Capacity Building Capacity building for financial Management Integral part for effective and efficient functioning of Financial Management Unit. Needs.

Capacity Building

• Capacity building for financial Management

• Integral part for effective and efficient functioning of Financial Management Unit.

• Needs to be continuous and customized.

• Subjects covered –Planning Budgeting including financial norms.AccountingFund flow arrangementsFinancial reporting Internal AuditAnnual AuditProcurement

Capacity Building

• Continuous capacity building is necessary to equip finance and internal audit staff with sufficient knowledge of the area of their work.

• This would enable the staff to carry out the work more efficiently and systematically.

• Minimum 5 days training is mandatory in a year.

• This may be given at a stretch or staggered.

• Desirable to provide 5 days training at a stretch to all new recruits.

• Training to existing staff may be staggered.

• Identification of resource persons is most important at State, District and sub-district level.

Capacity Building

Level of Training Resource Persons

State Master Trainers identified at State level, Chartered Accountant, TSG Consultants

District Master Trainers identified at State level, Chartered Accountant, TSG Consultants

Block/Cluster Master Trainers identified at district level, Chartered Accountant

VEC/School Master Trainers identified at block/cluster level

Capacity Building

Training Content

• Separate training content for different targets group at different levels: VEC/School Cluster Block District Project Office State Project Office

• Tailor made training content for different spending entities at different levels.

Capacity Building

Training Content

• Needs to develop a training content covering: Planning Budgeting including financial norms Accounting including double entry system Fund flow arrangements Financial reporting Internal Control and Internal Audit Auditing Procurement procedure

• Include exercises on the above subjects and its solutions

• Case studies on Accounting and procurement.

Capacity Building

Develop Training Content covering:• Planning

Objectives of planning, identification of planning teams, participatory planning process, interaction with community and targets groups,consultative meetings, information need and collection of information, data analysis and its utilization in the plans, steps in planning, situational analysis, state and district profile, state and district plans, education profile, problem and need identification, goals and target setting and need based planning.

Capacity Building

Develop Training Content covering:

• Budgeting Preparation of annual work plan and budget, financial norms under SSA, NPEGEL and KGBV and clarifications issued thereof, progress overview, spillover activities, appraisal of the plan, approval of the plans by the Project Approval Board, budget calendar.

Capacity Building

Develop Training Content covering:• Accounting

General Financial Rules, delegation of financial powers, duties and responsibilities of Drawing and Disbursing Officer (DDO), double entry method based on mercantile system of accounting, maintenance of books of accounts and registers, advances, norms for regulating advances, advance register, monitoring of advances, account head, maintenance of cash book, journal,

Capacity Building

Develop Training Content covering:

• Accounting ledger, correction of errors, bank reconciliation, staffing structure in Finance and Accounts and Internal Audit, capacity building of accounts and audit staff, control of expenditure, re-appropriation of funds, salary bills and other claims, travelling allowance.

Capacity Building

Develop Training Content covering:

• Office expenses Stationery, recurring contingent and miscellaneous costs, postage, POL, hiring of vehicles, maintenance of vehicles/equipment, purchase of office furniture/equipment, telephone/fax/internet, consumables etc.

Capacity Building

Develop Training Content covering:

• Funds flow arrangements Funds of the State Implementing Society, procedure for release of funds, flow of funds, opening of bank accounts, e-transfer of funds and interest.

Capacity Building

Develop Training Content covering:

• Financial Reporting Preparation of quarterly fund flow and cash forecast statement, quarterly progress statement, treating advances as expenditure, release of funds to the districts, district wise expenditure statement, Financial Performance and Status on financial indicators

Capacity Building

Develop Training Content covering:

• Internal control Supervision and monitoring, concurrent financial review and monitoring by GOI, indicators for financial management checks by GOI.

• Internal Audit Arrangement for internal audit, scope of internal audit, coverage, report writing and follow up action on internal audit

objections/observations.

Capacity Building

Develop Training Content covering:

• Internal control Supervision and monitoring, concurrent financial review and monitoring by GOI, indicators for financial management checks by GOI.

• Internal Audit Arrangement for internal audit, scope of internal audit, coverage, report writing and follow up action on internal audit

objections/observations.

Capacity Building

Develop Training Content covering:• Auditing

Statutory audit by Chartered Accountant firm, selection CA firms, scope of audit, coverage, audit of VECs receiving more than Rs. 1 lakh per year in a cycle of three years, utilization certificate, submission of audit report by due date, preparation of annual financial statements, balance sheet, income and expenditure account, receipt & payment account, annual report, statutory audit calendar and pursuance of audit objections.

Capacity Building

Develop Training Content covering:

• Procurement procedure Levels of procurement, preparation of procurement plan, various methods of procurement-

open tender, limited tender, single tender, without tender and civil works by community participation,

financial ceiling prescribed for each method of procurement, preparation of standard bidding documents, various steps involved in tendering process,

Capacity Building

Develop Training Content covering:

• Procurement procedure negotiation, repeat orders, rejection of all tenders, service contracts, selection of non-government organizations, contract management and documentation, post review of contracts by Government of India, mis-procurement and complaint handling mechanism.

Capacity Building

Develop Training Content covering:

•Procedural lapses

Various observations made by Institute of Public Auditors of India (IPAI),

Observations made by statutory auditors on SSA accounts.

Observations made by review teams.

Status of Capacity Building – Finance & Accounts staffStatus of Capacity Building – Finance & Accounts staff2009-10 2009-10

Capacity Building

• Capacity building for 2010-11 The training provided in 2009-10 was not

encouraging in many States.

States need to provide more focus in the current year.

Sufficient budget provision made in the current year’s budget under the general head of capacity building or specifically under capacity building of Finance and Accounts Staff in some States.

States to plan this activity at all levels in a more vigorous manner.