SSA RAJYAMISSION, ARUNACHAL PRADESH 27TH QUARTERLY REVIEW MEETING OF FINANCE CONTROLLERS.

1. SSA RAJYAMISSION, ARUNACHAL PRADESH27TH QUARTERLY REVIEW MEETING OF FINANCE CONTROLLERS. Capacity Building of the Accounts Staffs in Arunachal Pradesh

2. Map of Arunachal Pradesh

3. General Information of the State • Arunachal Pradesh, the land of rising sun is situated at the north eastern corner of India. • Having international boarders with China, Bhutan and Myanmar. • Most of the districts are situated on difficult hilly terrain with poor connectivity.

4. General Information of the State • Sparsely populated with a total population of about 11 lakh. • The density of population is 13 persons per square km. • It has an area of 83743 sq km which is larger than Assam. • It has about 26 major tribes.

5. Some facts about Arunachal Pradesh • From 1914 to 1943, the Arunachal Pradesh was known as North East Frontier Tract (NEFT). • In 1951, it was renamed as North East Frontier Agency (NEFA) with the inclusion of Sadiya Frontier Tract, the Abor Hill Tract, Mishmi Hill district and Naga Tribal Areas. • On 20th Jan’1972, the NEFA was upgraded to Union Territory and named as Arunachal Pradesh. • On 20th Feb’1987, the Arunachal Pradesh attained the full fledged statehood.

6. Total No. of Administrative Units • Total no of SPO :- 1 • Total no of districts :- 16 • Total no of BRCs :- 84 • Total No of URC :- 1 • Total no of CRCs :-209 • Total no of VECs :-2886 • Total no of KGBVs :-36

7. Issues related with Financial Management • Due to non availability of skilled accounting personnel, we were compelled to recruit the unqualified accountants in the beginning of SSA programme. • Since we have to follow the double entry system of accounting in SSA, it is a challenging job for these accountants to maintain the books of accounts. • For providing capacity building to these accountants, there is no resource persons available in the state during that period. • As a result, we have taken the help of Ed.CIL consultants from TSG as Resource Persons for conducting the capacity building programme for the Financial Management Staff at the state & district level.

8. Issues related with Financial Management • Even after giving one or two rounds of capacity building programme, the districts were not able to maintain the books of accounts on double entry method. • As a result, we have to hire Chartered Accountants for providing the training on double entry system of accounting. • After that the system has been streamlined, the districts were maintaining cash book, ledger and journal in the double entry system. • Since the Districts were maintaining various books of accounts manually, lot of mistakes were also observed by the statutory auditors.

9. Issues related with Financial Management • In order to bring some more improvement in the accounting procedure, the SSA Rajya Mission, Arunachal Pradesh has decided to introduce the maintenance of books of accounts from manual to computerized system. • Towards this line, Saya Matrix Accounting Software was installed in all the districts during 2009-2010. • At the time of installation, all the accountants and data entry operators were given two rounds of training for handling this accounting software successfully.

10. Structure of Financial Management

11. Financial Management Staffing Structure at State and District level

12. Preparation of Modules • The modules for the capacity building has been designed based on the following documents: • The manual on financial management and procurement published by GOI. • Important instructions and guidelines issued by the GOI from time to time on financial management. • The training modules developed and presented by the Ed.CIL consultants during the quarterly financial review meeting conducted by MHRD. • The presentation made by the Finance Controllers during the quarterly financial review meeting conducted by MHRD. • Need based modules as per the observation of the JRM/ statutory audit report/IPAI report/ financial review reports.

13. The area of coverage of training • The area of coverage of training programme is on the following aspects of financial management. • Planning • Budgeting • Cost norms under SSA • Budgeting various interventions • Fund Flow arrangements • Accounting • Concept, Principle and method of accounting

14. The area of coverage of training • Accounting continued • Double entry system of accounting • Cash Book • Ledger • Journal • Maintenance of Registers • Adjustment of advances • Preparation of Bank reconciliation statement • Re-appropriation of funds • Internal control and checks • Preparation of bills

15. The area of coverage of training • Auditing • Statutory Audit • Internal Audit • IPAI Financial Review • Procurement Procedures • Open Tender • Limited Tender • Single Tender, No Tender & Rate contract • Levels of procurement

16. The area of coverage of training • Financial Reporting • Important of Financial Reporting • Filling up of Various Formats of • MMR (16 Points & Activity wise) • QPR (Annexure-VIII, IX, XI, XII, XIII, XIV) • FMR-I, II, III • Accounting Software • Introduction to Accounting Software (Set up and navigation) • Company Set up, Masters, Cash, Bank, Journals etc. • Generation of various financial reports • Hands on practice

17. The area of coverage of training • The following modules are included for the existing accounting staffs those who have already undergone many training programmes. • Latest instructions and guidelines issued by the GOI on Financial Management. • The latest amendments made in the manual on Financial Management and Procurement. • Need based modules for improving the Financial Management aspects as per the observations of the JRM, Statutory Audit, IPAI financial review, internal audit and Financial Review report of the Ed.CIL consultants.

18. Arrangement of Resource Persons • Resource persons for the training has been arranged from the following Resources: • Inviting Ed.CIL Consultants • Hiring of experienced Chartered Accountants on SSA Audit. • Local resource persons from • SSA Rajya Mission • Department of Accounts & Finance

19. Mode of training • The training will be on the following modes: • Lecture cum interactive discussion method. • Power point presentation • Participatory group activity. • Practical work based on the worksheets. • Hands on practice in case of accounting software.

20. Duration of training • As per the provision of the manual on Financial Management and Procurement, 6 days mandatory training is to be given to all the Financial Management functionaries of state/ district/ sub-district level in a year. • In our state, this 6 days training programme has been given in two spells of three days each.

21. Other arrangements related with training • Procurement of training materials like pen, pad, file folder etc. • Logistic arrangements for Training, accommodation for the Resource Persons/ participants. • Venue arrangements (Banner, PA system, items required for power point presentation (computers, LCD projector screen etc.) • Arrangements of training materials like Handouts and blank formats for practical session. • Arrangements for working lunch and refreshment.

22. Yearwise conduct of training programmes • 2003-04: • A Training programme was arranged for the district level financial management functionaries at the state capital in collaboration with MHRD, GOI for 3 days. • 2004-05: • Again, the Ed. CIL consultants were invinited for giving second round of training programme for the financial management staff for state and district at the state capital for 3 days.

23. Yearwise conduct of training programmes • 2005-06: • The SSA Rajya Mission, has started imparting training programme for the district and sub-district level functionaries on financial management on accounting, auditing, procurement process and financial reporting. • The Ed. CIL consultants were invited to act as Resource Persons along with local resource Persons from the State unit.

24. Yearwise conduct of training programmes • 2006-07: • The SSA Rajya Mission, has started imparting training programme for the district and sub-district level functionaries on financial management on accounting, auditing, procurement process and financial reporting. • The Ed. CIL consultants were also invited to act as Resource Persons during the training.

25. Yearwise conduct of training programmes • 2007-08: • Training of Accounts staff was conducted 2 times. • 2008-09: • Training of districts and sub-district level functionaries on Financial Management was conducted on 9th – 12th July’2008. • 68 Nos. of participant were present.

26. Yearwise conduct of training programmes

27. Yearwise conduct of training programmes

28. Yearwise conduct of training programmes

29. Out come of the capacity building programme in Arunachal Pradesh • After giving sufficient capacity building programme to the financial management staff the following improvement in the accounting system has been visualized: • All the books of accounts are maintained at all levels. • The cash book is being written in double entry system. • The journal and ledger accounts are being maintained up to BRC level. • The bank reconciliation statement is being prepared every month regularly up to district level. • The internal audit of the sub-district level accounts are carried out on concurrent basis and UCs are collected at the end of the year.

30. Out come of the capacity building programme in Arunachal Pradesh • The advances are adjusted and the accounts are closed as per the instruction of GOI. • The cheque issue register is being maintained at all levels. • The financial reporting has been improved to a large extent and many districts are reporting timely and regularly to the SPO. • The utilization of funds has been increased to a large extent at the district level. • The grants released to the districts have been further released to the sub-district level in time. • The salary and other payments for the sub-district level is being transferred to the VEC account wherever possible.

31. Thanks