The Union Health Ministry has tightened the norms and set up a monthly concurrent audit mechanism of the National Rural Health Mission (NRHM), in the wake of recent large-scale anomalies reported in the use of funds sanctioned under NRHM for Uttar Pradesh.


Sources said the Ministry had given instructions to tighten norms and close monitoring of all flagship programmes for which the Centre would allocate funds to the States under the NRHM, with a view to minimise the irregularities as happened in UP.


The monthly concurrent audit system is being introduced in accordance with the recommendation in the performance audit by the Comptroller and Auditor General (CAG) who called for rationalisation of fund flow arrangement for speedy transfer of funds. The Ministry has put in place a monthly concurrent audit in addition to annual statutory audit, periodic financial reviews and reviews undertaken by Common Review Missions and Joint Review Missions, sources said.


The CAG in its 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.


It is also learnt that a fact-finding team by the Centre had substantiated the reported anomalies in UP where several investigations had already been instituted. A major part of the Rs.1,232-crore shown as expenditure under the Janani Suraksha Yojana (JSY) since its inception in 2005 was siphoned off.


Following the allegations of irregularities to the tune of over Rs.1000 crore, the Centre has chopped Rs.959 crore off the state government's requested plan for 2011-12. UP's mission director of NRHM sent a programme implementation plan in May for schemes worth Rs.2,893 crore for 2011-12. The central directorate, however, gave its clearance for Rs.1,933 crore only.