NRHM-Rajasthan

1. NRHM-Rajasthan Presentation on Tally System V. Srinivas, IAS Secretary FW & MD NRHM Government of Rajasthan

2. Kolkata Workshop March 2009 • The Kolkata workshop laid down the roadmap for strengthening financial management under NRHM; • Key decisions included monthly reporting of FMR to GOI; Open tender system for selection of statutory auditor, adoption of tally at district, block and institutional level; reduction of advances; closure of EAG/ RCH I accounts and concurrent audit of district health societies and SHS • Rajasthan has complied with these key decisions

3. The Complexity of Fiscal Transfers • NRHMs financial management involves timely and adequate fiscal transfers to a number of spending agencies at sub district level; • Poor liquidity management can result in beneficiary payment delays and negative institutional balances, inter alia higher transfers can disturb macro economic management at State level with ageing advances at institutions;

4. Fund Flow & Reporting NRHM – National Rural Health Mission NGO – Non Government Organisation PHC – Primary Health Centre CHC – Community Health Centre SC – Sub Centre VHSC – Village Health & Sanitation Committee

5. SHS DHS Grant Received-UC Expenses=Unspent Grant Unspent Grant Utilisation Certificate District Carry forward for Next Year Other (PWD, RHSDP) etc. RCHO BLOCKs ADD. CMHO District Hospital CHC PHC SC Grant Received Utilisation Certificate Block UC of Expenses Unspent Grant

6. Scaling up of Financial Expenditures Rajasthan 2008-09

7. Financial Management of NRHM in Rajasthan • Rajasthan’s expenditures under NRHM PIP increased from Rs. 334 crores in 2007-08 to Rs. 920 crores in 2008-09; • This significant scaling up was a result of streamlining of Financial Management Practices, adoption of Tally for accounting purposes and e banking; • Advance position has came down from Rs. 200 crore in April 08 to Rs. 110 crore in July 09; • Reconciliation of EAG accounts resulted in significant refunds to GoI; • In pursuance of Kolkata discussions RCH-I accounts are being finalized; • State Health Society Audit for 2008-09 has been completed following merger of accounts of 34 District health Societies and 237 Blocks Accounts.

8. Financial managementPolicy Corrections • All multiple accounts have been closed; • Only one account is operational at District level for RCH II, Mission flexi pool and Routine Immunization; • A limit of Rs.2.5 cr imposed other than VHSC moneys, advances have come down by Rs. 50 crores in the current year; • Unadjusted advances include moneys to PRIs for construction of model sub centers and annual maintenance grants, all un-commenced works of model sub-centers have been de-sanctioned and moneys to be refunded to DHS • Districts with larger number of institutions have large advance positions, lot of emphasis being placed on speedy utilization of untied funds/ annual maintenance grants

9. Releases take a long time • State Plan releases moneys to PD a/c of SHS only after CSS releases are received • GOI releases are received in 5-6 installments, State Finance Dept has to be approached number of times • The average processing time for releases of State Plan funds is considerable

10. Progress at a Glance Rs. In Crores

11. NRHM Year Wise Expenditures Rs. In Crores • NRHM XIth Plan allocation of Rs. 6200 Crore • Utilization end March 2009 is Rs. 1400 Crores • PIP 2009-10 for Rs. 1010 Crores.

12. Projected Fund Utilization Flow Rs. In Crores

13. Program Implementation Plans The Strength of Micro Level Planning for Resource Transfers

14. Planning Process State Program Implementation Plan 34 District Program Implementation Plans 237 Block Program Implementation Plans 41000 Village Health Plans (physical progress)

15. Distribution of PIP Share State PIP= 1010 Crores 54 % Of State PIP Total District PIPs= 545 Crores 80 % Of District PIP Total Block PIPs= 436 Crores

16. NRHM Projected Expenditure in 2009-10 Expenditure through SHS is Rs. 465 Crores State Health Society District Health Society Block Health Plans Expenditure through DHS is Rs. 109 Crores Expenditure through Blocks is Rs. 436 Crores

17. Division Wise Distribution of PIP • Among districts, • Jaipur I & II DHS have a PIP size of Rs. 53 Crore • Udaipur District has a PIP Size of Rs. 42 Crore • Nagaur District has a PIP Size of Rs. 33 Crore

18. District wise PIPs Rs. In Lacs

19. Resource Envelope for District PIans Rs. In Lacs

20. Expenditure through District PIPs

21. Tally 9 in Rajasthan Greater Accountability

22. NRHM – Rajasthan State Health Society • Roles & Responsibilities • Consolidation of District PIPs and finalization of State PIP • Ensure timely releases from Central and State Governments and transfers to DHS; • Responsible for collection & compilation of SOEs, UCs from districts and other implementing agencies and prepare reports & returns for monthly meetings and reporting to State Government & GoI. • Ensure timely completion of statutory audit at state as well as district level for all its activities

23. NRHM Rajasthan– District Health Societies • Roles & Responsibilities • Finalization of District PIPs • Facilitate release of funds to district functionaries and blocks • Responsible for accounting for all program and sending Financial Monitoring Reports, UCs and Audit reports to the State FMG, State. • Ensure timely completion of audit at district level as per audit program at state office. All relevant reports and returns shall be made available to audit. • Will liaise with the Block Program Office (BPO) and Block Accountant and other grantee institutions to get the expenditure reports and UCs on a fortnight / monthly basis for all the program under NRHM

24. NRHM Rajasthan – SubDistrictLevel (Block Level) • Primary Roles & Responsibilities • Preparation of Block PIPs • Responsible for consolidation of Statement of Expenditure (SoE) submitted by the following centres at the block level: • Community Health Centre (CHC) • Primary Health Centre (PHC) • Sub Centre (SC) • Village Health & Sanitation Committee (VHSC) • Submission of consolidated Statement of Expenditure (SoE) to the respective District Office.

25. Requirement fulfilled by Tally • TALLY • As a financial accounting package Tally is extremely useful • Capable of handling all kind of transaction. • Modest skill base is required • Information can be fed and retrieved at random and human errors can be corrected.  • A post transaction system - follows the traditional methods of accounting, that is, the payment is first made on the basis of existing accounting methods (i.e., against a voucher or a cash bill) and that information is fed into the Tally. • Covers a wide area - can be used by the owner, financial controller, accountant, manager or an auditor

26. Financial Record Processing System Revenue/Production Planning Monthly Expended budget planed Monthly production/acquire Sch. Daily plans Process Bench Expanses Master Item Issued & Consumptions Analysis of Group Activity Process wise variance Planning & Marketing Received/Acquired Enquiry Quotation Sample Survey Order to Party Order Scheduling Order Cancellation Production Advice Order Processing Items- buy Requisition Process Requisition Request for Quotation Supplier Quotation Office Order against marked quot. Process order to relevant party Purchase Bill get and Verify Planning Statement Monthly Target Plan Item Requisition Voucher/Invoice Details Purched Item Availability status Item Received Details Fixed Assets & Consumable Items Availability Status Budget Activity and Revenue Calender IRS Monthly Expenses Schedule Fixed Assets and Consumable Items Office Order with Party Bill PRODUCTION/REVENUE Item Requisition Slip (IRS) Receipt against IRS/Office Order Items Execution Quality Control as per Tenders conditions Item Return Note (by Store Incharge) Stock Register - F/A & C/A Issued & Received analysis Weekly Balance Verified -- Physical & Monitory Value as per books Monthly cumulative consumption Store Room Item Requisition Slip Item Return Note Item Receipt at Store Quotation note match with Tender Item receipt at quality control Rejected Item Dispatch Advised Item Issued Section Wise Store ledger verified by DDO Requirement area IRS ITEMS

27. Financial Accounting & Reporting at NRHM • NRHM – State Level • Cash Balance Certificate • Treatment of Interest Earned in the Bank Account • Preparation of Cheques • Cash Book with Cash & Bank Columns • Petty Cash Book • Serial Numbering of Vouchers • Ledger • District Programme Management Support Unit-wise ledgers • Journal • Register of investments

28. Financial Accounting & Reporting at NRHM • NRHM – State Level • Registers for temporary advances as below: • Advance to staff • Advances to Contractors / NGOs • TA/DA Advance • Stock Register for: • Machinery & Equipment • Furniture & Other Non-consumable articles • Register for drugs & medicines • Register for consumable articles • Dead Stock Register (Machinery & Equipments, Other non-consumable articles) • Receipts & Payments Statement

29. Financial Accounting & Reporting at NRHM • NRHM – State Level • Income & Expenditure A/c • Bank Reconciliation Statement • Register of Fixed Assets • Physical Stock Verification/Adjustments

30. Major Issues in SHS & DHS Accounting • Receipts of Grants (Flexible Pool wise receipts of Grants i.e. RCH II, Add under NRHM, RI etc) • Expenditure against grants • Advances Pool wise / Facility wise & their aging • Other incomes (Interest, Tender fees etc) • Bank Reconciliation statements • Fixed Assets • Other Grants and Expenditure

31. Accounting of Grant receipts Current Liabilities Unspent Grant RCH II Add under NRHM RI Other Grants (At the Year/ Month end Amount equals to Expenditure in respective pool is transferred to indirect income)

32. Accounting of Expeditures Income & Expenditure Account Indirect Expenditure RCH II Add under NRHM RI Other Grants

33. ADVANCES CURRENT ASSETS LOANS & ADVANCES RCH II Add under NRHM RI Other Grants After Broad Grouping of Advances under above four pools various sub groups are also formed for reporting purposes such as advances to CHCs for JSY, to PHCs for JSY, Advances to SHCs under Untied funds

34. AGING OF ADVANCES In tally reports regarding aging of advances can be easily generated. This report shows no of days for which a particular advance is outstanding. So in this way we can track older advances and focus our attention to clear them as soon as possible. The major benefits of tally accounts in advance aging is that it mentions clearly exact no. of days for which any advance is outstanding at any point of time. No manual exercise is to be done for this purpose.

35. How much advances are lying to CHCs/ PHCs/ sub centers/ blocks under RCH Flexi pool or other pools • How much advances are outstanding under Additionalities under NRHM • Total Advances of all pools at any point of time • These information may be generated at a click of button at any time. Category wise & Pool wise Grouping of advances Tally offers category wise and pool wise grouping of advances. This helps us to generate reports as :

36. BANK RECONCILIATION STATEMENTS (BRS) • In tally there is an inbuilt facility to prepare bank reconciliation statements • In traditional BRS one have to tick one by one checks through statements and its too lengthy procedure in case of DHS as BRS have more than hundreds of un-cleared cheques.

37. Other benefits of tally accounting: • It warns about negative cash immediately as soon as any expenditure is entered • It doesn’t accept any wrong entry which creates any difference in Balance Sheets • It automatically prepares Balance sheet, Income & Expenditure account. • It reports for overdue receivables and overdue paybles

38. NRHM-Rajasthan State Health Society • Current status (Up to 31st July 2009) of Bank Balance & Advances of Rajasthan State Health Societies & District Health Societies. • Operating of tally system in Rajasthan State Health Society, 34 District Health Societies and 237 Blocks

41. Total Accounts Under NRHM 12889 Bank Accounts • All Bank Accounts operational. • 2. E-transfer is functional at all districts • and out of 237 Block A/c 200 are • covered through E-transfer • 3. We are negotiating talks with our • Bankers to facilitate E-transfer/ • RTGS at Block & CHC level. 34 Bank A/c DHS 2 Bank A/c SHS, Rajasthan 237 Bank A/c Block 365 Bank A/c CHC 1509 Bank A/c PHC 10742 Bank A/c SHC

42. FUND FLOW THROUGH E-TRANSFER GOI E-Transfer (State Health Society, Rajasthan) E-Transfer (District Health Societies) E-Transfer in 200 Blocks DD/Cheque in 37 Blocks DD Cheque in all CHC/PHC/SHS

43. Balance sheet FY 08-09

44. Income & Expenditure FY 08-09

45. RCH Flexible Pool Exp. FY 08-09

46. NRHM Flexible Pool Exp. FY 08-09

47. Closing Balance of NRHM Flexible Pool Advances DHS FY 08-09

48. Closing Balance of NRHM Flexible Pool Advances DHS FY 08-09

49. Closing Balance of RCH Flexible Pool Advances DHS FY 08-09

50. Closing Balance of RCH Flexible Pool Advances DHS FY 08-09