The purpose of this policy and procedures is to ensure that college maintains and develops systems of financial control which conform to the requirements of good financial management. It is essential that these systems operate properly to meet the requirements. The policy also covers other finance related policies such as depreciation, reserves and investments.
College has defined the responsibilities of each person involved in the administration of finances to avoid the duplication or omission of functions and to provide a framework of accountability.
The governing body has overall responsibility for administration. The main responsibilities of the governing body are
Agree the long-term financial objectives for the college
Ensure that the grants received are utilised for the purposes intended
Approval of the annual budget
Approval of changes to the establishment
Ensure a Scheme of Delegation is in place
Ensure assets are managed
Ensure accurate accounting records are maintained
Ensure the budget monitoring statements are a true and accurate record on income and expenditure
Approval of the annual accounts.
Initial review and authorisation of the annual budget and any material changes
Regular monitoring of actual expenditure and income against budget
Appointment of External auditor.
Purchase committee
Purchase committee of college looks after all the purchases regarding academic and administrative purposes.
The head of the departments or office superintendent submits the requisition to the principal.
The principal forward it to purchase committee.
The purchase committee follows the standard procedure by inviting three tenders from different companies. An appropriate company is selected and work order is issued to the same.
The main objective of Audit is to provide independent assurance that:
The financial responsibilities are being properly discharged
Resources are being managed in an efficient, economical and effective manner
Sound systems of internal financial control are being maintained
Review that bank reconciliations have been carried out each month
Review of monthly payroll to ensure that any changes have been appropriately authorised and agreed
Check sample orders to delivery notes and invoices to ensure that the documentation is complete and has been appropriately checked and authorised.
Check of sample payments back to invoices, orders and delivery notes to confirm they are bona fide purchases.
Review a sample of expense claims to ensure the appropriate documentation to support the claim and that the claim is appropriately authorised.
Carry out spot checks of petty cash balances and supporting vouchers
Review all major contracts and ensure formal tender procedures exist and are being followed.
Mechanisms to monitor effective and efficient use of financial resources
Before the commencement of every financial year, the principal submits a proposal on budget allocation, by considering the recommendations made by the heads of all the departments, to the management.
College budget includes recurring expenses such as salary, electricity, internet charges, maintenance cost, stationery, other consumable charges etc., and non recurring expenses like lab equipment purchases, furniture and other development expenses.
The expenses are monitored by the accounts department as per the budget allocated by the management.
Source of income is mainly from the following.
Salary Grants
Non salary Grants
Fee collections from students.
Funds received for Scholarships
MRP grants from UGC
NSS Grants
Fee collection from Self-finance Courses.
The audit report is sent to the management for review. Any queries raised by the auditor are timely addressed by the management.
