Financial Management, Reporting, and Oversight at IIT Kanpur

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Financial Management, Reporting, and Oversight at
IIT Kanpur

• March 28, 2014

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IITK Finances

• Management
• Accounting / Reporting
• Oversight (External Internal)

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Financial Management Framework

• IIT Act, Statutes overarching guidance
• Govt. of India Rules Regulations regulate
  personal benefits and claims

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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 (SP) Manual what
  process(es) is / are required to be followed for
  spending?
• Accounts what is the financial performance
  (against budget / previous year)?

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Management of IITKs finances

• De-centralized - Organized by source of funds

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Management of IITKs Finances
Source of funds Officer In charge Overall Supervision
Plan and Non-Plan Sr. DR (FA) Finance Officer (FO)
Student Fees DR (SA) Dean, Students Affairs (DOSA)
Sponsored Research and Consultancies DR (RD) Dean, Research Development (DORD)
Donations, Endowments, and Investments AR (RA) Dean, Resources Alumni (DORA)
Others Various Various
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Accounting of IITKs Finances

• First level - decentralized
• Consolidation - centralized

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Accounting of IITKs Finances
Source of funds Officer / Faculty In charge Consolidation
Plan and Non-Plan Sr. DR (FA) AR (FA) / Sr. DR (FA) / Finance Officer (FO)
Student Fees DR (SA) / DOSA AR (FA) / Sr. DR (FA) / FO
Sponsored Research and Consultancies DR (RD) / DORD AR (FA) / Sr. DR (FA) / FO
Donations, Endowments, and Investments AR (RA) / DORA AR (FA) / Sr. DR (FA) / FO
Others Various AR (FA) / Sr. DR (FA) / FO
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Oversight of IITKs finances

• Committee-led
• A mix of External, Partly External and Internal .

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External oversight of IITKs finances

• Driven by / Committee chair non-IITK employee.

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External oversight of IITKs finances

• CAG both propriety and statutory audit.
• Board of Governors (BOG) Board of Governors
  (BOG) approve annual budget and accounts
  amendments to Delegations and SP Manual
  financial policies review financial performance
  on quarterly basis.
• Finance Committee (FC) advise BOG on all the
  above proposals from management.

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Partly External oversight of IITKs finances

• Committee chaired by Director but has some
  external members.

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Partly External oversight of IITKs 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.

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Internal oversight of IITKs finances

• Driven by / Committee comprising IITK employees
  only.

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Internal oversight of IITKs finances

• Finance Control Committee (FCC)
• considers annual budget proposals
• approves re-allocation of budgets
• monitors performance against budget and
• drives automation of financial operations.

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Internal oversight of IITKs 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 gt Rs. 1,000 (with some
  exceptions), pay and pension fixation.
• Finance advice in procurement.

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Oversight hierarchy at a glance

• CAG
• I
• BOG
• I
• Finance Committee
• I
• Director-------------------BWC----------------MCEF
  
• I I
• FCC IC

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• Thank you