Registration Under Rules for Grant-in-Aid to Voluntary Agencies

Rule 5(a) – Application for Grant-in-Aid

Every voluntary agency seeking government funding for the welfare of physically or mentally handicapped persons must be registered under the Societies Registration Act. The agency must submit an application to the Director of Social Welfare, accompanied by the audited expenditure statement for the previous year, in the format specified in the rules’ schedule.

Rule 5(b) – Government Approval for Recognition

After examining the application, the Director forwards recommendations for recognition to the State Government. Recognition must be formally approved by an officer not below the rank of Secretary.

Rule 5(c) – Budget Approval Process

The initial budget of any newly recognized agency must be approved by the Government. Subsequently, the Director may approve the annual budgets, provided they fall within the overall ceiling limits as per the Government’s detailed head-wise sanctions.

• Agencies with annual expenditure between ₹20,000 and ₹50,000 require Government budget approval every fourth year.
• Agencies with expenditures of ₹50,000 or more need annual Government approval.

Rule 5(d) – Disbursement of Grant

The Director is authorized to release annual grant-in-aid to voluntary agencies, based on the approved budget and after a thorough review of the agency’s performance in the preceding year. Verification of compliance and effectiveness is a prerequisite for further disbursement.

Rule 6 – Eligibility Criteria for Receiving Grant-in-Aid

Is registered as Public Society under the Registration of Societies Act or is a branch of an all India Body and recognised by the Director or by the Government and agrees to abide by and satisfies the following conditions

1. 1. that the grant-in-aid shall be sanctioned on the expenditure incurred for the purpose for which the agency is recognised.
   2. that the agency receiving the grant shall not in any way directly or indirectly utilize the grant for the profit of any individual or section of people unless in the later case, it is allowed in pursuance of recognised policy of the Government. Funds of the agency shall not be used for party political or anti-Government propaganda and if this condition is contravened further grant will be withheld and the organisation shall refund the grant already received by them. The Voluntary Agency shall invest its funds preferably in Government securities of the State Bank of India, the Post Office Savings Bank or any Scheduled Bank or Small Savings Schemes or any such scheme as may be approved.
   3. that the buildings and other assets which have been constructed, or will be constructed; accumulated or other material which have been purchased, or will be purchased wholly or partly from the funds of grant-in-aid shall revert wholly and unconditionally except the consumable and perishable material to the Government as soon as the agency ceases to function or its recognition is withdrawn. An undertaking to this effect shall be taken from the Voluntary agency. The assets shall not, without the proper sanction of the Government, be disposed of encumbered or utilised for purposes other than those for which the grants are sanctioned.
   4. that the record and accounts are properly kept and are always open to inspection and audit by persons authorised by the Social Welfare Department for the purpose, the Accountant General or the Local Funds Audit Department.
   5. that the information required by the department is punctually and correctly furnished.
   6. that it serves a useful purpose in the opinion of the department and the facilities provided by it are available to all persons for whom the grant has been sanctioned.
   7. that the Agency shall produce accounts of the grant-in-aid given by Social Welfare Department separately after the completion of each financial year duly audited by a firm of Chartered Accountants the manner and form prescribed by the Department.
   8. that the Government or the Director may nominate a person as a member of the Managing Body. Such nominee shall be associated with the formulation, execution and successful implementation of the scheme approved for grant-in-aid.
   9. Payment during the first half of the year may be released to the extent of actual expenditure incurred by the Voluntary Agency during the corresponding part of the previous year, as per accounts submitted in accordance with the approved budget. The last instalment shall be released only after receipt of the audited accounts of the previous year along with the utilisation certificate, but the total grant for the year shall not exceed the percentage sanctioned: Provided that in case approval of the budget is delayed, payment in the first and second quarters may be released as above, subject, however, to a ceiling of ninety percent of the expenditure incurred during the corresponding quarters of the last year.

Part I – shall deal with regular budget containing items already approved as admitted expenditure during the last year and part II shall consist of “New Items” not included for approval as admitted expenditure.

The Director or the Officer authorised in this behalf shall then scrutinise each item of the budget and shall direct the institution for curtailing or deleting the same for purposes of claiming of grant-in-aid which the agency shall consider for deleting. However, if any such institution even after receiving a reference include such item in the budget the Director shall be at a liberty to curtail the same.

1. 1. that any change in the personnel by the Governing Body are promptly reported.
   2. that its financial resources, when supplemented by grant-in-aid shall be adequate to enable it to carry on its work efficiently.
   3. The institution shall not be closed down or downgraded without at least one full academic year’s notice being given to the Department. Such notice shall contain (i) the reasons of the intended closure or down grading and (ii) the list of all the assets held by it.