National Project Implementation Plan - NVBDCP

11.2 Financial Management at the Central level
Budgets and funds flows: At GOI level, NVBDCP funding requirements are
projected within the budget of the MOHFW. NVBDCP has a separate budget
head (minor head). At the national level, the budget is operated by the
Directorate, NVBDCP and adequate provision form the proposed project on
malaria control and Kala-azar elimination has been made in the budget for the
year 2008-09. Funds for procurement by the procurement agent will be made
available by the Directorate by drawing on the non-plan budget and based on
actual utilization/submission of settlement documents, the expenditure is
charged to the plan budget. Need based funds will be provided to the Research
Institutions for specific activities for which utilization certificate and SOEs duly
signed by appropriate authority will be submitted to Directorate of NVBDCP.
11.2.1 Accounting, Internal control and Financial Reporting
The accounting for expenditures at the central level is done by the Pay and
Accounts Office (PAO) headed by the Chief Controller of Accounts within the
MOHFW. The NVBDC Directorate maintain cash book and other subsidiary
records (including advances to and settlements by the procurement agent etc),
the balances in which are periodically reconciled with the PAO. Grants provided
to States against approved actions plans are recorded as expenditure in the
books of account of MOHFW. All sanctions for expenditures/ release of funds
are required to be approved by the Financial Advisor in MOHFW. These
financial records will form the basis of preparation of the Interim and Annual
Financial reports for submission to IDA, the formats of which have been agreed
to. Until such time as the procurement and supply management capacities of
the NVBDCP are developed to the satisfaction of IDA, all ICB/LIB and NCB
procurement above US$ 100,000 will be carried out by a qualified procurement
agent or through a UN agency hired to do so on turn-key basis (viz. from
receipt of the indent till the delivery of the goods to consignees). The
procurement of services at the central level will also be handled by the
procurement agent till the Directorate of NVBDCP develop in-house capacity.
However, in procurement of services, the role of the procurement agent will be
limited up to the contract award recommendation stage, while the contract
shall be signed and managed by MOHFW. Under this project a specific
delegation of power to Project Director i.e Director, NVBDCP upto Rs. 50 lakhs
shall be obtained from MOH for effective implementation of certain activities
like training, operational research, workshop, seminar publication of guidelines
and day to day project office expenditure.
11.2.2 Finance Staffing
The existing accounts cell in the directorate of NVBDCP will strengthen by
contracting in two finance consultants, of which one is already in position and
the second will contracted by September 2008. The finance consultants will
have responsibility for liaison with procurement agent (fund transfer, collection
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