The HRD ministry has given in-principle approval to new accounting norms for educational institutions to ensure transparency in functioning and better governance.
The new accounting norms to be applicable from 2013 would mean that all educational institutions affiliated to Central Universities, Central Bureau of Secondary Education (CBSE) and under control of central regulators will have to ensure accounts for money received from tuition fees, other fee sources, the corpus and annual expenditure in a transparency manner.
The new norms prepared by accounting regulator the Institute of Chartered Accountants in India (ICAI) would mean that all educational institutions would be mandated to apply an accrual basis and fund-based accounting.
"All educational institutions should follow a common format for presentation of its general purpose financial statements to ensure proper accountability, financial discipline, end-use of funds and to meet the needs of stakeholders. The accounting standards should enable the society, the student and the citizen," the ICAI said in a statement.
HRD minister Kapil Sibal said the ministry will hold consultation with the educational institutions on the new norms before enforcing them from 2013.