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Rural Water Supply and Sanitation Project for Low Income States

March 20, 2014March 20, 2014

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Some Basic Information

Financing Agreements signed on February

7, 2014

Implementation Period : 6 Years

Closing Date: March 31, 2020

Some Basic Information

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Source TotalIn Million USD

GoI and States 500International Development Association (IDA)

500

Total: 1000

Disbursement Categories

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Category

Amount of the Financing

Allocated

(Million SDR)

Amount of the Financing

Allocated

(Million US$)

 

Percentage of Expenditures

to be Financed

(Inclusive of Taxes)

 IDA

 

Goods, works, consultants’ services, training and Operating Costs under Parts A, B, and C of the Project

325.1 500 50% 

Goods, works, consultants’ services, training and Operating Costs under Part D of the Project

0 0 100%

Some Basic Information

Borrower to pay for IDA credit

Service Charge on principal amount drawn @

0.75% p.a.

Interest payable on withdrawn credit balance @

1.25% p.a.

Maximum commitment charges payable on un-

withdrawn credit @ 0.50% p.a.

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Important Documents

Financing Agreements

Project Agreement

Project Appraisal Document (PAD)

Project Implementation Plan (PIP)/Ops

Manual

Financial Management Manual (FMM)

Procurement Manual

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Financial Management In Bank-financed Projects

Borrower and implementing agencies to maintain adequate financial management systems to ensure proper financial accountability for the use of project resources.

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Financial Covenants

Maintain a financial management system including records and accounts; prepare financial statements as per sound accounting practices;

Ensure that all records are retained until at least 1 year after the Bank has received the last audit report for the project.

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Financial Covenants

Enable Bank’s representatives to examine such records

Have the records and financial statements for each fiscal year audited by auditors acceptable to the Bank

Furnish to the Bank not later than six months after the close of each fiscal year audited financial statements and auditor’s report thereon.

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Financial Covenants

Furnish to the Bank consolidated quarterly Interim Unaudited Financial Reports (IUFRs) in agreed formats no later than 45 days after the end of each Quarter

Release of funds by the Bank is based on expenditures reported in IUFRs

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Non-submission of audit reports

If audit reports are 4 months overdue, reimbursement of claims may be discontinued

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Fund Flow Structure

World Bank

MoDWS

GOI

Flow of Funds

DWSCs-DPMUs

SPMU, Assam

SPMU, UP

SMPU, Bihar

SPMU, Jharkhand

DWSCs-DPMUs

DWSCs-DPMUs

DWSCs- DPMUs

GoUP GOA GOJ GOB

Allocation of funds by SPMU to UP Jal Nigam / GP-WSCs/MVWSCs

GP-WSCs/ MVS-WSCs

GP-WSCs/ MVS-WSCs

GP-WSCs/ MVS-WSCs

GP-WSCs/ MVS-WSCs

UPJN

SWSM, UP

SWSM, Assam

SWSM, Bihar

SWSM, Jharkhand

UPJN

SSM

DSCs

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Accounting CentersName of

Accounting Center

Level Nos. Consolidation Units to be Consolidated IUFRs to be submitted to

Frequency of submission of

IUFRs

NPMU Centre 1 Yes 4 SPMUs World Bank Quarterly 

SPMU Assam State 1 Yes 7 DWSCs NPMU Quarterly

SPMU Bihar State 1 Yes 10 DWSCs NPMU Quarterly

SPMU Jharkhand State 1 Yes 5 DWSCs NPMU Quarterly

SPMU Uttar Pradesh

State 1 Yes 10 DWSCs NPMU Quarterly

DWSCAssam District 7 Yes GP-WSCs/MV-WSCs SPMU Quarterly

DWSC Bihar District 10 Yes GP-WSCs/MV-WSCs SPMU Quarterly

DWSC Jharkhand

District 6 Yes GP-WSCs/MV-WSCs SPMU Quarterly

DWSC Uttar Pradesh

District 10 Yes GP-WSCs/MV-WSCs SPMU Quarterly

Total   38        

Key Features of Accounting System

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Double entry cash based accounting system

Uniform chart of accounts for all spending units

Accounts to be maintained on Tally at SPMUs, DPMUs

Accounting at GPWSCs manual and basic

Eligibility for Reimbursement

Only paid expenditures. Not Advances

Secured mobilization advancesRetention money/security deposits

when paidAll taxes deducted and paid

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Expenditures that the Bank will not finance

Expenditures outside the scope of the Approved Annual Work PlanGoods works or services not procured in accordance with procurement guidelines of the World Bank. Land acquisition costs

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Internal Controls: FM perspective

Internal Control framework

No schemes can be undertaken unless approved by SLSSC

Annual Financial Audit by Chartered Accountant Firms

Biannual internal audit

Contract Management

Direct Confirmation from Banks on bank guarantees

Variation in contracts to be approved by appropriate authority

No objection by Bank for variation in prior review contracts beyond 15% threshold

Contract ledger to be maintained for all contractors.

Timely payment to contractors

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That’s all !