Fiscal year 2010/11 - Poverty Alleviation Fund, Nepal

6.4. Disbursement to Community Organizations
Fund Disbursement has to be made against contracts (sub-project agreements) with Community Organization (CO) in two or more trenches while it
needs to maintain controlling mechanism based on agreed upon milestones.
Table 20: Disbursement Expenditure to COs FY 2067/68 (in Million)
District
CO Registered
w/ PAF (No.)
Agreement
With CO No. Amount (NRs.)
Total Amount Released
(NRs.)
Regular 40 Districts
Mountain 611 519 590 250,915,888.41 329,754,215.74
Hill 1367 1149 1309 646,462,330.02 1,127,736,555.05
Terai 1066 1144 1229 705,177,294.31 630,448,194.13
40 Dist. Total 3,044 2,812 3,128 1,602,555,513 2,087,938,965
Innovative Programme Districts
Innovative Tot. 26 20 20 6,022,585.00 9,076,643
Total = 3,070 2,832 3,148 1,608,578,098 2,097,015,608
Based on the community demand, several activities related to income generation and small infrastructure sub-projects are being implemented. The
disbursment status in FY 2067/68 is shown in Annex 2. Untill FY 2010/11 (2067/68) PAF has disbursed NRs 8,266 m directly to community account.
The region wise distribution of disbursement shows that the hilly region has the highest share followed by Terai and Mountain regions.
6.5. Disbursement to Partner Organizations
During the reporting year, altogether 370 Partner Organizations (POs) have been working with PAF to facilitate and provide necessary technical supports
to the COs in the PAF districts for which PAF has disbursed Rs. 456 M. On the basis of the expenditure on PO, the hilly region has the highest share
with 50.86 per cent and then Mountain and Terai regions with 14.65 per cent and 34.45 per cent respectively. Similarly the NDM programme stands for
0.03 per cent of the total disbursement to POs.
Table 21 : Disbursement Expenditure to POs
S.N. Districts Disbursed in FY-67/68 %
Disbursed as of
FY-67/68 (Cumulative)
%
A Hill 232,431,712.30 50.86 894,418,028.48 52.47
B Mountain 66,970,882.78 14.65 238,824,716.66 14.01
C Terai 157,442,657.05 34.45 525,067,088.32 30.80
D NDM 145,000.00 0.03 46,270,292.95 2.71
Total 456,990,252.13 1,704,580,126.41
6.6. Additional Funding
The World Bank has agreed to provide 75 million US$ grant assistance package (IDA US $ 65M and FPCRTF US $ 10 M) for the Government of Nepal
to help meet its objectives to alleviate poverty through PAF.
The additional US$ 75 million support for PAF will continue supporting these activities in more communities. It will also help improve food security in
response to the drought and price fluctuations, particularly among the 3.7 million Nepalese most vulnerable to the spiraling cost of food.
6.7. Audit
Internal Audit of PAF for the FY 2067/68 has been carried out by PP Pradhan and Co., Charter Accountants on a trimester basis. External Audit for the
FY 2067/68 has been carried out by the Office of the Auditor General on annual basis. After completion of the contract, Community Organizations (COs)
submit their Audit to PAF. Also social audit is being carried out by COs. Partner Organizations (PO) also submit audit report of their contract to PAF. Also
PAF undertakes audit of POs on a sample basis. PAF has plans to undertake audit of all PO and sample CO’s of each PO.
ANNUAL PROGRESS REPORT (2010/2011) 37