Distribution of Expenditure – 2011-12 ` in crore 3401 18925 2158 12111 1242 Total 37837
Category wise Allocation and Expenditure Rs. in Crore 2007-082008-092009-102010-112011-12 OutlayExpdr.OutlayExpdr.OutlayExpdr.OutlayExpdr.OutlayExpdr. Access & Retention 2079139028742085262219935425308956103401 Quality 93227092108619331146931240521401170133042318925 Gender & Equity 165992520831316164510552412158840572158 School Infrastructure 7666588580755995773651751536994882035812111 Management 778492716618843679109878013281242 Total 21504157852460919344275382130745705319586177537837
Improved Trend in Quarterly Expenditure Improvement in expenditure trend after the introduction of monthly expenditure plan. % Achievement to approved outlay
Analysis of Financial Performance % Achievement (Against Outlay) No. of State 2007-082008-092009-102010-112011-12 More than 80%141718712 Less than 80% and more than 60% 12 142214 Less than 60%96369 % Achievement (Against Funds) No. of State 2007-082008-092009-102010-112011-12 More than 80%1820242530 Less than 80% and more than 60% 1411 84 Less than 60%34021
Allocation of Outlay – 2012-13 ` in crore 7333 34501 3621 22938 1567 Total 69959
Targeting Funds for the outlay of Rs. 69959 Crore in 2012-13 ` in crore
9 Status on State Share 20 States have released excess State share of Rs. 2554 cr. as on 31 st March 2012. State(Rs. in Crore)State(Rs. in Crore) Andaman & Nicobar Islands 4.61Assam59.56 Chandigarh8.13Chhattisgarh36.78 Dadra & Nagar Haveli7.27Daman & Diu3.14 Goa5.54Gujarat216.13 Haryana133.72Jammu & Kashmir476.44 Jharkhand47.00Karnataka179.48 Kerala158.66Lakshadweep3.96 Madhya Pradesh533.34Maharashtra10.30 Manipur3.21Nagaland1.21 Puducherry2.41Rajasthan663.19
10 Status on State Share Marginal Shortfall in 14 States amounting to Rs. 962.58 Cr. State(Rs. in Crore)State(Rs. in Crore) Andhra Pradesh13.66Arunachal Pradesh48.68 Bihar531.04Delhi8.87 Himachal Pradesh14.84Meghalaya2.11 Mizoram5.10Punjab235.27 Sikkim2.58Tamil Nadu5.43 Tripura8.82Uttar Pradesh65.28 Uttarakhand4.31West Bengal16.63 Rs. 0.02 lakh is the shortfall in Orissa.
Staff Position of Finance & Accounts S. No.Name of StateVacancies% of Vacancies SPODPOBlockSPODPOBlock 1Arunachal Pradesh 00840085 2Assam 3316915317 3Bihar 381322335360 4Chandigarh UT 3002700 5Chhatisgarh 84125807617 6D & N Haveli 1005000 7Daman & DIU 01103350 8Delhi 2153725420 9Gujarat 2401870 10Haryana 55180221260 11Himachal Pradesh 0319101363 12Jammu & Kashmir 22219940100 13Jharkhand 93174534330 14Karnataka 1234111323 15Kerala 056094
Staff Position of Finance & Accounts S. No.Name of StateVacancies% of Vacancies SPODPOBlockSPODPOBlock 16Lakshadeep 1003300 17Madhya Pradesh 010196802089 18Maharashtra 014228501486 19Meghalaya 27025140 20Mizoram 1002000 21Orissa 0694206100 22Puducherry 56738 11 23Punjab 2121420243 Rajasthan 0166902428 25Tamil Nadu 326496501757 26Tripura 1827102922 27Uttar Pradesh 1055136363115 28Uttarakhand 31927254922 29West Bengal 1187592211 Total684107675222345
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 training for finance and accounts staff. 5 days mandatory training for finance and accounts staff. 15 States provided adequate training. 15 States provided adequate training. Inadequate training provided by 14 States. Inadequate training provided by 14 States. No training was provided in 6 States. No training was provided in 6 States.
15 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 13 th Finance Commission Award. Responsive Accounting Procedure. Settlement of Advances. Tracking of funds at all levels. Clearance of pending audit observations.
16 Capacity Building of Finance & Accounts staff Disseminated findings of the following: - Recommendations of the 14 th and 15 th 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 3 rd 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.
17 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.
Accounting Bank Reconciliation Statement Prepared monthly up to district level in all States except some districts of Manipur and Meghalaya. Prepared monthly up to district level in all States except some districts of Manipur and Meghalaya. Introduced at BRC level in most of the States, except Arunachal Pradesh, Bihar, Delhi, Kerala, Manipur, Meghalaya, Rajasthan, Sikkim and Uttar Pradesh. Introduced at BRC level in most of the States, except Arunachal Pradesh, Bihar, Delhi, Kerala, Manipur, Meghalaya, Rajasthan, Sikkim and Uttar Pradesh. Monitored regularly in the Quarterly Review Meetings of State Finance Controllers. Monitored regularly in the Quarterly Review Meetings of State Finance Controllers. Fund Flow Release of GOI funds to all States by e-transfer/RTGS Release of GOI funds to all States by e-transfer/RTGS Except Sikkim, all States releases funds by e-transfer/RTGS/Bank transfers from States to districts and districts to sub-district level units based on facilities available. Except Sikkim, all States releases funds by e-transfer/RTGS/Bank transfers from States to districts and 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.
20 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:- Period2009-102010-11 By November8 States11 States Delay of 1 month7 States10 States Delay of 2 months9 States6 States Delay of 3 months2 States6 States Delay of 4 months2 States0 Delay of 5 months4 States1 State Delay of 6 months2 States1 State Delay of 7 months1 State0
Statutory Audit (contd.) Audit Report of 2011-12 is due on 1 st November 2012. Alert Memo for timely submission issued to all States on 11 th June 2012. Held a video conference on 10 th 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. 21
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 teachers 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. 23
Concurrent Financial Reviews & Procurement Plan IPAI has completed 1 st, 2 nd and 3 rd phase of concurrent financial review in all States; reports shared with all States for follow up action: Settlement of review Para: 1 st phase : completed for 16 States; in progress for 19 States. 2 nd phase: completed for 1 State; in progress for 34 States. 3 rd phase: In progress for all States. The IPAIs contract for the 4 th Phase of review has now been extended for 2012-14.
Concurrent 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.www.rte- ssaprocurement.com Login id and password shared with States and Districts. Operational Manual developed and disseminated.
Key Recommendations Inform the states, as they start their AWPB preparation process, the likely budget available from MHRD. This indicative amount should be based on available evidence from budget discussions, rather than the desirable amount based on States needs. With increasing scale of the Program, MHRD may consider a Financial Management Improvement Plan specifically targeting the weaker states, which in case of SSA are also the large spending states. The expertise of the State Finance & Accounts Service officers could be most effectively utilized to man the Finance and Accounts wings for professional management. MHRD should follow up with States to ensure that all procurement plans are hosted on the respective websites by mid-August 2012. MHRD should brief the 17 th JRM on the action taken on the recommendations and observations made in the IPAI reports. MHRD should follow up on these and take appropriate action.
Other Recommendations Budget Analysis MHRD may consider the way in which it makes approvals during the PAB process. The Mission suggests the following for MHRDs consideration: Inform the states, as they start their AWPB preparation process, the likely budget available from MHRD. This indicative amount should be based on available evidence from budget discussions, rather than the desirable amount based on States needs. Give each State an indicative Central allocation, so that they can plan their AWPBs appropriately and such that the sum of these indicative State allocations adds up to the total indicative Central share. These State allocations could be based on the needs of different states, as measured for example by the Education Development Index.
Other Recommendations In this way, States AWPBs would contain their priority items, the costs of which they can be reasonably sure of spending from the allocated SSA funds. States would also be able to prepare their own budgets accordingly. States could of course plan for more activities than can be financed from the indicative allocation, creating first order and second order priorities. Should additional Central funds become available, and States have fully funded their first order priorities, then these second order priorities could be considered. MHRD would need to decide whether at that point to hold a supplemental PAB, again allocating Central resources in line with objective needs of States. Financial Management Improvement Plan With increasing scale of the Program, MHRD may consider a Financial Management Improvement Plan specifically targeting the weaker states, which in case of SSA are also the large spending states. MHRD should monitor the FM improvement plans for the large spending states on a regular basis and provide update on the status to JRM. States must continue to focus on quality of audit reports and have a time bound plan for compliance with audit observations of previous years.
Other Recommendations Finance and Accounts Staffing Three main challenges for the program for FM staffing are: (a)urgent attention to maintain acceptable level of staffing in large states at district and sub-district level; and (b)time-bound plan to fill vacancies at sub-district level in all states, as weak financial management at sub-district level continues to be highlighted in audit and review missions; and (c) sanctioning posts as per norms at district level in all states. The expertise of the State Finance & Accounts Service officers could be most effectively utilized to man the Finance and Accounts wings for professional management. Accounting Software States should have time bound target to discontinue manual records at state and district level and closely monitor implementation of computerized accounting.
Other Recommendations Procurement On-line Software to Monitor Progress of Procurement MHRD should monitor the website closely to ensure that States are uploading information on the database otherwise the purpose will be defeated. It is also suggested that the Operational Manual be uploaded on to the SSA website to provide easy access to States and Districts. Procurement Plan The Mission recommends that MHRD should follow up with States to ensure that all procurement plans are hosted on the respective websites by mid-August 2012. Though MHRD has been making all out efforts to ensure that PAB minutes are issued in a timely manner, there has been significant delay this year. Delay in issuing the PAB minutes impede procurement activities and program implementation. The Mission urges the MHRD to press further in order to ensure that PAB minutes are issued by 25 th April in the following years, as mentioned in the Budget Calendar.
Other Recommendations Compliance of IPAI Review Reports The Mission recommends that MHRD should brief the next JRM on the action taken on the recommendations and observations made in the IPAI reports. MHRD should follow up on these and take appropriate action wherever non-compliance is noted. The Mission also reiterates the recommendation made in the 15 th JRM whereby it was suggested that MHRD include specific checklists for review of procurement as part of the ToR for internal and external audit and that the Tor should prescribe a percentage of purchase related transactions that will need to be reviewed by the auditors.