Financial Management Practices in Hydrology Project - I An Overview Central Ground Water Board

HP-I Proposal of CGWB CGWB proposal was for the following categories : 1. Up-gradation of observation network, water quality laboratories, building for offices & training centers under the category of Works 2Purchase of Ground Water equipments, Computers, Lab. equipments in Equipment & Material category 3Vehicles category 4Trainings category 5Recurrent cost on Incremental Staff & other items

Fund Allotment Pattern in HP-I Allocation of the funds & expenditure was in two categories 1.Capital Head 2.Recurring Head

Reporting Procedures Most of the activities related to works, material & equipments were carried out by the Regional Directorates of the Board located in HP I States At Stage I Regional Directorates reported to CGWB, CHQ a format of Monthly Expenditure Report (MER) which were having different Heads of Works, Salary, TE, MV, Material & Equipment and PSS. At Stage IICGWB, CHQ was consolidating the expenditure and reporting in the standardized format of quarterly Progress Report (QPR) which were having the progress component of both physical & financial against the allocated targets in Hydrology Project At Stage IIICGWB,CHQ was having ‘HP Head’ under its normal budget and reported annually about expenditure under HP to MOWR.

Disbursement / reimbursement practice Step IReimbursement on the basis of Pre- Audit expenditure CGWB submitted its reimbursement cases to CAAA on the Statement of Expenditure (SOE) received from its different Regional Directorates indicating expenditure made in different categories so that it can be reimbursed as per reimbursement % decided by the World Bank for different Heads. Step IIReimbursement on the basis of balance / difference Claim of balance expenditure from CAAA on submission of Consolidated Audit Certificate from the Accountant General (Audit), Haryana at the end of financial year on the prescribed format (Form 1B & 1C) provide by World Bank.

Audit Step 1Audit of expenditure incurred by Regional Directorates of the Board were got conducted through respective A.G.(Audit) and certificates received were received at CHQ, Faridabad. Step 2 All the audit certificates received annually from different field formations were submitted to A.G.(Audit), Haryana to receive Consolidated Audit Certificate from Accountant General (Audit) Haryana. Step 3 Consolidated Audit Certificate was submitted annually to World Bank through CAAA and copy to Project Coordination Cell, MOWR for information.

Financial Monitoring CGWB carried both physical and financial monitoring of expenditure against set targets quarterly and annually through out the project period. MER received from field offices & Quarterly Progress Reporting practice to PCS,MOWR prove beneficial in giving flexibility in revising physical targets against set mile stones and assessing financial requirements in different phases of the project. Financial expenditure analysis was not carried in detail to know the trend of physical progress and financial expenditure during different phases of the project.

Point to Ponder It is observed that Uniform expenditure is not possible in Works, material & equipment categories, where payment is possible only after completion of works and supply of material. This aspect sometimes give impression that expenditure is made not equally through out the year. However, expenditure in categories like incremental, TE & training was equally distributed throughout the project period, except at initial stage when processing, designing and approval for different activities were required.