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INTERNATIONAL ISLAMIC UNIVERSITY

FINANCIAL RULES, 1992


(As amended upto February 2012)

(Approved by the Board of Governors in its 23 rd meeting held on 22-10-1992


notified vide No. ADT/MISC-4.1(12)/92 dated 28-10-1992)

CHAPTER-1

1) INTRODUCTORY

In exercise of the powers conferred under Section 30 of the International


Islamic University Ordinance XXX of 1985, the Board of Governors has
approved the financial rules of the University.

Short Title, Commencement and Application

(i) These rules shall be called the International Islamic University


Financial Rules, 1992.

(ii) They shall come into force at once.


(iii) They shall be applicable to the University and its Constituent
Units.

2) DEFINITIONS
In these rules unless there is any thing repugnant to the subject or context;

(a) "Adviser Finance"/Director Finance" means the Advisor


Finance/Director Finance of the University.

(b) "Audit Department" means the Audit Department of the University.

(c) "Authority" means an authority of the University as defined and


specified under Section 2 (c) of the International Islamic University
Ordinance, 1985.

(d) "Bank" means the bank approved by the President.


(e) "Board of Trustees" means the Board of Trustees of the University.
(f) "Board" means the Board of Governors of the University.

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(g) "Competent Authority" means the Officer to whom relevant powers
have been delegated by the Ordinance, 1985, the Statutes, 2006 (as
amended upto December, 2009) or delegated by the Board of
Trustees, Board of Governors or the President.

(h) "Controlling Officer" means the President or other Officer (s) of the
University and its Constituent Units who is so declared by the
President and delegated with the powers of sanctioning and
controlling the expenditure and/or collection of
revenue/grants/donations. The President shall be his own controlling
officer for the purposes of traveling allowance.

(i) "Drawing & Disbursing Officer" (DDO) means an authorized officer


(BPS-16 or above) to sign bills and orders and draw cheques for
disbursement.

(j) "Finance & Planning Committee" means the Finance & Planning
Committee of the University.

(k) "Government" means the Federal Government of Pakistan.


(l) "Month" means a calendar month.
(m) “Ordinance" means International Islamic University Ordinance,
1985.
(n) "President" means the President of the University.
(o) "Statutes" means International Islamic University Statutes, 2006 (as
amended upto December, 2009).
(p) "Trust" means the International Islamic University Trust established
in Pakistan or abroad to provide financial support to the University.
(q) "University" means the International Islamic University of
Islamabad.
(r) "Vice-President" means the Vice-President of the University.
(s) "Year" means the Financial Year beginning on the 1 st day of July and
ending on the 30th day of the June following.

3. Any other expressions carry the same meaning as assigned to them


under section 2 of the International Islamic University Ordinance,
1985.

2
CHAPTER-II

FINANCIAL PROCEDURE/MANAGEMENT UNDER THE


ORDINANCE/STATUTES

4) The financial procedure/management under the International Islamic


University Ordinance, 1985 and its Statutes, 2006 is as under:

University Fund (Section 31 Chapter-VI of the IIU Ordinance-1985)

1) There shall be a University fund to which shall be credited income


from any source including transfer from the Trust, fees, donations,
bequests, endowments, contributions and grants.

2) The Board of Governors may establish special funds for specific


institutions or projects.

Payments (Section 32 Chapter-VI of the IIU Ordinance-1985)

All payments from the University fund shall be made in accordance with the
approved budget or funds for services rendered to, or supplies received by the
University.

Accounts (Section 33 Chapter-VI of the IIU Ordinance-1985)

The accounts of University shall be maintained and audited once a year under
financial rules to be prescribed by the Board of Governors in consultation with
the Finance and Planning Committee.

Audit (Section 34 Chapter-VI of the IIU Ordinance-1985)

All payments shall be made after pre-audit by a resident Audit Officer to be


appointed by the Board of Governors.

Annual Statement of Accounts (Section 35 Chapter VI of the IIU Ordinance-


1985)

The President shall submit each year a statement of expenditure and receipts of
the University, duly audited by an external auditor appointed by the Board of
Governors, with his comments for consideration by the Board of Governors.

5) In furtherance of the above objectives, the following Statutes have been


prescribed by the Board of Trustees under Section 28 of International Islamic
University Ordinance, 1985.

3
Budget and Accounts (Section 14 of the IIU Statutes-2006 as amended upto
December, 2009)
1
1 There shall be a common Fund of the University to be operated
under the approved financial rules, budgetary and accounting
procedures;

2 Special grants, donations, contributions or any other receipts


received by an Institute, Academy or other unit will be utilized by
the same Institute/Academy or Unit without any cut or
appropriation for any other use;

3 The statement of accounts and the Annual and Revised Estimates of


the University shall be prepared separately showing the income and
expenditure for the University and such other units, as the President
may determine suitable for this purpose;

4 The Finance & Planning Committee shall review and recommend


the annual and revised budget estimates and submit the same for the
approval of the Board of Governors;

5 The President may delegate powers to Deans, Directors for incurring


expenditure from the approved budget of
Faculties/Institutes/Academies or other Units.

Audit (Section 15 of the IIU Statutes-2006 as amended upto December-2009)


2
1. There shall be an Internal Audit of the University;

2. All payments in the University shall be made after pre-audit by the


Internal Audit;

3. The President, IIU shall have the power to settle any pre-audit
observation after taking into account all the facts and rules and
regulations applicable to the observations;

4. The Internal Audit shall annually carry out an internal audit and
check all the accounts and physical verification of assets, stores and
1
The IIU Statutes-1987 regarding Budget and Accounts was replaced by the IIU Statutes-2006
with the approval of the Board of Trustees on December 27, 2006.

2
The IIU Statutes-1987 regarding Audit was replaced by the IIU Statutes-2006 with the approval
of the Board of Trustees on December 27, 2006.

4
properties of the University and prepare a report for the review of
the President;

5. The accounts of the University shall be audited by an external


auditor to be appointed by the Board of Governors in addition to the
normal Government audit. The report of the external auditor as well
as government audit shall be placed before the Board of Governors
for its consideration.

Special Reserve Fund (Section 16 of the IIU Statutes-2006 as amended upto


December-2009)
1
1 Savings in the annual budget of University and its constituent
Institutes/Academies shall be transferred to a special reserve fund.

2 President shall be empowered to allocate resources from this fund


for furtherance of the objectives and functions of University and its
constituent units in consultation with Finance & Planning
Committee. All such reallocations shall be reported to the Board of
Governors.

3 President may institute and prescribe budgetary controls in


University and its constituent units in the last quarter of a financial
year in order to avoid the possibility of wasteful expenditures.

Special Grants, Donations, Endowments (Section 17 of the IIU Statutes-2006 as


amended upto December-2009)

Special grants and donations, endowments etc. received for specific purposes
shall be credited to University Fund but utilized only for the purposes (s) for
which the funds were made available.

CHAPTER-III
STANDARDS OF FINANCIAL PROPRIETY

1
The IIU Statutes-1987 regarding Special Reserve Fund was replaced by the IIU Statutes-2006
with the approval of the Board of Trustees on December 27, 2006.

5
6. 1) Every Officer authorized to incur expenditure from the University funds
should treat the University money as Amanah (‫ )امانة‬and inter –alia observe high
standards of financial propriety. Allah Subhanhu WA Ta"aala Commands:

‫س عأنَ تعدحمكمموُدا لباِدلععددلل‬ ‫اع يعأدمممرمكدمُ عأنَ متؤُددودا الععماِعناِ ل‬


‫ت إلعلىَ أعدهللعهاِ عوإلعذا عحعكدممتمُ بعديعن النناِ ل‬ ‫إلننَ ا‬

‫إلننَ ا‬
(58 ‫اع نللعنماِ يعلعظممكمُ بلله )سوُرة النساِء آية‬

i) “Allah doth Command you to render back your Trusts to those to


whom they are due and when ye judge between man and man
that ye judge with justice: verily how excellent is the teaching
which He giveth you!

‫ضاِ فعدليمعؤُدد النلذيِ ادؤتملمعن أععماِنعتعهم عودليعتن ل‬


‫ق ن‬
‫اع عربنهم‬ ‫فعإ لدنَ أعلمعن بعدع م‬
‫ضمكمُ بعدع ض‬

283 ‫ آية‬: ‫سوُرة البقرة‬


ii) “And if one of you deposits a thing on trusts with another let the
trustee (faithfully) discharge his trust and let him fear his Lord."

(8 ‫)سوُرة المؤُمنوُنَ آية‬ َ‫عوالنلذيعن همدمُ للععماِعناِتللهدمُ عوععدهلدلهدمُ عرامعوُعن‬

iii) (Successful are those) who faithfully observe their trust and their
covenants.

َ‫اع عوالنرمسوُعل عوتعمخوُمنوُا أععماِعناِتلمكدمُ عوأعدنتمدمُ تعدعلعمموُعن‬


‫عياِ أعديعهاِ النلذيعن آععممنوُا عل تعمخوُمنوُا ن‬

27 ‫سوُرة النفاِل آية‬

iv) "O! Ye that believe! Betray not the trust of Allah ad the Apostle,
nor mis-appropriate knowingly things entrusted to you.
II) The Adviser always should be a trust-worthy person and he
should not disclose the secrets trusted upon him, The Holy
Prophet says:
(‫المستشاِر موُتمن )البخاِرى‬
v) "The adviser should be trustworthy one.
vi) The Holy Prophet (May Allah bless him) declare that the honesty
is a sign of being a Muslim.
(‫ل ايماِنَ له لمن ل اماِنة له ) طبرائي‬

"A person who is not trustworthy, he does not possess his Faith
(Iman)

7. The objective of financial management is to achieve the targets with


minimum possible expenditure. Savings detrimental to the cause are equally
undesirable as "Israf".

6
‫عوالنلذيعن إلعذا عأنفعمقوُا لعدمُ يمدسلرمفوُا عولعدمُ يعدقتممروا عوعكاِعنَ بعديعن عذلل ع‬
(67 ‫ك قععوُاضماِ )سوُرة الفرقاِنَ آية‬

"And the servants of the most gracious are those who when they
spend, are not extravagant and not niggardly but hold a just
(balance) between these (extremes)."

‫عو ل تمبعدذدر تعدبذيرا إلننَ ادلممبعدذريعن كاِمنوُا إلدخوُاعنَ النشياِطيلن )سوُرة بنىَ اسرائيل‬
(27-26 ‫آية‬

“And squander not (thy wealth) in the manner of a spend thrift.


Verily spend thrifts are brothers of the Evil ones:

8. Every employee is expected to exercise the same vigilance in respect of


expenditure from university money, as a person of ordinary prudence would
exercise in respect of expenditure of his own money.

9. The expenditure should not be prima-facie more than the occasion


demands.

10. Every employee should observe the golden principle that: “Can’t we do
without it.”

11. While deciding financial matters regarding the claims and rights of the
employee the sense of “Adal-wal-Ehsan” must prevail. If the implementation of
any rule violates the process of “Adal-wal-Ehsan” in any particular situation or
case the rule must be relaxed by the competent authority.

(90 ‫إنَ ا ياِمر باِلعدل وال حساِنَ )سوُرة النحل آية‬

“Allah commands justice, the doing of good …….”

12. No authority should pass any orders, which will be directly or indirectly
to his own benefit. University moneys should not be utilized for the undue
benefit of a particular person or section of the community unless:

a) the expenditure involved is insignificant; or


b) a claim for the amount can be enforced in a court of law; or
c) the expenditure is in pursuance of a recognized policy or custom.

13. The amount of allowances should be so regulated that it is not on the


whole, a source of profit to the recipients.
CHAPTER-IV

BUDGET

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14. Planning, coordinating and controlling operations through budgetary
mechanism is an integral part of successful implementation of policies,
programmes, activities and projects of the management in a given period of time.
The budget is a blue-print of financial operation embodying an estimate of
purpose and the proposed means of financing them. The preparation of budget
provides an opportunity for undertaking in each financial year a review of its
income and expenditure. It also enables the management to translate its policies
in financial terms by providing resources to the best possible advantage in
accordance with the priorities determined in the best interest of the University.

PROCESS OF BUDGETING

15. The Process of budgeting comprises the following operations or stages:


1) Preparation of budget
2) Consideration of the budget by Finance & Planning
Committee/BOG
3) Execution of the Budget

PREPARATION OF CURRENT EXPENDITURE

REVISED ETIMATES

16. The preparation of revised Estimates should precede the framing of


Budget Estimates. The following factors should particularly be taken into
account in preparing the Revised Estimates:

1) Actuals for the last 4 months of the current financial year.


2) Actuals for the last 8 months of the last financial year.
3) Actuals for the whole of the last three preceding years.
4) Any other relevant factors.

BUDGET ESTIMATES

17. Budgeting has become a continuous process and ceases to be seasonal


activity. Therefore, preparation of budget as a rule shall begin well ahead of the
year to which it pertains in accordance with the instructions issued by
Government of Pakistan from time to time. The Revised Estimates & Budget
Estimates should be submitted in accordance with the time schedule announced
by the Government of Pakistan each year.

18. Budget is now regarded as most effective instrument for financial control
and vehicle for implementation of programmes, activities of an organization. It is
therefore of paramount importance that all items of receipt and expenditure that
can be foreseen, are carefully examined in consultation with Faculties,

8
Institutes/Academies before the amount of provision is included in the Budget
Estimates. The following are the main guide lines for the preparation of Budget
Estimates:

i) In framing the estimates for sanctioned posts whether permanent or


temporary, full amount of pay and increments likely to be drawn by
employees on duty during the year should be included. Suitable
provision for leave salary should be made for officers and staff on
the basis of past actual with due regard to any known factors which
may effect the past actual. No provision of leaves salary should be
made for officers and staff of those cadres for which leave reserve
has been provided. Provision for those who are on deputation or
otherwise absent and unlikely to return to strength within the period
of budget should be excluded, but the names of the personnel on
deputation should be shown in the nominal rolls. A lump-sum
deduction should be made where experience shows that a saving may
occur by reason of posts remaining vacant or for other reasons.

ii) Fresh charges means new objects of expenditure, such as temporary


additions to existing establishments or to services, facilities and
establishment of new faculties/institutes/academies/organizations for
which provision is being made for the first time in the Budget. No
scheme of fresh charges will be included in the budget unless it is
complete and finally approved.

iii) The estimates in respect of pay of officers and pay of other staff and
regular allowances should be prepared on nominal rolls on the
prescribed form.

iv) Provision in respect of "other allowances" and other items of


expenditure i.e. “Purchase of Durable Goods”, “Repairs and
Maintenance of Durable Goods and Works”, “Commodities and
Services” etc. may be based on the average of past three years’
actuals, unless there are any known circumstances to affect these
actuals one way or other.

v) Revised Estimates and Budget Estimates should be compiled on the


prescribed format and object classification should be indicated in
unites i.e. Major Objects, Minor Objects and Detailed Objects.

vi) Reasons for variations for savings excesses between Revised


Estimates and Budget Estimates of the same year together Budget
Estimates of the ensuing year should be given.
DEVELOPMENT EXPENDITURE

9
19. The concept of a workable definition of development expenditure should
take into account the following basic considerations:

i) That it creates material assets;


ii) That it is designed to keep intact, to enlarge and to improve the
physical resources of the University;
iii) That it will improve the knowledge, skill and productivity of the
employees; and
iv) That it will encourage efficiency with which available resources are
used.
REVISED ESTIMATES
20. The revised estimates should not in any case exceed the original budget
plus supplementary grants already sanctioned in utilization of assistance through
donations.
ESTIMATES OF DEVELOPMENT EXPENDITURE
21. The estimates of development expenditure should not include any
scheme which has not been approved in accordance with the prescribed
procedure. Annual Development Programme should be prepared for submission
to Government for the project for which funds are provided by the Government.
This should be accompanied by detailed expenditure estimates for budget
provision in respect of individual projects.
22. In the case of on-going projects the estimates should also be
accompanied by relevant documents in which budget provision was admitted. All
new projects for which budget provision is proposed for the first time should be
supported by relevant PC-I or PC-II Form.
23. While proposing budget estimates for projects/schemes included in the
Annual Development Programme, it should be ensured that there is no
overlapping as to the nature and scope of project/scheme included in the ADP
between (a) items proposed for the development budget, and (b) those provided
for in the current expenditure budget. In cases where budget provision for
carrying out certain activities and operations is made partly through the current
expenditure budget and partly through the development budget, it is essential to
present a consolidated picture when placing the budget to Finance and Planning
Committee/Board of Governors.

PHYSICAL TARGETS OF DEVELOPMENT SCHEME


24. In order to support the provision for development expenditure, it is
essential to furnish relevant information under the following headings alongwith
estimates of individual projects/schemes:
a) Name of the project/scheme

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b) Expected date of completion
c) Physical targets envisaged in the project/scheme
d) Expenditure upto June 30, of the previous year.
e) Percentage of completion till June 30 of the previous year and target
achieved.
f) Revised Estimates of the current financial year and targets likely to
be achieved.
g) Budget Estimates for the ensuing year.
h) Target proposed for the ensuing year.
i) Basis for determining targets for the current financial year and
ensuing year (i.e., unit cost or any other unit of measurement).
25. When furnishing the above information as far as feasible, the physical
targets in quantitative terms should be specified. In cases where quantitative
assessment of physical targets is not feasible, the likely achievements should be
specified in broad details.
26. As in the case of current expenditure budget, details of posts under pay
of officers and pay of other staff should be given in respect of development
budget as well. Particular attention in this connection is invited to the
requirement as laid down in the guidelines pertaining to current expenditure
budget.
27. All schemes may be classified into on-going/new and approved or
unapproved, as the case may be, according to the status of the scheme. If the
original scheme is revised, approval of the competent authority for revised cost
will be obtained before any request for budgetary allocation is made.
28. No expenditure should be incurred, nor any commitment of funds made
for any project not included in the Development expenditure Budget nor any
work started, contract awarded, any down payment made, letters of credit opened
for which there is no budgetary provision.

SUBMISSION OF REVISED ESTIMATES/BUDGET ESTIMATES

29. The University and its constituent institutes/academies shall prepare their
Revised Estimates/Budget Estimates on the basis of the prescribed guidelines.
After consolidation, these estimates shall be presented to Higher Education
Commission/Government of Pakistan every year in accordance with time
schedule fixed by the Finance Division.
30. The total amount of grant-in-aid is normally intimated by the Higher
Education Commission in the month of July each year. The budget estimates
originally submitted to Higher Education Commission are recast in accordance
with the availability of overall resources including donations and income
generated by the University. Revised Estimates of the current financial year and

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Budget Estimates for the ensuing year shall be presented to Finance & Planning
Committee and Board of Governors for their approval.
31. Budget Execution
i) Budgetary allocation shall be communicated to concerned
sections/departments of the University and its Constituent
Institutes/Academies.
ii) The expenditure shall be kept within the budgetary provisions. If,
however, at any stage it is found that an excess is likely to occur
owing to either unforeseen circumstances or emergency or under-
estimation or on account of insufficient allowance for factors leading
to the growth of expenditure, the expenditure shall be met through
re-appropriation with the approval of the Competent Authority.
iii) The expenditure for which no provision has been made in the budget
and if it becomes necessary to incur such expenditure in the interest
of the University shall be met through re-appropriation. However,
efforts shall be made to mobilize additional funds for such
expenditure.
iv) Re-appropriation of funds shall require proper justification and it
shall be ensured that the other heads of the budget do not encounter
deficit during the remaining financial period.
v) Money should be spent with design and not with accident. It should
not be spent hastily to avoid lapse of funds. A rush of expenditure
particularly in the closing months of the financial year will ordinary
be regarded as a breach of financial regularity.
vi) Permanent Advance (Imprest Money) which is intended to meet
emergent petty expenditure shall be determined on case to case basis
and it shall not be larger than an amount absolutely essential. Holders
of such advance (s) shall be responsible for its accountability. An
expense of upto a maximum of 1Rs. 10, 000/- at a time in normal
cases and Rs. 15,000 at a time in exceptional cases with the
approval of the President, IIU shall be permissible to be met out of
the permanent advances.
32. Sanctions to Expenditure

(a) Authority – The President of the University being the Chief


Executive of the University under section 13(3)(e) of the IIU
Ordinance-1985, enjoys full powers to authorize expenditure in
accordance with budget and other guide-lines laid down by the
Board from time to time. He may delegate any of his powers to Vice-
1
The amendments in section 31(vi) were approved by the Board of Governors in its 52 nd meeting
held on 09-09-2006.

12
President(s) or any teacher, officer or a committee and exercise such
other powers as may be delegated to him by the Board of Trustees or
the Board of Governors as per Section 13(3) (g) of the IIU
Ordinance-1985. The President shall not, however, cease to exercise
his powers by the act of delegation.

The financial powers so delegated shall be subject to the following


conditions that:

(i) the funds are available under the relevant head,

(ii) the delegated power(s) shall be exercised in accordance with the


Statutes/Regulations/Rules of the University and such
instructions issued by the President from time to time,

(iii) the powers delegated shall not be further delegated.

(b) Communication – All financial sanctions and orders issued by


various officers within the financial powers delegated to them shall
be communicated direct to the Director Finance, Drawing &
Disbursing Officer and the Audit.

(c) Date of Effect – All sanctions shall be deemed effective from the
date of issue unless otherwise specified. A sanction which is not
acted upon during a financial year shall not lapse and shall be
operative for the next year.

(d) Saving – Savings in the annual budget of the University and its
Constituent Institutes/Academies shall be transferred to Special
Reserve Fund in accordance with provisions of the Statutes. Savings
shall be determined by taking into account all sanctioned liabilities
of the financial year. Liabilities mean for which bills have been
received before the closed of financial year.

(e) i) Investments – Grant in aid, savings from the annual budget, G.P
Fund, C.P Fund and any other fund not needed for immediate
payments shall be invested in most – appropriate profitable
ventures/schemes.
ii) No investment shall be made in interest bearing modes/schemes.

iii) The amount and manner of investment or its withdrawal shall be


approved by the President in case of the University and the
Director General in case of the Institutes/Academies.

13
iv) Profit earned from an investment shall be credited to the
respective fund.

CHAPTER-V

ACCOUNTING

33. The accounts shall be maintained in a manner prescribed by the


University from time to time (Appendix-I). The accounts so maintained shall
meet the requirements of all the financing agencies.

In addition to the above, following requirements shall be ensured.

i) Separate accounts shall be maintained for recurring budget,


development budget, donations and other grants.

ii) Entries in the books of accounts shall be made 1either manually or


through computer. All Corrections or alterations in case of manual
accounting shall be made in ink after drawing single line through the
original entry being corrected over the signatures of the authorized
officer.

iii) All moneys received by the University other than the banking and
postal channels shall be acknowledged on proper receipt (printed and
machine numbered) and promptly deposited in the bank.

iv) A proper record shall be maintained for receipt and issue of receipt
books.

v) No duplicate receipt shall be issued.

vi) The cash book (bank book) 2in case of computerized record shall
be balanced daily and shall be closed in case of
manual/computerized record regularly. The entries in the Cash
Book shall be verified by the concerned Accounts
Officer/Accountant.

vii) Monthly bank reconciliation of the accounts shall be the


responsibility of the concerned Accounts Officer/Accountant.
1
The amendments in section 33(ii) were approved by the Board of Governors in its meeting held
on 12-2-2000.
2
The amendments in section 33(vi) were approved by the Board of Governors in its meeting held
on 12-2-2000.

14
Discrepancy, if any, shall be immediately reported to the concerned
authority.

viii) The President in case of the University and the Director General
in case of Institutes and Academies shall authorize any officer(s) in
BPS-16 or above to act as Drawing & Disbursing Officer (DDO) for
signing bills and cheques on his behalf.

ix) Bank accounts of the University and Constituent


Institutes/Academies shall be operated by two authorized signatories
of BPS-16 or above.

x) No person lower than the rank of Cashier shall be deputed to fetch or


carry the cash.

xi) The specimen signatures of the Drawing and Disbursing Officer and
bank signatories shall be communicated to the Bank and Audit.

xii) If a bill is lost after pre-audit and before the payment, the Drawing &
Disbursing Officer shall draw a duplicate bill by giving the following
certificate:

“Certified that no payment has been made against the original


bill which if found later on shall be cancelled and attached to the
duplicate bill”.

xiii) The Drawing & Disbursing Officer shall ensure the deduction of
Income Tax at source as per Income Tax Article promulgated from
time to time. The tax so deducted shall be remitted to the quarter
concerned at the earliest.

xiv)Disbursement – Pay shall normally be disbursed on the last day of


the month. If the last or the last two days are public holidays, pay
shall be disbursed on the last working day before the holidays. On
the occasion of religious festivals viz, Eid-ul-Fitr, Eid-ul-Azha and
Easter or Christmas if falls within last ten days of the month, the
competent authority may decide to disburse pay in part or full to the
relevant community.

xv) Receipts & Revenues – All receipts and revenues received through
cash, cheques or any other mode shall be controlled and accounted
for separately. Accounting procedures in respect of each receipt has
been prescribed as per Appendix-II.

15
xvi)For each expenditure a payment voucher shall be prepared. The
voucher shall be stamped as “Paid” at the time of payment.

CHAPTER-VI
AUDITING

34. All payments shall be made after pre-audit.

35. The accounts of the University and its Constituent Institutes/Academies


shall be got audited by external auditors appointed by the Board.

36. The Audit Department shall carry out annual internal audit of the
accounts of the University and its Constituent Institutes/Academies for every
financial year.

37. Physical verification of stores of the University and its Constituent


Institutes/Academies shall be carried out by the Internal Audit Department once
in every financial year.

38. Stock taking of Libraries of the University and its Constituent


Institutes/Academies shall be carried out by the Chief/Principal Librarian with
the assistance of Librarians/Assistant Librarians and other Library Staff after
every two years where number of volumes exceeds 20,000 and once every year
where number of volume is upto 20,000. The representative of the Audit
Department will be associated. The report so prepared shall be submitted to the
President with a copy to Audit Department.

CHAPTER-VII

REPORTING

39. Monthly statement of current expenditures alongwith the budget


comparison shall be prepared by the University and its Constituent
Institutes/Academies on regular basis, (Appendix-III).

40. Similar report shall be prepared for Development Grants, Donations etc.
wherever applicable.

16
41. The statements so prepared shall be consolidated by the
Finance/Accounts Section of the University with brief analysis and comments for
information of the President.

42. Analysis of the overall financial position (in terms of mobilization of


resources, expenditures and achievements of targets) shall be prepared on
quarterly basis by Finance/Accounts Section of the University and presented to
the President for information.

43. Reports relating to the internal audit, internal check, physical check,
physical verification of stores and the Libraries shall be presented to the
President.

44. Annual statement of expenditure and receipts of all accounts of the


University and its Constituent Institutes/Academies duly audited by the external
auditors shall be submitted by the President to the Board for consideration.

CHAPTER-VIII

GENERAL CONTROL MEASURES

45. No employee shall be deputed to handle cash or stores without adequate


security which shall be determined in manner and amount by the Competent
Authority.

46. All void or cancelled cheques/receipts shall be retained in record for


verification by Internal and External Auditors.

47. All collections shall be deposited into bank without delay.

48. All pay-in slips shall be periodically checked by the


Accountant/Accounts Officer with cash book.

49. All payments except from imprest funds at temporary advances shall be
made through crossed cheques.
50. While sanctioning the imprest money, the nature and purpose of
expenditure to be met from it shall be clearly indicated.

51. The Disbursement Vouchers shall be approved for payment by some one
other than the person requesting payment.

52. The purchase of stores shall be regulated in accordance with the “IIU
Procurement Procedure” prescribed by the Competent Authority from time to
time (Appendix-IV).

17
53. All stores received shall be examined, counted, measured and/or weighed
as the case may be. The officers shall record a certificate that the material has
been received according to specifications and recorded in the appropriate stock
register.

54. The material from the stores shall be issued on appropriate indent and
acknowledgement thereof shall be obtained from the recipient.

55. Temporary advances to the employees for meeting official expenditure


shall be allowed only where it is deemed absolutely essential.

56. The adjustment account of the advance drawn shall be rendered within
ten days of the event is over and any balance amount shall be deposited with the
relevant accounts section promptly.

57. All claims for payments shall be supported with proper printed bill/cash
memo, invoices etc. wherever these are not obtainable in printed form and the
payment involved does not exceed 1Rs. 2500/- at one time, the claim shall be
certified by the officer concerned of BS-17 or above.

58. Procedure for free distribution/donation of University Publications


(including books/Journals etc.) will be prescribed by the President, IIU from time
to time.

58-A 2To regulate and administer financial matters concerning the


University and its constituent units necessary procedure will be prescribed
by the President, from time to time (Procedure prescribed for reissue of
lost/misplaced University cheques is in Appendix-VI).
CHAPTER-IX

LOANS (Qard-e-Hassanah) AND ADVANCES

59. Loan (Qard-e-Hassanah)

Loans (Qard-e-Hassanah) will be made available to the permanent


deserving employees of the University and its Constituent Institutes/Academies
against the funds kept for this purpose in the prescribed manner. Loans (Qard-e-
Hassanah) are a privilege and not a right. All loans shall be payable on the
execution of an agreement (Appendix-V) ensuring full security of the amount.

1
The words (Rs. 2500) in Section 57 were added with the approval of the Board of Governors on
24-6-2001.
2
Section 58-A in Chapter-VIII was added with the approval of the Board of Governors on 16-3-
1995.

18
3
a) House Building Loan

i) Competent Authority may sanction the loan to a permanent


(confirmed) employee of the University for purchase of
land/plot for construction of house or purchase of a house in
Pakistan.

ii) The advance (loan) shall be equal to 60 months basic pay of


the employee subject to maximum of Rs. 450,000/- whichever
is less recoverable in 120 monthly equal installments after
three months of the payment of loan.

iii) Full amount of loan shall be granted to the employees on the


basis of total length of qualifying service in the University
between the ages of 30 to 55 years. However, in case the
remainer service is less than 120 months, the loan shall not
exceed 25% of the pay to be earned by the employee during
the period.

b) Car Loan

i) Car loan shall be admissible to a permanent (confirmed)


employee of the University in BPS-16 and above.

ii) The advance (loan) shall be equal to 20 months basic pay of


the employee subject to maximum of Rs. 300,000 whichever
is less recoverable in 80 monthly equal installments after
three months of the payment of advance (loan).
iii) Full amount of loan shall be granted to the employees on the
basis of total length of qualifying service in the University
between the age of 30 to 55 years. However, in case the
remainer service is less than 80 months, the loan shall not
exceed 25% of pay to be earned by the employee during the
period.

c) Motor Cycle/Scooter Loan

i) The loan shall be admissible to permanent (confirmed)


employee of the University in BPS-5 to BPS-15.

3
The amendments in section 59 (a. b and c) were approved by the Board of Governors in its 41 st
meeting held on 9-1-2002. The amounts of advances (loans) have also been enhanced with the
approval of Board of Governors on 04-02-2012.

19
ii) The advance (loan) shall be equal to 18 months basic pay of
the employee subject to a maximum of Rs. 60,000/-
whichever is less recoverable in 40 monthly equal
installments after three months of the payment of advance
(loan).

iii) Full amount of loan shall be granted to the employees on the


basis of total length of qualifying service in the University
between the ages of 30 to 55 years. However, in case the
remainer service is less than 40 months, the loan shall not
exceed 25% of basic pay to be earned by the employee
during the period.
1
d) Bicycle Loan

i) The loan shall be admissible to permanent (confirmed)


employees of the University in BPS-1 to BPS-4.

ii) The advance (loan) shall be equal to 05 months basic pay of


employee subject to maximum of Rs. 4,000 whichever is less
recoverable in 20 monthly equal installments after three
months of payment of advance (loan).

iii) Full amount of loan shall be granted to the employees on the


basis of total length of qualifying service in the University
between the age of 30 to 55 years. However, in case the
remainer service is less than 20 months, the loan shall not
exceed 25% of pay to be earned by the employee during the
period.

e) General Provisions

i) House Building loan shall be made available for


bonafide purpose of building suitable house for the
personal residence of the concerned employee once
during his entire service with the University. Preference
will be given to those who or his/her family does not
own a house within the territories prescribed for the
land. Here the family shall mean the employee, the
spouse of the employee and dependant children.
1
The amendments in section 59 (d) were approved by the Board of Governors in its 41 st meeting
held on 9-1-2002. The amount of bicycle advance (loan) was enhanced with the approval of the
Board of Governors on 04-02-2012.

20
ii) Loan for the construction of new houses shall be drawn
in two equal installments. First installment will be paid
on the production of documents establishing proprietary
rights of the land and the second installment of the loan
will be paid only after the construction of plinth level.

iii) In case of purchase of constructed house the satisfactory


evidence of purchase shall have to be produced by the
employee within six months of the drawl of the loan to
prove that the amount has been spent on the purchase of
a constructed house.

iv) The employee shall submit satisfactory utilization report


in respect of construction of house which shall be
certified by the Administration.

v) At one time loan for purchase of conveyances shall be


available only for one mode of conveyance. Satisfactory
evidence of purchase of such conveyance shall have to
be produced by the employee within two months of the
drawl of loan.

vi) Loan for purchase of conveyances shall be permissible


once in five years provided the previous loan is settled.

vii) The recovery of loan will start after three months of the
payment of the final installment of House Building loan
and other loans from the next month in which loan was
paid.

viii) The recovery of loan will be made from the monthly


salary of the employee.

ix) The employee concerned shall be required to execute an


agreement on the prescribed form and he shall also
execute a registered mortgage deed in respect of House
Building/Motor Car/Scooter and Motor Cycle loans. The
mortgage deed must be registered within 4 months of its
execution.

x) The mortgage bonds/agreements should be kept in the


safe custody of sanctioning authority.

21
xi) The mortgage bonds/agreements should be insured
against full loss by fire, theft or accident. Such insurance
should be affected within one month from the date of
purchase.
1
RESOLUTION OF THE BOARD OF GOVERNORS:

(i) ‘In case the service benefits of the employee are


sufficient to secure recovery of amount of
loan/advances, the general provision (e) of Chapter 9
of Financial Rules 1992 will not be applied in his/her
case. However, a surety bond on judicial paper duly
verified by the Notary Public will be obtained and
secured on record. Such employee shall also be
required to submit proof of utilization of
loan/advance within 3-4 months”

(ii) “The Board further resolved that in case the service


benefits of employee are not sufficient to secure
recovery of the amount of loan/advances or an
employee is unable to fulfill the conditionalities of
general provision (e) of Chapter 9, the competent
authority may allow him/her to secure recovery of the
amount of loan/advances by creating mortgage of
land/plot by deposit of Title Deed”

f) Advance for Hospitalization

i) In case of hospitalization of an employee or


his/her/entitled family members the employee shall be
entitled to receive an advance of 2Rs. 10,000/- or an
amount equal to the advance required by the hospital.
Here the hospital shall mean the hospital approved by
the University.

ii) The advance so granted shall be adjustable against the


actual entitled expenditure. The balance, if any, shall be
deposited back by the employee.

1
Resolution of the BOG regarding implementation of general provisions of loan and advances of
59(e) Chapter-IX has been added.

2
The amount of advance for hospitalization was enhanced with the approval of the Board of
Governors on 12-08-2004

22
CHAPTER-X

ADVANCES FROM G.P FUND/C.P.FUND

60. An advance shall be admissible to the subscriber upto three months of his
pay or half of the amount at the credit of the subscriber in the fund whichever is
less.

61. The next advance shall be admissible provided the balance of the first
advance is recovered from the new advance being sanctioned so that only one
advance remains outstanding at one time.

62. The non-refundable advance upto eighty per cent of the balance in the
account of the subscriber shall be admissible to him after he has attained the age
of 45, 50 and 55 years.

63. No reasons are required to be given for the grant of advances.

64. Subject to the above conditions, advances from C. P. Fund will be


restricted to the employee’s own contribution.

65. The subscriber to the C.P. Fund shall be entitled to University


contribution after two years service.

CHAPTER-XI

WRITE OFF OF LOSSES


66. The losses or damages to the University property, money, stores etc.
caused by defalcation or otherwise shall be reported immediately by the
officer/office concerned to the head of the section who shall take appropriate
action either for recovery or write-off of the loss.
67. The write-off of the irrecoverable value of stores. University money
lost by fraud, negligence on the part of an individual(s) or any other cause shall
be done according to the delegation of powers.
68. The stores declared and established as obsolete, surplus or un-
serviceable (including newspapers) shall be disposed off by sale or otherwise
with the approval of competent authority.
69. Two per cent of book losses will be written off in closed access system
and three per cent in open access system annually.

23
70. The case of an over payment to any employee for waiver or otherwise
shall be considered by the Competent Authority on merit and case to case basis.

CHAPTER-XII
CONTRACTS
71. The President shall have full powers to approve, vary or cancel
contracts relating to works and supply of stores and equipment etc. in
accordance with the current expenditure budget. The contracts shall be signed
by the President or by an officer authorized by him.
72. The general principles and modalities for entering into and signing of
contracts are as follows:
i) The terms of contract shall be precise and definite leaving
no room for ambiguity or mis-construction;
ii) Legal and financial advice if deemed necessary shall be obtained
before the contracts are finally drawn;
iii) Appropriate form of contract shall be adopted;
iv) The terms of contract, once entered into shall not be materially
varied except with the prior approval of the Competent
Authority;
v) Contract shall be entered into with the lowest bidder. If
otherwise, the reasons shall be recorded;
vi) While selecting tenders for acceptance, the financial status of the
bidder shall be taken into consideration;
vii) The provision shall be made in contract for safeguarding the
University property entrusted to a contractor;
viii) The terms and conditions for the probable variation, cancellation
or revocation shall be specified in the contract.

CHAPTER-XIII

HIRING OF ACCOMODATION

73. OFFICE ACCOMODATION (including Hostels, Guest Houses)

i) Office accommodation shall be acquired outside the main


campus if it becomes necessary for creating working atmosphere
essential for the achievement of the objectives and goals of the
University.

24
ii) There shall be an Estate Committee which shall be responsible
for deciding the necessity and all matters relating to acquisition
and management of the accommodation.

iii) Estate Committee shall consist of five members, at least two of


whom shall be faculty members not below the rank of Associate
Professor.

74. RESIDENTIAL ACCOMMODATION

The Board of Governors in its 43rd meeting held on 06-10-2002 was pleased
to approve the following policy regarding residential accommodation:

(i) “The scheme of enhancement of House Rent


Allowance equal to House Rent Ceiling of Islamabad as
housing subsidy is approved w.e.f. 1-12-2002. The
expenditure on this account in the current financial year be
debited to the head “Rent for Residential Building”. Any
revision in the Government in the rental ceiling of Islamabad
shall also become effective from the same date in the case of
the University employees. (In case both husband and wife are
working in the university, only one of them shall be entitled
to the above subsidy). Those residing in government
accommodation, the subject policy shall not apply to them till
they leave government accommodation. Chapter 13 of the
Financial Rules shall be deemed to have been amended to
this effect. The House Rent Allowance subsidy shall not form
part of the salary package in case of payment of incentive to
the teachers”.
(ii) “In case of employees who have obtained the
advances on account of rent for residential accommodation,
the subject House Rent Allowance subsidy shall only be paid
following the completion of the period of the advance rent”.
(iii) “In the event of dismissal, resignation, transfer or
retirement other than voluntary retirement, an employee
shall be entitled to the same rate of subsidy including self
hired house for a period not exceeding six months. In case of
death, the family shall be entitled to the same rate of subsidy
for a period of one year as decided by the Board in its
meeting held on January 9, 2002 by adopting the
amendments to Pakistan Allocation Rules made by the
Government of Pakistan. These amendments will be
applicable to the employees of the University as monthly
House Rent subsidy w.e.f. 1-12-2002”.

25
(iv) ‘The payment of House Rent Ceiling in the
University shall cease to the above mentioned extent”.

75. ASSESSMENT AND EXTENSION

In pursuance of the decision of BOG the clauses 75(i) to (v) stand


deleted.

76. GENERAL

In pursuance of the decision of BOG the clauses 76(i) to (iii) stand


deleted.

CHAPTER-XIV

REMOVAL OF DIFFICULTIES/RELAXATION/INTERPRETATION OF
RULES

77. i) In the event of any difficulty or in a case where these Rules are
silent and applicability of any of these Rules are in doubt, the
President may interpret and pass appropriate orders.

ii) The President may, in exceptional cases for the reasons to be


recorded in writing, relax any of these rules.

iii) In the event of a case not being covered under these Rules, the
matter shall be referred to the Board of Governors for
appropriate orders.

Appendix-I
See Rules 33)
ACCOUNTING

The objective of accounting record is to provide the most appropriate


financial information to different agencies financing or otherwise interested in
the affairs of the University. This can be achieved through double entry system
and maintaining the account on most scientific report oriented system.

The following books of accounts will be maintained by the University


and its Constituent Institutes/Academies, 1either computerized or manually.

1. Journals
1
The words “either computerized or manually” were included at para-2 with the
approval of the Board of Governors on January 15 and February 12, 2000.

26
i. Bank Book
ii. Cash Book
iii. General Journal
iv. Petty Cash

2. Ledgers
i. General Ledgers
ii.Subsidiary Ledgers
(a) Receipts
(b) Advances to Employees
(c) Advances to Suppliers/Contractors
(d) Assets (Non-consumable)
(e) Liabilities
(f) Student Affairs (Scholarships. Dues)
(g) Officer salaries
(h) Staff Salaries
(i) General Provident Fund (Personal Number should be
indicated)
(j) Contributory Provident Fund (Personal Number should
be indicated)
(k) Benevolent Payment (Personal Number should be
indicated)
(l) Pension Payment
(m) Telephone/Telex/Fax Bills
(n) Sui Gas Bills
(o) Electricity Bills
(p) Water Bills
(q) Machinery and Equipment
(r) Loans to Employees
(s) Investment

3. Miscellaneous Control Register

i. Cheques Issue Register


ii. Receipt Book Register
iii. Stock Register (Consumable items)

27
Appendix-II
See Rule 33 (XV)

Accounting Procedure in respect of various receipts are given below:

A) Income from Sale of Bus Tickets

1) The printing of bus tickets and passes shall be arranged through


Purchase and Store Section by the Transport Section.

2) Tickets and passes with their counterfoils duly numbered will be


printed in book form of hundred leaves.

3) Cost of various tickets/passes of different denominations will be


printed on each ticket/pass.

28
4) After printing of all ticket books and passes by the Purchase and
Store Section will be handed to the Account Section of the
University for Safe Custody.

5) Accounts Section will maintain proper record of receipt and issue of


bus tickets/passes and will issue them on demand to Transport
Section in seriatim. Passes will be issued to the interested employees
by the Transport Section on monthly basis and its renewal will not be
admissible.

6) The amount collected on account of sale of bus tickets/passes will be


deposited daily with the Accounts Section for which proper receipt
will be issued by Cashier.

7) Bus tickets/passes will not be normally issued to the Transport


Section unless the amount collected on account of sale of the
previous tickets/passes is deposited with the Cashier.

8) The record of issue of tickets and passes maintained by the Accounts


Section will be checked by the Accountant/Accounts Officer/Audit
Officer.

9) The transports Officer arrange surprise check in the buses to ensure


that no person is traveling without ticket/pass.

10) The issue of tickets and realization of the sale proceeds of the tickets
and passes and its subsequent deposit into the Bank Account will be
subject to usual pre-audit.

B) Income from University Dues/Hostel Dues

1) The fees/dues shall be directly deposited by the students in the Habib


Bank Ltd. Islamic University Branch according to schedule notified
by Students Affairs Section from time to time.

2) The bank challans duly filled in by the student concerned will be got
verified from the Accounts Section before depositing the due in the
bank. No fees/dues will be accepted by the bank unless the challan
forms are verified/signed by the Account Section of the Islamic
University. The bank will daily provide the paid copies of the challan
forms to the Director of the concerned Institute. Accounts Section
and Students Affairs Section.

3) The bank challans will be provided by the bank.

29
4) The University dues will be deposited by the students in collection
Account No. Opened with the Branch for the purpose.

5) The amount deposited in the collection Account will ultimately be


transferred on the last day of each month to the Recurring Grant A/C
of the University, being maintained in the same branch of the bank.

6) a) A complete list (class-wise) of the students alongwith the


schedule of fees/dues will be furnished by the Director (Academics)
to the Account Section at the time of commencement of each term.

b) A complete list (class wise) of the residents of the hostel will be


furnished by the Provost to the Accounts Section as soon as the
hostel admission is over.

7) a) The list of the students whose seats from hostel have been
cancelled will be communicated by the Provost to the Accounts
section so that the hostel charges may not be accepted from
them.

b) The lists of the failed students will be provided by the Director


(Academics) to the Accounts Section within one week after the
result is declared.

c) Copies of the Notifications/Orders in respect of the students


whose admission have been cancelled will be endorsed to the
Accounts Section.

8) The room number seat number in the hostel will not be allotted to any
student unless he has paid the University and hostel dues.

9) The Roll Number shall not be allotted to any student unless he has
cleared the University dues.

10) The list of dues to be deposited by the students will be displayed at


the Notice Boards of the University and at the Notice Board of the
hostels of the University.

11) The Accounts Section will provide the list of such students who have
not paid the University dues to the Director of the Institutes, Provost
and Students Affairs Section within one week of the last date of the
receipt of the dues.

C) Miscellaneous Income from the sale of forms/brochures

30
1) The Postal orders received alongwith applications for recruitment in
the University and for the supply for brochure to the students etc.
will be entered in the register as per specimen given below:

Sr. From whom Postal Amount Purpose


No. Postal Order Order No.
received
1. 2. 3. 4. 5.

2) The register will be maintained by the respective section/department


and the entries made there in will be verified by the officer incharge.

3) The Postal Orders so received in the respective sections will be sent


to Accounts Section weekly alongwith a statement duly verified by
the officer incharge.

4) The Accounts Section will immediately deposit the Postal Orders in


the University Account.

5) The Entries on the receipt side of the Cash Book/Bank will be made
by the Accounts Section under the head "Income from Postal orders".

D) Income from IIU Lodges

1) The Management and Maintenance of all the University IIU lodges


will be with the Protocol and Public Relations Section. The allotment
of accommodation in the respective IIU lodges will be arranged by
the protocol Section after approval of the President IIUI.
2) The Accounts Section on receipt of a letter from Protocol Section for
collection of rent will receive the advance rent and issue the official
receipt to the person concerned.

3) The person concerned will present the rent paid receipt issued by
Accounts Section to the Protocol Section for issue of allotment
slip/letter.

4) The allotment letter/slip will be issued by the Protocol Section,


which will be in triplicate having in three colours printed and serially
numbered. Its first copy, green coloured, will be issued to the allottee
and the second copy, blue coloured, will be endorsed to the Accounts
Section for record. The third yellow copy will be counter foil for
office record of the Protocol Section.

31
5) The allottee of accommodation will handover the allotment slip to
the caretaker of the respective IIUI lodge. The caretaker will open
the allotted room/rooms for him or his family.

6) Kitchen expenses will be responsibility of the allottee. However,


kitchen services will be provided free of cost.

7) The care-taker will keep proper record of staying guest in the IIU
lodge. He will maintain register with following detail and enter
therein the requisite information for record and verification by the
Protocol Officer.

Sr. No Name of Check in Check out No. of days


Sr. No the Guest time/date time/date stayed
1. 2. 3. 4. 5.

8) Normally extension in stay at IIU lodges shall not be allowed.


However, in emergent and special circumstances it will be done with
the prior approval of the President, IIU. A receipt book will be with
the care-taker who will be responsible for collection of rent for over
stay and issue the receipt to the person concerned. The rent so
collected shall be deposited with the Accounts Section.

9) The Account Section shall maintain separate record for the money
received on account of rent and expenditure incurred on the
maintenance of IIU lodges.

10) In case of official guest, the permission of the President, IIU for stay
in the IIUI lodge will be sent to the Protocol Officer who will
arrange for his accommodation in the respective IIU lodge. In case
boarding expenditure i.e. breakfast and other meals with light
refreshment etc. are also to be borne officially, the approval of the
President, IIU for such arrangements and drawl of advance by the
Protocol Officer will be necessary.

11) Care-taker will keep record of all purchases and its consumption and
boarding arrangements. Any commodity left in balance i.e. ghee,
atta, sugar, meat etc. will be kept in stock under the supervision of
Protocol Section.

12) Protocol Section will prepare bill of rent for stay of University
official guest in, IIU lodge on actual basis and sanction of the
amount will be obtained from the competent authority.

32
13) The bill of rent and the approval of the competent authority will be
sent to the Accounts Section for drawl of amount from the University
and its deposit into IIU Lodge Accounts.

14) Monthly report regarding the stay of quest (Private as well as


official) in respect of each IIU lodge will be submitted to President,
IIU by the Protocol Section.

15) The Protocol Section will make surprise visits to the IIU lodges from
time to time and will check the record of the IIU lodges and
inspection report will be submitted to the President, IIU.

16) The official guest(s) invited by the Constituent Units will be charge
to the budget of the respective Units i.e. the payment will be made by
the respective Units in case of their official guest(s).

Appendix-III
(See Rule-39)
REPORTING

"Report(s)" is the out-put of the accounting. The purpose of the reports) is


to provide timely and relevant information to the decision makers for using it in
planning, controlling and Co-coordinating the financial activities.

The following statements will be prepared on regular basis:

a. Monthly Trial Balance

b. Comparison of current month expenditure, cumulative


expenditure with the relevant proportionate budget provision.

33
Remarks must be given where considerable deviation occurs.
However, it should not be applicable in case of purchase of
durable goods, honoraria.

c. Quarterly forecast of expenditure to plan and control the flow


of funds.

d. Statement of Liabilities shall mean sanctioned expenditure for


which commitment have been made. In normal course of
action such payments ought to have been made during the
budget period.
1
e. Annual Balance Sheet.

Appendix-IV
(See Rule 52)

IIU PROCUREMENT PROCEDURE

In view of adoption of “Public Procurement Regulatory Authority


Ordinance 2002” and Public Procurement Rules 2004, the IIU Procurement
Procedure as specified hereunder shall be observed for all Procurements,
Purchase, Works and Services etc.

1 Principal Method of Procurements:

The University shall ensure competitive bidding as the principal method


of procurement for acquiring goods, services & works. It shall also ensure
that all the Procurements are made in a fair and transparent manner. The
main objective is that the procurements bring best return of the money
spent, in term of quality, reliability, price, after sales services, etc. and the
procurements process is efficient & economical.
1
The Board of Governors in its 63 rd meeting held on 08-05-2010 was agreed to delete the
provision (e) of Appendix-III “Reporting” as it is not infirmity with the provision of the Ordinance
and Statutes ibnitio.

34
2 Procurement Procedure:

(1) All procurements including purchases, works and services etc.


over Rs. 25,000/- should be made through respective
Purchase/Works Committee(s) except those required on emergent
basis through advance(s) etc.

(2) On receipt of an indent, the dealing officer shall initiate action in


the following manner, after obtaining the administrative approval
of the competent authority:

(a) By Advertisement (Open Tender):

(i) All Procurements over Five hundred thousand rupees (Rs.


500,000/-) and up to limit of Two million rupees
(2,000,000/-) shall be advertised simultaneously on PPRA
and IIU websites providing complete details, specifications
and relevant information of the required Procurement,
Purchase, Works and Services etc. It will remain available on
PPRA and IIU websites until the closing date for submission
of the bids. However, the procurement may also be
advertised, if required in at least one newspaper of wider
circulation.

(ii) All Procurements over Two million rupees shall be


advertised simultaneously on PPRA and IIU websites as well
as at least in two national dailies i.e. one in English and the
other in Urdu of wider circulation.
(b) By Limited Tender (Quotations):

(i) The Procurements ranging from Rs. 100,001/- to Rs.


500,000/- will be made by advertisement in PPRA and IIU
websites and, simultaneously by seeking rates from the
Bidders by inviting limited tender/quotations.
(ii) The Procurements up to the limit of One hundred thousand
rupees (Rs. 100,000/-) be made from well reputed firms in
the open market, provided that the Procurement has the
standard specifications. A minimum three quotations would
be required for this purpose.

(c) Petty Purchases:


The petty purchases up to limit of Rs. 25,000/- shall be exempted
from the requirements of bidding or quotations etc. and should be
made on single quotation basis, without referring the matter to the

35
Purchase/Works Committee. However this limit may be enhanced
up to a maximum of Rs. 100,000/- subject to observance of
relevant rules and regulations of procurement etc. in exceptional
circumstances to be recorded while seeking approval of the
sanctioning authority.

3. Pre-qualification of Suppliers/Contractors:
Prior to floating of tenders, invitation to proposals or offer for
procurements, the University may pre-qualify bidders, if necessary in
any cases, for supplies, services, works, turn-key contracts/projects, and
procurements of expensive & technically complex equipments etc. to
ensure that only the technical and financially capable firms having
adequate managerial capability are invited to submit bids. Such pre-
qualification shall be based upon the ability of the interested parties to
perform that particular work satisfactorily. The list of pre-qualified
firms/Supplies should be circulated in IIU.

4. Earnest Money/Bid security:


It may range from 2% to 5% of the full value of the tender as decided by
the procurement sanctioning authority. Whereas no earnest money will
be required for the procurements up to the limits of Rs. 100,000/-

5. Response Time:

It shall be a minimum of 15 days for bids on national level, provided that


the response time may be reduced for procurement required on
emergency basis with the approval of sanctioning authority.
6. Bids Validity Period:

It shall be specified in the bidding documents keeping in view the nature


of procurements. The University will ensure to finalize the bidding
process in the specified period.

7. Method for Opening of tenders:

The Tender(s) received in response to the advertisement in national


dailies and websites of PPRA & IIU shall be placed in the Tender Box,
which shall be sealed by the dealing officer. It shall be opened at the time
and place specified in the bidding documents publicly in the presence of
the Bidders or their representative, dealing officer and one of the member
of the respective Purchase/Works Committee(s) or his representative. All
the present bidders shall sign attendance sheet. Whereas, the Limited
tender inquiries shall be opened on the due date by the dealing officer in

36
the presence of one of the available members of the respective
Purchase/Works Committee(s).

8 Comparative Statement:

After opening of the Tender(s)/Bid(s), a comparative statement shall be


prepared and signed by the concerned dealing officials and the dealing
officer. In case of procurement of technical and special items, the
Comparative statement shall be prepared by the concerned expert(s).
Thereafter the matter shall be placed before the relevant Purchase/Works
Committee.

9 Ignoring Lowest Bid:

The lowest offer, if any, shall be ignored by the respective committee


only after recording full justification with the approval of the sanctioning
authority. However, the sanctioning authority shall reserve the right to
accept or reject any/all bid(s)/tender(s) without assigning any reason
thereof.

10 Minutes Recording:

The Minutes of the Purchase/Works Committee(s) shall be recorded by


the Secretary of the Committee, and after approval of the minutes, action
shall be taken according to the decision of the competent authority.

11 Single Tender/Direct Contracting:

(1) This system may only be adopted when the competent authority
is satisfied that the required items are of proprietary/technical in
nature and no other manufactures or suppliers exist for the
required procurement on recommendation of the relevant
Purchase/Works/Transport Advisory Committee(s), which shall
decide for acquiring a specified item(s) of a specific brand after
due consideration.

(2) This system may, also, be adopted in acquisition of the following


items:

(i) The Procurements concerning the acquisition of spare


parts or supplementary services from original
manufacturer, sole distributor and suppliers.

37
(iii) When the price of the items, goods, services, or works
etc. are fixed by the Government or any other authority,
agency or body dully authorized by the government on
its behalf.

(iii) Purchase of vehicles from local original manufactures


or their authorized agents at manufacture’s price.
12. Negotiation:

(1) This system may be adopted only in exceptional/emergent cases,


and the items which normally are not available on credit basis
may be purchased on spot negotiation basis, through an advance
on competitive rates by a Committee with the approval of
sanctioning authority. Provided that the advance would be
restricted to a maximum of Rs. 25,000/- in routine cases,
however, the advance over & above Rs. 25,000/- may only be
given in extreme emergency, subject to observance of relevant
rules and regulation of procurement etc.

(2) This mode of purchase may also be applicable in the cases where
the procurements, works, services are urgently required and the
firm/supplier etc. is ready to supply the required items/goods, or
to complete the works, or provide services against pre-receipted
bills(s) under a bank guarantee wherever applicable. In such a
case, the payment will be made through cheque(s) in favor of the
concerned firms/supplier.

13 Placement of Orders:

All procurement purchase/work orders shall be placed in writing


indicating the delivery/completion time and other necessary conditions
on the prescribed form, as annexed. Similarly the order relating to
services, works and for awarding contracts shall also be made in writing
indicating complete details of works and nature of services etc. and
clearly indicating the duration or time-period of completion of the
work(s) or the required period of service as the case may be.

14 Relaxation/Extension in Time Period/Duration:

The Chairman of the respective Purchase/Works Committee(s) may grant


extension in time period, delivering date(s), or condone delay for a
maximum period of 30 days. All extensions beyond 30 days shall be

38
submitted to the President, IIU with justifications for approval, by the
concerned dealing officer or the respective Committee(s), as the case
may be.

15 Repeat Order:

The Procurements may be acquired on repeat order basis within a time


period of six months subject to the willingness of the concerned supplier,
if it is considered advantageous with the approval of sanctioning
authority, on recommendation by the dealing officer, provided that it
shall not exceed 50% of the original procurement order.

16 Inspection of Procurements:

(1) All procurements including purchases, works and services etc.


shall be examined in term of quality, quantity, specification,
counted, measured, weighted etc., as the case may be, on
delivery/completion by the designated Inspecting
Officer/Committee, and shall give a certificate in terms of quality,
quantity of the items and that it have actually been received and
found in good conditions according to the specification.

(2) All the items delivered/completed should be taken promptly in the


relevant stock register or any other required books/register etc.
under the respective rules by the dealing official who should also
see that quantities are correct and the quality is good and affix a
stamp regarding stock taking duly signed by him and the
respective dealing officer.

In all other matter the Public Procurement Rules, 2004 (as amended from time to
time) shall be followed in its true spirit.

The President, IIUI, may however, relax any of the condition(s)/step(s) laid down
in the above procedure in consideration of the exigencies of the procurement(s),
work(s) and service(s) etc.

The “Public Procurement Authority Ordinance 2002” was adopted by the IIUI with the
approval of the Board of Governors on 12-11-2005.

In view of adoption of “Public Procurement Authority Ordinance 2002” the Board of


Governors in its 56th meeting held on 11-8-2007 was pleased to approve “IIU
Procurement Procedure” notified vide No.ADF.2007-08/IIU-288 dated 20-10-2007 .

39
Appendix-IV-A

PROCEDURE FOR PURCHASE OF BOOKS

1) Books, journals and other reading materials upto Rs. 20,000/- will be
purchased on the basis of rates approved by the Library Rates Committee,
Department of Libraries and Ministry of Education.

2) Normal procurement procedure as per Appendix-IV will mutatis mutandis


apply to the purchase of books beyond Rs. 20,000/-

ISSUE AND RECEIPT OF BOOK

40
1) Procedure for issue and receipt of books will be prescribed by the
President, IIU from time to time.

Appendix-IV-B

INTERNATIONAL ISLAMIC UNIVERSITY, ISLAMABAD

No. Date:

SUPPLY ORDER

Dear Sir(s)

41
Your quotation tender No. ___________dated____________has been
accepted for supply of the following stores on the terms and conditions as
given below:

PARTICULARS OF STORES
No. Description Unit Price Quantity Amount
Ordered

Total in words (Rupees ____________________________________________)

1) The date of delivery is__________________. In case you fail to


supply the stores within the delivery date or the delivery date has not
been extended by this office an I. D @ 2% per month of the total value of
the contract will automatically be imposed without any notice.

2) Delivery of stores will be free of charges

3) Part supply allowed/not allowed

4) Place of inspection

5) Inspection Officer

6) Payment will be made on submission of your bill in triplicate to


this University after satisfactory completion of the supply order with a
copy of Inspection Certification/Delivery Challan.

APPENDIX-V
(See Rule-59)
FORM IIU FR-I
(See Rule 59 (e) (ix)

FORM OF AGREEMENT TO BE EXECUTED


AT THE TIME OF DRAWING LOAN FOR THE PURCHASE OF
MOTOR VEHICLE/MOTOR CYCLE/SCOOTER BICYCLE

AN AGREEMENT made _______________day of ___________________two


thousand and _____________________________________________________
BETWEEN __________________________________ of (hereinafter called the

42
Borrower, which expression shall include his legal representatives and
assignees) of the one part and THE PRESIDENT, IIU of the other part
WHEREAS the Borrower has under the provisions of University Financial
Rules 1992 (hereinafter referred to as the said Rule which expression shall
include any amendments thereof for the time being in force) applied to the
President of the University for a loan of Rs.___________for the purchase of a
Motor Vehicle/Motor-cycle/Scoter/Bicycle and President has agreed to lend the
said amount to the Borrower on the terms and conditions hereinafter contained
NOW IT IS HEREBY AGREED between the parties hereto that in consideration
of the sum of Rs.____________ paid by the President, IIU, to the Borrower (the
receipt of which the Borrower hereby acknowledges) the Borrower hereby
agrees with the President, IIU (1) to pay the President the said amount according
to the said Rules by monthly deductions from his salary as provided for by the
said Rules and hereby authorizes the President, IIU to make such deductions and
(2) within two months from the date of these present to expend the full amount
of the said loan in the purchase of a motor vehicle motor-cycle/scooter/bicycle
or if the actual price paid is less than the loan to repay the difference to the
President forthwith and (3) to execute a document hypothecating the said motor
vehicle/motor-cycle/scooter/bicycle to the President, IIU as security for the
amount lent to the Borrower as aforesaid AND IT IS HEREBY LASTLY
AGREED AND DECLARED that if motor vehicle/motor-cycle/scooter/bicycle
has not been purchased and hypothecated as aforesaid within two months from
the date of these presents or if the Borrower within that period becomes
insolvent or quits the service of the University the whole amount of the LOAN
(Qarz-e-Hasana) shall immediately become due and payable.

IN WITNESS where of the Borrower has hereunto set his hand the day
and year first before written.

Signed by the said in the presence of

FORM IIU FR-2


(See Rule 59 (e) (ix)

FORM OF MORTGAGE BOND FOR


MOTOR VEHICLE/MOTOR-CYCLE/SCOOTER LOAN

THIS INDENTURE made this______day of _______two thousand and


_______________BETWEEN________________________________________
HEREINAFTER CALLED “The Borrower” of the one part and the
PRESIDENT, IIU of the other part.
WHEREAS the Borrower has applied/applied for and has been granted
loan of Rs. _______________ to purchase a Motor vehicle/Motor Cycle/Scooter
on the terms of IIU Financial Rules, 1992 (hereinafter referred to as “the said

43
Rules” which expression shall include any amendment thereof or addition
thereto for the time being in force) AND WHEREAS one of the conditions upon
which the said loan has been/was granted to the Borrower is/was that the
Borrower will/would hypothecate the said Motor Vehicle/Motor-Cycle/Scooter
to the President, IIU as security for the amount lent to the Borrower AND
WHEREAS the Borrower has purchased with or partly with the amount so
advanced as aforesaid the Motor Vehicle/Motor-Cycle/Scooter particulars
whereof are set out in the Schedule hereunder written.
NOW THIS INDENTURE WITNESSETH that in pursuance of the
said agreement and for the consideration aforesaid the Borrower doth hereby
covenants to pay to the President, IIU the sum of Rs._______________
aforesaid or the balance thereof remaining unpaid at the date of these presents
by equal payments of Rs. _______________ each on the first day of every
month according to the said Rules and the Borrower doth agree that such
payments may be recovered by the monthly deductions from his salary in the
manner provided by the said Rules, and further pursuance of the said agreement
the Borrower doth hereby assign and transfer unto the President, IIU the Motor
Vehicle/Motor-Cycle/Scooter the particulars whereof are set out in the Schedule
hereunto written by way of security for the said loan as required by the said
Rules.
And the Borrower doth hereby agree and declare that he has paid in full the
purchase price of the said Motor Vehicle/Motor-Cycle/Scooter and that the same
is his absolute property and that he has not pledged and so long as any money
remain payable to the President, IIU in respect of the paid loan will not sell,
pledge or part with the property in or possession of the said Motor Vehicle/
Motor-Cycle/Scooter PROVIDED ALWAYS and it is hereby agreed and
declared that if any of the said installments of principal shall not be paid or
recovered in manner aforesaid within ten days after the same are due or if the
Borrower shall at any time cease to be in University service or if the Borrower
shall sell or pledge or part with the property in or possession of the said Motor-
Vehicle or become insolvent or make any composition or arrangement with his
creditors or if any person shall take proceedings in execution of any decree or
judgment against the Borrower the whole of the said principal sum which shall
then be remaining due and unpaid as aforesaid shall forthwith become payable
AND IT IS HEREBY AGREED and declared that the President, IIU may on the
happening of any of the events hereinbefore mentioned seize and take
possession of the said Motor Vehicle/Motor-Cycle/Scooter and either remain in
possession thereof without removing the same or else may remove and sell the
said Motor Vehicle/Motor Cycle/Scooter and either remain in possession thereof
without removing the same or else may remove and sell the said Motor
Vehicle/Motor-Cycle/Scooter either by public auction or private contract and
may out of the sale money retain the balance of the said loan than remaining
unpaid as aforesaid and all costs, charges, expenses and payment properly
incurred or made in maintaining, defending or realizing his rights hereunder and

44
shall pay over the surplus if any, to the Borrower, his executors, administrators
or personal representatives PROVIDED FURTHER that the aforesaid power of
taking possession or selling or the said Motor Vehicle/Motor-Cycle/Scooter
shall not prejudice the right of the President, IIU to use the Borrower or his
personal representatives for the said balance remaining due in the case of the
vehicle being sold the amount by which the net sale proceeds fall short of the
amount owing AND the Borrower hereby further agrees that so long as any
moneys are remaining due and owing to the President he, the Borrower will
insure and keep insured the said Motor Vehicle/Motor- Cycle/Scooter against
loss or damage by fir, theft, or accident with an Insurance Company and will
produce evidence to the satisfaction of the University (Administration) that the
Motor Insurance Company with whom the said Motor Vehicle is insured have
received notice that the President is interested in the Policy AND the Borrower
hereby further agrees that he will not permit or suffer the said motor vehicle to
be destroyed or injured or to deteriorate in a degree then it would deteriorate by
reasonable wear and tear thereof AND further that in the event of any damage or
accident happening to the said Motor vehicle the Borrower will forthwith have
the same repaired and made good.
IN WITNESS whereof the said_______________ (borrower) hath
hereunto set his hand the day and the year first above written
THE SCHEDULE
Description of Motor Vehicle/Motor-Cycle/Scooter
Maker’s Name
Description
No of Cylinders
Engine Number
Chassis No
Cost Price
SIGNED by the Borrower
In the presence of __________________________________
FORM-IIU-FR-3
(See Rule 59(e) (ix)

FORM OF AGREEMENT TO BE EXECUTED AT THE TIME OF


DRAWING A LOAN FOR CONSTRUCTING A HOUSE

AN AGREEMENT MADE ______day _____, two thousand and


BETWEEN________________________________________(hereinafter called
the Borrower, which expression shall include his legal representative and
assigns) of the one part and THE PRESIDENT OF IIU (hereinafter called the
President) of the other part AND WHEREAS the Borrower has under the

45
provisions of University Financial Rules (Hereinafter referred to as the said
Rules which expression shall include any amendments thereof for the time being
in forced) applied to the President, IIU for a loan of Rupees_______________
(to enable him to erect a house and the President has agreed to lend the said sum
of Rupees)_________________ to the Borrower on the terms, conditions and in
the manner hereinafter contained.

NOW IT IS HEREBY AGREED between the parties that in


consideration of the sum of Rupees ____________ paid by the President, IIU to
the Borrower by two installments as entered and receipted by him as per
schedule hereto and the Borrower shall:

1) repay the President, IIU the full amount of the loan due by
monthly deductions from his salary as provided for by the said
Rule and hereby authorizes the President to make deduction
accordingly.

2) expend the installments of the loan towards erection of building


on the land at least to the plinth stage within three months of the
payment of the first installment hereunder (hereinafter called
“the prescribed period”) and

3) execute within the prescribed period a document mortgaging the


said house erected upto the plinth stage and thereafter to be
erected thereon to the President as security for the amount lent
and to be lent to the Borrower as aforesaid in the form provided
by the said Rule AND IT IS HEREBY FURTHER AGREED that
the Borrower shall immediately after obtaining the first
installment commence and erect on the land a suitable house for
his own use AND IT IS HEREBY LASTLY AGREED AND
DECLARED that if the Borrower does not within the prescribed
period build the house and mortgage the same as aforesaid, or if
the Borrower commits any other breach of this Agreement on
becomes insolvent or quits the service of the University the
entire unpaid balance of the loan shall immediately become due
and payable

IN WITNESS whereof the Borrower has hereto set his hand the day and year
first before written SIGNED by the said Borrower:

In the presence of
SCHEDULE
Sr. Date Amount of installment in words Signature of the
No and figures Borrower

46
FORM-IIU-FR-4
(See Rule 59 (e) (ix)

FORM OF MORTGAGE

THIS INDENTURE made the ___________ day of __________ two thousand


and _________________ Between ______________________ of __________
an employee of ____________(hereinafter referred to as the mortgagor which
term shall where the context so admits include his heirs, executors,
administrators and assigns) of the one part and the PRESIDENT, IIU
(hereinafter referred to as the mortgage which term shall where the context so
admits include his successors and assigns) of the other part.

47
WHEREAS the mortgagor is absolutely sized and possessed of or
otherwise well entitled to the land hereditaments and premises hereinafter
described and expressed to be hereby conveyed transferred and assured
(hereinafter referred to as the said hereditament).

AND WHEREAS the mortgagor has applied to the mortgagee for loan
of the sum of Rs. _____________ for the purpose of enabling him to defray the
expenses of building a house on the said hereditaments as a suitable residence
for his own use.

AND WHEREAS under the provisions contained in Rule of the IIU


Financial Rules 1992 (hereinafter referred to as the said Rules which expression
shall where the context so admits include any amendment thereof or addition
thereto for the time beings in force) the mortgagee has agreed to lend to the
mortgagor the said sum of Rs. ____________ on or before the execution of
these presents and the balance on completion of plinth level to be payable after
certificate by the Administration.

NOW THIS INDENTURE WITNESSETH that in pursuance of the


said agreement and in consideration of the sum of Rs. ____________ paid on or
before the execution of these presents to the mortgagor by the mortgagee (the
receipt whereof the mortgagor doth hereby acknowledge) for the purpose of
enabling the mortgagor to defray the hereinbefore recited expenses the
mortgagor hereby covenants with the mortgage to repay to mortgagee the said
sum of Rs. ____________ (and such further sums as shall hereafter be paid by
him to the mortgagor pursuant to the hereinbefore recited agreement in that
behalf) according to the Rules on the _______________day of
______________AND THIS INDENTURE ALSO WITNESSETH that for the
consideration aforesaid the mortgagor doth hereby convey transfer and assure
into the mortgage ALL that piece of land situated in the _________
district___________ a registration district of ________________ sub-
registration district of ____________ containing ________________ more or
less now in the occupation of the mortgagor and bounded on the North by
_______________ on the south by ________________ on the East by
_______________ and on the west by _________________ together with the
dwelling house and the out offices, cook rooms and out buildings now erected
on he said piece of land together with all rights, easements and appurtenance to
the said hereditaments or any of them belonging TO HOLD the Said
hereditaments will their appurtenances including all erections and buildings
hereafter erected and built on the said piece of land unto and to the use of
mortgagee absolutely subject to the proviso for redemption hereinafter
contained PROVIDED ALWAYS that if and as soon as the said loan of
rupee___________________ made upon the security of these presents shall
have been repaid according to the said Rules by the deduction of monthly
installments of salary of the mortgagor or as he may direct AND it is hereby

48
agreed and declared that if there shall be service before the said sum of
Rupees___________ made upon the security of these presents shall have been
repaid according to the said Rules by the deduction of monthly installments of
the salary of the mortgagor as in the said Rules mentioned or by any other
means whatsoever then and in such case the mortgage will upon the request and
at the cost of mortgagor re-convey, retransfer or re-assure the said hereditaments
unto and to the use of the mortgagor or as he may direct AND it is hereby
agreed and declared that if there shall be any breach by the mortgagor covenants
on his part herein contained or if he shall quit the service before the said sum of
rupees____________ (and any further sum as may have been paid as aforesaid
according to the said Rules shall have been fully paid off then and in any of such
cases if shall be lawful for the mortgage to sell the said hereditaments or any
part thereof either together or in parcels and either by public auction or by
private contract with power to buy in or rescind any contract for sale and to re-
sale without being responsible for any loss which may be occasioned thereby
AND to do and execute all such acts and assurances for effectuating any such
sale as the mortgage shall think fit AND it is thereby declared that the receipt of
the mortgage for the purchase money of the premises sold or any part thereof
shall effectually discharge the purchaser or purchasers there from AND it is
hereby declared that the mortgagee shall hold the money to arise from any sale
in pursuance of the aforesaid power UPON TRUST in the first place there out
to pay all the expenses incurred on such sale and in the next place to apply such
moneys in or toward satisfaction of the moneys for the time being owing on the
security of these presents and then to pay the surplus (if any) to the mortgagor
AND is hereby agreed and declared that the said Rules shall be deemed and
taken to be part of these presents.

The mortgagor hereby covenants with the mortgagee that he the


mortgagor will during the continuance of this security observe and perform all
the provisions and conditions of the said Rules on his part to be observed and
performed in respect of these presents and the said hereditaments.

IN WITNESS, whereof the mortgagor, hath hereunto set his hand the
day and year first above written.

Signed by the said (Mortgagor)


In the presence of

1st witness
Address
Occupation

2nd witness
Address
Occupation

49
(The deed should be registered)
Note: There must be two witnesses to a mortgage

FORM IIU FR-5


(See Rule 59 (e) (ix)

FORM OF RE-CONVEYANCE FOR HOUSE BUILDING LOAN

This indenture made the __________ day of ___________ Two


thousand and ________________________BETWEEN THE PRESIDENT, IIU
(hereinafter called the President) of the one part and ______________ a
University employee of __________________ (hereinafter called the
mortgagor) the other part is supplemental to an Indenture of mortgagor dated the
________ day of ____________Two thou and _____________ made
BETWEEN the mortgagor of the one part and the President, IIU, of the other
part and registered at ____________ in Book _____________

50
Volume__________ Pages_________ to ____________ No __________ for
_____________ (hereinafter called the PRINCIPAL INDENTURE WHEREAS
all moneys due and owing on the security of the PRINCIPAL INDENTRE have
been fully paid and satisfied and the President has accordingly at the request of
the mortgagor agreed to execute such re-conveyance of the mortgaged premises
in the within written INDENTURE comprised as is hereinafter contained. NOW
THIS INDENTURE WITNESSETH that in pursuance of the said agreement and
in consideration of the premises the President doth here granted assign and
recovery unto the mortgagor, his heirs, executors, administrators and assign
ALL THAT the piece of land situate in the _______________ containing
________________ more or less bounded on the North by ______________ on
the South by _________________ on the East by ____________ and on the
West by ______________ together with dwelling-house thereon AND ALL and
singular other the premises in the PRINCIPAL INDENTURE comprised or
expressed to be thereby assured or which now are by any means vested in the
President subject to redemption under or by virtue of the PRINCIPAL
INDENTURE expressed and all the estates right title interest property claim and
demand whatsoever of the President into out of or upon them same premises by
virtue of the PRINCIPAL INDENTURE to have and to hold the premises
hereinbefore expressed to be hereby granted assigned and re-conveyed unto and
to the use of the mortgagor his heirs, executors, administrators and assigns for
ever freed and discharged from all moneys intended to be secured by the
PRINCIPAL INDENTURE and from all actions, suits accounts, claims and
demands for, or in respect of, the said moneys or any part thereof or, for, or in
respect of, the PRINCIPAL INDENTURE or of anything relating to the
premises AND the President hereby covenants with the mortgagor his heirs,
executors, administrators and assign that the President has not done or
knowingly suffered or been party or privy to anything whereby the said
premises or any part-thereof are, is or can be impeached, encumbered or
affected in title estate or otherwise howsoever.

INWITNESS whereof the parties here to have hereunto set their hands
and seals the day and year first above written.

Signed sealed and


Delivered by _______
For and on behalf of the
President of the IIU
In the presence of

51
FORM IIU FR-6
(See Rule 59 (e) (ix)

FORM OF AGREEMENT TO BE EXECUTED AT THE TIME OF


GRANT OF LOAN FOR THE PURCHASE OF A BUILT HOUSE

AND AGREEMENT MADE the _____________ day of


________________two thousand and
___________________________BETWEEN_________________ (hereinafter
called “the borrower” which expression includes his legal representatives and
assigns) of the one part and the President, IIU of the other part.

52
WHEREAS the borrower has agreed to purchase a house built by
_______ and situated in___________in the registration district of
____________sub-district________thana ________

Containing_________ more or less and bounded on the North by __________ on


the south by ___________ on the East by ___________ and on the West by
_________ for the sum Rupees

AND WHEREAS the borrower has under the provisions of rules of the
IIU Financial Rules, (hereinafter referred to as the said Rules which expression
shall include any amendments thereof for the time being in force), applied to the
President, IIU for a loan of Rupees _______ to enable the borrower to purchase
the said house and the President, IIU has agreed to lend the said sum of Rupees
___________ to the borrower on the terms and conditions hereinafter contained.

NOW IT IS HEREBY AGREED between the parties hereto that in


consideration of the sum of Rupees___________ advanced by the President, IIU
as loan to the borrower (the receipt of which the borrower hereby
acknowledges) the borrower hereby agrees__________________

1) to repay to the President, IIU the said amount according to the said
Rules by monthly deductions from his salary as provided in the
said Rules and authorizes the President, IIU to make such
deductions;

2) to expend within six months from the date of these presents, the
full amount of the said loan in the purchase of the house and if the
actual price paid for the house is less than the amount of loan, to
replay the difference to the President forthwith; and in the converse
of case to contribute the difference from his own resources;

3) to execute a document in the form provided by the said Rules


mortgaging the said Rules mortgaging the said house to the
President, IIU as security for the repayment of the amount of loan.

AND IT IS HEREBY LASTLY AGREED AND DECLARED that if


the said house has not been purchased or mortgaged as aforesaid within six
months from the date of these presents or if the borrower within that period
becomes insolvent or quits or is removed from service of the University the
entire amount of the loan or the balance remaining unpaid shall immediately
become due and payable in lumps sum to the President, IIU.

IN WITNESS where of the borrower has hereunto set his hand the day
and year first above

53
Signed By the said
In the presence of

FORM IIU FR-7


(See Rule 59 (e) (ix)

FORM OF MORTGAGE TO BE EXECUTED AFTER THE PURCHASE OF


A HOUSE BY UTILIZING LOAN ADVANCED BY THE UNIVERSITY

THIS INDENTURE MADE the ____________ day ______________


between ___________________S/O ________________ employed as
______________ in the ____________
(hereinafter referred to as the “mortgagor” which term shall where the context so
admits include his heirs, executors, administrators and assigns) of the other part
and the President, IIU (hereinafter called the “mortgagee”) of the other part.

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WHEREAS in pursuance of the provisions of the IIU Financial Rules,
1992 (hereinafter referred to as the said Rules, which expression shall where the
context so admits include any amendment thereof or addition thereto for the time
being in force), the mortgagee advanced a loan of Rs. ________
to the mortgagor to enable him to purchase for his residence a house constructed
by the ____________ and the mortgagor by an agreement dated _____________
(hereinafter called the said agreement) undertook to mortgage the house in favour
of the mortgagee to secure the repayment of said loan to the mortgagee.

AND WHEREAS the mortgagor, has by means of a registered deed


dated _____________ purchased a house with all that piece of land situated
________ in district of ___________measuring approximately _____ and
bounded on the North by ______________ on the South by __________on the
East by ____________ on the West by ____________ together with
appurtenances to the house hereinafter called the hereditaments.

NOW THIS INDENTURE WITNESSETH that in pursuance of the


said agreement and in consideration of the said sum of Rs. __________ paid to
him, the mortgagor does hereby convey transfer and assure upto the mortgagee
the said hereditaments together with all right and easements. To hold the
hereditaments including all erections and buildings hereafter erected and built
thereon unto and to the use of the mortgagee absolutely subject to the provision
for redemption hereinafter contained. Provided Always that if the said loan of Rs.
___________ shall have been repaid by the deduction of monthly installments
from the salary of the mortgagor as provided in the said Rules or by any other
means whatsoever then and in such case the mortgagee will upon the request and
at the cost of the mortgagor as provided in the said Rules or by any other means
whatsoever then and in such case the mortgagee will upon the request and at the
cost of the mortgagor re-convey, re-transfer or re-assure the hereditaments unto
and to the use of the mortgagor or as he may direct. AND It is hereby agreed and
declared that if there shall be any breach by the mortgagor of the covenants on
his part herein contained or if he shall quit or be removed from service before the
said sum of rupees ____________shall have been fully paid off then and in any
of such cases it shall be lawful for the mortgagee to sell the said hereditaments or
any part thereof either together or in parcels and either by public auction or by
private contract with power to buy or rescind any contract for sale and to resell
without being responsible for any loss which may be occasioned thereby AND to
do and executed all such acts assurances for effectuating any such sale as the
mortgagee shall think fit AND it is hereby declared that the receipt of the
mortgagee for the purchase money of the premises or any part thereof sold by
him shall effectually discharge the purchases or purchasers thereof AND it is
hereby declared that mortgagee shall hold the moneys to arise from any sale in
pursuance of the aforesaid power UPON TRUST in the 1 st place there out to pay
all the expenses incurred on such sale and in the next place to apply such moneys

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in or towards satisfaction of the moneys for the time being owning on the
security of these present and then to pay the surplus (if any) to the mortgagor
AND it is hereby agreed and declared that said Rules shall be deemed and taken
to be part of these presents.

The mortgagor hereby covenants with the mortgagee that mortgagor


will during the continuance of this security observe and perform all the
provisions and conditions of the said Rules on his part to be observed and
performed in respect of these presents and the said hereditaments.

IN WITNESS whereof the mortgagor has hereto set his hand the day
and year first above written

SIGNED by the said (Mortgagor)

In the presence of

1st witness
Address
Occupation

2nd witness
Address
Occupation

(the deed should be registered)


NOTE: There must be two witnesses to a mortgagee

APPENDIX-VI
(See Rule 58-A)

PROCEDURE FOR LOST/MISPLACED UNIVERSITY CHEQUES

1) The concerned drawing and Disbursing Officer shall immediately


be informed in writing after the cheque is lost/misplaced.

2) The person concerned will request in writing to the Drawing and


Disbursing Officer for issue of new cheque in lieu of
lost/misplaced cheque.

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3) In writing to the Drawing and Disbursing Officer concerned to the
effect that if at any later stage lost/misplaced cheque is found that
will be returned to the Drawing and Disbursing Officer.

4) On receipt of information about the lost cheque the concerned


Drawing and Disbursing Officer shall immediately intimate in
writing (as well as on telephone) to the bank about the loss cheque
(giving full particulars of the lost cheque) advising the bank to stop
the payment of lost cheque if presented for payment. Proper
record of the complaints lodged with the Drawing and Disbursing
Officer for lost/misplaced cheques will be maintained by the
concerned Account Section.

5) The concerned Drawing and Disbursing Officer, with the approval


of the President will arrange issue of new cheque in lieu of
lost/misplaced cheque after fourteen days ensuring from the bank
that lost cheque has not been en-cashed.

6) The concerned Drawing and Disbursing Officer will/ensure that


lost/misplaced cheque is not accounted for in the record as
payment.

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