The Union Health Ministry has set up a mechanism for monthly concurrent audit of the National Rural Health Mission (NRHM) following the performance audit by the Comptroller and Auditor General (CAG) who called for rationalisation of fund flow arrangement for speedy transfer of funds.

With regard to the recommendations on financial management, the Ministry has put in place a monthly concurrent audit in addition to annual statutory audit, periodic financial reviews and reviews are also undertaken by Common Review Missions and Joint Review Missions, sources said

The CAG in their report on the performance audit of NRHM has made some recommendations to rationalize fund flow arrangements for speedy transfer of funds from Centre to States, States to districts and below, to minimize unspent balances, streamlining accounting procedures and proper maintenance of accounts. Further, it has also recommended establishment of new infrastructure i.e. health centres and strengthening and capacity building of existing ones.

NRHM gives special focus to 18 States including eight NE States, which have weak public health indicators and/or weak infrastructure. Besides, 140 backward districts based on ranking on 13 DLHS III indicators, districts having considerable population of SC/ST and 33 highly left wing affected districts as prepared by Ministry of Home Affairs were selected for high focus planning. The State/UT Governments were asked to take up activities for such districts on priority and incorporate the same in their annual programme implementation plans [PIPs] for the financial year 2010-11. Funds are released to all States/UTs with the approval of the National Programme Coordination Committee [NPCC], official sources said.

The Third Common Review Mission of NRHM (November, 2009), which covered 14 States and three Union Territories, looked at various aspects including the position with regard to diagnostics and logistics and supply chain management. The Report of the Common Review Mission was shared with all the States/UTs in a dissemination workshop. The follow up to the comments made are being monitored through the process of preparation of the Programme Implementation Plans. Promotion of rational drug use, finalization of essential drug lists in States, uninterrupted and adequate supply of drugs through a good logistics and supply chain management and improved diagnostics are all priorities of the NRHM.