Section 18 in Andhra Pradesh Educational Institutions (Establishment, Recognition, Administration and Control of Schools Under Private Managements) Rules, 1993
18. Criteria for fixing fee structure and allocation of revenue earned as fee.
(1)Every un-aided school or upgraded aided school (without aid for higher classes) shall have its own fee structure to determine the fee to be collected from the students of various courses/classes;(2)The Governing Body attached to the institution is empowered to prescribe the fee structure. While fixing the fee structure, the Governing Body shall take into account the following:(a)Expenditure involving payment of salaries and other benefits to the staff:(b)Expenditure involving payment of rent for the building occupied by the institution and the upkeep of the building;(c)Expenditure involving electricity and water charges;(d)Expenditure involving office requirement like stationery, stamps etc.,(e)Expenditure involving class room needs like chalk, dusters etc;(f)Expenditure involving purchase of books for the library and chemicals and specimens for the laboratory;(g)Expenditure involving payments to the Auditors engaged for auditing the accounts;(h)Expenditure on contribution towards Education Cess;(i)Any other miscellaneous expenditure.(3)It is open for the governing body to take a decision to collect fees from students either monthly or quarterly or half yearly. However. the special fee shall be collected only once at the beginning of the academic year.(4)The fees collected from the students shall be allocated as to meet the following requirements:(a)5% of the fees collected shall be earmarked as personal income to the management;(b)15% of the fees collected shall be utilised for the maintenance of the institutions towards expenditure involving the building rent, electricity and water charges, stationery etc. required for the office payment to be made to menials and auditors, purchase of library books, chemicals, specimens and other material required for the laboratory and expenditure involving the upkeep of the institution etc.,(c)15% of the fees collected shall be earmarked for the developmental activities of the institution i.e. expenditure involving opening of additional courses, classes, sections and up-gradations of the institutions, construction of additional accommodations, acquiring costly equipment and furniture, purchase of land for the use of the institution and the like;(d)50% of the fees collected shall be earmarked towards payment of salaries to the staff;(e)15% of the fees collected shall be earmarked as management's contribution towards staff benefits like gratuity, teachers provident fund, Group Insurance Scheme etc.(5)The educational agency shall maintain separate accounts in one or more banks for the amounts allocated for various purposes mentioned above so that the amount allocated for a specific purpose shall not be diverted for another purpose. These accounts opened as specified above shall be operated through joint accounts in the name of the Secretary/ Correspondent, Manager of the Institution and the Head Master/Principal of the Institution;(6)The amounts falling under items (a) to (e) of sub-rule (4) are subject to inspection and auditing by the Auditors appointed for the purpose by the governing body.
