FAMC

Funds and Assets Management Committee

MANDATE & FUNCTIONING

January 2003

1. Background

The Funds and Assets Management Committee (FAMC) was created in 1996 on request from the Governing Board to the Working Committee of the Auroville Residents' Assembly.

This request was based on Clause 8(1) of the Rules of the Auroville Foundation, which stipulate that:

a) the Governing Board should constitute a Finance Committee under section 16(1) of the Act;

b) the Residents' Assembly should constitute a Funds and Assets Management Committee (FAMC) under section 19(3) of the Act, "which will advise the Governing Board on all matters specified in these Rules and those relating to.

i.) the utilisation of funds and the management of assets,

ii) taxes and audits,

iii) the sale, acquisition and utilisation of immovable assets"

The Rules also specify that one member of the Governing Board, the Secretary of the Auroville Foundation and a representative of the Financial Advisor, Ministry of Human Resource Development, or their nominees have the right to attend the meetings of the FAMC as ex-officio members.

2. FAMC Mandate as specified in the Rules of the Auroville Foundation

Summary
Clause 5, "Powers of the Governing Board", in the Rules stipulates that the Governing Board shall have the power to enter into agreements, to take over or acquire immovable and moveable property, to invest funds of the Auroville Foundation, to dispose of immovable property, and to borrow funds for the Auroville Foundation in consultation with the Working Committee and the FAMC.

Details:
Under Clause 5 of the Rules "Powers of the Governing Board" the FAMC is referred to as follows:

(1) The Governing Board shall have powers:

5.1.c: to enter into agreements with the Central Government, State Governments and pubic and private organisations and individuals and other foreign nationals and international non-governmental organisations, Government or Non-Government organisations or International Intergovernmental organisations for furtherance of the Foundation's objectives, for implementation of its programmes and for securing and accepting endowments, grants-in-aides, donations or gifts on mutually agreed terms and conditions in consultation with the Working Committee, provided that as far as commercial transactions are concerned, the FAMC would be the nodal mechanism involved.

5.1.d: to acquire by purchase, lease, gift or otherwise any immovable property that may be necessary or convenient for the purposes of the Foundation and in consultation with the Working Committee and the FAMC;

5.1.e: to acquire by purchase, lease, gift or otherwise any moveable property and/or equipment which may be necessary or convenient for the purposes of the Foundation and in consultation with the Working Committee and the FAMC;

5.1.g: to invest the funds of the Foundation or any other investable funds at the disposal of the Foundation in such securities or in such manner as may, from time to time, be determined by the Governing Board and, from time to time, to sell or transfer such investments in consultation with the Working Committee and the FAMC;

5.1.h to take over and acquire by purchase, gift or otherwise from Central Government or State Governments and other public or private organisations or individuals or, subject to compliance with the other laws and approval of the Central Government, from foreign nationals and international non-Governmental organisations moveable and immovable properties or other funds together with any attendant obligations and engagements not inconsistent with the objects of the Foundation in consultation with the Working Committee and the FAMC

Prior approval of the Central Government shall be necessary in those cases where the value of immovable assets exceeds Rs 1 crore.

5.1.i. to sell, transfer, lease or otherwise dispose of any immovable property of the Foundation in consultation with the Working Committee and the FAMC.

Provided that no immovable property shall be sold without the previous sanction of the central Government if its value is more than Rs 5 lakhs.

5.2 Where a decision is required to be taken by the Governing Board in consultation with the Working Committee or FAMC, then such consultation shall be completed within a period of 60 days time and the decision of the Governing Board after such consultation shall be final.

5.3 The Governing Board may with the previous sanction of the Central Government borrow, on the security of the properties of Auroville or any other assets, for carrying out the purposes of the Act in consultation with the Working Committee and the FAMC.

3. FAMC Mandate as specified by the Residents' Assembly

(For the purpose of this document the Residents' Assembly is defined as all Aurovilians over 18 years. When policies or decisions require ratification by the Residents' Assembly, the FAMC will publish them in the Auroville News and give two weeks for feedback. All feedback will be considered and where possible incorporated. To entirely change or drop a policy, a part of policy or a decision would require a objection from a minimum of 50 people.)

Within the ever-changing context of Auroville's internal organisation the FAMC has taken up several functions related to the actual management of funds and assets of the Auroville Foundation.
More specifically, the FAMC has, on behalf of the Residents' Assembly, become Auroville's nodal body to:

a) Recommend the creation and closure of Trusts and Units or other corporate bodies under the Auroville Foundation;
b) Recommend the appointment, resignation and removal of Trustees and Executives of Trusts and Units under the Auroville Foundation;
c) Define and oversee the functioning of Trusts and Units under the Auroville Foundation
d) Assess the financial viability of Trusts and Units under the Auroville Foundation;
e) Address and resolve problems arising with respect to the management of Trusts and Units or the allocation of assets.
f) Assess and oversee the financial viability of collective housing and public building projects;
g) To manage and allocate housing through the agency of its sub-group, the Housing Service.
h) To recommend the sale or exchange of land;
i) Approve requests for loans from the Auroville Maintenance Fund above Rs 5 lakhs;
j) To formulate policies relating to the use of funds and assets for ratification by the Resident's Assembly
k) To create groups and sub-groups to facilitate the FAMC in fulfilling the above functions

4. Constitution of the FAMC

a) The FAMC shall consist of not more than 21 members:

i) 15 members shall be representatives of Auroville working groups designated by the Residents Assembly and these working groups shall appoint their representatives. The Residents' Assembly will also determine how many representatives of each working group will constitute the FAMC;

ii) A maximum of 3 members co-opted by the representative members of the working groups. Co-opted members do no not need to be representative of a working group;

iii) One member of the Governing Board, the Secretary of the Auroville Foundation and a representative of the Financial Advisor, Ministry of Human Resource Development, or their nominees as ex-officio members.

b) The term of office of each representative member shall terminate either at the time his or her membership of the working group represented terminates or after 3 years. A working group may re-nominate its representative for a subsequent 3-year term. Co-opted members may be member for a period of up to 3 years, and are also eligible for re-nomination.

c) Each working group will designate another of its members to replace the member-representative whenever s/he is not able to attend a meeting.

d) A member may resign by giving a one-month notice to the other members of the FAMC, who will request the working group represented to nominate the member's successor.

e) Only residents, who have been living in Auroville for minimum 5 years, may be nominated as member of the FAMC. The FAMC may, in exceptional cases, decide to accept a nominee who does not fulfil this criterion.

5. Functioning of the FAMC

a) The FAMC shall meet at least once every two weeks.
b) The members will nominate or elect a Chairperson who will serve in this capacity for a period of 3 years.
c) Any 5 members of the FAMC can requisition the Chairperson to call a meeting to discuss any issue.
d) Seven members shall constitute a quorum for a meeting.
e) If within half an hour from the time appointed for holding a meeting, a quorum is not present, the meeting can discuss the topics on the agenda but cannot take any decision. In this case the meeting will automatically stand adjourned to the same day one week later, at the same time and place.
f) If at the adjourned meeting also, a quorum is not present within half an hour from the time appointed for holding the meeting, the members present shall be a quorum.
g) Decisions in meetings of the FAMC shall preferably be made by consensus. In case no consensus can be reached, decisions shall be made by consent, which implies that all arguments concerning the decision under discussion have been presented, and that no one of the persons present has any reasoned objection against the decision proposed. If the FAMC cannot arrive at a decision by consent the issue can be referred to the Auroville Council and the Residents Assembly.
h) The Chairperson will be responsible for calling meetings, maintaining the minutes of the meeting, and for regular publishing of meeting reports in the Auroville News and AV Net.