2. Financial Management 9 th JRM was held from 16-29 January 20099 th JRM was held from 16-29 January 2009 JRM visited 11 States and reviewed implementation of SSA programme.JRM visited 11 States and reviewed implementation of SSA programme. The Mission made serious observations on some critical issues relating to financial management and procurement. These are:The Mission made serious observations on some critical issues relating to financial management and procurement. These are:  weak accounting system,  non-maintenance of prescribed books of accounts, advance register, asset register,  non-reconciliation of bank accounts regularly, \  non-adherence of the procurement procedure etc. Joint Review Mission

3. Cont’d/-  Non-filling of vacant posts of accounts staff at SPO, DPO and sub-district level.  Inadequate capacity building of accounts staff.  Non-submission of Audit Reports for 2007-08 by majority of States.  Need to strengthen internal audit mechanism.  Treating of advances as expenditure.  Less coverage of e-transfer of funds from SPO to DPO and DPO to sub-district level. States should take immediate remedial measures on these observations.States should take immediate remedial measures on these observations.

4. 4 Audit Reports for 2007-08 Received only from 20 States/UTsReceived only from 20 States/UTs Not received from 15 States/UTs ofNot received from 15 States/UTs of AP, Arunachal Pradesh,Bihar, Chandigarh, Chhattisgarh (defective & returned), Delhi,, Haryana, HP, J&K,, Lakshadweep, M.P., Manipur, Nagaland, Orissa & Tamil Nadu. AP, Arunachal Pradesh,Bihar, Chandigarh, Chhattisgarh (defective & returned), Delhi,, Haryana, HP, J&K,, Lakshadweep, M.P., Manipur, Nagaland, Orissa & Tamil Nadu. Due for submission to Development Partners on 31 st Dec 08.Due for submission to Development Partners on 31 st Dec 08. Ensure immediate submission of the same.Ensure immediate submission of the same.

5. 5 Annual Reports Annual reports for 2007-08 are still awaited from all the States/UTs.Annual reports for 2007-08 are still awaited from all the States/UTs. Pending for the previous years in respect of many States like AP, Bihar, Chhattisgarh, Dadar & Nagar Haveli, Delhi, Gujarat, Haryana, J&K, Karnataka, Kerala, Lakshadweep, MP, Maharashtra, Manipur, Meghalaya, Orissa, Pondicherry, Rajasthan, Sikkim, Tamil Nadu, Tripura and Uttarakhand.Pending for the previous years in respect of many States like AP, Bihar, Chhattisgarh, Dadar & Nagar Haveli, Delhi, Gujarat, Haryana, J&K, Karnataka, Kerala, Lakshadweep, MP, Maharashtra, Manipur, Meghalaya, Orissa, Pondicherry, Rajasthan, Sikkim, Tamil Nadu, Tripura and Uttarakhand. Need to be tabled in the Parliament by 31 st December 2008Need to be tabled in the Parliament by 31 st December 2008 Lok Sabha Parliamentary Committee on papers laid on table has taken a very serious view on delays.Lok Sabha Parliamentary Committee on papers laid on table has taken a very serious view on delays. D.O. letter from Secretary to Chief Secretaries of all States issued on 7 th / 16 th January 2009.D.O. letter from Secretary to Chief Secretaries of all States issued on 7 th / 16 th January 2009.

6. Financial Management Concurrent Financial Review IPAI completed 1 st Phase of financial review of all the States / UTs.IPAI completed 1 st Phase of financial review of all the States / UTs. Follow up action is in progress in most of the States. The States should take immediate follow up action in this regard.Follow up action is in progress in most of the States. The States should take immediate follow up action in this regard. Second phase of IPAI financial review is in progress in 12 States.Second phase of IPAI financial review is in progress in 12 States.

7. Issues related to unspent balance of DPEP/SSA Pre-project activities Refund of unspent balance of DPEP is still awaited from :Refund of unspent balance of DPEP is still awaited from : –Bihar, Chhattisgarh, Jharkhand, HP, MP, Orissa, UP and West Bengal Refund of unspent balance of pre-project activities is still awaited from:Refund of unspent balance of pre-project activities is still awaited from: –Arunachal Pradesh, Assam, Bihar, J&K, MP, Manipur, Mizoram, Sikkim and West Bengal. Non-refund will adversely effect the further releases of funds from SSA.Non-refund will adversely effect the further releases of funds from SSA.

8. Procurement Plan –08-09 Confirmation of uploading of procurement Plan on the website is awaited from:Confirmation of uploading of procurement Plan on the website is awaited from: Andaman & Nicobar Islands, AP, Arunachal Pradesh,Bihar, Chhattisgarh, Dadra & Nagar Haveli, Daman & Diu, Delhi, Goa, Haryana, HP, J&K, Kerala, Lakshadweep, Manipur, Mizoram, Nagaland, Orissa, Pondicherry, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttarakhand & West Bengal. Andaman & Nicobar Islands, AP, Arunachal Pradesh,Bihar, Chhattisgarh, Dadra & Nagar Haveli, Daman & Diu, Delhi, Goa, Haryana, HP, J&K, Kerala, Lakshadweep, Manipur, Mizoram, Nagaland, Orissa, Pondicherry, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttarakhand & West Bengal.

9. Financial performance of the States/UTs Expenditure The total expenditure incurred during 2008-09 (up to Sep 08) is Rs. 6995.62 crore which is 30% of the approved outlay.The total expenditure incurred during 2008-09 (up to Sep 08) is Rs. 6995.62 crore which is 30% of the approved outlay. Many States have not incurred any expenditure under, LEP, Remedial Teaching, major repairs, textbooks, TLE, Inclusive education, BRC, CRC, teachers training, REMS, EGS/AIE, innovative activities and NPEGEL.Many States have not incurred any expenditure under, LEP, Remedial Teaching, major repairs, textbooks, TLE, Inclusive education, BRC, CRC, teachers training, REMS, EGS/AIE, innovative activities and NPEGEL. States to maximise expenditure during the remaining period of the current financial year.States to maximise expenditure during the remaining period of the current financial year. Backlog of State share in AP, Arunachal Pradesh, Assam, Chhattisgarh, Daman & Diu, Delhi, HP, J&K, Maharashtra, Mizoram, Nagaland, Pondicherry, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura and West Bengal.Backlog of State share in AP, Arunachal Pradesh, Assam, Chhattisgarh, Daman & Diu, Delhi, HP, J&K, Maharashtra, Mizoram, Nagaland, Pondicherry, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura and West Bengal.