Aid Accounts & Audit Division Government of India
Description: Aid Accounts Audit Division Government of India Website: www.aaad.gov.in Outline Part A Details of External Assistance Part B Functional aspect Part A GOI policy on External Assistance Guide lines issued in 2005 on Bilateral Assistance
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slide1. Aid Accounts & Audit Division
Government of India Website: www.aaad.gov.in<br>
slide2. Outline Part A
Details of External Assistance
Part B
Functional aspect<br>
slide3. Part β A<br>
slide4. GOI policy on External Assistance Guide lines issued in 2005 on Bilateral Assistance emphasize reduced reliance on external assistance
Bilateral Assistance accepted only from G-8 countries and EC; tied aid not accepted.
Channelization of external assistance from smaller partners (other than those mentioned above), through multilateral organizations to promote greater aid harmonization
Countries can provide bilateral development assistance directly to autonomous institutions, universities, NGOs, etc.<br>
slide5. Facts GOI o/s External Sovereign Debt as on 31st March 2012 at US $ 63.37 Billion
2011-12: Receipts at US$ 5.14 (US$ 4.57 Loans and US$ 0.56 grants) Billions and repayment at US$ 3.35 (Principal US$ 2.67 and interest & commitment US$ 0.68) Billion
2012-13: Receipts estimated at US$ 5.44 (US$ 4.90 Loans and US$ 0.54 grants) repayment at US$ 3.74(Principal US$ 2.99 and interest &commitment US$ 0.75) Billion
External sovereign debt as %age of GDP for 2011-12: 3.62%<br>
slide6. Bilateral Donors All figs. In millions of US Dollar<br>
slide7. Multilateral Donors All figs. In millions of US Dollar<br>
slide8. Maturity Profile and Terms of Loans Note: Does not include other charges such as commitment fees
* 0.01% for Consultancy and 0.65% for environmental.
** Current being 0.75% for treasury portion and 2.49 % for bank portion.
@ New IDA terms and conditions: Under Blend/Harden Terms apart from Service fee of 0.75% Interest Rate of 1.25% will be charged<br>
slide9. Commitment Charges Indicates cost incurred on undisbursed amount: slow moving projects bear greater liability. Note: * Commitment Charges are not levied on the agreements signed after 16.05.2007.
** At present commitments charges have been fully waived.
*** Commitments Charges are on the agreements signed after 01.10.2007 and arrears paid during FY 2010-11. US $ in million<br>
slide10. Currency Composition of Outstanding Stock Indicates debt stock as on 31st March 2012
Inflow/outflow on indicated currency except SDR<br>
slide11. Interest rate breakdown of Outstanding Variable rates are applicable for ADB and IBRD loans (as per Libor).
74% of Debt Stock is at fixed rate.<br>
slide12. Part β B
Functional Aspects<br>
slide13. Part A: Process
Loan agreement
Disbursements (Reimbursement and Direct)
Debt servicing
External assistance budget
Imparting training to project authorities
Part B: Reporting
Brochure
MIS reports for project management
Data submission to World Bank for publication in Global Development Finance (GDF)
Data for Template on International Reserves and Foreign Currency Liquidity
Special Data Dissemination Standards (SDDS) reporting
Responsible for reconciliation of External Debt with International Agencies Functions of AAAD<br>
slide14. Coordination with various agencies<br>
slide15. Dynamics at AAAD 18 donors with varied systems and procedures
Around 1165 active loans/grants
Maintenance of two Websites β caaa.gov.in for users only and aaad.gov.in in public domain
Maintenance of debt records in loan currency and INR<br>
slide16. Role of Borrower Ministry of Finance (DEA) (Multilateral Institutions and Bilateral Cooperation Divisions) Facilitates Appraisal
Processing and Negotiations
Signing of Agreements
Causing agreements to take effect
Follow up of project implementation and monitoring
Coordinating mid-term review and completion report to donor
All other actions relating to Agreements viz. Amendments, Reallocation, etc.<br>
slide17. Role of Project Implementing Authority Helps in project appraisal
Signing project agreement
Ensuring proper procurement procedures acceptable to donor
Responsible for all project activities and sending periodical reports to donor
Maintaining proper accounting records based on sound financial management
Responsible for preparing reimbursement claims and sending the same to Aid Accounts & Audit Division, New Delhi
Ensuring timely audit of accounts and reports to donor by due date
Prepare completion report of the project identifying further phase of the project where donor can finance<br>
slide18. Role of Central Bank towards External Aid Repository of all Foreign Currencies Inflows
INR equivalent of Foreign Currency Flow from External Aid is passed on to the Credit of CAA&A
Maintenance of Loan-wise Special Account in disbursed currency for the advance/deposits received from Donors.
Coordinating with CAA&A for sending External Debt data to Donor and other institutions.
Providing Exchange Rate for Government transactions of major Foreign Currencies to AAAD on daily basis<br>
slide19. Project Financing Budgeting
Step-I
Annual Requirement of Rupee resources the expenditure of the Project to be approved by the Planning Commission.
Step-II
Inclusion of the funds requirement in the Annual Budget of the Government. 19<br>
slide20. PROJECT CYCLE Negotiations (Donor & Govt.) Appraisal By Donor Proposal To Donor Identification By Govt. Evaluation by Donor Completion Report
Project Completion Project Execution Declaring the Agreement
Effective Financial Agreement
Donor β- GOI
Project Agreement
Project State β Donor<br>
slide21. Loan Agreement to be declared effective
Procurement Procedures as laid down in the agreement to be followed.
Authorized signatory to withdraw funds (CAAA)
Authorized Signatory to sign claims (PIA)
Participatory Agreements to be entered into between Government of India / State Government and the Project Executing Agency, if applicable.
Submission of audit certificate by the prescribed date. CONDITIONS PRECEDENT
TO DISBURSEMENT<br>
slide22. Expenditure Budget of P.I.A. Claims A.A.& A Div. For Claims Under Revolving Fund For Claims Outside Revolving Fund Donor RBI Mumbai A.A.& A. Div. Statement Disbursement to CAA&A Account P.F. Div. of D.O.E PAO Expenditure RBI, C.A.S. Nagpur State Govt. Account- Credit P.I.A. : Project Implementing Agency
P.F. : Plan Finance
D.O.E. : Department of Expenditure
C.A.S. : Central Accounts Section Through
Local office Disbursement Flow Chart- Reimbursement<br>
slide23. Disbursement Flow Chart- Direct Project Implementing Agency AA&A Div. Donor office in India/ Head Quarters Advise AAAD Direct Payment to Payees Account Recommendation of ACA to Department of Expenditure RBI, C.A.S. Nagpur State Govt. Account- Credit/Debit Credit AAAD Account<br>
slide24. System supported activities Claim Handling
Disbursements
Additional Central Assistance Donorβs Demand
Repayment Sanction
Recording of Repayments Budget Preparation
Brochure Generation
MIS Interface with CS-DRMS Loan Agreement Disbursement
Process Repayment
Process Compilation
Process Debt
Management Consolidation
& Compilation Portfolio
Analysis<br>
slide25. THANK YOU For more information, please refer to our website: aaad.gov.in<br>
Government of India Website: www.aaad.gov.in<br>
slide2. Outline Part A
Details of External Assistance
Part B
Functional aspect<br>
slide3. Part β A<br>
slide4. GOI policy on External Assistance Guide lines issued in 2005 on Bilateral Assistance emphasize reduced reliance on external assistance
Bilateral Assistance accepted only from G-8 countries and EC; tied aid not accepted.
Channelization of external assistance from smaller partners (other than those mentioned above), through multilateral organizations to promote greater aid harmonization
Countries can provide bilateral development assistance directly to autonomous institutions, universities, NGOs, etc.<br>
slide5. Facts GOI o/s External Sovereign Debt as on 31st March 2012 at US $ 63.37 Billion
2011-12: Receipts at US$ 5.14 (US$ 4.57 Loans and US$ 0.56 grants) Billions and repayment at US$ 3.35 (Principal US$ 2.67 and interest & commitment US$ 0.68) Billion
2012-13: Receipts estimated at US$ 5.44 (US$ 4.90 Loans and US$ 0.54 grants) repayment at US$ 3.74(Principal US$ 2.99 and interest &commitment US$ 0.75) Billion
External sovereign debt as %age of GDP for 2011-12: 3.62%<br>
slide6. Bilateral Donors All figs. In millions of US Dollar<br>
slide7. Multilateral Donors All figs. In millions of US Dollar<br>
slide8. Maturity Profile and Terms of Loans Note: Does not include other charges such as commitment fees
* 0.01% for Consultancy and 0.65% for environmental.
** Current being 0.75% for treasury portion and 2.49 % for bank portion.
@ New IDA terms and conditions: Under Blend/Harden Terms apart from Service fee of 0.75% Interest Rate of 1.25% will be charged<br>
slide9. Commitment Charges Indicates cost incurred on undisbursed amount: slow moving projects bear greater liability. Note: * Commitment Charges are not levied on the agreements signed after 16.05.2007.
** At present commitments charges have been fully waived.
*** Commitments Charges are on the agreements signed after 01.10.2007 and arrears paid during FY 2010-11. US $ in million<br>
slide10. Currency Composition of Outstanding Stock Indicates debt stock as on 31st March 2012
Inflow/outflow on indicated currency except SDR<br>
slide11. Interest rate breakdown of Outstanding Variable rates are applicable for ADB and IBRD loans (as per Libor).
74% of Debt Stock is at fixed rate.<br>
slide12. Part β B
Functional Aspects<br>
slide13. Part A: Process
Loan agreement
Disbursements (Reimbursement and Direct)
Debt servicing
External assistance budget
Imparting training to project authorities
Part B: Reporting
Brochure
MIS reports for project management
Data submission to World Bank for publication in Global Development Finance (GDF)
Data for Template on International Reserves and Foreign Currency Liquidity
Special Data Dissemination Standards (SDDS) reporting
Responsible for reconciliation of External Debt with International Agencies Functions of AAAD<br>
slide14. Coordination with various agencies<br>
slide15. Dynamics at AAAD 18 donors with varied systems and procedures
Around 1165 active loans/grants
Maintenance of two Websites β caaa.gov.in for users only and aaad.gov.in in public domain
Maintenance of debt records in loan currency and INR<br>
slide16. Role of Borrower Ministry of Finance (DEA) (Multilateral Institutions and Bilateral Cooperation Divisions) Facilitates Appraisal
Processing and Negotiations
Signing of Agreements
Causing agreements to take effect
Follow up of project implementation and monitoring
Coordinating mid-term review and completion report to donor
All other actions relating to Agreements viz. Amendments, Reallocation, etc.<br>
slide17. Role of Project Implementing Authority Helps in project appraisal
Signing project agreement
Ensuring proper procurement procedures acceptable to donor
Responsible for all project activities and sending periodical reports to donor
Maintaining proper accounting records based on sound financial management
Responsible for preparing reimbursement claims and sending the same to Aid Accounts & Audit Division, New Delhi
Ensuring timely audit of accounts and reports to donor by due date
Prepare completion report of the project identifying further phase of the project where donor can finance<br>
slide18. Role of Central Bank towards External Aid Repository of all Foreign Currencies Inflows
INR equivalent of Foreign Currency Flow from External Aid is passed on to the Credit of CAA&A
Maintenance of Loan-wise Special Account in disbursed currency for the advance/deposits received from Donors.
Coordinating with CAA&A for sending External Debt data to Donor and other institutions.
Providing Exchange Rate for Government transactions of major Foreign Currencies to AAAD on daily basis<br>
slide19. Project Financing Budgeting
Step-I
Annual Requirement of Rupee resources the expenditure of the Project to be approved by the Planning Commission.
Step-II
Inclusion of the funds requirement in the Annual Budget of the Government. 19<br>
slide20. PROJECT CYCLE Negotiations (Donor & Govt.) Appraisal By Donor Proposal To Donor Identification By Govt. Evaluation by Donor Completion Report
Project Completion Project Execution Declaring the Agreement
Effective Financial Agreement
Donor β- GOI
Project Agreement
Project State β Donor<br>
slide21. Loan Agreement to be declared effective
Procurement Procedures as laid down in the agreement to be followed.
Authorized signatory to withdraw funds (CAAA)
Authorized Signatory to sign claims (PIA)
Participatory Agreements to be entered into between Government of India / State Government and the Project Executing Agency, if applicable.
Submission of audit certificate by the prescribed date. CONDITIONS PRECEDENT
TO DISBURSEMENT<br>
slide22. Expenditure Budget of P.I.A. Claims A.A.& A Div. For Claims Under Revolving Fund For Claims Outside Revolving Fund Donor RBI Mumbai A.A.& A. Div. Statement Disbursement to CAA&A Account P.F. Div. of D.O.E PAO Expenditure RBI, C.A.S. Nagpur State Govt. Account- Credit P.I.A. : Project Implementing Agency
P.F. : Plan Finance
D.O.E. : Department of Expenditure
C.A.S. : Central Accounts Section Through
Local office Disbursement Flow Chart- Reimbursement<br>
slide23. Disbursement Flow Chart- Direct Project Implementing Agency AA&A Div. Donor office in India/ Head Quarters Advise AAAD Direct Payment to Payees Account Recommendation of ACA to Department of Expenditure RBI, C.A.S. Nagpur State Govt. Account- Credit/Debit Credit AAAD Account<br>
slide24. System supported activities Claim Handling
Disbursements
Additional Central Assistance Donorβs Demand
Repayment Sanction
Recording of Repayments Budget Preparation
Brochure Generation
MIS Interface with CS-DRMS Loan Agreement Disbursement
Process Repayment
Process Compilation
Process Debt
Management Consolidation
& Compilation Portfolio
Analysis<br>
slide25. THANK YOU For more information, please refer to our website: aaad.gov.in<br>