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Public Financial Management and Accountability of the Taluk Panchayats

The Assignment
This assignment was undertaken to strengthen Public Financial Management and Accountability of the Taluk Panchayats in Karnataka. To support this initiative World Bank had provided an IDF Grant to the Government of Karnataka with an intention to apply part of the proceeds on engaging consultants for this assignment. MaGC(formerly NCRCL®) in association with Karnataka Institute of Public Auditors were appointed as the consultants for the strengthening of Public Financial Management and Accountability of Taluk Panchayats.

MaGCApproach
MaGCconducted a study of the existing accounting processes in the Taluk Panchayats through field visits and discussions with the officials from the Rural Development and Panchayat Raj Department and Finance Department. A detailed study of the various proposed technology solutions to address the financial and accounting needs of the TP were conducted. The staffing pattern of the accounts department at the Taluk Panchayats was studied.  A gap analysis was conducted from technology and human resources standpoint and was incorporated in the reports submitted to the client.

To standardize the accounting and audit processes of the Taluk Panchayats, an Accounts Manual and an Internal Audit Manual were prepared. To test their relevance and utility at the ground level, pilot testing of both the manuals were done and the learnings from the pilot study were duly incorporated in the manuals.

The Output
The output of the project included the Business Process Report, Information Communication and Technology Report, Organization Structure and Staffing Report, Accounts Manual, Internal Audit Manual and a Training Courseware based on the Accounts Manual and the Internal Audit Manual.

The Rural Development and Panchayat Raj Department and the Finance Department of the Government of Karnataka accepted the reports and the Manuals along with the roadmap for implementation of the two manuals. The implementation of the same is in process.

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