(1) In every aided school, there shall be a fund, to be called as the school fund which shall include the following:—
(a) any aid granted by the Government;
(b) income accruing to the school by way of fees, charges or other payments; and
(c) any other contribution, sale of property, rent from property, endowments and the like.
(2) The school fund and all other funds including the pupils fund established with the approval of the Government, shall be accounted for and operated in accordance with the rules made under this Act.
(3) In every recognised un-aided school, there shall be a fund, to be called the “Recognised Un-aided School Fund”.
It shall include the following:—
(a) fees;
(b) any charges and payment which may be realised by the school for other specified purposes; and
(c) any other contributions, endowments, gifts and the like.
(4) (a) Income derived by un-aided schools by way of fees shall be utilised only for such educational purposes as may be prescribed; and
(b) charges and payments realised and all other contributions, endowments and gifts received by the school shall be utilised only for specific purpose for which they were realised or received. The unspecified gifts shall also be used for academic purpose.
(5) The Managing Committee of every recognised private school shall file every year with the Director such duly audited financial and other returns as may be prescribed and every such return shall be audited by such authority as may be prescribed.