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Capacity Building

Capacity building for financial Management


Integral part for effective and efficient functioning of
Financial Management Unit.
Needs to be continuous and customized.
Subjects covered
Planning
Budgeting including financial norms.
Accounting
Fund flow arrangements
Financial reporting
Internal Audit
Annual Audit
Procurement

Capacity Building
Continuous capacity building is necessary to equip finance
and internal audit staff with sufficient knowledge of the
area of their work.
This would enable the staff to carry out the work more
efficiently and systematically.
Minimum 5 days training is mandatory in a year.
This may be given at a stretch or staggered.
Desirable to provide 5 days training at a stretch to all new
recruits.
Training to existing staff may be staggered.
Identification of resource persons is most important at
State, District and sub-district level.

Capacity Building
Level of Training

Resource Persons

State

Master Trainers identified at State level,


Chartered Accountant, TSG Consultants

District

Master Trainers identified at State level,


Chartered Accountant, TSG Consultants

Block/Cluster

Master Trainers identified at district


level, Chartered Accountant

VEC/School

Master Trainers identified at


block/cluster level

Capacity Building
Training Content
Separate training content for different targets group at
different levels:
VEC/School
Cluster
Block
District Project Office
State Project Office
Tailor made training content for different spending entities
at different levels.

Capacity Building
Training Content
Needs to develop a training content covering:
Planning
Budgeting including financial norms
Accounting including double entry system
Fund flow arrangements
Financial reporting
Internal Control and Internal Audit
Auditing
Procurement procedure
Include exercises on the above subjects and its solutions
Case studies on Accounting and procurement.

Capacity Building
Develop Training Content covering:
Planning
Objectives of planning,
identification of planning teams,
participatory planning process,
interaction with community and targets groups,
consultative meetings,
information need and collection of information,
data analysis and its utilization in the plans,
steps in planning,
situational analysis,
state and district profile,
state and district plans,
education profile,
problem and need identification,
goals and target setting and
need based planning.

Capacity Building
Develop Training Content covering:

Budgeting
Preparation of annual work plan and budget,
financial norms under SSA,
NPEGEL and KGBV and clarifications issued thereof,
progress overview,
spillover activities,
appraisal of the plan,
approval of the plans by the Project Approval Board,
budget calendar.

Capacity Building
Develop Training Content covering:
Accounting
General Financial Rules,
delegation of financial powers,
duties and responsibilities of Drawing and Disbursing
Officer (DDO),
double entry method based on mercantile system of
accounting,
maintenance of books of accounts and registers,
advances,
norms for regulating advances,
advance register,
monitoring of advances,
account head,
maintenance of cash book,
journal,

Capacity Building
Develop Training Content covering:
Accounting
ledger,
correction of errors,
bank reconciliation,
staffing structure in Finance and Accounts and Internal
Audit,
capacity building of accounts and audit staff,
control of expenditure,
re-appropriation of funds,
salary bills and other claims,
travelling allowance.

Capacity Building
Develop Training Content covering:
Office expenses
Stationery,
recurring contingent and miscellaneous costs,
postage,
POL,
hiring of vehicles,
maintenance of vehicles/equipment,
purchase of office furniture/equipment,
telephone/fax/internet,
consumables etc.

Capacity Building
Develop Training Content covering:

Funds flow arrangements


Funds of the State Implementing Society,
procedure for release of funds,
flow of funds,
opening of bank accounts,
e-transfer of funds and
interest.

Capacity Building
Develop Training Content covering:
Financial Reporting
Preparation of quarterly fund flow and cash forecast
statement,
quarterly progress statement,
treating advances as expenditure,
release of funds to the districts,
district wise expenditure statement,
Financial Performance and
Status on financial indicators

Capacity Building
Develop Training Content covering:

Internal control
Supervision and monitoring,
concurrent financial review and monitoring by GOI,
indicators for financial management checks by GOI.

Internal Audit
Arrangement for internal audit,
scope of internal audit,
coverage,
report writing and follow up action on internal audit
objections/observations.

Capacity Building
Develop Training Content covering:

Internal control
Supervision and monitoring,
concurrent financial review and monitoring by GOI,
indicators for financial management checks by GOI.

Internal Audit
Arrangement for internal audit,
scope of internal audit,
coverage,
report writing and follow up action on internal audit
objections/observations.

Capacity Building
Develop Training Content covering:

Auditing
Statutory audit by Chartered Accountant firm,
selection CA firms,
scope of audit,
coverage,
audit of VECs receiving more than Rs. 1 lakh per year in a
cycle of three years,
utilization certificate,
submission of audit report by due date,
preparation of annual financial statements,
balance sheet,
income and expenditure account,
receipt & payment account,
annual report,
statutory audit calendar and
pursuance of audit objections.

Capacity Building
Develop Training Content covering:

Procurement procedure
Levels of procurement,
preparation of procurement plan,
various methods of procurementopen tender,
limited tender,
single tender,
without tender and
civil works by community participation,
financial ceiling prescribed for each method of
procurement,
preparation of standard bidding documents,
various steps involved in tendering process,

Capacity Building
Develop Training Content covering:

Procurement procedure
negotiation,
repeat orders,
rejection of all tenders,
service contracts,
selection of non-government organizations,
contract management and documentation,
post review of contracts by Government of India,
mis-procurement and
complaint handling mechanism.

Capacity Building
Develop Training Content covering:
Procedural lapses
Various observations made by Institute of Public
Auditors of India (IPAI),
Observations made by statutory auditors on SSA
accounts.
Observations made by review teams.

Accounts staf
2009-10

Capacity Building

Capacity building for 2010-11


The training provided in
encouraging in many States.

2009-10

was

not

States need to provide more focus in the current


year.
Sufficient budget provision made in the current years
budget under the general head of capacity building or
specifically under capacity building of Finance and
Accounts Staff in some States.
States to plan this activity at all levels in a more
vigorous manner.