1. EdCIL, Technical Support Group (SSA), New Delhi Presentation on Financial Management Assessment Tool 30th Quarterly Review Meeting of Finance Controllers 4 th – 5 th August 2011 ( New Delhi) By : U.K. Verma,Consultant (Financial Management) Financial Management Assessment under SSA

2. EdCIL, Technical Support Group (SSA), New Delhi Financial Management Assessment under SSA MHRD intends to introduce a system of Financial Management Assessment Tool based on the belief that an efficient and effective financial management system depends on clear, well-understood policies and procedures that well-trained staff follow to accurately record and report all financial transactions and make sound, timely decisions to manage Financial Resources under SSA We hope, Financial Management Assessment Tool to help Finance Controllers to assess the current capacity of their State, District and Sub-district level offices to manage their finances and identify steps that they can take to improve that capacity

3. EdCIL, Technical Support Group (SSA), New Delhi Financial Management Assessment under SSA Why it is needed? Financial Management System needs to be improved in view to huge volume of Financial outlays; Audit Report of SISs indicates needs of scrutinizing chronic deficiencies of Financial Management System under SSA; Identifying weak areas and preparation of need based remedial inputs to be injected; Preparing effective FM Action Plan at all levels of implementation

4. EdCIL, Technical Support Group (SSA), New Delhi Financial Management Assessment under SSA How to be beneficial? Assess the current status of your capacity to manage financial resources; Identify changes that you can make to manage your finances more effectively Make a specific action plan to implement these changes Monitor for resulting improvements; Include need based areas to impart intensive training to the finance people at district and sub-district level;

5. EdCIL, Technical Support Group (SSA), New Delhi Financial Management Assessment under SSA Areas identified under SSA Financial Management: Accounting System; Maintenance of Books of Accounts; Managing Bank Accounts and available funds Bank Reconciliation Statement Internal Audit System Completion of Audit and rendering audit reports and audited accounts Adjustment of outstanding Advances Staff Strength and Capacity Building Exercises Submission of Annual Report

6. EdCIL, Technical Support Group (SSA), New Delhi Financial Management Assessment under SSA Status Data Collection Format : MHRD to provide a Data Collection Format to all SISs; SISs, after a thorough assessment of status in its State, District and Sub-district level offices under respective fields, will furnish the data within a month; MHRD, after scrutiny of state’s data and to consolidate for its inclusion in National FM Action Plan; Intensive Monitoring of readdresses and progresses. Now let us see the Data Collection Format and simultaneously explore strategies on availability of Data :

7. EdCIL, Technical Support Group (SSA), New Delhi Financial Management Assessment under SSA 1.1No. of District Units (DPOs) 1.2 No. of Block / Urban Resource Centres (BRCs / URCs) 1.3 No. of Cluster Res. Centres (CRCs) 1.4No. of Schools / SMCs: Primary Upper Primary Schools SMCs 1.5 No. of Kasturba Gandhi Balika Vidyalaya (KGBVs) SanctionedOpenedYet to Open 1. General Profile :

8. EdCIL, Technical Support Group (SSA), New Delhi Financial Management Assessment under SSA 2.1Double Entry System on Accrual Basis ( No. of Units Covered) SPODPOsBRCs 2.2Computerized System of Accounting ( No. of Units Covered) SPODPOsBRCs 2.3If Computerized, Name with version of the Accounting Software adopted. Is the same customized as per requirements of SSA or not? 2.4No. of Licensed Copies of Accounting Software already procured for use at various level SPODPOsBRCs 2.5No. of Licensed copies proposed to be procured for various level during the current year SPODPOsBRCs 2. Accounting System

9. EdCIL, Technical Support Group (SSA), New Delhi Financial Management Assessment under SSA 3.1Indicate the No. of Units where Cash Book, Ledger, Journal, Cheque Issue Register, Advance Register, Bill Register, Stock Register, Fixed Assets Register are maintained and updated SPODPOsBRCs 3.2Indicate the No. of Units where all the above books of accounts are not maintained SPODPOsBRCs 3.3If not maintained, indicate the time line for its maintenance SPODPOsBRCs 3. Books of Accounts :

10. EdCIL, Technical Support Group (SSA), New Delhi Financial Management Assessment under SSA 4.1No. of Units having only one Saving Bank Account each for SSA, NPEGEL & KGBV UNITsSSANPEGELKGBV SPO DPOs BRCs 4.2No. of Units having more than one Saving Bank Accounts under SSA, NPEGEL, KGBV UNITsSSANPEGELKGBV SPO DPOs BRCs 4.3Indicate the time line to close the multiple bank accounts UNITsSSANPEGELKGBV SPO DPOs BRCs 4.4 No. of Units where Current Bank Accounts are still operative UNITsSSANPEGELKGBV SPO DPOs BRCs 4.5 If so, indicate the time line to close the current bank accounts UNITsSSANPEGELKGBV SPO DPOs BRCs 4. Bank Accounts :

11. EdCIL, Technical Support Group (SSA), New Delhi Financial Management Assessment under SSA 4. Bank Accounts : 4.6 No. of Units having SSA fund under any Short Term / Fixed Deposit UNITsSSANPEGELKGBV SPO DPOs BRCs 4.7If so, indicate the time line to close the Term/ Fixed Deposit UNITsSSANPEGELKGBV SPO DPOs BRCs 4.8No. of Units having SSA fund under single signatory Bank A/c UNITsSSANPEGELKGBV SPO DPOs BRCs 4.9Indicate the time line to convert the Single Signature to Joint Signature Bank Accounts UNITsSSANPEGELKGBV SPO DPOs BRCs 4.10No. of Units where action has been taken / being taken to close Non-operational Saving Bank Account(s) if any UNITsSSANPEGELKGBV SPO DPOs BRCs

12. EdCIL, Technical Support Group (SSA), New Delhi Financial Management Assessment under SSA 5. Bank Reconciliation Statement : 5.1No. of Units carrying out Bank Reconciliation on monthly basis in respect of all Bank Accounts UNITsSSANPEGEL SPO DPOs BRCs 5.2No. of Units where Bank Reconciliation is not being carried out on monthly basis in respect of all Bank Accounts UNITsSSANPEGEL SPO DPOs BRCs 5.3Indicate the no. of units where Bank Reconciliation Statement is not prepared on monthly basis UNITsSSANPEGEL SPO DPOs BRCs 5.4If so, indicate the time line to prepare all outstanding Bank Reconciliation Statement UNITsSSANPEGEL SPO DPOs BRCs

13. EdCIL, Technical Support Group (SSA), New Delhi Financial Management Assessment under SSA 5. Bank Reconciliation Statement : 5.5Indicate the No. of Stale cheques available in each unit UNITsSSANPEGELKGBV SPO DPOs BRCs 5.6Indicate the time line to cancel these stale cheques UNITsSSANPEGELKGBV SPO DPOs BRCs 5.7Have you imparted any training on the preparation of Bank Reconciliation Statement at each unit? UNITsSSANPEGELKGBV SPO DPOs BRCs 5.8Indicate the time line to impart training at each unit UNITsSSANPEGELKGBV SPO DPOs BRCs

14. EdCIL, Technical Support Group (SSA), New Delhi Financial Management Assessment under SSA 6. Internal Audit : 6.1Is Internal Audit System in place? If yes, through which agencies internal audit is conducted (CA / State Govt. Dept./ In-house Internal Audit Cell) 6.2No. of Units covered under Internal Audit for the financial year 2010-11 SPODPOsBRCs CRCs/ SMCs 6.3Has the SIS engaged agencies for Internal Audit for 2011-12? If yes, No. of agencies engaged. SPODPOsBRCs CRCs/ SMCs 6.4No. of units where Internal Audit is carried out on Concurrent basis (Quarterly / half yearly ) SPODPOsBRCs CRCs/ SMCs 6.5Do you think the existing system of Internal audit is satisfactory and effective in commensurate with the size of financial transactions in your state. If not, what steps the SIS has planned to make it more effective.

15. EdCIL, Technical Support Group (SSA), New Delhi Financial Management Assessment under SSA 7. External Audit : 7.1Has Statutory Auditor(s) for the year 2010-11 been appointed; if not, when the processes of such appointment are expected to be completed. DPOs BRCs 7.2Has proposals for Appointment of Statutory Auditors for 2010-11 placed before the State Executive Committee for approval? 7.3Are the Audit objections included in the Statutory Auditor’s Report / Accountant General Audit Reports being entered in the register to be maintained in the Format given in Annex XXIV of the FMP Manual? 7.4Is Compliance with the objections being reported to the Auditors and verified by them at the time of subsequent years audit? 7.5Is the progress made on the settlement of audit objections as well as outstanding audit objection for settlement being reviewed by the SPD on a regular basis? 7.6Is the compliance of audit objections being reported by SIS to MHRD, GOI regularly on quarterly basis in the format given in Annex XXV of the FMP Manual 7.7No. of SMCs receiving more than Rs. 1 lakh per year covered under CA Audit up to 31 st March 2011 2008-092009-102010-11 SMCs eligible for Audit Nos. of SMCs covered under Audit

16. EdCIL, Technical Support Group (SSA), New Delhi Financial Management Assessment under SSA 8. Outstanding Advances : 8.1 Total amount of outstanding advances as per the Audited Accounts as on 31 st March 2010 (Rupees in lakh) Staff Govt. agencies Non-govt. agencies BRCs/ CRCs/ SMCs Civil Works Teacher s Salary Total SSA 8.2 Total Outstanding Advances (Un- Audited figures) as on 31 st March 2011 – (Rupees in lakh) Staff Govt. agencies Non-govt. agencies BRCs/ CRCs/ SMCs Civil Works Teacher s Salary Total 8.3 Has SIS prepared action plan to make adjustments of all outstanding advances 8.4 If not, indicate the time line to adjust the outstanding advances

17. EdCIL, Technical Support Group (SSA), New Delhi Financial Management Assessment under SSA 9. Staff Strength & Capacity Building : 9.1 Staff strength in Finance & Accounts unit at various level; SPODPOBRCs Total sanctioned strength in Finance /Accounts No. of Finance & Accounts Staff in position 9.2 Has SIS prepared any action plan for recruitment of Finance & Accounts staff against the vacant positions 9.3If not, by when such recruitments are expected to take place 9.4Has SIS imparted Accounts Training to all Finance & Accounts Staff during the Financial Year 2010-11? If yes, furnish the various subjects on which training was imparted. 9.5No. of Man-Days Training imparted to Accounts Staff during 2010-11 SPODPOBRCs Man- Days Accounts Training imparted Nos. of Finance & Accounts Staff to whom training given

18. EdCIL, Technical Support Group (SSA), New Delhi Financial Management Assessment under SSA 10. Annual Report : 10.1State the financial year up to which Annual Report was submitted to MHRD 10.2State the status of pending Annual Report indicating the expected date of its submission to MHRD Years for which Annual Report is pending Expected date of Submission to MHRD Remarks, if any on actual status of preparation 2005-06 2006-07 2007-08 2008-09 2009-10 Signature Finance ControllerState Project Director

19. EdCIL, Technical Support Group (SSA), New Delhi Financial Management Assessment under SSA Now Its our RIGHT ! Put the Resources at correct places ….. Thank You ….