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Measures to Utilize Services of Deptt. Financial Adviser

The following measures are prescribed to utilize the services of the departmental Financial Adviser system in exercising oversight for the effective functioning and financial management of such organisations.

Published in Finance

Government of West Bengal
Finance Department
Audit Branch

No. 3282-F(Y) Dated, 23rd June, 2014

MEMORANDUM

Departmental Financial Adviser (FA) system was introduced vide Finance Department memo no. 152-FB dt. 27.4.12 read with no. 1056-FB dt. 10.9.12 with delegated power of approval upto Rs. 10 crore for release of funds under plan head.

Optimal utilization of the services of Financial Advisers (FA) and Deputy Financial Advisers (DFA), in respect of functioning of Companies, Statutory Corporations, Statutory bodies and other parastatals which are partially or wholly owned or controlled by the State Government, has been under consideration of the State Government for some time now.

The undersigned is, therefore, directed by order of the Governor to prescribe the following measures to utilize the services of the departmental FA system in exercising oversight for the effective functioning and financial management of such organisations.

1. The departmental FA shall be involved in the release of grants, loans, subsidy, investment and incentive to these organisations;

2. The departmental authority while sanctioning grant-in-aid, including subsidy and incentive, loans and investment shall not only take into account the internally generated resources but also shall consider laying down targets for internal resource generation by the grantee Institutions or Organisations every financial year, particularly where grants are given on a recurring basis. The Administrative Department may for this purpose utilize the service of Financial adviser/ Dy. Financial Adviser by associating the departmental FA/ DFA with the organization to-

(i) assess the financial health of the organization;
(ii) advise measures for its improvement;
(iii) issue necessary advice to the financial wing of the organization;
(iv) regulate/ monitor its compliance; and,
(v) report any gross deviation from the advice to the departmental authority who in turn may take up with CEO/ MD of the organization for corrective measures.

While sanctioning and releasing subsidy, incentive, loans and investment, the department shall ensure concurrence of Finance Department unless such power has been delegated to the departmental authority.

3. The departmental Financial Advisers are required to submit to Finance Department (FD) Plan grant release report in such form as may be prescribed by the FD from time to time. The FA in turn shall prescribe for submission by the organizations, of progress report of utilization of the fund in such form and at such interval in synchronization with the periodicity of report submission by the FA to the FD, as may be prescribed by the FA to the organizations.

4. The departmental FA or DFA may supervise finalisation of Annual Accounts of the Companies, Corporations and other parastatals and its submission in such form as prescribed under the Companies Act, in case of Government Companies/ Corporations registered under the Companies Act, or in such form for other parastatals as may be prescribed under the rules and regulations framed under the concerned statute in case of statutory organizations and in case of others as may be prescribed by the Finance Department.

5. FA or DFA of the Administrative Department should be co-opted as a Special Invitee in the meeting of Board of Directors and Committees dealing with financial matters to enable the FA to carry out the additional responsibilities as enumerated above. FA’s presence will be in addition to the representative of the Finance Department on the Board.

6. Departmental FA and DFA will monitor regular submission of replies to the audit paras of the Auditors of CAG and compliance with suggestions/ instructions issued by the AG (Audit), West Bengal/ CAG, as well as submission of the audited financial statements and reports related to the parastatals to the Legislative committee.

Sd/-H.K. Dwivedi
Principal Secretary to the
Government of West Bengal

No. 3282-F dated 23.06.2014, Source