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Financial Management : 30 th Quarterly Review Meeting. Moving towards Quality from output to Outcome : Journeys ahead with special reference to Annual Grants. 30 th Quarterly Review Meeting of State’s Finance Controllers New Delhi, 4 th – 5 th August 2011.
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Financial Management : 30th Quarterly Review Meeting Moving towards Quality from output to Outcome : Journeys aheadwith special reference to Annual Grants 30th Quarterly Review Meeting of State’s Finance Controllers New Delhi, 4th – 5th August 2011 Presented by :U.K. Verma ,Consultant (Financial Management) EdCIL, Technical Support Group (SSA) , New Delhi
Financial Management : 30th Quarterly Review Meeting • Annual Grants to Schools looks small but significant : • constitute as significant proportion of funds that actually reach school’s bank accounts ; • The only funds over which school management committees (SMC) can exercise its own control ; • Community Members / SMCs to assess the immediate needs of the Schools and prioritize it to manage; • creates and strengthen sense of community ownership over functioning of Schools; • significant bearing on the day to day functioning of the schools-whether school infrastructure is maintained properly, administrative expenses are catered for and teaching materials (apart from textbooks) are available. • Non-utilization/ under utilization / improper utilization of Annual Grants – DIRECT LOSS TO SCHOOL , CHILDREN & ULTIMATELY THE MISSION OF SSA EdCIL, Technical Support Group (SSA) , New Delhi
Financial Management : 30th Quarterly Review Meeting Financial Proformances : Target & Achievement: Rupees in Lakh EdCIL, Technical Support Group (SSA) , New Delhi
Financial Management : 30th Quarterly Review Meeting Financial Proformances : Target & Achievement: Rupees in Lakh Repair & Maintenance EdCIL, Technical Support Group (SSA) , New Delhi
Financial Management : 30th Quarterly Review Meeting Financial Proformances : Target & Achievement: Rupees in Lakh School Development Grant EdCIL, Technical Support Group (SSA) , New Delhi
Financial Management : 30th Quarterly Review Meeting Financial Proformances : Target & Achievement: Rupees in Lakh TEACHERS GRANT EdCIL, Technical Support Group (SSA) , New Delhi
Financial Management : 30th Quarterly Review Meeting • Performance Appraisal : By Community (Stakeholders): • Amount of the Grants – insufficient • ( financial norms revised from 2007-08 & 2010-11 for all Repair & Maintenance Grant and School Development Grant) • Delays in reaching money to schools • (Grants to be released as per monthly exp. Plan of the states / districts through EFT / Bank advice ) • Purposes of grants not clearly defined • ( VEC / SMC Manual to be revised as per revised financial norms and copy of manual to be rolled out / disseminated in local languages to all VECs /SMCs. Community Members Training to be strengthened) • No intimation of grants releases EdCIL, Technical Support Group (SSA) , New Delhi
Financial Management : 30th Quarterly Review Meeting • Performance Appraisal : By Auditors : • Releases of Grants at the flag end months of the Financial Year • Treated as Expenditure without obtaining Utilization Certificates from the VECs / SMCs • Non Submission of utilization certificates before Auditors; • Releases of Grants to non-existent schools ; • Releases of Repair & Maintenance Grant to non-eligible schools; • Non- coverage of all eligible schools • No system exists for adjustment of grants on the basis of the utilization certificates • Acknowledgement of receipt of grants not documented EdCIL, Technical Support Group (SSA) , New Delhi
Financial Management : 30th Quarterly Review Meeting Performance Appraisal : By Third Party Agency : FINDINGS FROM PAISA 2010 NATIONAL SURVEY The PAISA survey is conducted annually through the Annual Survey of Education Report (ASER). This is the second PAISA report. In 2009, the survey covered a total of 14231 government Primary and Upper Primary Schools in rural India. The 2010 survey covers 13021 government primary and upper primary schools across rural India. The ASER survey is conducted through civil society partners. PAISA is the first and only national level, citizen led, effort to track public expenditures. EdCIL, Technical Support Group (SSA) , New Delhi
Financial Management : 30th Quarterly Review Meeting Findings of the PAISA 2010 are based on a nation wise survey conducted through the Annual Survey of Education Report (ASER). This is the second PAISA report. The 2010 survey covers 13021 government primary and upper primary schools across rural India. The PAISA survey focuses on the following key questions relating to releases and utilization of 3-Annual Grants under SSA (i.e., Repair & Maintenance Grant, School Development Grant and Teaching Learning Material Grant) (a) Do schools get their money? (b) When did schools get their money? i.e. did funds arrive on time? (c) Did schools get their entire grants as per the norms ? (d) Do schools spend their money? (e) If so, what are the outputs of this expenditure? The findings, as reported may not be conclusive considering the volume of the financial outlays of SSA and the areas covered by the survey. However, the sole purpose of sharing findings of PAISA 2010 with State Finance Controllers is to ensure repair even the invisible weaknesses and give best output as well as the best outcomes of the expenditure under Annual School Grants under SSA. EdCIL, Technical Support Group (SSA) , New Delhi
Financial Management : 30th Quarterly Review Meeting Sample size of Survey Covering States and Schools : EdCIL, Technical Support Group (SSA) , New Delhi
National Level Financial Management : 30th Quarterly Review Meeting The 2010 survey covers 13021 government primary and upper primary schools across rural India conducted through civil society partners to track public expenditures under SARVA SHIKSHA ABHIYAN(SSA). We would restrict our discussion mainly on findings on 3 - Annual Grants under SSA …….. SDG R & M G In FY 2009-10, total SSA Allocation Rs. 27,876.29 cr. School grants accounted for Rs. 1635.32 crore (about 6%) of this total allocation. TLM EdCIL, Technical Support Group (SSA) , New Delhi
National Level Financial Management : 30th Quarterly Review Meeting Findings from PAISA Survey: India Rural 1) Do schools get their money? : In 2009-10, over 85% primary and upper primary schools reported receiving the three mandatory grants compared to 78 % in 2008-09. R/M SDG TLM R/M TLM SDG EdCIL, Technical Support Group (SSA) , New Delhi
National Level Financial Management : 30th Quarterly Review Meeting Findings from PAISA Survey: India Rural 2) Do schools get all their money? : In 2009-10, 68% primary schools reported receipt of all three grants compared with 54% in 2008-09. 70% upper primary schools reported receiving all three grants compared with 60% in 2008-09. 70% 68% 60% 54% Primary EdCIL, Technical Support Group (SSA) , New Delhi
National Level Financial Management : 30th Quarterly Review Meeting Findings from PAISA Survey: India Rural 3) Does money reach on time? - efficiency and timeliness of fund flows : In 2010-11, 44% Primary and 56 % Upper Primary Schools reported receiving grants up to October 2010 compared to 29 % and 36 % in FY 2009-10 Delays in receipt of funds seriously compromise the quality of expenditures. First late arrival of funds means that time bound expenditures such as premonsoon repairs, purchases of basic supplies in schools cannot be undertaken at the time of need. Secondly, late arrival of funds means that schools have to rush to spend their money which inevitably leads to poor quality expenditure. EdCIL, Technical Support Group (SSA) , New Delhi
National Level Financial Management : 30th Quarterly Review Meeting Findings from PAISA Survey: India Rural 4) Do Schools spend their money and How? - In 2008-09 and 2009-10, an average about 91% schools that receive money reported spending their money. But Still the Schools needs to prioritize the immediate requirement. • about 90% use their funds to purchase supplies- both classroom and other supplies. • 64% primary and 72% upper primary schools reporting undertaking white washing activities. • 52% for primary and 61% for upper primary Schools under taken building repair • very few schools undertook work on toilet and hand pump facilities , these facilities are in need of prioritization. EdCIL, Technical Support Group (SSA) , New Delhi
National Level Financial Management : 30th Quarterly Review Meeting Findings from PAISA Survey: India Rural • 5) Other Findings of the Report : • 11% of schools did not have any toilet facility (neither common, nor for girls or for boys). • In 27% schools, the toilet facility was locked and in 10 % schools, toilets were unusable. • 32% primary schools and 8% upper primary schools have fewer teachers than prescribed by the RTE. • Only 11% government schools are in compliance with all the seven physical infrastructure norms prescribed by RTE • 44% primary and 56% upper primary schools reported receiving grants half way through the financial year 2010-11. EdCIL, Technical Support Group (SSA) , New Delhi
National Level Financial Management : 30th Quarterly Review Meeting Findings from PAISA Survey: India Rural • How do states compare with one another? • Nagaland, Karnataka, Andhra Pradesh, Himachal Pradesh and Maharashtra are the top 5 states (in no particular order) for the full financial year for both years. • When it comes to timeliness (i.e. states that report grant receipt for all 3 grants through 1st half year, Andhra Pradesh and Maharashtra fall off the list and Goa and Gujarat found place in the top five on timeliness. • Andhra Pradesh was amongst the worst performers in terms of timeliness in 2009-10 but improved its grant flows in 2010-11 • Nagaland tops the list. In 2008-09, 85% , in 2009-10 88% and in 2010- 11, 84% schools reporting grant receipt half way through the year; • Karnataka comes second in the list with 76% schools reporting receipt of all 3 grants in 2008-09. This improved to 87% in 2009-10. In 2010-11 Karnataka improved its grant speed with as many as 82% • Himachal Pradesh dropped its overall position from 2nd to 3rd in 09-10. EdCIL, Technical Support Group (SSA) , New Delhi
National Level Financial Management : 30th Quarterly Review Meeting Findings from PAISA Survey: India Rural • How do states compare with one another? • Meghalaya, is the worst performer both in 2008-09 and 2009-10 with an average of 23% schools reporting receiving all 3 grants in both years. Meghalaya also does poorly in terms of timeliness with a mere 2% schools reporting receipt of all 3 grants in 2009- 10. This improved only somewhat to 10% in 20010-11. • Rajasthan which was the 5th worst performer at 37% in 2008-09 improved its performance to 55% in 2009-10. In terms of timeliness, the state has shown some improvement over the last two years. In 2009-10 Rajasthan was the 5th worst performer at 12% this has improved to about 30% in 2010-11. • Other poor performers for 2008-09 were Mizoram at 35%, Tripura at 34% and Manipur at 27%. In 2009-10, the worst performers were Arunachal Pradesh at 60%, Sikkim at 57%, Rajasthanat 55%, Tripura at 47% and Meghalaya at 24%. EdCIL, Technical Support Group (SSA) , New Delhi
Andhra Pradesh Financial Management : 30th Quarterly Review Meeting Findings from PAISA Survey: India Rural • 70 % PS and 64 % UPS received all three grants in 2008-09 whereas in the 2009-10 it was 85 % and 87 % • More than 90 % PS and 95 % UPS reported spending money • only 52 % PS and 46 % UPS received grants up to Oct in 2010-11 % Schools Reporting Receipt of Grants EdCIL, Technical Support Group (SSA) , New Delhi
Arunachal Pradesh Financial Management : 30th Quarterly Review Meeting Findings from PAISA – 2010 Survey: India Rural • 67 % PS and 56 % UPS received all three grants in 2008-09 • whereas in the 2009-10 it was 57 % and 64 % • About 90 % PS and 94 % / 83 % UPS reported spending money • only 32 % PS and 29 % UPS received grants up to Oct in 2010-11 % Schools Reporting Receipt of Grants EdCIL, Technical Support Group (SSA) , New Delhi
Assam Financial Management : 30th Quarterly Review Meeting Findings from PAISA – 2010 Survey: India Rural • 53 % PS and 41 % UPS received all three grants in 2008-09 • whereas in the 2009-10 it was 75 % and 63 % • more than 90 % PS and 98 UPS reported spending money • only 43 % PS and 33 % UPS received grants up to Oct in 2010-11 % Schools Reporting Receipt of Grants EdCIL, Technical Support Group (SSA) , New Delhi
Bihar Financial Management : 30th Quarterly Review Meeting Findings from PAISA – 2010 Survey: India Rural • 57 % PS and 66 % UPS received all three grants in 2008-09 • whereas in the 2009-10 it was 66 % and 74 % • About 80 % PS and 89 % UPS reported spending money • only 42 % PS and 51 % UPS received grants up to Oct in 2010-11 % Schools Reporting Receipt of Grants EdCIL, Technical Support Group (SSA) , New Delhi
Chhattisgarh Financial Management : 30th Quarterly Review Meeting Findings from PAISA – 2010 Survey: India Rural • 68 % PS and 76 % UPS received all three grants in 2008-09 • whereas in the 2009-10 it was 61 % and 73 % • More than 90 % PS and UPS reported spending money • only 25 % PS and 39 % UPS received grants up to Oct in 2010-11 % Schools Reporting Receipt of Grants EdCIL, Technical Support Group (SSA) , New Delhi
Goa Financial Management : 30th Quarterly Review Meeting Findings from PAISA – 2010 Survey: India Rural • 62 % PS and 100 % UPS received all three grants in 2008-09 • whereas in the 2009-10 it was 77 % and 100 % • About 97 % PS and 100 % / 83 % UPS reported spending money • only 50 % PS and 0 % UPS received grants up to Oct in 2010-11 % Schools Reporting Receipt of Grants EdCIL, Technical Support Group (SSA) , New Delhi
Gujarat Financial Management : 30th Quarterly Review Meeting Findings from PAISA – 2010 Survey: India Rural • 58 % PS and 81 % UPS received all three grants in 2008-09 • whereas in the 2009-10 it was 67 % and 79 % • About 90 % PS and UPS reported spending money • 70 % PS and 77 % UPS received grants up to Oct in 2010-11 % Schools Reporting Receipt of Grants EdCIL, Technical Support Group (SSA) , New Delhi
Haryana Financial Management : 30th Quarterly Review Meeting Findings from PAISA – 2010 Survey: India Rural • 60 % PS and 71 % UPS received all three grants in 2008-09 • whereas in the 2009-10 it was 52 % and 71 % • more than 95 % PS and UPS reported spending money • only 55 % PS and 46 % UPS received grants up to Oct in 2010-11 % Schools Reporting Receipt of Grants EdCIL, Technical Support Group (SSA) , New Delhi
Himachal Pradesh Financial Management : 30th Quarterly Review Meeting Findings from PAISA – 2010 Survey: India Rural • 71 % PS and 67 % UPS received all three grants in 2008-09 • whereas in the 2009-10 it was 85 % and 77 % • About 95 % PS and 90 % UPS reported spending money • only 80 % PS and 73 % UPS received grants up to Oct in 2010-11 % Schools Reporting Receipt of Grants EdCIL, Technical Support Group (SSA) , New Delhi
Jharkhand Financial Management : 30th Quarterly Review Meeting Findings from PAISA – 2010 Survey: India Rural • 49 % PS and 69 % UPS received all three grants in 2008-09 • whereas in the 2009-10 it was 65 % and 77 % • About 90 % PS and 88 % UPS reported spending money • only 52 % PS and 61 % UPS received grants up to Oct in 2010-11 % Schools Reporting Receipt of Grants EdCIL, Technical Support Group (SSA) , New Delhi
Karnataka Financial Management : 30th Quarterly Review Meeting Findings from PAISA – 2010 Survey: India Rural • 70 % PS and 78 % UPS received all three grants in 2008-09 • whereas in the 2009-10 it was 80 % and 88 % • About 88 % PS and 94 % UPS reported spending money • only 72 % PS and 84 % UPS received grants up to Oct in 2010-11 % Schools Reporting Receipt of Grants EdCIL, Technical Support Group (SSA) , New Delhi
Kerala Financial Management : 30th Quarterly Review Meeting Findings from PAISA – 2010 Survey: India Rural • 66 % PS and received all three grants in 2008-09 • whereas in the 2009-10 it was 68 % and 65% • more than 95 % PS and 97 % UPS reported spending money • only 67 % PS and 52 % UPS received grants up to Oct in 2010-11 % Schools Reporting Receipt of Grants EdCIL, Technical Support Group (SSA) , New Delhi
Maharashtra Financial Management : 30th Quarterly Review Meeting Findings from PAISA – 2010 Survey: India Rural • 66 % PS and 68 % UPS received all three grants in 2008-09 • whereas in the 2009-10 it was 85 % and 86 % • About 96 % PS and 94 % UPS reported spending money • only 62 % PS and 53 % UPS received grants up to Oct in 2010-11 % Schools Reporting Receipt of Grants EdCIL, Technical Support Group (SSA) , New Delhi
Manipur Financial Management : 30th Quarterly Review Meeting Findings from PAISA – 2010 Survey: India Rural • 24 % PS and 37 % UPS received all three grants in 2008-09 • whereas in the 2009-10 it was 65 % and 71 % • About 80 % PS and 75 % UPS reported spending money • only 20 % PS and 46 % UPS received grants up to Oct in 2010-11 % Schools Reporting Receipt of Grants EdCIL, Technical Support Group (SSA) , New Delhi
Meghalaya Financial Management : 30th Quarterly Review Meeting Findings from PAISA – 2010 Survey: India Rural • 19 % PS and 71 % UPS received all three grants in 2008-09 • whereas in the 2009-10 it was 24 % and 20 % • About 92 % PS and 100 % UPS reported spending money • only 11 % PS and 0 % UPS received grants up to Oct in 2010-11 % Schools Reporting Receipt of Grants EdCIL, Technical Support Group (SSA) , New Delhi
Mizoram Financial Management : 30th Quarterly Review Meeting Findings from PAISA – 2010 Survey: India Rural • 39 % PS and 15 % UPS received all three grants in 2008-09 • whereas in the 2009-10 it was 69 % and 100 % • Above 90 % PS and 100 UPS reported spending money • 61 % PS and 100 % UPS received grants up to Oct in 2010-11 % Schools Reporting Receipt of Grants EdCIL, Technical Support Group (SSA) , New Delhi
Nagaland Financial Management : 30th Quarterly Review Meeting Findings from PAISA – 2010 Survey: India Rural • 86 % PS and 79 % UPS received all three grants in 2008-09 • whereas in the 2009-10 it was 91% and 54 % • About 98 % PS and 100 % UPS reported spending money • 86 % PS and 58 % UPS received grants up to Oct in 2010-11 % Schools Reporting Receipt of Grants EdCIL, Technical Support Group (SSA) , New Delhi
Orissa Financial Management : 30th Quarterly Review Meeting Findings from PAISA – 2010 Survey: India Rural • 45 % PS and 48 % UPS received all three grants in 2008-09 • whereas in the 2009-10 it was 75 % and 70 % • About 86 % PS and 85 % UPS reported spending money • only 64 % PS and 63 % UPS received grants up to Oct in 2010-11 % Schools Reporting Receipt of Grants EdCIL, Technical Support Group (SSA) , New Delhi
Punjab Financial Management : 30th Quarterly Review Meeting Findings from PAISA – 2010 Survey: India Rural • 56 % PS and 50 % UPS received all three grants in 2008-09 • whereas in the 2009-10 it was 80 % and 78 % • About 95 % PS and 92 % UPS reported spending money • 70 % PS and 73 % UPS received grants up to Oct in 2010-11 % Schools Reporting Receipt of Grants EdCIL, Technical Support Group (SSA) , New Delhi
Rajasthan Financial Management : 30th Quarterly Review Meeting Findings from PAISA – 2010 Survey: India Rural • 42 % PS and 35 % UPS received all three grants in 2008-09 • whereas in the 2009-10 it was 52 % and 56 % • About 90 % PS and 89 % UPS reported spending money • only 23 % PS and 33 % UPS received grants up to Oct in 2010-11 % Schools Reporting Receipt of Grants EdCIL, Technical Support Group (SSA) , New Delhi
Sikkim Financial Management : 30th Quarterly Review Meeting Findings from PAISA – 2010 Survey: India Rural • 50 % PS and UPS received all three grants in 2008-09 • whereas in the 2009-10 it was 62 % and 54 % • About 95 % PS and 94 % UPS reported spending money • only 55 % PS and 54 % UPS received grants up to Oct in 2010-11 % Schools Reporting Receipt of Grants EdCIL, Technical Support Group (SSA) , New Delhi
Tamil Nadu Financial Management : 30th Quarterly Review Meeting Findings from PAISA – 2010 Survey: India Rural • Figures for PS and UPS received all three grants in 2008-09 • 2009-10 were not available • About 97 % PS and 95 % UPS reported spending money • Data of PS/UPS received grants up to Oct in 2010-11 not available % Schools Reporting Receipt of Grants EdCIL, Technical Support Group (SSA) , New Delhi
Tripura Financial Management : 30th Quarterly Review Meeting Findings from PAISA – 2010 Survey: India Rural • 30 % PS and 38 % UPS received all three grants in 2008-09 • whereas in the 2009-10 it was 43 % and 50 % • About 80 % PS and 85 % UPS reported spending money • only 26 % PS and 31 % UPS received grants up to Oct in 2010-11 % Schools Reporting Receipt of Grants EdCIL, Technical Support Group (SSA) , New Delhi
Uttarakhand Financial Management : 30th Quarterly Review Meeting Findings from PAISA – 2010 Survey: India Rural • 57 % PS and UPS received all three grants in 2008-09 • whereas in the 2009-10 it was 72 % and 80 % • About 95 % PS and 84 % UPS reported spending money • only 26 % PS and 22 % UPS received grants up to Oct in 2010-11 % Schools Reporting Receipt of Grants EdCIL, Technical Support Group (SSA) , New Delhi
Uttar Pradesh Financial Management : 30th Quarterly Review Meeting Findings from PAISA – 2010 Survey: India Rural • 52 % PS and 40 % UPS received all three grants in 2008-09 • whereas in the 2009-10 it was 65 % and 63 % • About 90 % PS and 88 % UPS reported spending money • only 31 % PS and 32 % UPS received grants up to Oct in 2010-11 % Schools Reporting Receipt of Grants EdCIL, Technical Support Group (SSA) , New Delhi
West Bengal Financial Management : 30th Quarterly Review Meeting Findings from PAISA – 2010 Survey: India Rural • 44 % PS and 14 % UPS received all three grants in 2008-09 • whereas in the 2009-10 it was 69 % and 0 % • About 80 % PS and 50 % UPS reported spending money • only 25 % PS and 0 % UPS received grants up to Oct in 2010-11 % Schools Reporting Receipt of Grants EdCIL, Technical Support Group (SSA) , New Delhi
Dadar & N. Haweli Financial Management : 30th Quarterly Review Meeting Findings from PAISA – 2010 Survey: India Rural • 33 % PS and 94 % UPS received all three grants in 2008-09 • whereas in the 2009-10 it was 100 % and 83 % • About 100 % PS and 97 %(2009-10)UPS reported spending money • only 14 % PS and 50 % UPS received grants up to Oct in 2010-11 % Schools Reporting Receipt of Grants EdCIL, Technical Support Group (SSA) , New Delhi
Daman & Diu Financial Management : 30th Quarterly Review Meeting Findings from PAISA – 2010 Survey: India Rural • 67 % PS and 40 % UPS received all three grants in 2008-09 • whereas in the 2009-10 it was 50 % in both PS & UPS • About 100 % PS and UPS(2008-09) reported spending money • 100% PS received grants up to Oct in 2010-11 % Schools Reporting Receipt of Grants EdCIL, Technical Support Group (SSA) , New Delhi
Puducherry Financial Management : 30th Quarterly Review Meeting Findings from PAISA – 2010 Survey: India Rural • only 6 % PS and 0 % UPS received all three grants in 2008-09 • whereas in the 2009-10 it was 97 % and 89 % • About 80 % PS and 100% UPS reported spending money • only 100 % PS and UPS received grants up to Oct in 2010-11 % Schools Reporting Receipt of Grants EdCIL, Technical Support Group (SSA) , New Delhi
Financial Management : 30th Quarterly Review Meeting What to Do ? (a) Make out District wise release plan for disbursement of Annual Grants; (b) Ensure availability of Fund in the DPOs / BRcs (c) Ensure disbursement of all three Annual Grants in May – June by all DPOs BRCs even in anticipation of approval of AWP & B (d) Instruct all BRCs to submit report on disbursement of Grants (e) Instruct all BRC to collect information from all CRC Co-ordinators on acknowledgement of receipt of Grants by Schools by July end; (f) Separate intimation to all SMCs along with guidelines on how to use the Grants, fixing need based priorities be issued ; (g) Intensive monitoring of disbursement and utilization of Grants by BRCs; (h) Collection of Utilization Certificates by CRCs / BRCs before 31st March (i) The States which have not / partially disbursed Annual Grants, to ensure disbursement of 100 % Annual Grants by August end to avoid any adverse report in next survey(s) EdCIL, Technical Support Group (SSA) , New Delhi
Financial Management : 30th Quarterly Review Meeting Thank You …. EdCIL, Technical Support Group (SSA) , New Delhi