1- To secure the long term financial health of Cadet College Hasan Abdal, and in line with other prestigious institutions, the College proposed establishment of Cadet College Hasan Abdal Endowment Fund Trust in the Board of Governors meeting held on 20th June, 2013.
The broad contours of the proposal, as presented, were:-
a- The Endowment Funds could be financed by the following sources:
- Contributions from members
- Contributions from sources acceptable to the Board of Trustees in its discretion
- Donations/contributions from other sources, national or international, acceptable to the Board of Trustees; and
- Earnings of the Endowment Fund on account of its working or investments
b- The Endowment Fund will be managed and operated by a Board of Trustees (BOTs)
c- Endowment Fund(s) will be kept in banks of repute and a high credit rating with the approval of the Board. Pending registration of the Trust, the accounts will be operated jointly by the Chairman of the Executive Committee and any three members of the Board. Thereafter, the rules set out in the Trust Deed for the Endowment Fund shall govern the operation and maintenance of the Endowment Fund(s).
d- The Board shall approve investment of Endowment Fund in accordance with the provisions of the Income Tax Rules, 2002, or the relevant applicable law annually when. All such investments will be in approved securities which are guaranteed by the Government of Pakistan. A due diligence process will be undertaken by the Board’s Sub-Committee for Finance before Board approval is given for the investment.
e- Amounts deposited to the Endowment Fund, from time to time, shall remain in perpetuity. For the first five years after formation of the Endowment Fund, a maximum of 50% of the income derived from the Endowment Fund investments shall be applied towards meeting the operating and/or capital expenses of the College which are included in the approved budget. Thereafter, a maximum of 20% of the income will be available for meeting the operating and/or capital expenses of the College.
f- All withdrawals from the Endowment Fund will be subject to prior approval of the Board through a Resolution by Circulation.
g- The Board may accept any contribution/donation into the Endowment Fund which may be spent in its entirety on any specific project/programme relating to the College if the donor makes a tied donation for that specific purpose. Such expenditure will, however, be subject to prior approval of the Board through a Resolution by Circulation.
h- Separate Audit of the College Endowment Funds will be undertaken within three months of close of the financial year by a reputed firm of Chartered Accountants. The Audited Accounts and Audited Financial Statements will be posted on the web site of the College and the Endowment Fund’s web site.
2- The Board of Governors vide minute serial no. 1406 of 89th Board of Governors meeting, held on 20thJune, 2013, approved the establishment of Cadet College Hasan Abdal Endowment Fund immediately. The Board further directed that the proposed Cadet College Hasan Abdal Endowment Fund Policy/Rules may be placed as an Independent Policy/Rules, before the Board of Governors in its next meeting. The Chairman Board of Governors wished the College good luck on this much awaited initiative.
3- Pending the formal registration of the CCH Endowment Fund Trust, and per approval of the Board of Governors, the Chairman Executive Committee, through Principal Cadet College Hasan Abdal, initiated opening of account titled, “Cadet College Hasan Abdal Endowment Fund”, in Habib Bank Limited, Hasan Abdal. The account was opened on 03 July, 2013.
4- Pending registration of a Trust to operate and maintain the Endowment Fund, bank account of Cadet College Hasan Abdal Endowment Fund is being jointly operated by four members of the Board of Governors, including the Chairman of the Executive Committee of the Board of Governors. As stated, all withdrawals from the bank account are subject to prior approval of the Board of Governors through a Resolution by Circulation and upon signing of the instrument of withdrawal jointly by all four signatories.
5- The Account Opening instructions forbid any withdrawals from the account until authorized by all the four signatories.
