1616thth JRM JRM

FINANCIAL FINANCIAL MANAGEMENTMANAGEMENT

Thematic SessionThematic Session2121stst July 2012 July 2012

Progress of Expenditure

Rs. in crore

Distribution of Expenditure – 2011-12Distribution of Expenditure – 2011-12

`̀ in crore in crore3401

189252158

121111242

Total 37837

Category wise Allocation and ExpenditureRs. in Crore

 

2007-08 2008-09 2009-10 2010-11 2011-12

Outlay Expdr. Outlay Expdr. Outlay Expdr. Outlay Expdr. Outlay Expdr.

Access & Retention 2079 1390 2874 2085 2622 1993 5425 3089 5610 3401Quality 9322 7092 10861 9331 14693 12405 21401 17013 30423 18925

Gender & Equity 1659 925 2083 1316 1645 1055 2412 1588 4057 2158School Infrastructure 7666 5885 8075 5995 7736 5175 15369 9488 20358 12111

Management 778 492 716 618 843 679 1098 780 1328 1242Total 21504 15785 24609 19344 27538 21307 45705 31958 61775 37837

Improved Trend in Quarterly Expenditure Improvement in expenditure trend after the introduction of monthly

expenditure plan.

Analysis of Financial Performance

% Achievement

(Against Outlay)

No. of State

2007-08 2008-09 2009-10 2010-11 2011-12

More than 80% 14 17 18 7 12

Less than 80% and more than 60%

12 12 14 22 14

Less than 60% 9 6 3 6 9

% Achievement

(Against Funds)

No. of State

2007-08 2008-09 2009-10 2010-11 2011-12

More than 80% 18 20 24 25 30

Less than 80% and more than 60%

14 11 11 8 4

Less than 60% 3 4 0 2 1

Allocation of Outlay – 2012-13Allocation of Outlay – 2012-13

`̀ in crore in crore7333

345013621

229381567

Total 69959

Targeting Funds for the outlay of Rs. 69959 Crore Targeting Funds for the outlay of Rs. 69959 Crore in 2012-13in 2012-13

`̀ in crore in crore

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Status on State Share

20 States have released excess State share of Rs. 2554 cr. as on 31st March 2012.

State (Rs. in Crore) State (Rs. in Crore)

Andaman & Nicobar Islands

4.61 Assam 59.56

Chandigarh 8.13 Chhattisgarh 36.78

Dadra & Nagar Haveli 7.27 Daman & Diu 3.14

Goa 5.54 Gujarat 216.13

Haryana 133.72 Jammu & Kashmir 476.44

Jharkhand 47.00 Karnataka 179.48

Kerala 158.66 Lakshadweep 3.96

Madhya Pradesh 533.34 Maharashtra 10.30

Manipur 3.21 Nagaland 1.21

Puducherry 2.41 Rajasthan 663.19

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Status on State Share

Marginal Shortfall in 14 States amounting to Rs. 962.58 Cr.

State (Rs. in Crore) State (Rs. in Crore)

Andhra Pradesh 13.66 Arunachal Pradesh 48.68

Bihar 531.04 Delhi 8.87

Himachal Pradesh 14.84 Meghalaya 2.11

Mizoram 5.10 Punjab 235.27

Sikkim 2.58 Tamil Nadu 5.43

Tripura 8.82 Uttar Pradesh 65.28

Uttarakhand 4.31 West Bengal 16.63

Rs. 0.02 lakh is the shortfall in Orissa.

Staff Position of Finance & Accounts Staff Position of Finance & Accounts S. No. Name of State Vacancies % of Vacancies

    SPO DPO Block SPO DPO Block

1 Arunachal Pradesh 0 0 84 0 0 85

2 Assam 3 3 169 15 3 17

3 Bihar 3 81 322 33 53 60

4 Chandigarh UT 3 0 0 27 0 0

5 Chhatisgarh 8 41 25 80 76 17

6 D & N Haveli 1 0 0 50 0 0

7 Daman & DIU 0 1 1 0 33 50

8 Delhi 2 15 37 25 42 0

9 Gujarat 2 4 0 18 7 0

10 Haryana 5 5 180 22 12 60

11 Himachal Pradesh 0 3 191 0 13 63

12 Jammu & Kashmir 2 22 199 40 100 100

13 Jharkhand 9 31 74 53 43 30

14 Karnataka 1 2 341 11 3 23

15 Kerala 0 5 6 0 9 4

Staff Position of Finance & Accounts Staff Position of Finance & Accounts S. No. Name of State Vacancies % of Vacancies

    SPO DPO Block SPO DPO Block

16 Lakshadeep 1 0 0 33 0 0

17 Madhya Pradesh 0 10 1968 0 20 89

18 Maharashtra 0 14 2285 0 14 86

19 Meghalaya 2 7 0 25 14 0

20 Mizoram 1 0 0 20 0 0

21 Orissa 0 6 942 0 6 100

22 Puducherry 5 6 7 38 38 11

23 Punjab 2 12 14 20 24 3

24 Rajasthan 0 16 69 0 24 28

25 Tamil Nadu 3 26 496 50 17 57

26 Tripura 1 8 27 10 29 22

27 Uttar Pradesh 10 55 136 36 31 15

28 Uttarakhand 3 19 27 25 49 22

29 West Bengal 1 18 75 9 22 11

  Total 68 410 7675 22 23 45

Staff Position of Finance & Accounts Staff Position of Finance & Accounts

Position improved in 17 States of A&N Islands, Andhra Pradesh, Arunachal Pradesh, Daman & Diu, Delhi, Himachal Pradesh, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Manipur, Orissa, Rajasthan, Uttar Pradesh, Uttarakhand and West Bengal

Sanctioned 20615 Accountants at block level in 2012-13. 45% vacancy position at block level and the States need some

more time to position them. Urged the States to take urgent steps to fill up the existing

vacancies. Progress is being reviewed regularly in the Quarterly Review

Meeting of State Finance Controllers.

Capacity Building of Finance & Accounts staff Capacity Building of Finance & Accounts staff

5 days mandatory 5 days mandatory training for finance training for finance and accounts staff.and accounts staff.

15 States provided 15 States provided adequate training.adequate training.

Inadequate training Inadequate training provided by 14 provided by 14 States.States.

No training was No training was provided in 6 States.provided in 6 States.

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Capacity Building of Finance & Accounts staff Capacity Building of Finance & Accounts staff • Initiatives taken at National level.

During review meetings of State Finance Controllers provided capacity building on: - Moving towards quality in Financial Management with special

reference to Annual Grants under SSA. Preparation of Monthly Monitoring Report. Maintenance of online software to monitor progress of

procurement of contracts of above Rs. 10 lakh per contract. Preparation of Annual Procurement Plan . Procurement Procedure. Accounting of 13th Finance Commission Award . Responsive Accounting Procedure. Settlement of Advances. Tracking of funds at all levels. Clearance of pending audit observations.

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Capacity Building of Finance & Accounts staff Capacity Building of Finance & Accounts staff Disseminated findings of the following: -

Recommendations of the 14th and 15th JRM. Post Review of procurement carried out by World Bank

Consultants. Key observations made by Statutory Auditors for 2009-10 and

2010-11 Key observations made by IPAI for the 3rd Phase of financial

review. Regional Capacity Building Workshops: -

With a view to develop a cadre of Master Trainers at State and District level, conducted 3 Regional Workshops at Western, Southern and Northern regions.

Four such Workshops are planned in the current year.

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Capacity Building of Finance & Accounts staff Capacity Building of Finance & Accounts staff Preparation of Annual Training Plan: - To provide intensive capacity building at all levels, States have been

requested to prepare an annual training plan. 22 States prepared annual training plan for 2012-13. 13 States of Andhra Pradesh, Chhattisgarh, Dadar & Nagar Haveli, Daman

& Diu, Goa, Himachal Pradesh, Jammu & Kashmir, Lakshadweep, Manipur, Nagaland, Tamil Nadu, Uttar Pradesh and West Bengal are yet to prepare the plan.

Urged the States to provide adequate training at all levels and implement measures to assess its effectiveness and relevance.

Progress is being reviewed regularly in the Quarterly Review Meeting of State Finance Controllers.

AccountingAccountingBank Reconciliation StatementBank Reconciliation Statement Prepared monthly up to district level in all States except some Prepared monthly up to district level in all States except some

districts of Manipur and Meghalaya.districts of Manipur and Meghalaya.

Introduced at BRC level in most of the States, except Arunachal Introduced at BRC level in most of the States, except Arunachal Pradesh, Bihar, Delhi, Kerala, Manipur, Meghalaya, Rajasthan, Pradesh, Bihar, Delhi, Kerala, Manipur, Meghalaya, Rajasthan, Sikkim and Uttar Pradesh. Sikkim and Uttar Pradesh.

Monitored regularly in the Quarterly Review Meetings of State Monitored regularly in the Quarterly Review Meetings of State Finance Controllers.Finance Controllers.

Fund FlowFund Flow Release of GOI funds to all States by e-transfer/RTGSRelease of GOI funds to all States by e-transfer/RTGS

Except Sikkim, all States releases funds by Except Sikkim, all States releases funds by e-transfer/RTGS/Bank transfers from States to districts and e-transfer/RTGS/Bank transfers from States to districts and districts to sub-district level units based on facilities available. districts to sub-district level units based on facilities available.

Accounting Software Installed in 30 States

upto District level except in Madhya Pradesh (2 districts only covered)

BRC level covered in 6 States of Gujarat, Jharkhand, Maharashtra, Punjab, Tamil Nadu and West Bengal

Not installed in 5 States.

Parallel system of accounting is continuing in all States and the Manual cash book, is the basis of audit.

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Statutory Audit Report

• Audit Reports of all the 35 States/UTs for the year 2010-11 are on the SSA website.

• Comparative Statement of the receipt of Audit Report:-

Period 2009-10 2010-11

By November 8 States 11 States

Delay of 1 month 7 States 10 States

Delay of 2 months 9 States 6 States

Delay of 3 months 2 States 6 States

Delay of 4 months 2 States 0

Delay of 5 months 4 States 1 State

Delay of 6 months 2 States 1 State

Delay of 7 months 1 State 0

Statutory Audit (cont’d.)• Audit Report of 2011-12 is due on 1st November 2012.• Alert Memo for timely submission issued to all States on 11th

June 2012.• Held a video conference on 10th July 2012 to take stock of the

position. Accounts for 2011-12 closed by all States. Auditors appointed by all States except Goa, Gujarat and Uttarakhand

(will be appointed shortly) Audit is in process. All States have committed to submit the report by due date.

• Progress is being monitored in the Quarterly Review Meeting of State Finance Controllers.

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Statutory Audit (cont’d.)Compliance of Audit Report:• Awaited from the following States: • Vigorously pursuing with the States

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2005-2006(8 States)

Arunachal Pradesh, Andhra Pradesh, Bihar, Haryana, Chhattisgarh, Mizoram, Manipur & Nagaland

2006-2007(16 States)

Arunachal Pradesh, Andhra Pradesh, Bihar, Chhattisgarh, Haryana, Karnataka, Kerala, Madhya Pradesh, Manipur, Mizoram, Meghalaya, Nagaland, Puducherry, Sikkim, Tamil Nadu & Tripura

2007-2008(16 States)

Arunachal Pradesh, Bihar, Chhattisgarh, Haryana, Himachal Pradesh, Karnataka, Kerala, Meghalaya, Maharashtra, Punjab, Nagaland, Rajasthan, Tamil Nadu, Tripura, Uttar Pradesh & Madhya Pradesh

Statutory Audit (cont’d.)Compliance of Audit Report:

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2008-2009 (22 States)

Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Chandigarh, Goa, Gujarat, Haryana, Himachal Pradesh, Karnataka, Kerala, Maharashtra, Madhya Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Tripura, Tamil Nadu & Uttar Pradesh

2009-2010 (28 States)

Assam, Andhra Pradesh, Arunachal Pradesh, Bihar, Chandigarh, Chhattisgarh, Goa, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Jammu & Kashmir, Karnataka, Kerala, Maharashtra, Madhya Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttar Pradesh & West Bengal

Status of Internal Audit

10 States on concurrent basis

15 States in progress 10 States not carried

out

Internal Audit• In view of the significant increase in the quantum of outlays,

the States have been requested to strengthen the internal audit system as under: Prepare an Annual Internal Audit Plan to focus on:

review of priority operations, internal controls and risk management in the high expenditure and priority areas like teacher’s salary, civil works, procurement, unadjusted advances, BRC/CRC expenditure etc.

Conduct the internal audit on concurrent basis. Revise the staffing level as necessary to meet these

objectives.• The progress is being monitored in the Quarterly Review

Meeting of State Finance Controllers.

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Concurrent Financial Reviews & Procurement PlanConcurrent Financial Reviews & Procurement Plan IPAI has completed 1st, 2nd and 3rd phase of concurrent

financial review in all States; reports shared with all States for follow up action:

Settlement of review Reports:

1st phase : completed for 16 States; in progress for 19 States.

2nd phase: completed for 1 State; in progress for 34 States.

3rd phase: In progress for all States.

The IPAI’s contract for the 4th Phase of review has now been extended for 2012-14.

Concurrent Financial Reviews & Procurement PlanConcurrent Financial Reviews & Procurement Plan State Procurement Plan 2012-13:

Requested the States to upload on States’ web-sites.

Intimation received from 5 States of Andhra Pradesh, Madhya Pradesh, Maharashtra, Tripura and Rajasthan.

On line software to monitor progress of procurement;

Software hoisted in a dedicated website called www.rte-ssaprocurement.com.

Login id and password shared with States and Districts.

Operational Manual developed and disseminated.

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