Policy Circulars 2004 - yashada

YASHADA POLICY CIRCULAR
Policy Circular No.
File No.
Subject
FA-Guidelines for allocation of expenditure/2004
P-13/Financial Advisor
Guidelines for allocation of expenditure for financial
transactions in YASHADA.
Effective From 16/08/2004
Circulated for Information
to:
All HoDs, Faculty & Staff of YASHADA
Background
The principles for allocation of expenditure in respect of financial transactions in
YASHADA have been enunciated in the Policy circular / 2004, so as to ensure proper
classification of the expenditure in order to comply with government requirements in
regard to the exhibition of the expenditure in such a way that the appropriate utilisation of
government grants is ensured.
In order to further supplement to this Policy Circular, the detailed guidelines were
assured to be issued, in the above Circular. This is essential for appropriate budgeting,
development of MIS to facilitate the appreciation of financial status of a project /
department / institute of the academy as a cost centre, so that the receipt and expenditure
of such a cost centre is exhibited in entirety (including the share of indirect as also
common expenses). This will help the management as well as the project co-ordinators /
HoDs / Directors of the institutes under YASHADA to ascertain the financial status of
the project / department / institute. For this purpose besides considering Direct Expenses,
all indirect expenses which are incurred by YASHADA as common expenses also need
to be reasonably apportioned to various projects / departments / institutes under
YASHADA. Keeping this in view, the issue of deciding guidelines for allocation of such
expenses incurred as common expenses and are indirectly incurred for various activities
has been under consideration for finalisation.
Guidelines for the allocation of the various expenses
In order to know the financial status of each project / department / institute in entirety,
besides the direct expenditure of a cost centre, proper allocation / apportionment of
various indirect and common expenses incurred by YASHADA is necessary as explained
above. It is therefore, decided to lay down the guidelines for the basis of allocation /
apportionment of such expenditure for each department/project / institute as indicated in
the accompanying statement. In this statement the besides basis of allocation, the
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