NEW GRANT-IN-AID CODE FOR SECONDARY TEACHERS TRAINING COLLEGES IN THE KARNATAKA STATE

CHAPTER I

INTRODUCTORY

Rule ? 1.

With the object of encouraging private enterprise in Higher Education, provision is made annually in the State Budget for payment of Grant-in-Aid to affiliated colleges under private management. The payments of such grants are subject to the rules in this Code.

Rule - 2.

Grant-in-Aid cannot be claimed as a matter of right.

Rule - 3.

The grants are sanctioned by the Government except where the power is vested in the Director himself.

Rule - 4.

The rules in this Code shall be deemed to be supplementary to the rules laid down in the Karnataka Financial Code, and any relaxation thereof requires the sanction of Government in the Finance Department.

Rule - 5.

The Government reserve to themselves the right of changing these rules and of interpreting their meaning in case of dispute. Government also reserve to themselves the right to refuse or to withdraw any grant at their discretion, notwithstanding the rules contained in this code.

CHAPTER II

DEFINITIONS

Rule - 6.

Unless the context requires otherwise, the following words and phrases used in this code have the meanings hereby assigned to them:

(a)     "College" means a private B.Ed., Training College affiliated to the University of Mysore or University of Bangalore or the Karnatak University under the rules of such University and imparting sound secular instruction.

(b)     "Institution" means a college with a hostel or without a hostel as the context may imply;

(c)     "Local Body" means a duly constituted local authority and recognised by Government as such;

(d)     "Management" means a person, a body of persons, a local body, or a registered Association, a Managing Committee or Committees, maintaining one or more colleges and hostels and registered and recognised as such by the Government;

(e)     "Director" means the Director of Public Instruction in Karnataka;

(f)      "Department" means the Department of Public Instruction in Karnataka;

(g)     "Prescribed" means prescribed under the rules in this Code;

(h)     "Year" means academical year or financial year as the context may imply;

(i)      "University" means the University of Bangalore, Mysore or the Karnatak University to which the College is affiliated.

CHAPTER III

GENERAL CONDITIONS OF GRANT-IN-AID

Rule - 7.

Every Institution on behalf of which Grant-in-Aid is sought shall be under the control of a "Management" which shall undertake to be answerable for the maintenance of the Institution and for the due fulfilment of all the conditions of aid, as they stand from time to time.

Rule - 8.

The Management shall vest, in the Principal of the Institution to transact with the Department the current business of the Institution on its behalf.

Rule - 9.

Every "Management" shall be responsible.--

(i) ???to strictly fulfil in the case- of a College, the conditions of affiliation as laid down in the Statutes and Ordinances of the University;

(ii) ??to report to the Director without delay all changes in its Constitution and in the personnel of the Principals of the Colleges;

(iii)? ?to subject the colleges to inspection by the officers of the Department designated for the purpose;

(iv) ??to afford all conveniences to the Officers of the State Government and of the Indian Audit Department deputed to audit the initial and other accounts of the institutions and of the management;

(v)? ?to strictly abide by the instructions or verdict of the inspecting or auditing agencies referred to at (iii) and (iv);

(vi) ??to keep such accounts and render to the Department such returns and reports as may be prescribed by the Director from time to time;

(vii) ?to give effect to particular line of action indicated by.--

(1)     Government on policy decision;

(2)     the University in regard to academic matters within the purview of the University.

Rule - 10.

No grant will be payable to.--

(i) ????a college which has not been affiliated;

(ii) ??a college in respect of a new Department or course which has not been affiliated;

(iii) ??an Institution which refuses admission to any pupil merely on the ground of the caste or community to which he belongs or because the pupils have secured a low percentage of marks;

(iv) ??an Institution which takes part in political agitation directed against the authority of the Government, or inculcates opinions tending to excite feelings of political disloyalty or disaffection among the pupils;

(v) ??an Institution which is found guilty of falsification of its accounts or other records of misrepresentation of facts including presentation of false claims of commission of any other fraud or irregularity.

Note: This is without prejudice to the discretion of the Department to deal with the management according to law.

(vi) ??an Institution which spends any portion of its income for purposes unconnected with the Institution.

Note: In cases failing under clauses (iii) to (iv) supra, the Department reserves the right to withdraw, withhold, or reduce even grants already sanctioned.

Rule - 11.

The payment of grants is subject in all cases to the availability of funds in the State budget under the detailed head concerned.

Rule - 12.

Applications for Grant-in-Aid shall, in all cases contain a declaration signed by the Principal of the Institution on behalf of the Management, to the effect that the rules in this Code Governing the payments of Grants-in-Aid are being and will be observed by the management, fully and faithfully.

CHAPTER IV

GRANTS TO COLLEGES

Rule - 13.

The following are the different types of grants payable to colleges subject to the general conditions laid down in Chapter III and the special procedure prescribed in this Chapter.--

(i) ???Teaching Grant (maintenance grant);

(ii) ??Grant towards loss of fee income;

(iii)? ?Building Grants;

(iv) ??Equipment Grants;

Rule - 14.

No grant of any kind shall be payable to a college which has a surplus or balance on hand of Rs. 1 lakh or more.

Note: For the purpose of this rule, the "surplus or Balance on hand" including that of the previous Years means the opening balance as exhibited in the Financial statement of account. This surplus Balance should be used only with the specific approval of Government.

Rule - 15.

Applications for the grant shall be made in the prescribed forms and in the manner indicated in respect of each. Supplementary instructions to be complied with in making such applications are indicated in the forms themselves. After sanction, the grants should be drawn in Grant-in-Aid Bill Form (vide Article 162, M.F.C.), supported by such additional information or documents as may have been prescribed and duly countersigned by the Competent Authority.

Teaching Grants (Maintenance Grant)

Rule - 16.

(a)     The amount of grant to be paid in any one year to the college shall not exceed 70 per cent of the excess of the approved maintenance expenditure over the direct receipts (as detailed in Rule 17 infra).

(b)     The payment of grant is however subject to the following conditions.--

(i) ???that the college had an average daily attendance per term of not less than eighty pupils;

(ii) ???that the college worked during each term for not less than the number of working days fixed by the University;

(iii) ?that the scales of pay of the staff including the number of posts in each category of the college were not more than those prescribed for similar staff and work respectively, in Government Colleges of the same category and that Dearness allowance was paid at the rate and in accordance with the rules prescribed by the Government for their servants, and that if the management has paid lower rate of D.A. than that sanctioned to similar category of Government servants that the management rate of D.A. will be the basis for sanctioning D.A. grants;

(iv) [1] that the qualifications of the members of the staff are the same as those prescribed by the respective Universities to which the colleges are affiliated and their service conditions are not more favourable than those applicable to similar staff of the same category in the Government College of Education; and

The age of superannuation of both teaching and non-teaching staff in the Private Aided Colleges shall be 55 years as in the Government Colleges. No grant will be paid towards pay to such of the employees who are retained in service beyond 55 years of age with effect from 1st January, 1976:

Provided that every member in a Private Aided College.--

(a)     who has continued in service after attaining the age of 55 years (60 years with the permission of the University concerned or the Director of Public Instruction as the case may be) shall retire on the date on which he or she attains the age of 60 years, or on 1st January, 1976 whichever is earlier;

(b)     who attains the age of 55 years after the issue of amendment to Rule 16(b)(iv) of the New Grant-in-Aid Code for Secondary Teachers Colleges but before 1st January, 1976, shall retire on 1st January, 1976;

(c)     who attains the age of 55 years after 1st January, 1976 shall retire on the date on which he or she attains the age of 55 years. However, if a substitute cannot be appointed before the end of the academic year and the management of the Institution desires to continue the services of any employee due to retire on or after 1st January, 1976 as above during the current academic year, they may do so treating the period of service of such employee for any period upto 31st March, 1976 only as on re-employment and the expenditure incurred on such reemployment will be reckoned for the purpose of Grant-in-Aid.]

(v) ??the maximum amount of the grant admissible shall not be more than half of the "Approved maintenance Expenditure".

Note: If the margin of surplus representing the difference in the amount of fees actually charged and the amount of fees reckoned for calculation of grant according to standard rate fixed exceeds 10 per cent of the total amount of admissible expenditure (after meeting the management share of deficit) then the excess should be treated as receipt of the institution for purposes of sanctioning the grant for the next year.

Rule - 17.

The items of expenditure that are to be treated as 'Approved Maintenance Expenditure' and the items of receipts which are to be considered as 'Direct Receipts' for this purpose are detailed in Appendix I.

Rule - 18.

The teaching grant or maintenance grant for a year will be calculated on the "Approved Maintenance Expenditure" of that year as certified by the approved auditors and accepted by the Department. As the figures for this purpose will become available only after the close of the year after the accounts of the College for the year are audited, 'on account' grants equal to 50 per cent of the final grant sanctioned for the previous year or 50 per cent of the probable grant due for that year based on the Budget Estimates of the year, whichever is less, may be paid in October. Such 'on account' grants paid should be adjusted out of the final grants sanctioned and paid during the following year.

Rule - 19.

The application for the grant shall be made in Form C.G.C. 1 on or before the 1st August of the following year duly supported by the audited financial statement of accounts for the year in the manner laid down in Appendix II. In the case of new College(s) requiring 'on account' grants for the first time, the application in Form C.G.C. 1 will be supported by their budget estimates for the year for which the grants are required.

Note: Applications unsupported by the audited statements and/Budget Estimates or those sent after the prescribed date are liable to be rejected.

Grant towards loss of fee income

Rule - 20.

A grant equal to the loss in its fee income at Management rates or Government rates whichever is less may be paid to a College on account of award of fee concessions, scholarships carrying freeships or half freeships including refund of fees. For this purpose 'Fee income' shall constitute such items of fees as are taken into account under the Freeship Rules.

Rule - 21.

The grant shall be claimed in an application in Form C.G.C. 2 compensation for loss of fee income at Government rates will be paid to a college before the 31st March in every academic year in which such loss is incurred in the award of fee concessions, scholarships carrying freeships, half freeships including refund of fees, such compensation should be claimed in two instalments after the freeship and scholarship lists are published.

Building grants

Rule - 22.

A grant not exceeding half of the total expenditure may be sanctioned to a College.--

(a)     to acquire lands or buildings for the College(s) or playgrounds or for other purposes connected with the College;

(b)     to construct a new building or improve or extend the existing College building or Canteen buildings, Cycle stand, staff quarters (if the policy of providing staff quarters in such colleges has been approved by Government), for layout of playgrounds, sports pavilion, etc.,

(c)     In cases of new buildings, extensions or alterations, the Director or Government must have been convinced of their necessity and have approved their character. Works commenced before obtaining the specific permission of the Director or Government as the case may be will not be eligible for grant. Such grants are subject to a ceiling limit of Rs. 50,000 (Rupees fifty thousand only) per year to any single college.

Note: If building grants cannot be given for want of funds, loans may be given for the same purpose subject to availability of funds according to provision made in the Budget. Rules governing such loans are given in Appendix III.

Rule - 23.

Where private benefaction has been received for the purchase or construction of such buildings the management is permitted to reckon it as part of its share of cost, should the benefaction be in excess of the management's share of cost, such excess shall go to reduce the Government share of cost.

Rule - 24.

An application for the grant shall be made in Form C.G.C. 3. In the application, the management should furnish information as to how much money it has at its disposal, and whether the Government Grant applied for will be sufficient for the purchase of the land, etc., or for the construction of the building and completing it within the time prescribed by the plans, estimates and specifications duly approved by the Competent Public Works Department authorities and indicate the manner of calling for and acceptance of tenders in the case of construction of buildings.

Note: If the lowest tender cannot be accepted in any case, the departure should be made in consultation with the Executive Engineer or other higher authorities of P.W.D. having jurisdiction over the area.

Rule - 25.

(a)     In the case of grants for construction, improvement, or extension of buildings, every reasonable opportunity shall be afforded by the Management to the Officers of Public Works Department during the progress of the work, to inspect and examine the materials used, to take measurements and to verify whether the building is being constructed on the lines of the plan approved previously so as to enable them to issue the prescribed certificates.

(b)     If required, the grants may be paid in instalments as the work progresses, the amount so paid being at no time more than the proportionate grant payable on the value of work actually done, as certified by a Divisional Officer of the Public Works Department supported by details as in a Public Works Running Account Bill.

(c)     The grant or the last instalment of it when the grant is paid in instalments, shall be payable only on completion of the work, on the basis of an account of expenditure incurred, furnished in the P.W. Running Account Bill Form by an Officer of the Public Works Department not below the rank of an Assistant Engineer. The Bill should contain a certificate to the effect that the building has been completed generally in accordance with the approved Plans and specifications.

Note: The last instalment would be so fixed that the amount together with the instalments paid previously does not exceed the grant payable for the building on the basis of actual expenditure.

Rule - 26.

The Order sanctioning the grant shall specify the date by which the building should be completed. In case the building is not completed within the period specified above, the Department may call upon the management to explain the delay in construction, and in the event of sufficient cause not being shown, may require the Management to refund within a reasonable time prescribed, such portion of the grant as may have been drawn and if the Management fails to do so, summarily enter upon and take possession of the incomplete structure with the site on which it stands and all the buildings and materials lying thereon and take such steps and do such acts as the Department may deem necessary for the recovery of the grant drawn.

Rule - 27.

Where works are executed on piece work system or by engaging daily labourers, the management is responsible to see that the work is got supervised by qualified engineers. For the purpose of drawing the grant of instalments the expenditure should be certified by Officers of the Public Works Department (vide Rule 25). The rates adopted in the bill should not exceed the corresponding rates in force in the Public Works Department in any case.

Rule - 28.

Grants may be made under these rules for the purchase of the buildings or for improvements and extension of existing buildings also whether or not they were originally constructed or purchased with the assistance of Government Grants.

Rule - 29.

When the grant applied for is for purchasing a building, the Director should satisfy himself.--

(a)     Whether the right, title and interest in the building of the seller is established and whether the property will be made over to the college authorities immediately on payment; and

(b)     Whether the building is suitable for the purpose in regard to sanitation, lavatory fittings, water supply, ventilation, lighting, adequacy of accommodation, size of rooms, furniture, playgrounds, etc.

Rule - 30.

Before a grant is paid, the management should execute a bond in Form C.G.C. 4 binding itself to abide by the conditions governing the payment of the grant. Where the grant exceeds Rs. 10,000 the management shall execute, in lieu of the above bond, a deed of mortgage of the property in favour of Government in Form C.G.C. 5.

Rule - 31.

It shall be competent for the Department to forbid the use of such buildings or any portion thereof, for such purposes as are considered by the Department to be inconsistent with the object of the grant.

Rule - 32.

The management of a College shall be bound to refund the whole or a portion of the building grant drawn by it, if a building for the acquisition, construction, extension or improvement of which a grant has been drawn, ceases to be used for the purposes for which the grant was drawn within a period of forty years from the date of the final payment of the grant, the amount refundable bearing the same ratio to the grant drawn, as the period still required to complete 40 years of use of the building bears to 40 years.

Equipment Grant

Rule - 33.

Grants may be sanctioned for the purchase of articles of equipment required for the bona fide use of a College upto 50 per cent of their value. The articles of equipment recognised for the  purpose are detailed in Appendix IV. Such grants are subject to annual ceiling limits as under.--

These limits are subject to revision from time to time at the discretion of the Government and depend upon the availability of funds.

Rule - 34.

(a)     Grants not exceeding Rs. 1,000 in each case, may also be sanctioned for expenditure on equipment of a capital nature of essential type such as installation of telephone, installation of water supply pumping set, construction of overhead tank, fencing for garden, etc.;

(b)     No portion of a grant for the purchase of books, furniture or appliances shall ordinarily be paid until the Department is satisfied that the purchase in aid of which the grant is made has actually been completed and that the books, furniture or appliances purchased have been approved by the Department;

(c)     Grants shall not be given to meet the cost of seats or desks of a pattern which has not been approved by the Department;

(d)     Grants shall not be given for the purchase of articles regarding which the Department has not been previously consulted and for which aid has not been promised.

The grant sanctioned, if any, shall lapse if the amount of grant is not drawn from the Treasury before the end of the financial year for which it was sanctioned.

Rule - 35.

For calculation of the Equipment Grant, the expenditure is arrived at after deducting from the actual expenditure on such equipment the following amounts.--

(i) ???Recoveries towards cost of books lost; and

(ii) ??Recoveries towards breakages of Laboratory articles.

Rule - 36.

Where a management receives private benefaction(s) it shall be entitled to take full credit for the same in arriving at its share of the cost of the equipment. When however such benefaction is in excess of the management's share of cost, the excess shall go to reduce the Government share of cost.

Note: In the application for grant, management should furnish a certificate specifying the total amount of benefactions received in respect of the equipment(s).

Rule - 37.

Where a management has built up a Development Fund out of its savings earmarked for purchase of equipment amounting to more than its share of the cost of equipment to be purchased, such excess shall go to reduce the Government share of cost.

Rule - 38.

The application for grant shall be made in Form C.G.C. 6, so as to reach the Director not later than 1st August of each year. It should be supported by a Certificate of essentiality by the Head of the Department of the particular subject of that College countersigned by the Principal.

Rule - 39.

For purchasing of articles of Furniture and laboratory requirements, the Colleges should obtain competitive quotations. In respect of heavy purchases of each group of articles costing more than Rs. 500, tender system shall be adopted. Where articles are got manufactured, the working rates should not exceed the current market rates. In respect of articles for which there are S.P.C. rate contracts, rates higher than those rates will not be recognised for the purpose of the grant.

Rule - 40.

If a college which has received aid for purchase of equipment under the above rules is closed or diverted for purposes other than those for which such grants are admissible, within 10 years from the date on which the last grant was drawn, the Director shall be competent to take over to Government the articles for the supply of which Government grant was paid, or direct that the articles be sold in auction. In the latter case, the proceeds shall be credited to Government subject to payment to the Management of such portion of the proceeds as the Government may deem proper.

Rule - 41.

"Each person shall subscribe to the Staff Provident Fund scheme at 6 1/4 per cent of his pay and the management shall contribute 3 1/8 per cent, the Education Department contributing another 3 1/8 per cent".