Transcript Document

FINANCIAL MANAGEMENT
Steps towards
Responsive Accounting under SSA
Presentation
for
31st Quarterly Review Meeting of Finance Controllers
By : U.K. Verma, Consultant(FM)
Technical Support Group, EdCIL, New Delhi
RESPONSIVE ACCOUNTING UNDER SSA
Government Accounting Vs Accounting under SSA
GOVERNMENT ACCOUNTING RULES, 1990
Rule – 19
The accounts of Government are
based, in the main, on the Single
Entry System
Rule – 22
With the exception of such book
adjustments as may be authorized by
these rules or by any general or
special orders issued by the Central
Government on the advice of the
Comptroller and Auditor General of
India, the transactions in Government
accounts shall represent the actual
cash receipts and disbursements
during
a
financial
year
as
distinguished from amounts due to or
by Government during the same
period.
FINANCIAL MANAGEMENT
&
PROCCUREMENT MANUAL - SSA
Para - 51
Complete accounts in respect of
the monetary transactions of the
State Implementation Society in
the Headquarters Office as well
as in the Subordinate Offices
shall be maintained in the same
manner as required in a State
Government Office. However,
the “Double Entry Method
based on Mercantile System”
of accounting shall be followed
under SSA.
Technical Support Group, EdCIL, New Delhi
RESPONSIVE ACCOUNTING UNDER SSA
 Uniform Accounting System not followed in all states. Some
states still follow Cash basis of Accounting instead of Accrual basis
as prescribed in FMP Manual;
 Closing balance of unspent grant from last year not brought
forward in the Income & Expenditure Account by some states
whereas being taken in other cases;
 Statutory Provisions under the Income Tax Act, 1961, EPF (MP)
Act,1952, VAT etc. are not properly complied with.
 Exp. in respect of previous year and even year before previous
year have been taken in the Income & Exp. A/c
 Separate set of books of accounts in respect of SSA, NPEGEL &
KGBV are not maintained.
 Realization against sale of old fixed assets are fully credited to
the Income & Expenditure A/c without giving effect to the Fixed
Assets Schedules
Technical Support Group, EdCIL, New Delhi
RESPONSIVE ACCOUNTING UNDER SSA
 No Schedule /details of Cash & Bank Balance, Outstanding
advances / liabilities forming part of Balance Sheet or Activity wise
expenditure under any component has been annexed with annual
accounts
 The Balance Sheet shows no fixed assets as on the date by some
of the SIS ;
 Receipt of unspent balance from sub-district level / SMCs / VECs
or amount not related with SSA funds have been credited in the
Income & Expenditure Account under Miscellaneous / Other
Receipts
 Figures shown in the Utilization Certificate / Consolidated Annual
Financial Statements / FMRs , Receipt & Payment Account are not in
agreement with each other.
 Expenditure for the year under different head(s) exceeds the
budgetary provisions of the year;
 Operation of multiple Bank Accounts under SSA / NPEGEL & KGBV
Technical Support Group, EdCIL, New Delhi
RESPONSIVE ACCOUNTING UNDER SSA
 Books of Accounts are kept opened even after 9-12 months after
close of the financial year which should be closed on or before 30th
June every year after
making necessary adjustments
and
incorporating the same in the books.
 Bank Reconciliation Statement not prepared properly and unpresented Cheques appearing in the Bank reconciliation statements
not considered to be properly treated either for transferring in state
cheques or expenditures to be written back in the books of
accounts. Interest / Bank Charges appearing in the BRS not
accounted for
 Outstanding Advances not reconciled, confirmed
progresses in adjustments ;
and poor
 Procedural lapses in procurement procedures like Non publication
of tenders in required manner, Non – evaluation of responsiveness
of the technical and financial bids, awarding the works without prior
approval of the Purchase Committee and settlements of claim
without quality certifications;
Technical Support Group, EdCIL, New Delhi
RESPONSIVE ACCOUNTING UNDER SSA
 Accounting Principles : Most of the SIS’s Audit Reports
reveals
non-adherence
of
Accounting principles
and
inconsistencies & un-uniformity in Accounting System at
State, district and sub-district level ;
 Maintenance of Books of Accounts : Non-Maintenance or
improper maintenance of books of accounts;
 Bank Accounts & Bank Reconciliation : Operation of
multiple bank accounts , non-preparation of Bank
Reconciliation Statements ; unidentified debits and/or credits
appearing in BRS, non-incorporation of due adjustment
entries;
 Outstanding Advances : Non-availability of age wise / name
wise details of outstanding advances; Charging advances as
expenditure in accounts, unconfirmed outstanding balances
and long pendency of adjustment of advances;
 Statutory Provisions : Non-deduction of TDS, non-deposit of
TDS deducted in time, non-issuance of TDS Certificates and
non-filing of Returns and incorrect accounting of TDS
Technical Support Group, EdCIL, New Delhi
RESPONSIVE ACCOUNTING UNDER SSA
 Creation of Liabilities & Timely settlement : creation of unconfirmed and un-ascertained liabilities in accounts;
 Procurement
procurements;
procedures
:
Procedural
lapses
in
the
 Internal Control Mechanism & internal Audit : In-adequate
and lack of effective internal control mechanism; internal
audit system not in commensurate with size of funds , nonexistence of concurrent internal audit system, noncompliance of internal audit reports in timely manner before
finalization of annual accounts;
Technical Support Group, EdCIL, New Delhi
RESPONSIVE ACCOUNTING UNDER SSA
Remedial Strategies
FM Assessment
Tools
Format designed
for reporting of
actual status of
Accounts
to
MHRD on key
issues. Status to
be scrutinized for
issue
&
need
based
remedial
supportive action
by MHRD / TSG
SISs yet to submit
the Status Report
Special Drive for
Advance Adjustment
Central Team of MHRD
Officials
&
TSG
consultants constituted
to visit SISs having bulk
outstanding advances to
review and sensitize
Civil Work and Accounts
functionaries of state /
district level offices
Team Visited Bihar &
Jharkhand – Reported adj.–
Jharkhand 550 Cr. & Bihar –
2400 Cr. (approx)
Intensive Training &
Capacity Building
Intensive
2-days
Accounts Training by
MHRD Official & TSG
Consultants to State and
District Level Accounts
Personnel on key issues
with a view to develop
some Mater Trainer for
imparting
further
training at district / subdistrict level
Two Regional Trainings at
Maharastra (110 Persons )&
Kerala (73 persons)
Technical Support Group, EdCIL, New Delhi
RESPONSIVE ACCOUNTING UNDER SSA
FM Status Assessment Tool : In the
prescribed format each SIS has to submit it
existing status on following parameters :
1. General Profile;
2. Accounting System;
3. Books of Accounts;
4. Status of Bank Accounts;
5. Status of Bank Reconciliation Statements;
6. Internal Audit System;
7. External Audit;
8. Outstanding Advances;
9. Staff Strength and Capacity Building; and
10. Status of Annual Reports
Format
for Assessment Tool firstly shared with State Finance
Controllers in 30th Quarterly Review Meeting and after incorporating
the suggestions received, sent to States vide AS (SE) letter dated 2nd
September 2011 . States yet to respond on it.
Technical Support Group, EdCIL, New Delhi
RESPONSIVE ACCOUNTING UNDER SSA
Strategies
Two visits of Central Team
comprising Mr. Arun Sharma, and
Mr. Sushil Kumar from MHRD and
TSG Consultants from Civil Works
and Financial Management unit ;
 Meeting with SIS and DPO’s
Civil
Works
&
Accounts
functionaries;
 Pending Advance disbursed up
to 2009-10 targeted ;
 Provisions made for adjustment
of advance to the extent actually
utilised
for the Works under
progress with full transparency
 Time bond target fixed for
adjustment ;
 Continuous monitoring of the
progresses and feed back from
MHRD;
 in
Outcomes
Bihar
Reported
Adjustment of
Rs. 2000
Crores in first stage and
further Rs. 400 cr. – Total
approximately 2,400 Crore
against
the
total
outstanding balance of Rs.
3800 Cr. Approx.
 In Jharkhand – reported
adjustment Rs. 550 Crore
against total outstanding
balance of Rs. 950 Crore;
 Major portion of reported
adjustments relates to Civil
Works
Technical Support Group, EdCIL, New Delhi
RESPONSIVE ACCOUNTING UNDER SSA
Intensive Training for Capacity Building
TSG in Role of “Trainer”
Five 2-days Regional Trainings planned on Financial
Management for the purpose of capacity building of Accounts
Personnel of SPO/DPOs in view to develop some of them as
“Master Trainer” who could not only tackle the chronic financial
management issues but also to impart further training to district and
sub-district level accounts personnel.
Western
Region
Southern
Region
Eastern
Region
N. E.
Region
Northern
Region
Pune
(Maharstra)
Trichoor
(Kerala)
Patna
(Bihar)
Guwahati
(Assam)
Pachkula
(Haryana)
Gujrat , Rajasthan,
Madhya Pradesh,
Maharastra, Goa,
Dam. & Diu , D & N.
Hav., Lakshadweep
Kerala,
Andhra
Pradesh,
Tamil
Tadu, Puducherry,
Karnataka,
A&N
Islsland,
Bihar,
Jharkhand,
Chhattisgarh,
West Bengal ,
Orissa
Assam,
Tripura,
Nagaland,
Meghalaya,
Manipur, Arunachal
Pradesh , Sikkim
Haryana,
Punjab,
Chandigarh, Delhi,
Himachal Pradesh
J & K, Uttarakhand,
Uttar Pradesh
Technical Support Group, EdCIL, New Delhi
RESPONSIVE ACCOUNTING UNDER SSA
Intensive Training for Capacity Building
Salient Features of Regional Training
 All District & State Level Accounts Officers of the hosting state
to participate;
 Other Participating states to nominate five Accounts personnel.
3 (three) of them shall invariably be from DPOs and 2 (two) from
State project Office;
 Keys issues identified from the States Audit Reports of
preceding years;
 After completion of all five Regional Trainings, the hosting
states shall select at least 3 (three) persons and all other state
shall nominate all three accounts personnel who have attended
the training as the “Master Trainer “
 All such Persons identified shall be imparted 3-days intensive
Training centrally at Delhi; and
 After the second phase of training, such Master Trainers shall
impart further Training at District / sub-district level Accounts
training
Technical Support Group, EdCIL, New Delhi
RESPONSIVE ACCOUNTING UNDER SSA
Intensive Training for Capacity Building
1.
Key Issues selected
for Training
Training
:
Needs
&
Importance;
2. FM Action Plan & Monthly
Exp. Plan;
3. Book Keeping & Accounting
under SSA-Accounting Cycle
4. Bank
Reconciliation
Statement;
5. Accounting
of
13th
FC
Awards;
6. Implementation of CPSMS
7. Procurement Procedure;
8. Statutory Compliance - TDS
under IT Act, 1961
9. Settlement of Audit Para
10. Adjustment of Outstanding
Advances
Technical Support Group, EdCIL, New Delhi
RESPONSIVE ACCOUNTING UNDER SSA
Intensive Training for Capacity Building
Regional Training –
Resource Book
1.
2.
3.
4.
5.
6.
Importance & Need of Training
– Post Training Expectations;
Double
Entry
System
of
Accounting;
Book of Accounts under SSA –
Cash Book, Ledger , Trial
Balance, Receipt & Payment
Account,
Income
&
Expenditure Account & Balance
Sheet.
Bank
Accounts & Bank
Reconciliation Statement
Statutory
Provisions
under
Income Tax Act, 1961
TDS Deductions, Deposit in
Govt.’s Revenue Account, Filing
of E- Quarterly Returns
Technical Support Group, EdCIL, New Delhi
RESPONSIVE ACCOUNTING UNDER SSA
Intensive Training for Capacity Building
1st – Batch of Regional Training at Pune ( Maharastra)
Date : 10th – 11th Oct’2011
Venue : Hotel VITS , Pune
States Participated :
Maharastra, Rajashthan,
Madhya Pradesh, Daman
& Diu, Dadar & Nagar
Haveli
Not Participated : Goa
Lakshadweep
Total no. of Participants :
101
Technical Support Group, EdCIL, New Delhi
RESPONSIVE ACCOUNTING UNDER SSA
Intensive Training for Capacity Building
2nd – Batch of Regional Training at Trichoor ( Kerala)
Date :
Venue :
14th – 15th
October ’2011
Joy Palace,
Trichoor
States Participated :
Kerala, Karnataka,
Puducherry, Tamil Nadu
Not Participated :
Andhra Pradesh
A & N Island
Total no. of Participants
73
Technical Support Group, EdCIL, New Delhi
RESPONSIVE ACCOUNTING UNDER SSA
Intensive Training for Capacity Building
Participants Feed Back
After the Training feed back of the participants were
taken in a prescribed format specially designed for
Post Training Evaluation & Learning self assessment
Post Training Evaluation & Learning Self Assessment :
( 0n the scale of 3 to 5 : 1=Low, 3=Medium, 5=High )
1. About 45 % Participants, on the basis of self evaluation
have gained their knowledge from Low to Medium;
2. About 30 % Participants gained knowledge level from
medium to High
3. 25 % participants gained knowledge level from Low to
High
Technical Support Group, EdCIL, New Delhi
RESPONSIVE ACCOUNTING UNDER SSA
Intensive Training for Capacity Building
Participants Feed Back
After the Training feed back of the participants were
taken in a prescribed format specially designed for
Post Training Evaluation & Learning self assessment
Will do differently in practice as a result of this Training
96 % participants would perform in better way after
this training.
Topics & Issues that were strength of the Training
67 % participants - Accounting , BRS, Procurement,
Statutory Compliance were the strength of the training.
Weaknesses of the Training
30 % participants - Communication in English, 40 %
lack of Group discussions, 20 % inadequate time ; 10 %
no weakness
Technical Support Group, EdCIL, New Delhi
RESPONSIVE ACCOUNTING UNDER SSA
Intensive Training for Capacity Building
Participants Feed Back
After the Training feed back of the participants were
taken in a prescribed format specially designed for
Post Training Evaluation & Learning self assessment
How to improve this Training
40 % participants wants this training to be imparted
in their States covering all DPOs Accounts Staff;
Should be conducted every year
Additional Topics should be included for Training
Computerized Accounting , Service & Travelling Rules
7 % Preparation of AWP & B, Revised Financial Norms etc,
Technical Support Group, EdCIL, New Delhi
FINANCIAL MANAGEMENT - SSA
Thank You ….
Technical Support Group, EdCIL, New Delhi