FINANCIAL

MANAGEMENT IN ICAR
SYSTEM

Sri V.S.Subramanian
Finance & Accounts Officer
(Retd)
NAARM, HYDERABAD
 FINANCIAL
MANAGEMENT IN ICAR
SYSTEM
ICAR follows Govt. of India
Rules and Regulations mutatis-
mutandis

No expenditure can be
incurred without sanction of
the Competent Authority and
availability of funds
1
AUTHORITIES OF ICAR
The Indian Council of Agricultural Research is a Society
registered under the Societies Registration Act, 1860 and
financed by the Govt. of India
According to Rule 13 of ICAR Rules and Bye-laws, the following
are the authorities and officers of the Society.
- President
- Vice President
- Governing Body
- Director General
- Secretary
- Chairman, ASRB
- Director, DARE
- such other officers / bodies / committees or panels as may /
shall be constituted or appointed by the GOI, the society or
the Governing Body
Standing Finance Committee is an important committee
mentioned under the above.

2
 ICAR Organizational
Structure
Established in 1922 as Imperial Council of
Agricultural Research renamed after
independence as Indian Council of Agricultural
Research (ICAR)
ICAR comprises:
- Five multi-disciplinary National Institutes (four
of them are deemed to be universities)
 50 Central Research Institutes
 30 National Research Centres
 11 Project Directorates
 8 Zonal Co-ordinating Units
 89 All India Co-ordinated Research Project Units
 578 Krishi Vignan Kendras
 ICAR employees nearly 40,000 personnel in
scientific, technical, administrative, finance and
supporting categories 3
 Funding Source
Funds of the Society consists

Income under APCESS Act

Lumpsum under recurring grants
made by GOI
Income from investments
Funds received from International
Agencies/Govt. Departments for
carrying out research
4
 Finance - Structure
DG, ICAR is responsible for funds of the
Society as Principal Executive Officer of
the Society
Assisted at Headquarters by DDGs,
Secretary and FA
FA is responsible for budget of the ICAR,
control of its finance, proper
maintenance of accounts and internal
audit
FA is assisted by Director(Fin) and
Deputy Directors(Fin) at the
Headquarters
Director(Fin) functions under the
guidance and supervision of FA 5
 Role of Finance & Accounts
Officers
CFAO, SFAO, FAO and AFAO function as
Head of finance wing at the institutes.
Though they remain under direct
administrative control of the Director of
the institute but function under the
technical control of Director(Finance)
Responsible for scrutinizing the budget
and all proposals involving financial
implications
Preparation of cheques for all payments
and withdrawal from the bank account,
maintenance of main cash book
Maintenance of account
Internal audit 6
 Role of Finance & Accounts
Officers

Advise to the Director of Institute

in all financial matters
Watch adjustments / clearance of
advances
Deal with the audit report of the
statutory auditors
Furnish the prescribed reports to
the Director(Fin)
FAOs are guided by audit principles
and instructions contained in ICAR
Audit Manual
7
Delegation of Powers
President, ICAR exercises powers as may
be vested by the Society
Vice-President exercises the powers
delegated by the president
Governing Body exercises all executive
and financial powers. It may delegate
such powers to DG, Secretary, Directors,
and any other officers as it may consider
necessary and proper
DG enjoys same powers as a Secretary to
the GOI
DDGs exercise powers as delegated to
them with the approval of GB

9
Delegation of Powers
Directors/Project Directors exercise all
powers of HoD for the purpose of various
rules and regulations of GOI. In addition,
they exercise the powers specifically
delegated by the GB.
Powers also stand delegated to
HoDs/JDs/Project Co-ordinators, Zonal Co-
ordinators and Management Committees
Powers are required to be exercised
under Delegation of Financial Power
Rules, GFR, and other executive
instructions
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Rules and Procedures
ICAR is governed by its Rules and Bye-
laws
Service and financial rules issued by GOI
applied mutatis-mutandis to ICAR
For scientific and technical categories
ICAR frames its own rules under ARS
rules and TS rules respectively
For purchase receipt and issue of stores,
GOI rules are followed. In addition,
orders/instructions issued by Council
from time to time with regard to store
purchase procedure are also followed
In ICAR, GOI accounting and audit
procedure is followed 11
Audit & Accounts Set-up
at ICAR Headquarters
Director(finance) supervises audit and
accounts set up at ICAR headquarters
A&A units at headquarters of Council:
Pension – authorization of pension and
retirement benefits
Budget – sanction of budget proposals and
remittance of funds to
institutes
Internal finance – financial concurrence
Inspection Unit – deal with audit report on
consolidated accounts of
Council and inspection of
research institutes 12
Audit & Accounts Set-up
at ICAR Headquarters
Grants-in-aid I & II - release of grants in aid sanctioned
by the Council
Co-ordination (A&A) – interpretation of rules and policy
decision
Audit-I – Audit and payment of contingent bills
Audit-II – Audit and payment of establishment bills and
personal claims
Audit-III – Maintenance of P.F. accounts at ICAR hqrs and
consolidation of P.F. accounts of institutes at ICAR
Accounts-I – Opening of current bank accounts for ICAR
hqrs/institutes and preparation of cheques
Accounts-II – preparation / compilation of monthly and
annual accounts of ICAR hqrs and consolidation of
accounts of council 13
 Budgetary Process
Budget estimates are prepared as per Bye-laws of the
Society
Estimates for expenditure to be met out of the GOI
grant for each year exhibiting expenditure on research
under the following major heads
Crop Science; Horticulture; Agrl. Extension; Agrl.
Education; Economics Statistics Management, Agrl.
Engg. ICAR Hqrs administration including ASRB; Soil and
Water Conservation; Animal Husbandry and Fisheries
Estimate for Plan and Non-Plan are prepared separately
Budget estimates are placed before the SFC and with
recommendation of SFC to the GB
After approval of GB, allocation of various constituent
units are communicated to them by FA

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 Budgetary Process
All units submit budgetary requirement to ICAR
hqrs under the following sub-heads:
II. Establishment charges including LS&PC
III. Wages to Employees granted temporary Status
IV. OTA
V. TA
VI. Other Charges
VII. Works
VIII. Other items
Directors are required to utilize funds as per
instructions and budgetary allocation
Directors have been declared as Head of the
Deptt

15
 Funds Management
Council’s funds are kept in SBI and its
subsidiaries and / scheduled / nationalized banks
as authorized by DG or Secretary, ICAR
At Council’s Hqrs four bank a/cs are operated for
each of the following:
1. ICAR General Account – one each for Plan and
Non- Plan (Govt. grant)
2. APCESS Account
3. ICAR Provident Fund Account
4. ICAR draws funds in 3-4 instalments from
PAO(Agrl.) thru DARE on the basis of
budgetary allocation on the instructions
issued by GOI/MOF from time to time Council
in turn remit funds to the constituent units
periodically
16
 Funds Management
Idle funds are kept in Short term deposits and interest earned
there in taken as receipt of the Council. Interest so earned is
exempted from payment of Income Tax
At the end of the financial year, some balance is kept to meet
expenditure on salary for march payable in April and also to
meet urgent needs of Council and its units
FAOs work as Treasury cum Accounts Officer and they
maintain bank cash book and operate bank account
The bank account is operated jointly by the FAO in the
capacity of first signatory and Admn. Officer / Director as
second signatory
FAOs settle the monetary transactions by cheques / draft. All
local payments are settled by cheques and outstation by
drafts (bank provide at par facility on purchase of draft)
FAOs render monthly account to the Council in the prescribed
form
The accounts of the Council are audited by CAG through
PDA(SD) and after audit, the audited accounts are submitted
to GB/Parliament as per procedure
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 Audit
Audit system in ICAR can be divided into two
parts:
(a) Post audit by statutory auditors – the audit of
the Council’s hqrs and its institutes are
conducted by C&AG thru PDA(SD) such audit
reports are presented to the GB and the
Parliament
(b) pre audit by F&AO of ICAR – F&AOs are
required to pre audit all payments w.r.f. to
sanction, budgetary provision, rules, regulations
and instructions
Financial proposals at the instt. require
concurrence of F&AO
Bills are passed by DDO and submitted FAO for
payment
Rules, regulations and audit checks vary from 18