Section 18 of The Kalakshetra Foundation Act, 1993
The Finance Committee shall--
- (i)scrutinise the annual statement of accounts and budget estimates of the Foundation prepared by the Director and make recommendations to the Governing Board;
- (ii)prescribe the limits of the recurring and non-recurring expenditure of the Foundation for each financial year;
- (iii)review the financial position of the Foundation from time to time and have an internal audit conducted; and
- (iv)perform such other functions as may be prescribed.
Summary
- The Finance Committee looks over the annual accounts and budget estimates that are prepared by the Director.
- After checking the budget, the committee gives its recommendations to the Governing Board.
- The committee sets the strict limits for how much the Foundation can spend on both regular (recurring) and one-off (non-recurring) items each financial year.
- The committee reviews the overall financial health of the Foundation and orders internal audits.
- The committee also performs any other financial duties that are prescribed to it by rules.
Practical examples
FAQ
1. Who actually writes the initial budget for the Foundation?
The Director prepares the budget estimates and annual statement of accounts.
2. Does the Finance Committee have the final say on approving the budget?
No, they only scrutinise it and make recommendations to the Governing Board.
3. Who decides how much money the Foundation is allowed to spend in a year?
The Finance Committee prescribes the limits for recurring and non-recurring expenditure.
4. Can the Finance Committee investigate the Foundation's money records?
Yes, they review the financial position and have internal audits conducted.
Test yourself
Q1.Under Section 18 of The Kalakshetra Foundation Act, 1993, who is responsible for preparing the annual statement of accounts and budget estimates that the Finance Committee scrutinises?
Q2.Under Section 18 of The Kalakshetra Foundation Act, 1993, after scrutinising the budget estimates, what action does the Finance Committee take?
Q3.Under Section 18 of The Kalakshetra Foundation Act, 1993, what power does the Finance Committee have regarding the Foundation's expenditure?
Q4.Under Section 18 of The Kalakshetra Foundation Act, 1993, what specific type of audit is the Finance Committee explicitly tasked with having conducted?
Q5.Under Sections 18 and 14 of The Kalakshetra Foundation Act, 1993, the Finance Committee makes recommendations about the budget. Why doesn't the Finance Committee just approve the final budget itself?