Financial Management In Icar System

FINANCIAL MANAGEMENT IN ICAR SYSTEM Sri V.S.Subramanian Finance & Accounts Officer (Retd) NAARM, HYDERABAD

FINANCIAL MANAGEMENT IN ICAR SYSTEM ICAR follows Govt. of India Rules and Regulations mutatismutandis No expenditure can be incurred without sanction of the Competent Authority and availability of funds 1

AUTHORITIES OF ICAR The Indian Council of Agricultural Research is a Society registered under the Societies Registration Act, 1860 and financed by the Govt. of India According to Rule 13 of ICAR Rules and Bye-laws, the following are the authorities and officers of the Society. - President - Vice President - Governing Body - Director General - Secretary - Chairman, ASRB - Director, DARE - such other officers / bodies / committees or panels as may / shall be constituted or appointed by the GOI, the society or the Governing Body Standing Finance Committee is an important committee mentioned under the above. 2

ICAR Organizational Structure

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Established in 1922 as Imperial Council of Agricultural Research renamed after independence as Indian Council of Agricultural Research (ICAR) ICAR comprises: - Five multi-disciplinary National Institutes (four of them are deemed to be universities) 50 Central Research Institutes 30 National Research Centres 11 Project Directorates 8 Zonal Co-ordinating Units 89 All India Co-ordinated Research Project Units 578 Krishi Vignan Kendras ICAR employees nearly 40,000 personnel in scientific, technical, administrative, finance and supporting categories

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Funding Source Funds of the Society consists Income under APCESS Act Lumpsum under recurring grants made by GOI Income from investments Funds received from International Agencies/Govt. Departments for carrying out research 4

Finance - Structure DG, ICAR is responsible for funds of the Society as Principal Executive Officer of the Society Assisted at Headquarters by DDGs, Secretary and FA FA is responsible for budget of the ICAR, control of its finance, proper maintenance of accounts and internal audit FA is assisted by Director(Fin) and Deputy Directors(Fin) at the Headquarters Director(Fin) functions under the guidance and supervision of FA

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Role of Finance & Accounts Officers CFAO, SFAO, FAO and AFAO function as Head of finance wing at the institutes. Though they remain under direct administrative control of the Director of the institute but function under the technical control of Director(Finance) Responsible for scrutinizing the budget and all proposals involving financial implications Preparation of cheques for all payments and withdrawal from the bank account, maintenance of main cash book Maintenance of account Internal audit

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Role of Finance & Accounts Officers Advise to the Director of Institute in all financial matters Watch adjustments / clearance of advances Deal with the audit report of the statutory auditors Furnish the prescribed reports to the Director(Fin) FAOs are guided by audit principles and instructions contained in ICAR Audit Manual 7

Delegation of Powers President, ICAR exercises powers as may be vested by the Society Vice-President exercises the powers delegated by the president Governing Body exercises all executive and financial powers. It may delegate such powers to DG, Secretary, Directors, and any other officers as it may consider necessary and proper DG enjoys same powers as a Secretary to the GOI DDGs exercise powers as delegated to them with the approval of GB 9

Delegation of Powers Directors/Project Directors exercise all powers of HoD for the purpose of various rules and regulations of GOI. In addition, they exercise the powers specifically delegated by the GB. Powers also stand delegated to HoDs/JDs/Project Co-ordinators, Zonal Coordinators and Management Committees Powers are required to be exercised under Delegation of Financial Power Rules, GFR, and other executive instructions 10

Rules and Procedures ICAR is governed by its Rules and Byelaws Service and financial rules issued by GOI applied mutatis-mutandis to ICAR For scientific and technical categories ICAR frames its own rules under ARS rules and TS rules respectively For purchase receipt and issue of stores, GOI rules are followed. In addition, orders/instructions issued by Council from time to time with regard to store purchase procedure are also followed In ICAR, GOI accounting and audit procedure is followed

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Audit & Accounts Set-up at ICAR Headquarters Director(finance) supervises audit and accounts set up at ICAR headquarters A&A units at headquarters of Council: Pension – authorization of pension and retirement benefits Budget – sanction of budget proposals and remittance of funds to institutes Internal finance – financial concurrence Inspection Unit – deal with audit report on consolidated accounts of Council and inspection of research institutes

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Audit & Accounts Set-up at ICAR Headquarters Grants-in-aid I & II - release of grants in aid sanctioned by the Council Co-ordination (A&A) – interpretation of rules and policy decision Audit-I – Audit and payment of contingent bills Audit-II – Audit and payment of establishment bills and personal claims Audit-III – Maintenance of P.F. accounts at ICAR hqrs and consolidation of P.F. accounts of institutes at ICAR Accounts-I – Opening of current bank accounts for ICAR hqrs/institutes and preparation of cheques Accounts-II – preparation / compilation of monthly and annual accounts of ICAR hqrs and consolidation of accounts of council

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Budgetary Process Budget estimates are prepared as per Bye-laws of the Society Estimates for expenditure to be met out of the GOI grant for each year exhibiting expenditure on research under the following major heads Crop Science; Horticulture; Agrl. Extension; Agrl. Education; Economics Statistics Management, Agrl. Engg. ICAR Hqrs administration including ASRB; Soil and Water Conservation; Animal Husbandry and Fisheries Estimate for Plan and Non-Plan are prepared separately Budget estimates are placed before the SFC and with recommendation of SFC to the GB After approval of GB, allocation of various constituent units are communicated to them by FA 14

Budgetary Process All units submit budgetary requirement to ICAR hqrs under the following sub-heads: II. Establishment charges including LS&PC III. Wages to Employees granted temporary Status IV. OTA V. TA VI. Other Charges VII. Works VIII. Other items Directors are required to utilize funds as per instructions and budgetary allocation Directors have been declared as Head of the Deptt 15

Funds Management Council’s funds are kept in SBI and its subsidiaries and / scheduled / nationalized banks as authorized by DG or Secretary, ICAR At Council’s Hqrs four bank a/cs are operated for each of the following: 1. ICAR General Account – one each for Plan and NonPlan (Govt. grant) 2. APCESS Account 3. ICAR Provident Fund Account 4. ICAR draws funds in 3-4 instalments from PAO(Agrl.) thru DARE on the basis of budgetary allocation on the instructions issued by GOI/MOF from time to time Council in turn remit funds to the constituent units periodically 16

Funds Management Idle funds are kept in Short term deposits and interest earned there in taken as receipt of the Council. Interest so earned is exempted from payment of Income Tax At the end of the financial year, some balance is kept to meet expenditure on salary for march payable in April and also to meet urgent needs of Council and its units FAOs work as Treasury cum Accounts Officer and they maintain bank cash book and operate bank account The bank account is operated jointly by the FAO in the capacity of first signatory and Admn. Officer / Director as second signatory FAOs settle the monetary transactions by cheques / draft. All local payments are settled by cheques and outstation by drafts (bank provide at par facility on purchase of draft) FAOs render monthly account to the Council in the prescribed form The accounts of the Council are audited by CAG through PDA(SD) and after audit, the audited accounts are submitted to GB/Parliament as per procedure 17

Audit Audit system in ICAR can be divided into two parts: (a) Post audit by statutory auditors – the audit of the Council’s hqrs and its institutes are conducted by C&AG thru PDA(SD) such audit reports are presented to the GB and the Parliament (b) pre audit by F&AO of ICAR – F&AOs are required to pre audit all payments w.r.f. to sanction, budgetary provision, rules, regulations and instructions Financial proposals at the instt. require concurrence of F&AO Bills are passed by DDO and submitted FAO for payment Rules, regulations and audit checks vary from

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