(1) The annual accounts and balance sheet of the University shall be prepared under the direction of the Executive Council and all accruing amount by the University from whatever source and all amounts disbursed or paid shall be entered in the accounts maintained by the University.
(2) A copy of the annual accounts and the balance sheet shall be submitted to the State Government which shall cause the same to be audited.
(3) The annual accounts and the balance sheet audited shall be printed and copies thereof shall together with copies of the audit report be submitted by the Executive Council to the Board of Governors for audit.
(4) The Executive Council shall also prepare, before such date as may be prescribed, the budget for the ensuing year.
(5) Every item of new expenditure above such amounts as may be prescribed which is proposed to be included in the budget shall be referred by the Executive Council to the Finance committee which may make recommendations thereon.
(6) The Executive Council shall after considering the recommendations if any of the Finance Committee approve the budget finally.
(7) The annual accounts, the balance sheet and the audit report shall be considered by the Board of Governors at its annual meetings and the Board of Governors may by resolution make recommendations with reference thereto and communicate the same to the Executive Council.
(8) It shall not be lawful for the Vice-Chancellor or the Executive Council to incur any expenditure: -
(a) either not sanctioned in the budget or in the case of funds granted to the University subsequent to the sanction of the budget by the State Government or the Government of India or the University Grants Commissions or any international organization or foundations save in accordance with the terms of such grant:
Provided that notwithstanding anything in sub-section (7) of section12, the Vice-Chancellor may in the case of fire, flood, excessive rainfall or other sudden or unforeseen circumstances, incur non-recurring expenditure not exceeding rupees 5.00 lacs and he shall immediately inform the State Government in respect of all such expenditure.
(b) on any litigation in opposition to any order of the Chancellor or of the State Government purporting to be made under this Act.