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Finance Wing

      At the time of inception of HUDA in 1977, the Assests and Liabilities of the Urban Estate department were transferred to HUDA. Since then HUDA is carrying out its activities by circulation of funds.

 

1. Sources of inflow of funds:

           i.The main source of inflow of funds in HUDA is through sale of plots. The receipt from sale of plots is collected by Estate Offices and pooled in Head office through collection and transfer accounts maintained with banks by the respective Estate Offices.

          ii. The other source of receipt is External Development Charges (EDC) from colonizers/release of land. The EDC is charged from the colonizers who obtaines the license from the Govt. of Haryana for development of land in Urban Estates developed by HUDA and use/requires the services like W/S, SEW, SWD, Roads and other town level facilities provided by HUDA. Similarly development charges are charged from those land owners whose land is released from acquisition proceedings and they intend to use the facilities of external services laid by HUDA.

         iii.  Loans have also been given by NCRPB for carrying out development in the NCR Towns/Counter Magnet Area of NCR.

 

2.  Application/Out flow of funds:

         i.   Investment of funds in acquisition of lands enabling HUDA to generate more plots for public.

        ii.   Deployment of funds for development activities (External/internal) being carried out by Engineering Wing of HUDA.

        iii.   Administrative Expenditure.

        iv.  Repayment of loans taken from NCR.

 

Functions:      

     1.  Land Acquisitions

              The funds are made available to all the LAO's in Haryana viz. LAO Faridabad, Gurgaon Rohtak, Hissar and Panchkula for acquisition of lands through bank authorization system. Under this system requirement of specific amount of award for acquisition of land with Administrative approval is received from LAO concerned for which funds are placed at the disposal of LAO's through bank authorizations. Cheque book is handed over to him for issue to land owners. The cheques are honoured by the bank upto the fixed amount of award. The funds are given to the banks as and when the cheques are received by him for payment. Proper accounts are maintained in the books of accounts of HUDA (HQ) and monthly reconciliation is carried out of these accounts.

 

    2.Price Fixation

             i.     Residential:

                          The residential plots are sold through draw of lots and the price is fixed on the basis of land acquisition cost, development cost (supplied by the Engineering Wing) after adding indirect charges such as Administrative Charges, escalation, unforeseen charges & Govt. Charges. The copy of price fixation formula is attached at Annexure 'A'.  The price is fixed as per approved formula of the Authority on No Profit No Loss basis.

           The price of EWS plots is kept at subsidized rates as under  :-

Gurgaon, Panchkula and           Rs.500/- per Sq.yd.

Ambala, Karnal, Panipat and Sonepat       Rs.400/- per Sq.yd.

For rest of Urban Estates                         Rs.300/- per Sq.yd.

The loss on accounts of subsidized rates is loaded in the price to be charged from the general public.

The price of left out residential plots is fixed on the basis of demand of plots and after adding the holder costs in the Urban Estates.

              The price so worked out is placed before the price fixation committee headed by Chief Administrator, HUDA with its members, Administrator (HQ), Zonal Administrator concerned, CCF HUDA, CE HUDA, CTP Haryana and CTP HUDA. The recommendations of the price fixation committee are submitted to the Chairman, HUDA for approval after which the plots are allotted for sale at the approved rates.

 

                      ii.    Commercial:

                             The commercial plots are sold through auction and the reserve price of commercial sites put to auction for the first time is calculated by finance wing as per the approved formula of the Authority which is an indicative price. The recommendations of the Zonal Administrator concerned are also obtained and the reserve price is approved by Chief Administrator. The copy of formula is annexured at annexure 'B'.

                The reserve price of commercial sites put to auction subsequently is fixed/approved by the Zonal Administrators on the basis of average auction price fetched in the previous auction on sector to sector and site to site basis.

                The price of institutional sites are worked out uniformly for a particular Urban Estate and got approved from the Authority.

                The price of Industrial sites are worked out for a particular sector of Urban Estate and got approved from the Authority.

                The price of religious sites are kept at 15% and Charitable sites at 50% of the price of Institutional sites.

                            The price of all the plots except those which are sold by auction is subject to  the stipulation that any enhanced  compensation in the land cost awarded by the Courts under Land Acquisition Act shall be payable by the allottees within the  period of 30 days of its demand by HUDA. However in order to facilitate the public, the enhanced compensation are also allowed to be paid in installments along with interest @15% p.a. as per policy available at Annexure 'C'.

   

       3.   Administrative approval of R/C/E of development works:

                 The R/C/E of development works in the land acquired and in possession of HUDA, prepared by Engineering Wing on the basis of HSR are processed and examined by finance wing. Availability of funds/sources of funds is also examined with reference to cost charged in the price fixation of the sector.  Administrative approval is taken from the competent authority as per detail under :-

                   i.   The R/C/E upto 50.00 lacs at the level of Zonal Administrator.

                  ii.  The R/C/E more than Rs.50.00 lacs and upto Rs.4.00 crores are approved by the Chief Administrator, HUDA.

                  iii.  The R/C/E more than Rs.4.00 crores and upto Rs.10.00 crores are approved by the Chairman.

                  iv.   The R/C/E more than Rs.10.00 crores are approved by  The Sub-Committee headed by Chairman, HUDA with its members FC(F), FCTCP, CA., HUDA., EIC PH 2 EIC  B & R.

                  After approval by the respective authorities at sr.no. ii, iii and iv above as the case may be, administrative approval is issued for taking further action by the Engineering wing of HUDA for execution of work. Separate estimates are approved for each work /EDC works.

 

       4.   Budget:

              Budget of the Authority is prepared annually to monitor and plan the receipt from the sale of plots and expenditure on the development works.  The budget of receipts heads is prepared by the Estate Offices and budget of development expenditure is prepared by the Engineer wing of HUDA. The consolidated budget is examined by Finance Wing and get approval from Chief Administrator/ FCTCP/ Chairman/ Authority. The receipts and expenditure is controlled/reviewed as per approved budget of the Authority on monthly basis.

The budget is prepared in the following manner :-

          i.  The projected targets of receipts are fixed keeping in view the receipts of installments of plots for the plot sold in the previous year, new sale of plots and new recovery of enhanced compensation in the current years. The project target of receipt of earnest money for floatation of new sectors in the current year and similarly targets of refund of earnest money for the plot floated in the previous year /current year are fixed.

          ii.  The budget of development expenditure is fixed in accordance with the estimates of continuing works, new orks and maintenance works /special repair of roads. Physical targets are also fixed for various development activities on the basis of financial targets.

         iii.  The target of Land Acquisition physical and financial is fixed and monitored through budget.

 

     5.    Release of funds for development/Admn. Exp:

               The funds are released by Finance Wing to the Engineering Wing for development expenditure and to the Estate Offices for administrative exp. on monthly basis as per approved budget and as per requisition received from all the field offices of HUDA.

 

    6.    Enhanced Compensation:

               The enhanced compensation awarded by the competent Courts are paid to the land owners by the office of Zonal Administrators for which requisite funds are provided by the Finance Wing of HUDA. The payment so made are to be recovered from the allottees , the rate of which is calculated  by the finance wing as per price fixation formula and after getting it approved from C.A, HUDA the same is conveyed to the respective E.O?s for recovery from the allottees. Separate accounts are maintained for payment and recoveries of E.C. in field offices as well as Head office.

 

    7.    Scheme Accounts:

              The residential plots are floated for sale through draw of lots. Banks are authorized for collection of applications with requisite amount of earnest money. After the closing date of scheme, the amount of earnest money collected by the banks with applications are submitted in finance wing of HUDA (HQ) which are processed and after the reconciliation with the banks are sent to respective Estate Offices for draw of lots. After the draw of lots, refund to un-successful applicants is made which is processed by finance wing.  The refunds are made by authorizing banks with AT Par facility of clearing of cheques in various branches of the authorized banks. The validity of the cheques are kept for 3 months for which funds are provided to the authorized bank to honour the cheques. Separate accounts of collection and refund of earnest money is kept in the finance wing and proper reconciliation is carried out.

 

    8.    Maintenance of Accounts:

              Accounts of the authority are maintained on double entry system of commercial accounting under which the following primary books are maintained in all the offices of HUDA.

                       i.   Cash book for cash transactions.

                       ii.  Bank book for bank transactions.

                      iii.  Journal book for contra entries.

                      iv.  The transaction are made through receipt/payment/contra vouchers.

                      vThe accounts are maintained manually as well as through computer system (developed by TCS) also in Panchkula offices.

                      vi. Trial balance is generated through computer system in Panchkula offices and prepared manually in all the field  offices.           

                     vii. Annual accounts are prepared on cash basis under completed contact method. Sector-wise/Urban Estate-wise accounts are maintained.

                    viii. In divisional offices, other books like contractor ledger, bill register are also maintained as per PWD system.

                     ix. The receipt from allottees deposited in Estate Offices are transferred to Head Office which are utilized for Land Acquisition and Development and Administrative Expenditure.

                     x.  Funds are provided by Head Office to field offices i.e. Estate Offices and XEN offices on monthly basis as per requirement. The funds received from field offices and transferred to field offices are reconciled on monthly/quarterly basis.

                    xi.  The inter-unit transaction of transfer of material  are also made by the divisional offices which are monitored through Debit/Credit note system reconcialtion of which is carried out on quarterly basis and annually at the time of preparing of final accounts.   

                   xii.  Separate accounts of each office is kept in the books of Head office. Similarly separate account of head office is kept in the books of each field office for transfer of cash.

                  xiii.  Sr. Accounts Officer in the office of Zonal Administrators check the accounts of field offices falling under their jurisdiction. Office-wise/zone-wise final accounts are prepared and submitted to the head office.

                  xiv.  Consolidation of final accounts are done at head office level.

           The Financial Accounting System has been got developed by HUDA from TCS and the accounts for 2007-08 of the offices located at Panchkula are being maintained through computer system however basic books like voucher, cash book, bank book and journal book are kept manually also. This system is running successfully and will be adopted in all the offices of HUDA located in all over Haryana, which will facilitate in maintaining online accounts in the all the office of HUDA.     

 

   9.    Audit:

            The Internal audit branch of the finance wing is responsible for carrying out various types of Audits :-

i)

Concurrent Audit 

Conducted on quarterly basis of the current financial year. Done by private Firms of Chartered Accountants.

ii)

Proprietary Audit

After the expiry of financial year. Done by A.G.

iii)

Special Audit

On need basis

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