21. For the purpose of enabling the Institutes to discharge their functions efficiently
under this Act, the Central Government may, after due appropriation made by Parliament by
law in this behalf, pay to every Institute such sums of money in such manner as it may think
fit.
22. (1) Every Institute shall maintain a Fund to which shall be credited—
(a) all moneys provided by the Central Government;
(b) all fees and other charges received by the Institute;
(c) all moneys received by the Institute by way of grants, gifts, donations,
benefactions, bequests or transfers;
(d) all moneys received by the Institute from utilisation of intellectual property
arising from research conducted or rendering advisory or consultancy services
by it; and
(e) all moneys received by the Institute in any other manner or from any other
source.
(2) All moneys credited to the Fund of every Institute shall be deposited in such banks
or invested in such manner as may be laid down by the Board by regulations.
(3) Each Institute shall create a corpus fund for long term sustainability of the Institute,
to which shall be credited such per cent. of the net income of the Institute and donations
made specifically towards such corpus fund as the Central Government may in accordance
with the provisions of the Income tax Act, 1961, notify:
Provided that the Board may also create endowment funds for specific purposes to
which donations may be specifically made.
(4) The fund of any Institute shall be applied in such manner and for such purposes as
may be specified by the regulations.
23. (1) Every Institute shall maintain proper accounts including income and expenditure
statements, internal audit report and statement audited by internal auditor specifying
investments and other relevant records and prepare annual statement of accounts including
the balance sheet in such form and as per such accounting standard as may be specified by
notification by the Central Government in consultation with the Comptroller and AuditorGeneral of India.
(2) Where the statement of income and expenditure and the balance sheet of the
Institute do not comply with the accounting standards, the Institute shall disclose in its
statement of income and expenditure and balance sheet, the following, namely:—
(a) the deviation from the accounting standards;
(b) the reasons for such deviation; and
(c) the financial effect, if any, arising out of such deviation.
Grants by
Central
Government.
Fund of
Institute.
Accounts and
audit.
43 of 1961.
Committees
and other
authorities.
Role of
members of
Society.
Custodian of
records, etc.
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 11
(3) The accounts of every Institute shall be audited by the Comptroller and AuditorGeneral of India and any expenditure incurred by audit team in connection with such audit
shall be payable by the Institute to the Comptroller and Auditor-General of India.
(4) The Comptroller and Auditor-General of India and any person appointed by him in
connection with the audit of the accounts of the Institute shall have the same rights, privileges
and authority in connection with such audit as the Comptroller and Auditor-General of India
has in connection with the audit of the Government accounts and, in particular, shall have
the right to demand the production of books, accounts, connected vouchers and other
documents and papers and to inspect the offices of the Institute.
(5) The accounts of every Institute as certified by the Comptroller and Auditor-General
of India or any other person appointed by him in this behalf together with the audit report
thereon shall be forwarded annually to the Central Government and that Government shall
cause the same to be laid before each House of Parliament in accordance with such procedure
as may be laid down by the Central Government.
24. Every Institute shall keep proper updated books of account with respect to—
(a) all sums of money received and expended by it and the matters in respect of
which receipt and expenditure takes place;
(b) the assets and liabilities of the Institute;
(c ) the properties, movable and immovable of the Institute.
Explanation.—For the purposes of this section, if books of account give a true and
fair view of the state of affairs of the Institute and its transactions, it shall be deemed as
proper books of account with respect to the matters specified therein.
25. (1) The Board of every Institute shall, prior to the end of every financial year, and
without prejudice to the provisions contained in the Comptroller and Auditor-General's
(Duties, Powers and Conditions of Service) Act, 1971 or any other law for the time being in
force containing provisions for audit of accounts by the Institutes, appoint such auditors
including the internal auditor, on such remuneration as it thinks appropriate, to scrutinise the
balance sheet and the statement of income and expenditure of such Institute:
Provided that the Board shall change the auditors after every four years.
(2) The Board of every Institute shall constitute an Audit Committee to provide an
expert advice on effectiveness of internal control system, risk management and audit report
to the Board.
(3) The auditor appointed under sub-section (1) or any person employed by him shall
not have any direct or indirect interest, whether pecuniary or otherwise, in any matter
concerning or related to the administration or functions of the Institute.
26. (1) There shall be attached to every statement of accounts laid before the Board of
each Institute under section 27, a report, by its Director, with respect to—
(a) the state of affairs of such Institute;
(b) the amounts, if any, which it proposes to carry to any surplus reserves in its
balance sheet;
(c) the extent to which understatement or overstatement of any surplus of income
over expenditure or any shortfall of expenditure over income has been indicated in the
auditor's report and the reasons for such understatement or overstatement;
(d) the productivity of research projects undertaken by the Institute measured in
accordance with such norms as may be specified by the Board;
(e) appointments of the officers and faculty members of the Institute;
(f) performance indicators and internal standards set by the Institute, including
the nature of innovations in teaching, research and application of knowledge.
Books of
account to be
maintained
by Institute.
56 of 1971.
Annual report
of Director.
Appointment
of auditors.
12 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
(2) The report of the Director shall also include a statement showing the names of the five
officers including faculty members and other employees of the Institute who received the highest
remuneration (including allowances and other payments made to such employees) during the
financial year and the contributions made by such employee during the financial year.
(3) The statement referred to in sub-section (2) shall indicate whether any such employee
is a relative of any member of the Board or Academic Council of the Institute and if so, the
name of such member; and such other particulars as may be determined by the Board.
(4) The Director shall also be bound to give the complete information and
explanations in the report referred to in sub-section (1) on every reservation, qualification
or adverse remark contained in the auditors' report.
27. (1) The statement of accounts, including the balance sheet and the statement of income
and expenditure, the auditor's report, the report of the Director and other documents required to be
annexed or attached with such statement, shall be brought before the Board of concerned Institute
in its meeting not later than three months, from the conclusion of the financial year.
(2) A copy of every statement of accounts referred to in sub-section (1) shall be sent
to every member of the Board not less than twenty-one days before the date of the meeting.
(3) The statement of accounts referred to in sub-section (1) shall on its approval by
the Board, be published on the website of the Institute.
28. (1) The annual report of every Institute shall be prepared under the directions of
the Board, which shall include, among other matters, steps taken by the Institute towards the
fulfilment of its objects and an outcome based assessment of the research being undertaken
in such Institute.
Explanation.—For the purposes of this sub-section, the expression "outcome based
assessment of research" shall mean an elaboration and analysis of the research conducted
and the qualitative and quantitative outcomes of such research along with its impact factor
and social outcomes.
(2) The annual report prepared under sub-section (1) shall be submitted to the Board
on or before such date as may be specified by the Board who shall consider the report in its
meeting.
(3) The annual report on its approval by the Board shall be published on the website
of the Institute.
(4) The annual report of each Institute shall be submitted to the Central Government
who shall, as soon as may be, cause the same to be laid before both Houses of Parliament.