UGC records irregularities worth Tk 165 crore in a year
Irregularities worth around Tk 165 crore occurred at the University Grants Commission (UGC) during the 2024–25 fiscal year.
The irregularities included expenditure beyond allocation, unplanned expenditure, excessive overtime and fuel use, irregular withdrawal of advances, violations of procurement rules and failure to maintain accounts of government funds properly.
These findings were revealed in an audit report by the Directorate of Education Audit.
Expenditure beyond allocation
During the 2024–25 fiscal year, the UGC had budget allocation of Tk 85 crore 2 lakh 50 thousand under various sectors. Against this allocation, the UGC showed expenditure of Tk 113 crore 25 lakh 53 thousand 671. Due to expenditure beyond allocation, the government suffered a loss of Tk 28 crore 23 lakh 3 thousand 671.
According to the ‘Delegation of Financial Powers 2015’ policy of the Expenditure Control and Internal Audit Wing of the Ministry of Finance, the expenditure should be kept in a control under the relevant budget code.
Discrepancies in income and expenditure accounts
During the 2024–25 fiscal year, the receipts and payments were incorrectly recorded in the UGC’s cash book. The audit found that income had been presented as expenditure and expenditure as income. According to the Directorate of Education Audit, it violated the Treasury Rules.
Audit memo on irregular expenditure on procurement of goods and services through the RFQ method. Photo: Asia Post
Excessive advance withdrawals
Various UGC officials withdrew advances of Tk 64 lakh 2 thousand 155 beyond the prescribed limit. According to the instructions of the Finance Division, any one-time advance withdrawal exceeding Tk 7 lakh has to be referred to the Finance Division of the Ministry of Finance. However, the UGC did not follow this procedure.
While this, the UGC spent Tk 80 lakh 33 thousand 728 on the procurement of goods and services through the Request for Quotation (RFQ) method. Irregularities of Tk 65 lakh 33 thousand 728 occurred as the expenditure exceeded the annual procurement limit.
Irregularities worth Tk 83 crore in bank accounts
The government incurred irregular expenditure of Tk 83 crore 68 lakh 10 thousand through the UGC due to the failure to maintain their bank accounts properly.
According to a circular issued by the Finance Division of the Ministry of Finance, all autonomous institutions and projects or schemes under them are required to conduct their financial activities via Personal Ledger (PL) accounts. The Finance Division has instructed that the funds be released automatically via the iBAS++ sub-module and bills be paid through the Electronic Fund Transfer (EFT) system. However, the UGC did not follow this procedure.
Expenditure without budget allocation
During the 2024–25 fiscal year, the UGC spent Tk 7 lakh 75 thousand 375 for an Annual Performance Agreement (APA) event. Although vouchers were used to pay the expenditure, there was no budget allocation for it.
Under the Budget Management Act, funds allocated in the annual budget cannot be spent for other purposes apart from what had been specified in the allocation. The expenditure was thus considered wasteful as the purpose of the allocation was changed.
Audit memo on irregular expenditure due to the UGC’s failure to properly maintain bank accounts. Photo: Asia Post
In addition, the UGC had committed a financial irregularity of Tk 4 lakh 15 thousand by renting out a building at a rate below the prescribed rate in violation of the instructions from the Ministry of Housing and Public Works.
Tk 17 crore spent without procurement plans
During the 2024–25 fiscal year, the UGC spent Tk 16 crore 72 lakh 10 thousand. However, the demand documents under the annual procurement plan were not presented to the audit team against these expenditures.
According to the ‘Delegation of Financial Powers 2015’ policy, an annual procurement plan must be prepared and approved by the head of the procuring authority.
As the UGC failed to follow this rule, the Directorate of Education Audit identified the Tk 16 crore 72 lakh 10 thousand expenditure as irregular expenditure and an irregularity.
Tk 9 crore shown as spent despite no actual expenditure
Tk 9 crore released under the government’s scholarship and merit scholarship programmes was transferred from the UGC’s recurrent fund bank account to the account of the foreign PhD fund. The Tk 9 crore was shown as expenditure under the foreign scholarship programme for teachers of the income-expenditure statement.
However, there was no actual expenditure incurred under this sector. The unspent amount was also not shown as the closing balance.
According to the University Grants Commission Ordinance, 1973, the Commission is required to prepare its accounts in a prescribed format at the end of every fiscal year and has to submit them to the Comptroller and Auditor General.
However, the income-expenditure statement submitted to the audit team showed the released funds as expenditure. As the Tk 9 crore shown as expenditure under the foreign PhD scholarship programme was not actually spent, the government suffered a financial loss of Tk 9 crore.
Irregularities in electricity and water bills
According to the UGC’s budget circular, the officials and employees residing in Commission housing are not entitled to any subsidy on electricity and water bills. However, in violation of the directive, the UGC paid electricity and water bills for the residential quarters, resulting in a financial loss of Tk 10 lakh 29 thousand 635 for the government.
The UGC also incurred irregular expenditure of Tk 94 lakh 76 thousand 230 on the supply and replacement of electrical equipment and related services. The approval of RAJUK was required for such work, but it was not obtained. The audit department identified the expenditure as an irregularity.
Audit memo on government revenue loss caused by payment of bills to contractors. Photo: Asia Post
Tk 23 crore revenue loss in JU project
The audit found major irregularities in various packages of construction works implemented under the development project of Jahangirnagar University.
Although the contractors failed to complete the work within the stipulated time under their contracts, no delay penalty was imposed and their bills were paid. As a result, the government suffered a revenue loss of Tk 23 crore 41 lakh 86 thousand 541.
According to the report, the contractual deadlines for completing the work had already expired by 481 days to 1,028 days by the time of the audit.
Excessive fuel use
During the 2024–25 fiscal year, the UGC used more vehicle fuel than its entitlement, causing a financial loss of Tk 5 lakh 85 thousand 802 for the institution.
According to the instructions from the Ministry of Establishment and Public Administration, officials entitled to use vehicles on a full-time basis are eligible for 200 litres of octane-diesel and 300 cubic metres of CNG per month. However, the bills for fuel used exceeded the entitlement, resulting in the financial loss.
Irregularities in overtime and honoraria
Third- and fourth-class employees were paid overtime despite not being entitled to it, causing a financial loss of Tk 36 lakh 95 thousand 561.
In addition, advances provided to various levels of the University Grants Commission officials and employees were not adjusted, resulting in financial irregularities of Tk 40 lakh 92 thousand 579.
Audit memo on financial loss caused by expenditure beyond the budget allocation. Photo: Asia Post
The UGC paid Tk 43 lakh 9 thousand 176 as honoraria to UGC professors from the officials’ salary budget, in violation of directives from the Ministry of Finance and the Ministry of Public Administration.
In addition, financial irregularities of Tk 2 lakh 28 thousand took place as officials received mobile allowances despite not being entitled to it.
Officials unwilling to take responsibility
When contacted for comments on the irregularities worth more than Tk 150 crore in a single fiscal year, UGC Chairman Professor Dr Mamun Ahmed asked Asia Post to contact an official from the audit department.
UGC Director (Current Charge) of the Audit Department Nahid Sultana told Asia Post, “We have submitted our written replies to the objections raised by the Directorate of Education Audit concerning various financial matters.”
When UGC Secretary Md Fakhrul Islam was asked about the financial irregularities, he hung up the phone after he heard the question.
Call for action against those responsible
Former adviser to the caretaker government Rasheda K Chowdhury told Asia Post, “The financial irregularities at the UGC cannot be accepted. Action must be taken against those involved in these irregularities.”