CSIR CASH AND ACCOUNTS MANUAL-1964

Sharing of monies realized with staff

Sharing of monies realized with staff:-
(1) Contract R&D, IP and Kb licensing and technical services: - DS is 15 % of total project cost or net surplus (remaining after accounting for all direct & indirect expenditure for the activities.) whichever is less where the money is being distributed on or after 1st June 2005. However, for arriving at distributable amount, the cost of equipment and capital investment are excluded from the total project cost.
(2) Honorarium for consultancy service: - DS is upto 2/3 of the fee portion or of net surplus whichever is less.
(3) Premia/royalty received from licensing of Kb:-

Share	Monies realized through licensing
	Through NRDC	Directly by Lab.
NRDC	30%	-
CSIR(Lab)	30%	60%
Investigator	40%	40%

Pattern of distribution:-
(1) Contract R&D, IP and Kb licensing and technical and Kb services

Staff	Share
Innovators & principal contributors	40%
S&T and other staff who contribute direct inputs to the specific development/ activity	35%
Remaining staff of the laboratory	20%
CSIR welfare Fund (maintained at Hq.	5%

Innovators & principal contributors: - scientist & other S&T staff who have provide innovative, developmental. Design engg. Experimental, data/ information, testing/ analytical, repair/ fabrication, training and business development/ marketing inputs
(2) consultancy services:- permissible amount of Hon. Or 300 % of the manpower charges levied, whichever is less
Team of consultant - 65%
Other S&T staff - 15%
Supporting staff - 15%
CSIR welfare Fund - 5%
Team of consultant: - such staff members who provide intellectual inputs to the specific consultancy work
Other S&T staff:- Gr. III & IV staff, research fellows/Associates who assist the team of consultant with S&T, information, computational, economic and marketing inputs to the specific consultancy work if there is no staff under this category the share of it will merge with team of consultant.
Supporting staff: - remaining staff. The director shall have flexibility to group the ‘supporting staff’ as
(a) those who contributed directly to the consultancy and;
(b) the remaining staff
The director can also apportion between the two groups (a) and (b) above, the honorarium earmarked for the category of ‘supporting staff’. The distribution of Hon. To the group (b) staff is to be uniform for a salary scale and is to be done once a year; however any supporting staff included in group (a) of a consultancy shall be excluded from group (b).

Condition for sharing of monies:-
(1) A formal cost accounting has been put in place and notified by the lab.
(2) A legally valid agreement has been executed for IP licensing/ contract R&D/ licensing of tech. Etc.
(3) The lab. Has fulfilled its obligation in the assignment in accordance with term of agreement.
(4) All the monies/fees due have been received in full.
(5) The client has not contested CSIR’s fulfillment of its obligation as defined in the contract/ agreement.
(6) In the event of any legal action/ dispute necessitating refund/ payment of monies/ fees by the CSIR to the client, the amount paid to the staff is recoverable.
(7) Sharing of monies is not permitted in the projects that are not wholly funded (total project cost) by the client. Partially funded projects are not eligible for sharing of monies.
(8) Sharing of monies from projects that have been foreclosed or where there is short receipt of funds or where dues are not recovered fully is not permitted.
(9) The portion of the monies/ fee earmarked for the remaining “remaining staff” in case of contract R&D and other is to be uniform
(10) A person is entitled for a share for the monies/fees even in the event of his transfer/ retirement/ resignation from CSIR. In the event of death of a person, his legal heir shall be entitled to his/ her share of monies/fee.
(11) From 1st June 2005, there is no ceiling on the amount of hon. Receivable by an individual from licensing of IP and Kb as well as contract R&D and TS. In case of consultancy work the mandays devoted by the individual in a financial year should not exceed 50 mandays.
(12) A member of the consultancy team shall have the option to forego his/her share, which shall than lapse to the CSIR welfare fund.
(13) Any distribution made in disregard to the prescribed procedure and guidelines shall be deemed as unauthorized and liable to recovery with 12% interest.

Technical services

Technical services: - services rendered to the client/customer, based on available knowledge, expertise, skills, infrastructure and facilities of the lab. It includes:

1) testing & analysis (including certification & calibration)

2) routine training

3) advisory technical assistance

4) fabrication, production and supply of special products of R&D

5) repair & maintenance

6) providing information

Financial aspects: -

(1) Expenses on the following factors (except for supply of information/ database):

A) Cost of

(a) Deployed CSIR staff mandays as per CSIR prescribes rate and

(b) Temporary staff deployed at actual cost + 40 % OH

B) Cost of consumable raw materials/consumable (chemicals, glassware, stationary, raw materials, component & other store items) with 25% OH (towards expenses for purchase, storage, handling etc.

C) Cost of consumable raw materials/consumable with 25% OH (toward expenses for purchase, storage, handling etc.)

D) Equipment usage cost/ depreciation/ replacement cost

E) Any other out-of-pocket expenditure

(2) IF/OC: at the discretion of director, considering the nature of the client, the benefit accruing and the client paying capacity.

(3) Service tax

Project charge = (1) + (2)

Total project cost = (1) + (2) + (3)

Licensing of knowledgebase

Licensing of knowledgebase: -

Kb: - Includes readily available and commercial knowhow, process and/or process improvements, technology, technique and a new product. May or may not embody IP.

- unencumbered or encumbered

Licensing of Kb: - granting licensee the right to use the Kb for making or selling the resulting product(s) either for commercial/ captive purpose or as otherwise agreed to.

Financial aspects: - varies on case to case basis on the following factors:

(a) Cost of Development:-

(1) Direct input:-

(i) cost of

(a) Deployed CSIR staff mandays as per CSIR prescribes rate and

(b) Temporary staff deployed at actual cost + 40 % OH

(ii) Cost of consumable raw materials/consumable/ physical inputs/services/utilities with 25% OH (toward

expenses for purchase, storage, handling etc.

(iii) equipment usage cost/ cost of equipment procured specially for the projects :-

(a) Existing one to be charged on pro-rata based on as annual usage charges upto 20% of cost of equipment and installation. Where cost cannot be ascertained the charges are to be decided by CA.

(b) New equipment is to be charge with an additional procurement and handling charges of 5% of the cost of the equipment.

(iv) Contingencies including external payment for facilities/services

(v) Cost of Securing of IP right for Kb; and

(vi) Cost of publicity

(2) Indirect inputs:-

(a) Notional amortization of investment on the staff, equipment, facilities deployed for the projects; and

(b) Intellectual inputs.

(b) Cost associated with Kb demonstration

© estimate of net benefit to be derived by the licensee:- money to be saved by the licensee by productivity improvement such as saving in raw materials, energy, time, labour, capital etc. or the additional profit to be realized due to better quality of products or reduction in pollution etc. or the net profit from the exploitation of Kb.

(d) Size & number of potential clients: - based on exclusiveness of license and alternative competing sources.

(e) Comparative cost of competing Kb in the market (if applicable)

(f) Potential for unauthorized use of the specific Kb subjected to; (by piracy or otherwise)

(g) Opportunity value: - estimated amount that can be realized by cashing upon the circumstantial/ contingent aspect prompting the utilization of Kb by the licensee. (Expressed in terms of absolute money value or as a % of profits anticipated or of value addition envisaged.)

Differential costing:-

- Cottage/tiny industry

On token lumpsum charges even below the cost incurred on development of Kb (as decided by MC)

No royalty

Non-exclusive license

-SSI on direct cost, when non-exclusive to more then one client the cost could be divided by such no of clients to arrive at the cost/client.

-medium/large industry as per normal cost

Price decided for specific Kb should be reviewed periodically, atleast every three years for revision, if any required.

Licensing of intellectual property

Licensing of intellectual property:-

IP: - patents, copyright, trademark, design & computer software.

Types:-

(1) unencumbered:-

(a) In- house development. Ownership & licensing vest in CSIR

(b) Through contract R&D and subsequently rendered unencumbered as per agreement. Ownership & licensing as per agreement

(2) Encumbered: - Through contract R&D with total/ partial finance support & with/without technical support from client. Ownership & licensing as per agreement

Licensing of IP : - granting licensee the right to further develop the IP or to utilize the IP to make the resulting product(s) either for commercial/ captive purpose or as otherwise agreed to.

Financial aspects: - varies on case to case basis on the following factors:

(a) Cost of Development:-

(i) cost of

(a) Deployed CSIR staff mandays as per CSIR prescribes rate and

(b) Temporary staff deployed at actual cost + 40 % OH

(ii) Cost of consumable raw materials/consumable/ physical inputs/services/utilities with 25% OH (toward

expenses for purchase, storage, handling etc.

(iii) equipment usage cost/ cost of equipment procured specially for the projects :-

(a) Existing one to be charged on pro-rata based on as annual usage charges upto 20% of cost of equipment and installation. Where cost cannot be ascertained the charges are to be decided by CA.

(b) New equipment is to be charge with an additional procurement and handling charges of 5% of the cost of the equipment.

(iv) Contingencies including external payment for facilities/services

(b)Cost of securing the IP: - with minimum floor price of 5 Lakh per IP. Concession in exceptional circumstance with approval of DG

©Cost of maintaining IP

(d)IF: - charges for CSIR investment over a period of time, in building up and sustaining the extent level of expertise, knowledgebase and facilities. Charges should be commensurate with quantum and quality of CSIR’s resource input and also the likely benefits to be derived by the clients on implementation of the project results

(e)Service Tax on (a) to (d)

Consultancy Project

Consultancy: - institutional, in area of expertise preferably its trust area. Comprises scientific, technical, engg., or other proff. Advice/ assistance based on the available knowledge base / expertise of the Lab., and envisaging only minimum use of lab. facilities for essential experimentation and computation to meet the objectives of the consultancy assignments. It covers

(1) Scientific, technical, engg. or other proff. Advice.

(2) Literature survey and preparation of feasibility studies, technology forecasting/ evaluation reports etc.

(3) Interpretation of test result and data provided

(4) Risk and hazard/ environmental impact analysis, pollution abatement/ control measures etc.

(5) Assistance in erection, commissioning, operation, troubleshooting, productivity improvements, energy conservation, waste utilization etc.

(6) Customized HRD program

(7) Technical advice (one time) such as troubleshooting, problem resolving, quality control etc.

Financial aspects:-

(1) Direct expenses:-

(i) cost of

(a) Deployed CSIR staff mandays as per CSIR prescribes rate and

(b) Temporary staff deployed at actual cost + 40 % OH

(ii) Cost of consumable raw materials/consumable/ physical inputs/services/utilities with 25% OH (towards expenses for purchase, storage, handling etc.

(iii) equipment usage cost/ cost of equipment procured specially for the projects :-

(a) Existing one to be charged on pro-rata based on as annual usage charges upto 20% of cost of equipment and installation. Where cost cannot be ascertained the charges are to be decided by CA.

(b) New equipment is to be charge with an additional procurement and handling charges of 5% of the cost of the equipment.

(iv) TA/DA:-

(a) at CSIR rates with exception to reimburse total expenditure with prior approval of Director

(b) Air travel to non-entitle G.S on functional basis & if it is expedient to do so in public interest.

(v) Contingencies including external payment for facilities/services

(vi) Others (if any)

(2) Intellectual fees: - charges for CSIR investment over a period of time, in building up and sustaining the extent level of expertise, knowledgebase and facilities. Charges should be commensurate with quantum and quality of CSIR’s resource input and also the likely benefits to be derived by the clients on implementation of the project results. There is no upper ceiling but it should in no case be less than the estimated manpower charges, except in case of consultancy offered against open tender, where the IF could be decide by the CA keeping in view the potential competition. For cottage and small scale units (as per govt. definition) the minimum IF could be 30-50% of manpower charges. Not to be charge in case of sister lab. Project.

(3) service tax on (1) & (2)

Project charge = (1) + (2)

Total project cost = (1) + (2) + (3)

Term of payment: - the laboratory shall obtain an advance of not less than 50% of the project cost on or before signing the agreement and the balance in installments linked to suitable milestones/deliverables as defines in the project/ agreement. However, in case of projects from govt. dept. /agencies, PSE, investigational job by Govt., court, statuary authorities etc. and project secured against open tenders, the term of payment may be as per the mutual agreement.

General condition:-

(1) Contractual obligation shall be that of CSIR.

(2) Staff involvement shall be approved by director/MC

(3) As far as possible ‘the team of consultant’ selected for consultancy work should have confidence of the client.

(4) Fair distribution of consultancy work among eligible staff

(5) Consultancy assignment costing less than 50000.00 should not be encouraged except in deserving case with discretion of director.

(6) The total number of days devoted by staff member to consultancy work should not exceed 50 mandays in a financial year.

Contract R&D

Contract R&D:- All R&D activities undertaken and executed under specific contractual arrangements agreed upon for the purpose. The projects should fall within the purview of approved research areas of the laboratory. It includes:-

(1) Sponsored R&D:-

(a) Fully externally funded having specified R&D objective. (Exception to full funding of SSP could be made with the approval of CA for specific nationally relevant projects related to defence, health, social welfare and the like)

(b) Well defined expected project output/result

© culminating into generation of IP/ Knowledgebase.

(d) Can also include process design and engg. , process modeling & simulation, application of computational methods , developments of software etc.

(e) Can be multi-clients also

(2) Collaborative/ cooperative R&D:-

(a) Partially funded by the client

(b) Supplemented by provision of inputs such as expert manpower, engg. , Production/ fabrication of product in bulk for testing/ trials, creation of infrastructural inputs etc.

© could be in advanced areas of research, for upscalling /proving of laboratory level know-how, technology development or generation of IP etc.

(d) Output/ result definition depends on nature of the project.

(e) Can be multi-clients also

(3) Grant-in-aid R&D:-

(a) projects involving a grant by way of financial inputs , either full or in parts , assistance in kind e.g. equipment, training etc.

(b) To supplement laboratory efforts in ongoing or new R&D projects or for creating new capabilities/ facilities.

© For generating database, sophisticated equipments for testing and infrastructural facilities.

Financial aspects:-

(1) Direct expenses:-

(i) cost of

(a) Deployed CSIR staff mandays as per CSIR prescribes rate and

(b) Temporary staff deployed at actual cost + 40 % OH

(ii) Cost of consumable raw materials/consumable (chemicals, glasswares, stationary, raw materials, component & other store items) with 25% OH (towards expenses for purchase, storage, handling etc.

(iii) Cost of physical inputs/services/utilities (water, steam, gas, electricity, workshop, drawing office etc.) with 25% OH (towards installation, maintenance etc.)

(iv) equipment usage cost/ cost of equipment procured specially for the projects :-

(a) Existing one to be charged on pro-rata based on as annual usage charges upto 20% of cost of equipment and installation. Where cost cannot be ascertained the charges are to be decided by CA.

(b) New equipment is to be charge with an additional procurement and handling charges of 5% of the cost of the equipment.

(v) TA/DA:-

(a) at CSIR rates with exception to reimburse total expenditure with prior approval of Director

(b) Air travel to non-entitle G.S on functional basis & if it is expedient to do so in public interest.

(vi) Contingencies including external payment for facilities/services

(vii) Others (if any)

(2) Intellectual fees: - charges for CSIR investment over a period of time, in building up and sustaining the extent level of expertise, knowledgebase and facilities. Charges should be commensurate with quantum and quality of CSIR’s resource input and also the likely benefits to be derived by the clients on implementation of the project results. Should in no case be less than 40% of total expenses excluding the cost of equipments and other capital investments at the cost of client. For cottage and small scale units (as per govt. definition) the minimum IF could be waived with the approval of CA. Not to be charge in case of Govt. funded & sister lab. project.

(3) service tax on (1) & (2)

Project charge = (1) + (2)

Total project cost = (1) + (2) + (3) (exception to full funding of SSP could be made with the approval of CA for specific nationally relevant projects related to defence, health, social welfare and the like)

Term of payment: - the laboratory shall obtain an advance of not less than 25% of the project cost on or before signing the agreement and the balance in installments linked to suitable milestones/deliverables as defines in the project/ agreement. However, in case of projects from govt. dept. /agencies, PSE, and project secured against open tenders, the term of payment may be as per the mutual agreement.

Provisions Governing Employment Under The Union And The States :

The Government servant holds office during the pleasure of the President but security of tenure is specifically assured to him. Articles 309, 310 and3 11 of the Constitution a& the provisions which apply to the cases of employees serving the Union and various States.

Article 309 empowers Legislature to enact laws subject to the Constitution for regulating recruitment and conditions of service of' persons appointed in connection with the affairs of the Union or of any State and also empowers the President or the Governor or such person as may be directed by him to make rules subject to the provisions of the Constitution for regulating recruitment and conditions of service of persons so appointed.
The provision of Article 310 (1) is that except as expressly provided by the Constitution every person who is a member of a Defence Service or of a Civil Service of the Union or of an All India Service holds his post under the Union during the pleasure of the President and every person who is a member of a Civil Service of a State, holds his post during the pleasure of the Governor of the State. To safeguard the service of a member of a Civil Service of the Union or of an All India Service or of a Civil Service of a State, Article 311(2) provides that no such person shall be dismissed or removed or reduced in rank except after an enquiry in which he has been informed of the charges against him and given a reasonable opportunity of being heard in respect of these charges, provided that where it is proposed after such enquiry to impose upon him any penalty, such penalty may be imposed on the basis of the evidence and it shall not be necessary to give such person any opportunity of making representation on the penalty proposed.
A subsequent amendment of Article 31 l(2) has restricted the protection earlier provided to a Government servant and purports to widen the Doctrine of Pleasure. The curtailment of the safeguard of enquiry is couched in the following language :
Provided further that this clause shall not apply-
( a ) Where a person is dismissed or removed or reduced in rank on the ground of conduct which has led to his conviction on a criminal charge: or
( b ) Where the authority empowered to dismiss or remove a person or to reduce him in rank is satisfied that for some reason, to be recorded by that authority in writing, it is not reasonably practicable to hold such inquiry: or
( c ) Where the President or the Governor, as the case may be, is satisfied that in the interest of the security of the State it is not expedient to hold such inquiry.
Clause (3) of Article 311 provides that if, in respect of persons as aforesaid, a question arises whether it is reasonably practicable to hold such inquiry as referred to in Clause (2), the decision there on of the authority empowered to dismiss or remove such person or to reduce him in rank shall be final.

Role of Finance in National Lab

Role of Finance in National Lab.:- Service oriented, primarily in three fields

(1) Financial advice: - the Director and other Officer down the line are vested with power to accord financial sanction subject to budget allocation as laid down in delegation of financial power to the national lab of CSIR. Hence all financial sanction irrespective of amount is subject to observance of codal formalities need financial concurrence of the finance of national lab. This is called audit of sanction as per norms stipulated in the GFR & budget & accounts manual of the CSIR.

(2) Auditing: - all payments of the lab are subject to pre-audit with a view to see that rules and procedure are followed. This calls for good understanding of various govt. rules.

(3) Accounting & Budgeting: - Budget is prepared according to need and demand of a lab on approved projects authorized by the apex body of the lab for a particular year. Project oriented budget estimates and revised budget are formulated each year for approbation of CSIR and allocation of funds.

Accounting is done as per procedure laid down by CAG and various books of account are prepared accordingly.