FMG for SFT Orientation 4 th Feb 2008

Integration of Finance Accounts at SHS & DHS • Guidelines on financial, accounting, auditing, fund flow and banking arrangements, approved by EPC, vide letter No. 107/FMG/2005 -06 dated 14 th December 2006. – To synergise the manpower and other related resources scattered earlier under different societies under NRHM. – To provide the Mission with unified financial and accounting processes for fund flow and reporting back of utilization. • The implementation of this guidelines was to be reviewed after 6 months from 1 st April 2007.

Delegation of Powers • FMG, Mo. HFW has sent a detailed instructions for delegation of powers. • This contains: – Governing principles to be adopted in letter & spirit. – Even a model format for delegation for various activities at all levels viz. State, District, Block, CHC, PHC, SHC and VHSC envisaged under NRHM. State may suitably adopt the delegation. • Copy of State GO issuing the Delegation may be obtained.

Concurrent Audit • FMG, Mo. HFW has sent a detailed guidelines for putting in place a system of concurrent audit vide its DO No G 27017/16/07 -NRHM-Fin dated 6 th August 2007. • Whether the State has put this system in place? • Whether the appointment of auditor’s for DHS is decentralized to the District or is being appointed by the State? • Are the analysis of the report being submitted on monthly basis to the Mission Director, NRHM.

Reports Timely receipts of the following reports: 1. Financial Monitoring Reports – Quarterly (within 1 month of the end of quarter) 2. Statement of Fund Position - Quarterly (within 1 month of the end of quarter) 3. Statement of bank balance – Monthly (within 10 days of the end of the month) 4. Annual Audit Report – by 31 st July of the following year. 5. Utilization Certificates – Annually along with Audit Reports 6. Provisional UCs – as soon as possible after the end of the financial year.

Reports…. • Analyze the for reasons for Delay in submission of Audit Reports. • Whether the next years Auditor’s have been appointed (2007 -08 auditor to be appointed by 28 th February 2008) • Action Taken Report on the Auditor’s Note & Management Letter with regard to Internal Control Weaknesses etc.

Fund Flow • Whether the funds are being released to the Districts as per DHAP? • Whether the releases under RCH Flexible pool to the District are being done as Flexible pool or activity wise? • Whether the fund flow from State to District is electronic or by physical instruments? • Whether the State is transferring the funds to the District or directly to the PHCs? • Whether any fund transfer takes place through cash or bank at the lower levels, say from Block to PHCs, from PHC to SHCs etc.

State’s Contribution • Has State contributed 15% of its contribution in SHS Account. • Whethere has been 10% increase in State’s budget over previous year.

Internal Controls • Payment should invariably be made through account payee cheque or Demand drafts/electronic transfer • Heavy cash (>Rs 5000/-) should not be kept in office, • Bank Reconciliation should be done on monthly basis. • Cash book to be written on daily basis (Appendix 7) & closed on same day & put up for checking & authentication to one of the cheque signing officers as decided by the chairperson of the Exe Commtt of SCOVA or DHS • All the ledger accounts should be closed at the end of the month. Monthly totals should be tallied with classified abstract & discrepancy if any should be sorted out,

Books of Accounts • Cash book with cash & bank column, • Petty cash book, • Cheque issue register, • Register of money orders & bank drafts received, • Register of bank drafts dispatched, • Ledger (Head-wise), • District program management unit-wise ledger at State SCOVA (Control Account),

Books of Accounts • Register of staff payments, • Register for Investments, • Stock Register for: – Civil Works, – Machinery & Equipments, – Furnitures & other non-consumable items, – Register for Drugs & Medicines, – Register for consumable articles. • Register for temporary advances: – Advances to staff (Control Account) – Advances to Contractors/Suppliers (Control Account) – TA/DA advance (Control Account)

HR issues • Sanctioned Position for Finance and Accounts staffs: – SHS – 2 persons; State Finance Manager and State Accounts Manger – DHS – 1 person, District Accounts Manager – Block Level – 1 person; Block Accounts Manager • Whether Finance and Accounts staff in place or not? ? • Since when the position is vacant? ? • What is the Action taken by State or District? • Is there a system in place for transparent appraisal of the finance and accounts staff?

Capacity Building • Whether State, District and Block level finance and accounts staff have been trained or not? • Whethere exist a training plan of the accounts staff of Block, PHC and ANM at SHCs.