Ssa- Manual on Financial Management… Bare Act

The source publishes this enactment as a single document rather than provision by provision, so the whole text is below and there are no per-section pages for it. Nothing has been shortened.

Long title	Manual of Financial Management & Procurement (FMP) for Scheme of Samagra Shiksha-regarding
Type	Rules
Year	2009
Jurisdiction	State of Punjab
Status	In force as published by the source
Text	Published as one document, as the source published it
Subjects	financial

1 SAMAGRA SHIKSHA AN INTEGRATED SCHEME FOR SCHOOL EDUCATION MANUAL ON FINANCIAL MANAGEMENT AND PROCUREMENT DEPARTMENT OF SCHOOL EDUCATION AND LITERACY MINISTRY OF HUMAN RESOURCE DEVELOPMENT GOVERNMENT OF INDIA 2018 2 3 SAMAGRA SHIKSHA MANUAL ON FINANCIAL MANAGEMENT AND PROCUREMENT 2018 Table of contents Chapter Chapter Name Page No.

Annexure No. Para. No.

Chapter-1 Introduction Chapter-2 Planning Process and Financial Planning Chapter-3 Financial Management, Fund Flow & Reporting Annexure-I 3.4.3 Annexure-II 3.4.4 Chapter-4 Accounting Annexure-III 4.1.2 Annexure-IV 4.2.2 Annexure –V 4.2.2 Chapter-5 Monitoring, Internal Control and Internal Audit Annexure -VI

5.8 Annexure-VII Annexure-VIII Annexure-IX 5.9.3 Annexure-X 5.10 Chapter-6 Auditing Annexure-XI 6.14 Annexure-XII 6.15 Annexure-XIII

6.6.4 Annexure-XIV Annexure-XV Annexure-XVI Annexure-XVII 6.6.1 Annexure-XVIII 6.6.5 Chapter-7 Procurement Annexure XIX to XXI 7.15 Chapter-8 Capacity Building Chapter-9 Role and Support to Central Institutions under the New Integrated Scheme – Samagra Shiksha- NCERT, NIEPA, NCPCR TSG AND NIC Annexures I to XX 4

CHAPTER-1 INTRODUCTION

1.1 Background:

In the Budget Speech of 2018 of Hon’ble Finance Minister mentioned an integrated scheme for secondary education stating that:

“We now propose to treat education holistically without segmentation from prenursery to Class 12”.

In accordance to the aforesaid announcement, a Scheme was envisaged to treat education holistically without segmentation by merging the centrally sponsored schemes of Sarva Shiksha Abhiyan (SSA), Rashtriya Madhyamik Shiksha Abhiyan (RMSA) and Teacher Education (TE). Accordingly, the Scheme has been developed and launched to form an Integrated Scheme on School Education- Samagra Shiksha from Pre-school* to Senior Secondary schools of the country.

1.2 Vision, Aim & Objectives:

1.2.1 Vision- The vision of the Scheme is to ensure inclusive and equitable quality education from Pre nursery (Pre-school) to Senior Secondary Stage by 2030 in accordance with sustainable Development Goals for Education.

1.2.2 Aim - The Aim of the scheme is to universalize quality School Education. It also aims to support States in universalizing access to School Education from classes Pre nursery (Pre-school) to class XII.

1.2.3 Objectives -The major objectives of the programme are:

(i) Provision of quality education and enhancing learning outcomes of students;

(ii) Bridging Social and Gender Gaps in School Education;

(iii) Ensuring equity and inclusion at all levels of school education;

(iv) Ensuring minimum standards in schooling provisions;

(v) Promoting vocationalization of education

(vi) Support States in implementation of Right of Children to Free and Compulsory Education (RTE) Act, 2009;

(vii) Strengthening and up-gradation of State Councils for Educational Research and Training (SCERTs)/State Institutes of Education and District Institutes for Education and Training (DIET)s as a nodal agency for teacher training * Note : Pre- Nursery or Pre-school or Pre- primary are deemed synonyms 5

1.2.4 The main outcomes of the Scheme are envisaged as Universal Access, Equity and Quality, promoting Vocationalisation of Education and strengthening of Teacher Education Institutions (TEIs). The Scheme will help to improve the Transition rates across the various levels of school Education and aid in promoting universal access to Children to complete School Education. It would also enable in reaping the benefits of Technology and widening the access to good quality education across all States and UTs and across all sections of the society.

Output-Outcome Framework of the Scheme Elementary Indicators Output/Deliverables 2015-16 (Baseline data) 2018-19 2019-20 Net Enrolment Ratio (NER) 89.0% 93.0% 96.0% Gender Parity Index (GPI) 0.94 0.96 0.97 Annual Drop-out Rate 4.1% 3.6% 3.5% Transition Rate from primary to upper primary level

90.14% 93.0% 95.0% Retention Rate at elementary level

70.70% 75.0% 80% Number of Out of School children 60 lakh 45 lakh 35 lakh Increase in the % of children who achieve subject-wise gradewise Learning Outcomes.

To be set after analysis of the baseline NAS conducted in November, 2017 Secondary Indicators Output/Deliverables 2015-16 (Baseline data) 2018-19 2019-20 Gross Enrollment Ratio (GER) 80.01% 83.30% 84.98% Gross Access Ratio (GAR) 86.48% 89.92% 91.13% Annual Average Dropout Rate 17.06 14.06 13.06 Transition Rate (Class VIII to IX)

90.62% 94.50% 95.00% Retention Rate at secondary level

57.4% 60.0% 62.00% Gender Gap in enrolment 5 4 4 Increase in the % of children who achieve the desired achievement levels.

To be set after analysis of the baseline NAS conducted in February, 2018 Senior Secondary Indicators Output/Deliverables Gross Enrollment Ratio (GER) 56.16% 62% 64% Transition Rate (Class X to XI) 69.04% 74% 76% Gender Gap in enrolment 5% 4% 4% 6 Output-Outcome Framework of the Scheme Teacher Education Sl.

No.

Action Outcome/Deliverables

1. Strengthening of SCERTs i. Re-structured SCERT ii. Allotted funds utilized for in-service teacher training

2. Strengthening of DIETs Number of States and UTs who have adopted this Guideline

3. Innovative Pedagogy Use of innovative pedagogic methods in In-service teachers training

4. Creation, curation and translation of Digital Learning Material Development of Digital Materials on specific subjects to be used for in-service teacher training

6. Training of Teacher Educators 25% Teacher Educators per year

7. Training of In-service Teachers 30% In-service Teachers per year

8. Establishment of new DIETs 15 new DIETs per year for 2018-19 and 2019-20

9. ICT in in-service training Number of in-service teachers training conducted on use of ICT and use of digital resource materials.

1.3 Interventions: The major interventions under the scheme are:

I. Universal Access

(i) Sanction of new schools which would include new primary schools, upgradation of primary school to upper primary schools, up-gradation of upper primary school to secondary schools and up-gradation of secondary schools to higher secondary schools. This would also include sanction of new composite schools i.e. from Classes-I to XII and buildings for building-less schools.

(ii) Residential Schools and Hostels in inaccessible areas ranging from Classes I-XII.

(iii) Strengthening of existing residential schools and facilities for classes I- XII.

(iv) Transport and Escort facility to children in Classes I-VIII and for Children with Special Needs (CWSN).

(v) Strengthening of existing infrastructure and major & minor repair of schools from classes I-XII.

(vi) Residential quarters for teachers, especially female teachers in remote/difficult areas.

(vii) Support for out of school children 7 II. Gender and Equity

(i) The existing Kasturba Gandhi Balika Vidyalayas (KGBVs) at upper primary level and Girls Hostels at secondary level would be extended to provide residential and schooling facilities upto Class-XII, so as to have at-least one residential school for girls upto class XII in every educationally backward block.

(ii) Physical/Self Defence Training for girls

(iii) Other interventions like Environment Building Programme, Inspiration/ Motivation Camp for SC/ST children, enrolment/retention drives etc. at all levels in classes I-XII III. Inclusive Education

(i) Supporting Children with Special Needs (CWSN) in schools at all levels in Classes-I to XII.

(ii) Supporting home based education for CWSN who are unable to go to schools. This will be for education in Classes-I to XII.

IV. Quality

(i) Conduct student assessments at National or State level

(ii) Research studies on factors effecting access, equity and quality.

(iii) Composite school grants including maintenance grant, school grant, and library grant etc.

(iv) Project based proposals for quality improvement

(v) Guidance and counselling services and aptitude testing.

(vi) Learning Enhancement Programmes/remedial teaching programmes to achieve Learning Outcomes

(vii) Bridge courses for Out of School Children.

(viii) Support for Science, Technology, and Engineering and Mathematics (STEM) education such as Rashtriya Avishkar Abhiyan.

(ix) Support for early reading initiatives like Padhe Bharat Badhe Bharat.

V. Financial support for Teacher Salary

(i) Support for teachers in upgraded schools.

(ii) Support of special teachers in schools/clusters of schools.

VI. Innovation

(i) Innovation for promoting access, equity, quality and gender equality.

VII. Digital initiatives

(i) Sanction of new ICT projects in schools which would include hardware/software support.

(ii) Development of E-content and digital resources 8

(iii) Central initiatives to promote use of digital technology such as Shala Kosh, Diksha etc.

(iv) Creation of digital learning material, innovative pedagogy and capacity building, etc.

VIII. RTE Entitlements

(i) Free Uniforms.

(ii) Free Textbooks.

(iii) Re-imbursement towards expenditure incurred for 25% of admissions under Section 12(1)(c) of the RTE Act, 2009.

(iv) Special training for age appropriate admission of out of school children.

(v) Community Mobilisation

(a) Section 21 of the RTE Act, 2009, provides for a School Management Committee (SMC) in every school and envisages dynamic role of the community in effective monitoring of schools. States and UTs have been advised to have a single SMC in a composite school. This intervention will support training of SDMC, SMC and PRI members for carrying out the roles and responsibilities envisaged in the RTE Act, 2009.

(b) In addition activities for creating awareness about RTE Act, 2009 and strengthening the role of community and monitoring the schools at all levels will also be supported.

IX. Pre-primary Education

(i) Support to States for Pre-primary level for training, co-location of Anganwadis in Primary Schools and curriculum development in convergence with Ministry/Department of Women and Child Development

(ii) Support States in their efforts to set up pre-primary schools X. Vocational Education

(i) Vocational Education as an integral part of general education at Secondary and Higher Secondary level to enhance the employability of youth.

(ii) Introduction of Vocational subjects at secondary level which would include Tools, Equipment and manpower costs.

(iii) Exposure to vocational skills at upper primary level XI. Sports and Physical Education

(i) Increased convergence with Department of Sports.

(ii) Provision of sports and physical education facilities in all schools.

XII. National Component (1% of total budget)

(i) Support to National Institutions like NIEPA, NCERT, NCPCR, NIC etc.

for National level programmes related to quality of education, assessments, data management, digital education.

(ii) Technical Support Group for monitoring of the Scheme

(iii) Establishment of National Institute of Teacher Education XIII. Infrastructure Development Construction of schools, additional classrooms, strengthening of BRCs and CRCs, toilets and drinking water facilities, Science and Math labs, major repairs to school buildings, etc.

XIV. Strengthening of Teacher Education and Training

(i) Strengthening of State Councils of Educational Research and Training (SCERTs); District Institutes of Education and Training (DIETs); Block Institutes of Teacher Education (BITEs);Colleges of Teacher Education (CTEs) and Institutes of Advanced Studies in Education (IASEs)

(ii) Support for Salary of Teacher Educators/ Academic Faculty working in TEIs.

(iii) Teacher Training and professional development including in-service, preservice, induction and refresher training to be provided under the aegis of SCERTs and DIETs etc.

(iv) Leadership Training for Principals/Head Teachers

(v) Support for Infrastructure Development

(vi) Programme and activities in Teacher Education Institutions (TEIs)

(vii) Establishment of Special Cells

(viii) Establishment of New DIETs in new districts Setting-up of National Institute for Teacher Education.

(ix) Development of National Teachers Platform(DIKSHA)

(x) Technology support to TEIs

(xi) Residential Training Programmes of Teacher Educators, DIET Principals, Head Masters and Master Trainers

(xii) Academic support of Block Resource Centres (BRC) and Cluster Resource Centres (CRC) to schools at all levels.

XV. Programme Management

1.4 Implementation Structure: At the national level, the composition of Governing Council would be as mentioned at Appendix 1. The composition of Project Approval Board has been incorporated at Appendix 2. In case of States/UTs, the composition of Governing Council/Body and Executive Committee would be as far as possible be as at Appendix 3 and Appendix 4 respectively.

1.5 Financial Management: Financial management brings together planning, budgeting, accounting, financial reporting, internal control, audit, procurement, disbursement and the physical performance of the Scheme with the aim of managing Scheme resources properly and achieving the scheme’s objectives.

Sound financial management is a critical input for decision making and for Scheme success. Timely and relevant financial information provides a basis for 10 better decisions, thus speeding up the physical progress of the Scheme and the availability of funds and reducing delays and bottlenecks.

1.6 The Financial Management system should produce timely, relevant and reliable financial information that would allow Scheme managers and State/Central governments to plan and implement the scheme, monitor compliance with agreed procedures, and appraise progress toward its objectives. To meet these requirements, the system should include the following features:

(a) Planning – A system to identify the needs to achieve the Scheme objectives, evolve strategies and approaches to address them and take up suitable interventions and activities.

(b) Budgeting – A system to identify the short-term activities necessary to achieve the Scheme objectives and express these activities in financial terms.

(d) Funds flow arrangements – Appropriate arrangements to receive funds from all sources and disburse them to the agencies involved in Scheme implementation.

(e) Reporting – A system that would produce sufficient detailed information to manage the Scheme, and provide each level of scheme management with regular consolidated financial Statements for decision making.

(f) Internal control – Arrangements including internal audit, to provide reasonable assurance that (i) operations are being conducted effectively and efficiently and in accordance with financial norms (ii) financial and operational reporting are reliable; (iii) laws and regulations are being complied with; and (iv) assets and records are maintained.

(g) External audit- Arrangements for conducting annual external audit of the Scheme on Terms of Reference agreed upon with the Government of India, through a statutory audit. Audit through Comptroller and Auditor General of India is also envisaged in terms of the provisions of Comptroller and Auditor General of India (Duties, Powers and Conditions of Service) Act, 1971 as amended from time to time.

(h) Procurement – A system to carry out procurement of goods, works and services keeping in mind the considerations of economy, efficiency, transparency and equal opportunities to all.

(i) Financial procedures manual – A manual that sets forth the Scheme financial policies and procedures for the guidance of all personnel charged with financial responsibilities, with the aim of ensuring that Scheme resources are properly managed and safeguarded.

(j) Financial management staffing – Appropriately qualified financial management staff, including accounting and internal audit staff, with clearly defined roles and responsibilities to conduct financial management activities.

1.7 Applicability:

The manual is mandatory for all the activities under the Scheme at all levels of implementation. No deviation from the manual is permitted. While the provisions outlined in this Manual are mandatory, the State Implementing Society shall formulate well-defined Financial Rules and Regulations including the delegation of financial powers for effective implementation. Rules, Regulations and procedures outlined in this document should be formally adopted by the Executive Committee and Financial Rules and Regulations framed in accordance with the provisions of this Manual.

Further, the Scheme Manual strictly follows the GFR 2017 and in case of any contradiction, GFR 2017 will prevail.

CHAPTER-2 PLANNING PROCESS AND FINANCIAL PLANNING

2.1 Planning may be termed as a continuous process that helps us to reach a particular goal or objective in the shortest and the best possible way. Plans are not static.

They look at progress of the previous years and adapt to change themselves to the current situation. Planning, therefore, helps to achieve better results within the limited resources.

2.2 Objectives of Planning: The main objective of the planning process is to provide an insight into various aspects of planning and provide assistance and guidance for the preparation of need based plans. It should be ensured that these provisions are strictly followed while preparing the plans.

Planning must:

 Take into account the local conditions of the area for which the plan is to be made;

 Help in expanding access to education;

 Be able to provide an effective strategy to retain enrolled students till completion of schooling;

 Help students graduate with the knowledge, skills, attitudes, and experiences needed to exercise their choices beyond secondary education, and  Ensure equity with respect to gender, CWSN, SCs, STs, OBCs and minority communities.

2.3 Steps in Planning:

The planning process shall be carried out through the following steps:

 Formation of core planning teams at district and school level.

 Training and orientation of these teams.

 Assessment of need for information and preparatory exercises for micro planning and household surveys.

 Collection of various data, undertaking surveys and baseline studies.

 Visits of core teams to habitations/schools, interaction with community and consultative meeting ensuring participatory planning.

 Draft District plan formulation by consolidating the habitation/school plans, costing as per norms and discussions in the consultative meetings.

 Appraisal of the District Plan at the state level and their consolidation to prepare the State Plans.

2.4 Perspective Plan and Annual Plan:

2.4.1 There would be a State component plan, both perspective and annual, for universalization of education within the stipulated time frame. The District level Plans should be consolidated at State level and furnished in the State component plan along with the analysis to show inter-district variations on various items.

2.4.2 The profile of the State should be so comprehensive so that it gives a clear picture of the State. It is necessary that the information contained in the State plans has adequately covered all the important aspects of the State.

2.4.3 Annual plans need to be seen as a complement to the Perspective Plans.

AWP&Bs should detail out for each year, in the context of the goals of the Perspective Plans, what is the progress and what are the future strategies.

Therefore, to prepare annual plan, it is necessary to know the Perspective Plans of the district well. District planning teams need to understand and discuss the Perspective Plans of their districts before planning for the AWP & B.

The Annual Work Plan should be realistic and correlate in financial and physical terms.

2.5 Methodology of Planning

2.5.1 Identification of Planning Teams: The selection of suitable persons for inclusion in the planning teams is perhaps the most crucial element in the plan formulation. Programme envisages constitution of core planning teams at village, block and district levels. The grassroots level team in each village/habitation has to provide wider representation to grassroots level structures including PRIs and VEC, community leaders, teachers and parents. The aim of constituting this team is to involve all the stakeholders in the education of the children. Similarly, there should be a core planning team at the block level. There should be a core team of dedicated persons at the district level to formulate the plans to be supported, if possible, by a larger team at the district level. This advisory body at the district level should have representatives of various Departments like - Education, Health, Public Works, Social Welfare, Women and Child Development, Tribal Welfare, PHED, NGOs, etc. This will ensure "convergence" and help remove bottlenecks, if any, not only in collection of information but also at the time of implementation.

It will be the responsibility of the core district team to develop the plans as per the procedure laid down in the Scheme framework by prioritising the various proposals emanating from various levels. At least one person each in the Core Team should be well acquainted with finance and procurement procedures, and in Government functioning especially in the field of education. Other members of the team should have an adequate knowledge of socio-educational scenario prevailing in the districts.

2.5.2 Participatory Planning Process: Scheme envisages a bottom-up approach of planning as opposed to the top-down approach, as it reflects the reality at the grassroots level. The planning process has to be participatory in nature, as planning not only creates a sense of ownership among the stakeholders but also creates awareness and helps in the capacity building of personnel at various 14 levels. The plans so developed should reflect local specificity and educational needs and aspirations of the people based on consultative meetings and interaction with the community and target groups. It is necessary that there should be documentation of the process of the preparation of habitation level plan as evidence of the fact that they have been prepared at the habitation level through participatory planning.

2.5.3 Interaction with community and target groups: The process of bottom-up planning will not only help the planning team to acquaint themselves with various problems, but will also provide various solutions. The commonality of problems across such meetings will help the planning teams to propose interventions accordingly. Such interactions with community and target groups not only provide an opportunity to be familiar with the problems of target groups and help in devising strategies to deal with these but also mould the opinions of communities with the help of the good offices of community leaders.

2.5.4 Consultative meetings: The consultative meetings with the officials at block and district levels would facilitate the core teams in formulating strategies to address the problems. These meetings would also help in bringing about “convergence” and establish linkages with various interventions proposed by different departments. As the responsibility of implementing the programme rests with the educational administration of the district, it is essential to involve them from the planning stage itself.

Documentation of consultative meetings and community interaction would enable the persons at the district and State levels as well as the appraisal teams to know about planning processes.

2.6 Educational profile

2.6.1 The objective of presenting the State education scenario is to undertake a diagnosis of the educational situation in the State, so the data presented in this section should aim at understanding the educational scenario and present the strengths and weaknesses as well as problems and constraints of the State with regard to all stages of education.

2.6.2 The State educational profile section should contain write-ups on (i) educational administration in the state; (ii) educational facilities at various levels; (iii) State and centrally sponsored schemes implemented in the state; (iv) details of externally funded schemes; (v) District Institute of Education and Training; (vi) problems and issues of school education in the state.

2.6.3 The presentation of education scenario in the state should contain information on the following items for proper diagnosis of the educational situation:

(i) District-wise number of schools/sections for education.

(ii) District-wise access position on education in the state.

(iii) District-wise number of teachers in the schools with the following categorization:

(a) Trained/untrained teachers

(b) Male/female teachers

(d) Teacher-pupil ratio

(e) Number of sanctioned posts and vacant posts (for rationalization and requirement of additional teachers)

(iv) District-wise Enrolment at schools in the state

(a) Grade-wise enrolment

(b) Enrolment by gender and social categories i.e. boys, girls, S.C., S.T.

etc.

(v) District-wise dropout, repetition and transition rates disaggregated as per levels of education and for boys, girls, SC, ST. etc.

2.7 Mode of Submission of Plans: AWP&B will be submitted online through Project Monitoring System (PMS) by respective States/UTs. Each State/UT will enter the proposed Budget of each activity under various components online.

States/UTs to ensure that uploaded AWP&B along with the other supporting documents are duly signed.

2.8 Budgeting: Preparation of proper budget plays an important role in timely implementation of any project. Budgeting involves identifying specific tasks and objectives of the project to be achieved in a time frame and express these activities in financial terms. Budgeting without planning or planning without budget estimation has no meaning. So, planning and budgeting are interrelated with each other.

2.8.1 Each district shall prepare an Annual Work Plan of action indicating, inter-alia, the physical targets and budgetary estimates in accordance with the approved pattern of assistance under the scheme covering all aspects of the project activities for the period from April to March each year.

2.8.2 The budget proposals under Scheme has to be prepared in the form of AWP&B, covering all the interventions specified in the Scheme norms. The AWP&B proposals have to be in two parts, the plan for the current financial year (fresh Proposal) and the balance of the approved activities proposed to be carried over to the current year from the previous year.

2.8.3 The Costing sheet / Budget for AWP&B are to be prepared online through Project Monitoring System (PMS) for all activities under various components of Scheme.

2.9 Progress Overview: Since AWP&B proposals are part of a continuing programme they have to be based on progress made as well as the goals that remain to be achieved. Therefore, a progress over view of each intervention under all components of Scheme is extremely important. The activity wise progress overview includes the progress made during the previous year, which is a tool for the district to understand its strategies, the positive and negative aspects that will enable the district to plan better for the forthcoming year. The progress may be submitted online through Project Monitoring System (PMS) on monthly basis under various components of Scheme.

2.10 Outlay Saved/Spill Over: In a particular year, if an allocation approved is not spent fully, the same becomes outlay saved. Normally, outlay saved under nonrecurring heads for preceding year is taken as spill over activities in the subsequent year. Outlay Saved allows a State to continue activities of nonrecurring nature such as construction of new schools, strengthening of existing schools (civil works), construction of Girls Hostel, construction of Workshops/Laboratory under Vocational Education, etc., which could not be completed during the year. Every year, each State needs to prepare an outlay saved/spill over plan along with the AWP&B and accordingly grant of fresh civil works would be considered taking into account progress of works in the previous years.

2.11 Fresh Proposal: To achieve the targets set by each district, a certain set of strategies / interventions are planned. These are reflected in the budget sheet with details like unit cost, physical targets and the budget estimate under the head of fresh proposal.

2.12 Total Proposal / Allocation: In a particular year, the total allocation for the State is sum of fresh proposal/allocation and Spill Over budget.

Total Proposal/Allocation of AWP&B= Fresh Proposal+ Spill Over

2.13 Budgeting under different Components:

2.13.1 The present manual should be read with:

(i) The Scheme framework for implementation;

(ii) Planning and Appraisal Manual for Education

(iii) Manuals / guidelines/ frameworks for different functional areas brought out from time to time; and

(iv) Policy decisions taken at Project Approval Board meetings from time to time. All manuals and guidelines under the Scheme are available on mhrd.gov.in.

2.13.2 States/UTs to Plan their Budgets, activity wise, based on the activities prescribed from time to time under various components of Scheme.

2.14 Convergence:

Planner should look into different sources of funds that may be utilised to fund different strategies planned for school. Before budget is prepared for the Scheme, a detailed convergence plan should be prepared. Activities which could be funded from other sources may be budgeted under the scheme. Different sources of funds that may be available from different departments of the State government, different schemes run by State and Central government, public-private partnership opportunities, corporate social responsibility initiatives, MP’s / MLA’s funds etc.

Dovetailing of funds should be encouraged. Budgeting process should indicate the amount of extra funds for secondary schools coming from other schemes of the Central and the State government.

CHAPTER-3 Financial Management, Fund Flow & Reporting

3.1 Financial Management Allocation of Resources:

Budget allocation to the States and UTs under the Scheme would be made considering the annual budget allocation for the scheme at central level and the viable proposals received from the States and UTs as per norms. The State Plans will be appraised and placed before Project Approval Board for approval of State’s target along with the budget for that year. The budget allocation to States/UTs would mainly depend on all these factors:

(i) Commitment from the State Government with regard to the State Plan, its institutional pace and financial share;

(ii) Performance of the State in previous years;

(iii) Reports of supervision teams regarding the quality of programme implementation;

(iv) Availability of financial resources in a particular year.

(v) Districts with huge gaps to get priority

(vi) Non recurring fund allocation would be estimated on the basis of Enrolment in Government Schools.

(vii) Performance of the States/UTs on learning outcomes and steps taken for improving the quality of education.

(viii) Preference in the interventions would be given to Educationally Backward Blocks (EBB), Border Areas and the Aspirational Districts identified by NITI Ayog, time to time and LWE Districts would also be considered.

3.2 Perspective Plans and Annual Work Plan and Budget

3.2.1 Each district has to prepare a Perspective Plan up to 2019–2020 based on the data collected through household survey through a micro planning exercise. Keeping the Perspective Plan in view, AWP&Bs will be prepared every year. There is a need each year to take stock of achievements as well as constraints and then plan ahead. It follows that annual planning is a step in the process of continuous assessment of the situation and identification of appropriate strategies and activities for achieving goals of the scheme.

3.2.2 Annual plans need to be seen as a complement to the Perspective Plans.

AWP&Bs detail out for each year, in the context of the goals of the Perspective Plans, what is the progress and what are the future strategies. To make annual plans therefore, it is necessary to know the Perspective Plans of the district well.

District planning teams need to understand and discuss the Perspective Plans of their districts before planning for the AWP&B. The AWP&B proposals are envisaged in two parts, the plan for the current financial year and the progress 19 overview of the previous year including the spill over activities proposed to be carried over to the current year.

3.2.3 District Plan Proposals covering all the interventions specified in the norms of Scheme would be submitted to the concerned State implementing society (SIS).

The State Implementing Society would consolidate all district Perspective Plans as well as Annual plans and forward the consolidated State Plan to the National Mission after getting approval of the Executive committees. The Plans would be submitted online along with the e-costing on Project Monitoring System (PMS).

3.2.4 Costing of AWP&B for the interventions, its progress overview, spill over of the previous year, physical and financial target proposed, can be generated from the Project Monitoring System (PMS).

3.2.5 The Technical Support Group of National Mission will appraise the Plans. The Project Approval Board (PAB) of the National Mission will approve the Annual Work Plan & Budget (AWP&B) on the basis of the Proposal of the State Government, Appraisal Report, the availability of Central Plan funds, and the commitment of the State government regarding financial resources. The Central Government will release the funds to the State Government for further release to the State Implementation Society, alongwith the State share as per prevailing sharing pattern.

3.3 Preparation of Perspective Plans and Annual Work Plan and Budget

3.3.1 The scheme Framework envisages financial norms under various interventions.

While proposing outlays under various interventions in the plans, these financial norms should be strictly adhered to. Upper limit for unit costs for most of the interventions have been prescribed in the financial norms, and it should be ensured that outlays proposed for each intervention are based on these prescribed unit costs. The States/UTs can priorities the interventions as per their requirements and adjust the unit costs also accordingly within the overall ceiling.

3.3.2 Outlays proposed under each intervention are to be supported by relevant data to determine the physical targets. It should therefore be ensured that relevant data in support of the physical targets for each intervention is provided in the plans.

3.3.3 The State/UT Governments to ensure that the Central funds are transferred to the SIS within fifteen days from the date of receipt of funds. Each State/UT is also required to ensure that the corresponding State share is released within 30 days from the release of central share, as per the approved sharing pattern. The States would also ensure that the funds allocated to Scheme would not be used for any other purposes under any circumstances.

3.4 Procedure for Release of Funds

3.4.1. It would be the endeavor to complete the appraisal and approval of Plans in time for the first installment, to meet the proposed expenditure for the first six months, to be released in the 1st quarter. However, it will depend upon the preparation of annual plan proposal by the State Governments/UTs and holding of the PAB Meetings.

Government of India would release adhoc grant during the month of April-May upto 25% of the expenditure incurred under the Scheme against recurring activities of the previous year. However, the amount would be released after adjusting unspent balance of recurring grant of the previous year. The States/UTs may utilize the unspent balance of previous year for the recurring activities approved during the current year.

3.4.2 There would be two installments each year and the adhoc release would be considered as part of the first installment. First installment would cater to the expenditure from April to September and the second installment for expenditure from October to March.

3.4.3. First installment for recurring grant would constitute upto 75% of the total amount sanctioned for the year. The First installment would be released after receipt of the Utilisation Certificates on provisional basis for the preceding year (proforma at Annexure-I). For releases in excess of 75% of total amount sanctioned (recurring grant) in the subsequent financial year shall be done only after the Utilisation Certificate and the annual audited statement relating to the preceding year are submitted to the satisfaction of the Ministry. Monthly progress report and previous year expenditure statement should be submitted online on Project Monitoring System (PMS).

3.4.4 In case of non-recurring grants, the sanctioned funds would be released after receipt of expenditure statement commensurate to the physical progress made upto last month. First installment for non-recurring grant would constitute upto 50% of the total amount sanctioned for the year. The First installment would be released after receipt of the Utilisation Certificates on provisional basis for the preceding year (proforma at Annexure-II). However, the release would depend upon the physical progress of civil works sanctioned in previous financial years and the availability of unspent balance. Also, priority would be given for completion of works in progress than starting of new works. In this regard, detailed activity wise Physical progress and expenditure Statement would be submitted online through PMS by the respective States/UTs. After the period of 12 months from the preceding year, if the Utilisation certificate is not received, there shall be no release of funds, till receipt of the annual audited statement and Utilization Certificates.

3.4.5 The Expenditure Statement from school/SMDC/SMC for all the expenditure incurred till 31st March should be submitted to their respective DPOs within 1 month of closure of the financial year. On the same line, the DPOs shall have to 21 submit the expenditure Statement based on the expenditure statement received from SMDC/SMC or other fund receiving agencies within 15 days of receipts of such certificates.

3.4.6 After utilizing at least 50 per cent of the funds released in the first installment of a financial year and after the approval of Executive Committee of the SIS, the State Implementing Society may apply to the Ministry of Human Resource Development for the second installment of the financial year under intimation to the State Government. The tranche release arrangements will be as per the Table- 1 below. The release will be subject to the following conditions:

(i) Submission of expenditure statement showing that at least 50 per cent of funds/resources already released have been utilized at the time of submission of the proposal for the second instalment in a financial year.

(ii) Submission of certificate regarding the release and receipt of the State Share against the amount of the Central funds released so far. This must be accompanied with a copy of the order sanctioning the State share.

(iii) Any other condition indicated from time to time.

3.4.7 Unspent balance of funds under central share of Recurring Grant lying with the implementing agencies at the end of the financial year, if any, shall be carried over to the next financial year for utilization against recurring activities sanctioned by PAB during the next year. The carried forward amount will be adjusted against the Central share of recurring grants due for the next year.

3.4.8 With regard to the reimbursement claims against recurring grant, The General Financial Rule (GFR) No. 230 (15) provides that “Grants-in-aid may be sanctioned to meet the bona fide expenditure incurred not earlier than two year prior to the date of issue of the sanction.” Therefore, no reimbursement of recurring expenditure older than two years will be funded by the Central Government. As PAB considers fresh proposals and spill over both in Annual Work Plan & Budget, reimbursement would be provided subject to approval of PAB at the time of consideration of AWP&B.

Table 1: Tranche Release Arrangements Tranche Timing Conditions Precedent

1. Release of Adhoc Grant (Recurring):

Adhoc release upto 25% of the expenditure incurred under the Scheme against recurring activities of the previous year after adjusting unspent balance of GoI share (Recurring) available with the State/UT as on 31st March.

The States/UTs may utilize the unspent balance of GOI share (recurring) of previous Financial Year for the approved recurring activities of subsequent financial year.

Beginning of financial year There would be no conditions precedent to the adhoc releases. However, the expenditure incurred during the previous Financial Year and unspent balance as on 31st March be uploaded on PMS latest by 10th of the April of the next Financial year.

22 Tranche Timing Conditions Precedent Release of First Installment (A) Recurring Grant: First installment would be considered upto 75% depending upon the availability of the central budget and the requirements of the States However, the adhoc releases and closing balance of GoI share of the previous FY as on 31st March would be adjusted in the first installment.

After PAB Approval Regarding release of first instalment, the following are conditions precedent Proposal for release of first installment to be received from State Government  Approval of Annual Plans by PAB;

 Transfer of GOI share of previous year to SIS from State Treasury;

 Release of commensurate State share for previous year; and release of full GOI share of ad-hoc release of Central Government to SIS along with matching State share by State Government.

 Submission of provisional UC for previous year. The utilization certificate should be duly countersigned by the Administrative Secretary/ Finance Secretary  Confirmation of state towards provisions of matching State share in the State Budget  Provisional Expenditure Statement of the current year  Statement of Outstanding advances Accrued ,adjusted and pending till date (B) Non-Recurring Grant: First installment would constitute upto 50% of the grant sanctioned during the Financial Year (FY).

However, the closing balance of GoI share of the previous FY as on 31st March would be adjusted in the first installment.

After PAB Approval Regarding release of first installment, the following are conditions precedent  Proposal for release of first installment to be received from State Government.

 Physical Progress report for previous year (upto 31st March)  Approval of Annual Plans by PAB  Release of GOI share of previous year to SIS from Treasury and commensurate State share for previous year and release of full GOI share of ad-hoc release of Central Government to SIS along with matching State share by State Government. .

 Submission of provisional UC for previous year. The utilization certificate should be duly countersigned by the Administrative Secretary/ Finance Secretary 23 Tranche Timing Conditions Precedent  Confirmation of state towards provisions of matching State share in the State Budget  Provisional Expenditure Statement of the current year  Statement of Outstanding advances accrued adjusted and pending till date Release of Second Installment (A) Recurring Grant: Balance of funds eligible for release after adjusting the adhoc releases, first instalment releases and unspent balance of previous FY.

Regarding release of Second installment, the following are conditions precedent:

Proposal for release of second installment to be received from State Government  Request letter from State Govt./UT for release of 2nd installment.

 At least 50% utilisation of the cumulative fund available under GoI releases.

 Release of GOI share from previous installment to SIS from Treasury.

 Release of commensurate State share release of full GOI share of 1st installment release of Central Government share to SIS along with matching State share to SIS by State Government.

 Submission of Annual report of one year prior to previous financial year.

 Submission of Audit report of Previous FY- alongwith Separate audited UC for Recurring (General Head) is mandatory The utilization certificate should be duly countersigned by the Administrative Secretary/ Finance Secretary.

 Submission of provisional UC upto previous month of the concerned year.

 Expenditure statement of the current FY.

 Statement of Outstanding advances accrued adjusted and pending till date.

(B) Non-Recurring Grant: Balance of funds eligible for release after adjusting the first installment release and unspent balance of previous FY.

Regarding release of Second installment, the following are conditions precedent:

 Request letter from State Govt./UT for release of 2nd installment.

24 Tranche Timing Conditions Precedent  At least 50% utilisation of the cumulative fund available under GoI releases.

 Release of GOI share from previous installment to SIS from Treasury.

 Release of commensurate State share.

 Submission of provisional UC upto previous month of the concerned current year and Expenditure statement of the previous releases during the FY.

 Submission of Annual report of one year prior to previous financial year.

 Submission of Audit report of Previous FY alongwith Separate audited UC for Non-Recurring (Capital Head) is mandatory The utilization certificate should be duly countersigned by the Administrative Secretary/ Finance Secretary.

 Physical progress upto the preceding month of the month of submission of request for 2nd installment.

Apart from the above conditions precedent for release of Grants it may be noted that any provisions of GFR 2017, as amended from time to time may have be fully complied at the time of release of any installment as grant in aid.

3.5 State Government to State Implementing Society

3.5.1 The financial norms of the programme envisage that the participating State would contribute its agreed ratio of the programme cost within 30 days of the receipt of the central contribution as per the approved sharing arrangement. It would therefore be necessary to make suitable provision in its budget to facilitate the release of its share of programme cost to the State Implementing Society.

Similarly, now that central funds are routed through the State Treasury, it would be necessary to make suitable provision in the budget of the State Governments to facilitate release of Central share by the State Government to the State Implementing Society. The release of funds by the State Government to the State Implementing Society from out of provision in the State Government’s budget would also be deposited in the same joint signatory bank account of the Society in which the funds of the Government of India are deposited under the Scheme. Any unspent balance from out of the Central or State Government’s share of funds 25 shall be carried forward by the Society for utilization in the next financial year with the approval of the State Government. In case of delay in transfer of funds to State Implementing society further installments could be released only on transfer of GOI grants to SIS including proportionate state share by the State Govt. and Moreover, GFR 2017 would be invoked in case-to-case basis regarding penalty to be imposed.

3.5.2 The State Implementing Society shall open a joint signatory savings bank accounts with any Nationalised or Scheduled Commercial Banks. Funds would be transferred to district and schools level bank accounts from this account only.

Separate accounts/records for funds earmarked for SCSP and TSP plans be maintained by the States/UTs with the objective to monitor utilization of funds under SCSP and TSP Heads.

3.5.3 The expenditure from the State Implementing Society account for the financial year under different budget heads would be assigned on the basis of the final PAB approval.

3.5.4 The recurring grants such as annual school grant, shall be transferred directly to the school account immediately after the receipt of the first instalment by the State Implementation Society. The MMER for the district office should also be transferred from the first instalment.

3.5.5 Civil works at the school level would be approved by appropriate authority and information will be sent to the State Implementing Society. Funds would be transferred to the school electronically for full or part payment of completion of approved works from the State Scheme account.

3.5.6 Teacher training and other activities under the AWP&B carried out by district level office would be approved at the state level and funds would be transferred from the State Implementing Society account on receipt of the demand.

3.5.7 The Financial Management Information System would have an electronic repository where all budget heads from the school level upwards would be aggregated as per the AWP&B, and expenditure will be booked against them at the school, district and state levels.

For the accountability of transactions of funds under Scheme, registration of all the agencies should be done on Public Financial Management System (PFMS) at State/District and School/SMDC/SMC level. The State/UT should strive to adopt PFMS at the earliest and MHRD would provide capacity building if required.

3.6 Funding Pattern

3.6.1 The current fund sharing pattern for State governments and UTs with legislature is 60(Centre):40(State). In case of North Eastern States (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura) and the Himalayan States (Himachal Pradesh, J&K and Uttarakhand), sharing pattern between Centre and State would be 90(Centre):10(State). For Union Territories without legislature, 100% share will be given by the Centre. Any subsequent changes in this regard will be notified by MHRD from time to time.

3.6.2 Fund flow arrangement for various activities:

(a) Civil Works upto Rs. 30 lakh may be undertaken through SMCs/SMDCs GOI →State Govt.→ SIS → SMDC/SMC → Community or contractor Or GOI →State Govt.→ SIS → DPO → SMDC/SMC → Community or contractor

(b) Major Civil works beyond Rs. 30 lakh, could be executed through an external agency (which could be PWD or a State level agency or contractors at state level selected through competitive bidding).

GOI →State Govt. →SIS → DPO → External Agency Or GOI →State Govt. → SIS → External Agency For activities at school level which are contracted at State or district level, the SMDC/SMC should be provided a copy of the contract as well as copy of the work order in order to be able to monitor the works effectively. The feedback provided by the SMDC/SMC shall include (a) a confirmation that they have been provided with a copy of the contract; (b) a copy of the latest Measurement Book and whether it has been finished as per specifications; (c) comments on commencement and completion of the work; (d) shortcoming perceived by the SMDC/SMC in the work, if any. Except 1st instalment as advance, all further instalments will be released on the receipt of the written feedback from SMDC/SMC. Further, the fund flow mechanism will be effectively monitored through PFMS which includes intervention-wise details and there would be no possibility of diversion of funds.

3.7 Financial Reporting:

3.7.1 Project expenditure will be reported on monthly basis by State Implementation Society on PMS.

3.7.2 The reports to be prepared and submitted are summarized at Table 2 below.

Table 2: Type and Date of Reports for States/UTs S.

No.

Report Date on which to be sent Remarks

1. Monthly Financial Report By 5th of next month The Consolidated Financial Report of the States/UTs shall be uploaded on PMS on due date to GOI without fail. The reports of the districts not received by SIS on time would be excluded and will be included in the financial report of the next month. The timelines of submission would be monitored and entered in the evaluation sheet of state Finance in charge/TSG by the SIS.

Provisional UC to be submitted online through PMS.

2 Audited Statement of Accounts and Audit reports of SIS By1stNovember following the end of the relevant financial year The timelines of submission will be monitored and entered in the evaluation sheet of State Project Director by the SIS.

Action taken report on the deficiencies pointed out by the Audit to be submitted to the MHRD within a period of three months from the date of receipt of the report.

After submission of Audited Statement of Accounts, States/UTs should update the audited figures on PMS for the month of March.

3 Utilisation Certificate By1stNovember along with the Audited statements There would be separate Utilisation Certificate (UC) for the funds released under the head grant-in-aid and grant for creation of assets during a particular year.

4 Annual Report Till 30th Nov. A progress report will be submitted detailing the status of physical and financial progress as per the Annual Work Plan and audit report. The annual report should also detail the critical issues that should be addressed to ensure efficiency in fund flows and implementation of scheme in the State.

CHAPTER-4 ACCOUNTING

4.1 Complete accounts in respect of the monetary transactions of the State Implementation Society in the Headquarters as well as in the Subordinate Offices shall be maintained. However, the “Double Entry Method Based on Mercantile System” of accounting shall be followed under Scheme.

4.2 The following books of accounts and registers shall be maintained by the Society:

(a) Cash Book

(b) Ledger

(d) Register for Journal / Magazines / News Papers

(e) Register of Advances

(f) Register of Bank drafts received

(g) Cheque issue register

(h) Register of remittances made into the Bank

(i) Bank Pass Book/Bank statement

(j) Register of bank drafts dispatched

(k) Bill Register

(l) Establishment Register

(m) Stock Register

(i) Capital Goods

(ii) Non-consumable articles

(iii) Consumable articles

(n) Register of works

(o) Register of grants of advances to mobilizing agencies/NGOs/Voluntary Agencies

(p) Fixed Assets Register

(q) Register of Investments

(r) Classification accounts of the Project

(s) Monthly accounts of Receipts and Payments

(t) Temporary Advance Register

(i) staff

(ii) contractors/suppliers/VEC

(iii) TA/DA advance

(u) Despatch Register

(v) File Register

4.3 Any other books and accounts which may be considered necessary for the day to day working of the Society shall also be maintained with the approval of the State Project Director.

4.4 The Name of the district should be indicated against each entry in the cashbook for the purpose of preparation of district-wise accounts.

4.5 At the end of the month, the District-wise abstract should be prepared showing monthly expenditure in respect of each district.

4.6 A consolidated Register shall also be maintained indicating the progressive expenditure from month to month in respect of each district.

4.7 Monthly reporting of Physical progress and Component wise Expenditure may be done on the online portal of Project Monitoring System (PMS).

4.8 Ledgers and receipts / invoices should be maintained at all levels of expenditure.

4.9 Where VECs or other village organisations are receiving and utilizing funds, records shall be maintained there as well as at district level.

4.10 These records and receipts / invoices shall be available for inspection by the Auditors, State Implementing Society, State Government and Government of India.

4.11 Consolidated records of receipts and expenditures shall be kept at district and State levels.

4.12 The Society should maintain Register of Assets in the format given in Annexure- III for the assets acquired wholly or substantially out of Government of India grants and Stock Register separately for capital goods, consumable and nonconsumable articles and shall arrange for their physical verification at least once a year. These should be maintained at school, CRC, BRC, DPO and SPO levels as the case may be. The relevant abstract of Register of Assets should be appended to the annual statement of accounts submitted by the Society to the Government of India. The register of abstract shall contain progressive figure both stores and value.

4.13 The maintenance of accounts of the Programme should be governed by the principle that no expenditure is incurred by the Society which is repugnant to the objectives of the Programme and every item of expenditure which is incurred is in accordance with the prescribed procedures, and the canons of Financial Propriety.

4.14 In accordance with these Canons of Financial Propriety, it shall be the duty of each official of the SIS to ensure that:

(i) Every Government servant is expected to exercise the same vigilance in respect of expenditure incurred from Public Money as a person of ordinary prudence would exercise in respect of expenditure of his own money;

(ii) The expenditure should not be prima-facie more than the occasion demands;

(iii) No authority should exercise its powers of sanctioning expenditure to pass an order which will be directly or indirectly to its own advantage;

(iv) Public moneys should not be utilised for the benefit of particular persons or section of the people unless: - A claim for the amount could be enforced in a Court of Law, or The expenditure is in pursuance of a recognised policy or custom.

(v) The amount of allowances granted to meet expenditure of a particular type should be so regulated that the allowances are not on the whole a source of profit to the recipients.

4.15 It shall be the duty of the Accounts Wing in the State Society to ensure strict observance of these Accounting Principles.

4.16 It shall also be necessary for every Society to establish adequate and satisfactory Internal audit functions.

4.17 Any grant or portion thereof given by the Government of India or the State Government to the Society for a specific purpose shall not be re-appropriated, without the previous sanction of the granting authority to a purpose other than that for which it was originally approved.

4.18 Grant Received by the State Societies from State Government both Central and State share under the Scheme will be deposited in a Joint Signatory Savings Bank Account established by the State Implementing Society in any nationalised or scheduled bank.

4.19 The Executive Committee of the State Society would be empowered to open Joint Signatory Savings Bank Accounts in any nationalised or scheduled bank, authorise a Drawing and Disbursing Officer to operate the accounts and delegate financial functions to State, District, Block, Village and School levels.

4.20 In respect of releases by the State Societies to the districts, Joint Signatory Savings Bank Accounts would be opened in any nationalised or scheduled bank at the district level and in any such banks or Post offices at the block and village level.

4.21 Advances

(i) All funds released to the districts and sub-district level units are initially classified as advances and the same indicated as such in the books of accounts. These advances shall be adjusted based on the expenditure Statements/utilisation certificates received in State Implementation Society of having spent the funds. Advances, if not actually spent for which accounts have not been settled, should be shown as advances and not as expenditure. Similar procedure shall be followed for funds released at district and sub-district level.

(ii) The adjustment of advances should be included in the financial year to which the grant relates.

(iii) The advances released to SMDCs/SMCs for undertaking Non Recurring activities which remains unspent at the end of the year shall be carried over to next year as spillover activities/unspent balance based on the approval of the PAB.

4.22 Advance Register

(i) All advances are to be entered in the advance register to be maintained as per specimen given in Annexure-IV.

(ii) The adjustment of the advances is also to be entered promptly in this register. It should be ensured that no personal advance is outstanding for more than one month. In case, adjustment claims for personal advances are not submitted in time, penal action including charging of interest should be taken.

(iii) A Statement showing outstanding advances of previous years will be submitted with the audited accounts as per format at Annexure-V

4.23 Account Head The Account head and account code should be similar to the Budget Head and Budget Code. This should correspond to the interventions and the norm number prescribed in the framework. If any sub-head or sub-code is considered necessary, the same shall be operated accordingly.

4.24 Cash Book

(i) Cash book is the principal record of all money transactions which take place every day and all other registers are subsidiary to it.

(ii) Cash book should be maintained under Double Entry System. However, as an exception, single entry system shall be followed at Cluster and VEC/School level.

(iii) It has two sides, “Receipts” and “Payments”. The amount column in each side is sub divided into “Cash” and “Bank”.

(iv) Separate cashbook should be maintained at State/District/Block level for each financial year.

(v) Each entry of receipt and expenditure should be descriptive but brief in nature.

(vi) Each voucher should be assigned a serial number and Ledger Folio number, which should be noted against each entry in the cashbook.

(vii) Each entry in the cashbook should be attested by the Head of Office/Drawing and Disbursing Officer (DDO).

(viii) Cash book should be closed daily and total cash balance struck and attested by the Head of Office / DDO after verification of the totals.

(ix) All cash/cheques/Demand Drafts etc. received should be deposited into the bank as far as possible on the same day itself or next day positively so as to avoid cash in transit for long periods. If any cash is retained on hand that should be verified physically by the Head of Office/DDO and recorded in the cash book and the cash in hand deposited into bank next day itself.

(x) When cash/cheque/DD is paid into the bank, the counterfoils of the payin-slip should be verified with the cashbook by the Head of Office/DDO.

(xi) Over writing should be avoided and corrections, if any, should be attested by the Head of Office/DDO under his dated initial.

(xii) Crossed Account Payee cheque alone should be issued to third parties/firms etc.

(xiii) The issue of bearer cheques should be avoided as far as possible.

(xiv) If no transactions have taken place in a day/s the entry “No transaction” has to be noted in the cash book on that day/s and balances carried over to next day and attested by the Head of Office / DDO.

(xv) When payments are made through cheque, the number of the cheque should invariably be noted in the cash book for cross checking.

(xvi) During the absence of Head of Office/DDO, the responsibility of attesting the entries in the cash book shall be entrusted to a sub-ordinate officer but on his return the Head of Office/DDO should satisfy himself that there is no irregularity and in token of this check, he should sign the cash book immediately on return.

(xvii) In case computerized accounting software is in use, the cash book need not be maintained manually. However, print out of the daily cash transactions should be taken and pasted in cash book after attesting each entry by the Head of Office/DDO.

4.25 Verification of cash balance

4.25.1 The contents of the cash chest / cash box should be counted by the Head of Office /DDO or the senior most official in-charge at least once in a month and the account compared with the cash book balance.

4.25.2 The result of verification should be recorded in cash book each time as under:

“Cash balance verified by me today and found to be Rs. …………. (in figures) (Rupees ……………………………(in words) on actual count as correct” Date ………………..

Signature (Designation of the Officer)

4.25.3 In case the cash balance is not found to be as per cash book, the fact should be recorded in the cash book and report submitted to the next higher authority unless the error can be set right at once.

4.26 Correction of errors

4.26.1 If any item of receipts or cheques belonging to one head has been wrongly classified under another head, the error shall be corrected in the following manner: - 33

(a) If the error is discovered before the close of the day’s accounts, necessary correction should be made in the original entry before the accounts of the day are closed.

(b) If the error is discovered after the close of the day’s accounts but before 31st March, the correction should take the form of a fresh entry in the cashbook.

Note: Errors affecting only classification i.e. receipts or payment on one side of the cash book without any change in monetary value shall be corrected in the manner prescribed at (a) above, if the same has been detected before the close of the month’s account.

(c) If the error is detected after the account for March has been closed, the correction should be carried out through a journal entry.

(d) In all such cases, the correcting entry should be supported by a transfer entry memo approved by the Head of the office and a note of correction shall be made against the original entry in red ink.

4.27 Journal Journal is one of the important account books. Its use is restricted to only recording adjustment entries other than cash transactions. Vouchers shall support each adjustment entry passed through a Journal. Brief narration of each entry shall be given in the voucher and it shall be signed by the Head of Office. The Accountant will check each entry of the Journals with the vouchers and put dated initials against the entries checked.

4.28 Ledger

(i) The Ledger is a register in which all transactions recorded in the cashbook or Journal shall be classified under different heads of accounts or objects of expenditure or any sub-unit thereof.

(ii) The Ledger should be kept in the prescribed form. Separate pages are to be opened for each item of expenditure.

(iii) The Ledger accounts shall be arranged and grouped in such a manner that the desired information is promptly secured.

(iv) Combined Ledger accounts can be maintained for various detailed heads.

The contingent Register may be maintained in such a manner that it is used as Ledger for recording expenditure under miscellaneous items.

(v) Every Ledger account is divided into two sides, the left-hand side being the “debit side” and the right hand side the “credit side”.

(vi) All items of debits and credits of the cashbook and Journal shall be posted on the same day in the respective Ledger account.

(vii) Daily totals shall invariably be given and progressive totals shown wherever necessary.

(viii) Bank account shall be posted from the daily totals of cheques issued and challans / remittances made into the Bank.

(ix) After the Ledger accounts have been written up and completed in respect of cash and adjustment items, the daily total of each Ledger account should be carried into the appropriate classified account and the classified account should then be totaled up and from the gross total the amount of adjustment should be deducted to bring out the net totals of receipts and payments as per cash book.

(x) All the Ledger accounts shall be closed at the end of the month. Totals shall also be struck in the classified account.

(xi) Monthly totals of various Ledger accounts shall then be tallied with the totals of classified abstract and discrepancy, if any, rectified and reconciled.

(xii) Monthly account of receipts and payments shall be prepared immediately after closing of the accounts for the month.

4.29 Bank Reconciliation

(i) Monthly bank reconciliation should be carried out on a regular basis.

(ii) Bank Pass Book should be sent regularly to the bank for making up-to-date entries of credit and debit in a month.

(iii) In case Bank Pass Book is not issued, monthly Bank Statement should be obtained from the Bank regularly.

(iv) Entries shown in the passbook / Bank Statement will be tallied monthly with the entries in the cash book.

(v) Any discrepancy will be rectified and difference explained in the Bank Reconciliation Statement in the manner explained below:

Balance as per Cash Book …………………………… .

Add:

(i) Cheque issued but not cashed …………………………… .

(ii) Credit entries made in the bank but not shown in the cash book …………………………… .

Total …………………………… .

Less:

(i) Amount sent to Bank but not credited in Bank Account …………………………… .

(ii) Bank charges debited in the bank account but not accounted for in the cash book …………………………… .

Total …………………………… .

Balance as per Pass Book/Bank Statement …………………………… .

4.30 Staffing Structure

4.30.1 An indicative staffing structure at State level and district level of Finance & Accounts and Internal Audit is given below: - Name of the Post No. of Posts at State level (SPO) No. of Posts at District level (DPO) Qualification and Experience Finance and Accounts Controller Finance 1 - Preferably on deputation from Finance and Accounts department with sufficient accounting background. In case, suitable candidate is not available on deputation basis, qualified and experienced candidates may be considered on contract basis.

Finance and Accounts Officer 1 1 Preferably on deputation from Finance and Accounts department with sufficient accounting background. In case, suitable candidate is not available on deputation basis, qualified and experienced candidates may be considered on contract basis.

Senior Accountant 3 2 Junior Accountant Deputy Accountant or Sr. Accounts Clerk Cashier 1 1 Preferably on deputation from Finance and Accounts department with sufficient accounting background and knowledge of cash management. In case, suitable candidate is not available on deputation basis, qualified and experienced candidates may be considered on contract basis.

Internal Audit Audit Officer 1 - Preferably on deputation from Audit department with sufficient auditing background. In case, suitable candidate is not available on deputation basis, qualified and experienced candidates may be considered on contract basis.

Sr. Auditor 2 -

4.30.2 Although the above staff structure is indicative, in small States and districts the requirement of staff may be suitably reduced to the extent required. In larger States, if the above staffing structure is inadequate, the Executive Committee shall appoint more staff for finance & accounting and internal auditing. The Executive 36 Committee may consider appointing an Accountant at block level or for a group of blocks based on the quantum of accounting work involved. These Accountants would provide resource support in accounting to cluster and school level.

4.31 Capacity building of accounts and audit staff

4.31.1 Orientation training on Planning, Budgeting, Accounting, Procurement, Internal Audit etc. of Samagra Shiksha should be given to all accounts and audit staff at periodical intervals so as to equip them with sufficient knowledge of the area of their work for the smooth and efficient day to day functioning of the tasks assigned to them.

4.31.2 A minimum of 5 days training to accounts and audit staff is mandatory in a year.

The accounts staff so trained at district level will provide training to block level staff, who in turn will provide training to staff at cluster and school level.

4.32 Control of Expenditure

4.32.1 Persons authorised to incur expenditure must ensure that financial order and strict economy are enforced at every step and see that all-relevant financial rules, orders, directions and instructions are observed.

4.32.2 It should be seen that not only the total expenditure is kept within the limits of the budget provision but also the funds allotted / transferred are spent in the interest and service of the programme and upon objects for which provisions have been made.

4.32.3 They will also see that items of expenditure are of obvious necessity and are at fair and reasonable rates, sanction of the competent authority obtained and that calculations are correct.

4.32.4 In order to exercise proper control, they should keep themselves closely acquainted with the progress of receipts/expenditure, commitments and liabilities incurred but not paid.

4.33 Re-appropriation of funds

4.33.1 Funds of the Society shall not be diverted or re-appropriated to meet any expenditure which has not been sanctioned by the Competent Authority;

4.33.2 Funds shall not be diverted or re-appropriated to expenditure on any item not provided for or contemplated in sanctioned budget estimates;

4.33.3 Re-appropriation of funds shall be made only when it is known or anticipated that funds to be transferred from one sub-head to another sub-head will not be utilised in full and savings under that sub-head of accounts are likely to become available. The re-appropriation in such cases shall be made only with the approval of State Executive Committee.

4.33.4 Re-appropriation of fund from Capital (Non-recurring) to General Head (Recurring) and vice versa is not permissible under the Scheme.

37 Chapter: 5 MONITORING, INTERNAL CONTROL AND INTERNAL AUDIT

5.1 Introduction

5.1.1 Monitoring is considered to be the systematic collection of specific indicators and other relevant information, in order to inform management and the key stakeholders about the progress and the achievement of objectives, and use of available resources. Monitoring focuses on the short to medium-term outputs that can be used to adjust certain aspects of the Scheme if considered necessary.

5.1.2 In this context, large-scale inputs in terms of additional schools, additional classrooms, teachers and other facilities need to be provided to meet the challenge. It inter-alia requires assessment/ provision of educational needs, physical infrastructure, human resource, academic inputs and effective monitoring of implementation of the Scheme.

5.1.3 Internal Control: In the scheme Internal control is a process effected by the management of implementing agencies and other personnel designed to provide reasonable assurance that the objectives of the Scheme are being achieved in the areas of (a) effectiveness and efficiency of operations, (b) reliability of financial and operational reporting and, (c) compliance with the provisions of the scheme frame work and other orders issued from time to time. Monitoring and supervision of the implementation of the Scheme and internal audit are the main controls exercised in internal control.

5.2. Supervision and Monitoring

5.2.1 Monitoring has to be a continuous process with both Scheme implementation and outcome indicators required to be monitored on a regular basis.

5.2.2 Monitoring under the scheme is envisaged as four tiered:

(i) Monitoring at school /Community level,

(ii) District level

(iii) State level and

(iv) National level.

5.3 School/Community Level Monitoring

5.3.1 Community based monitoring is one of the strengths of the Scheme which can become a major weakness if not implemented properly.

5.3.2 In order to make the financial flow transparent at the school level, every school should display all the grants received and spent on civil & other than civil by the school as well as enrolment, attendance, performance, incentive and the details 38 thereof. All reports of information should be sent to district project offices (DPOs) by Schools and shall be displayed on the school notice board.

5.3.3 In addition to these, SDMC/SMC members have to inspect the Scheme regularly.

Parent teachers association / Community /local body members can also inspect the school.

5.4 Composition of the School Level Committee:

5.4.1 While the specific composition of SMDC/SMC may be decided by the States, the suggested composition of SMDC/SMC may be as follows,

(i) Principal, Chairman of the Committee

(ii) Vice Principal, Member

(iii) One teacher related to Social Science,Member

(iv) One teacher related to Science, Member

(v) One teacher related to Mathematics, Member

(vi) One gentleman from parents, Member

(vii) One lady from parents, Member

(viii) Two members from Panchayat or Urban Local Body

(ix) One member from SC/ ST community

(x) One member from Educationally Backward Minority Community

(xi) One member from women groups

(xii) One member from Education Development Committee of each village (to which the school concerned caters)

(xiii) Three experts as members, each from Science, Humanities and Art/Craft/ Culture background to be nominated by the District Programme Coordinator through due process.

(xiv) One officer from Education Department to be nominated by the District Education Officer as Member

(xv) One member from Audit and Accounts Department

5.4.2 The SMDC/SMC will be assisted by two sub-committees, School Building Committee and Academic Committee, headed by the Principal and Vice Principal respectively.

5.4.3 The School Building Committee will be responsible for all the activities including planning, estimation, management, monitoring, supervision, reporting, maintenance of Accounts, monthly squaring up of accounts, presenting accounts before the School Management Committee or Panchayat or Urban Local Bodies etc. relating to construction, renovation, repairing and maintenance and other related civil works. The Civil Works will be undertaken either on Contract Basis as per rules or by the Community. These works may also be integrated with the appropriate Rural Development Schemes. While the composition of the Sub- Committee can be decided by the State Government, the suggested composition is as under, 39

(i) One member from Panchayat or Urban Local Body

(ii) One member from parents

(iii) One member from experts in Civil Works like Civil Engineer/ consultant

(iv) One member from Audit and Accounts Department

5.5 District Level Monitoring A District Level Committee comprising public representatives would be constituted to monitor the implementation of the scheme in that district as per the following provisions:

5.5.1 Composition of the District Level Committee:

(i) All Members of Parliament, Members of the State Legislature and members of the Zilla Parishad (wherever duly constituted), elected from that district/and/or urban bodies (duly constituted) as applicable.

(ii) The District Magistrate/ Collector/ Deputy Commissioner/ Chief Executive Officer of the Zilla Parishad/Urban local body.

(iii) District Education Officer in-Charge of the scheme, will be the Member- Secretary.

(iv) District Officers in-charge of Drinking Water Mission/Total Sanitation Programme/ Handicapped Welfare/Social Welfare/Minority Welfare etc.

(v) Two NGO’s working on secondary education for the scheme in the area, to be nominated by the District Magistrate/ Collector/ Dy. Commissioner/ CEO Zilla Parishad.

(vi) The senior-most Member of Parliament present in the meeting will chair the Committee on the day it meets.

5.5.2 Terms of Reference of the District Level Committee

(i) The Committee will be apprised of the progress of the scheme implementation in the district, both in terms of key targets and achievements thereof, and also on outcome indicators, inter-alia, Gross Access Ratio, Enrolment, GER, NER, Gender Parity Index, Dropout, Transition rate, Pass Percentage, PTR, SCR, Learning achievement levels of students etc.

(ii) Suggestions of the members may be taken into consideration, within the parameters of the scheme guidelines and framework of implementation and the approved Annual Work Plan & Budgets of the district, for improving the scheme implementation at the local level.

(iii) The Committee may also examine the synergy and convergence of other related Government Departments/Schemes in improving school infrastructure and other support services for benefit of students.

(iv) The Committee will meet once a quarter.

(v) Committee should ensure community participation in monitoring and data should be open for social auditing.

5.5.3 Monitoring by District Project Offices (DPOs):

(i) Component wise details of approved funds and the district level programmes intended to carry out through this fund and copies of all sanction orders for project activities would be uploaded on the web-site of the department and must be published in the website of the district.

(ii) Publication of information material about the programmes and civil works and the financial requirements needed for conducting the programmes.

(iii) The progress of civil works received from the school must be entered by the district month wise.

5.5.4 Updated data on- progress of each components of the programme, school wise physical progress (Stages of construction), progress of expenditure & utilization including funds received and spent, payments made, works sanctioned and works started, cost of works and details of expenditure on it, duration of work etc. should be made public in a pre-designated format outside all offices of all agencies involved in implementing the programme. All these information should also be shared with the Gram Panchayats/ ULBs and should be discussed in their meetings.

Other monitoring tools at district level are conducting field visits by the District team. Schools should give monthly reports to the district so that district officers can assess the progress of each school. District officers should conduct meeting of the Headmasters of Government schools for assessing the progress of each school in the district.

5.5.5 Financial Indicators to be monitored at the District Level

(i) Actual amount spent on civil work: The amount spent on civil work in each financial year is to be calculated and to be monitored.

(ii) Actual amount spent on other than civil work: The amount spent on other than civil work in each financial year is to be calculated and to be monitored.

5.6 State Level Monitoring

5.6.1 The State Government shall prepare an annual Report on the implementation including involvement of PRIs in the programme. This report will be laid before the State Legislature.

5.6.2 All School wise physical progress in line with financial progress will be monitored by State as submitted by districts. Expenditure against approved AWP&B will be monitored through the information submitted on PMS on a monthly basis by respective districts. The receipt of funds from various sources and their subsequent releases to district level and school level should be monitored on a monthly basis.

5.6.3 State level officers have to visit Districts to see whether the financial utilization is carried out on time.

5.6.4 State should also develop a monitoring system so as to enable the monitoring and supervision of the entire programme through e- governance

5.6.5 The State Implementing Societies (SIS) will also undertake intensive monitoring. Representatives of national level institutions like NCTE, NIEPA and NCERT will also undertake periodic monitoring and provide resource support to the SIS to strengthen appraisal and monitoring systems. Efforts to associate autonomous institutions willing to take up State specific responsibilities for research and evaluation will also be made. Many independent institutions would also be associated in developing effective tools for conducting achievement tests, monitoring quality aspects of programme implementation, evaluation and research studies.

5.6.6 Since quality is a major concern under the scheme, its monitoring will be a priority. Monitoring of quality will require an understanding of the processes of the programme implementation. Process and quality indicators would have to be developed as per felt needs in order to track the quality of programme implementation. Such efforts would require partnership with institutions, PRIs, School Committees, etc. Training and orientation programmes to develop appropriate monitoring formats, qualitative monitoring through process documentation and case studies to understand issues comprehensively will be required.

5.6.7 Financial Indicators to be monitored at the State Level

1. Guidelines issued: Guidelines should be issued to the district by the SIS on how to conduct the programmes and to utilize the amount they have received.

2. State Government allocation: State Government will allocate funds to the district as well as to the schools for the project according to their plans. This will be based on the amount approved by the PAB.

3. Total amount received (GOI+ State+ other): Here entire amount received for education sector including the scheme, State programme, Interest and other receipts are to be included

4. Total expenditure: The expenditure incurred during programme implementation is to be considered.

5. Salary expenditure as % of school education: Total Salary expenditure of the state is to be calculated and the percentage of this amount is to be calculated in respect of school education expenditure in the state.

6. Average per student expenditure by the State: The average expenditure incurred per student for school education is to be calculated.

5.7 National Level Monitoring

5.7.1 Government of India will monitor financial management issues of the States on a monthly basis related to the scheme. The strengthened Financial Monitoring Unit of the Technical Support Group will assist for this purpose. The review will include SPOs particularly the Finance officers of the State Implementing Society.

5.7.2 All School wise physical progress in line with financial progress will be monitored at National level as submitted by States/UTs through Project Monitoring System (PMS). Expenditure against approved AWP&B will be monitored through the information submitted on PMS on a monthly basis submitted by respective States. The receipt of funds from various sources and their subsequent releases to State level will be monitored on a monthly basis.

5.7.3 National level officers may visit the States to review/monitor the financial management system in the States on regular basis. The case report/study can be shared during the Quarterly Review meetings on financial management at national level with other States/UTs for disseminating best practices prevalent in the states.

5.8 Indicators for Financial Management Checks by Government of India The Indicators of Financial Management checks by Government of India are as follows:

a. Expenditure: The expenditure against approved AWP&B will be monitored on a monthly basis. For this purpose, the information must be updated on Project Monitoring System (PMS).

b. Funds Flow: The receipt of funds from various sources and their subsequent releases to district level and sub-district level will be monitored on a regular basis.

c. Staff for Financial Management: The position of financial management staff at State and district level will be monitored on a quarterly basis. The position of staff in the Statement as per Annexure-VI should be furnished to Government of India within 20 days after the close of each quarter.

d. Training Programme for Financial Management Staff: Initial training and orientation training on financial management covering planning, budgeting, accounting, procurement, internal audit etc. under the scheme should be given to all financial management staff at periodic intervals. In order to monitor the position, the information as per Annexure-VII should be furnished to Government of India on a quarterly basis within 15 days after the close of each quarter.

43 e. External Audit: It is mandatory to conduct an external audit of the accounts of the Societies on an annual basis. In order to monitor the progress of audit, the information as per Annexure-VIII should be furnished to Government of India on a quarterly basis within 15 days after the close of each quarter.

5.9 Other Monitoring mechanisms:

5.9.1 Project Monitoring System (PMS) In a significant step towards leveraging technology to enhance efficiency and manage the implementation of scheme, an online Project Monitoring System (PMS) has been developed. The core objective of Project Monitoring System is:

(i) To ensure an end to end information sharing system

(ii) To obviate the need for sending hard copies

(iii) To have transparency and accuracy w.r.t Approvals, Releases, Financial Status.

(iv) To streamline the Financial Management system.

(v) To monitor real time movement of funds to lower levels of Program Implementation.

Main modules of PMS include:

(i) Online retrieval of Sanction Order of GoI Releases

(ii) Online Monthly Progress Reports (Physical and Financial)

(iii) Online Generation of UCs

(iv) Online submission of AWP&B

(v) Online Submission of School/unit wise Physical Progress of Civil works and other than Civil Works.

(vi) Online submission of School/unit wise implementation/ Functional Status.

In PMS, States/UT are required to submit monthly Physical and Financial Progress of Scheme.

5.9.2 Public Financial Management System (PFMS) Public Financial Management System (PFMS) has been implemented for all the Centrally Sponsored schemes by the Controller General of Accounts (CGA), Ministry of Finance. This system provides MIS reports indicating availability of funds in bank accounts at various tiers/levels of programme implementation. The reports provide online balances lying in the bank accounts of such agencies.

Availability of this information at the Department (Ministry level) will help in better financial management, more accurate assessment of actual requirement for implementation and decision making on fund release. All states/UTs are required to be PFMS compliant for release of funds.

5.9.3 Concurrent Financial Review and Monitoring by Government of India The implementing agencies at all level are required to keep proper accounts of the funds received by them and the expenditure incurred from these funds. They must 44 also ensure that the expenditure is incurred for the purpose for which it was sanctioned and it is covered by relevant financial regulations / rules. In order to ensure that the accounts are kept properly and the funds are utilized for the purpose for which they were sanctioned, a Concurrent Financial Review and monitoring shall be carried out by Government of India at periodic intervals. This will be taken up in a phased manner considering the progress of implementation of the scheme including various components in states.

The accounts of the State Implementing Society shall be opened to inspection by Government of India/State Government and the audit party deputed by them.

Government of India may hire the services of reputed institutions to undertake concurrent financial review of the scheme.

The State may consider the engagement of similar credible organizations or firms of Chartered Accountants to undertake internal audit of their accounts only in the absence of in house Internal Audit wing. The Terms of Reference for such an internal audit shall be in the format as per Annexure-IX.

5.10 Internal Audit

5.10.1 Internal Audit is a control that functions by examining and evaluating the adequacy and effectiveness of other controls throughout the organisation. The internal audit activities should include all payment audit as well as independent appraisals of the financial, operational and control activities of the programme.

The responsibilities of the internal auditor should include reporting on the adequacy of internal controls, the accuracy and propriety of transactions, the extent to which assets are accounted for and safeguarded, and the level of compliance with the scheme financial norms and State Government procedures.

5.10.2 The State Implementing Society should introduce proper internal audit system and strengthen internal checks and the in-house internal audit system to ensure proper utilization of funds approved in the AWP&B.

5.10.3 In States where an in-house internal audit team is not available, qualified Chartered Accountants/Cost Accountants firm may be engaged for carrying out internal audit also as per the TOR provided in Annexure IX.

5.10.4 The internal audit of SPO and District Project Coordinator Offices shall be carried out every year. Internal audit of Schools is conducted on a percentage basis, so as to cover 5 per cent of schools in each district. It should be ensured in the internal audit that the prescribed accounting system including regular bank reconciliation is strictly followed by all.

5.10.5 The monthly expenditure Statement submitted by the districts indicating the approved budget provision and expenditure during the month, cumulative expenditure against the activity / sub-activity during the year should be reviewed in the internal audit.

5.10.6 The Procurement Procedure adopted for civil works, goods and consultancy services should be reviewed by the internal auditors and it should be ensured that correct procedure has been followed for each procurement.

5.10.7 It should be ensured that the records of all Procurement, Agreements, Work/Purchase Orders, Invoices, Receipts, Stock Registers etc. are properly maintained, duly linked and retained.

5.10.8 Discrepancies noticed in the Internal Audit should be reported to the State Project Director for taking necessary remedial measures. Records of all internal audit objections should be kept in the Internal Audit Unit and pursued to finality.

5.10.9 The report of the internal audit shall also be placed before the Executive Committee.

5.10.10In order to maintain the Internal Audit mechanism, state to give information as per Annexure X.

5.11 Audit of School bodies

5.11.1 Internal audit by the auditor appointed by SIS should cover at least 5 per cent of schools in each district.

5.11.2 The District Project Office of the scheme will keep a record of such audits and ensure compliance by such bodies.

CHAPTER-6 AUDITING

6.1 Audit by the Chartered Account Firm

6.1.1 The State Implementing Society registered under the Societies Registration Act 1860 (21 of 1860) is responsible for the maintenance of proper accounts and other relevant records, as well as preparing annual accounts comprising the receipts and payments accounts and Statement of liabilities in such a form as may be prescribed by the Registrar of Societies in keeping with the Rules in force under the said Act. Accordingly, it is mandatory that a Chartered Accountant appointed for this purpose should audit the accounts of the Society annually and submit an annual audit report.

6.1.2 The State Society shall maintain proper accounts and other relevant records and prepare annual accounts comprising the receipts and payments account and Statement of liabilities in such form as may be prescribed by the Registrar of Societies of the State Government in keeping with the Rules in force under the

Ssa- Manual on Financial Management and Procurement

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