No. J-11060f8/201:0-NREGAGoyel1lment of-India

Ministry of Rural DevelopmentDepartment of RUral Dev-elopment

Krishi Bhawan, New DelhiDate: .1~:12.11

To,PrincipalSccretary/SecretaryRural Development Department-All-&tateslUTs

'Sub: Pre-requisites for ,teleas~e of ind Tranche of Central Share under'MGNREGA duriilg2011-12

Madam/Sir,

This is in reference to release of 2nd Tranche of eentral.fundsutid.er,Mahatma GandhiNREGA during FY 20H-12, The :St~t~s!uTs-ha:v.estarted submittingproposals forrelease.of Z'"Tranche/balance of agreed to LB. Inmany occasions" the States/U'Is, while submitting financialproposals to theN!inrstt"y" do not resort to a detailed examination of pre-requisites and relevantsupporting documentsliliformafionrequired fcrteleaseof'centsal funds under MGNREGA.

2. Since-part corapliance/non-compliance of'pre-requisites causes Unwarranted and avoidabledelays in 'the. release of central funds, State&rUTs arerequested to ensure compliance of allconditionalities as laid-down under :;MONREGA. Based on the deficiencies generally noticed inthe proposalsexamined in this MirdstJ;y~ a cbmpt~4.~nsivechecklist on prerequisites underMGNREGA has, been prepared (ccppy enclosed), This checklIst would .not only ease the process ofexamination or proposals at the State level. but also considerably lessen the processing time at theMinistry.

3. Keeping in VIew the significance of smoothand timelyrelease ofcentral funds underMGNREGA, Statee/U'Is are' requested to examine their respective financial proposals at theirlevel on the' basis of theenclosed checklist and to forward only those proposals to the Ministrywhi eh are complete in allrespect. . . .

Your~lff.ithfully,

. Jft\ Ivr . l1,(D; ~. :r~in1~l\~

Joint Secretary (MGNREGA).'

Encl: As above

/I Annexure

SN Indicator Response RemarksI Is the expenditure in FY 2011-12 more than 60 % of rota I Available Fund?2 Is the updated physical progress incorporating employment generated (person days) and

number of House Hold covered provided with the proposal?3 Has the updated financial progress report 'been submitted?4 Has the Utilisation Certificate (UC) 2011-12 (provisional updated) been furnished in the

prescribed format (Form 17-B)?4.1 Tfyes, does it have information on actual expenditure, administrative expenditure, expenditure

on material, no. of person days generated and households covered? _._--4.2 Are UC and Audit Report (AR) for 2010-11 furnished with this proposal?4.3 Are Opening Balance (OB) and Closing Balance (CB) in AR, UC and Monthly Progress

Report (MPR) for FY 2QI0-11 consistent with one another?, ,

4.4 Is OB in ARlUC for FY 2010-11 consistent with CB in ARlUC for FY 2009-1 O?

4.5 Whether AR indicates balances with the Implementing Agencies and the same has beenincluded in the CB in the UC?

4.6 Is the cost per person-day employment generation equal or less than the upper cap cost asagreed to in the Labour Budget?

5 Has the State Govt. examined the UCs and AR before sending the proposal to the Ministryseeking release of funds?

6 Are there any Audit Paral observations pending for action by the StatelDistrict?7 Has the MoRD ever advised the State/District to conduct a special internal audit?7.1 If yes, whether such audit has been conducted and report submitted?8 Is wage and material ratio maintained within the prescribed level of 60:40?9 Has any household been provided employment more than 100 days?9.1 If yes, is the excess expenditure (i.e. excess wage payments, material and administrative

expenses) estimated and recouped to the MGNREGA account by the State?10 Are the wages equal to the notified wage rate paid to MGNREGA workers?10.1 If the wages are being paid in excess of the notified wage rate, is the excess expenditure has

been estimated and recouped to MGNREGA account.11 Is the wage payment consistent with the approved working hours under MGNREGA?12 Has the State Share in FY 2011-12 been released in full?12.1 If yes, whether proof (certificate from bank where MGNREGA alc is maintained) of such

transfer of State share is submitted with the proposal?13 Has the State/District received funds other than central share and State share?13.1 If yes, are the sources of such funds mentioned in the UCs & ARs?14 Was there any diversion of funds from the MGNREGA account during 2010-11 and 2011-12

or during earlier years? If so, provide a status on recoupment of such sums.15 Was there any embezzlement/misappropriation of MGNREGA funds during, 2010-11 and

2011-12 or in earlier years? If so, action taken in this matter need to be submitted.16 Are the certificates on non-diversion and non-embezzlement of programme funds furnished?17 Has the MIS expenditure reporting; reached 100% level?18 Whether Bharat Nirman Raiiv Gandhi Sewa Kendras in all GPs have been constructed?19 Is there any complaints/VIP references pending against the State/District for resolution? If so, a

status note on number of complaints/references pending and duration of pendency should beprovided.

19.1 If yes, whether details of action proposed/taken so far complaint-wise have been furnished?20 Are the social audits regularly (at least twice in a FY) being held? Please indicate number of

social audit so far conducted.20.1 Are the findings of such social audits uploaded on to the MIS and Action taken within the

stipulated period (3 months)?21 Are ombudsmen instituted in all the districts?22 Were there any specific conditions mentioned in the Sanction order wb ile releasing the 1st

Tranche of Central Share?22.1 If yes, whether these conditions were complied with and details submitted with the proposal?

Check list on pre-requisites/documents for release of 2nd Tranche 2011-12(For State without State Employment Guarantee Fund)

AnnexureCheck list on pre-requisites/documents for release of2od Tranche 2011-12

(For State with State Employment Guarantee Fund)SN Indicator Response Remarks

1 Is the expenditure in FY 2011-12 more than 60 % of Total Available Fund?2 Is the updated physical progress incorporating employment generated (person days) and

number of House Hold covered provided with the proposal?3 ·Has the updated financial progress report been submitted?4 Has the consolidated Utilisation Certificate (UC) 2011-12 (provisional updated) been

furnished in the prescribed format (Form I7-B)?4.1 If yes, does it have information on actual expenditure, administrative expenditure,

expenditure on material, no. of person days generated and households covered?4.2 Is a consolidated UC for 2010-11 furnished with ~proposal?4.3 Has the State Govt. examined the UCs and Audit Reports (ARs) received from all the

districts before sending·the proposal to the Ministry seeking release offunds?4.4 If yes, is a certificate-to the effect that 'UCsIARs .for the year 2010-11 from all the

districts have been received, examined and found to be in order' submitted with thisproposal?

4.S Whether AR indicates balances with the Districts and other Implementing Agencies andthe same has been included in the CB in the UC?

4.6 Are Opening Balance (OB) and Closing Balance (CB) in UC and Monthly ProgressReport (MPR) for FY 20 I0-11 consistent with each other?

4.6 Is OB in UC for FY 2010-11 consistent with CB in UC for FY 2009-10?4.S Is the cost per person-day employment generation equal or less than the upper cap cost as

agreed to in the Labour Budget?S Are there any Audit Paral observations pending for action by the State/District?6 Has the MoRD ever advised the State/District to conduct a special internal audit?6.1 If yes, whether such audit has been conducted and report submitted?7 Is wage and material ratio maintained within the prescribed level of 60:40?8 Has any household been provided employment more than 100 days?9 If yes, is the excess expenditure (i.e. excess wage payments, material and administrative

expenses) estimated and recouped to the MGNREGA account by the State?10 Are the wages equal to the notified wage rate paid to MGNREGA workers?10.1 If the wages are being paid in excess of the notified wage rate, is the excess expenditure

has been estimated and recouped to MGNREGA account.1I Is the wage payment consistent with the approved working hours under MGNREGA?12 Has the State Share in FY 2011-12 been released in full to Districts?12.1 If yes, whether proof (certificate from bank where MGNREGA alc is maintained) of such

transfer of State share is submitted with the proposal?13 Has the State received funds other than central share and State share?13.1 If yes, are the sources of such funds mentioned in the UCs & ARs?l4 Was there any diversion of funds from the MGNREGA account during 2010-11 and

2011-12 or during earlier years? If so, provide a status on recoupment of such sums.IS Was there any embezzlement/misappropriation of MGNREGA funds during 2010-11 and

20 I 1-12 or in earlier years? If so, action taken in this matter need to be submitted16 Are the certificates on non-diversion and non-embezzlement of programme funds

·furnished?17 Has the MIS expenditure reporting reached 100% level?18 Whether Bharat Nirman Rajiv Gandhi Sewa Kendras in all GPs have been constructed?19 Is there any complaintslVIP references pending against the StatelDistrict for resolution? If

so, a status note on number of complaintslreferences pending and duration of pendencyshould be provided.

19.1 If yes, whether details of action proposed/taken so far complaint-wise have beenfurnished?

20 Are the social audits regularly (at least twice in a FY) being held? Please indicate numberof social audit so far conducted.

20.1 Are the findings of such social audits uploaded on to the MIS and Action taken within thestipulated period (3 months)?

21 Are ombudsmen instituted in all the districts?22 Were there any specific conditions mentioned in the Sanction order while releasing the I st

Tranche of Central Share?22.1 ·If yes, whether these conditions were complied with and details submitted with the

proposal?

ANNEXURE 8-17

UTILIZATION CERTIFICATE FOR CASH COMPONENT

FOR THE yEAR •••••.••.••.•••••.•.••••..• UNDER NREGA

(REFERENCE: PARA 7.3.7 (A)

District of State.Utilization Certificate for the Year. .1) Unspent Balance for previous

year(*)a) Under SGRY Rs Lakhb) Under NFFWP Rs Lakhc) Under NREGA Rs LakhTotal (a+b+c) Rs .......•...•. Lakh2) Grant received during the Year ....••.•Under NFFWP/NREGA Rs lakh (*)

(Rs. in Lakh):, Compiete Letter: ' . No. ~ Date'

Centre I Stat-e

i)

ii)

jjj)

3) Miscellaneous receipts of theAgency, if any under NFFWP/NREGARs Lakh

4) Total funds available: (1 +2+3)Rs Lakh

(*) Information of NFFWP & SGRY willnot be relevant

. "'.

Certified that a sum of Rs ~ lakhs(Rs ) was received by the'District as Grants-in- Aid during :.:.;~from the Govt. of India vide Ministry of ~ '5 letterNo. & Date given on the margin under NFFWP(*)/NREGAand Rs From the State Government vide letterNo " dated Further a su~'of Rs (Rs only) being unspentbalance of the previous year..... was allowedto be brought forward for utilization during the currentyear.............. The miscellaneous receipt of theagency during the year were Rs ................................................ Iakh.

It is also certified that out of the above mentioned total funds ofRs (Rs ) a sum ofRs (Rs )has been utilised by the District during.: forthe purpose for which it was sanctioned out of which, an amountof Rs (in words) hasbeen utilized on Administrative Contingency permissible under,the NREGA. It is further certified that the unspent balance ofRs (Rs )remaining at the end of the year will be utilised for theprogramme during the next year.

3. Certified that I have satisfied myself that the conditions on which funds was sanctioned have been dulyfulfilled/are being fulfilled and that I have exercised following checks to see that the money has beenactually utilised district-wise for the purpose for which it was sanctioned:

Kind of checks exercised:

(i) The Agency's statement of Accounts forthe year duly audited by the Chartered Accountanthave been obtained and sanctioned.

(ii) The Utilization Certificates and Audit/Inspection Reports for the prescribed year of the district havebeen obtained and duly scrutinized.

(iii) It has been ensured that the physical and financial performance under NREGA has been according tothe requirement, as prescribed in the guidelines issued by Govt. of India/State Government.

~.SE. i LHi:: ~:ATIONAL RUR}..L EMPLOYMeNT GUARAl'iTEE ACT, 2005

(1.------------------ .•~(iv) Certified that muster rolls in all works under NREGA have been maintained correctly.

(v) Certified that only permissible items of WOf<S under Schedule I of NREG Act have been taken up.

,/ (vi) The utilization of the aforesaid fund resulted into the fdlowing:

a) Physical output

i) No. of Mandays Generated :- (In lakhs)

ii) No. of households provided employment :- .

b) Outcomes

i)

'~~;~,;'K'~~\;,'.....•:"o::.~r:.::~dl~fii:;·.'\:'·'"~~;,~;;..'c :' .••.•.• :.~

Water conservation and water harvestingDrought proofing

/

Micro irrigation worksProvision of irrigation facility to land owned by SCs & STs and lAYbeneficiaries

Renovation of traditional water bodiesLand developmentFlood control and protectionRural connectivityAny other activity (approved by MRD)Total

ii) No. of households completed 100 days of employment .

Signature:

Name .

Office Stamp of the District Programme

Coordinator of the concerned District

/

Dated:

~ ~ ~ oSe';- 2-'2-3 8l{S7~

PtS -9 ~,~J,--ol'3

ANNEX B i 159