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University Grants Commission - Sri Lanka

Finance Circular Letter No. 8/2009

Finance Circular Letter No. 8/2009


18th December 2009

 


Vice – Chancellors of Universities,
Directors of Institutes,
Rectors of Campuses,

 

VOTE ON ACCOUNT - 2010
ALLOCATION OF RECURRENT AND CAPITAL GRANTS

1. According to the National Budget Circular No.143 dated 10th July 2009, University Grants Commission (UGC) has prepared the Budget Estimates for the year 2010 in consultation with the Universities/HEIs and submitted it to the National Budget Department.

(a). Summary of the Recurrent Budget-2010

Rs. 000
Personal Emoluments 8,656,644
Other Recurrent 5,028,299
13,684,943
Less: Internal Income 1,029,418
Recurrent Grants requested from General Treasury 12,655,525

 

(b) Summary of the Capital Budget -2010

Rs. 000

Rs. 000
Rehabilitation and Improvement of Assets 2,062,904
Acquisition of Fixed Assets 2,620,098
Construction Projects 7,321,835
IT Development and other projects 746,831
Capital Grants requested from General Treasury 12,751,668

2. Additional Funds For the year 2010

In addition to the funds requested as Recurrent and Capital Grants as mentioned in the paragraph 1 above, UGC requested funds to finance the recruitment of new carder for the year 2010 and funds for the establishment of South Asian University (SAU).

Rs. 000
New Carder Requirement 250,000
UGC contribution for the SAU 37,030
Total 287,030

3. Approved Budget - January to April 2010

Pending the approval of the Appropriation Bill for 2010, a resolution for Vote on Account has been passed by the parliament on 05th November 2009 for continuance of existing services. Accordingly National Budget Department has approved the following allocation for January to April, 2010.

(a).Recurrent Budget

Rs. 000
Personal Emoluments 2,743,645
Other Recurrent 1,205,024
3,948,669
Less: Internal Incom 223,336
Total Recurrent Grants 3,725,333

(b) Capital Budget

Rs. 000
Rehabilitation and Improvement 254,622
Acquisition of Fixed Assets 334,885
Construction Projects 1,060,000
Quality and Innovation grant 37,159
Other 37,159
Total Capital Grants 1,716,666

 

4. The University Grants Commission, at its 794th meeting held on 17th December 2009, approved the allocation of Recurrent and Capital grants among the Universities/Higher Educational Institutions.

5. Allocation of Recurrent Grants

( i ) Personal Emoluments

(a) Allocations of salaries, wages, provident fund, pensions fund, ETF, allowances and overtime among the Universities / Higher Educational Institutions have been based on actual expenditure up to 30th September 2009 with a 2.5% markup for the annual increments.

(b) Allocations for the provision of gratuity have been based on gratuity payments estimated by the Universities/Higher Educational Institutions.

(c) Allocations have not been made for the new cadre positions for the period January to April 2010 by the Vote on Account

(ii). Other Recurrent

Funds for the Travelling, Supplies, Maintenance, Contractual Services and Other Recurrent expenditure of the Universities/HEIs are allocated based on previous year expenditure pattern, plus Budget Estimates for the year 2010.

(iii). Mahapola and Bursary Grants

Funds for the payment of Bursary / Mahapola- treasury component have been allocated to the UGC on the basis of estimated Mahapola /Bursary recipients plus exiting scholarship installment.

 

6. Allocation of Capital Grants

Allocation of Capital Block Grant has been based on following key criteria as approved by the University Grants Commission.

a) Action plan prepared by the UGC to achieve the objectives of the Corporate Plan
b) Faculty strength of the universities/HEIs
c) Approved allocation for the year 2009
d) Special requests of the universities/HEIs approved by the UGC
e) Priorities of the construction projects submitted by the Universities/HEIs.

( i ). Rehabilitation and Improvement of Assets

The General Treasury has provided approximately 37 % of the requirements for rehabilitation and improvement of assets.

( ii ). Acquisition of Fixed Assets

The General Treasury has provided approximately 32 % of the requirement for acquisition of fixed assets.


( iii ). Construction Projects

The General Treasury has provided approximately 46 % of the requirement for Construction Projects.

A block grant is provided to all Universities/HEIs, so that funds may be distributed internally considering the needs of the approved projects.

(iv). Quality and Innovation Grants (QIG)

In recent decades demand for public funds are typically intense as government has to provide better school education health care, transportation and agriculture, in addition to investment in Higher Education. Hence the need for introducing innovative financing mechanism to finance the Universities/HEIs is emphasized by the funding agencies such as General Treasury.

Hence UGC has decided to promote performance based funding for the allocation of Capital Grants. Accordingly Rs.30.00 million has been retained by the UGC under a special Quality and Innovation Grant (QIG) for future further allocation.

The Objective of the QIG -2010

The product from a University is expected to serve in any capacity and undertake challenges. In this respect all courses should consist of sufficient input in Soft or Generic Skills such as IT, Communication, English language and Managerial.

All courses in the fields of Humanities and Social Sciences including the General Science Degree courses should incorporate a separate module in Soft Skills. Quality and Innovation grant is to allocate funds on developing proposals pertaining to Soft Skills addressing the issues related to individual Universities and realizing the local conditions and facilities.

7. The funds allocated to your Universities / Institution for the period January to April 2010 is given in the Annex.

8. The above allocation authorizes expenditure only on programmes, project, and expenditure items which have been already sanctioned by the Treasury and has approved the inclusion of provision in the Estimates of year 2009. It follows, therefore, that expenditure on new programmes, and expenditure items must await the passing of the Appropriation Bill for 2010.

9. In terms the section 8 (2) (b) of the Finance Act. No. 38 of 1971 the approval of the Hon Minister in charge of the subject of finance and the concurrence of the Line Minister should be obtained before incurring capital expenditure in excess of Rs.500,000/-

Accordingly you are required to submit a letter of request for the approval of capital expenditure in excess of Rs.500,000/- scheduled for the first four months of year 2010 with your Budget.

10. Please submit the Budget for the period January to April 2010, in formats A, B and C on or before 5th January 2010, with a copy to the Director General, Department of National Budget, General Treasury.

Please note that the standard formats should not be changed by the Universities/HEIs for whatever reason.

 

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

  1. Secretary/MOHE
  2. Chairman/UGC
  3. Vice-Chairman/UGC
  4. Secretary/UGC
  5. Chief Internal Auditor/UGC
  6. Accountant/UGC
  7. Engineer/UGC
  8. Registrars of Universities
  9. Bursars of Universities
  10. SAR/AR of Institutes/Campuses
  11. SAB/AB Institutes/Campuses
  12. Snr. Asst. Accountant/UGC
  13. Auditor General
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