Rule 242 of The General Financial Rules 2017 Performance Parameters and Reports
Original Rule Text
Visual Summary
Autonomous bodies must set clear performance metrics for oversight.
Reports due within six months of financial year-end.
Reports must be available for CAG and other audit authorities.
Executive Summary
Rule 242 of the General Financial Rules, 2017, mandates the establishment of clear performance parameters for autonomous bodies and outlines the requirements for submitting achievement-cum-performance reports. It specifies reporting timelines, exceptions for non-recurring grants, and details for including performance assessments in annual reports, especially for significant grant amounts. The rule also emphasizes making these reports accessible for audit by the Comptroller and Auditor General of India, ensuring robust financial oversight and accountability in the utilization of public funds.
In-Depth Analysis of the Rule
Rule 242 of the General Financial Rules, 2017, is a cornerstone for ensuring transparency and accountability in the management of grants by various institutions, particularly autonomous bodies. It lays down specific requirements for performance measurement and reporting, crucial for effective governmental oversight.
Breakdown of the Rule:
- Performance Parameters (Rule 242(1)): This sub-rule mandates that clear performance parameters must be established for autonomous bodies. This is essential for enabling better oversight and evaluation of their functioning and the utilization of funds.
- Reporting Timelines (Rule 242(2)(i)): Grantee institutions and organizations are required to submit their performance-cum-achievement reports promptly after the end of the financial year, with a strict deadline of not later than six months.
- Exceptions for Non-Recurring Grants (Rule 242(2)(ii)): The rule provides specific exemptions from submitting these reports for certain non-recurring grants, such as those for celebrating anniversaries, conducting special tours, or maintenance grants for education. This acknowledges that not all grants require the same level of detailed performance reporting.
- Recurring Grants (Rule 242(2)(iii)): For recurring grants, the submission of performance reports is generally mandatory. However, for smaller recurring grants-in-aid (not exceeding Rupees twenty-five lakhs), the sanctioning authority has the discretion to waive the requirement for a full report, instead relying on Utilization Certificates and other available information for assessment.
- Annual Report Inclusion (Rule 242(2)(iv)): This section details how performance assessments are to be integrated into the Annual Reports of Ministries or Departments. The level of detail required varies based on the type of organization (autonomous vs. others) and the monetary value of the grants received. For instance, large grants to autonomous bodies require their audited accounts to be laid before Parliament, while smaller grants necessitate the administrative Ministry’s own assessment in its Annual Report.
- Audit Access (Rule 242(2)(v)): It is explicitly stated that copies of these performance-cum-achievement reports must be made available to audit authorities, including the Comptroller and Auditor General of India, especially when the accounts are subject to CAG audit. This ensures independent verification and scrutiny of reported achievements.
Practical Example:
Consider a government-funded autonomous research institution receiving a recurring grant of Rupees 1 crore for a five-year project on climate change research. As per Rule 242(1), the administrative Ministry would require the institution to set clear performance parameters, such as the number of research papers published in peer-reviewed journals, patents filed, workshops conducted, and policy recommendations submitted. According to Rule 242(2)(i), the institution must submit an annual performance-cum-achievement report within six months of the financial year-end, detailing progress against these parameters. Since this is a recurring grant exceeding Rupees twenty-five lakhs, the report is mandatory. Furthermore, as the grant is substantial, Rule 242(2)(iv)(a) would apply, meaning the institution’s Annual Reports and Audited Statements of Accounts would be laid before Parliament, and the administrative Ministry would not need to incorporate a separate performance report in its own Annual Report. Finally, Rule 242(2)(v) ensures that the CAG of India would have access to these performance reports during their audit.
Related Provisions
Rule 242 is closely related to other provisions concerning financial management and accountability:
- Rule 238 of The General Financial Rules 2017 Utilization Certificates: This rule details the requirements for submitting Utilization Certificates, which often complement performance reports in demonstrating proper fund usage.
- Rule 230 of The General Financial Rules 2017 Principles and Procedure for Award of Grants-in-aid: This rule outlines the foundational principles and procedures for sanctioning grants, setting the stage for the performance monitoring described in Rule 242.
- Rule 236 of The General Financial Rules 2017 Audit of Accounts: This rule specifies the audit requirements for grantee institutions, directly linking to the need for performance reports to be available for audit scrutiny.
Learning Aids
Mnemonics:
- P.A.R.T.S. for Rule 242: Parameters (clear), Annual Reports (timely), Recurring/Non-recurring (exceptions), Timely Submission (6 months), Scrutiny (Audit access).
Process Flowchart:
Multiple Choice Questions
1. What is the primary requirement for Autonomous Bodies under Rule 242(1) of the General Financial Rules, 2017?
- A) To maximize internal resource generation.
- B) To set clear performance parameters for better oversight.
- C) To submit audited financial statements annually.
- D) To obtain prior approval for all capital expenditures.
Show Answer
Correct Answer: B
2. According to Rule 242(2)(i) of the General Financial Rules, 2017, when should Grantee Institutions submit performance-cum-achievement reports?
- A) Within three months of the financial year-end.
- B) Before the commencement of the next financial year.
- C) Soon after the end of the financial year, but not later than six months.
- D) Upon request from the administrative ministry.
Show Answer
Correct Answer: C
3. Under Rule 242(2)(ii) of the General Financial Rules, 2017, for which type of grants are performance-cum-achievement reports *not* typically required?
- A) Recurring grants for operational expenses.
- B) Non-recurring grants for celebration of anniversaries.
- C) Grants for capital asset creation.
- D) Grants exceeding Rupees five crore.
Show Answer
Correct Answer: B
4. For recurring Grants-in-aid not exceeding Rupees twenty-five lakhs, what alternative does the sanctioning authority have regarding performance reports, as per Rule 242(2)(iii) of the General Financial Rules, 2017?
- A) They must still insist on full performance reports.
- B) They may dispense with reports and refer to Utilization Certificates.
- C) They must conduct a physical verification of achievements.
- D) They need to obtain approval from the Ministry of Finance.
Show Answer
Correct Answer: B
5. Rule 242(2)(v) of the General Financial Rules, 2017, states that copies of performance-cum-achievement reports must be made available to which entity when accounts are audited by the CAG of India?
- A) The NITI Aayog.
- B) The Ministry of Finance.
- C) The Audit.
- D) The Parliament directly.
Show Answer
Correct Answer: C
Frequently Asked Questions
What is the purpose of setting performance parameters under Rule 242(1) of the General Financial Rules, 2017?
The purpose is to allow for better oversight of Autonomous Bodies by clearly defining what is expected of them in terms of performance and outcomes.
Are performance reports always required for all types of grants under Rule 242(2) of the General Financial Rules, 2017?
No, performance reports are generally insisted upon for recurring grants. However, for certain non-recurring grants (like those for anniversaries or special tours) and for recurring grants below Rupees twenty-five lakhs, the sanctioning authority may dispense with them, relying on Utilization Certificates and other available information.
How does Rule 242(2)(iv) of the General Financial Rules, 2017, address the inclusion of performance reports in Annual Reports for Autonomous Organisations?
For Autonomous Organisations receiving grants of Rupees Two crore and above, their Annual Reports and Audited Statements of Accounts are laid before Parliament, and the Ministries need not incorporate separate performance-cum-achievement reports. For smaller grants, Ministries include a statement of their own assessment in their Annual Report. For very large grants (over Rs. 5 crore non-recurring or Rs. 50 lakhs recurring), a detailed review of utilization and achievements is required in the Ministry’s Annual Report.
Key Takeaways
- Rule 242 mandates clear performance parameters for autonomous bodies receiving grants to ensure effective oversight.
- Performance and achievement reports are generally required within six months of the financial year-end, with specific exceptions for certain non-recurring and smaller recurring grants.
- Ministries must include performance assessments of grantee institutions in their Annual Reports, with the level of detail depending on the grant amount and type of organization.
- All performance reports must be accessible to audit authorities, including the Comptroller and Auditor General of India, for scrutiny and verification.
Conclusion
Rule 242 of the General Financial Rules, 2017, is crucial for ensuring accountability and transparency in the utilization of government grants by autonomous bodies and other institutions. By establishing clear performance parameters and mandating comprehensive reporting, it facilitates effective oversight and promotes the efficient achievement of intended objectives, thereby safeguarding public funds and enhancing governance.