Financial Management,
Reporting, and Oversight
at IIT Kanpur
March 28, 2014
1
IITK Finances

Management

Accounting / Reporting

Oversight (External & Internal)
Financial Management Framework

IIT Act, Statutes – overarching guidance

Govt. of India Rules & Regulations –
regulate personal benefits and claims
3
Financial Management Framework
(contd.)

Strategic / Annual Plan / Budget – institutional
priorities, income projections, and what is available for spending?

Financial Delegations – who may spend and how much?

Stores and Purchase (S&P) Manual – what process(es)
is / are required to be followed for spending?

Accounts – what is the financial performance (against budget
/ previous year)?
Management of IITK’s finances
De-centralized
source of funds
- Organized by
Management of IITK’s Finances
Source of funds
Officer In
charge
Overall
Supervision
Plan and Non-Plan
Sr. DR (F&A)
Finance Officer
(FO)
Student Fees
DR (SA)
Dean, Students’
Affairs (DOSA)
Sponsored Research and
Consultancies
DR (R&D)
Dean, Research &
Development
(DORD)
Donations, Endowments, AR (R&A)
and Investments
Dean, Resources &
Alumni (DORA)
Others
Various
Various
Accounting of IITK’s Finances
First
level - decentralized
Consolidation - centralized
Accounting of IITK’s Finances
Source of funds
Officer / Faculty In Consolidation
charge
Plan and Non-Plan
Sr. DR (F&A)
AR (F&A) / Sr. DR
(F&A) / Finance
Officer (FO)
Student Fees
DR (SA) / DOSA
AR (F&A) / Sr. DR
(F&A) / FO
Sponsored Research and
Consultancies
DR (R&D) / DORD AR (F&A) / Sr. DR
(F&A) / FO
Donations, Endowments, AR (R&A) / DORA
and Investments
AR (F&A) / Sr. DR
(F&A) / FO
Others
AR (F&A) / Sr. DR
(F&A) / FO
Various
Oversight of IITK’s finances
 Committee-led
A
mix of External, Partly External
and Internal .
External oversight of IITK’s finances
 Driven
by / Committee chair non-IITK
employee.
External oversight of IITK’s finances

CAG – both propriety and statutory audit.

Board of Governors (BOG) – Board of Governors
(BOG) – approve: annual budget and accounts;
amendments to Delegations and S&P Manual; financial
policies; review financial performance on quarterly
basis.

Finance Committee (FC) – advise BOG on all the
above proposals from management.
Partly External oversight of IITK’s
finances
 Committee
chaired by Director but has
some external members.
Partly External oversight of IITK’s
finances

Building & Works Committee (BWC) –
technical appraisal of all construction and related
projects. Inputs flow to BOG through FC.

Management Committee of Endowment
Funds (MCEF) – guidelines providing and
monitoring committee; advises Finance
Committee on endowment and investment
related matters.
Internal oversight of IITK’s finances
 Driven
by / Committee comprising IITK
employees only.
Internal oversight of IITK’s finances

Finance Control Committee (FCC) –
considers annual budget proposals;
 approves re-allocation of budgets;
 monitors performance against budget; and
 drives automation of financial operations.

Internal oversight of IITK’s finances
(contd.)

Investments Committee – devises investment
strategy, approves all short-/medium- and long-term
investment proposals.

Internal Audit (IA) – IA unit headed by AR (IA)
reports directly to Dy. Director.


Pre-audit of all spending > Rs. 1,000 (with some exceptions),
pay and pension fixation.
Finance advice in procurement.
Oversight hierarchy at a glance
CAG
I
BOG
I
Finance Committee
I
Director-------------------BWC----------------MCEF
I
I
FCC
IC
 Thank
you
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