Criterion 6 – Governance, Leadership and Management

6.4 Financial Management and Resource Mobilization

6.4.1 Institutional strategies for mobilisation of funds other than salary and fees and the optimal utilisation of resources.

Response:

Finance Committee:

University has a well-structured institutional mechanism to monitor the effective and efficient use of Financial resources. In the terms of section 32(1) of Madhya Pradesh Makhanlal Chaturvedi Rashtriya Patrakarita Avam Sanchar Vishwavidyalaya Madhya Pradesh ACT No. 15 of 1990, the General Council of the university has constituted the Finance Committee comprised of the following members:

• The Vice-Chancellor of the University;
• The Rector;
• Secretary, Public Relations Department, Government of Madhya Pradesh or his nominee not below the rank of Deputy Secretary;
• Two members of the General Council to be nominated by the Chairman;
• Secretary to Government, Madhya Pradesh, Finance Department or his nominee not below the rank of Deputy Secretary.
• The members of the Finance committee shall be ex-officio. 

Functions and Duties of the Finance Committee shall be as follows, namely:-

1. To examine, review and scrutinise the financial requirements, annual budget of the university and to make recommendations on financial matters to the general council
2. To consider the periodical statements of accounts and to review the finances of the university from time to time and to consider re-appropriation statement and audit reports & to make recommendations to the general council.
3. The finance Committee shall meet at least once every year. Three members of the Finance Committee shall form the quorum.

The effective and efficient assures taken by University for financial resources:-

• Head of Department proposes the budget of their department with consultation of other members of the department.
• The committee of senior faculty/HODs, Finance Officer, and other administrative staff is constituted under the chairmanship of Vice Chancellor of the University to prepare the final draft of budget estimates.
• All the financial activities are planned by translating the requirements into an annual budget incorporating therein recurring and Non-recurring expenditures, and the income expected to be generated from internal resources. The Finance Committee considers these budgetary requirements and, after careful examination, makes recommendations for its approval by the General Council.
• For day-to-day financial transactions, the University has prepared its Accounts Manual/SOP which provides the rules for making various expenditures following the principle of transparency, efficiency and fair procedure.

University Internal Resources for Fund Mobilization:

• University has Unique Model of Association (UMA) with Societies/Institutes, Which is the USP of University. It is the prime resource for generation of fund for University.
• Government of Madhya Pradesh issued Gazette Notification that Makahanlal Chaturvedi National University of Journalism & Communication Bhopal will train the Public Relation Officers (PRO) of different departments of Government of Madhya Pradesh. In continuation the University has been providing the training to Public Relation Officers of various government departments, which help the University to mobilize extra resources.
• University has developed several radio programmes for different government and Non-Government organization, which help the University to mobilize extra resources.
• University has been granted fund from Indian Council of Social Science Research (ICSSR) for research promotion activities
• AICTE has granted fund to the University for Training and Development of faculty members under ATAL FDPs.
• MP Government also provides funds for supporting the education of special drive, economically weaker section and meritorious students under Scholarship Scheme.
• UNICEF is also providing grants for carrying out research project in the area of health and awareness programes on health and hygiene.

6.4.2 Funds/Grants received from government bodies/non government and philanthropists during the last five years for development and maintenance of infrastructure (not covered under Criteria III and V)

Response: 59.97

6.4.2.1 Total Grants received from government and non-government bodies and philanthropists for development and maintenance of infrastructure (not covered under Criteria III and V) yearwise during the last five years (INR in Lakhs)

 6.4.3 Institution regularly conducts internal and external financial audits regularly Enumerate the various internal and external financial audits carried out during the last five years with the mechanism for settling audit objections within a maximum of 500 words

Response:

Finance Department of University conducts both internal and external audits. The details of audit process is as follows:

Internal Audit:

University regularly conducts both Internal and External Audits. The retired officers from Government treasury/accounts/finance departments are appointed temporary as internal Statutory Auditors for carrying out the work of Internal audit in the University. These internal auditors assist and work Under the guidance and supervision of the Finance Officer of the University. The internal Auditors are assisted by team of office assistant of good knowledge and experience of finance rules. As per Finance and Store rules, the each financial transaction file is audited internally by audit team in time limit before payment. The Internal Auditors have sound knowledge and experience of General Finance Rules, State Purchase Rules and Store Rule. The prime responsibility of internal auditors is to check and verify all files related to financial transactions as per General Finance Rules, State Purchase Rules and Store Rule and ensure proper implementation of above finance and store rules, if any error, mistake,  deficiency/violation of above rules is found, they immediately notify and bring in the cognigence of University Authorities. They also suggest the remedial action for compliance. The payment is disbursed after compliance of error, mistake, deficiency/violation of above rules, and approval of University Authority. The Internal audit is time bound process.

External Audit:

The external audit is carried by external certified Chartered Accountant (CA). The services of an external Chartered Accountant Firm are hired under the external financial auditing process. Chartered Accountant Firm is appointed as Statutory External Auditors in the University, whose tenure will be for three years, The appointment of Statutory External Auditor is done through calling open tenders as per university rules laid by the General Council. MOU is executed between Statutory External Auditor Agency and University. As per terms and conditions of MOU, re-appointment of Statutory External Auditor process is initiated similarly after end of their three year term for next three years. The duties of Statutory Auditors are to examine the final accounts summaries prepared by the university and prepare Auditor’s Report. Every Financial year, Statutory Auditors have to cross check statement of accounts, income expenditure accounts, Payments-Receipts account statements and vouchers of all types of financial transactions incurred in the University as applicable. The Statutory External Auditors informs the Authorities of University about any errors identified in auditing process and provide the certified report to authority of the University and Finance Officer. The CA certified report is placed before the MP Assembly, General Council & Financial Committees of University.