INDIA: Integrated Coastal Zone Management Project

INDIA Integrated Coastal Zone Management Project (P007985)
First Implementation Support Mission, June 2011
expected to be submitted by August 2011 end. An audit committee of the SPMU has been constituted as
per the FM Manual.
19. Odisha: The internal auditor has been appointed and the contract has been signed for FY11-13 in the
month of April 2011. The auditor is expected to start the work from July 2011. The first quarter report is
expected to be submitted by August 2011. An audit committee of the Odisha SPMU needs to be
constituted as per the FM Manual, and the same needs to be intimated to the World Bank before 31
September 2011.
20. West Bengal: The internal auditor has been selected and would be in place in July 2011. The auditor is
expected to start the work from July 2011. The first quarter report is expected to be submitted by August
2011 end. An audit committee of the West Bengal SPMU has been constituted.
External audit
21. As agreed an external auditor has been appointed by the NPMU who will cover the entire project
activities carried out by NPMU, all SPMUs and PEAs. The contract has been signed for FY 10-11 in the
month of April 2011. The auditor is expected to start the work from July 2011 and would submit the
report before the due date of September 2011.
New PEAs at national level
22. Three new activities are slated to be carried out under national component: (i) Dandi ESA activities which
is expected to be carried out GEC; (ii) Vedranyam ESA activities which expected to be carried out
MSSRF; and (iii) national knowledge program to be carried out by NCSZM.
23. For activity 2 and 3 the financial management assessment of MSSRF and NCSZM has been carried out
and prima facie MSSRF has the capacity to handle the FM reporting requirements as per the FM
assessment. In case of NCSZM since it is a new entity, accounts staff needs to be hired and trained to
carry out the project accounting and reporting. Till the accounts staffs are hired, all project related
expenses for NCSZM should be scrutinized, paid and accounted by SICOM. SICOM should ensure that
the NCSZM staff are hired and trained properly before they operate the project funds. For all the
components, the final cost table and the activities are yet to be approved by the technical team. So the first
step would be that the cost tables and activities are agreed with the task team and based on the activities
the financial management framework, fund flow and audit requirements can be worked out with these
agencies. Till the time the cost tables are completed and the funding is agreed, the project is advised not
to claim expenditure incurred by these agencies.
SHG/EDC framework
24. In the project there are some components where the funds would be transferred to the SHG/EDC/CBO.
The mission requested the project to finalize the fund flow, accounting rules and the installment payments
mechanism for SHG/EDC/CBO framework and inform the World Bank for concurrence. The mission
informed that all payments must be made to these communities through cheques and should also where
possible insist on maintaining separate bank accounts. The bank account should have at least two
signatories, which is a good internal control mechanism. The mission suggested that the maximum
installments should be around 3 and the project needs to work out and inform as how the payments would
be made and how the expenditure would be monitored. This framework needs to be shared with the
World Bank by 31 August 2011. Also all payments made to these groups would be treated as advance and
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