National Project Implementation Plan - NVBDCP

separate financial management cell in the NVBDCP Directorate at the centre,
the financial management arrangements for NVBDCP at the state, districts and
sub district levels are proposed to be integrated with NRHM. This will include
funds flow, administrative and financial delegations/ rules, accounting &
internal control, finance staffing, financial reporting and audit assurance
mechanisms.
The MOHFW has constituted a committee under the Chief Controller of
Accounts (CCA) of MOHFW to guide the development of a common financial
management manual by Financial Management Group (FMG) applicable for all
programs funded by MOHFW, while retaining the needs, especially financial
reporting requirements, of individual programs. As a first step the MOHFW has
already issued (a) Guidelines on budgets, annual plans and funds flow and
banking arrangements; and (b) Financial guidelines and framework for
delegation of administrative and financial powers. From the NVBDCP
perspective, this will essentially mean incorporating the budget formats, chart
of accounts and financial reporting formats of NVBDCP in the NRHM finance
manual. In addition, the FMG is developing procedures to enhance the audit
assurance by strengthening the process of selection of auditors. These are
expected to be completed by September 30, 2008. As a part of the integration
of the disease control program with NRHM, finance staff under NRHM at the
state as well as district levels will be responsible for funds flow, accounting and
reporting the expenditure for all disease control programs including NVBDCP.
The Books of Accounts at the Directorate, NVBDCP, states and districts will be
maintained as per the NRHM financial guidelines. Standard Books of Accounts
will be maintained on a double entry basis in the state and district societies
which would include cash and designated Bankbook, journal, fixed assets
register and advances ledger. Expenses would be recorded on a cash basis and
would follow broadly the project activities.
11.5 Internal Procedures applicable to the decentralized activities
(about 10% of the project cost) to be followed by NVBDC Directorate
and arrangement between MOHFW and the States/ Districts
The Directorate of NVBDCP will follow the normal process of releasing funds as
cash grants to states against approved Annual Action Plans (AAPs). The AAP for
each state is approved based on the actual pace of implementation and
incorporates the district plans. The States in turn will transfer funds to districts
for implementation of project specific activities. The annual budget allocated to
each state will be released in two installments during the first and third
quarters of each fiscal year through the electronic transfer of funds. The state
unit will transfer funds for activities to be implemented by the districts. The
funds will be transferred to the designated Bank account in the state as well as
districts, which will be maintained as a sub account for NRHM Bank account, as
per the NRHM guidelines. The districts and states will maintain program specific
books of account including activity wise ledger accounts as specified in the
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