) The Internal Audit Officer shall prepare an Annual Report of important points noticed in internal audit on which action is pending for submission to the Executive Council through the Finance Committee.
The Internal Audit Officer 8.10.7 The Internal Audit Officer shall work under the general direction and supervision of the Finance Officer. He shall assist the Finance Officer in items of work listed in this Accounts Code in the Chapter on Internal Audit.
CHAPTER - 9
SALARIES AND ALLOWANCES
9.1 Categories of Employees 9.1.1 There shall be following categories of the University employees :
(i) “Gazetted Employee” : Gazetted Employee means an employee working in the time scale of Superintendent & above and a teacher in Class-II and above. in the time scale less than that of the Superintendent except Daily Paid Labour.
(iii) “Daily-Paid-Labour” : Daily-Paid-Labour means workers paid on daily attendance rolls and part time workers even though they are paid on monthly rates. 9.2 Maintenance of Service Books of Employees 9.2.1 (a) There shall be a Service Book for each gazetted and non-gazetted University employee in UAC Form 6/1. The Service Book shall be started immediately after first appointment, and in any case before the first increment is drawn. The Service Book of an employee must be kept in the custody of the Head of Dept./Unit/Centre/Instt./Estt. Branch or a responsible official nominated by him. The Service Book shall be transferred with the transfer of the employee from one DDO to another, but should not be made over to the employee nor should it be given to him when proceeding on leave. It should not also be returned to the employee on retirement, resignation or discharge from service. A certified copy of the service book may be supplied to the University employee who asks for it on quitting University service by retirement, discharge or
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