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University Grants Commission - Sri Lanka

Finance Circular Letter No: 05/2006

13th June 2006.

Vice- Chancellors of Universities,
Directors of Institutes,
Rectors of Campuses.

 

BUDGET ESTIMATES FOR 2007

 

Your attention is invited to section 15 (ii) of the Universities Act No. 16 of 1978, whereby the University Grants Commission is empowered to prepare triennial budgets of the Higher Educational Institutions, in consultation with the governing authorities of the HEIs. Accordingly , you are kindly requested to submit your Estimates for the year 2007 for Recurrent and Capital Expenditure, in the formats annexed to this circular.

1. Recurrent Estimates

1.1 Personal Emoluments

1.1.1 Estimated salaries & all allowances for the year 2007 should be based on the salaries & allowances paid at present, after allowing for annual increments, pending the implementation of the new salary structures.

1.1.2 Estimates for Academic staff salaries & allowances for the existing staff only, should be shown in schedule 1.

1.1.3 Estimates for all Non-Academic staff ( Administrative & Non, Administrative) salaries & allowances for the existing staff only, should be shown in schedule 2.

1.1.4 The totals of schedules 1 and 2 should be transferred to item 1 (Personal Emoluments) in Annex A.

1.1.5 Cost of salaries and allowances for filling of vacancies , of already approved cadre provisions , should be shown in schedule 3. The total of schedule 3 should be transferred to item 2 (Filling of Vacancies) in Annex A.

1.1.6 The cost of living allowance should be provided at the current rate of Rs.1000/-, unless a revision is announced by the Government prior to the submission of the estimates. Further guidelines will be issued if a revision of the allowance is announced.

1.2 Other Expenses

The estimates for the following items of expenditure should be shown in items 3-7 respectively in Annex A.
·Traveling
·
Supplies
·
Maintenance
·
Contractual Services
·
Other Recurrent expenses

The estimates of expenditure should be realistic figures based on the academic programmes and activities planned for 2007, taking into consideration the total student enrolment including the additional intake of students from the 2005/2006 batch.

2. Internal Income
Internal Income to be earned from Interest, Tuition Fees, Examination Fees etc: should be estimated at a realistic level based on the academic programmes, student enrolment in 2007, and other activities planned for 2007, and shown in Annex B.

3. Grants, Donations, Endowments

Grants, Donations and Endowments receivable in 2007, from any source other than through the UGC, should be reported in Annex C.

4. Comparative Figures

It is essential that accurate comparative figures for 2005 and 2006 are shown in the relevant columns of Annexes A,B and schedules 1 and 2.

5. Capital Estimates

5.1 Rehabilitation & Improvements
Estimates for Rehabilitation & Improvements to capital assets during the year 2007, should be shown in Annex D. The Commission will not be in a position to support the estimates for rehabilitation & improvement of assets, unless the nature of the rehabilitation work is clearly identified.

5.2 Acquisition of Fixed Assets.
Estimated expenditure for acquisition of Fixed Assets should be shown in Annex E.It is essential to give a brief description of the programmes which require furniture , office, laboratory & teaching equipment, in order to be able to justify the expenditure , during negotiations with the Treasury.

5.3 Estimates for Continuation Construction Projects
Construction projects for which funds have been allocated upto 2006 should be listed as continuation projects. Budgetary provisions should be sought for these projects, only if construction work will continue in 2007, or if the payment of bills will fall due in 2007. However, budgetary provisions should not be sought in excess of the spending capacity of the HEI. Estimates for continuation projects should be shown in Annex F. Funding of projects will be rejected unless complete information is provided vide Annex F.

5.4 Estimates for New Construction Projects

Only new construction projects which have been recommended by the Department of National Planning and approved by the Cabinet of Ministers will be accommodated for funding in 2007. Budgetary provisions should be sought only for the value of payments to be made in 2007, and not for the full TEC ( Total Estimated Cost). Estimates for New construction projects should be shown in Annex G.

6. General
The Estimates for 2007 should be prepared strictly in accordance with the Annexes and Schedules enclosed with this circular, and should be submitted to reach the Un
iversity Grants Commission on or before the 26th June 2006, both in hard and soft copies.

This circular together with all Annexes and schedules can be downloaded from the UGC Website at www.ugc.ac.lk

The UGC will not accommodate requests for extra – budgetary requirements from time to time, arising as a result of inadequate forward planning by the HEIs. Therefore all HEIs are advised to plan their activities for 2007 well in advance, (eg. award of construction contracts, procurement of equipment, furniture & library material, major rehabilitation projects etc.) and to estimate the budgetary requirements according to the planned activities.


Prof. S.V.D.G. Samaranayake

Chairman

Cc:

1. Chairman/UGC
2. Vice-Chairman/UGC
3. Secretary/UGC
4. Financial Controller
5. Director/IDD/UGC
6. Registrars of Universities
7. Bursars of Universities
8. SAR/AR/of Institutes/Campuses
9. SAB/AB of institutes/Campuses
10. Accountant/UGC
11. Chief Internal Auditor/UGC
12. Snr.Asst.Accountant/UGC
13. Snr.Asst.Secretary/Supplies & Administration/UGC
14. Auditor General
15. Govt. Audit Superintendent /UGC
16. Govt. Audit Superintendent/Universities

Download all schedules and annexes here

 

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