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CHAPTER-VII AUDIT OF THE ACCOUNTS OF UNIVERSITIES
1. General
a) I) The following conventional Universities which are already established and functioning were deemed to have been established and incorporated on and from the commencement of the Act No.4 of 1991, as per Section-4 of the Act. The said Act came into force w.e.f 22-1-1991, being the date on which published in the A.P Gazette after receipt of assent of the Governor on 21-1-1991. The powers, functions and the objects of the Universities are enumerated under Section-5 of the Act.
i) The Andhra University
ii) The Kakatiya University
iii) Sri Krishna Devaraya University
iv) The Nagarjuna University
v) The Osmania University
vi) Sri Venkateshwara University
a) II) The remaining 8 universities have been established with a specific objective and are having their separate Acts with same provisions.
1. AP Agricultural University, Hyderabad (1963) -- To promote research, field and extension programmes in Agriculture and Agricultural production.
2. JNTU Hyderabad (1972) – Advancement of learning and knowledge in engineering, technologies physical and social sciences, architecture and fine arts.
3. Dr. B. R. Ambedkar Open University, Hyderabad (1982) – To provide educational opportunities t those students who could not take advantage of institutions of higher learning to realize equality of educational opportunities for higher education for large segment of population etc, .
4. NTR University of Health Sciences, Vijayawada (1986) – To improve the standards of medical education including research and to conduct common entrance test to the courses in all the institutions affiliated thereto.
5. Sri Padmavathi Mahila Vishwavidyalayam. Tirupati (1983) – Promotion and dissemination of knowledge and skills, particularly those relating to employment, awareness of social issues and human values and the development of character and personality for leadership in all aspects of life.
6. Potti Sriramulu Telugu University, Hyderabad (1985) – to function as a high level research center in Telugu language, literature and culture to translate books in other languages into Telugu.
To search for and compile epigraphs relating to Telugu language, culture and history and publish them with its findings based on research etc.,
7. Dravidian University, Kuppam (1997) – To improve research in Dravidian languages i.e. Telugu, Tamil, Malayalam, and Kannada.
8. Nizams Institute of Medical Sciences, Hyderabad (1989) -- (deemed university) – To create a center of excellence (Deemed University) for providing medical care, educational and research facilities of high order in the field of medical sciences in the existing super specialties and such other super specialties may develop in future, including continuing medical education and hospital administration.
b) The Vice-Chancellor is the academic head and the Principal Executive officer of the University, vested with power of general control over its affairs, under Sub-section-3 of Section-II of the Act.
c) The Executive Council is the Executive Authority of the University, vested with the powers and duties enlisted in Section-19 subject to the statutes prescribed and ordinances made as the case may be. The Executive council is vested under Section-51 of the Act to make statues in respect of matters indicated therein and also vested under Section-53 of the Act to make ordinances, subject to the provisions of the Act and Statutes in respect of the levy of fee in the University and the constituent colleges, the fees to be charged for admission to the examinations, degrees and diplomas of the University and other matters indicated in Section-53 of the Act. Duties and functions of the E.C include carrying out the academic activities in the University to charge and collect tution and other fees, prescribed by the ordinances for admission to courses of study in the college and institutions of the University, to prescribe fee to be charged for the affiliation and recognition of colleges, preparation of annual reports and annual accounts and financial estimate of the University for submission to the Academic Senate.
d) The Rector is appointed by the Executive Council and he exercises such powers and performs such duties prescribed by the Statutes (Section-14).
e) The Registrar is appointed by the Executive Council. He acts as the Secretary of the Executive Council and Academic Senate (Section-15).
f) The Finance Officer is appointed by the University and is an employee of the Govt. and the salary, allowances, pension and the other remuneration is paid in the first instance out of the Consolidated Fund of the State and later recovered from the University. He should maintain the accounts of the University and also advise the University on all the matters relating to income and the expenditure (Section-16).
g) Academic Senate is empowered to provide instruction and training in such branches of learning as it thinks fit. It exercises general supervision over the Academic Policies of the University and provides leadership for raising the standard and quality of education and research and also vested with the powers in Section-55 of the Act to make Regulations, subject to the provisions of the Act, in respect of the matters indicated therein.
h) The Statutes passed by the Executive Council are valid and come into force only after assent by the Chancellor as required in Sub-section-2 of Section-52.
i) The ordinances made by E.C take effect from such date as directed therein, as laid down in Sub-section-2 of Section-54 of the Act.
j) I) The Financial Committee is constituted under Section-47 of the Act and it is a sub-committee of Executive Council. Finance officer is the Secretary of the Finance Committee. The Finance Committee has the powers indicated in sub-section-2 of Section-47 of the Act, relating to examination of accounts, budget, review of financial position making recommendations to Executive Council on all matters relating to Finances of the University.
II) Certain restrictions in respect of financial matters: The University shall not, without the prior approval of the Govt., divert earmarked funds for other purposes or upgrade any post or revise the scales of pay of its staff or implement any scheme which involves any matching contribution from the Govt. or create a post or posts resulting in a recurring liability on the Govt. either immediately or in future:
Provided that for the existing teaching purposes the Board of Management may authorize the creation and filling up of posts of teachers for a period not exceeding one year but any such post or posts shall not be continued or created afresh for any period beyond the said period of one year without the prior approval of the Govt.
2. Scope of Audit
2.1 According to Rule 4(1) of the A.P State Audit Rules issued with G.O.Ms.No. 130 Fin & Plg (FW-Admin-II) dept dt.8-9-2000, the procedure for conduct of audit of the University accounts is post audit, which means conducting detailed audit locally after transactions are completed. Thus the accounts of a University relating to a financial year are audited after closure of the financial year.
2.2 Before proceeding with the audit the auditor should thoroughly acquaint himself with
a) the provisions of the A.P University Act 1991, and particularly with Section-5 which details the powers, Functions and objects of the Universities, Section-13, which enumerates the powers and duties of the Vice-Chancellor, and Section-19, which details the powers and duties of Executive Council.
b) the Statutes made by the Executive Council and assented by the Chancellor and also ordinances made by the Executive Council.
c) the regulations made by the Executive Council /Senate.
d) the Financial and Account Rules together with the subsidiary rules approved by the Executive Council.
e) the powers of the various authorities, especially in respect of financial matters
3. The various sources of income of a University are as follows:-
(a) Fees of various categories such as Admission Fees, Tution Fees, Examination Fees,
(b) Fines, Affiliation Fees, Convocation Fees, Migration Fees and the like
(c) Special Fees like Fees for Games, Library, and Students Union etc.
(d) Grants from State Government i.e. Block Grant towards salaries of Teaching and Non Teaching Staff, grants for other purposes, Grants-in aid from UGC, ICAR, AICTE,
(e) ISRO, Central Government for various purposes
(f) Endowments, Donations and Contributions
(g) Sale proceeds of Publications and Miscellaneous sales
(h) Guest House Receipts
(i) Rents on Buildings, Canteen, Telephone Booths, Stadiums, Auditoriums etc.
(j) Interest on Investments
(k) Surplus on Consultancy Projects entrusted to the University
4. The expenditure from the University Fund will be on the following categories:-
(a) Salaries of Teaching, Administrative Staff and Non Teaching staff of University including Contingent staff, contract employees and the like, Leave salaries including surrender leave salaries
(b) Pensionary benefits
(c) Administrative expenditure such as Stationery, postage, printing, rents for buildings etc.
(d) Expenditure on Operation and maintaince such as electricity charges, vehicles maintenance, Buildings maintenance etc.
(e) Expenditure connected with conduct of Examinations
(f) T.A. claims, LTC claims
(g) Expenditure on works, laying of Roads, water works etc.
(h) Purchase of furniture, fittings, Tools & Plant, equipment, computers, and
(i) Other miscellaneous expenditure like Gardening & Plantation
5. The following Registers will be maintained in the Offices of the University and its campus and constituent Colleges.
a) In the University Office:
1. Cash Books for different Funds
2. Posting Register of Receipts & Charges
3. Register of cheques received
4. Register of cheques issued
5. Ledgers
6. Register of contingent Charges
7. Stock Registers for Tools & Plant, equipment, Publications, Stationery, Postage, Securities and various other items
8. Acquittance Register
9. Establishment Audit Register
10. Register of Advances recoverable
11. Register of Deposits
12. Register of Security Deposits
13. Register of Investments
14. Register of Loans
15. Miscellaneous Sales Register
16. Miscellaneous Demand Register
17. Register of Budgetary Allocations
18. Register of Works
19. Register of Estimates and Allottments
20. Contractors Ledger
21. Measurement Books
22. Register of Buildings
23. Register of Roads
24. Register of Revenue Yielding Properties
25. Register of Grants, Donations & Contributions
26. Grants Appropriation Register
27. Register of Endowments
28. Registers relating to Provident Fund
29. Registers relating to Pensions
30. Posting Register of Receipts & Charges
b) In the Colleges:
1. Term Fee Register
2. Daily Fee collection Register of Admissions and Withdrawals
3. Register of Transfer Certificates
4. Research Scholar’s Fee Register
5. Cash Books
6. Register of cheques received
7. Register of cheques issued
8. Acquittance Register
9. Register of Scholarships
10. Scholarship Acquittance Register
11. Register of contingent charges
12. Register of Grants
13. Grants Appropriation Register
14. Register of Donations & Contributions
15. Register of Endowments
16. Register of Deposits
17. Stock Registers for furniture, fixtures, stationery, postage, operator, AVE equipment, Library Books, laboratory equipment etc.,
18. Register of Budget Allotments and expenditure
19. DCB Statement of Fees
20. Arrear Demand Register
21. Register of Works
22. Register of estimates and allotments
23. Contractors Ledger
24. Measurement Books
25. Register of Advances
26. Register of Deposits
27. Register of Security Deposits
28. Register of Investments
29. Establishment Audit Register
30. Tender Register
31. Register of Miscellaneous Sales
32. Miscellaneous Demand Register
33. Register of Revenue yielding properties
6. The Budget for University fund will be prepared by the University and got approved by the Executive Council, which will be applicable to the University office as well as University colleges. In regard to Non-University fund, each college will prepare its own budget, get it approved by the Governing Body / University and send a copy of it to the University for Incorporation in the main Budget.
7. The University Fund consists of all categories of fees collected from students, Grants-in-Aid sanctioned to University by State and Central Governments, UGC and other agencies, Donations, Contributions and Endowments. In addition to these items, there are other receipts such as miscellaneous sales, lease amounts, transport receipts etc.
It should be seen in audit that the campus and constituent colleges shall remit all the above mentioned receipts to the University fund without appropriating any part thereof for the college purpose. The colleges will however retain the special fees collected from students and the receipts, which form part of Non-University fund (receipts from self finance courses and such other items) and spend them for authorized purposes of the Colleges.
8. During the course of Audit, the Auditors shall conduct audit in respect of the following institutions separately.
1. University Colleges
2. PG Centers
3. Other University Institutions
4. University Engineer’s Office
5. Hostels University Press
6. Examination Cell
7. Hostels
8. University Guest House
9. Distant Education Cell
10. UGC Cell
11. University Library
12. University Administrative Office
In each of these Institutions, the items of receipts as well as the items of expenditure shall be verified with reference to the receipts, Collection Registers, remittance challans, Bank scrolls, Budget, sanctions, vouchers, stock Registers on the same lines as in the case of other Institutions like Municipalities or Zilla Parishads. The audit checks in respect of the following items are common as in the case of other Auditable Institutions.
1. Establishment vouchers
2. Pension vouchers
3. Contingent expenditure like stationery, postage, printing, Advertising, Telephones etc.
4. T.A., LTC, TTA, Surrender of Earned Leave
5. Work vouchers
6. Tenders
7. Purchase of stock and stores
8. P.F. and other employee benefits
The general Audit checks to be exercised in respect of the different Institutions are detailed below.
1. University Colleges & P.G. Centers
It should be seen in audit that –
Ø The fees of different categories such as Admission fees, tution fees, and other items are collected within the time limits prescribed and at such rates as approved by the University
Ø These collections are entered in the Daily Fee collection and Term Fee Registers
Ø The collections are promptly remitted to the University Funds in cases where the fees and other dues are not received by Bank remittance challans