Financial Monitoring under SSA

Strengthening of Financial monitoring Funds has increased manifold Funds has increased manifold To increase largely with RTE and revised norms. To increase largely with RTE and revised norms. Levels of monitoring required to be strengthened Levels of monitoring required to be strengthened National level National level State level State level District level District level BRC/CRC level BRC/CRC level VEC level – Social Audit VEC level – Social Audit

National level Monitoring Quarterly Review Meetings Quarterly Review Meetings Web portal Web portal Video Conferences Video Conferences CPSMS CPSMS JRMs JRMs Field visit by Consultants / MHRD Officials Field visit by Consultants / MHRD Officials Preparation of FM Action Plan Preparation of FM Action Plan To ensure regular and correct flow of Information To enhance confidence in the system

SWOT Analysis to strengthen Financial Monitoring Strengths…. Funds are decentralised Funds are decentralised Flexibility (Registered Society) Flexibility (Registered Society) Alteast 9 years of experience Alteast 9 years of experience State and GoI fundings State and GoI fundings External funding External funding DPEP experience DPEP experience Senior positions in finance held by Senior Staff of State Finance and Accounts Department Senior positions in finance held by Senior Staff of State Finance and Accounts Department External audit and review integral part of programme External audit and review integral part of programme Social Audit part of SSA framework Social Audit part of SSA framework

Weakness… Limited financial knowledge at different level Limited financial knowledge at different level Limitation of providing accounts staff at VEC level Limitation of providing accounts staff at VEC level Limited knowledge of software / technology Limited knowledge of software / technology Limited knowledge of procurement process Limited knowledge of procurement process Delays in appointments Delays in appointments Weak internal Audit Weak internal Audit Weak / limited social participation and monitoring Weak / limited social participation and monitoring SWOT Contd..

Opportunities… Enhanced funding---Increased management outlays Enhanced funding---Increased management outlays New norms for block accountants New norms for block accountants CPSMS to be implemented by Planning Commission CPSMS to be implemented by Planning Commission JRM observations / world wide experience JRM observations / world wide experience Technology like VC/Web Portal, e-transfers etc Technology like VC/Web Portal, e-transfers etc Experience of other educational programmes like DPEP, Lok Jhumbish etc. Experience of other educational programmes like DPEP, Lok Jhumbish etc. Revised sharing pattern in favour of States Revised sharing pattern in favour of States SWOT Contd..

Threats… 70% of SSA funds spent by sub district units with limited accounting knowledge 70% of SSA funds spent by sub district units with limited accounting knowledge Frequent transfers Frequent transfers Vested interest of politicized VEC leaders / political interference Vested interest of politicized VEC leaders / political interference Limited availability of technology Limited availability of technology Limited availability of skilled/ professional staff Limited availability of skilled/ professional staff Lack of coordination between different govt. dept specially education Lack of coordination between different govt. dept specially education

Example of Good Monitoring Strategies Madhya Pradesh Madhya Pradesh APC finance responsible for timely submission of MMR. APC finance responsible for timely submission of MMR. DPC, APC provided training and to review progress on AWP&B fortnightly DPC, APC provided training and to review progress on AWP&B fortnightly Recuritment of competent account staff Recuritment of competent account staff Minimum days of field visit to be undertaken by each level of officers. Minimum days of field visit to be undertaken by each level of officers. Meghalaya Meghalaya DMC / Jt. DMC to publish in local daily about funds released to SMC/VEC. DMC / Jt. DMC to publish in local daily about funds released to SMC/VEC. West Bengal West Bengal Coordination between State functional coordinators to ensure achievement as per monthly expenditure plan. Coordination between State functional coordinators to ensure achievement as per monthly expenditure plan.

Suggested steps ahead … Format for display board Format for display board Web portal to be made operational by September 2010 Web portal to be made operational by September 2010 Dissemination of FM Action Plan and monthly Expenditure Plan to districts Dissemination of FM Action Plan and monthly Expenditure Plan to districts Encouraging districts for self monitoring against the plans. Encouraging districts for self monitoring against the plans. Rigorous follow up on monthly expenditure plan at each level. Rigorous follow up on monthly expenditure plan at each level. Field visits / Review Missions Field visits / Review Missions Audit observations to help in finding key features for monitoring Audit observations to help in finding key features for monitoring

Jharkhand Action proposed… progress… progress… and remedies… and remedies…