National Project Implementation Plan - NVBDCP

World Bank will review of the annual audited project financial statements
(which will include the funds transferred by NVBDCP to the States, along
with other central level project expenditures), field visits and desk reviews
of MIS information on staffing and training, review of standard costs and
units as well as training programs; and a review of the sample of audit
reports which will be received by the NVBDCP.
Financial management capacity building activities at state /district and
central level.
Annual Lot Quality Assurance Sample Surveys confirming the availability of
trained village level providers and thereby confirming that the training took
place and is benefiting the implementation of the programme). These
surveys will include the same sample districts as being reviewed by the
independent consultants.
Bi-annual Technical Program reviews to the satisfaction of the World Bank.
During early implementation review, based on the results of the integrated
implementation and fiduciary review and a comparison of the actual costs with
the standard cost, this method of financing, the standards costs and assurance
mechanism will be assessed by World Bank and redesigned, if necessary.
This approach is considered more appropriate as it integrates implementation
and fiduciary review and given the relatively lower risk associated with the
activities to be financed at the decentralized level and limited financial
exposure per district. In addition the financial exposure on decentralized
expenditure in Phase I of the project is only estimated to be USD 12 million (Rs
480 million). There will however, be a residual risk given (a) the decentralized
nature of operations; (b) delayed implementation in certain districts leading to
standard costs being higher than actual expenditure, and (c) internal control
weakness in some of the districts. The sample of coverage in the integrated
review will be reviewed based on the findings of the review in the first one
year. The details of standard costs- units, unit cost and basis of determination
are given in Chapter 4. These will be reviewed at project effectiveness for this
component and may be revised for phase I, if considered necessary.
Financial Reporting and Disbursement Arrangements: The project will submit
quarterly interim unaudited financial reports (IUFR) in the agreed formats,
which will reflect the central level expenditures (including those incurred by the
procurement agent and research institutions); the grants transferred to states
for decentralized project activities and the standard cost of the selected
decentralized activities to be financed by IDA27. The IUFR will be submitted
within 45 days of the end of each quarter. Reimbursement by IDA will be made
annually using report-based disbursement, as for the project as a whole. The
IUFR at the end of the financial year will be the basis for reimbursing MOHFW;
27 The standard cost of the selected decentralized activities to be financed by the World Bank will
be calculated on annual basis and presented in the agreed format of IUFR for the last quarter of
the financial year.
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