Financial Processes – 3rd Common Review Mission 03rd Nov. 2009 National Rural Health Mission Ministry of Health & Family Welfare Government of India New Delhi Initiatives in Financial Management Delegation of Administrative & Financial Powers Intended outcome: Increased absorption capacities in the public health delivery system. Timely disbursement of funds. Early execution of work. Unification of Financial and Accounting processes under NRHM Intended outcome: To synergise the manpower and other related resources. Unified financial and accounting processes for fund flow and reporting back of utilization. Improvement in the financial monitoring. Better control on the financial aspects of the programme. Information can be made available from a single point of contact. Tally ERP.9 Intended outcome: Uniformity in the maintenance of accounts with accurate flow of financial information. Improvement in the Financial Management. Better integration of physical and financial inputs. Error free reconciliation of expenditure. Timely reporting to the Centre by State and to State by Districts. Concurrent Audit Intended outcome: Enhanced quality and timeliness of book keeping. Faster adjustment of advances leading to higher utilization levels. Enhanced level of internal controls in the system to minimise the errors and frauds. Timely preparation of reports to be forwarded to the State by the District. Proper books of accounts made available for statutory audit. Statutory Audit Intended outcome: ‘Open Tender System’ being followed from 2008- 09 for the selection of auditor to improve the quality and coverage of audit. Audit reports for 2008-09have been received from 14 States Previous years adverse remarks are being resolved and not to be repeated in the following year. Minimising the delay in submission of Audit reports. Appointment of Director (Fin. & Acc.) in SHS Intended outcome: To provide the professionalism in the SPMUs and DPMUs with a distinct leadership. To put in place a credible system of internal control. To deliver a better quality of accounts and financial management. Co-ordination with the senior officials of other programme divisions becomes easier. Would play the role of a nodal officer in the respective State for all financial issues. E-Banking Intended outcome: To send funds electronically to the lowest possible level within the shortest possible time. To have an on-line Financial Management Information System (FMIS) in place. Real time updation of FMR in the respective activity. MIS report of Budget/Actual can be viewed any time on the click of the button. Proper control to reduce the chances of any frauds. Items to be Checked Delegation of Powers Does the adequate delegation of powers exist under SHS and DHS? (Ministry on 1st May 2007 had forwarded a detailed Framework for Delegation of Administrative and Financial Powers to all States). Unification under NRHM What is the status of implementation of the Guidelines on financial, accounting, auditing, fund flow and banking arrangements under NRHM which was issued by the Ministry on 14th December 2006? Who are the joint signatories at the SHS and DHS level? Unification of Vertical/Disease Control programmes: Whether the NDCPs have been integrated? Extent of integration at State, District and Sub-district levels may be indicated. Fund Flow: Mode of Fund Transfer: • State to Districts: How are the funds being transferred and delay. • Districts to Blocks/CHC/SHC: What is the mode of fund transfer (electronic/manual) Tally ERP.9 An advisory dated 12th August, 2009 issued for procuring customized Tally ERP.9 first at state and district level. Status of procurement and use? Extend use of Tally ERP.9 at block level in second phase. Status? RCH-I Accounts: • What is the RCH-I Unspent available at the State and District level? • Time span needed for returning money to GoI. Type of Financing: • Are the districts being given the flexible funds under RCH – II programme? Or the fund transfer to the districts is still activity specific? • May please indicate the quantum of funds devolved to the districts as the flexible funds. Is it specific? Janani Suraksha Yojana: • Problems faced in payment under JSY programme. • Whether adequate JSY funds are available at all levels? • Whether the JSY funds distributed till the ANM level or only till PHC level? Untied Fund, Annual Maintenance Grants & Corpus Grant to RKS Fund Utilization: • Have all the sub-centres accounts opened? • Whether these funds have reached the facility? • Problems faced in the operation of untied funds & Annual Maintenance Grant Fund at Sub-Health Centres/PHC/CHC? • Whether these funds are being utilized properly? • Whether these funds are subjected to community scrutiny? Audit Report: • Expected date for the submission of the Audit Report, in case it has not been submitted yet? • Has the auditor gone to the districts or districts accounts were called at the State headquarters? • Any other major issue regarding the audit arrangements? Concurrent Audit: • Is it operational in all districts? If not number and name of the districts may be indicated? • Whether the auditor for Concurrent monthly audit appointed at the District level or at the State level? • What is the quantum of monthly fee payment to the concurrent Auditor? • Whether the payment is made at the District or State level? • Whether State receives a summary report at the State level. • Whether a summary of important points flagged by Monthly concurrent auditor is submitted to Mission Director, GoI. Monitoring: • What is the frequency of interaction of Districts Accounts Managers with the State Finance/Accounts Manager? • What is the frequency of interaction of District Accounts Mangers with the Accountants (or person maintaining the accounts) at the CHC/PHC/ and ANM at Sub-Health Centres? SPMU and DPMU: • Staff position of all contractual employees in SPMU and DPMU i.e. Sanctioned and in place? • Quantum of payments to SFM, SAM, SPM, DPM, DAM. • Whether the payments are timely? • What are annual increments? Status of Block Management Unit: • Block Health Managers in position and vacancy. • Block Accountant in position and vacancy. • What are the reasons for vacancy and the action plan of State to fill up the vacancy. • Have the Block Accountants been assigned clear job responsibilities? Capacity Building of F&A Staff: Does the State has a training calendar from all District Accounts Manager for training the accountants in Blocks, PHCs and SHCs? Is State taking help of any institution for training? Interest Fund: • Does State and Districts monitor interest amount? • What are the items on which interest funds spent? • Please indicate the quantum of interest (shown six-monthly in bank statements) earned on SHS accounts. • Please indicate the quantum of interest (shown six-monthly in bank statements) earned on DHS accounts of District visited. Bank Accounts: • How many bank accounts do SHS have? • How many bank accounts are redundant and have not been operated for a long time? Rogi Kalyan Samities: See the trend of earnings of RKS. See the trend of State Government budgetary support to the health system at Distt. and below. Is RKS being used only to facilitate opening of bank account? Is RKS involved in management of the hospital? Financial Reporting: Are monthly FMRs being submitted by the districts to the State on a regular basis (by 10th of the following month)? Whether Statement of Fund Position (showing Cash, Bank & Advances) being prepared by the State and Districts? What is the source data for preparing FMR at State and Districts (it should be as per Cash book & Ledgers)? FMR uploaded on HMIS? Internal Control: Is there any system of reconciliation of advances? Does State & Districts prepare age-wise analysis of advances? Has the State Govt. or SHS issued any order for closing the advances within a fixed period of time? What is oldest advance pending in the State & Districts? Does SHS & DHS carry out bank reconciliation on a periodic basis (fortnightly or monthly)? Are the Cash books closed daily? State Share Contribution: Check15% State share contribution for NRHM during 2008-09 and 2009-10. Increase in State Health budget (should be increase of outlay by 10% every year) Check Lists •For State Level •For District Level •For Block Level Thank you.
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