FUNDS FLOW MECHANISM (Existing) SSA –Funds Flow Arrangement (Existing) MHRD BUDGET FOR SSA STATE IMPLEMENTATION SOCITIES AS PER AWP&B DISTRICT Levels BRC- CRC SMC FUNDS FLOW MECHANISM (NEW FRM 2014-15) SSA –Funds Flow Arrangement MHRD BUDGET FOR SSA STATE GOVERNMENT(AS PER AWP&B) (Thru State Education Deptt) STATE IMPLEMENTATION SOCEITIES DISTRICT LEVELS FUNDS FLOW MECHANISM • New system would require existing roles to be further modified IN RESPECT OF MHRD STATE GOVT/UT and Its implementing Deptt SSA IMPLEMENTING SOCIETIES FUNDS FLOW MECHANISM Role of MHRD • Release of fund directly to the State Govt. under NonFunctional Budget Head (3601) • Other activities shall continue to remain the same • Approval of AWP&B • Supervision and monitoring of releases, expenditure, progress of civil works outstanding advances and QPR.MMR ETC • Requirements of external funding partners, • Audit reports submission, IUFRS • Review by JRM FUNDS FLOW MECHANISM • Role of State Govt. • State Govt would continue to release the State Share • Budget allocation under functional Head in the State Budget as per AWP&B • Releases to implementing deptts/societies • Promptly by the State Govt including State Share in separate existing Bank Account • Submission of UC to MHRD • Regular and timely Audit by State AG(Audit) FUNDS FLOW MECHANISM • Role of Implementing Deptt./Societies • To continue to comply with all the requirement of FMP Manual • Preparation of Procurement plan both for District and State • Expenditure to be strictly according to interventions as per AWP&&B • Compliance of Audit Observations FUNDS FLOW MECHANISM Discussion points • Provision of adequate Budget including State Share • Whether Modalities has been already worked out by the State Govt /Deptt –Procedure to be followed. • Procedures under other CSS schemes. • SIS TO Ensure Budget Allocation as per the AWP&B • To ensure meeting of expenditure of 50% for release of subsequent instalments. • Treatment of Unspent balances both at the District level and State level • Utilization certificate submission Allocation to Scheduled Caste Sub-plan (SCSP)and Tribal Sub-plan (TSP) MHRD allocates 20% of the outlay on SCSP&10%on TSP For compliance of NMC for education of SC,ST and persons with disability, Need to capture expenditure on the following principles. i) Components of SSA that benefit the SC&ST Children Free Text Books, Free Uniforms etc. Be accounted for under SCSPC & TSP components of that State/District expenditure. ii) Components of SSA that benefit all section including SC&ST, the cost may be apportioned to proportion of SC/ST population and included in SCSP&TSP State/District expenditure. iii) For schools opened in habitations where 40% of the population is either Sc or ST and combined population of SC/ST is not less than 40%the entire expenditure made under all components of SSA should be booked under SCSP & TSP provided 70% of the children enrolled are from SC/ST or both categories. Allocation to Scheduled Caste Sub-plan (SCSP)and Tribal Sub-plan (TSP) iv) For schools opened in habitations where SC and ST together account for 40%or more of the population and the enrolled children taken together account for more than 70% of the population the costs can be booked under SCSP&TSP in proportion of the population. v) For schools which are not SC or ST dominant habitations but where 50% children enrolled are from SC/ST or combined categories the costs be booked to TSP & SCSP in proportion to their population plus 20%of the cost. vi) The modalities and the parameters for calculations and collection of this information to SSA State Expenditure statement will be collected and monitored from the First quarter of 2014 -15.