NRHM-Rajasthan Presentation on Tally System V Srinivas IAS

NRHM-Rajasthan Presentation on Tally System V. Srinivas, IAS Secretary FW & MD NRHM Government of Rajasthan

Kolkata Workshop March 2009 The Kolkata workshop laid down the roadmap for strengthening financial management under NRHM; Key decisions included monthly reporting of FMR to GOI; Open tender system for selection of statutory auditor, adoption of tally at district, block and institutional level; reduction of advances; closure of EAG/ RCH I accounts and concurrent audit of district health societies and SHS Rajasthan has complied with these key decisions

The Complexity of Fiscal Transfers NRHMs financial management involves timely and adequate fiscal transfers to a number of spending agencies at sub district level; Poor liquidity management can result in beneficiary payment delays and negative institutional balances, inter alia higher transfers can disturb macro economic management at State level with ageing advances at institutions;

Fund Flow & Reporting NRHM – National Rural Health Mission NGO – Non Government Organisation PHC – Primary Health Centre CHC – Community Health Centre SC – Sub Centre VHSC – Village Health & Sanitation Committee

Grant Received-UC Expenses=Unspent Grant SHS DHS Unspent Grant Utilisation Certificate District Carry forward for Next Year Other (PWD, RHSDP) etc. CHC Utilisation Certificate Block RCHO BLOCKs PHC ADD. CMHO District Hospital SC Grant Received UC of Expenses Unspent Grant

Scaling up of Financial Expenditures Rajasthan 2008 -09

Financial Management of NRHM in Rajasthan’s expenditures under NRHM PIP increased from Rs. 334 crores in 2007 -08 to Rs. 920 crores in 2008 -09; This significant scaling up was a result of streamlining of Financial Management Practices, adoption of Tally for accounting purposes and e banking; Advance position has came down from Rs. 200 crore in April 08 to Rs. 110 crore in July 09; Reconciliation of EAG accounts resulted in significant refunds to Go. I; In pursuance of Kolkata discussions RCH-I accounts are being finalized; State Health Society Audit for 2008 -09 has been completed following merger of accounts of 34 District health Societies and 237 Blocks Accounts.

Financial management Policy Corrections • • All multiple accounts have been closed; Only one account is operational at District level for RCH II, Mission flexi pool and Routine Immunization; A limit of Rs. 2. 5 cr imposed other than VHSC moneys, advances have come down by Rs. 50 crores in the current year; Unadjusted advances include moneys to PRIs for construction of model sub centers and annual maintenance grants, all uncommenced works of model sub-centers have been desanctioned and moneys to be refunded to DHS Districts with larger number of institutions have large advance positions, lot of emphasis being placed on speedy utilization of untied funds/ annual maintenance grants

Releases take a long time State Plan releases moneys to PD a/c of SHS only after CSS releases are received GOI releases are received in 5 -6 installments, State Finance Dept has to be approached number of times The average processing time for releases of State Plan funds is considerable

Progress at a Glance Rs. In Crores

NRHM Year Wise Expenditures Rs. In Crores NRHM XIth Plan allocation of Rs. 6200 Crore -Utilization end March 2009 is Rs. 1400 Crores -PIP 2009 -10 for Rs. 1010 Crores.

Projected Fund Utilization Flow Rs. In Crores

Program Implementation Plans The Strength of Micro Level Planning for Resource Transfers

Planning Process State Program Implementation Plan 34 District Program Implementation Plans 237 Block Program Implementation Plans 41000 Village Health Plans (physical progress)

Distribution of PIP Share State PIP= 1010 Crores 54 % Of State PIP Total District PIPs= 545 Crores 80 % Of District PIP Total Block PIPs= 436 Crores

NRHM Projected Expenditure in 2009 -10 Expenditure through SHS is Rs. 465 Crores Expenditure through Blocks is Rs. 436 Crores Expenditure through DHS is Rs. 109 Crores

Division Wise Distribution of PIP Among districts, • Jaipur I & II DHS have a PIP size of Rs. 53 Crore • Udaipur District has a PIP Size of Rs. 42 Crore • Nagaur District has a PIP Size of Rs. 33 Crore

District wise PIPs Rs. In Lacs

Resource Envelope for District PIans Rs. In Lacs

Expenditure through District PIPs

Tally 9 in Rajasthan Greater Accountability

NRHM – Rajasthan State Health Society Roles & Responsibilities • Consolidation of District PIPs and finalization of State PIP • Ensure timely releases from Central and State Governments and transfers to DHS; • Responsible for collection & compilation of SOEs, UCs from districts and other implementing agencies and prepare reports & returns for monthly meetings and reporting to State Government & Go. I. • Ensure timely completion of statutory audit at state as well as district level for all its activities

NRHM Rajasthan– District Health Societies Roles & Responsibilities • Finalization of District PIPs • Facilitate release of funds to district functionaries and blocks • Responsible for accounting for all program and sending Financial Monitoring Reports, UCs and Audit reports to the State FMG, State. • Ensure timely completion of audit at district level as per audit program at state office. All relevant reports and returns shall be made available to audit. • Will liaise with the Block Program Office (BPO) and Block Accountant and other grantee institutions to get the expenditure reports and UCs on a fortnight / monthly basis for all the program under NRHM

NRHM Rajasthan – Sub. District Level (Block Level) Primary Roles & Responsibilities • Preparation of Block PIPs • Responsible for consolidation of Statement of Expenditure (So. E) submitted by the following centres at the block level: • Community Health Centre (CHC) • Primary Health Centre (PHC) • Sub Centre (SC) • Village Health & Sanitation Committee (VHSC) • Submission of consolidated Statement of Expenditure (So. E) to the respective District Office.

Requirement fulfilled by Tally TALLY • As a financial accounting package Tally is extremely useful • Capable of handling all kind of transaction. • Modest skill base is required • Information can be fed and retrieved at random and human errors can be corrected. • A post transaction system - follows the traditional methods of accounting, that is, the payment is first made on the basis of existing accounting methods (i. e. , against a voucher or a cash bill) and that information is fed into the Tally. • Covers a wide area - can be used by the owner, financial controller, accountant, manager or an auditor

Revenue/Production Planning & Marketing Enquiry Quotation Sample Survey Order to Party Order Scheduling Order Cancellation Production Advice Order Processing Planning Statement Monthly Target Plan Monthly Expended budget planed Monthly production/acquire Sch. Daily plans Process Bench Expanses Master Item Issued & Consumptions Analysis of Group Activity Process wise variance Received/Acquired Item Requisition Items- buy Requisition Process Requisition Request for Quotation Supplier Quotation Office Order against marked quot. Process order to relevant party Purchase Bill get and Verify Voucher/Invoice Details Purched Item Availability status Item Received Details Fixed Assets & Consumable Items Availability Status Budget Activity and Revenue Calender IRS Monthly Expenses Schedule Fixed Assets and Consumable Items Office Order with Party Bill PRODUCTION/REVENUE Item Requisition Slip (IRS) Receipt against IRS/Office Order Items Execution Quality Control as per Tenders conditions Item Return Note (by Store Incharge) Stock Register - F/A & C/A Issued & Received analysis Weekly Balance Verified -Physical & Monitory Value as per books Monthly cumulative consumption IRS ITEMS Store Room Item Requisition Slip Item Return Note Item Receipt at Store Quotation note match with Tender Item receipt at quality control Rejected Item Dispatch Advised Item Issued Section Wise Store ledger verified by DDO Requirement area

Financial Accounting & Reporting at NRHM – State Level • Cash Balance Certificate • Treatment of Interest Earned in the Bank Account • Preparation of Cheques • Cash Book with Cash & Bank Columns • Petty Cash Book • Serial Numbering of Vouchers • Ledger • District Programme Management Support Unit-wise ledgers • Journal • Register of investments

Financial Accounting & Reporting at NRHM – State Level • Registers for temporary advances as below: • Advance to staff • Advances to Contractors / NGOs • TA/DA Advance • Stock Register for: • Machinery & Equipment • Furniture & Other Non-consumable articles • Register for drugs & medicines • Register for consumable articles • Dead Stock Register (Machinery & Equipments, Other non-consumable articles) • Receipts & Payments Statement

Financial Accounting & Reporting at NRHM – State Level • Income & Expenditure A/c • Bank Reconciliation Statement • Register of Fixed Assets • Physical Stock Verification/Adjustments

Major Issues in SHS & DHS Accounting Receipts of Grants (Flexible Pool wise receipts of Grants i. e. RCH II, Add under NRHM, RI etc) Expenditure against grants Advances Pool wise / Facility wise & their aging Other incomes (Interest, Tender fees etc) Bank Reconciliation statements Fixed Assets Other Grants and Expenditure

Accounting of Grant receipts Current Liabilities Unspent Grant RCH II Add under NRHM RI Other Grants (At the Year/ Month end Amount equals to Expenditure in respective pool is transferred to indirect income)

Accounting of Expeditures Income & Expenditure Account Indirect Expenditure RCH II Add under NRHM RI Other Grants

ADVANCES CURRENT ASSETS LOANS & ADVANCES RCH II Add under NRHM RI Other Grants After Broad Grouping of Advances under above four pools various sub groups are also formed for reporting purposes such as advances to CHCs for JSY, to PHCs for JSY, Advances to SHCs under Untied funds

AGING OF ADVANCES In tally reports regarding aging of advances can be easily generated. This report shows no of days for which a particular advance is outstanding. So in this way we can track older advances and focus our attention to clear them as soon as possible. The major benefits of tally accounts in advance aging is that it mentions clearly exact no. of days for which any advance is outstanding at any point of time. No manual exercise is to be done for this purpose.

Category wise & Pool wise Grouping of advances Tally offers category wise and pool wise grouping of advances. This helps us to generate reports as : Ø Ø How much advances are lying to CHCs/ PHCs/ sub centers/ blocks under RCH Flexi pool or other pools How much advances are outstanding under Additionalities under NRHM Total Advances of all pools at any point of time These information may be generated at a click of button at any time.

BANK RECONCILIATION STATEMENTS (BRS) In tally there is an inbuilt facility to prepare bank reconciliation statements In traditional BRS one have to tick one by one checks through statements and its too lengthy procedure in case of DHS as BRS have more than hundreds of uncleared cheques.

Other benefits of tally accounting: It warns about negative cash immediately as soon as any expenditure is entered It doesn’t accept any wrong entry which creates any difference in Balance Sheets It automatically prepares Balance sheet, Income & Expenditure account. It reports for overdue receivables and overdue paybles

NRHM-Rajasthan State Health Society Current status (Up to 31 st July 2009) of Bank Balance & Advances of Rajasthan State Health Societies & District Health Societies. Operating of tally system in Rajasthan State Health Society, 34 District Health Societies and 237 Blocks

State & District Health Societies Status District wise Bank Balances & Advances as on 31 -07 -09 Amount in lacs Sr No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Name of District State Health Societies Ajmer Alwar Banswara Baran Barmer Bharatpur Bhilwara Bikaner Bundi Chittorgarh Churu Dausa Dholpur Bank Balance Advances 13308. 15 168. 69 574. 77 442. 39 167. 02 592. 41 390. 00 21. 51 312. 82 386. 87 223. 64 207. 65 338. 89 215. 83 424. 69 771. 56 354. 30 125. 20 313. 90 524. 87 352. 32 327. 09 118. 74 225. 56 325. 55 440. 11 254. 32

15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Dungarpur Hanumangarh Jaipur Jaishelmer Jalore Jhalawar Jhunjhunu Jodhpur Karauli Kota Nagaur Pali Pratapgarh Rajsamand Sawaimadhopur Sikar Sirohi Sriganganagar Tonk Udaipur TOTAL 444. 47 243. 99 652. 51 236. 71 574. 77 350. 64 121. 68 447. 98 320. 66 365. 49 141. 60 179. 41 178. 27 212. 15 202. 73 83. 49 254. 23 62. 27 44. 56 463. 31 22921. 80 255. 12 269. 54 650. 76 178. 15 215. 20 341. 95 336. 61 350. 51 322. 15 352. 37 483. 21 388. 31 196. 01 130. 26 237. 03 532. 35 227. 98 244. 14 399. 84 355. 55 11025. 25

Total Accounts Under NRHM 12889 Bank Accounts 2 Bank A/c SHS, Rajasthan 34 Bank A/c DHS 237 Bank A/c Block 365 Bank A/c CHC 1509 Bank A/c PHC 10742 Bank A/c SHC 1. All Bank Accounts operational. 2. E-transfer is functional at all districts and out of 237 Block A/c 200 are covered through E-transfer 3. We are negotiating talks with our Bankers to facilitate E-transfer/ RTGS at Block & CHC level.

FUND FLOW THROUGH E-TRANSFER GOI E-Transfer (State Health Society, Rajasthan) E-Transfer (District Health Societies) E-Transfer in 200 Blocks DD/Cheque in 37 Blocks DD Cheque in all CHC/PHC/SHS

Balance sheet FY 08 -09

Income & Expenditure FY 08 -09

RCH Flexible Pool Exp. FY 08 -09

NRHM Flexible Pool Exp. FY 08 -09

Closing Balance of NRHM Flexible Pool Advances DHS FY 08 -09

Closing Balance of NRHM Flexible Pool Advances DHS FY 08 -09

Closing Balance of RCH Flexible Pool Advances DHS FY 08 -09

Closing Balance of RCH Flexible Pool Advances DHS FY 08 -09

Unspent Grant FY 08 -09

Plan Outlay - Bikaner Activity RCH-II Add. R. I. Total District Blocks (5) 1427. 53 375. 26 505. 47 408. 91 48. 5 45. 73 1981. 5 829. 9

Releases from State Health Society to district Health Society Bikaner

Block Advance Summary (Opening Bal, funds released, Expenditure incurred and Closing balances

Aging of advances, the last column is showing no. of days for which advances are outstanding

Block Dungargarh Head wise expenditures under various schemes

CHC Wise MMBPLJRK Scheme Advances

Advances by blocks to PHCs/ CHCs Pool wise breakup

Advance by Block Bikaner to PHCs/ CHCs for JSY

Bank reconciliation statement prepared by tally

EXCEPTION REPORTS LIKE OVERDUE RECEIVABLES etc

Tally also shows no of vouchers like journal, payment etc

Plan Outlay – Jodhpur Activity RCH-II District Blocks (9) 2177. 58 1417. 822 Add. 622. 1 140. 65 R. I. 92. 35 301. 465 2892. 03 1859. 937 Total

Plan Outlay – Barmer Activity RCH-II District Blocks (8) 1484. 73 1369. 18 Add. 690. 72 506. 06 R. I. 72. 51 60. 03 2247. 96 1935. 27 Total

Expenditure Detail

Income & Expenditure Detail

Balance Sheet

Plan Outlay – Jaipur-1 Activity RCH-II District Blocks (8) 2504. 02 1845. 83 Add. 609. 75 593. 75 R. I. 40. 45 45. 1 3154. 22 2484. 68 Total

Releases from State Health Society to district Health Society Jaipur-I

Maintenance of Account at Block Level (Example of Block Amer-Jaipur)

Plan Outlay – Jaisalmer Activity District Blocks (3) RCH-II 470. 73 322. 96 Add. 234. 06 220. 64 R. I. 19. 39 16 724. 18 559. 6 Total

Grant Received Summary

Grant Received Details

Advance Given to Block

Advance Given to CHC/ PHC/Sub Centre/Other

Advance Given to CHC/ PHC/Sub Centre/Other

Expenditure

Income & Expenditure Statement

BALANCE SHEET

Grant Received Summary at Block

Advance given to CHC/PHC at Block

Expenditure at Block Level

SYNCHRONISATION DEMO NRHM Accounting Software

Steps for Synchronization DEMO STEP 1 : Install (DHS) NRHM Acc. SW STEP 2 : Configure District for Synchronization STEP 3 : Install Accounting SW on the Block->CHC/PHC side in a Separate Folder STEP 2 : Configure Block->CHC/PHC for Synchronization STEP 3 : Create Sync Rule on Block->CHC/PHC STEP 4 : Handshake Process from Block->CHC/PHC STEP 5 : Activate/Enable Sync Rule on District

The highlights of Accounting Software Data Synchronization § § § § Simple, efficient and cost effective mechanism. Simple installation and set-up. Simultaneous updating of data at District and Blocks. Single click for updating data. Synchronization using SW network environment. Synchronization over the Internet using a low bandwidth dial-up connection. Adaptable to an occasionally connected environment.

Data Synchronization in Accounting Software Data is transferred from the Blocks to the District and from the District to the Blocks. (on the basis of UC) Software offers control over the frequency of Synchronization i. e. , Data can be replicated after each transaction or updated at specific intervals. Data Synchronization is the process of replicating data between two or more locations using software in a Block – District environment. its to be implemented for easy analysis of financial report. It enables the branch offices to send data to the head office and vice versa, over the Internet or a private network. Data Synchronization flows both ways, all data of masters and transactions from the Blocks->CHC/PHC goes to the District and all similar data from the District gets copied to the Blocks.

Audit in NRHM Statutory audit of SHS, DHS and block was completed Performance audit by CAG for the period 2005 -06 to 2007 -08 CAG audit of EMRI completed Procurement review undertaken by Grant Thornton for 200507 period; Concurrent audit on a monthly basis being undertaken in all Districts and Blocks Concurrent audit of EMRI initiated

Conclusion Tally has brought down audit paras, synchronization would help further strengthening; Focus on Monthly FMRs at National Level for early policy corrections; Procurement Audit should be given priority; E Banking will cut down transaction time and help better liquidity management Annual Performance audit should be undertaken instead of cash audit