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University Grants Commission - Sri Lanka

Finance Circular Letter No. 14/2008

19th December, 2008


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

 

ALLOCATION  OF  THE  GOVERNMENT GRANT  AND  PREPARATION  OF  THE  BUDGET  FOR  2009

  1. The Government  grant for 2009 requested from the Treasury based on the draft estimates of the Universities and Higher Educational Institutions, was as follows:-


    Amounts requested Rs.’000

    (a)     Recurrent Estimates

    Personal Emoluments                                                 9,389,685
    Other Recurrent expenses                                           4,523,513
    13,913,198
    Deduct
    Income from internal sources                                        669,737
    Recurrent  grant requested from the Treasury             13,243,461
    ========

    (b)     Capital Estimates

    Rehabilitation & improvement of Assets                         1,939,719
    Acquisition of Fixed Assets                                           3,103,885
    Information Technology development                              200,000
    Building Construction Projects                                      8,839,314
    Capital grant requested from the Treasury                   14,082,918
    ========

  2. After negotiations held with the Treasury in September 2008, the Treasury agreed to the following allocations for 2009.

    Amounts initially agreed by Treasury
    Rs.’000

    (a)     Recurrent budget

    Personal Emoluments                                             8,000,000
    Other Recurrent expenses                                       3,845,737
    11,845,737
    Deduct
    Income from internal sources                                  669,737
    Recurrent grant approved by the Treasury            11,176,000
    ========

    (b)     Capital budget

    Rehabilitation & Improvement of  Assets                      465,000
    Acquisition of Fixed Assets and IT development            900,000
    Building Construction projects (continuation
    Projects  only)            4,586,000
    Capital grant initially approved by Treasury               5,951,000
    ========

  3. Revision of the Capital grant
  4. (a)     In October 2008, the Treasury notified the Commission that the capital grant has been revised to Rs. 4,100 million as opposed to Rs. 5,951 million, earlier agreed upon.

    (a)     When the votes of the Higher Education Ministry were debated in Parliament in November, 2008,  it  was announced  that  an  extra   capital grant of Rs. 1,050 million (in addition to Rs. 4,100 million) will be  allocated for the following purposes:-

    Rs.’000
    b (i)     For new development projects recommended by the
    Department of  National  Planning                                                   950,000

    b (ii)   Rs. 50 million each for the golden jubilee celebrations of
    the Universities of Kelaniya and Sri Jayawardenapura                 100,000
    1,050,000
    =======

  5. The University Grants Commission, at its meetings held on the 20th November and the 11th December 2008, approved the allocation of the Recurrent and the Capital grants among the Higher Educational Institutions.


  6. Allocation of the Recurrent grant

5 (i)      Allocations for personal emoluments were based on actual expenditure upto August 2008, with a mark up of 3% for annual             salary  increments.

5 (ii)     The  Cost  of  Living  Allowance  has  been  estimated at the current rate of    Rs. 3,500/-  for clerical and allied grades, and at             Rs.  2,875/- for academic and administrative grades, plus further increases of Rs. 375/- payable in January and July 2009.

5 (iii)    Allocations have not been made for filling vacancies or for new cadre positions for 2009, but the Treasury has agreed to provide             additional grants for this purpose, from a special vote in the Treasury.

5 (iv)    Recurrent expenditure (other than personal emoluments) has been allowed a 15% mark up over the actual expenses incurred             during the  period January to August 2008.

5 (v)     Special allocations have been included for additional student intake and for new degree programmes, as detailed in the             Schedule.

5 (vi)    The Open University has been allocated Treasury grants to cover the actual cost of personal emoluments plus an additional Rs.             20 million  to meet part of its non-salary costs.

 

6    Allocation of the Capital grant

6 (i)      Rehabilitation and improvement of Capital Assets

The Treasury has provided approximately 24% of the requirements for rehabilitation  work planned for 2009.

Special attention has been paid to major rehabilitation works already undertaken, in allocating funds under this project.

6 (ii)    Acquisition of Fixed Assets

The funds provided for acquisition of fixed assets, including office furniture and equipment, lab and teaching equipment, Library             books and  sports goods, amount to approximately 25% of the total requirements under this project.

Rs. 100 million out of the total grant has been reserved for IT development.  In allocating the balance funds,  special             consideration was  given to the spending capacity of Institutions, student enrolment in 2009, and strengthening the asset base             of the new universities.

6 (iii)    Construction of Buildings

As explained in paragraph 3(a) above, the total allocation for capital expenditure was revised to Rs. 4,100 million, and accordingly, the total available for construction of buildings was revised to Rs. 2,735 million.

A block allocation is provided to all HEIs, so that the funds may be distributed internally according to the priorities of the on going building projects listed in the Annex.

The special fund of Rs. 950 million allocated for new development projects.  (Pl. see paragraph 3 b(i)  above) will be retained with the UGC, until the priority development projects are identified by the Commission.

7       The funds allocated to your Institution for the year 2009 are shown in the Annex.

8.      Please submit the Budget for 2009, in formats A,B & C, on or before the 9th January 2009, with copies to the Director General,                Department of  National Budget.

Please note that the standard formats should not be changed by the HEIs, for what ever reason.

 

Prof. S.V.D.G. Samaranayake
Chairman

 

Cc:

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

 

Download:

  1. Schedule
  2. Budget 2009 - Formats

 

 

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