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Central Universities Act, 2009  >  Section 31 - Annual accounts

Section 31 of the Central Universities Act, 2009 - Annual Accounts

Section 31 of the Central Universities Act, 2009 governs the preparation, audit, institutional review, submission to the Central Government, laying before Parliament and publication of the audited annual accounts of a University covered by the Act.

In brief: The Executive Council directs preparation of the annual accounts and balance-sheet; the Comptroller and Auditor-General of India, or a person authorised by the CAG, audits them; the accounts and audit report pass through the Court and the Visitor; they are then submitted to the Central Government for laying before both Houses of Parliament and, after being so laid, are published in the Gazette of India.

Statutory text of Section 31 - Annual accounts

  1. (1) The annual accounts and balance-sheet of the University shall be prepared under the direction of the Executive Council and shall, once at least every year and at intervals of not more them fifteen months, be audited by the Comptroller and Auditor-General of India or by such persons as he may authorise in this behalf.
  2. (2) A copy of the annual accounts together with the audit report thereon shall be submitted to the Court and the Visitor along with the observations of the Executive Council.
  3. (3) Any observations made by the Visitor on the annual accounts shall be brought to the notice of the Court and the observations of the Court, if any, shall, after being considered by the Executive Council, be submitted to the Visitor.
  4. (4) A copy of the annual accounts together with the audit report, as submitted to the Visitor, shall also be submitted to the Central Government, which shall, as soon as may be, cause the same to be laid before both Houses of Parliament.
  5. (5) The audited annual accounts after having been laid before both Houses of Parliament shall be published in the Gazette of India.
Text note: The expression "not more them fifteen months" is reproduced as it appears in the official India Code text of Section 31(1). In context, the provision requires an audit at least once every year and at intervals not exceeding fifteen months.

Meaning and requirements of Section 31

1. Preparation under the Executive Council

Section 31(1) places responsibility for preparation of the University's annual accounts and balance-sheet under the direction of the Executive Council. The Executive Council therefore has an institutional supervisory role in the preparation of the financial statements required by the Act.

2. Audit by the Comptroller and Auditor-General of India

The accounts must be audited by the Comptroller and Auditor-General of India (CAG), or by a person authorised by the CAG for that purpose. The statutory text requires audit at least once every year and fixes a maximum interval of fifteen months between audits.

3. Submission to the Court and the Visitor

Under Section 31(2), the annual accounts and audit report must be sent to both the Court and the Visitor, together with the observations of the Executive Council. These expressions refer to statutory authorities or officers of the University as provided under the Central Universities Act, 2009 and the applicable Statutes.

4. Consideration of observations

Section 31(3) creates a review process. Observations made by the Visitor are brought to the Court. Any observations of the Court are then considered by the Executive Council and submitted to the Visitor.

5. Laying before both Houses of Parliament

Section 31(4) requires the annual accounts and audit report, as submitted to the Visitor, also to be submitted to the Central Government. The Central Government must, as soon as may be, cause them to be laid before both Houses of Parliament.

6. Publication in the Gazette of India

Section 31(5) completes the statutory process by requiring the audited annual accounts to be published in the Gazette of India after they have been laid before both Houses of Parliament.

Section 31 compliance flow

  • Annual accounts and balance-sheet are prepared under the direction of the Executive Council.
  • Audit is conducted by the CAG or a person authorised by the CAG.
  • The accounts and audit report, with Executive Council observations, go to the Court and Visitor.
  • Visitor observations are placed before the Court and the Court's observations are considered by the Executive Council.
  • The accounts and audit report are submitted to the Central Government.
  • The Central Government causes them to be laid before both Houses of Parliament.
  • The audited annual accounts are thereafter published in the Gazette of India.

Related provisions

Section 31 should be read with Section 30 - Annual report and Section 32 - Returns and information. Together, these provisions form part of the Act's framework for institutional reporting, financial accountability and submission of information.

Official source

For the authoritative text and current consolidated version of the Central Universities Act, 2009, refer to India Code - Central Universities Act, 2009 (Act 25 of 2009).