Integrated Finance (IF)
Introduction
Integrated Finance Division (lFD)
(A) Integrated Finance Division:
(i) IFD was introduced in l975 clubbing Internal Financial Adviser and Associate Financial Adviser to be consulted in the matter relating outside delegated financial powers.
(ii)Objectives was to enable IFA to play more collaborative and constructive role in planning, programming, evaluation function of the Ministry.
(iii)Financial Adviser is responsible both to the Administrative Ministry and to the Ministry of Finance. Free to exercise delegated powers but to be responsible to MoF on powers outside the delegated financial powers. He will also assist budget formulation, scrutiny of projects and programmes for approval of Ministry of Finance.
(iv)Appropriate system of networking with autonomous authorities within respective sectors receiving budgetary support to ensure optimum utilization of their resources.
(B) Role of Financial Adviser:
Financial Adviser is now conceived to be akin to the role of the Chief Financial Officer in a corporate structure, with specific responsibilities for ensuring fiscal prudence and sound financial management. They would bring requisite financial expertise, and overall perspective of financial management of the Government, as enunciated by the Ministry of Finance, in rendering professional advice to the Secretaries of the Administrative Ministries on all matters which have financial implications.
Financial Adviser will be crucial for successful planning, implementation and monitoring of various schemes and projects. Value for money will be the most important parameter in evaluating such schemes and projects. Therefore, it is imperative that outlay for a scheme is intrinsically linked with the Outcome Budget and Performance Budget.
In rendering his advice, the Financial Adviser, would be expected to accord priority to macro management with a view to help in achieving the outcomes set by the Ministry as goals for itself. These macro issues could include schematic appraisal and concept functions, revenue management, subsidy management fiscal resource transfer issues, defining and evaluating outcomes besides maintaining and safeguarding the budgetary integrity, etc. FA would also be expected to look at the total picture of resource for the sectors in which they are functioning, and assist the Secretary of the Administrative Ministry in moving towards greater resource mobilization, including in terms of enabling policy and regulatory framework to attract private sector funds.
Financial Adviser would continue to be responsible for Budget formulation, Outcome Budget, Performance Budget, Fiscal Responsibility and Budget Management (FRBM), Expenditure and Cash involving financial implications, Leveraging of non-budgetary resources for sectoral development. He would also monitor Non-Tax Receipts, Tax Expenditure, Assets and Liabilities and Review the Financial Management System of various programmes/ projects of the Ministry.
(C) Examine all proposals from financial angle and render financial advice on the :
(i) Creation, continuation, revival and conversion of posts.
(ii) Formulation of new schemes, projects and evaluation thereof.
(iii) Processing of cases for clearance.
(iv) Processing SFC/EFC/Cabinet Note etc.
(v) Release of grants to various organizations, institutes NGOs, Subordinate/ autonomous authorities.
(vi) Re-delegation of powers to subordinate authorities.
(vii) Deputation/ delegation abroad.
(viii) Interaction with the Departments of Expenditure/ Personnel & Training, and other Central Government Ministries.
(ix) To watch and vetting of the replies on audit/ PAC paras and other Committees.
(x) To screen all expenditure proposals requiring to be referred to DoE/ DP&AR.
(D) Capacity Building:
IFD may require strengthening for assisting the FA in his redefined role.Such strengthening may include use of Information Technology, Setting up of knowledge management structure, building requisite data base, networking with relevant institutions/ expert bodies. The Staff/officers would also require specialized training for rendering better professional advice.