A WORKSHOP ON FINANCIAL
MANAGEMENT
IN
HYDROLOGY PROJECT – PHASE-II
Gujarat Water Resources Development Corporation Ltd.
GWRDC
GANDHINAGAR
(GW Component GUJARAT)
FINANCIAL MANAGEMENT IN
HYDROLOGY PROJECT (PHASE-II)
LOAN NO. 4749-IN
TOTAL PROJECT COST RS. 55559 LACS.
TOTAL COST OF GW COMPONENT-GUJARATRS.1044 LACS
PROJECT SPAN : 6 YEARS
STARTING FROM 2006-07 TO 2011-12
PROJECT COST DETAILS FOR
GROUND WATER COMPONENT
(GUJARAT)
I:
INVESTMENT COST
SR.NO.
CATEGORY
TOTAL COST (RS. IN LACS)
1
WORKS
124.09
2
GOODS
322.19
3
TRAINING
162.30
4
CONSULTANCY
94.82
TOTAL - I:
703.40
II:
RECURRENT COST
1
O & M WORKS
15.97
2
O & M GOODS
4.75
3
STAFF
225.27
4
O & M OFFICE
65.02
5
O & M VEHICLES
29.63
TOTAL COST : I + II
RS.1044.04
Hydrology Project Phase-II
A B S T R A C T CATEGORY WISE
Detailed Base Cost
I. INVETMENT COST
CATEGORY
(GUJARAT - GW)
(Rs. In lacs)
TOTAL
YEAR
2006
2007
2008
2009
2010
2011
WORKS
0
29.79
37.19
38.76
12.06
6.30
124.09
GOODS
33..51
93.20
89.61
62.28
27.21
16.40
322.19
TRAININGS
23.86
34.57
31.73
27.88
24.06
20.22
162.30
C O N S U LTAN CY
7.27
20.95
26.06
19.22
13.51
7.82
94.82
T OTAL
64.63
178.50
184.58
148.13
76.84
50.74
703.40
INVESTMENT COST
II. R E C U R R E N T COST
O & M Works
2.46
2.46
2.56
2.77
2.87
2.87
15.97
O & M Goods
0
0
0.46
1.23
1.53
1.53
4.75
Staff
19.65
35.34
44.17
52.99
45.40
27.74
225.27
O & M Office
4.72
10.82
16.15
20.75
10.11
2.45
65.02
O & M Vehicles
1.02
4.09
6.13
6.13
6.13
6.13
29.63
T OTAL R E C U R R E NT
COST
27.85
52.71
69.47
83.87
66.04
40.72
340.64
92.48
231.21
254.05
232.00
142.88
91.46
1044.04
GW
T O T A L H. P. - I I
PROJECT
COST
CAPITAL
RECURRENT
703.40
67%
340.64
33%
Rs. 1044.04 Lacs
Consultancy
94.82
13%
Works
124.09
18%
Training
162.30
23%
Goods
322.19
46%
Rs. 703.40
Lacs
CAPITAL
COST
RECURRENT
COST
O&M
Office 65.02
O&M
Works 15.97
O&M
Goods 4.75
O&M
Vehicles
29.63
Staff 225.27
Rs. 340.64
Lacs
FINANCIAL TARGETS FOR F.Y.2006-2007
I
(RS. IN LACS)
INVESTMENT COST
SR.N
O.
CATEGORY
ESTIMATED
BASE COST
(2006-07)
ANTICIPATED
EXPS. 2006-07
REMARKS
1
WORKS
0
0
2
GOODS
33.51
21.28
For procurement of Goods, CGW
is, Faridabad, vide letter
dt.21/6/06 has stated that
procurement can be made after
specification is finalized by
specification committee to be
constituted by MOWR, Delhi.
3
TRAINING
23.86
9.56
Training for onsite sampling
analysis under water Quality
Procedure @ WALMI will be
completed by September-06
and Govt.of Gujarat has
approved Rs.9.56 lacs for the
same.
4
CONSULTANCY
Total :-
7.27
0
64.64
30.84
FINANCIAL TARGETS FOR F.Y.2006-2007
SR.NO
.
II
CATEGORY
ESTIMATED
BASE COST
(2006-07)
ANTICIPATED
EXPS. 2006-07
(RS. IN LACS)
REMARKS
RECURRENT COST
1
O & M WORKS
02.46
0.00
2
O & M GOODS
0.00
0.00
3
STAFF
19.65
26.06
4
O & M OFFICE
04.72
0.00
5
O & M VEHICLES
01.02
0.00
Total : II
27.85
26.06
GRAND TOTAL : I + II
92.49
56.90
Increment staff cost is estimated to be of Rs.26.06
lacs and considered from July-06 onwards.
Anticipated Expes. For the first year of project
span is less than estimated Exps. But will be
absorbed on spill over works.
HYDROLOGY PROJECT – PHASE-II
GW-COMPONENT
DISBURSEMENT ARRANGEMENT :
Function of GROUND WATER COMPONENT IS UNDER the control of Principal
Secretary, Narmada Water Resources, Water Supply and Kalpasar Department
Gandhinagar (Gujarat). The Funds are allocated as per Budget provisions in Annual
Budget of the Deptt. Budget provision for the year 2006-07 for Hydrology Project
amounts of Rs.29.90 lacs. Whereas,Targated expenditure for the year 2006-07 is
Rs.56.90 lacs. Remaining amount is expected to be provided by the Govt. of Gujarat
in supplementary budget Allocations.
Govt. of Gujarat is allotting Funds as per requirement of the project hence, the
allocation of fund is not the hurdle in Implementing the project.
HYDROLOGY PROJECT – PHASE-II
GW-COMPONENT
REPORTING FORMATS :
(1)
SOE (Statement of Expenditure)
Like HP-1 Project, SOE will be prepared with full documentation and supporting vouchers and submitted to
Government of Gujarat considering eligible expenditure at prescribed % for financing.
Sr.No.
Expenditure Category
Financing Percentage
1
Civil work
90%
2
Goods including equipments Machinery, Vehicles,materials
100% Foreign Exps.
100% Local expenditure (Ex. factory)
80% Local expenditure procured locally.
3
Consultancy Charges
90%
4
Training
100%
5
Incremental operating costs including salaries
80% up to 31-3-2007
75% up to 31-3-2008
60% up to 31-3-2009
50% there after
(2) Quarterly Progress Report :- (QPR)
Physical and Financial Quarterly progress reports will be prepared and submitted to Govt. of Gujarat
for Further disposal.
HYDROLOGY PROJECT – PHASE-II
GW-COMPONENT
ACCOUNTS AND AUDIT :
(A) Accounts : GWRDC Ltd., is a wholly owned Govt. company within the
meaning of section 617 of the companies Act, 1956. As such Accounts are prepared on
Accrual basis and as per Mercantile System of Accounts. So for as Hydrology Project-II is
concerned Accounts of the project will be maintained on CASH BASIS OF ACCOUNTS
and expenditure will be classified as per
a)
Budget head of account and
b)
Disbursement category
Also, prescribed registers will be prepared at each unit level and all concerned
accounts personnel will be trained with the requirement of Financial Management as
prescribed.
(B)
Audit : As stated in (A) above, being a Govt. Company, accounts of the corporation
are audited by statutory Auditors appointed by comptroller and Auditor General of India, New Delhi
and Supplementary Audit is also conducted by C & A.G. More over, Internal Audit is carried out by
the experienced firm of Chartered Accountants.
In HP, -1 project
GWRDC Ltd., got audited the Hydrology project expenditure through a firm of Chartered
Accountants and prescribed audit reports were submitted to MOWR. Likewise, audit of HP-II will be
carried out by the firm of Chartered Accountants and reports of the auditors will be submitted within
reasonable time limit.
HYDROLOGY PROJECT – PHASE-II
GW-COMPONENT (GUJ.)
FINANCIAL MONITORING :
1) Adequate provision of funds will be made through Budget provisions of
Govt. of Gujarat during Project Span of 6 years starting from 2006-07.
2)
Procurement of goods, equipments, materials, machinery, hiring of
consultants will be done as projected and as per the Bid documents, bid
procedures etc., as done in HP-1 project and as per prescribed procedure.
3) Expenditure incurred will be monitored with reference to estimates made
and on components of the project.
4) Required Information will be collected and submitted to the concerned
Authorities on due date.
Proper Accounts will be maintained for which training will be given to
concerned Accounts personnel of each Implementing units.
The Presentation reveals
the Financial Management for HP – II
by the
Gujarat State
Gujarat Water Resources Development Corporation
Ltd.
(GWRDC Ltd)