Feedback to govt from non-profits, Educational institutions to publish balance sheets

Educational institutions to publish balance sheets Posted by: "Sheetal - Karmayog" info@karmayog.org Thu Jan 19, 2012 12:25 am (PST) Educational institutions to publish balance sheets....Prashant K. Nanda The educational institutes will follow a uniform accounting norm and disclose income and expenditure in a standard format similar to that of companies New Delhi: All educational institutes under the central government and those that get grants or approvals from central education regulators will be directed by the government to publish a balance sheet every year, starting 2013, to bring in more transparency to the sector. The educational institutes will follow a uniform accounting norm and disclose income and expenditure in a standard format similar to that of companies, according to an initiative unveiled on Wednesday. "The aim is to bring transparency and openness in our educational institutes," said Kapil Sibal, minister for human resource development. All Union government institutes, including central universities, Indian Institutes of Technology, Indian Institutes of Management and National Institutes of Technology will have to adhere to the accounting standards. Besides, all universities and colleges under the University Grant Commission, the All India Council for Technical Education and the National Council of Teachers Education will have to follow the norms. Even schools affiliated to the Union government-controlled Central Board of Secondary Education (CBSE) will have to incorporate the accounting norms. The standards and guidelines have been prepared by the Institute of Chartered Accountants of India (Icai). "Donations coming from within or outside India, grants received and expenditures incurred will all be detailed in a uniform format," said G. Ramaswamy, Icai president. India has 572 universities and more than 31,000 colleges, where around 15 million students pursue higher education. In addition, there are at least 10,000 CBSE schools. Sibal said his ministry had accepted the report in principle and "it will come into force from the 2013 academic session". Sibal will discuss the report in the Central Advisory Board of Education, a panel comprising experts, academicians and state education ministers. "I would like to see this adopted by all educational institutes in the country but states need to come on board too," he said. Though central government institutes submit their accounts to the government and the Comptroller and Auditor General of India audits them, private institutes are not obliged to do so. At least 60% of colleges are under private control. The standards will provide clarity on the deployment of funds, Ramaswamy said. "It will lead to decommercialisation and orderly growth of education," he said. The Icai president said that some colleges might be talking about sustainable revenue model but that needs to be spelt out. "Once the accounting is done, you will put it online in a centralized server," he said. "If you are earning revenue then you have to deploy 85% in education every year. This accounting norm will help analyse and come to a conclusion on who is doing what." Jaydeep N. Shah, vice-president of Icai, said the step will take care of concerns that many private institutions engage in malpractices to fleece students. A private university administrator in the National Capital Region attacked the move and said it would discourage investment. "The education malpractice Bill, the education tribunal Bill and even this accounting standard are aimed at one direction-scuttle private investment. If somebody is investing a billion rupees, he would like to get some return," said the official, requesting anonymity. "When government can't provide access to all, why is it then discouraging private participation?" prashant.n@livemint.com URL: http://www.livemint.com/2012/01/18222543/Educational-institutions-to-pu.html?h=B 10. Feedback to govt. from non-profits in pre-budget exercise Posted by: "Sheetal - Karmayog" info@karmayog.org Thu Jan 19, 2012 12:26 am (PST) In the line of fire The overzealous in the government have, in their desire to clean out the non-profit sector of the undesirables-those who misuse the cover to run commercial enterprise-done more harm than good. The finance minister got an earful this week from a group of non-profits as part of the pre-budget exercise. In dispute is an amendment under section 2(15) of the Income-tax Act. While indeed it will discourage misuse, it is the case of the non-profits that even those engaged in genuine work have become collateral damage. It could impact their fund-raising capability and consequently their ability to serve causesin sectors where the government has been found wanting or missing. This would be disastrous, especiallyat a time when the government could well cut some of its "social sector" spending because it is as cash-strapped as it is. URL: http://www.livemint.com/2012/01/18222455/In-the-line-of-fire.html?atype=tpa