Directorate of Budget

1

DIRECTORATE OF BUDGET

KHADI AND VILLAGE INDUSTRIES COMMISSION

IRLA ROAD, VILE PARLE (WEST), MUMBAI-56.

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No.BGT/Guidelines-2011-12/2010-11/1512 Date : 9thOctober,2010

C I R C U L A R

Sub.: Guidelines for Budget discussion with the Directly Aided / Board Aided Institutions and Departmental

Units for the Year 2011-12.

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It has been decided that budget discussion for the year 2011-12 of the Commission’s Directly aided institutions, Board aided institutions and Departmental Units of the KVIC and State/U.T. KVI Boards shall be taken up by the State Level Budget Team (SLBT) with the respective In-charges of the Departmental units / authorized representatives of the Institutions in the premises of the State/Divisional Offices of KVIC and KVIB’s .

2.Composition of SLBT:-

The SLBT will comprise following officials from KVIC and State KVI Board: -

i)State/Divisional Director or In-charge of the office.

ii)CEO/MD/MS of the Board or his/her representative not below the rank of Deputy Director.

iii)FA of the Board or his representative not below the rank of Accounts Officer.

iv)Dy. Director/Asstt. Director in charge of Programme of KVIC field Office.

v)Accounts Officer/Accountant of KVIC field Office.

vi)Manager of DSO KVIC and Project Manager of CSP KVIC wherever these units are available.

vii)Central Office Representative of KVIC wherever necessary/feasible.

viii)Secretary or Chairman of the State Level Federation recognized by KVIC (or) Secretary / Chairman of the Parent body viz. Gandhi Ashram, Lucknow/TNSS, Tirupur /BKGS, Muzaffarpur /KSS, Calicut etc., wherever available.

Note: Chairman/Secretary of Federation or Parent body should only attend the SLBT meeting. They cannot authorize any one to attend on their behalf.

3. Role of State / Divisional Director :-

Upon introduction of MDA from the year 2011-12, the entire focus will be shifted from sales to production. As envisaged by the XI th Plan projections, the production is expected to be increased by 20% in the year 2010-11. Therefore the Institutions are to ensure that they are capable of producing the desirable quantum of production on the basis of infrastructure and manpower available with them. Actual performance of the institutions Production and infrastructure should be considered while fixing the target. The SFC has observed that budget guidelines are not taken seriously and the proposals are often seen to contain inaccurate or incomplete data,

which has not been verified at the field Office. The field Directors should take the primary responsibility in ensuring following while submitting Budget proposals as per format from I to XX :-

1. Accuracy of data relating to previous performance.

1. Accuracy of data relating to infrastructure i.e. Charkha, looms, Spinners & Weavers.

1. Accuracy of data relating to production target.

1. Accuracy of data relating to available fund. Where there are surplus funds, the same should be indicated correctly.

1. Accuracy of data relating to issuance of Bank/Post office pass book, coverage of JBY and Artisan Welfare Trust etc.

1. Form I and II have been incorporated 1sttime in the Budget Guideline to obtain the loan confirmation from the institution. These Forms should be sent to the institution and the form duly filled up along with the AuditedBalance Sheet that should be obtained before budget discussion. The loan confirmation form duly verified by Accountant (IA) of the State Office to be sent to Director (Accounts) along with the Audited Balance Sheet of the Institution.

The field Director should also certify that the budget proposals have been sent after fully complying with the requirement as per budget guidelines. Time Schedule of budget process is as under:

Time Schedule for Budget Submission

The budget discussion should be taken up as per time schedule, giving adequate time to DAIs, BAIs and Departmental Units of KVIC. However the budget discussion by the concerned State/Divisional Officesshould be completed by 25.11.2010.

Budget proposals should be finalized by the SLBT on the basis of Budget Guidelines issued from Central Office. Recommendation of all SLBTs have to be forwarded to the Concerned Programme Directorates of KVIC Central Office.

In order to facilitate processing of budget and subsequent issuing of budgetary allocation, in an expeditious manner in the Central Office of KVIC, the details of agreed budget should be uploaded on computers at field office itself. The relevant soft copies (CDs) as well as hard copies separately for Khadi, V.I. and other programmes budget proposals required to be sent / handed over to the respective Programme / Industry Directorates at Central Office for reference and onward processing for submission before SFCs. Entire budget guideline including forms etc. have been uploaded in the KVIC website, may be downloaded. Please note that no budget proposal will be accepted if not sent in soft form (CD).

The expenditure to be incurred for conducting budget discussion may be met out of contingency provision available with respective State/Divisional Offices by observing strict economy measures.

Unlike the past, SLBT (State Level Budget Team) may be authorized to function effectively in a regular manner throughout the year. Accordingly, SLBT, besides recommending budgetary target allocation of a financial year, for the respective State/Division, shall meet at least once in every quarter, in approving the supplementary budget proposals, reviewing the progress and utilization of Budgetary sanction and examining the Budgetary Control Mechanism.

No Budget proposal will be accepted beyond the deadline as mentioned in Budget guidelines and Directors/Incharge Officers shall be held responsible for delay.

State/Divisional Director must ensure the receipt of Budgetary Proposals at the level of respective Khadi/V.I. Directorates in the Central Office, once it is cleared in SLBT. The Purpose is to place such proposals in the SFC by Khadi as well as by V.I. Directorates on time and complete the whole exercise in this financial year itself.

Certain instances have come to light where Budget sanctioned for Khadi Woollen activities have been diverted to V.I. activities or for purchase of some infrastructures not admissible as per prevailing guidelines. A circular to curb such activities has been issued by the Directorate of KPM. It is again emphasized that Budget sanctioned by SLBT, should conform to the existing admissible activities of the institutions only. If needed, physical verification of the Institution regarding infrastructure available and activities actually being carried out be also ensured before the budget proposal is finally recommended by SLBT.

It is to be ensured that proper assessment of the need of SC/ST/Minority/ Women institutions as well as the institution of N.E. region is done by SLBT and the budget is approved accordingly. This is to be given to priority and success of budget exercises will be evaluatedon this aspect also.

State Director/Divisional Director should ensure sending Budget proposal as per Budget Guideline within the time schedule without fail.

The tendency of approving the Budget of Rs.1.00 lakh or so to new institutions is not correct.Viability of the activities being taken up must be kept in view, while considering such proposal. It has to be well considered competent exercise at SLBT level.

Top Sheet :-

A Top-sheet has been introduced to be filled up giving details of the infrastructure available with the Institutions in terms of Spinners, Weavers, Charkhas, and Looms as well as based on Production, Employment, etc.

The Top-sheet has to be signed and certified by the State/Divisional Directors certifying that the targeted performance agreed by the Institution is achievable taking into account the available funds, infrastructure and artisans.

The Top-sheet is important document and the same should be sent in hard copy as well as in soft copy to concerned Programme Directors without fail. Budget Proposal without “Top-Sheet” will not be entertained for the purpose of sanction.

4.Role of Zonal Deputy Chief Executive Officer:-

Institutions, who could not attend the Budget meeting within the specified time limit,State/Divisional Directors may recommend the budget proposal with the approval of Dy. C.E.O. The Budget proposal may be recommended based on available infrastructure in working condition, sales outlets, artisans etc… and last approved target by SFC (K) in the prescribed proforma and forward the same to the concerned Industry/Programme Director in the Central Office by 17.01.2011. This will reduce the scope of any supplementary Budget discussion.

Zonal Dy.CEOs should also ensure monitoring and reviewing their Budget exercise for the year 2011-12 in their Zones so that Budget exercise is completed properly as per Budget Guideline and time schedule.

5.Role of Programme Directors:-

The Programme Directorates in Central Office should verify and examine the Budget Proposals received from the Field in light of the Budget Guidelines and only after fulfillment of Budget Guidelines, same should be recommended for approval to Directorate of Budget. There should be no delay and proper examination should be done at Programme Directorate level.

On receipt of budget proposals, Budget Directorate shall process the same as per budget guidelines and shall forward to the Directorate of Finance for further scrutiny andfinancial concurrence. Director (Finance) will in turn send the complete proposal to concerned Programme Director to place it before S.F.C. for sanction with the approval of F.A., C.E.O. and Chairperson.

Liability towards MDA, as applicable will be restricted to the Budget approved by SFC only and not on SLBT recommendations.

The above Guidelines for Budget for 2011-12 should be strictly complied with and it should be ensured that the Time Schedule fixed for the budget exercise is kept in mind while conducting the budget exercises by the State/Divisional Directors.

Zonal Dy. CEOs are directed to monitor the budget exercise vigorously and ensure submission of the proposals in complete form as per the Budget Guidelines and as per the Time Schedule indicated. Failure to comply with the Budget Guidelines including Time Schedule will be viewed seriously.

Encl.:- As above.

Sd/-

CHIEF EXECUTIVE OFFICER

To

1. All State/Divisional Directors — They are directed to initiate

immediate action for the

proposed budget discussion.

1. All the Industry/Programme They are directed to advise the

Directors Departmental Units under their

Administrative control to get in

touch with the State/Divisional

Offices and to ensure participation

in Budget discussion.

3. CEO of all State/UT They are requested to advise their Aided

KVI Boards Institutions and Departmental Units to initiate necessary action for attending budget discussion with all required details as per date, time and venue to be informed by the KVI State/Divisional Office.

4. All Zonal Dy. CEOs. To monitor the budget schedule and exercise and ensure completion as per prescribed schedule.

Copy to:-

1. Director (Khadi Co-ordination)

2. Director (V.I. Co-ordination)

3. Director (Audit)

4. Director (Administration)

5. Director (Accounts)

6. Director (Finance)

7. Director (I.T.)

8. Director (E & S)

9. Director (Publicity)

10. Director (Marketing)

11. Director (Ec.R)

12. Director (State Board Cell)

13. Director (HRD).