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					RELEASE & MONITORING DIVISION
DEPARTMENT OF PUBLIC
ACCOUNTS
MINISTRY OF FINANCE.

                       Lepo
                   Chief Accounts Officer
OVERVIEWS
 Introduction
 Fund Release Procedures in Vague
Revised Fund Release Procedure
Minimum Conditions for Budgetary Fund
 Release
Delays in Fund Releases?
Risk of Uncontrolled Fund Releases
Monitoring & Reporting of Fund Releases
Fund Release of UN Projects
Introduction
 Budgetary fund release constitutes authorizing transfer of
  public money from GCA to LC Accounts of BAs

 Article 14(3) of the Constitution of the Kingdom of Bhutan
  states that Public money shall not be drawn from the
  Consolidated Account except through appropriation in
  accordance with the law

 The FRR 2001 outlines the procedures for budgetary fund
  releases and DPA is responsible for releasing funds
Introduction ……..continued…
 Fund release is the last step in receiving public money
 for expenditure by BAs and hence increased public
 interest in the fund release systems

 MoF has come up with simplified version of Revised
 Fund Release Guidelines
Fund Release Procedures in Vogue
 Fund release system was designed to scrutinise the
  readiness of the agencies to undertake the budgeted
  activities & to avoid lapse of released funds
 FRR 2001 requires submission of adequate supporting
  documents
 Release procedures reviewed & revised over the years
 Combined Release Report (CRR) done away with
 Supporting documents reduced to bare minimum in
  July 2007
Fund Release ………contd
 Current regular budget released quarterly for central
 agencies and Dzongkhags, and half yearly to gewogs

 Capital budget released based on a request letter with
 documents such as technical sanction, work order etc
Revised Fund Release Procedures
 Fund release procedure was reviewed during Annual
 Financial Management Workshop in April 2009

 Workshop feedback – existing release procedure is
 flexible and meets the Agencies’ requirements

 MoF has done away with all the supporting documents
 for capital releases

 A time frame for releasing funds by DPA has been set
Revised Fund Release …….
 A standard Fund Requisition Form (FRF) has been
 prescribed

 E-release and fax-releases will be the modality for
 delivering fund release orders
Revised Fund Release Procedure
Sl/   Type of Fund          Documents Required Time Frame for DPA for
No    Releases                                 Processing Releases
A     Budgetary Releases:
1     Current Regular       No documents. Release Current Release completed
      Release               on quarterly basis    by 15th of the first month of
                            without having to     every quarter
                            request
2     Current Ad-hoc        Fund Requisition Form 2 working days
      Release               to be submitted
                            without any supporting
                            documents
3     Capital Releases      Fund Requisition Form 5 working days
      (Construction &       to be submitted
      Non-construction)     without any supporting
                            documents
Revised Fund Release ……….
B   Non-Budgetary
    Releases:
1   Refundable & Non-   Request letter with a copy 7 working days
    Revenue Release     deposit invoices confirmed
                        by Bank
2   Un-encashed         Request letter with original 5 working days
    Cheques             unencashed Cheques and
                        explanations
Fund Requisition Form (FRF)
                                            (Agency’s Letter Head)
Ref No………..                                                                         Date: ………….

The Director
DPA ……………………..
Subject: Request for Release of Fund

Sir,
Kindly arrange to release fund to our LC/PLC account No…….. for the following activities from the approved budget of
     Fiscal Year …….:

 S/No Budget line                 FIC              Approved                     Release              Remarks
      & Activity                                   Budget (Nu)                  Request
                                                                                (Nu)
 1
 2
 …….



  (Head of Accounts Section)                                                     (Head of Agency)
Minimum Conditions for Budgetary Fund
Release
 Sufficient Budget provision
 Should have sufficient budget provision against activity
 New activity – budget incorporation process has to be complete


 Monthly Account
 Within 15 days after completion of the month


 Donor Fund balance
   Sufficient donor fund balance with DPA (RGoB)
Delays in Fund Releases?
 No delays in fund releases
 If yes, is due to non-fulfilment of Minimum
  Conditions
 Delays due to delivery of request/release orders by post
 Standard FRF could be easily faxed to DPA as no
  supporting documents are required
 E-release and fax-releases
 Time frame for fund release set in DPA
 Problem with BAS?
Risk of Uncontrolled Fund Releases
 Expenditure on unbudgeted activities
 Agencies use the fund release as approval for expenditure and use it even for unbudgeted activities
 Affects the implementation of the planned activities

 Huge lapse fund
 Huge amount of fund is left unspent at the end of fiscal year
 Tendency to withdraw large sums of cash which is not in keeping with the financial rules and
   regulations

 Adverse affect on cash flow and GCA
 Due to the reasons mentioned above, cash flow position will be adversely affected and will incur huge
   cost on overdraft charges
Monitoring & Reporting of Fund Releases
 DPA to monitor the budgetary fund releases every
  quarter
 Over and under utilization of funds released shall be
  adjusted
 All budgetary fund releases shall be completed by the
  15th of June of every Fiscal Year
 A quarterly fund release status report
 Annual Fund Release Report to be annexed to the
  Budget Report
FUND RELEASE PROCEDURE on UN
ASSISTED PROJECTS


                                      Fund Request
 Spending Agencies                   through GNHC    UN Organization



                   Release request
  Fund Release




                 DPA
www.mof.gov.bt
1. Notice_Board – Circulars for Govt. Agencies – Fund
   Release procedure (1st July 2009

2. Publication – Manuals – Fund Release Guideline
   (Revised) July 2009




       THANK YOU

				
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posted:7/19/2012
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