Grant-in-aid

a
Presentation by
V.R.Ramankutty,
Faculty, RTC, Mumbai

1
 Eligibility for Grant
1. Institutions or Organizations set up as Autonomous Body under
specific statue
2. Society/Trust registered under Societies Registration Act 1860 or
Indian Trust Act 1882
3. Voluntary Organizations or Non-Govt. Organization (NGO) carrying
out activities which promote the welfare schemes & programmes
of Govt.
4. Education and other Institutions by way of scholarships or stipends
to the students
5. Urban and Rural local self Government Institutions
6. Co-operative Societies
7. Societies or clubs set by Govt. servants to promote among
themselves social, cultural and sports activities as recreational
avenue.
(GFR 206)

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 Principles setting up Autonomous Organization

The Ministry or Dept. should examine in detail:

1. Whether the activities proposed are necessary at all
2. Is it necessary to set up a new organization to undertake
the proposal
3. Whether the activities can be performed by the
concerned Govt. Agency or any other Organization
existing
4. All autonomous organizations, new or existing, should
be encouraged to maximize generation of internal
resources and eventually attain self sufficiency

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 Principles setting up Autonomous Organization

5. Instead of giving recurring grants, wherever possible,

Ministry/Dept. may consider creating corpus fund to
generate revenue for meeting future expenditure
6. A system of close review of functions of autonomous
organization every three or five years according to its
size & activities
7. An organization whose performance found outstanding
should be granted greater autonomy and increased
flexibility in matters of recruitment and financial rules
8. Autonomous Organization with grant of more than 5
Crores should be required to enter into Memorandum of
Understanding(MOU) with the Administrative Ministry
detailing their output targets, details of programme,
qualitative improvement in output etc.
(GFR 208)
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 Procedure for award for GIA
1. Institution/Organization should submit a detailed
application showing:
a) Articles of Association,
b) Bye-laws,
c) Audited statement of accounts
d) Sources and pattern of income &
expenditure
2. They should also certify that that had not
obtained/applied grant from any other Ministry
of the Govt. of India or State Govt.
(GFR 209(1)5
 Sanctioning Authority
Ministry/Department of the Central Govt.
directly concerned with the aim or activity of
the institution
Ministry should consult Integrated
Financial Advisor (IFA) of the Ministry before
sanctioning the grant

(GFR 207)
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 Terms & Conditions to Vol.Orgn.
a) GIA should not exceed 25% of approved
administrative expenditure on pay and
allowances of the personnel
b) Only the minimum structure of qualified
staff is permissible
c) Normally, no GIA is granted to private
institutions
[GFR 209(4)]

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 Sanction
1. Sanction should indicate whether the grant is
recurring or non-recurring
2. Specify the object for which the Grant is given
3. General & Special conditions of the Grant
4. In the case of non-recurring grant for specified
object, the order shall specify the time limit of
utilization of grant
5. Periodicity and quantum of each instalment of
grant. However, last instalment shall not be
released without getting Utilization Certificate
for the earlier instalments.
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 Sanction
6. When recurring GIA is sanctioned, the unspent
balance of the previous grant should be taken
into account in sanctioning the subsequent
grant
7. All Grantee Organization which receive more
than 50% of their recurring expenditure as GIA,
should formulate terms and conditions of
service of their employees which, normally, not
higher to such employees in Govt.
8. Non-Govt. or quasi-Govt. Institutions should
not dispose of assets that are acquired from
grants, without permission from Govt.
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 Sanction
9. GIA should be sanction to meet the bona fide
expenditure incurred not earlier than 2 years prior to the
date of issue of sanction.
10. Before the grant is released, the Executive Committee of
the grantee should execute bonds in a prescribed format
binding themselves jointly and severally
11. Execution of bonds not applicable to quasi-Government
and Central Autonomous Institutions whose budget is
approved by Govt.
12. Refund of GIA along with interest should be specified.
13. Ensure the employment of SC/ST/OBC if the grantee
employs more than 20 persons & spending 50% of its
recurring expenditure from grant.

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 Sanction
14.Central A.B. which receives Plan as well as
Non-Plan grants, should account for
expenditure (Capital & Revenue) separately
under Plan & Non-plan.
15.Sanctioning Authority should consider the
internally generated resources while
awarding the grant.

(GFR-209)
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 Accounts of Grantee Institutions

1. Grantee Institution should maintain

subsidiary account of Grant
2. Furnish such account to Accounts Officer of
the Ministry
3. Furnish the audited statements of accounts
after utilization of the grants or whenever is
called for
(GFR 210)

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 Audit
1. All Accounts of all Grantee Institutions are open to
inspection by the Sanctioning Authority and audit
both by the Controller General of Accounts (CGA)
and Comptroller & Auditor General of India (C&AG)
2. As per CGA Act. Section 15(Duties, Power &
Conditions of Service) C&AG should audit of an
Grantee accounts if grant is more than 25 lakh in a
financial year
3. In all other cases the Grantee institution shall get its
account audited by CA of its own choice
(GFR 211)
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 Utilization Certificate(U/c)
A. Non-recurring Grants:
1. Utilization Certificate in form GFR 19A
2. If the sanction of grants specified the conditions regarding
quantum and periodicity for release of GIA, the U/c should
also disclose whether the specified, quantified, qualitative
targets are reached, if not the reasons therefore. Such U/c
should also contain an out-put based performance assessment
instead of in-put based performance assessment.
3. U/c should be submitted within 12 months from the close of
financial year of Grantee
4. In case U/c not received by the Ministry, they are at liberty to
black-list such Grantee for future grant, subsidy etc.
[GFR 212(1)]
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 GFR 19A
S.No. Letter No.& Date Amount

Total

1. Certified that out of Rs………of GIA sanctioned during the year………in favour
Of………under the Ministry/Dept. letter No. given in the margin and Rs………..On account of unspent balance of
previous year, a sum of Rs………has been utilized for the purpose of……..for which it was sanctioned and that the
balance of Rs………remaining unutilized at the end of the year has been surrendered to Govt. vide No. …
dated…/will be adjusted towards GIA payable during next Year……..
2. Certified that I have satisfied myself that the conditions on which the GIA was sanctioned have
been duly fulfilled/are being fulfilled and that I have exercised the following checks to see that the money was
actually utilized for the purpose for which it was sanctioned.
Kinds of checks exercised:
1.
2.
3.
Signature
Designation
Date

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B. Recurring Grant:
1.Release of Grant for the subsequent financial year is
subject to submission of provisional U/c for the
preceding financial year
2.Release of GIA in excess of 75% of the total amount
sanctioned for the subsequent financial year shall be
done only after getting final U/c and Audit Statement
3.While sanctioning the grant the Ministry would
consider the Internal Audit report & External Audit
Report & Performance Reports (if any)

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 Utilization Certificate(U/c)
C. GIA to Private or Vol. Organizations :
1. GIA from 10 to 25 lakh, Ministry should include in
their annual report showing quantum of the funds
provided to each organizations and the purpose
for which it is utilized
2. Accounts & Annual Report of GIA above 25 lakhs
in the recurring nature should be reported to
Parliament within 9 months of the close of
succeeding financial year of Grantee.

[GFR 212(2)]
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 Utilization Certificate(U/c)
4. U/c not necessary where the GIA is made as
reimbursement of expenditure already incurred on
the basis of audited accounts
5. Central Autonomous Body, shall disclose separately
the actual expenditure incurred and loans and
advances given to suppliers, including loan to staff
(HBA etc.) These advances will not treat as
expenditure at this stage and treated as unutilized
grant but allowed to carry forward.
[GFR 212(1)]

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 Utilization Certificate by State
When Central Grants are given to State Govts.
for expenditure to be incurred by them through
local bodies or private institutions, the utilization
certificate should be submitted by State Govt.

[GFR 212 (5)]

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 Achievement-cum-Performance Report(ACPR)
1. Grantee should submit ACPR soon after the end of
the financial year. A time limit may be specified by
the Ministry
2. In respect of non-recurring grants meant for
anniversaries, special tour, maintenance grants for
education ACPR not necessary
3. In case recurring GIA, submission of Performance
Report is normally insisted upon. But GIA not more
than 5 lakhs, the Ministry may dispense with ACPR
4. ACPR should be made available to C&AG
[GFR 212(3)]
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 Achievement-cum-Performance Report(ACPR)

3. In case recurring GIA, submission of

Performance Report is normally insisted upon.
But GIA not more than 5 lakhs, the Ministry
may dispense with ACPR
4. ACPR should be made available to C&AG

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 GIA for Govt. Employees Welfare
1. It is recurring grant
2. The grant is admissible on the basis of total strength of organization-
Ministry, Attached/ Subordinate offices
3. Autonomous Bodies whose budget form part of a Govt. Budget is also
eligible
4. Staff paid from contingencies will not be considered for total strength
5. Grant will be Rs.50/- per head per annum
6. In addition, Rs.25/- per head per annum to match the subscription
collected in previous year.
7. Total strength will be calculated as on 31st March of the previous
financial year or the date on which proposal is mooted.
8. One time grant of Rs.50,000/- may be sanctioned for setting up new
Recreation Club
[GFR215(1)]

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 Register of Grants
A. Register Grants in Form No. GFR 39 should
be maintained by the Sanctioning Authority
B. Every sanction should be entered in this
register under attestation
C. Bill for releasing the grant should be
submitted along with Grant Register

[GFR 212(4)]

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 Register of Gtrants-GFR 39
I. Sl.No.
II. Number and date of Sanction Letter
III. Purpose of Grant
IV. Conditions, if any, attached to Grant
V. Amount sanctioned
VI. Amount of the bill
VII. Whether conditions attached to the grant have been accepted by the grantee without
reservation
VIII. Dated initials of the Sanctioning Authority
IX. Date by which statements lof accounts along with U/c, etc. are required to be furnished by the
Grantee
X. Date by which U/c is required to be furnished by Sanctioning Authority to the Accounts
Officer, as the case may be
XI. Date by which the statements of accounts, etc. are actually received.(In case there has been
delay in the receipt of these statements, the reasons therefor as well as efforts made by the
Sanctioning Authority to expedite submission of such statements may be clearly indicated)
XII. Date of submission of U/c to PAO (in case there has been delay in submission of U/c, the
reasons therefore may be mentioned
XIII. Unspent balance, if any, also indicating whether the unspent balance has been surrendered by
the Grantee Institution/Organization.
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 General principles for GIA for Centrally
Sponsored Schemes(CSS)
1. Implementing Agencies will be State Government/U.T
2. Every CSS should be treated as a Project within time bound
targets for monitoring, mid-term evaluation and detailed
impact studies.
3. The Scheme should be designed in consultation with State/UT
4. Where plan schemes are in operation with similar objectives
targeting the same population, the schemes should be
converged and the ones not yielding results should be
weeded out
5. In order to ensure monitoring and effective control number of
schemes should be limited
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 General principles for GIA for Centrally
Sponsored Schemes(CSS)
6. Central Ministry should evolve proper mechanisms and watch
the effective utilization of grants by the State/UT
7. Ministry should focus attention on the attainment of the
objectives rather than expenditure
8. Release of large funds towards the end of year should be
avoided
9. Evaluation mechanism should be built into the Project providing
for concurrent reviews and applying mid-course correction
10. A post-completion review of every CSS should be undertaken by
the State/UT, highlighting the time & cost overruns, if any, and
suggestions for future schemes.
[GFR 215(2)]
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