Audit flags Rs 8.8 cr unapproved expenditure by Panjab varsity

An audit conducted by the Resident Audit Officer and the Local Fund Examiner of UT, Chandigarh, has flagged unauthorised expenditure of Rs 8.86 crore by Panjab University (PU) under various schemes and projects, citing the absence of approved funding.

Advertisement

The audit report highlighted that PU exceeded the allocated funds by Rs 8,85,65,179, including Rs 1,68,75,151 spent under the University Grants Commission (UGC) Special Grant for Infrastructure Development Fund.

According to General Financial Rule (GFR) 58, subordinate authorities are required to ensure that expenditures remain within the sanctioned allocation. In cases where it is anticipated that expenditure might exceed allocation, additional funds must be secured before incurring the expenditure. However, the university failed to adhere to this provision, as noted in the inspection report for 2023-24.

The audit, conducted between May 21, 2024, and June 14, 2024, examined the financial records of the Registrar’s Office at Panjab Unover under the Comptroller and Auditor General Act of 1971.

The report also emphasised that spending authorities are obligated to maintain a ‘Liability Register’ in Form GFR 6(2). It clarified that no disbursing officer has the authority to approve payments exceeding the funds available.

If a claim risks surpassing the allocated budget, the disbursing officer must seek approval from the relevant administrative authority.

The latter is responsible for arranging additional funds through re-appropriation, supplementary grants or contingency funds before authorising any excess expenditure.

The audit further revealed that PU did not provide any justification for spending beyond the approved grants. Upon reviewing records of various sponsored projects, it was found that the university had incurred expenses amounting to Rs 8,85,65,179 above the sanctioned amount, including Rs 1,68,75,151 from the UGC’s Special Grant for Infrastructure Development.

Despite the lack of allocation from sponsoring agencies, no explanation was offered for utilising university funds for this excessive expenditure.