Chapter IX: GFR-2017 Grants-in-Aid and Loans PDF

Chapter IX: GFR-2017 Grants-in-Aid and Loans Compiled by: Bodh Raj A.O. Q.: What do you mean by Grants-in-aid and for what purposes it is granted? Under what conditions the Grants-in-aid is provided. [Rule-228] Ans.: Grants-in-aid are paym...

Chapter IX: GFR-2017 Grants-in-Aid and Loans Compiled by: Bodh Raj A.O. Q.: What do you mean by Grants-in-aid and for what purposes it is granted? Under what conditions the Grants-in-aid is provided. [Rule-228] Ans.: Grants-in-aid are payments in the nature of assistance, donations or contributions made by one government to another government, body, institute or individual. As a general principle, Grants-in-aid can be given to a person or a public body or an institution having a distinct legal entity. Purpose: The grants are usually provided to support the recipient entities in meeting its specific developmental or welfare objectives. These could range from infrastructure projects to social welfare programs. Conditions: The grants are often accompanied by specific conditions and guidelines. These conditions could relate to the utilization of funds, reporting mechanisms, and compliance with established norms and standards. Q.: Who are eligible for Grants-in-aid? [Rule-228] Or What are different institutions or organizations to whom grants-in-aid can be given as per GFR? Ans.: Grants-in-aid including scholarships may be sanctioned by an authority competent to do so under the Delegation of Financial Powers Rules to:  a) Institutions or Organizations set up as Autonomous Organisations, under a specific statute or as a society registered under the Societies Registration Act, 1860 or Indian Trusts Act, 1882 or other statutes. b) Voluntary organizations or Non- Government Organisations carrying out activities which promote the welfare schemes and programmes of the Government should be selected on the basis of well-defined criteria regarding financial and other resources, credibility and type of activities undertaken. c) Educational and other institutions by way of scholarships or stipends to the students. d) Urban and Rural local self- government institutions. e) Co-operative societies. f) Societies or clubs set up by Government servants to promote amongst themselves social, cultural and sports activities as recreational avenues. Q.: Define autonomous organizations in the context of GFR 2017. What are their key features? Ans.: The term "autonomous organizations" in the context of GFR 2017 typically refers to entities that have a degree of independence from the government in terms of their administration, operations, and financial management. Autonomous organizations are usually set up to perform specific functions or deliver particular services with a certain level of flexibility in decision-making. Key features of autonomous organizations include: 1. Financial Autonomy: Autonomous organizations often have financial autonomy, allowing them to manage their funds independently within the limits set by the government. 2. Administrative Independence: These entities may have a certain degree of administrative independence, enabling them to make decisions related to their operations without direct government intervention.  3. Board or Governing Body: Autonomous organizations typically have a board or governing body responsible for overseeing their activities and decision-making processes. 4. Functional Autonomy: They are established to carry out specific functions or provide particular services, and they have the flexibility to adapt their strategies to achieve their objectives. 5. Accountability: While autonomous, these organizations are still accountable for their actions and finances. They may be subject to audits and reviews to ensure transparency and compliance with relevant regulations. Q.: What are General Principles for setting up of Autonomous Organisations? [Rule-229] Ans.: The following principles are prescribed for setting up of Autonomous Organizations: I. No new autonomous institutions should be created by Ministries or Departments without the approval of the Cabinet. II. No new autonomous institution should be created by an Autonomous Body itself. However, Regional Centres /Offices /Sub-Stations of any autonomous body can be created with prior approval of the administrative ministry in consultation with Ministry of Finance. III. Stringent criteria should be followed for setting up of new autonomous organisations and the type of activities to be undertaken by them. IV. All autonomous organisations, new or already in existence should be encouraged to maximise generation of internal resources and eventually attain self-sufficiency. V. The Ministry or Department may consider creating a Corpus Fund for an Autonomous Body only with prior concurrence of Ministry of Finance if the corpus is created out of budgetary allocation.  VI. If the corpus is created out of internal accruals of the body, approval of the administrative Ministry must be obtained. VII. User Charges: Governing Body of the Autonomous Body shall review user charges/ sources of internal revenue generation at least once a year and inform the administrative Ministry. VIII. This exercise should preferably be completed before the formulation of Union Annual Budget. IX. All Autonomous Bodies should maintain database relating to grants, income, expenditure, investment assets and employee strength in the format prescribed by the Department of Expenditure, Ministry of Finance. X. Financial advice for Autonomous Bodies : Every autonomous organisation should designate an officer at appropriate level to render financial advice whose concurrence should be obtained for sanction and incurring of expenditure. The financial limits up to which such concurrence is mandatory may be drawn up by each organisation. The Chief Executive Officer of the Autonomous body will be responsible for overall financial management of the autonomous bodies. XI. Peer review of autonomous organizations: Ministry shall put in place a system of external or internal peer review of autonomous organizations every three years depending on the size and nature of activity. Such a review should be the responsibility of this concerned administrative division of the Ministry/Department and should focus on: a. the objective for which the autonomous organisation was set up and whether these objectives have been or are being achieved; b. Whether the activities should be continued at all, either because they are no longer relevant or have been completed or if there has been a substantial failure in achievement of objectives.  c. Whether the nature of the activities is such that these need to be performed only by an autonomous organisation. d. Whether similar functions are also being undertaken by other organisations, be it in the Central Government or State Governments or the Private Sector, and if so, whether there is scope for merging or winding up the organisations under review. e. Whether the total staff complement is kept at a minimum. f. Whether overhead/institutional charges/management fee are levied at appropriate rates. g. The scope for maximizing internal resources generation in the organization so that the dependence upon Government budgetary support is minimized. XII. An organisation whose performance is found to be outstanding and internationally acclaimed as a result of the review envisaged under Para (v) above should be granted greater autonomy and increased flexibility in matters of recruitment and financial rules thereby enabling it to devise and adopt staff structures, procedures and rules suited to improving their productivity. XIII. Autonomous organisations with a budgetary support of more than Rupees five crores per annum, should be required to enter into a Memorandum of Understanding with the Administrative Ministry or Department, spelling out clearly performance parameters, output targets etc. XIV. Findings of the peer review should be examined and put up for appropriate decision to the Secretary by the concerned programme division of the Administrative Department. Further releases of Grant (after three or five years, as the case may be), should be made conditional on conduct and decisions on the findings of such peer review. Q.: What are the Principles and Procedure for award of Grants-in-aid? (Rule 230) Or Explain Principles and Procedure for award of Grants-in-aid to Institutions/Organizations. Ans.: The following principles and procedure has been laid down in the GFR for award of grants-in-aid to Institutions/Organizations: 1. Any Institution or Organisation seeking Grants-in-aid from Government will be required to submit an application which includes all relevant information such as:  Articles of Association, bye-laws, audited statement of accounts, sources and pattern of income and expenditure etc. enabling the sanctioning authority to assess the suitability of the Institution or Organisation seeking Grant.  The application should clearly spell out the need for seeking Grant and should be submitted in such form as may be prescribed by the sanctioning authority.  The Institution or Organisation seeking Grants-in-aid should also certify that it has not obtained or applied for grants for the same purpose or activity from any other Ministry or Department of the Government of India or State Government. 2. In order to obviate duplication in Grants-in-aid, each Ministry or Department should maintain a list of institutions or organisations along with details of amount and purpose of Grants given to them. These details should also be made available on the website of the Ministry/Department. 3. Award of Grants should be considered only on the basis of viable and specific schemes drawn up in sufficient detail by the institution or organisation. The budget for such schemes should disclose, inter alia, the specific quantified and qualitative targets likely to be attained against the outlay. 4. All Grant sanctioning authorities should enforce the condition of maintaining and presenting their annual accounts in the standard formats on all Central Autonomous Organisations. There are two types of Grants: 1. Recurring Grant: Recurring Grant is defined as one which is released periodically to the same organization for the same purpose. 2. Non-recurring Grant: Non-recurring Grant is one time release to an organization for a special purpose (which could be released in instalments). Every order sanctioning a Grant shall indicate whether it is recurring or non- recurring and specify clearly the object for which it is being given and the general and special conditions, if any, attached to the Grant. 5. Central Autonomous Organisations which receive Grants should account for capital and revenue expenditure separately. The Government of India, Ministry of Finance has formulated standard formats for presentation of final accounts, for all Central Autonomous Organisations. 6. The Grants sanctioning authorities should not only take into account the internally generated resources while regulating the award of Grants but should consider laying down targets for internal resources generation by the Grantee Institutions or Organisations every financial year, particularly where Grants are given on recurring basis every year. 7. Unspent Balances: When recurring Grants-in-aid are sanctioned to the same Institution or Organisation for the same purpose, the unspent balance of the previous Grant should be taken into account in sanctioning the subsequent Grant. For this purpose, the Programme Division of Ministries/Department shall take help of PFMS Portal to know the bank balance of the recipients before making each release. The instructions of Department of Expenditure regarding the use of PFMS Portal for Central Sector Schemes issued from time to time shall be strictly followed by all Ministries/Departments. The principles of 'just in time release’ should be  applied for releases in respect of all payments to the extent possible. The following broad principles shall be adhered to: - I. Cash balance at a time should preferably not be more than 3 months of requirements. II. Funds should be released as per actual requirements and that sanction may precede the release of funds, through its validity may be limited to that financial year. 8. All interests or other earnings against Grants in aid or advances (other than reimbursement) released to any Grantee institution should be mandatorily remitted to the Consolidated Fund of India immediately after finalisation of the accounts. Such advances should not be allowed to be adjusted against future releases. 9. In making Grants to NGOS a condition should be laid down that assets acquired wholly or substantially out of Government Grants, except those declared as obsolete and unserviceable or condemned in accordance with the procedure laid down in the General Financial Rules, shall not be disposed of without obtaining the prior approval of the authority which sanctioned the Grants-in-aid. 10. The sanctioning authority may prescribe conditions regarding quantum and periodicity for release of Grants-in-aid in instalments in consultation with the Financial Adviser. However, the release of the last instalment of the Annual Grant must be conditional upon the Grantee Institutions providing reasonable evidence of proper utilization of instalments released earlier. In the cases where Central Financial Assistance (CFA) has been sanctioned, the grant will be released in one instalment upon the Grantee Institutions/Organisation providing complete evidence of achieving the specified objectives and expenditure incurred supported by Audited Statement of Expenditure. In these cases, the grantee institutions will not be required to submit Utilization Certificates. 11. In order to finalize the Budgetary Estimates of Grants-in-aid to the Grantee Institutions, the Ministry or Department should impress upon Institution or Organisation desiring Grants from Government, to submit their requirement with supporting details by the end of September in the year preceding the year for which the Grants-in-aid is sought. The Ministry or Department should finalize their examination of the requests and make the necessary Budget provision where it is decided to sanction Grants. The Institution or Organisation should be informed of the result of their requests by April of the succeeding year. 12. (i) All Grantee Institutions or Organisations which receive more than fifty per cent of their recurring expenditure in the form of Grants-inaid, should ordinarily formulate terms and conditions of service of their employees which are, by and large, not higher than those applicable to similar categories of employees in Central Government. In exceptional cases relaxation may be made in consultation with the Ministry of Finance. (ii) Grantee Institutions or Organisations should be encouraged to take advantage of the pension or gratuity schemes or Group Insurance Schemes or house buildings loans or vehicle loans schemes etc. available in the market for employees instead of undertaking liability on their own or Government account. 13. The sanctioning authority, while laying down the pattern of assistance, may decide whether the ownership of buildings constructed with Grants-in-aid may vest with Government or the Grantee Institution or Organisation. Where the ownership is vested in the Government, the Grantee Institution or Organisation may be allowed to occupy the building as a lessee. In such cases suitable record of details of location, cost, name of lessee and terms and conditions of lease must be maintained in the records of the granting Ministry or Department. In all cases of buildings constructed with Grants-in- aid, responsibility of maintenance of such buildings shall be of the Grantee Institution or Organisation. 14. Any other special terms and conditions or procedures for transaction of business as Government may desire to be followed by the Grantee Institution or Organisation, shall be got incorporated in the Articles of Association or bye-laws of the Institution or Organisation concerned before release of Grants-in-aid. 15. Grants-in-aid may be sanctioned to meet the bonafide expenditure incurred not earlier than two years prior to the date of issue of the sanction. 16. The stipulation in regard to refund of the unutilised amount of Grant-in-aid with interest thereon should be brought out clearly in the letter sanctioning the Grant as well as in the bond so required to be executed. 17. (i) As a precondition to the sanction of Grants-in-aid to the agencies where: (a) the recipient body employs more than twenty persons on a regular basis and at least fifty per cent of its recurring expenditure is met from Grants-in-aid from Central Government; and (b) the body is a registered society or a co-operative institution and is in receipt of a general purpose annual Grants-in-aid of Rupees twenty lakhs and above from the Consolidated Fund of India; the Grant sanctioning authority should ensure that a suitable clause is invariably included in the terms and conditions under which the Grants- inaid are given, to provide for reservation for Scheduled Castes and Scheduled Tribes or OBC in posts and services under such organizations or agencies. The relative provision may be on the following lines: - “… … … … ….. (Name o f Institution or Organization etc.) agrees to make reservations for Scheduled Castes and Scheduled Tribes or OBC in the posts or services under its control on the lines indicated by the Government of India”. (ii) While sanctioning Grants-in-aid to Institutions or Organisations referred to in (a) above, the Grant sanctioning authority should keep in view the progress made by such Institutions or Organisations in employing Scheduled Castes and Scheduled Tribes or OBC candidates in their services. Q.: What are general principles and procedure for sanction of Grants-in-Aid to Voluntary Organizations? (Rule 231) Ans.: Voluntary organization refers to a non-governmental organization (NGO) that is established and operated by individuals or groups on a voluntary basis, often for social, cultural, charitable, or environmental purposes. The following principles and procedure are to be observed while sanctioning GIA to Voluntary Organizations:  Subject to the following terms and conditions, Grants-in-aid towards administrative expenditure may be sanctioned to voluntary organizations to ensure a certain minimum staff structure and qualified personnel to improve their effectiveness and expand their activities under the following conditions: - i. The Grants-in-aid should not exceed twenty-five per cent of approved administrative expenditure on pay and allowances of the personnel of the voluntary organisation concerned; ii. Grants-in-aid to meet administrative expenditure to any private institutions other than the voluntary organizations should not ordinarily be sanctioned. In exceptional cases such Grants can be considered for sanction in consultation with Internal Finance Wing.  Before a Grant is released, the members of the Executive Committee of the Grantee should be asked to Execute Bonds in a prescribed format binding themselves jointly and severally to:- I. abide by the conditions of the Grants-in-aid by the target dates, if any, specified therein; and II. not to divert the Grants or entrust execution of the scheme or work concerned to another Institution(s) or Organization(s); and III. abide by any other conditions specified in the agreement governing the Grants-in-aid. IV. In the event of the Grantee failing to comply with the conditions or committing breach of the conditions of the Bond, the signatories to the Bond shall be jointly and severally liable to refund to the President of India, the whole or a part amount of the Grant with interest at ten per  cent per annum thereon or the sum specified under the Bond. The stamp duty for this Bond shall be borne by the Government.  Execution of Bond will not apply to Quasi-Government Institutions, Central Autonomous Organisations and Institutions whose budget is approved by the Government. Q.: Discuss general principles for award of Grants-in-aid for Centrally Sponsored Schemes. [Rule- 232] Ans.: Centrally Sponsored Schemes (CSS) refer to the government programs or schemes that are implemented by both the central government and state governments. These schemes are designed to address various socioeconomic issues and development objectives across the country. The funding for centrally sponsored schemes is shared between the central and state governments, with the central government typically providing a higher proportion of the funds. Examples of Centrally Sponsored Schemes in India include the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), National Health Mission (NHM), and Swachh Bharat Abhiyan, etc. The following principles should be kept in view by Ministries/Departments of the Central Government at the time of designing Centrally Sponsored Schemes for implementation in State Governments or Union Territories and approving and releasing assistance to State Governments or Union Territories for such schemes:- (i) Every Centrally Sponsored Scheme should have a time-bound quantifiable and measurable outcome targets with provisions for periodic monitoring, mid-term evaluation and detailed impact studies. (ii) The scheme should be designed in consultation with States and Union Territories. States should be delegated adequate powers to change the details of the schemes to suit local conditions, subject to reporting such changes to the concerned Ministry or Department. (iii) Where schemes are in operation with similar objectives targeting the same population, the schemes should be converged. (iv) To ensure monitoring and effective control over such schemes, the number of schemes should be restricted, so that the gain from the expenditure on such schemes is maximized. The role of the Central Ministries or Departments should be capacity building, inter- sectoral coordination, and detailed monitoring. (v) The release of funds to State Governments and monitoring further utilisation should be undertaken through PFMS. The Ministries or Departments should establish a mechanism to ensure that the funds earlier released have been effectively utilised and that the data and facts reported by the State Governments or Union Territories relating to physical and financial performance are correct. Before releasing further funds, it should also be ensured that the State Governments or Union Territories have the capacity to actually spend the balance from the previous years and the releases during the current year. (vi) The Ministries or Departments should focus attention on the attainment of the objectives and not on expenditure only. A mechanism for avoiding release of large part of funds towards the end of the year should be devised and incorporated in the Scheme design itself. (vii) A concurrent monitoring and evaluation mechanism should be built into the Scheme. A periodic review of every Centrally Sponsored Scheme should be undertaken for any required midcourse correction or changes in the scheme design. (viii) A post-completion review of every Centrally Sponsored Scheme should be undertaken by the State Government(s) or Union Territories implementing the scheme, highlighting the time and cost overruns, if any, and suggestions for formulating and implementing future schemes. A copy of the review should be obtained by the Ministry concerned and kept in view while formulating new Centrally Sponsored Schemes. Q.: What are the main points to be considered in funding of Sponsored Projects or Schemes? Ans.: The following points merit consideration in funding of sponsored projects or schemes:  (i) Normally the entire expenditure including capital expenditure on projects or schemes undertaken by Universities, IITs, and other similar Autonomous Organisations such as ICAR, CSIR, ICMR etc., the results from which are expected to be in national interest, are funded by the Ministry or Department. The funds released for such projects or schemes in one or more installments are not treated as Grants-in-aid in the books of the implementing agency. On completion of these project or scheme, the ownership in the physical and intellectual assets created or acquired out of such funds shall vest in the sponsor. While in case of ongoing Projects or Schemes, the recipients should not treat such assets as their own assets in their Books of Accounts but should disclose their holding in the Notes to Accounts specifically. (ii) On completion of the Projects or Schemes and the receipt of technical and financial reports, the Ministries/Departments should decide and communicate to the implementing agencies whether the assets should be returned, sold, or retained by them. (iii) If the assets are to be sold, the proceeds therefrom should be credited to the account of the sponsoring Department/Organisation. If the assets are allowed to be retained by the Institution/Organisation, the implementing agency should include the assets at the book value in their own accounts. Q.: Define register of grants. What are its contents and who maintains it? [Rule- 234] Ans.: A Register of Grants shall be maintained by the sanctioning authority in the format given in Form GFR 21. a. Columns like serial number, number and date of sanction letter, purpose of grant, conditions attached to the grant and amount sanctioned should be filled in simultaneously with the issue of the order sanctioning each Grant. These columns should be attested by any Gazetted Officer nominated for the purpose by the sanctioning authority. The serial number should be recorded on  the body of the sanction at the time the item is entered in the Register as under: “Noted at Serial No.____in the Register of Grants”. b. Such a record will guard against the possibility of double payment. Columns like amount of the bills and information regarding acceptance of conditions attached to grant by the grantee without reservation should be filled in and attested by the Gazetted Officer concerned as soon as the bill is ready. The bill should then be submitted to the Gazetted Officer nominated to act as Drawing and Disbursing Officer with the register for signing the bill and to the sanctioning authority for giving dated initials in column (viii) of Register. It should also be the duty of the sanctioning authority to verify that the conditions, if any, attached to the Grant have been duly accepted by the Grantee without any reservation and that no other bill for the same purpose has already been paid before. No bill should be signed unless it has been noted in the Register of Grants against the relevant sanction. This will also facilitate watching of payments in installments, if any, in the case of lump sum sanctions. c. Information in the last column which deals with unspent balance, if any, should be used also for regulating the subsequent Grants. Q.: Write note on accounts and audit of accounts of grantee institutions. (Rule 235, 236 and 237) Ans.: Accounts of Grantee Institutions: Institutions or Organizations receiving Grants should, irrespective of the amount involved, be required to maintain subsidiary accounts of the Government grant, and furnish to the Accounts Officer a set of audited statement of accounts. These audited statements of accounts should be required to be furnished after utilization of the Grants-in-aid or whenever called for. Audit of Accounts: (1) The accounts of all Grantee Institutions or Organizations shall be open to inspection by the sanctioning authority and audit by the CAG of India under the provision of Comptroller and Auditor General (Duties, Powers and Conditions of Service) Act, 1971 and internal audit by the Principal Accounts Office of the Ministry or Department, whenever the Institution or Organization is called upon to do so and a provision to this effect should invariably be incorporated in all orders sanctioning Grants-in-aid. (2)(i) The accounts of the Grantee Institution or Organization shall be audited by the CAG of India under Section 14 of the Comptroller and Auditor General of India (Duties, Powers and Conditions of Service) Act, 1971, if the Grants or loans to the Institution in a Financial Year are not less than Rupees Twenty-Five Lakhs and also not less than Seventy-Five percent of the total expenditure of the Institution. Where the accounts are so audited by the CAG of India in a Financial Year, he shall continue to audit the accounts for a further period of two years not withstanding that the conditions outlined above are not fulfilled. (ii) Where any Grant is given for any specific purpose to any Institution or Organization or authority, not being a foreign State or International Body/Organization, the CAG is competent under Section 15 (1) of the CAG's (DPC) Act, 1971, to scrutinize the procedures by which the sanctioning authority satisfies itself as to the fulfillment of the conditions subject to which such Grants and/or loans were given and shall, for this purpose, have right of access to the books and accounts of that Institute or Organization or Authority. (3) In all other cases, the Institution or Organization shall get its accounts audited from Chartered Accountants of its own choice. (4) Where the CAG of India is the sole auditor for a local Body or Institution, auditing charges will be payable by the Auditee Institution in full unless specifically waived by Government. Time Schedule for submission of annual accounts: The dates prescribed for submission of the annual accounts for Audit leading to the issue of Audit Certificate by the CAG of India and for submission of annual report and audited accounts to the nodal Ministry for timely submission to the Parliament are listed below: -  (i) Approved and authenticated annual accounts to be made available by the Autonomous Body to the concerned Audit Office and commencement of audit of annual accounts-30th June. (ii) Issue of the final Special Audit Report in English version with audit certificate to Autonomous Body/Government concerned-31st October. (iii) Submission of the Annual Report and Audited Accounts to the Nodal agency for it to be laid on the Table of the Parliament-31st December. Q.: What are governing provisions regarding Utilization Certificates in GFR? (Rule 238) Ans.: The following are provisions regarding Utilization Certificates as per GFR: 1. In respect of non-recurring Grants to an Institution or Organization, a certificate of actual utilization of the Grants received for the purpose for which it was sanctioned in Form GFR 12-A, should be insisted upon in the order sanctioning the Grants-in-aid. The UC should be submitted within twelve months of the closure of the Financial Year by the Institution or Organization concerned. Receipt of such certificate shall be scrutinized by the Ministry or Department concerned. Where such certificate is not received from the Grantee within the prescribed time, the Ministry or Department will be at liberty to blacklist such Institution or Organization from any future grant, subsidy, or other type of financial support from the Government. 2. In respect of recurring Grants, Ministry or Department concerned should release any amount sanctioned for the subsequent Financial Year only after UC in respect of Grants of preceding Financial Year is submitted. Release of Grants-in-aid in excess of Seventy-Five per cent of the total amount sanctioned for the subsequent Financial Year shall be done only after utilization certificate and the annual audited statement relating to Grants- in-aid released in the preceding year are submitted to the satisfaction of the Ministry/Department concerned. Reports submitted by the Internal Audit parties of the Ministry or Department and Inspection Reports received from Indian Audit and Accounts Department and the performance reports if any  received for the third and fourth quarter in the year should also be looked into while sanctioning further Grants. 3. UC need not be furnished in cases where the Grants-in– aid/CFA are being made as reimbursement of expenditure already incurred on the basis of duly audited accounts. In such cases the sanction letters should specify clearly that the UC will not be necessary. 4. In respect of Central Autonomous Organizations, the UC shall disclose separately the annual expenditure incurred and the funds given to suppliers of stores and assets, to construction agencies, to staff for (House Building and Purchase of conveyance) which do not constitute expenditure at that stage but have been met out of Grants and are pending adjustments. These shall be treated as unutilized Grants allowed to be carried forward. While recording the Grants in the subsequent year the amount carried forward shall be taken into account. 5. In the case of Private and Voluntary Organizations receiving recurring Grants-in-aid from Rupees Ten Lakhs to less than Rupees Fifty Lakhs, all the Ministries or Departments of Government of India should include in their Annual Report a statement showing the quantum of funds provided to each of those organizations and the purpose for which they were utilized, for the information of Parliament. The Annual Reports and accounts of Private and Voluntary Organizations receiving recurring Grants-in-aid to the tune of Rupees Fifty Lakhs and above should be laid on the Table of the House within nine months of the close of the succeeding Financial Year of the Grantee Organizations. 6. In the case of organizations receiving one-time assistance or non-recurring Grants as Grants-in-aid from Rupees Ten Lakhs to Rupees Fifty Lakhs, all Ministries or Departments of Government of India should include in their Annual Reports, statements showing the quantum of funds provided to each of these organizations and the purpose for which the funds were utilized, for the information of Parliament. The Annual Reports and Audited Accounts of Private and Voluntary Organizations or societies registered under the Registration of Societies Act, 1860, receiving one- time assistance/nonrecurring Grants of Rupees Fifty Lakhs and above should  also be laid on the Table of the House, within nine months of the close of the succeeding Financial Year of the Grantee Organizations. Q.: Whether State/UT Government has also to submit Utilization Certificate for Grantsin-aid from Central Government. Explain this statement. (Rule 239 and 240) Ans.: The following are the situations when State/UT Governments have to furnish Utilization Certificate for the grants-in-aid from Central Government:  When Central Grants are given to State/UT Governments for implementation of Central Schemes, UC in Format GFR 12-C may be submitted by the State/UT Government in respect of the Scheme. The UC should be counter-signed by the Administrative Secretary of the Division regulating the Scheme/Finance Secretary.  When Central Grants are given to State/UT Governments for  expenditure to be incurred by them through local bodies or private institutions, the UCs should be furnished by the State Government concerned. Q.: Who provides utilization certificate in case of Direct Benefit Transfer (DBT) Scheme? (Rule- 241) Ans.: In case of the schemes covered under Direct Benefit Transfers (DBT), where the fund flow is directly from the Central Government to the beneficiaries, the intimation from the bank/National Payments Corporation of India (Aadhaar Payment Bridge) regarding deposit of the funds in the beneficiaries' bank accounts, generated as per procedure prescribed by the Controller General of Accounts, may be treated as a Utilization Certificate. The Ministry/Department releasing the Grant should keep proper record and accounts relating to such direct releases under DBT to the beneficiaries bank accounts. Q.: In addition to Utilization Certificates, grantee institutions or organizations have also to submit Achievement-cum-Performance Reports periodically. Explain this statement. (Rule- 242) Ans: The term "Achievement-cum-Performance Reports" refers to the reports that grantees Institutions are required to provide information on the progress and outcomes achieved through the utilization of the granted funds. The following are the provisions relating to submission of Achievement-cum- Performance Reports: i. The Grantee Institutions or Organisations should be required to submit performance cum achievement reports soon after the end of the Financial Year, and in any case, not later than six months after the close of the Financial Year. ii. In regard to non-recurring Grants such as those meant for celebration of anniversaries, conduct of special tours and maintenance Grants for education, performance-cum-achievement reports need not be obtained. iii. In the case of recurring Grants, submission of achievement- cumperformance reports should usually be insisted upon in all cases. However, in the case of Grants-in-aid not exceeding Rupees Twenty- Five Lakhs, the sanctioning authority may dispense with the submission of performance-cum-achievement reports and should, in that event, refer to the UCs and other information available with it to decide whether or not the Grantsin-aid should continue to be given. iv. (a) The Annual Reports and Audited Statements of Accounts of Autonomous Organisations are required to be laid on the table of the Parliament. In such cases, the Ministries or Departments of Central Government need not incorporate performance-cum- achievement reports in the Annual Reports. (b) In all other cases, if the Grants-in-aid exceed Rupees Ten Lakhs but less than rupees Fifty Lakhs, the Ministry or Departments of the Central Government should include a statement in their Annual  Report of their own assessment of the achievements or performance of the Institution or Organisations. (c) In cases where the Grants-in-aid are for Rupees Fifty Lakhs or more, the Ministry or Departments of the Central Government should include in their Annual Report a review of the utilization of the Grants-in-aid individually, specifying in detail the achievements vis-a- vis the amount spent, the purpose and destination of Grants. v. Where the accounts of the Grantee Institutions or Organisations are audited by the CAG of India copies of the performance- cumachievement reports, furnished by the grantee Institution to the Administrative Ministry or sanctioning authority should be made available to audit. In other cases, copies of such reports, received by the Departments of the Central Government or the sanctioning authority should be made available to audit when local audit of such Grants-in-aid in the Administrative Ministry or Department or sanctioning authority is conducted or when it is called for by the Accountant General. Q.: Explain meaning of discretionary grants (Rule 243) and other grants (Rule 244 & 245) Ans.: Discretionary Grants: When an allotment for Discretionary Grants is placed at the disposal of a particular authority, the expenditure from such Grants shall be regulated by general or special orders of the competent authority specifying the object for which the Grants can be made and any other condition(s) that shall apply to them. Such Discretionary Grants must be non-recurring and not involve any future commitment. Other Grants: Grants, subventions, etc., including Grants to States other than those dealt with in the foregoing rules, shall be made under special orders of Government. 1. Regulation of recurring Grants-in-aid for Government employees' welfare: – GIA for provision of amenities or of recreational or welfare facilities to the staff of the offices of the Government are regulated under orders of the Ministry of Home Affairs issued from time to time. The admissibility of the GIA for the welfare of the employees of the Government should be regulated in the following manner:- i) The GIA will be admissible based on the total strength borne on the regular strength of an organization, i.e., Ministry or Department, etc., and its attached and Subordinate Offices and such statutory bodies whose budget forms part of Consolidated Fund of India, ir-respective of the fact whether any individual is a member of the staff club, etc., or not. However, GIA in respect of Gazetted Officers will be admissible only to that Ministry or Department or Office where membership of recreation club is open to such officers. Staff paid from contingencies, work-charged staff etc., will not be taken into calculation for this purpose. ii) Amounts of Grants-in-aid. The rate of the GIA will be Rupees fifty per head per annum. In addition to this, an additional GIA up to Rupees Twenty-Five per head per annum to match the subscriptions collected during the previous financial year by the existing staff clubs will be admissible. In the case of staff clubs which are started during the financial year in which GIA is to be given, an additional matching GIA up to Rupees Twenty-Five per head per annum, to match the subscription collected by such clubs up to the date on which the proposal for the Grant is mooted, may be sanctioned. The total strength of the eligible staff will be that existing on the Thirty- First March of the previous Financial Year or that on the date on which proposal for Grant is mooted in the case of new staff clubs above rates, as revised from time to time will apply. iii) An illustrative list of items on which expenditure can be incurred out of GIA sanctioned by Government for provision of amenities is given below: a. Articles of sports–Outdoor and Indoor Games equipment. b. Cost of uniforms, etc., supplied to teams of players. c. Magazines and periodicals.  d. Entry fee for tournaments. e. Hiring of playgrounds. f. Hiring and repair for furniture, etc. g. Purchase of furniture. h. Conveyance expenses incurred locally. i. Entertainments. j. Prizes. k. Film shows. l. Hiring of accommodation for Club/Association, etc. m. Cultural, Sports and Physical Development Programme(s). n. Inter-Ministerial meets. o. Inter-Departmental meets. 2. A maximum one-time Grant of Rupees Fifty Thousand may be sanctioned for setting up of a Recreation Club. 3. GIA to the Ministry or Departments of the Central Government and their Attached and Subordinate Offices will be allocated by the concerned Ministry or Department on receipt of formal requests in the prescribed manner. For the purposes of these GIA, the Departments of the Central Government and their attached and Subordinate Offices will be treated as a single unit. It will be the responsibility of that Ministry or Department to distribute the amount further to its Attached and Subordinate Offices and to their different clubs. The accounts of these clubs for the preceding year duly audited by an Internal Auditor should be obtained immediately after the close of the Financial Year in any case by the thirtieth April by the Ministry or Department before allocating funds for the next Financial Year. 4. GIA for the provision of amenities or recreational or welfare facilities to the staff of the Indian Audit and Accounts Department are regulated by separate orders. Thank You