Rule 238 — GFR

Rule 238 (1) Utilization Certificates. In respect of non-recurring Grants to an Institution or Organisation, a certificate of actual utilization of the Grants received for the purpose for which it was sanctioned in Form GFR 12-A, should be insisted upon in the order sanctioning the Grants-in-aid. The Utilization Certificate in respect of Grants referred to in Rule 230 (10) should also disclose whether the specified, quantified and qualitative targets that should have been reached against the amount utilised, were in fact reached, and if not, the reasons therefor. They should contain an output-based performance assessment instead of input-based performance assessment. The Utilization Certificate should be submitted within twelve months of the closure of the financial year by the Institution or Organisation concerned. Receipt of such certificate shall be scrutinised by the Ministry or Department concerned. Where such certificate is not received from the Grantee within the prescribed time, the Ministry or Department will be at liberty to blacklist such Institution or Organisation from any future grant, subsidy or other type of financial support from the Government.

Rule 238 (2) In respect of recurring Grants, Ministry or Department concerned should release any amount sanctioned for the subsequent financial year only after Utilization Certificate on provisional basis in respect of Grants of preceding financial year is submitted. Release of Grants-in- aid in excess of seventy five per cent of the total amount sanctioned for the subsequent financial year shall be done only after utilisation certificate and the annual audited statement relating to Grants-in-aid released in the preceding year are submitted to the satisfaction of the Ministry/Department concerned. Reports submitted by the Internal Audit parties of the Ministry or Department and Inspection Reports received from Indian Audit and Accounts Department and the performance reports if any received for the third and fourth quarter in the year should also be looked into while sanctioning further Grants. [

Note: As a special measure Scientific Departments are permitted to release subsequent Grants in aid on receipt of UCs confirming utilization of 75% of the total value of previous Grant

(s) from a Grantee Body.]2 of Earth Sciences, Defence Research and Development Organisation. [Amendment notes: 2 Inserted vide DoE OM No. F.No. 1(10)/E.IIA/2015 dated 31.07.2017. The Scientific Ministries/ Departments are Department of Science and Technology, Department of Bio- technology, Department of Scientific and Industrial Research, Department of Atomic Energy, Department of Space, Ministry]

Rule 238 (3) Utilization certificates need not be furnished in cases where the Grants-in- aid / CFA are being made as reimbursement of expenditure already incurred on the basis of duly audited accounts. In such cases the sanction letters should specify clearly that the Utilization Certificates will not be necessary.

Rule 238 (4) In respect of Central Autonomous Organisations, the Utilization Certificate shall disclose separately the annual expenditure incurred and the funds given to suppliers of stores and assets, to construction agencies, to staff for (House Building and Purchase of conveyance) which do not constitute expenditure at that stage but have been met out of Grants and are pending adjustments. These shall be treated as unutilized Grants allowed to be carried forward. While recording the Grants in the subsequent year the amount carried forward shall be taken into account.

Rule 238 (5) In the case of Private and Voluntary Organizations receiving recurring Grants- in-aid from Rupees ten lakhs to less than Rupees fifty lakhs, all the Ministries or Departments of Government of India should include in their Annual Report a statement showing the quantum of funds provided to each of those organizations and the purpose for which they were utilized, for the information of Parliament. The Annual Reports and accounts of Private and Voluntary Organizations receiving recurring Grants-in-aid to the tune of Rupees fifty lakhs and above should be laid on the Table of the House within nine months of the close of the succeeding financial year of the Grantee Organisations.

Rule 238 (6) In the case of organizations receiving one-time assistance or non-recurring Grants as Grants-in-aid from Rupees ten lakhs to Rupees five crore, all Ministries or Departments of Government of India should include in their Annual Reports, statements showing the quantum of funds provided to each of these organizations and the purpose for which the funds were utilized, for the information of Parliament. The Annual Reports and Audited Accounts of Private and Voluntary Organizations or societies registered under the Registration of Societies Act, 1860, receiving one-time assistance/non-recurring Grants of Rupees Five Crore and above should also be laid on the Table of the House, within nine months of the close of the succeeding financial year of the grantee Organisations. [

Note: Increase in monetary ceiling in laying of Annual Reports and Audited Accounts of various organisations receiving funds from Govt. of India]3.