New Delhi: India’s Comptroller and Auditor General (CAG) will introduce a new governance and risk assessment framework from April 2026 to strengthen financial controls and internal management systems in higher education institutions to strengthen the governance practices of world-leading universities.
The framework will be rolled out in phases, starting with 66 higher education institutions in the first phase. Of these, 44 are central universities, while the remaining 22 are state universities.
Addressing a stakeholder workshop with representatives of central and state universities on Monday, CAG K. Sanjay Murthy said the proposed Risk-Controls Maturity Scorecard (RCMS) will act as a self-monitoring tool for institutions to assess whether financial prudence and internal controls are being followed. The framework is not intended as an additional audit, but rather as a mechanism for universities to review their own management systems.
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The model draws on governance practices used by world-leading universities such as Oxford, Harvard and Cambridge, where structured risk management frameworks are already in place.
The CAG organized a workshop attended by officials from the Ministry of Higher Education, Vice-Chancellors from universities across the country and officials from the review institution.
In the first phase, RCMS will be rolled out across 66 higher education institutions, with the rollout expected to begin next month and be completed within the next eight months of FY27.
Murthy said the CAG currently audits about 1,400 autonomous institutions, with the number expected to grow along with the scale of public investment in the sector. In such a scenario, tools like RCMS will help identify areas where governance and financial controls need to be strengthened, he said.
Risk mapping
RCMS allows universities to identify risks in advance, rather than reacting after problems arise. Audits traditionally identify problems such as financial irregularities, invalidity of contracts or delays in certificates of use. The RCMS framework enables institutions to regularly review their internal systems and identify weaknesses early on, helping to prevent them from escalating into serious compliance or governance issues.
Officials from the Ministry of Education present at the workshop said the initiative marks a shift from compliance-based supervision to proactive risk management.
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Vineet Joshi, Secretary for higher education and additional secretary Anandrao V. Patil encouraged universities to actively participate in the framework and said the government would support capacity building to help institutions adopt the system and improve governance practices.
Deputy CAG AM Bajaj said the primary responsibility for identifying risks and maintaining effective controls lies with institutional management and the RCMS framework was designed to provide a structured mechanism to support this responsibility.
“By mapping risks in areas such as procurement, asset management, treasury operations, grants and HR systems, this tool helps university management understand where governance gaps exist. This makes decision-making more data-driven and systematic,” he said.
The initiative aims to strengthen the supervision of autonomous educational authorities that jointly manage significant public funds. Central self-governing bodies under the Ministry of Education manage property worth approx ₹1.77,000 crores and they receive subsidies of approx ₹75,645 million crowns.
Within this framework, key functional areas such as procurement, revenue management, property management, treasury operations, human resources and financial reporting will be mapped with respect to potential risks and corresponding control measures. Institutions will be assessed through evidence-based audits and monitored using dashboards and risk indicators, allowing auditors and administrators to track management standards over time.
According to a presentation made at the workshop, the framework also seeks to go beyond traditional audit approaches by introducing a forward-looking assessment of internal controls. This will enable institutions to identify risk hotspots and improve administrative processes before problems escalate into financial issues or compliance lapses.
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