«Government of India Ministry of Finance Department of Expenditure General Financial Rules, 2005* (* Amendments issued upto March 2010 have been added as ...»
Rule 210. Accounts of Grantee Institutions : Institutions or Organisations receiving grants should, irrespective of the amount involved, be required to maintain subsidiary accounts of the Government grant and furnish to the Accounts Officer a set of audited statement of accounts.
These audited statements of accounts should be required to be furnished after utilization of the grants-in-aid or whenever called for.
Rule 211. Audit of Accounts of Grants-in-aid :
(1) The accounts of all grantee Institutions or Organisations shall be open to inspection by the sanctioning authority and audit, both by the Comptroller and Auditor General of India under the provision of CAG(DPC) Act 1971 and internal audit by the Principal Accounts Office of the Ministry or Department, whenever the Institution or Organisation is called upon to do so and a provision to this effect should invariably be incorporated in all orders sanctioning grants-in-aid.
(2) (a) The accounts of the grantee Institution or Organisation shall be audited by the Comptroller and Auditor General of India under Section 14 of the Comptroller and Auditor General of India (Duties, Powers and Conditions of Service) Act, 1971, if the grants or loans to the institution in a financial year are not less than Rupees twenty-five lakhs and also not less than seventy-five percent. of the total expenditure of the Institution. The accounts may also be audited by the Comptroller and Auditor General of India if the grants or loans in a financial year are not less than Rupees one crore. Where the accounts are so audited by the Comptroller and Auditor General of India in a financial year, he shall continue to audit the accounts for a further period of two years notwithstanding that the conditions outlined above are not fulfilled.
(b) Where any grant and /or loan is given for any specific purpose to any Institution or Organisation or authority, not being a foreign State or international Body/Organization, the Comptroller and Auditor General is competent under Section 15 (1) of the CAG’s (DPC) Act, 1971, to scrutinize the procedures by which the sanctioning authority satisfies itself as to the fulfillment of the conditions subject to which such grants and/or loans were given and shall, for this purpose, have right of access to the books and accounts of that Institute or Organisation or authority.
(3) In all other cases, the Institution or Organisation shall get its accounts audited from Chartered Accountants of its own choice.
(4) Where the Comptroller and Auditor General of India is the sole auditor for a local Body or Institution, auditing charges will be payable by the auditee Institution in full unless specifically waived by Government.
Rule 212. Utilization Certificates :
(1) In respect of non-recurring grants to an Institution or Organisation, a certificate of actual utilization of the grants received for the purpose for which it was sanctioned in Form GFR 19-A, should be insisted upon in the order sanctioning the grants-in-aid. The Utilization Certificate in respect of grants referred to in Rule 209 (6) should also disclose whether the specified, quantified and qualitative targets that should have been reached against the amount utilised, were in fact reached, and if not, the reasons therefor. They should contain an output based performance assessment instead of input based performance assessment. The Utilization Certificate should be submitted within twelve months of the closure of the financial year by the Institution or Organisation concerned. Receipt of such certificate shall be scrutinised by the Ministry or Department concerned. Where such certificate is not received from the grantee within the prescribed time, the Ministry or Department will be at liberty to blacklist such Institution or Organisation from any future grant, subsidy or other type of financial support from the Government. This fact should also be put on the website referred to in the Note under Rule 209 (1) above.
In respect of recurring grants, Ministry or Department concerned should release any amount sanctioned for the subsequent financial year only after Utilization Certificate in respect of grants of preceding financial year is submitted. Release of grants-in-aid in excess of fifty per cent of the total amount sanctioned for the subsequent financial year shall be done only after the annual audited statement relating to grants-in-aid released in the preceeding year are submitted to the satisfaction of the Ministry/Department concerned.
Reports submitted by the Internal Audit parties of the Ministry or Department and inspection reports received from Indian Audit and Accounts Department and the performance reports if any received for the third and fourth quarter in the year should also be looked into while sanctioning further grants.
NOTE. 1. Utilization certificates need not be furnished in cases where the grants-in-aid are being made as reimbursement of expenditure already incurred on the basis of duly audited accounts. In such cases the sanction letters should specify clearly that the utilization certificates will not be necessary.
NOTE 2. In respect of Central Autonomous Organisations, the Utilization Certificate shall disclose separately the actual expenditure incurred and the Loans and Advances given to suppliers of stores and assets, to construction agencies, to staff (for house building and purchase of conveyance, etc.
), which do not constitute expenditure at that stage. These shall be treated as unutilized grants but allowed to be carried forward. While regulating the grants for the subsequent year, the amounts carried forward shall be taken into account.
(2) (i) In the case of private and voluntary organizations receiving recurring grants-in-aid from Rupees ten lakhs to Rupees twenty-five lakhs, all the Ministries or Departments of Government of India should include in their annual report a statement showing the quantum of funds provided to each of those organizations and the purpose for which they were utilized, for the information of Parliament. The annual reports and accounts of private and voluntary organizations receiving recurring grants-in-aid to the tune of Rupees twenty-five lakhs and above should be laid on the Table of the House within nine months of the close of the succeeding financial year of the grantee organisations.
(ii) In the case of organizations receiving one-time assistance or non recurring grants as grants-in-aid from Rupees ten lakhs to Rupees fifty lakhs, all Ministries or Departments of Government of India should include in their annual reports, statements showing the quantum of funds provided to each of these organizations and the purpose for which the funds were utilized, for the information of Parliament.
The annual reports and audited accounts of private and voluntary organizations or societies registered under the Registration of Societies Act, 1860, receiving one-time assistance/non recurring grants of Rupees fifty lakhs and above should also be laid on the Table of the House, within nine months of the close of the succeeding financial year of the grantee Organisations.
(3) Submission of Achievement-cum-Performance Reports :
(i) The grantee Institutions or Organisations should be required to submit performance cum achievement reports soon after the end of the financial year. A time limit may in this regard be prescribed by the sanctioning authority concerned. This requirement should be included in the grants-in-aid sanction order.
(ii) In regard to non-recurring grants such as those meant for celebration of anniversaries, conduct of special tours and maintenance grants for education, performance-cum-achievement reports need not be obtained.
(iii) In the case of recurring grants, submission of achievement cum performance reports should usually be insisted upon in all cases. However, in the case of grants-in-aid not exceeding Rupes five lakhs, the sanctioning authority may dispense with the submission of performance cum achievement reports and should, in that event, refer to the utilization certificates and other information available with it with a view to deciding whether or not the grants-in-aid should continue to be given.
(iv) The annual reports and audited statements of accounts of Autonomous Organisations are required to be laid on the table of the Parliament. In such cases, the Ministries or Departments of Central Government need not incorporate performance-cum-achievement reports in the annual reports. In all other cases, if the grants-in-aid exceed Rupees twenty-five lakhs, the Ministry or Departments of the Central Government should include in their annual report a review of the utilization of the grants-in-aid individually, specifying in detail the achievements vis-à-vis the amount spent, the purpose and destination of the grants. In cases where the grants-in-aid are for Rupees twenty-five lakh or less, the Ministry or Departments of the Central Government should include in their annual report their own assessment of the achievements or performance of the Institution or Organizations.
(v) Where the accounts of the grantee Institutions or organisations are audited by the Indian Audit and Accounts Department, copies of the performance-cum-achievement reports, furnished by the grantee institution to the Administrative Ministry or sanctioning authority should be made available to audit. In other cases copies of such reports, received by the Departments of the Central Government or the sanctioning authority should be made available to audit when local audit of such grants-in-aid in the Administrative Ministry or Department or sanctioning authority is conducted or when it is called for by the Accountant General.
(4) (a) Register of Grants : A Register of Grants shall be maintained by the sanctioning authority in the format given in Form GFR - 39.
(b) Columns (i) to (v) of the register in format at Form GFR - 39 should be filled in simultaneously with the issue of the order sanctioning each grant. These columns should be attested by any Gazetted Officer nominated for the purpose by the sanctioning authority. The serial number should be recorded on the
body of the sanction at the time the item is entered in the Register as under :
“Noted at serial No ………………… in the Register of Grants”.
(c) Such a record will guard against the possibility of double payment. Columns (vi) and (vii) should be filled in and attested by the Gazetted Officer concerned as soon as the bill is ready. The bill should then be submitted to the Gazetted Officer nominated to act as Drawing and Disbursing Officer with the register for signing the bill and to the sanctioning authority for giving dated initials in column (viii) of Register. It should also be the duty of the sanctioning authority to verify that the conditions, if any, attached to the grant have been duly accepted by the grantee without any reservation and that no other bill for the same purpose has already been paid before. No bill should be signed unless it has been noted in the Register of Grants against the relevant sanction. This will also facilitate watching of payments in installments, if any, in the case of lump sum sanctions.
Information at column (xiii) of the Form GFR-39 above should be used also for regulating the subsequent grants.
(5) State Government to submit utilization certificate when expenditure incurred through local bodies:
When Central grants are given to State Governments for expenditure to be incurred by them through local bodies or private institutions, the utilization certificates should be furnished by the State Government concerned.
Rule 213. Discretionary Grants : When an allotment for discretionary grants is placed at the disposal of a particular authority, the expenditure from such grants shall be regulated by general or special orders of the competent authority specifying the object for which the grants can be made and any other condition(s) that shall apply to them.
Such discretionary grants must be non-recurring and not involve any future commitment.
Rule 214. Other Grants : Grants, subventions, etc.
, including grants to States other than those dealt with in the foregoing rules, shall be made under special orders of Government.
(1) Regulation of recurring grants-in-aid for Government employees’ welfare :–
1. Grants-in-aid for provision of amenities or of recreational or welfare facilities to the staff of the offices of the Government are regulated under orders of the Ministry of Home Affairs issued from time to time.
The admissibility of the grants-in-aid for the welfare of the employees of the Government should be regulated in the following manner :i) The grant in aid will be admissible on the basis of the total strength borne on the regular strength of an organization, i.e., Ministry or Department, etc., and its Attached and Subordinate Offices and such statutory bodies whose budget forms part of Consolidated Fund of India, irrespective of the fact whether any individual is a member of the staff club, etc., or not. However, grant-in-aid in respect of Gazetted Officers will be admissible only to that Ministry or Department or Office where membership of recreation club is open to such officers.
Staff paid from contingencies, work-charged staff etc., will not be taken into calculation for this purpose.
Staff eligible for similar concession under some other rule or statutory provision, e.g., industrial workers will also not be covered by these orders.
(ii) Amounts of grants-in-aid. –(a) The rate of the grant-in-aid will be Rupees fifty per head per annum.
In addition to this, an additional grant-in-aid up to Rupees twenty-five per head per annum to match the subscriptions collected during the previous financial year by the existing staff clubs will be admissible. In the case of staff clubs which are started during the financial year in which grantin-aid is to be given, an additional matching grants-in-aid up to Rupees twenty-five per head per annum, to match the subscription collected by such clubs up to the date on which the proposal for the grant is mooted, may be sanctioned. The total strength of the eligible staff will be that existing on the thirty-first March of the previous financial year or that on the date on which proposal for grant is mooted in the case of new staff clubs.
(iii) An illustrative list of items on which expenditure can be incurred out of grants-in-aid sanctioned by Government for provision of amenities is given below: – (i) Articles of sports – Outdoor and indoor games equipment.
(ii) Cost of uniforms, etc., supplied to teams of players.
(iii) Magazines and periodicals.
(iv) Entry fee for tournaments (v) Hiring of playgrounds (vi) Hiring and repair for furniture, etc., (vii) Purchase of furniture.
(viii) Conveyance expenses incurred locally.
(xi) Film shows.
(xii) Hiring of accommodation for Club/Association, etc.
(xiii) Cultural, Sports and Physical development programme(s).
(xiv) Inter-Ministry meets.
(xv) Inter-Departmental meets.
2. A maximum one time grant of Rupees fifty thousand may be sanctioned for setting up of a Recreation Club.
3. Grants-in-aid to the Ministry or Departments of the Central Government and their Attached and Subordinate Offices will be allocated by the concerned Ministry or Department on receipt of formal requests in the prescribed manner. For the purposes of these grants-in-aid, the Departments of the Central Government and their attached and Subordinate Offices will be treated as a single unit. It will be the responsibility of that Ministry or Department to distribute the amount further to its Attached and Subordinate Offices and to their different clubs. The accounts of these clubs for the preceding year duly audited by an Internal Auditor should be obtained immediately after the close of the financial year in any case by the thirtieth April by the Ministry or Department before allocating funds for the next financial year.
4. Grants-in-aid for the provision of amenities or recreational or welfare facilities to the staff of the Indian Audit and Accounts Department are regulated by separate orders.