1. 22 nd Review Meeting of Finance Controllers of SIS on 3 rd – 4 th February 2010, New Delhi Annexure-C

2. FINANCIAL PROGRESS

3. Expenditure as on 31 st Dec. 2009 Exp. (Rs. in Lakhs) % Fund available % to AWP&B SSA562957.7074%61% NPEGEL19146.7338%46% KGBV26519.6932%28% Total1608624.1272%59% Performance against AWP&B Achieve ment level States >50%Chandigarh, Goa, Haryana, H.P, Karnataka, Kerala, M.P, Maharashtra, Orissa, Punjab, Rajasthan, Sikkim, TN, UP, Uttarakhand 40 50Assam, Gujarat, Jharkhanad, Mizoram, WB <20%Daman & Diu, Lakshadweep, Manipur Achievement level States >80%AP, Delhi, Manipur, Mizoram, Rajasthan, Sikkim 60% 80%A&N, Chandigarh, Goa, Haryana, H.P., J&K, Jharkhand, Karnataka, M.P., Maharashtra, Punjab, TN, UP, Uttarakhand, WB <60%Ar. Pr., Assam, Bihar, D&NH, Gujarat, Kerala, Meghalaya, Nagaland, Orissa <35%Daman & Diu, Lakshadweep Performance against fund available

4. Component wise Achievement Trend (30 th Sept’ 09) Activities with expenditure more than 60% of outlay –Maintenance Grant –School Grant –Teacher Grant  States with exp on Grants (MG, SG, TG) < 75% : (10 States ) A.P.(0%), Ar.Pr.(40%), Bihar(42%), Chht.(64%), D&NH(0%), Delhi(46%), J&K(0%), Miz(0%), Raj(39%), WB(9%)

5. Component wise Achievement Trend Contd… Activities with expenditure less than 60% but more than 25% of outlay BRC/ CRC Teachers Salary Management Cost Free Text Books NPEGEL  States with BRC/CRC exp < 40%: (19 States) A.P(1%), Ar.Pr.(0%), Assam(9%), Bihar(11%),Chd(20%), Chht(20%), D&NH(0%), D&D(17%), Delhi(29%), Goa(23%), Haryana(1%), J&K(0%), Jharkhand(31%), Maha(33%),Orissa(9%), Pudu(14%), TN(36%), UP(40%), WB(26%) States with NPEGEL exp < 40%: (13 States/UTs) A.P(0%), Ar.Prd(0%), Bihar(3%), Chht(4%), Guj(13%), Har(0%), Jhar(11%), Maha(19%), Orissa(27%), Raj(2%), TN(35%), UP(37%), WB(1%)

6. Component wise Achievement Trend Contd… Activities with exp 10% of outlay States with exp on Teacher training < 60%:24 A.P(12%), Assam (21%), Bihar(4%), Chht(23%), D&NH(0%), D&D(17%), Goa(10%), Guj(32%), Haryana(0%), Jhar(4%), Kar(26%), Lak(21%), MP(25%), Mah(34%), Meg(16%), Orissa(7%), Pudu(29%), Pun(41%), Sik(38%), TN(45%), Tri(0%), UK(12%), WB(1%) States with civil works Exp<50%:35 All States States with KGBV exp<35%:18 A.P.(2%), Assam(20%), Bihar(15%), Chht(15%), D&NH(2%), Delhi(0%), Guj(12%), Har(1%), HP(14%), Jhar(23%), Kar(14%), MP(5%), Mah(11%), Meg(17%), Raj(19%), UP(19%), uk(17%), WB(6%) Remedial Teaching, Teachers Training IE Civil Works Interventions for OoSC REMS KGBV

7. Component wise Achievement Trend Contd.. Activities with expenditure less than 10% outlay Community Training Innovative Activities LEP TLE  States with exp on Comm trng < 75%: 32 All States/UTs except Delhi, Lakshadweep and Nagaland  States with TLE exp < 75%: 33 All States and UTs except Mizoram and Puducheery  States with exp on Innovative Activities < 40%: 32 All States and UTs except Aru. Pr., Mizoram and Sikkim

8. Short release of funds specially UT share is hampering the fund flow and hence adversely effecting the overall achievement Key low performing activities Civil WorksInnovative activities REMSActivities for OoSC State-wise Expenditure Issues Andaman & Nicobar

9. Shortfall in State share releases All component’s expenditure is low except management cost Andhra Pradesh Statewise Expenditure Issues contd…

10. Fund utilisation is low in every quarter Low performing activities Teacher Training - 40%BRC/CRC-0% MG/SG-48%REMS-% FTB-100%OoSC-0% CW-12%NPEGEL-0% Statewise Expenditure Issues contd… Arunachal Pradesh

11. Fund utilisation is around 56% in every quarter Key low performing activities BRC/CRC-10%Innovative Activities-15% CW-24%KGBV-20% Statewise Expenditure Issues contd… Assam

12. Fund utilisation is low in every quarter Key low performing activities Teacher Sal28%TG-42%BRC/CRC-10% TT-4%Grants-40%Innovative-3% REMS-2%OoSC-17%CW-12% NPEGEL-3%KGBV-15% Statewise Expenditure Issues contd… Bihar

13. Key components affecting the performance: CRC-20% Civil Works-0% Statewise Expenditure Issues contd… Chandigarh

14. Key components performing low in the State: Grants-60%Innovative-1%TT-23% OoSC-1%CW-0%NPEGEL-4% KGBV-15% Statewise Expenditure Issues contd… Chhatisgarh

15. Fund utilisation is low in every quarter All components except teacher salary and OoSC activities are low performing Statewise Expenditure Issues contd… Dadra & Nagar Havelli

16. Key low performing activities: TT OoSC Innovative Activities Statewise Expenditure Issues contd… Daman & Diu

17. Fund utilisation system is weak in UT Key low performing activities: TS-7%Grants-40%CRC-8% Innovative-12%OoSC-12%CW-0% KGBV-0% Statewise Expenditure Issues contd… Delhi

18. Key low performing activities TT-10%CW-7% Statewise Expenditure Issues contd… Goa

19. Funds utilisation has been around 50% in every quarter Key low performing activities: TT-32%Innovative-8%OoSC-5% NPEGEL-13%KGBV-12% Statewise Expenditure Issues contd… Gujarat

20. Fund utilisation has been low in every quarter except in 3 rd quarter Key low performing activities TS-0%BRC/CRC-2%TT-0% Innovative-0%OoSC-0%NPEGEL-0% KGBV-1% Statewise Expenditure Issues contd… Haryana

21. Key low performing activities Innovative-9%OoSC-11%CW-5%KGBV-14% Statewise Expenditure Issues contd… Himachal Pradesh

22. Statewise Expenditure Issues contd… Jammu & Kashmir

23. Key low performing activities TT-4%Innovative-1%OoSC-2% CW-17%NPEGEL-11% Statewise Expenditure Issues contd… Jharkhand

24. Key low performing activities TT-26%Innovative-14% CW-0%KGBV-14% Statewise Expenditure Issues contd… Karnataka

25. Key low performing activities Innovative-13% CW-19% Statewise Expenditure Issues contd… Kerala

26. Low utilisation of funds in every quarter Key low performing activities TT-21% Innovative-1% CW-0% Statewise Expenditure Issues contd… Lakshadweep

27. Key low performing activities Innovative-9% OoSC-10% CW-29% KGBV-5% Statewise Expenditure Issues contd… Madhya Pradesh

28. Delay in release of state share Key low performing activities Innovative-1%OoSC-5%CW-27% NPEGEL-19%KGBV-11% Statewise Expenditure Issues contd… Maharashtra

29. Statewise Expenditure Issues contd… Manipur

30. Under utilisation of funds Key low performing activities TT-16%Innovative-2%OoSC-10% CW-15%KGBV-17% Statewise Expenditure Issues contd… Meghalaya

31. Key low performing activities TG-0% MG-0% SG-2% Statewise Expenditure Issues contd… Mizoram

32. Under utilisation of funds Key low performing activities: TS-0%Innovative-4% OoSC-0%CW-0% Statewise Expenditure Issues contd… Nagaland

33. Under utilisation of funds Key low performing activities: BRC/CRC-9%TT-7% Innovative-7%OoSC-10% CW-13% Statewise Expenditure Issues contd… Orissa

34. Statewise Expenditure Issues contd… Puducherry

35. Low expenditure on Innovative-14% Statewise Expenditure Issues contd… Punjab

36. Delay in release of funds Key low performing activities: TG,MG, SGInnovativeOoSC NPEGEL-2%KGBV-19% Statewise Expenditure Issues contd… Rajasthan

37. Key low performing activities: TT-0% OoSC-12% CW-26% Statewise Expenditure Issues contd… Sikkim

38. Key low performing activities: Innovative-7% OoSC-27% Statewise Expenditure Issues contd… Tamil Nadu

39. Key low performing activities: TT-0% Innovative-10% Statewise Expenditure Issues contd… Tripura

40. Key low performing activities: Teacher Salary-27%TT-12%Grants-65% Innovative-5%KGBV-19% Statewise Expenditure Issues contd… Uttar Pradesh

41. Under utilisation of funds Key low performing activities: Innovative-19%OoSC-18% CW-3%KGBV-17% Statewise Expenditure Issues contd… Uttarakhand

42. Delay in release of funds Key low performing activities: TS-16%Grants-20%TT-1% Innovative-4%CW-0%NPEGLE-1% KGBV-6% Statewise Expenditure Issues contd… West Bengal

43. Status of State Share StateShort fall (Rs. in Lakhs) A & N196.47 A.P.20591.60 Assam2805.77 Haryana5636.56 H.P.3549.01 J & K17955.93 Karnataka2552.15 Kerala263.09 M.P.3749.20 Maharasthra20434.98 StateShort fall (Rs. in Lakhs) Mizoram192.71 Nagaland226.66 Orissa650.51 Punjab9989.88 Rajasthan24993.97 TN216.64 UP40764.68 Uttarakhand4381.44 WB28622.05 Rs. 9795 cr. Released by GoI till 31st December 2009 Backlog of State share till 31st December 2009 in 19 States/UTs

44. Refund of unspent balances  Pre-project activities of SSA. Refunds due from: Assam, Bihar, Jammu & Kashmir, Manipur, Meghalaya and West Bengal  DPEP. Refunds due from: Assam, A.P, C.G, Gujarat, HP, M.P, Orissa, Kerala, Rajasthan, UP, T.N and W.B.

45. Statutory Audit Audit Report for 2008-09 received from 27 States/UTs Not received from 8 States of Arunachal Pradesh, Haryana, Himachal Pradesh, Jammu & Kashmir, Lakshadweep, Mizoram, Manipur & Sikkim.

46. Compliance awaited: 2005-06 :11 States (AruPr, AP, Bihar, Chhattisgarh, Haryana, HP, Jhk, J&K, Manipur, Mizoram & Nagaland) 2006-07:19 States (Aru.Pr,A.P, Bihar, Chhattisgarh, Chandigarh, Haryana, Jhkd, J&K, Karnataka, Kerala, MP, Manipur, Megh, Mizoram, Nagaland, Puducherry, Sikkim, Tamil Nadu & Tripura) 2007-08: 25 States (Assam, Aru.Pr, Bihar, Chandigarh, Chhtgh, Goa, J&K, Jkd, HP, Haryana, Karnataka, Kerala, Lkshdp, MP, Maha, Megh, Naga, Punjab, Pudu, Raj, Sikkim, TN, Tripura, U.P & UKD) 2008-09: Deficiencies/discrepancies and certain audit observations taken up with the States, who have submitted the audit reports. Statutory Audit contd…

47. Started in 31 States /UTs Not started in Chhattisgarh, Daman & Diu, Lakshadweep & Nagaland Still needs strengthening in most of the States/UTs –Insufficient coverage –Timeliness of audit –Not used as mid-course correction tool Issued instructions on 17 th September 2007, 1 st October 2007, 18 th June 2008 and 27 th May 2009 Internal Audit

48. 1 st phase - all States/UTs completed by 31 st March 2008. 2 nd phase – reports received for 23 States and shared with States Remaining 12 States in progress. Diversion of funds reported –Ist Phase - Rs. 79.93 crore yet to be recouped. –IInd Phase - Rs. 273.96 crore yet to be confirmed by States. Other Financial Irregularities reported –Ist Phase - Rs. 53.57 crore yet to be recouped. –IInd Phase - Rs. 107.64 crore yet to be confirmed by States. Concurrent Financial review - IPAI

49. Insufficient accounts staff resulting in financial management deficiencies. Accountant at Block level is desirable Vacant posts at SPO in 26 States. Aru. Pr (1), Assam (3), Bihar (3), Chhattisgarh (2), Dadra & Nagar (1), Daman & Diu (1), Delhi (1), Goa (1), Gujarat (1), Haryana (12), HP (2), J&K (2), Jharkhand (5), Karnataka (1), Kerala (1), Lakshadweep (1), Maharashtra (1), Mizoram (1), Nagaland (1), Puducherry (1), Punjab (2), Rajasthan (5), Tripura (5), UP (8), Uttarakhand (2) and WB (3). Vacant posts at DPOs in 26 States. Assam (13), Bihar (34), Chhattisgarh (6), Daman & Diu (2), Delhi (36), Goa (1), Gujarat (12), Haryana (14), HP (8), J&K (22), Jharkhand (11), Karnataka (5), MP (17+82 Block level)), Maharashtra (33+130 Block level), Manipur (9), Meghalaya (1), Nagaland (3), Orissa (13), Punjab (2), Rajasthan (21+121 Block level), Sikkim (2), TN (4), Tripura (19), UP(75), Uttarakhand (13) and WB (22). Staffing of Accounts Personnel

50. 5 days mandatory training in a year at all level. 11 lagging States/UTs : Dadra & Nagar, Daman & Diu, Delhi, Haryana, Lakshadweep, Maharashtra, Manipur, Puducherry, Sikkim, UP and West Bengal. VEC level capacity building process needs to be strengthened Capacity building of accounts staff

51. E- transfer for speedy funds flow Status –Adopted in all States upto district level except 5 States of A&N Island, Dadra & Nagar, Manipur, Nagaland and Sikkim. –Adopted upto sub-district level in 24 States. –Needs to be adopted at all the levels possible ( JRM recommendation)

52. Canara Bank Software – Adopted in 18 States of AP, Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Delhi, Haryana, Jharkhand, Karnataka, Kerala, M.P., Maharashtra, Manipur, Puducherry, Punjab, Rajasthan, Tamil Nadu and Uttrakhand –Issue is limited use for monitoring. Web Portal by NIC –Not update regularly –Incorrect data feed –No format for overall expenditure reporting Central Plan scheme monitoring system by CGA. –Pilot basis in 4 States of Punjab, Mizoram, Tamil Nadu and MP. Web based Monitoring

53. Developments Manual on FM&P revised –Block level accountant –Audit schedule revised –One bank account at all levels except VEC –For procurement under SSA, procedure to be followed as per manual Recommendation of 11 th JRM –Shortage of account staff –Unauditted teacher salary booked under SSA –Audit Statements to be based on UC Norms revised

54. Thank You