National Project Implementation Plan - NVBDCP

of expenditure reports and settlement of advances etc) and oversight on the
financial management arrangements at the state and districts together and
with the financial management group established under National Rural Health
Mission (NRHM) at national level.
11.2.3 Audit Arrangements
The annual financial statement of the expenditures incurred at the central level
will be audited by the Comptroller & Auditor General of India (C&AG) who is
constitutionally independent. The World Bank and the Ministry of Finance are in
discussion with the C&AG to agree on a Standard Terms of Reference which will
provide a framework for audit. A project specific TOR will be agreed within the
framework after the negotiations as the C&AG requires the finalized legal
documents to provide its concurrence. (Project Specific TOR to be consented to
by C&AG).
Implementing Agency Audit Auditors Timeline
The Directorate, NVBDCP
Project Audit for
central level
activities including
expenditures
incurred by
procurement agent.
Comptroller
and Auditor
General of
India
30 September
11.3 Financial Management Arrangements at the State/District level
The key issues that emerged from the earlier World Bank EMCP project are:
the financial management arrangements in some states and districts were not
adequate, with the weaknesses mainly being (i) lack of familiarity with double
entry accounting and maintenance of ledgers by govt staff resulting in delays in
SOE and preparation of financial statements; (ii) inadequate internal &
operational controls; (iii) consequent delays in submission of audit reports. The
issues indicated above shall be strengthened during this project. The activities
at the decentralized level, to be financed under the project are limited to
contractual staff, their mobility costs and training.
11.4 Integration of financial management arrangements under
National Rural Health Mission
A detailed financial management assessment carried out covering a sample of
5 states in January 2007 suggested several measures for improving financial
management in the NVBDCP. Subsequently in August 2007, the MOHFW has
decided ‘in principle’ to integrate various disease control programs including
the financial management arrangements with the NRHM. Thus, the financial
management capacity of NRHM will have a major bearing on the successful
implementation of financial procedures for NVBDCP. While there will be a
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