Technical Education Quality Improvement Programme

1
Technical Education Quality Improvement Programme

• Workshop on Revision of Financial Management
  Report
• 30th December, 2005

2
Focus of Workshop

• Revision of Financial Management Report (FMR)
• Obtaining Feedback and Suggestions from SPFUs
  and State Institutions
• Finalization of FMR formats
• Understanding Co-relation with Monthly Progress
  Report and Reimbursement Claims
• Maintaining accuracy in Reporting

3
Importance of FMR

• To comply with the legal covenant
• Review the Progress during the Quarter
• Projection of appropriate future requirement of
  funds
• To reconcile reimbursement Claims with the
  expenditure during the Quarter

4
Status of FMR

• Three FMRs have been submitted to the World Bank
• 1st FMR - Quarter ending 31st March 2005-
  unacceptable
• 2nd and 3rd FMRs - Quarter ending 30th June 2005
  and September 2005 still erroneous
• 4th FMR - Quarter ending December 2005 is due

5
Purpose of Revision in FMR

• To make it user friendly
• Simplify the formats
• Modify based on past experience
• Feedback received from SPFUs and Institutions
• Submission of Correct FMR to World Bank

6
Revised Formats
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Financial Management Report (FMR)

• Formats of FMR
• FMR 1 Comparison of Actual
  expenditure with Planned expenditure
  
• FMR 2 Forecast of Expenditure for next six
  months
• FMR 3 Utilization of funds
• FMR 4 Contract wise Expenditure details

8
Financial Management Report (FMR)

• Common details
• Name of State
• Quarter from dd/mm/yy to dd/mm/yy
• (01-10-05 to 31-12-05)
• IDA CR No. 3718-IN
• Amount should be shown in Million only
• Amount should be calculated up to 3 decimal
  points only

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Programme Components

• Component - I
• Institutional Development
• (for Institutions only)
• Promotion of Academic Excellence
• Networking of Institutions
• Services to Community and Economy

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(Applicable for all State Institutions)
Category 1

• Component I
• Institutional Development
• Civil Works
• Equipment
• Furniture
• Vehicle
• Books and LRs
• Consultancy and research studies/audit fee
• Training/fellowship/study tours/workshops
• Salaries of agreed additional staff
• Consumables
• Operation and Maintenance
• Networking of Institutions
• Services to Community and economy

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Programme Components

• Component II
• System Management Capacity Improvement
• (Applicable for SPFU only)
• Category 2 Goods (Equipment, Furniture,
• Vehicle)
• Category 3 Books and LRs
• Category 4 Consultancy and research
• studies/ audit fee
• Category 5 Training/fellowship/study
  tours/ Workshops
• Category 6 Incremental Operating Cost
  (Salaries of agreed additional staff
  Consumables, Operation and
  Maintenance)

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FMR 1

• Review of financial Progress during the quarter
  and compare it with expenditure planned to know
  the variance
• Analyze Variance
• Find Reasons
• Evolve solutions to minimize variance

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Preparation of FMR 1

• Col 1 Category No As Printed in format
  
• Col 2 Component / Category As printed in
  the format
• Expenditure Planned (How much was planned for the
  quarter under reporting)
• Col 3 During the Current Quarter
• Col 4 Cumulative including current Quarter
  since inception

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Preparation of FMR 1

• Actual Expenditure (Match with 3 months
  expenditure reported in the Monthly Progress
  report and Reimbursement Claim)
• Col 5 During the Current Quarter
• Col 6 Cumulative including Current Quarter
  since inception
• Variance Difference between Planned and Actual
  expenditure
• Col 7 During the Current Quarter ( 3 - 5)
• Col 8 Cumulative including Current Quarter
  since inception ( 4 - 6)

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FMR 2

• Forecast of Expenditure for next six months
• To Facilitate World Bank to keep reserve for
  disbursement
• Involvement of officers in forecasting
• TEQIP Coordinator
• Nodal officers (Finance, Civil works, Goods and
  Academic)
• Head of the departments of areas that are given
  in CIP

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Preparation of FMR 2

• Col 1 Category No. - As printed in the
  format
• Col 2 Disbursement Category As printed
  in the format
• Col 3 Expenditure Planned for the next
  First Quarter
• Col 4 Expenditure Planned for the next
  Second Quarter
• Col 5 Total for Next Six month ( 34)
• Col 6 of Reimbursement - As printed in
  the format
• Col 7 Required Eligible amount for
  reimbursement for six month (56/100)

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FMR 3

• Utilization of funds

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Preparation of FMR 3

• Col 1 Category No. - As printed in the format
• Col 2 Disbursement Category- As printed in the
  format
• Col 3 Expenditure incurred during the Quarter
  
• Col 4 IDA financing percentage of
  reimbursement- As printed in the format
• Col 5 Amount Eligible for Reimbursement
• ( 34)/100
• Col 6 US equivalent withdrawn from the
  Special Account Leave it blank
• Col 7 Exchange rate ( US 1 equal to ) Leave
  it blank
• Col 8 Remarks

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FMR 4 Contract wise expenditure details

• To be used for expenditure equal to or more than
• US 300,000 for Civil works (Rs 1.35 crore
  approximately Rs 13.50 million)
• US 300,000 for Goods (Rs 1.35 crore
  approximately Rs 13.50 million)
• US 100,000 for consulting firms (Rs 45 lakhs
  approximately Rs 4.50 million)
• US 50,000 for individual consultant (Rs 22.50
  lakhs approximately Rs 2.25 million)

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Preparation of FMR 4

• Col 1 Particulars
• Col 2 Name of Contractor / Supplier/
  Consultants address ( if USA, please
  also
• indicate the city and state )
• Col 3 Method of Procurement Write ICB/NCB/
• QCBs etc. (No ICB in Civil Works)
• Col 4 Bid Invitation Date
• Col 5 Bid Opening Date
• Col 6 Contract signing Date
• Col 7 Contract Completion Date
• Col 8 Contract Value
• Col 9 WBR No
• Col 10 Currency and amount paid during this
• Quarter
• Col 11 Cumulative amount paid to-date
  
• Col 12 Remarks, if any

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Submission of FMR

• Quarterly Submission (each year)
• 1st Qtr ending June - by 31st July
• 2nd Qtr ending Sept by 31st Oct
• 3rd Qtr ending Dec - by 31st Jan
• 4th Qtr ending Mar - by 30th April

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Thanks