1. Financial Management, Reporting, and Oversight at IIT Kanpur March 28, 2014 1

2. IITK Finances Management Accounting / Reporting Oversight (External & Internal)

3. Financial Management Framework IIT Act, Statutes – overarching guidance IIT Act, Statutes – overarching guidance Govt. of India Rules & Regulations – regulate personal benefits and claims Govt. of India Rules & Regulations – regulate personal benefits and claims 3

4. Financial Management Framework (contd.) Strategic / Annual Plan / Budget – institutional priorities, income projections, and what is available for spending? Strategic / Annual Plan / Budget – institutional priorities, income projections, and what is available for spending? Financial Delegations – who may spend and how much? 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? 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)? Accounts – what is the financial performance (against budget / previous year)?

5. Management of IITK’s finances De-centralized - Organized by source of funds

6. Management of IITK’s Finances Source of fundsOfficer In charge Overall Supervision Plan and Non-PlanSr. DR (F&A)Finance Officer (FO) Student FeesDR (SA)Dean, Students’ Affairs (DOSA) Sponsored Research and Consultancies DR (R&D)Dean, Research & Development (DORD) Donations, Endowments, and Investments AR (R&A)Dean, Resources & Alumni (DORA) OthersVarious

7. Accounting of IITK’s Finances First level - decentralized Consolidation - centralized

8. Accounting of IITK’s Finances Source of fundsOfficer / Faculty In charge Consolidation Plan and Non-PlanSr. DR (F&A)AR (F&A) / Sr. DR (F&A) / Finance Officer (FO) Student FeesDR (SA) / DOSAAR (F&A) / Sr. DR (F&A) / FO Sponsored Research and Consultancies DR (R&D) / DORDAR (F&A) / Sr. DR (F&A) / FO Donations, Endowments, and Investments AR (R&A) / DORAAR (F&A) / Sr. DR (F&A) / FO OthersVariousAR (F&A) / Sr. DR (F&A) / FO

9. Oversight of IITK’s finances Committee-led A mix of External, Partly External and Internal.

10. External oversight of IITK’s finances Driven by / Committee chair non-IITK employee.

11. 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.

12. Partly External oversight of IITK’s finances Committee chaired by Director but has some external members.

13. 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.

14. Internal oversight of IITK’s finances Driven by / Committee comprising IITK employees only.

15. 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.

16. 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.

17. Oversight hierarchy at a glance CAG I BOG I Finance Committee I Director-------------------BWC----------------MCEF I I FCC IC

18. Thank you Thank you 18