Finance Policy

Introduction

Sacred Heart College (Autonomous), Chalakudy, recognizes the critical role of financial management in supporting its mission to provide quality education and holistic development opportunities for its students. This Finance Policy aims to establish clear guidelines for the mobilization, utilization, and management of financial resources to ensure transparency, accountability, and effective fiscal control across all college operations.

Objectives

• Effective Financial Management: To manage financial resources efficiently and effectively to support the college’s strategic objectives.
• Guidelines for Resource Mobilization: To establish procedures for mobilizing funds through various sources including fees, grants, donations, sponsorships, and other revenue-generating activities.
• Compliance with Legal Requirements: To ensure adherence to all relevant legal and regulatory requirements governing financial practices in educational institutions.
• Standard Accounting Procedures: To maintain high standards of accounting procedures that ensure accuracy, transparency, and reliability of financial reporting.
• Financial Transparency: To promote transparency in financial operations through regular reporting and disclosure.

Scope

This policy applies to all financial transactions and activities undertaken by Sacred Heart College (Autonomous), Chalakudy, including but not limited to:

• Mobilization of financial resources through student fees, government grants, consultancy, alumni contributions, sponsorships, and interest income.
• Allocation and utilization of funds for infrastructure development, academic enhancements, faculty development, student support, research activities, and operational expenses.
• Compliance with statutory requirements, auditing standards, and financial reporting norms applicable to educational institutions.

Resource Mobilization Plan

Cash Inflow:

• Student Fees: The primary source of revenue includes tuition fees from self-financing courses, examination fees, and other fees prescribed by the college.
• Government and Non-Government Grants: Funds received from agencies like UGC, DST and ICSSR for research projects, infrastructure development, and academic programs, Development Funds of MP/MLA.
• Consultancy and Alumni Funding: Revenue generated through consultancy services provided by the faculty and contributions received from alumni for specific initiatives.
• Sponsorship Grants: Financial support obtained from corporate entities, philanthropists, and organizations for sponsoring college events, academic programs, and infrastructure projects.
• Interest Income: Revenue generated from the interest on investments made by the college from surplus funds.

Cash Outflow:

• Overheads and Administrative Expenses: Operational costs including salaries, utilities, maintenance, and administrative expenses necessary for day-to-day functioning of the college.
• Infrastructure Augmentation and Maintenance: Funds allocated for upgrading existing infrastructure, construction of new facilities, and maintenance of campus buildings and amenities.
• Academic and Research Expenses: Allocation for conducting seminars, workshops, conferences, and other academic activities aimed at enhancing learning outcomes and research capabilities.
• Faculty and Staff Development: Financial support provided for faculty development programs, workshops, and training sessions aimed at upgrading skills and knowledge.
• Student Support and Scholarships: Funds allocated for scholarships, fellowships, and financial aid to support deserving students from economically disadvantaged backgrounds.
• Cultural and Sports Activities: Budget for organizing cultural events, sports tournaments, and extracurricular activities to promote holistic development among students.
• Purchase of Books, Equipment, and Learning Resources: Allocation for procurement of library books, laboratory equipment, and other learning resources necessary for academic excellence.

Monitoring of Policy Implementation

The Principal and Finance Officer are responsible for implementing and monitoring the Resource Mobilization Plan. Key responsibilities include:

• Daily Payment Approvals: The Finance Officer reviews and approves daily payments to ensure compliance with budgetary allocations and financial regulations.
• Budget Finalization: The Governing Body finalizes the annual budget based on cash flow projections, expected revenues, and planned expenditures.
• Financial Control: Regular monitoring of financial performance against budgetary targets to identify any deviations and take corrective actions as necessary.
• Major Rectifications: Any significant amendments to the budget or financial plan require approval from the Governing Body to ensure financial stability and sustainability.

Financial Sources of the Institution

Sacred Heart College (Autonomous), Chalakudy, receives financial support from diverse sources including:

• Tuition Fees: Revenue generated from student fees paid for academic courses, examinations, and other services provided by the college.
• Government Grants: Funds allocated by government bodies such as UGC, DST, and state educational departments, Development Funds of MP/MLA for specific projects and initiatives.
• Project Overhead Charges: Financial support received from research grants for conducting major and minor research projects from government and non-government agencies.
• Interest Income: Revenue earned from investments made by the college from surplus funds in fixed deposits and other interest-bearing instruments.
• Alumni Endowments: Contributions received from alumni members to create endowment funds used for scholarships, infrastructure development, and academic programs.
• Sponsorship and Grants: Financial assistance from corporate sponsors, philanthropic organizations, and individuals for sponsoring college events, academic activities, and infrastructure projects.
• Consultancy Fees: Revenue generated through consultancy services provided by faculty members to external organizations and industry partners.
• Hostel Fees: Income generated from students residing in college hostels for accommodation and related facilities.

Optimum Utilization of Funds

Sacred Heart College (Autonomous), Chalakudy, ensures optimal utilization of funds by allocating resources as follows:

• Infrastructure Development: Funds allocated for construction, renovation, and maintenance of college buildings, classrooms, laboratories, and other infrastructure facilities.
• Academic Enhancements: Allocation for implementing innovative teaching-learning practices, upgrading technology infrastructure, and introducing new educational programs.
• Faculty Development: Financial support provided for faculty members to attend national and international conferences, workshops, and seminars to enhance their teaching and research skills.
• Student Support: Funds allocated for scholarships, financial aid, and other support services to assist students from economically disadvantaged backgrounds and promote inclusive education.
• Cultural and Sports Activities: Budget for organizing cultural events, sports tournaments, and extracurricular activities to foster holistic development among students.
• Learning Resources: Allocation for the purchase of books, journals, laboratory equipment, and digital resources necessary for academic and research purposes.
• Research Initiatives: Financial support for initiating and conducting research projects, collaborative studies, and interdisciplinary research activities aimed at contributing to knowledge creation and academic excellence.

Auditing of Funds

The college adheres to stringent auditing procedures to ensure transparency and accountability in financial operations:

• Statutory Audit:
  • Annual audit of the college’s financial statements conducted by external auditors appointed by the Governing Body to verify compliance with accounting standards and legal requirements.
  • Periodic statutory audit conducted by the Department of Collegiate Education and Accountant General (Kerala).
• Project Fund Audit: Separate audit of project-specific funds conducted within two months from the conclusion of the project period to ensure proper utilization and reporting of project finances.
• Utilization Certificate: Issuance of utilization certificates by auditors for all funds received from government agencies and external donors to confirm proper utilization as per the terms and conditions specified.
• Internal Audit: Annual internal audit of college accounts conducted by the Finance Committee to review financial transactions, ensure accuracy of records, and identify any discrepancies or irregularities.

Accounting Framework

Sacred Heart College (Autonomous), Chalakudy, adheres to a robust accounting framework governed by the following principles:

• Financial Statements: Preparation and presentation of annual financial statements including income statements, balance sheets, and cash flow statements to provide a comprehensive overview of the college’s financial position.
• Income and Expense Recognition: Adherence to recognized accounting standards for the proper recognition, measurement, and disclosure of income, expenses, assets, and liabilities in the financial statements.
• Presentation and Disclosure: Transparency in financial reporting through clear presentation and disclosure of financial information to stakeholders including students, faculty, staff, donors, and regulatory authorities.

Types of Funds

The funds received by Sacred Heart College (Autonomous), Chalakudy, are classified into two main categories:

• Restricted Funds: Funds received with specific restrictions on their use imposed by donors or funding agencies. These funds are utilized strictly in accordance with the conditions specified by the donors or regulatory authorities.
• Unrestricted Funds: Funds received without any specific restrictions on their usage. These funds may include corpus funds, designated funds, and general funds that can be allocated based on the college’s priorities and financial requirements.

Fund Mobilization

Sacred Heart College (Autonomous), Chalakudy, mobilizes funds through approved and authorized means to ensure transparency and accountability in financial transactions:

• Approved Sources: Receipt of funds only from authorized government agencies, corporate sponsors, philanthropic organizations, and individual donors in compliance with legal and regulatory guidelines.
• Documentation and Reporting: Proper documentation of the source of income and utilization of funds for implementing projects and conducting events on campus.
• Compliance: Adherence to mutually agreed terms and conditions between the fund granting agency and the college to maintain ethical standards throughout the transactional period.

Account Books Maintained

The college maintains comprehensive account books and registers to ensure accurate recording and reporting of financial transactions:

• Receipt Book: Records all incoming cash receipts from fees, grants, donations, and other sources.
• Journal: Records financial transactions in chronological order including payments, receipts, and adjustments.
• Cash Book: Maintains records of cash transactions including cash receipts and disbursements.
• Ledger: Provides a summary of all accounts and balances to facilitate financial statement preparation and analysis.
• Registers and Records: Documents contributions received, project implementation details, grant utilization, sales and purchase transactions, inventory records, and minutes of management committee meetings.
• Statutory Registers: All other registers insisted by the Government and the Department of Collegiate Education.

Conclusion

In conclusion, Sacred Heart College (Autonomous), Chalakudy, is committed to maintaining the highest standards of financial management through this comprehensive Finance Policy. By adhering to the principles of transparency, accountability, and effective utilization of financial resources, the college aims to support its academic mission, promote student development, and foster a conducive learning environment for all stakeholders. This policy will be reviewed periodically to ensure alignment with evolving regulatory requirements and institutional priorities, thereby enhancing the college’s financial sustainability and operational efficiency.