A Performance Audit on “Functioning of State Universities in Jharkhand” was carried out in respect of three Universities-Vinoba Bhave University, Hazaribag, Nilamber Pitamber University, Medininagar & Kolhan University, Chaibasa and sixteen constituent colleges thereunder to examine the planning and financial management, status of implementation of academic activities, adequacy of infrastructure facilities and efficiency of human resource management and monitoring mechanism. The Performance Audit revealed that Grants to the tune of ₹101.23 crore were under utilised by the test checked Universities. Plan funds amounting to₹ 19.14 crore remained parked in the Personal Ledger Account maintained by the Directorate. Advances of ₹ 17.13 crore were outstanding against teaching/non-teaching staff of Universities/Colleges. A sum of ₹3.48 crore was short collected on account of fees and sale of forms. Due to non-utilisation/delay in utilisation, ₹ 6.21 crore were not released by University Grants Commission to Vinoba Bhave University. Against the prescribed Teacher Student ratio of 1:10 and 1:15 for Post Graduate courses and 1:25 and 1:30 for Under Graduate courses in science and humanities, the ratio ranged from 1:15 to 1:113 and 1:41 to 1:722 in PG Departments and test checked colleges respectively. The intake capacity for Post Graduate courses was considerably under-utilised and ranged between 2 and 71 per cent in Vinoba Bhave University, 16 and 95 per cent in Nilamber Pitamber University and 24 and 100 per cent in Kolhan University. Infrastructure worth ₹ 5.70 crore was lying idle for periods ranging from 10 to 55 months in Vinoba Bhave University. The two newly created Universities, Nilamber Pitamber University and Kolhan University, did not have their own campuses even after more than five years of their establishment. Shortage of teaching staff ranged from 22.47 to 62.50 per cent and non-teaching staff ranged from 38.08 to 62.81 per cent. Senate and Syndicate did not meet as stipulated and University/ programmes offered by these Universities were not accredited by National Assessment and Accreditation Council /National Board of Accreditation.