Hydrology Project-II Funded by World Bank A presentation by Controller of Accounts Union Ministry of water resources
Jan 14, 2016
Hydrology Project-II
Funded by World Bank
A presentation byController of Accounts
Union Ministry of water resources
Strategic Context & Rationale
Water Resources Management : key issues Floods, drought, scarcity, quality
Calls for comprehensive planning, paradigm shift from isolated to comprehensive planning and management
in a river basin context.
Requires sound Hydrological Information System
Strategic Context & Rationale
HIS: Integrated water information system
Hydrological and meteorological data
reliable, comprehensive, timely
Scientific, hydrological, meteorological observation networks
Data processing and storage facilities
Reliable data communication arrangements
Trained manpower for HIS operations
Strategic Context & Rationale HP-I (‘95-03; Rs 605.28 Cr) helped create
Associated improved facilities for HIS Standardized procedure and inter-agency protocol
for data collection, collation, processing and exchange
A movement for improved water resource management
HP-I failed to overcome ‘Rigidities of insular culture’ Data ownership and information sharing issues
HIS still deficient in Geographic coverage Analytical usage, as envisaged
Organization National Level Steering Committee (NLSC)
Secretary- MOWR (chair), central agencies chiefs, SLSC chiefs, states’ secretaries
Three HIS Management Groups (HISMGs)1. Data use and Dissemination (DD)2. Institutional Strengthening/ Training (IS)3. Technical (T)
HIS Coordination Secretariat, assisted by Management consultants Technical consultants Other national consultants
Organization
13 Participating States: 9 old : Andhra Pradesh, Chattisgarh, Gujarat,
Maharashtra, Karnataka, Kerala, Madhya Pradesh,,
Orissa, Tamil Nadu.
4 new : Himachal Pradesh, Goa, Pondicherry and Punjab
8 Central Agencies: MoWR, CWC, CGWB, NIH, CWPRS, IMD, CPCB, BBMB.
Organization 13 Participating States:
9 old : Andhra Pradesh,
Chattisgarh, Gujarat,
Maharashtra, Karnataka,
Kerala, Madhya Pradesh,,
Orissa, Tamil Nadu.
4 new : Himachal Pradesh,
Goa, Pondicherry and Punjab
8 Central Agencies: MoWR, CWC, CGWB, NIH,
CWPRS, IMD, CPCB, BBMB.
Project Design & Costs
A w aren ess ra is in gkn ow led g e sh arin g .
Im p lem en ta tion su p p ort.
In s titu t ion a l s tren g th en in g(4 9 .3 8 m U S D )
(36% )
H yd ro log ica l D es ig n A id sD ec is ion S u p p ort S ys tem s
P u rp ose-D riven S tu d ies .
V ertica lE xten s ion(5 8 .9 5 m U S D )
(44% )
D ata co llec tionD ata p rocess in g
Tra in in g
H orizon ta l E xp an s ion(2 6 .7 2 m U S D )
(20% )
H P -II
Project Design & Costs (mn US$)
6.88
28.31
58.36
79.37
94.12
102.44 105.51
Year-1 Year-2 Year-3 Year-4 Year-5 Year-6 Year-7
US$mIBRD :105.51 Government :29.54
IBRD Disbursement (US$ in mn)
Project Design & Costs (Cr Rs)
Project cost 631.83
Base Cost525.59
Central220.92(34.96%)
States304.67(48.22%)
Contingencies106.54(16.86%)
Physical: 34.99
Financial: 71.55
Project Design & Costs
Existing States35%
New States23%
Central Agencies42%
States58%
Project Design & Costs
38.9
6346.35
30.63 23.96 18.06
10.08
29.4
32.07
25.36
14.4211
16.32
40.24
42.31
36.94
25.8
19.9
Year-1 Year-2 Year-3 Year-4 Year-5 Year-6
Central New States Existing States
Central Agencies:Cost Break-up
BBMB10%
CGWB11%
CWC10%
CPCB7%
CWPRS15%
IMD12%
NIH18%
MoWR-CS17%
HP-I vs. HP-II
Goods31%
Consultancy19%
Recurrent Cost27%
HP-I, Recurrent Cost, 31%
HP-I, Civil Works, 25%
HP-I, Goods, 31%
HP-I, Consultancy, 11%
HP-I, Training , 2%
Civil Works15%
Training 8%
Financial Management Dedicated Financial Management for HP-II under IFD
Financial Management Manual prepared by IFD (CA)
to standardize policies, procedures, reporting formats
Central coordination with all implementing agencies
Central coordination for all audit matters
Web enabled financial management software
to be developed, in two states as pilot
Financial Monitoring
Why Financial Monitoring ? Scarcity of resources - The resources are limited and tend to
decrease with the consumption, so FM is required;
Agency role – It is of paramount importance to have a close
watch over the financial health of the project to keep it in right
track;
Value for money – The wastage of Funds accorded in the
Project ceases to be outflow in absence of FM, hence it is
required
Objectives
Efficient use of available resources
Compliance of applicable laws and regulations
Utilization of funds for the purpose for which it is provided
Establishment of Accountability and responsibility
To flag the probable time and cost escalation.
Enable decision making to ensure timely completion of project
Features
Budgeting process
Funds flow mechanism
Accounting policies
Maintenance of books of accounts
Documentation
Estimates Executive and Finance
Budgeting Finance and accounts
Execution Executive, Finance and Accounts
Review Executive Finance and Accounts
Role of Various Agencies
Thrust Area Execution on the ground
Directed towards output to be achieved
Using given resources
Optimization of output
Monitoring Agencies
Dedicated Finance Desk HISCS in the Union Ministry of Water Resources
Accounts Branch attached to State HIS Coordination Committee.
Basis : Information on monthly basis From all units and IAs in the formats prescribed
Project financial statements A summary of funds
received by the implementing agency showing the World Bank and counterpart funds
separately A summary of expenditures
shown under the main project components / sub-components / disbursement categories
both for the current fiscal year and accumulated to date; and
PFS : Attachments
Schedule listing individual withdrawal applications
by specific reference number, date, period & amount.
Reconciliation between expenditure incurred during the financial year
Reconciliation statement between the amounts claimed and expenditure incurred.
IT orientation
All the centre's of HP to be computerized & fully
connected by a network, All reports should be electronically transmitted
Enhance the current system of recording and reporting
expenditure
Software will be web-enabled and will link the
state finance unit with the Finance wing of MOWR
Internal Audit
Why Internal Audit ? Internal auditing is an objective, independent,
assurance activity Designed to –
add value improve an organization's operations.
It helps an organization accomplish its objectives by bringing a systematic, disciplined approach
Evaluate & improve effectiveness of risk management, control & governance processes.
Mandate Internal audit of HP-II is institutional responsibility
of CA – MoWR Three responsibility dimensions:
direct internal audit responsibility for MoWR agencies dealing with HP-II funds;
constructive responsibility for appropriateness of internal controls and internal audit of other central and inter-state agencies;
constructive responsibility for appropriateness of internal controls and internal audit of states.
Mandate Financial Audit
Audit of budgetary & financial systems with compliance tests
assessment of effectiveness of accounting reporting system
Performance Audit: ‘Value for money’ audit covers the extent to which objectives & programme
of the agency has been achieved It may also cover specific analysis of staff resources
Audit Points
How far the physical & financial targets have been
achieved
How far social & economic objectives have been realized
Whether the operations are conducted economically
Whether there are any case of losses, overpayment,
extravagance, overstaffing delays in completion of
projects, infructuous expenditure
Scope & Role
Protective Role
Compliance with laid down procedures
Asset Projection Information accuracy Assisting fraud detection
Constructive Role
Suggestions for improvement
Reduced costs Process change Increase in revenue
Management Letter Ineligible expenditures identified
Degree of the compliance with financial covenants of the
financing agreements
Matters with significant impact on the implementation of
the project
Any other matters that the auditors consider pertinent.
Methods for improving weak controls or for creating
them where there are none
Management Letter
An assessment of compliance with provisions of the
financing agreements (IBRD Loan Agreement; Project
Agreements)
particularly those relating to financial matters would be
prepared.
That funds have been used with due regard to economy,
efficiency and effectiveness and for the purposes they
were provided
Thank You