Samurdhi Authority of Sri Lanka for the year 2010

Transcription

SAMURDHI AUTHORITY OF SRI LANKA
ANNUAL REPORT
FOR THE YEAR 2010
SUBMITTED BY THE SAMURDHI AUTHORITY
OF SRI LANKA TO THE HON MINISTER OF ECONOMIC
DEVELOPMENT
PREFACE
The Samurdhi Authority of Sri Lanka which was involved in achieving the
noble objective of creating a prosperous Sri Lanka where poverty is at a
minimum, achieved several successes.
It is an institution totally committed towards Sri Lankan economic prosperity,
adding novel experiences to the “Jathika Saviya Gama Neguma” programmes
implemented by the Ministry of Economic Development.
The main objective here is getting the low income earners to stand on their
own through the utilization of their potential talents. In order to achieve this
objective, we have opened new paths of prosperity to the needy community
through the implementation of individual livelihood development and
attitudinal development programmes.
In accordance with the vision of the Mahinda Chinthanaya, our singular aim
is to make Sri Lanka the miraculous land of Asia by getting rid of poverty,
through building up of the individual with the family, building up the village
and thereby developing the country. .
2
The basic objectives of the Samurdhi Authority of Sri Lanka incorporated under
Parliamentary Act No. 30 of 1995 are as follows:
The planning and implementation of the “mobilization of youth, women and disadvantaged
groups for economic and social development activities, the promotion of their social stability
and the eradication of poverty.”
VISION
“Creating a prosperous Sri Lanka where poverty is at a minimum”
MISSION
“Contributing to a stable national development where poverty is at a minimum through
community partcicipation centered development”
OBJECTIVES

Creation of small groups and through it identifying the potentials of rural families
through building up of Samurdhi societies, and the strengthening of such rural
communities.

Development of the urban, rural and estate sectors by the year 2013 through
economic, physical and social development.

Contribution to provincial development through the coordination of local and
international government and non governmental organizations.

Strengthening the overall economy by enhancing the micro finance network.

Making the Samurdhi Authority of Sri Lanka a technically powerful institution.
3
A COMPARATIVE EVALAUATION OF THE YEAR 2010 WITH THE YEAR 2009
When the financial process of the Samurdhi Authority, the objective of which is the
minimizing of poverty and the raising of the living standards of the poor community, for the
year 2010 is compared to the previous year, it is an year where substantial financial progress
had been shown in the field of providing facilities for the people, and action had been taken
to minimize the cost incurred in that behalf relative to the previous year. Outstanding
financial successes are shown below, and in the year 2010, in the national budget a sum of
rupees million 3,260 been allocated for development expenditure. When compared to the sum
of rupees million 3,485 allocated in the year 2009, it shows a decrease of rupees million 225.
For the development expenditure of the Samurdhi Authority of Sri Lanka, in the year 2006 a
sum of rupees million 5,020, in the year 2007 a sum of rupees million 1660, in the year 2008
a sum of rupees million 600 and in the year 2009 a sum of rupees million 3,485 had been
allocated. Out of this amount, rupees million 2,867 in the year 2006, rupees million 1,014 in
the year 2007, rupees million 819 in the year 2008, rupees million 2,828 in the year 2009 and
rupees million 2,817 in the year 2010 had been spent. Considering these allocations and
expenditure, the sum of rupees million 3,260 allocated for the year 2010 is a substantial
amount. Further, the Authority was able to complete the required development programmes
as the Treasury made available a sum of rupees million 3,236 as an imprest. It is stated that
the following financial successes were achieved in the year 2010:
1. In the year 2009, the total development expenditure was rupees million 3,033.3,
and in the year 2010 it had increased to rupees million 3,236. It is a value added to
the national economy through livelihood development, social development and
infra structure facilities development implemented by the Samurdhi Authority of
Sri Lanka.
2. When compared to the year 2009, the funds of the Authority in the year 2010 had
increased from rupees million 2,898 to rupees million 3,127, thereby reinforcing
the strength of the funds by rupees million 229.
3. The Samurdhi Fund has from rupees million 2,471.5 to rupees million 2,642.3, the
Lotteries Fund has from rupees million 47.3 to rupees million 51.2, the Housing
Lotteries Fund has from rupees million 211.8 to rupees million 259.1 and the
Stationery Cyclic Fund has from rupees million 60.8 to rupees million 63.9
developed. In addition, the rupees million 10.3 fund set
up for the publicity and promotion of banking unions through annual contributions
of Rs. 10,000/= each from banking unions in the year 2009 for the publicity and
promotion of banking unions, stands at rupees million 10.1 in 2010 too.
4
4. The profit of the Banking Finance Division compared to the previous year, has
dropped from rupees million 963.5 to rupees million 399.3. The decrease in the
income from investments due to lowering of the interest on investments, decrease in
the income from loan interest, payment of a sum of rupees million 50 for salaries and
wages on a decision of the board of directors and the payment of rupees million 35 in
the year 2010 out of the allocation of rupees million 240 for the construction of
buildings, were the causes for this.
5. Despite this, it was possible to bring down the expenditure of the Banking Finance
Division from rupees million 15.1 in the year 2009 to rupees million 12.2 in the year
2010. The reason for this is that the existing rate of interest payable for compulsory
savings had been reduced.
6. It has become possible to increase the investments of the Banking Finance Division
which were rupees billion 13.3 in the year 2009 to rupees billion 15.38 in the year
2010.
7. It has been possible to reduce the long standing liabilities of the Banking Finance
Division which were rupees million 918.2 in the year 2009 to rupees million 822 in
the year 2010.
8. Creditors who were rupees million 14.5 in the year 2009, had by the year 2010 settled
all debts.
9. It has been possible to increase the income from miscellaneous activities from rupees
million 3.1 in the year 2009 to rupees million 8.2 in the year 2010.
10. It has been possible to reduce the expenditure for fuel and lubricants in the head office
from rupees million 8.9 in the year 2009 to rupees million 8.2 in the year 2010.
11. It has been possible to reduce the expenditure of the banking unions stationery cyclic
fund from rupees million 3.6 in the year 2009 to rupees million 2.1 in the year 2010.
12. Under the housing programme, in the year 2009 the contribution of the Authority for
each house was Rs. 60,000/=, and it was increased to Rs.100,000/= in the year 2010.
Accordingly, the Samurdhi Authority of Sri Lanka was able to construct
5
3110 houses for widowed families under the Diriya Piyasa Housing Programme,
809 houses under the Ranaviru Housing Programme and 256 houses for model
villages and on requests made. In the year 2009, these figures were 3779 and 901
respectively.
13. Under the Samurdhi Programme, it has been reported that in the year 2010,
the number of people who had weaned off from drugs had been 24,145, and the
number of people who had weaned off from smoking 22, 352. It has been further
reported that 7,664 shops had been persuaded not to sell cigarettes. The figures for
the year 2009 were 14,643, 11,405 and 4718 respectively.
14. In the year 2010, the Rural Development Division had implemented 5,949
projects island wide, under the Infra Structure Facilities Development Programme,
Special Villages Development Programme and the Special Projects Development
Division. It has been reported that the number of projects implemented by the
Industrial Development Division, Animal Husbandry and Fisheries Division,
Marketing Division and the Agricultural Division under the Livelihood
Development Programme, 3060 Villages Programme and extraneous to the 3060
programme, had been 12712, 8629, 8641 and 30336 respectively. It has been
reported that for the year 2009, the figures had been 6128, 16541, 12890, 4040
and 109857 respectively.
In spite of officer vacancies, it was possible to achieve these successes in the year
2010 due to the advice given by the Secretary, Additional Secretary and the staff
of the Ministry of Nation Building and Estate Infra Structure Development and the
Ministry of Economic Development, based on the cooperation received and the
correct decision making of the Board of Directors, Director General and all staff
of the head office, and staff at district level and divisional level. It must also be
mentioned that the cooperation received from the Government Audit Unit to
rectify the deficiencies in time and the cooperation received from the Internal
Audit Division were also instrumental for this success.
It is especially stated that the cooperation received from Hon. Basil Rajapakse,
Minister and Deputy Ministers directing the Ministry of Nation Building and
Estate Infra Structure Development and the Ministry of Economic Development
were also valuable guide lines for the successes in the year 2010, for making Sri
Lanka the miracle of Asia in establishing the objectives of the Mahinda
Chinthanaya of His Excellency the President.
R P B THILAKASIRI
Director General,
Samurdhi Authority of Sri Lanka
6
Adminiistrative Distribution
1. Samurdhi Programme implemented units:
* No of districts
* No of secretarial divisions
4. Breakdown of staff
22
316
1. Director/Dy Director/Asst Director
2. Chief Internal Auditor
3. Legal Officer
4. Administration Officer
5. Press Officer
6. No of Managers
7. No of Samurdhi Development Officers
8. Other staff
* No of Grama Seva Wasa
* No of banking unions/zones
* No of Maha Sangams
* No of Samurdhi societies
* No of Samurdhi brigades
14,008
1,043
316
18,788
14,008
2.No of Samurdhi beneficiary families 1,576,876
3 No of small groups
207,975
7
16
01
01
01
01
2117
22135
245
FINANCE, SECTORAL AND PROGRAMME WISE DISTRIBUTION OF FUNDS ALLOCATED FOR LIVELIHOOD
DEVELOPMENT, SPIRITUAL AND SOCIAL DEVELOPMENT ACTIVITIES THROUGH THE BUDGET FOR THE
YEAR 2010
Serial
No
Development Sector
Amount
allocated for the
first four months
of 2010
Amount allocated
for the period
lst May to 31st
July
Amount allocated
for the period 1st
August to 31st
December
982.00
500.80
178.00
1660.80
Amount
allocated for
2010
1
Rural Development Division
2
Livelihood Development
65.00
275.00
470.00
810.00
Marketing Division
13.00
80.00
141.53
234.53
Industrial Division
16.00
65.00
84.90
165.90
Agricultural Division
Fisheries and Animal Husbandry
Division
Special Projects and Funds Division
20.00
65.00
173.53
258.53
16.00
65.00
100.04
181.04
0.00
0.00
0.00
0.00
4
Banking Finance Division
25.00
96.00
120.00
241.00
5
Social Development Div
125.00
102.00
210.00
437.00
6
Maha Sangam Division
5.00
8.00
20.00
33.00
7
Human Resources Division
5.00
5.00
10.00
20.00
8
Media Division
5.00
5.00
7.00
17.00
9
Finance Division (Supplies)
5.00
5.00
15.00
25.00
10
Monitoring and Evaluation Div
5.00
1.20
3.00
9.20
11
Administrative Expenditure
TOTAL
8
FINANCIAL PROGRESS OF EXPENDITURE AS AT 31/12/2010
CAPITAL EXPENDITURE
Details`
Programme of the Rural Development Division
Allocations for the
year 2010
Allocations sent
as at 31/12/2010
1,690,040,000.00
1,689,580,250.00
287,390,000.00
281,893,164.00
163,970,000.00
Division
Balance allocation
as at 31/12/2010
Total exp
as a %
Balance
allocation
as at
31/12/2010
less real exp
1,595,958,951.52
94.43
94,081,048.48
5,496,836.00
269,031,263.33
93.61
18,358,736.67
155,684,074.00
8,285,926.00
137,583,311.32
83.91
26,386,688.68
133,320,000.00
128,807,384.00
4,512,616.00
114,838,997.83
86.14
18,481,002.17
Programme of the Industrial Division
221,320,000.00
220,880,690.00
439,310.00
213,240,151.58
96.35
8,079,848.42
Programme of the Social Development Division
432,000,000.00
426,880,783.00
5,119,217.00
429,423,271.43
99.40
2,576,728.57
Institutional Development Division
21,000,000.00
13,474,234.00
7,525,766.00
19,075,794.27
90.84
1,924,205.73
Programme of the Media Division
22,000,000.00
85,000.00
21,915,000.00
21,823,845.67
99.20
176,154.33
5,200,000.00
4,508,126.00
3,280,671.04
63.09
1,919,328.96
Programme of the Maha Sangam Division
32,000,000.00
25,147,044.00
27,673,327.97
86.48
4,326,672.03
Programme of the Banking & Fin Division
226,760,000.00
226,000,000.00
225,037,897.44
99.24
1,722,102.56
3,235,000,000.00
3,172,940,749.00
62,059,251.00
3,056,967,483.40
94.50
178,032,516.60
25,000,000.00
7,011,474.00
17,988,526.00
18,594,277.37
74.38
6,405,722.63
Programme of the Agri Development Division
459,750.00
Real expenditure
As at 31/12/2010
Programme of the Fisheries & Animal
Husbandry Division
Programme of the Marketing Development
Programme of the Human Resources and
Programme of the Monitoring and Evaluation
Division
TOTAL DEVELOPMENT EXPENDITURE
RECOVERY OF FIXED ASSETS
TOTAL CAPITAL EXPENDITURE
3,260,000,000.00
3,179,952,223.00
9
691,874.00
6,852,956.00
760,000.00
80,047,777.00
3,075,561,760.77
94.34
184,438,239.23
OBJECTIVES OF THE PROGRAMME IMPLEMENTED IN 2010………

Based on Samurdhi beneficiary and low income earning families.

The basic planning unit is the Grama Niladhari wasama.

Concurrent to the “Gama Neguma” programme, under the theme of a pleasant
village, in the 3060 Grama Niladhari wasams and wasams extraneous to these,
Moral and Spiritual Development Development, Livelihood Development and
development of infra structure facilities helping Livelihood Development are
being implemented.

Identification of the needs is done from bottom to top. Only guidance is
provided in this behalf at the institutional level.

Funds are raised through government funds (Treasury allocations), Samurdhi
bank loans and the main contributions of beneficiaries.

Programmes have been lined up to achieve the targets of the millennium
development, SAARC social policy and the targets of the Mahinda Chinthanaya.

Guidance of Samurdhi and low income earners towards development through
mobilization after rescuing them from the subsistence mentality.

Total commitment towards making “Sri Lanka the miracle of Asia” by giving
due priority to the Mahinda Chinthanaya and reinforcing its objectives.

Rendering unstinted cooperation in bringing down the percentage of low income
earners from 26% in the year 1995 to 22.5% in the year 2002, bringing it down
further to 15% during the period 2006/2007, and bringing it down to 8.9% in the
year 2009/2010.
10
PART ONE
11
 ADMINISTRATIVE STRUCTURE OF THE SAMURDHI AUTHORITY
OF SRI LANKA
BOARD OF DIRECTORS WHICH FUNCTIONED IN THE YEAR 2010
In accordance with the Incorporation of the Samurdhi Authority of Sri Lanka Act No 30 of
1995, approved by the parliament of the Democratic Socialist Republic of Sri Lanka, the
Board of Directors of the Authority should comprise four directors nominated legally, and
three other directors nominated by the Minister in charge of the subject. Accordingly, the
under mentioned Board of Directors is functioning:Composition of the Board of Directors functioning from 01/01/2010 to 31/07/2010
1. Mr.R.G.B. Thilakasiri, Attorney at law
-
Chairman of the Board of
Directors
2. . Mr.Sarath Wijayaweera
Commissioner General of Samurdhi,
-
Official member.
3. Mr.J.W.Ratnayake
Addl Secy,
-
Official member
4. Mrs.D.P.R.Senadhipathy
Representative of the Treasury
-
Official member.
Director General
.5 Mr.U.D.C.Jayalal
-
Nominated member.
6. Mr.Amarananda Weerasinghe
-
Nominated member.
1. . Mr.R.G.B. Thilakasiri, Attorney at law
Director General
-
Chairman of the Board of
Directors
2. Mr.R.A.A.K.Ranawake
Addl Secy
-
Official member
3. Mr.Sunil Pathashantha
Commr Gen of Samurdhi
-
Official member
4. Miss Geetha Wimalaweera
-
Official member
5. Dr.P.A.Kiriwandeniya
-
Nominated member.
6. Dr.Wijitha Nanayakkara
-
Nominated member.
7. Mrs.Shanthi Fernando
-
Nominated member.
FROM 02/08/2010 TO 31/12/2010
12
ORGANIZATION STRUCTURE – SAMURDHI AUTHORITY OF SRI LANKA
Board of
Directors
Director General
Chief Internal
Auditor
Dy Internal
Auditors (2)
Director
Monitorin
g and
evaluation
Operation
s
D/D1
Director
Banking
Finance
Director
Finance
Director
Social
Developme
nt
Director
Marketing/I
ndustries
Director Human
Resources
DD 1
(Admin)
Director
Agriculture/Animal
Husbandry
DD1(Esta
DD 1
DD 1
DD 1 (Animal
blishment) (Training) (Agriculture Husbandry)
Asst Internal
Auditors
District Internal
Auditors
13
Director
Rural
Developme
nt
Director
Maha
Sangam
Secretary to the
Board of Directors
DD 1
(Investigati
ons)
DD 1
(Media)
DD 1
(North &
East)

SAMURDHI AUTHORITY OF SRI LANKA – ORGANIZATION STRUCTURE NATIONAL
LEVEL DOWN TO THE RURAL LEVEL
Administrative/management level
Relevant institution/ organization
Board of Directors
National Level
District
District Level
Secretary/District
Director
Divisional Secy/
Divisional Level
Zonal Level
Deputy Director
Zonal Manager
District Samurdhi Office
(Asst Commr of Samurdhi)/
Deputy Director
Divisional Samurdhi Unit
Head Quarters
Manager/Managing Director, Maha
Sangam
Zonal Manager
Grama Seva Level
Samurdhi
Developoment
Officer
Beneficiary families
(small groups)
NOTE:
This chart which depicts the spread over of the institutional organization structure of
the Samurdhi Authority of Sri Lanka from the national level down to the village level,
gives an idea about the basic objective and activities of the institution for the
mobilization of village level small groups.
14
Development and Institutional Service Devisions
Let us Create
Pleasant Villagers
15
STAFF OFFICERS OF THE SAMURDHI AUTHORITY OF SRI LANKA – 2010
1.Mr.R.P.Bandula Thilakasiri
-
Director General/Chief ExecutiveAttorney at law
2..Mr.M.A.S.Weerasinghe
-
Secretary to the Board (Actg)
Director (Rural Development)
Director – Media (Actg)
Sri Lanka Administrative Service Class 1
3.Mr.K.D.Chithrapala
-
Director (Finance)
Sri Lanka Accountants Service Class 1
(Up to 18/10/2010)
4.Mr.Sisira Thanayamwatta
-
Director (Banking Finance)
(Up to 31/07/2010)
5.Mr.H.P.C.Hettiarachchi
-
Actg Director (Establishment)
Sri Lanka Educational Administrative
Service Class 11
(Up to 31/07/2010)
6.Mr.S.P.Bandara
-
Director (Monitoring and Evaluation)
7.Mr.S.A.D.P.Mathangadeera 8.Mrs.Indrani Palliyaguru
-
Chief Internal Auditor
Deputy Director (Administration)
(Up to 20/09/2010)
9.Mr.L.P.J.P.Gunathilake
-
Director (Livelihood Development)
10.Mr.Gamini Wickremapala
-
Deputy Director – Maha Sangam and
Marketing/Industries (Actg)
Sri Lanka Accountants Service Class 11/1
11.Mrs.Rajanie Atapattu
-
Deputy Director (Social Development)
(Up to 31/08/2010)
12.Mr.S.Madawalagamage
-
Deputy Director (Legal Investigation)
13.Mrs.Sunanda Piyaseeli
-
Deputy Director (Finance)
14.Mr.Ranjith Udayasiri-
-
Deputy Director (Banking Finance)
(Up to 31/08/2010)
15.Mr.I.L.Somasiri
-
Asst Director (Finance)
16.Mrs.D.M.D.N.Mendis
-
Asst Director (Fisheries)
17.Mr.P.R.D.H.Anurawansa
-
Asst Internal Auditor
18.Mrs.I.R.S.K.Jayatilake
-
Asst Director (Finance)
19.Miss D.U.S.Pathirage
-
Legal Officer
20.Mrs.Sriya Boralugoda
-
Administration Officer
21.Mr.Senaka Ubayasinghe -
Press Officer
16
SAMURDHI AUTHORITY OF SRI LANKA – DATA ABOUT THE AUDIT AND
MANAGEMENT COMMITTEE – UP TO 09/03/2010
Details of members
–
1. Mrs.D.P.R.Senadipathy
Member, Board of Directors
Director General
Public Accounts Department
Hony Chairperson
Treasury representative
2. Mr.J.W.Ratnayake
Member
Additional Secretary
Ministry of Nation Building and Estate Infra Structure Development
3. Mr.Sarath Wijeweera
Commissioner General of Samurdhi
Dept of the Commr Gen of Samurdhi
Member
4. Mr.K.D.Chithrapala
–
Director (Finance)
Member
5. Mr.S.K.B.Tanayamwatta
–
Member
6. Mr.M.A.S.Weerasinghe
–
Secretary to the Board of Directors
Member
7. Mr.P.R.L.Wasantha
Member
Accountant/Internal Auditor
8. Mr.D.A.S.Jayaratne
Senior Inspector of Audit
Auditor Generals Department
Supervisory member
(Auditor General’s rep)
9. Mr.S.A.D.P.Mathangadeera –
Convenor
17
DATA ABOUT THE AUDIT AND MANAGEMENT COMMITTEE – FROM 01/08/2010
Details of members
1.
Mrs.Geetha Wimalaweera
Director (Dept of National Budget)
General Treasury
Hony Chairperson
2.
Mrs.Shanthi Fernando
Director Presidential Coordination
Member
3.
Mrs.Seetha Senaratne
Member (Up to 25/10/2010)
Mr.M.M.Sunil Pathmashantha
Member (From 26/10/2010)
4.
-
Mr.K.D.Chithrapala
Director (Finance)
–
Member (Up to 25/10/2010)
Mrs. D.A.Sunanda Piyaseeli
Director – (Finance) Actg
-
Member (From 26/10/2010)
–
5.
Mr.S.K.B.Tanayamwatta
6.
Mr.M.A.S.Weerasinghe
–
Member
Secretary to the Board of Directors
Mr.P.R.L.Wasantha
Member
Accountant/Internal Auditor
7.
Member
8.
Mr.H.G.Sarath
Suptd of Audit
Dept of the Auditor General
-
Supervisory member
(Auditor General’s rep)
9.
Mr.S.A.D.P.Mathangadeera
–
Convenor
DETAILS OF COMMITTEE MEETINGS HELD IN THE YEAR 2010
06 meetings were held during the year.
18
PROGRESS OF THE
19
TABLE OF CONTENTS
1.
BOARD OF DIRECTORS SECRETARIAT
2.
ADMINISTRATION DIVISION
3.
ESTABLISHMENT DIVISION
4.
RURAL DEVELOPMENT DIVISION
5.
AGRICULTURAL DEVELOPMENT DIVISION
6.
ANIMAL HUSBANDRY AND FISHERIES DIVISION
7.
INDUSTRIAL DIVISION
8.
MARKETING DEVELOPMENT DIVISION
9.
HUMAN RESOURCES AND INSTITUTIONAL DEVELOPMENT
DIVISION
10.
MAHA SANGAM DIVISION
11.
SOCIAL DEVELOPMENT DIVISION
12.
MEDIA DIVISION
13.
MONITORING AND EVALUATION DIVISION
14.
BANKING FINANCE DIVISION
15.
INTERNAL AUDIT DIVISION
16.
LEGAL AND INVESTIGATIONS DIVISION
17.
FINANCIAL MANAGEMENT DIVISION
20
1.0
BOARD OF DIRECTORS SECRETARIAT DIVISION
The basic function of the Board of Directors Secretariat Division is twofold.
That is, on one hand to function as the secretariat of the Board of Directors, and
on the other hand to assist, in liaison with the administration, the executive body
of the institution in the implementation of decisions of the Board of Directors.
The basic functions of this Division are establishment, administrative, financial
matters, as well as preparing the necessary legal background for disciplinary matters,
collection of data relevant to development activities, assist in the maintenance of
discipline conducive to the running of the institution, and to assist the Director General
in monitoring the relevant follow up actions.
1.1
Functions and assignments
The basic function of this Division is related to co-ordination and reporting,
and the most important responsibility assigned to it is to render policy wise
support for the preparation of the strategic plan of the institution.
1.1.1
In the capacity of the Board of Directors secretariat
1. Briefing the Board of Directors about establishment, administrative and
financial matters, and providing the back ground information relating to
policy decisions about development activities.
2. Submission of board papers, and assisting the heads of divisions in
obtaining Board of Directors approval and follow up action.
3. Assisting the Board of Directors in decision making by providing the
relevant information and data.
4. Maintaining secrecy about decisions of the Board of Directors.
5. Keeping heads of divisions informed about decisions taken by the
Board of Directors and relevant follow up action.
6. Organizing matters relating to the summoning of meetings of the Board
of Directors and the connected follow up action.
Accordingly, the number of papers submitted to the Board of Directors during the
current year was 177, and its breakdown is as shown hereunder:
i.
ii.
iii.
iv.
v.
vi.
vii.
Relating to establishment and administrative matters
Relating to human resource development matters
Relating to financial matters
Relating to development matters
Relating to legal and auditing matters
Relating to media matters
Relating to monitoring and evaluation matters
21
No of pps
68
06
69
21
09
02
02
1.1.2 In the capacity of the co-ordination secretariat of the Director General, the
following functions are performed:a.
Co-ordination of meetings, conferences, workshops etc attended by the
Director General.
b.
Maintaining liaison with the ministry and other government institutions
c.
Keeping the Director General informed about data pertaining to administrative, disciplinary and investigation matters, and maintaining of
inter institutional co-ordination.
d.
Distribution of the daily tappal received by the Director General and the
Board of Directors Secretariat to the relevant divisions, and follow up
action thereof.
Attending to establishment matters of the officers in the division.
e.
1.1.3 Progress
2 The number of board meetings held during the current year was 16.
Another responsibility cast on this division, is the follow up action regarding the
proper implementation of the integrated plan and accordingly briefing the Board of
Directors at its monthly meetings about the necessary changes relevant to the
strategic plan.
Board of Directors up to 10/08/2010
1. Mr.R.P.B.Thilakasiri, Attorney at law
Director General
2. Mr.Sarath Wijayaweera
Commissioner General of Samurdhi
3. Mr.J.W.Ratnayake
Addl Secy
4. Mrs.D.P.R.Senadipathy
Treasury rep
5. Mr.U.D.C.Jayalal
6. Mr.Amarananda Weerasinghe
-
Chairman
-
Official member
-
Official member
-
Official member
-
Nominated member
Nominated member
-
Chairman
-
Official member
-
Official member
-
Official member
-
Nominated member
Nominated member
Nominated member
Board of Directors from 10/08/2010
1. Mr.R.P.B.Thilakasiri, Attorney at law
Director General
2. Mr.R.A.A.K.Ranawaka
Addl Secy
3. Mr.Sunil Pathmashantha
4. Miss Geetha Wimalaweera
5. Dr.P.A.Kiriwandeniya
6. Dr.Vijitha Nanayakkara
7. Mrs.Shanthi Fernando
22
2.0 ADMINISTRATION DIVISION
The administration division of the Samurdhi Authority of Sri Lanka functions as
two branches, namely, management and establishment. Day to day matters
arising in the course of administration is attended to by the administration
division, while the establishment division attends to practical matters relating to
policy decisions.
2.1 Both these divisions have been brought under the direct supervision of the
Managing
Director and the Administration Division has a staff of 32, while
the Establishment Division has a staff of 42. The basic function entrusted to the
Administration Division is the proper management of human and physical
resources, dedication towards institutional development and the provision of
ancillary services to enable the various Divisions of the Authority to achieve
their goals.
2.2
OBJECTIVES AND OTHER FUNCTIONS OF THE ADMINISTRATION BRANCH
2.2.1





2.2.2









MAIN OBJECTIVES
Study of staff requirements and reporting about basic matters incidental to
same to the Chief Executive and organization of the staff.
Action regarding staff recruitment, training and promotions, and the
formulation and submission of a restructuring programme including relevant
methodologies and schemes to the Management Services Department and
updating same.
Taking action necessary to maintain good conduct and discipline of the staff
and to facilitate day to day work.
Upholding the dignity of the institution.
Formulation of the office lay out and the office organization chart.
DAILY ROUTINE DUTIES
Attending to the daily tappal
Management of the procedure for the issue of identification cards to the staff.
Finalization of the issue of such identification cards.
Inter-divisional and intra-divisional co-ordination.
Taking action regarding requests made by the public.
Taking action regarding requests made by the staff.
Maintenance and updating of personal files of staff
Asset management and maintaining an updated inventory of stores items.
(Safeguarding assets physically as well as the relevant documents)
Management of the transport section.
Taking action with regard to the payment of staff salaries, allowances,
traveling expenses and all payments.
23
2.2.3




2.2.4
SPECIAL ASSIGNMENTS
Referring questions in Parliament to the appropriate Divisions to obtain
relevant replies and co-ordination thereof.
Compiling answers for audit queries and co-ordination thereof.
Taking action regarding matters arising from parliamentary advisory
committee meetings, and briefing divisional heads about such matters.
Holding of efficiency bar examinations and other promotion examinations,
and attending to the communication function of same.
CO-ORDINATION ACTIVITIES



Formulation of the recruitment and promotion scheme under restructuring.
Proving facilities necessary for the meetings held monthly.
Duties in connection with the efficiency bar examinations to be held annually
and with regard to promotions
 Preparation of the annual report and appropriate action incidental thereto.
 Collection and updating of information and data and transmission of same to
relevant agencies.(Dissemination of information)
2.3
COMPOSITION OF THE CADRE OF THE SAMURDHI AUTHORITY OF SRI
LANKA
The overall cadre of the Samurdhi Authority of Sri Lanka, including Samurdhi
Development Officers engaged in field duties, is 27,656. This cadre is sub
divided into two broad categories as Samurdhi Development Officers and other
staff.
The post of General Manager fell vacant this year, and so far no one has been
recruited to fill this post. Further, there was a trend of the percentage of vacancies
in the cadre increasing, due to the delays in the recruitment to fill most posts
which fell vacant as a result of members of the overall staff retiring, employees
being released for service to other institutions, failure of most employees who
had been released back to report to their original posts and employees going
abroad to seek overseas employment.
APPROVED CADRE OF THE SAMURDHI AUTHORITY OF SRI LANKA
POST
HIGHER
MANAGEMENT
AVAL
NO
01
SHORT
FALL
DIRECTOR GENERAL
APPD
NO
01
GENERAL MANAGER
01
--
01
01
01
01
09
01
03
01
SECRETARY
DIRECTORS
TO
THE
BOARD
OF
06
DIRECTOR
CHIEF INTERNAL AUDITOR
SUB TOTAL
13
24
05
08
MIDDLE
DEPUTY DIRECTOR
13
04
09
02
--
02
MANAGEMENT
DEPUTY INTERNAL AUDITOR
ASST DIRECTOR
MANAGEMENT
09
08
01
ASST DIRECTOR (TRG)
04
01
03
ASST INTERNAL AUDITOR
04
01
03
SAMURDHI CO-ORD OFFICER
26
20
06
SUB TOTAL
54
33
21
FINANCIAL ASST
01
01
--
ADMIN OFFICER
02
01
01
LEGAL OFFICER
03
01
02
MEDIA OFFICER
02
01
01
SYSTEMS ANALYST
01
01
--
SAMURDHI MANAGER
2500
2117
383
INTERNAL AUDIT OFFICER V
34
--
34
CHIEF CLERK
09
03
06
SYSTEMS CONTROLLER
01
--
01
SUB TOTAL
2553
2125
428
FIELD OFFICERS
SAMURDHI DEVELOPMENT OFFICERS
24370
22135
2235
SUPPORTING
INTERNAL AUDIT OFFICER VI
95
67
28
STAFF
COMPUTER PROGRAMMER
02
--
02
TRANSRI LANKAATOR
02
01
01
VIDEO CAMERA MAN
03
02
01
CLERK
455
60
395
STENOGRAPHER
11
04
07
BOOK KEEPER
04
01
03
SHROFF
02
02
--
RECEPTIONIST
01
01
--
STORE KEEPER
01
01
--
TYPIST
11
10
01
COMPUTER DATA
14
11
03
SUB TOTAL
24971
22295
2676
DRIVER
37
33
04
KARYALA KARYA SAHAYAKA
26
25
01
LABOURER
02
--
02
SUB TOTAL
65
58
7
GRAND TOTAL
27656
24516
3140
OPERATOR
BASIC STAFF
(Source : Salaries and Cadre Committee Report - 2010)
2.3 COMPOSITION OF THE STAFF OF THE ADMINISTRATION DIVISION
Even though the identified approved cadre of this division headed by the General
Manager is 32, the existing staff consists only of 24 personnel.
25
3.0 ESTABLISHMENT DIVISION
An organization can be defined as a place where a group works together
methodically to achieve a common objective
We all are aware of the fact that stronger and more regular the internal administration
and the management structure of any organization, the easier it becomes to achieve its
planned objective. In this respect, management practices including personal
supervision and human resource management are basically tied up with office
management.
In the process of personnel administration, the Establishment Division attends to a
large number of functions including the selection and recruitment of the staff required
for the institution, cadre planning, deciding on staff salaries, appreciation of worker
efficiency, promotions, transfers, interdictions, settlement of worker grievances,
disciplinary matters, administration, trade union activities etc.
3.2 OBJECTIVES OF THE ESTABLISHMENT DIVISION:-
1
Providing official guide lines to Samurdhi Managers/ Samurdhi Development
Officers.
2
Providing guidance required to solving various problems arising during the
performance of duties.
3
Raising the efficiency of officers, through prompt and effective action
regarding their official requirements.
FUNCTIONS CARRIED OUT IN THE YEAR 2010

Establishment of transfer boards at district, divisional and national levels

Transfers effected of Samurdhi Managers
25

Transfers effected of Samurdhi Development Officers
81

Total (cumulative) no of Samurdhi Development Officers confirmed
in their posts at the end of their probationary periods

1500
Total (cumulative) no of Samurdhi Managers confirmed
in their posts at the end of their probationary periods
150

No of Samurdhi Managers whose resignations had been accepted
10

No of Samurdhi Development Officers whose resignations had been accepted
15
26

No of Samurdhi Managers interdicted
08

No of Samurdhi Developoment Offices interdicted
15

No (cumulative) of Samurdhi Managers promoted to grade V
300

227 officers in the Head Office were granted their annual increments

Head Office has got down various documents found deficient in the officers’ personal files
and regularized those.

50 qualified grade 11 Samurdhi Development Officers were promoted to grade 1

Up dating and maintaining records at district level and divisional level, of statistics of
Samurdhi Managers and Samurdhi Development Officers Officers posted to grama seva
divisions, Samurdhi bank societies, Samurdhi maha sangams, Divisional Secretariats and
District Secretariats.

Action has been taken to pay acting allowances to Samurdhi Managers and Samurdhi
Development Officers serving in districts where there were permanent vacancies.

Taking necessary action to reckon the period of service prior to 01/10/1998 of Samurdhi
Development Officers who had worked as Samurdhi Animators.

Taking necessary action to absorb under qualified officers in service as Grade 111 Samurdhi
Development Officers.

All officers in the Establishment Division are expected to examine files under their custody
every three months, and to submit a report of short comings found for future action.
27
4.0
RURAL DEVELOPMENT DIVISION
Under the immense efforts made by the government for rural development within
the Samurdhi development scheme, whereby the most disadvantaged segments of
the poor community were mobilized, made more important stake holders of society
and their incomes increased, the services rendered and the contribution made by the
Rural Development Division shows a very high value. The main objective of the
Rural Development Division is, in addition to the development of infra structure
facilities, to take into consideration every aspect of development of society and
being committed in that behalf in the sphere of rural development.
In approaching the above objective, the main function of the Rural Development
Division of the Samurdhi Authority of Sri Lanka has been the development of infra
structure facilities which directly assist the economic, social and spiritual development
of rural areas involving the poor, as well as to provide financial allocations, guidance
and advice necessary to obtain these requirements.
However, it must be especially mentioned that this Divisions contributes to the
development of not only the infra structure facilities leading to income generation, but
also the development of infra structure facilities relating to basic human needs and the
environment. Accordingly, small scale tanks, irrigation, channels, bunds, lift irrigation
methods, agricultural wells, multi purpose centers, inland fishery reservoirs, provision
of potable water facilities, development of trade skills, preservation of the environment,
recycling of waste, roads in arduous rural areas, construction of small bridges etc could
be described as the projects implemented by this Division.
Accordingly, the Rural Development Division was able, for the first time, in the year
1995 to provide a sum of Rs.10,000/= to implement a project in every village with an
added value of over Rs.50,000/=. In this manner, this program to develop the infra
structure facilities was implemented continuously in respect of every village up to the
year 2007. In the year 2007 this was implemented giving priority to 4000 villages, and
from the year 2008 to year 2010, it was implemented in all the villages, giving priority
to 3060 villages.
Accordingly, in the year 2010 too, giving priority to the 3060 villages, this Division
participated in the development process through 05 main programmes in order to
perform an extensive function towards the livelihood, spiritual and social development
of the people of all villages.
PROGRAMMES IMPLEMENTED IN THE YEAR 2010
1. Jathika Saviya Gama Neguma Accelerated Infra Structure Development Programme
(in the 3060 Grama Niladhari wasams)
2. Infra Structure Development Programme directly assisting livelihood development (in
the 3060 Grama Niladhari wasams)
3. Special Projects Developoment Programme.
4. Continuation programme
5. Gama Neguma Second Community Development and Livelihood Improvement
Project
28
MAIN PROGRAMMES IMPLEMENTED IN THE YEAR 2010
Table No- 01
Amount
allocated
(Rs Mn)
Development
Programme
Jathika Saviya Gama
Neguma Accelerated
Infra Structure
Development
Programme
Infra Structure
Development
Programme directly
assisting livelihood
development
Special Projects
Development
Programme
Continuation works
Gama Neguma Second
Community
Development and
Livelihood
Improvement Project
TOTAL
No of
projects
completed
Con.tribution of
the Samurdhi
Authority
(Rs Mn)
Value of
community
contribution
(Rs Mn)
Added value
(Rs Mn)
No of
beneficiary
families
963.80
2273
774.95
191.52
966.47
421,064
866.63
3594
758.48
187.03
945.51
374,970
66.50
138
55.64
13.56
69.20
36,808
6.18
3.00
16
* (94)
5.32
1.56
1.19
0
6.51
1.56
2,610
0
1906.11
6021
1595.95
393.3
1989.25
835,452
Source – Based on Progress Reports.
*Not included in the total no of projects as these were briefings.
Contribution of the Samurdhi Authority for projects completed under programmes
implemented (Rs Mn)- 2010
Chart no – 01
Con.tribution
of the
Samurdhi
Authority , 5.32
Con.tributio
n of the
Samurdhi
Authority ,
55.64
Con.tribution
of the
Samurdhi
Authority , 1.56
Con.tribution
of the
Samurdhi
Authority ,
774.95
Con.tribution
of the
Samurdhi
Authority ,
758.48
29
No of projects completed under programmes implemented -2010
Chart no. - 02
Special Projects
Development
Programme
Continuation
works
Infra Structure
Development
Programme
directly assisting
livelihood
development
01.
Jathika Saviya
Gama Neguma
Accelerated
Infra Structure
Development
Programme
JATHIKA SAVIYA GAMA NEGUMA ACCELERATED INFRA STRUCTURE
FACILITIES DEVELOPMENT PROGRAMME - 2010
A sum of Rs.Mn. 963.80 had been allocated at the rate of Rs.400,000/= per Grama
Niladhari wasama for infra structure development of 3060 Grama Niladari wasams
selected for improvement as
prosperous villages, which had
been developed by the Samurdhi
Authority of Sri Lanka since the
year 2008. Out of this amount, a
sum of Rs.Mn 774.95 had been
spent for the 2273 projects
successfully completed, and the
number of families benefiting
thereby is around 421,064. These
projects
were
implemented
applying the participatory development methodology and the value of the
community’s contribution is around rupees million 191.2 and their completed value
exceeds Rs.Mn.966.
30
According to the classification indicated below, it is evident that mainly rural
agricultural roads, small bridges, culverts, minor irrigation works and small water
supply schemes projects had been implemented under this.
Jathika Saviya Gama Neguma Accelerated Infra Structure Facilities
Development Programme – Classification of projects completed – 2010
Table no - 02
PROJECT
AGRICULTURAL ROAD/FLIGHT OF
STEPS
BRIDGES/CULVERTS/ABUTMENT
WALLS/FERRIES
TANKS/WATER WAYS/SLUICES
MULTI
PURPOSE/TRAINING/MARKETING/
WEEKLY FAIR
/INDUSTRIES/COLLECTING CENTERS
POTABLE WATER PROJECTS
No of
projects
completed
Contribution of
the Samurdhi
Authority
(Rs Mn)
Value of
community
contribution
(Rs Mn)
Value at
completion
(Rs Mn)
No of
beneficiary
families
2110
721.09
180.27
901.36
403,157
38
15.76
3.94
19.7
6841
10
4.27
1.06
5.33
1187
23
3.73
0.93
4.66
6910
51
18.75
4.69
23.44
2250
40
10.98
0.54
11.52
629
01
2273
0.37
774.95
EXTN OF ELECTRICITY
DEVELOPMENT OF PLAY GROUNDS
TOTAL
0.09
0.46
90
191.52
966.47
421,064
Source – Progress reports.
JATHIKA SAVIYA GAMA NEGUMA ACCELERATED INFRA STRUCTURE FACILITIES
DEVELOPMENT PROGRAMME – 2010. PROJECTS COMPLETED.
Chart no. – 03
POTABLE WATER
BRIDGES/CULVER
PROJECTS
TS/ABUTMENT
51
WALLS/FERRIES
TANKS/WATER
EXTN OF 38
WAYS/SLUICES
ELECTRICITY
10
40
MULTI
PURPOSE/TRAINI
AGRICULTURAL
NG/MARKETING/
ROAD/FLIGHT
OF
23
STEPS
2110
31
DEVELOPMENT
OF PLAY
GROUNDS
1
02.
INFRA STRUCTURE DEVELOPMENT PROGRAMME
ASSISTING LIVELIHOOD DEVELOPMENT - 2010
DIRECTLY
Under this, an allocation of Rs. Mn. 866.63 had been made at the rate of Rs.
500,000/= per Grama Niladhari wasam for Infra Structure Facility Development
Projects which directly assist the livelihood development of the targeted group of low
income earners in order to enable them to reach a high social living standard by
mobilizing them economically.
In order to achieve the above objective successfully, in selecting projects under this
programme, percentage values were given, and when making allocations too, these
percentage values were adhered to.
Accordingly, proposals had to be selected as shown below:
I.
II.
Proposals for Infra Structure Facilities related to the agricultural sector –
40%
Proposals for Infra Structure Facilities related to the industrial, marketing,
animal husbandry and fisheries sectors– 25%
III.
Proposals for Infra Structure Facilities related to basic human needs and
environmental development sector – 20%
IV.
Proposals for Infra Structure Facilities related to the improvement of the
living standards of the people sector – 15%
Under this programme which was implemented in this manner, it became possible to
complete 3594 very successful projects incurring an expenditure of Rs. Mn. 758.48,
and the number of beneficiary families thereby affected is around 374,970. This
involved a high community participation worth over Rs. Mn. 187.03, and accordingly,
the finished value of the projects completed under this programme is approximately
Rs. Mn. 950.
The under mentioned table indicates the classification of the projects completed under
this programme
32
Table no. - 03
INFRA STRUCTURE DEVELOPMENT PROGRAMME DIRECTLY ASSISTING
LIVELIHOOD DEVELOPMENT- 2010
Classification of the projects completed
CLASSIFICATION OF PROJECT
No of
projects
completed
Contribution
of the
Samurdhi
Authority
(Rs Mn)
Community
contribution
(Rs Mn)
Value at
completion
(Rs Mn)
No of
beneficiary
families
AGRICULTURAL ROAD/FLIGHT OF STEPS
1104
245.63
61.40
307.03
183,441
319
66.72
16.68
83.4
29,275
1216
303.71
75.94
379.73
109,400
190
31.65
7.91
39.56
21,998
708
93.20
23.3
116.5
28,972
EXTN OF ELECTRICITY
51
12.83
0.64
13.47
1,424
SANITATION FACILITIES /RELIGIONS
BUILDINGS/ENVIRONMENTAL
PRESERVATION/DEVELOPMENT OF PLAY
GROUNDS
06
4.66
1.16
5.82
460
TOTAL
3594
WALLS/FERRIES
MULTI PURPOSE/TRAINING/MARKETING/
WEEKLY FAIRS/ANIMAL
HUSBANDRY/INDUSTRIES/COLLECTING
CENTERS
POTABLE WATER/AGRO/LIFT
IRRIGATION PROJECTS
758.48
187.03
945.51
Source – Progress reports
374,970
INFRA STRUCTURE DEVELOPMENT PROGRAMME DIRECTLY ASSISTING
LIVELIHOOD DEVELOPMENT- 2010
No of projects completed
Table no. - 04
POTABLE
WATER/AGRO/LIF
T IRRIGATION
MULTI PROJECTS , 708
PURPOSE/TRAINI
NG/MARKETING/,
190
EXTN OF
ELECTRICITY , 51
AGRICULTURAL
ROAD/FLIGHT OF
STEPS, 1104
TANKS/WATER
WAYS/SLUICES,
1216
SANITATION
FACILITIES
/RELIGIONS
BUILDINGS/ENVIR
ONMENTAL
PRESERVATION/D
EVELOPMENT OF
PLAY GROUNDS, 6
BRIDGES/CULVER
TS/ABUTMENT
WALLS/FERRIES,
319
The above table and chart indicate that mainly irrigation projects had been
implemented under this programme.
33
03.
SPECIAL PROJECT DEVELOPMENT PROGRAMME - 2010
Under this programme, allocations were made for the implementation of development
projects which were essential and had to be given priority. For this purpose, no
wasama or region was given special preference, and the only factors taken into
consideration in making the allocations were the essentiality and priority of the
project. Under this programme, it became possible to utilize the allocations for more
productive projects related to economic, social and spiritual development, but which
could not have been implemented with a small amount of money.
A sum of Rs.Mn.66.50 had been allocated for this programme, and it was possible to
successfully
complete
138 highly productive
projects, incurring an
expenditure
of
Rs.Mn.55.64. The value
of
community
participation for this was
around Rs. Mn. 13.56
and the number of
beneficiary
families
affected by the projects
completed under this is
around 36808.
DEVELOPMENT PROGRAMME
– 2010 – ANALYSIS OF COMPLETED PROJECTS
TABLE NO 04
CLASSIFICATION OF THE PROJECT
WALLS/FERRIES
WEEKLY FAIRS/
INDUSTRIES/COLLECTING CENTERS
POTABLE WATER /AGRO/LIFT
IRRIGATION PROJECTS
EXTEN OF ELECTRICITY
RELIGIOUS/SANITATION/
FACILITIES
TOTAL
No of
projects
completed
Contribution of
the Samurdhi
Authority
(Rs Mn)
Community
contribution
(Rs Mn)
Value at
completion
(Rs Mn)
No of
beneficiary
families
89
35.75
8.93
44.68
22,076
05
5.11
1.27
6.38
2,652
10
2.50
0.62
3.12
5,961
09
2.85
0.71
3.56
3,280
12
5.88
1.47
7.35
1,411
03
10
1.59
1.96
0.07
0.49
1.66
2.45
194
1,234
138
55.64
13.56
69.20
36,808
SOURCE : PROGRESS REPORTS
34
SPECIAL PROJECTS DEVELOPMENT PROGRAMME – 2010 –
ANALYSIS OF COMPLETED PROJECTS
CHART NO 05
MULTI
PURPOSE/TRAININ
G/MARKETING/, 9
RELIGIOUS/SANITA
EXTEN OF
TION/, 10
ELECTRICITY, 3
POTABLE WATER
/AGRO/LIFT
IRRIGATION
PROJECTS , 12
TANKS/WATER
WAYS/SLUICES,
10
AGRICULTURAL
ROAD/FLIGHT OF
STEPS, 89
BRIDGES/CULVERTS
/ABUTMENT
WALLS/FERRIES, 5
04. CONTINUATION PROGRAMME – 2010
A sum of Rs.Mn. 6.18 was allocated for the year 2010 in respect of left over projects
approved under the allocations for the year 2009. Out of this,, work of 16 continuation
projects were able to be completed utilizing an allocation of Rs Mn. 5.32, and the
number of beneficiary families affected thereby was around 2610.
CONTINUATION PROGRAMME – 2010.
ANALYSIS OF PROJECTS COMPLETED
CLASSIFICATION OF THE PROJECT
WALLS/FERRIES/TANKS//DAMS
Table No. 05
No of
projects
completed
Contribution of
the Samurdhi
Authority
(Rs Mn)
Value of
community
contribution
(Rs Mn)
Value at
completion
(Rs Mn)
No of
beneficiary
families
03
0.56
0.14
0.7
440
05
1.89
0.47
2.36
963
01
0.50
0.12
0.62
165
04
1.25
0.31
1.56
778
02
01
0.58
0.54
0.02
0.13
0.6
0.67
114
150
16
5.32
1.19
6.51
2610
WEEKLY FAIRS/
INDUSTRIES/COLLECTING CENTERS
POTABLE WATER
RELIGIOUS/SANITATION/
FACILITIES/ENVIRONMENTAL
PRESERVATION/DEVELOPMENT OF PLAY
GROUNDS
TOTAL
SOURCE : PROGRESS REPORTS
35
CONTINUATION PROGRAMME – 2010.
NO OF PROJECTS COMPLETED
EXTEN OF RELIGIOUS/SANIT
ELECTRICITY, 2 ATION/, 1
POTABLE WATER,
4
05.
AGRICULTURAL
ROAD/FLIGHT OF
STEPS, 3
BRIDGES/CULVER
TS/ABUTMENT
WALLS/FERRIES/T
ANKS//DAMS, 5
MULTI
PURPOSE/TRAINI
NG/MARKETING/,
1
GAMA NEGUMA SECOND COMMUNITY DEVELOPMENT AND LIVELIHOOD
IMPROVEMENT PROJECT IMPLEMENTED IN COLLABORATION WITH THE
SAMURDHI AUTHORITY OF SRI LANKA - 2010
The Gama Neguma Second Community Development and Livelihood Improvement Project
implemented in collaboration with the Samurdhi Authority of Sri Lanka was started in the
year 2009.
In the year 2009, this programme was implemented in fifty selected Grama Niladhari
wasams in the districts of Moneragala, Badulla, Ratnapura, Hambantota and Polonnaruwa.
In the year 2010, expanding further, forty two Grama Nilaldhari wasams from the Kegalle
and Nuwara Eliya districts were added to this project. Accordingly, in the year 2010, this
programme was successfully implemented in ninety Grama Niladhari wasams in seven
districts.
The main feature of this programme was the advance towards an integrated development
using the community run methodology, and the responsibility of the Samurdhi Authority of
Sri Lanka within this programme is to implement the village development plan after
establishing peoples companies in these villages within three years from the year 2010, and
to make available to the villages the relevant funds from the Gama Neguma Second
Community Development and Livelihood Improvement Project.
The main facilitator in implementing this methodology in the relevant wasama is the
Samurdhi Development Officer, while the Samurdhi Manager will attend to the monitoring
and supervision.
In the year 2010, a sum of three million rupees was allocated for the training of facilitators,
stationery, administrative costs including travelling expenses in respect of this programme,
and out of this amount, Rs.Mn. 1.56 has already been spent in that behalf.
Even though this was a novel project for the Samurdhi Authority of Sri Lanka, the Rural
Development Division was able, in the year 2010, to advance on a clear path within this
programme after undergoing training and after studying the methodology with ardent
enthusiasm.
Shown below are the data about the wasams selected for this programme from the
relevant districts, and about the allocations obtainable for these wasams:
36
BASIC DATA ABOUT WASAMS SELECTED
FOR THE GAMA NEGUMA SECOND
COMMUNITY DEVELOPMENT AND LIVELIHOOD IMPROVEMENT
PROJECT
IMPLEMENTED IN COLLABORATION WITH THE SAMURDHI AUTHORITY OF SRI LANKA
Table No. 07
DISTRICT
No of wasams project
is being implemented
11
07
05
05
20
22
20
90
RATNAPURA
POLONNARUWA
MONERAGALA
BADULLA
HAMBANTOTA
KEGALLE
NUWARA ELIYA
TOTAL
No of
companies
14
10
08
08
22
33
23
118
Total no of
families
3087
1549
1851
1833
5563
7855
5136
26874
Total
population
Rural Development
Fund Rs
12430
62,150,000
5819
29,095,000
7346
36,730,000
6890
34,450,000
23747
118,735,000
34527
172,635,000
19689
98,445,000
110448
490,090,000
PROGRESS OF THE GAMA NEGUMA SECOND COMMUNITY DEVELOPMENT AND
LIVELIHOOD IMPROVEMENT PROJECT IMPLEMENTED IN COLLABORATION WITH
THE SAMURDHI AUTHORITY OF SRI LANKA - 2010
Table no. - 08
DISTRICT
RATNAPURA
POLONNARUWA
MONERAGALA
BADULLA
HAMBANTOTA
KEGALLE
NUWARA ELIYA
TOTAL
NO OF
WASAMS
NO OF WASAMS
WHERE BASE LINE
SURVEY WAS HELD
11
07
05
05
20
22
20
90
11
07
05
05
20
48
NO OF WASAMS THAT
OBTAINED THE ABILITY
DEVELOPMENT
INSTALMENT
04
03
07
OVERALL PROJECT CLASSIFICATION, INVESTMENT AND FINISHED VALUE-
2010
Table No- 06
CLASSIFICATION OF THE
PROJECT
No of projects
completed
Contribution of
the Samurdhi
Authority
(Rs Mn)
Value of
community
contribution
(Rs Mn)
Value at
completion
(Rs Mn)
No of
beneficiary
families
AGRICULTURAL ROAD/FLIGHT
OF STEPS
WALLS/FERRIES/
TANKS//CHANNELS/DAMS
3307
1003.04
250.76
1253.8
609,114
367
87.79
21.94
109.73
39,731
1236
312.26
78.06
390.32
116,548
MULTI
PURPOSE/TRAINING/MARKETING/
ANIMAL HUSBANDRY/WEEKLY
FAIRS/ INDUSTRIES/COLLECTING
CENTERS
222
38.71
9.60
48.31
32,353
37
POTABLE WATER/AGRO/LIFT
IRRIGATION PROJECTS
RELIGIOUS
BUILDINGS//SANITATION/
FACILITIES/ENVIRONMENTAL
PRESERVATION/DEVELOPMENT
OF PLAY GROUNDS
TRG/AWARENESS/ADMIN COSTS
775
119.08
29.77
148.85
33,411
96
18
25.98
7.53
1.29
1.88
27.27
9.41
2,361
1,934
1.56
0
1.56
0
1595.95
393.3
1989.25 835,452
TOTAL
* Source – Based on Progress Reports.
*Not included in the total no of projects as these were briefings
*94
6115
OVERALL CLASSIFICATION OF PROJECTS – 2010
NO OF PROJECTS COMPLETED AND EXPENDIURE INCURED RS.MN.
3500
3000
2500
2000
1500
1000
500
0
3307
1236
1003.04
367
87.79
775
222
312.26
No of projects completed
96
94
18
119.08
38.71
25.98 7.53 1.56
Contribution of the Samurdhi
Authority (Rs Mn)
INVESTMENT OF THE RURAL DEVELOPMENT DIVISION FOR DEVELOPMENT
PROJECTS (RS. MN) - 2008-2010
YEAR
PROGRAMME
2008
1.05
0.05
82.78
0
TRG PROGRAMMES/AWARENESS
PROGRESS REVIEW
SPECIAL PROJECTS
SPECIAL VILLAGE DEVELOPMENT
PROJECTS
INFRA STRUCTURE FACILITIES
DEVELOPMENT PROJECTS
ACCELERATED INFRA STRUCTURE
FACILITIES DEVELOPMENT PROJECTS
CONTINUATION PROJECTS
GAMA NEGUMA SECOND COMMUNITY
DEVELOPMENT AND LIVELIHOOD
IMPROVEMENT PROJECT
2009
2010
0
0
72.74
53.89
0
0
55.64
0
0
1475.22
758.48
0
0
774.95
0
0
0
0
5.32
1.56
83.88
1601.85
1595.95
Source – Expenditure returns
TOTAL
38
me earners are the basic target group of the Samurdhi programme, and as the chief
5.0 AGRICULTURAL DEVELOPMENT DIVISION
The main source of livelihood of the majority of Sri Lankans is agriculture, and the
basic objective of this programme is to provide an appropriate methodology to
enhance its productivity at the domestic level and the rural level, thereby raising their
economic and nutritional levels.
Low income earners are the major target group of the Samurdhi programme, and as
the livelihood of the majority of them is tied up with agriculture, with the aim of
increasing their nutritional standards and paving the path for them towards a
sustainable source of income, and providing opportunities for them to be made stake
holders in the national production, a large number of productive and sustainable agro
based projects were implemented, utilizing the regionally available resources and
potential, contributing to the mission of creating a “self sustained village” concurrent
to the Mahinda Chinthana Gama Neguma programme, thereby achieving the targets
of the “Api Wawamu Rata Nagamu” programme. The basic objective of this was the
creation of a prosperous village, and under this, 3060 villages were developed
initially. Through the process of identifying beneficiaries showing an inclination and
potential for agricultural projects, in all 22 districts of the island agro based projects
were implemented, and the 05 districts of Vavuniya, Trincomalee, Batticaloa,
Amparai and Jaffna were also included in this.
MAIN PROGRAMMES BEING IMPLEMENTED
1. Promotion of the growing of local food crops.
2. Strengthening of small scale plantation crop growers.
3. Tilling of fallow paddy lands.
4. Home Garden Development Programme for nutrition enhancement.
5. Development of modern agro technical entrepreneurship knowledge and skills.
It became possible to implement these projects during the current year through the
assistance rendered by line agencies, including the Department of Agriculture.
1. PROMOTION OF THE GROWING OF LOCAL FOOD CROPS.
Taking into consideration local potential and the market demand, through the
promotion of the growth of crops which could be cultivated locally, it became
possible to raise and make sustainable the income levels of beneficiaries, and to
contribute to meeting the local consumer demand.
Some of the projects implemented under this are:
39
 Crop cultivation projects –
fruits, vegetables, leafy vegetables, yams,
field crops, cereals.

Nursery projects - fruits, vegetables, medicinal herbs, flowers and other
exotic plants

Cultivation of mush rooms
40
 Bee keeping at cottage
level.
During the past year, an increase in the income levels of beneficiaries was evident,
through the adoption of new agro techniques and thorough management, due
especially to the introduction of such projects to the rural community, crop
diversification, experimentation of new methods and being induced to think beyond
traditional concepts
Through the implementation of 24,232 regional food projects island wide, it became
possible to make a large number of beneficiaries prosperous, and thereby getting them
to contribute to national production through their increased income levels.
2.
NATIONAL PROJECT FOR THE ENRICHMENT OF SMALL SCALE PLANTATION CROP
GROWERS.
The main objective of this was encouraging through line institutions small scale
plantation crop growers having small plots of land, and fulfilling their cultivation
related requirements. In this connection, attention was paid to the cultivation of
cinnamon, in addition to the cultivation of tea, coconut and rubber, and priority was
especially given to opening of plant nurseries of the relevant crops.
41
3.PROJECT FOR THE TILLING OF FALLOW PADDY LANDS.
These projects were inaugurated to encourage the re tilling of cultivable paddy lands,
abandoned due to a variety of problems. Necessary assistance was given to purchase
seed paddy for the tilling of these lands
4. HOME GARDEN DEVELOPMENT FOR NUTRITION ENHANCEMENT
This project was implemented with the objective of making available the basic
nutritional requirements of low income earners from their home gardens themselves
enabling them to earn an extra income through the sale of the surplus production, and
the creation of a environmentally productive management. For this purpose, the
following items were included:I.
Fruit crops - Fruits such as mangoes, plantains, papaw, pine apple,
mangoesteen, rambuttan, oranges, lime, passion fruit etc
II.
Vegetables – Vegetables such as brinjals, tomatoes, chillies, long
beans, bitter gourd, snake gourd, cucumber, ladies fingers, carrot, beet,
winged beans etc.
III.
Leafy vegetables – Leafy vegetables such as kathuru murunga, gotu
kola, mukunu wenna, kan kung, thampala, spinach etc.
IV.
Yams – Sweet potato, manioc, kiri ala, vel ala, inanal, raja ala etc.
V.
Indigenous medicinal herbs – Bin kohomba, katuwal batu, aloe,
ginger, turmeric, pol pala, lemon grass etc.
VI.
Other crops – Coconut, king coconut, arecanut, karapincha, lemon
grass, betel etc.
VII.
VIII.
Compost fertilizer production units
Bee keeping units
42
5.DEVELOPMENT OF AGRO TECHNICAL AND ENTREPRENEURSHIP KNOWLEDGE
AND SKILLS
This project was implemented with the objective of increasing the necessary agro
technical and entrepreneurship knowledge in theory and in practice, to increase the
quality and productivity of agro based projects and self employment, as well as to
bring them to a sustainable level.
PROGRESS OF THE AGRICULTURAL DEVELOPMENT PROGRAMME – 2010
SERIAL
NO
PROGRAMME
NO OF
PROJECTS
EXP
RS MN
1
PROMOTION OF LOCAL FOOD CROPS
24,232
204,735,379.00
2
STRENGTHENING THE SMALL SCALE
PLANTATION CROP OWNERS (TEA,
COCONUT, RUBBER AND CINNAMON)
TILLING OF FALLOW PADDY FIELDS
5,765
52,890,905.00
339
2,701,398.00
DEVELOPMENT OF HOME GARDENS FOR
NUTRITION ENHANCEMENT (IMPLEMENTED
UNDER THE CYCLIC FUND)
61,469
37,767,136.00
3
4
43
Physical progress of Agricultural Projects
Local food
24,232
Small scale plantation
crops
???
Tilling of fallow paddy
fields
Development of home
gardens
5,765
339
61,469
FINANCIAL PROGRESS OF AGRO PROGRAMMES
250.00
204.73
RS.?????
200.00
150.00
.
MN.
100.00
52.89
37.76
50.00
2.70
0.00
Local food
Small scale
plantation crops
Tilling of
Fallow
paddy
??????????
fields
PROGRAMME
44
Development
Home gardens
6.0 ANIMAL HUSBANDRY AND FISHERIES
DEVELOPMENT PROGRAMME
The responsibility of this programme is shouldering the onerous
burden of encouraging Samurdhi beneficiaries and low income
earners to undertake animal husbandry and fisheries projects aimed at
enhancing their livelihood and taking action in that behalf
From time immemorial, Sri Lanka has been a country inhabited by people centered
round an agricultural livelihood. Animal husbandry takes a prominent place in the
agricultural sector. Live stock farming projects can be implemented utilizing land
which has become uncultivable due to shortage of water and other reasons related to
the land. Similarly, Sri Lanka is an ocean bound island, and water reservoirs of
varying sizes are situated in the interior too. By utilizing these resources, there is a
higher potential for the fisheries industry to be expanded.
The Samurdhi Authority of Sri Lanka is engaged in the onerous burden of encouraging
Samurdhi beneficiaries and low income earners to undertake various projects to
develop their livelihood. Taking cognizance of this potential, especially animal
husbandry and fisheries projects have been implemented targeting Samurdhi
beneficiaries and low income earners. In this connection, encouraging them to engage
themselves in animal husbandry and fisheries projects will result in the reduction of
their unemployment, strengthening of their economy and increase of the nutritive
levels of their families.
In the year 2010, the Animal Husbandry and Fisheries Programme of the Samurdhi
Authority of Sri Lanka implemented various animal husbandry and fisheries projects
keeping in view the following objectives:1
Increasing the living standards of Samurdhi beneficiaries and low income
earners by providing them facilities to engage in animal husbandry and
fisheries projects in a sustainable and productive manner.
2
Introduction of value added projects relating to primary animal husbandry and
fisheries produce through processing, and providing marketing facilities
3
Uplifting the nutritive standards of Samurdhi beneficiaries through integrated
nutrition programmes
4
Attending to all coordinating functions related to the introduction of services
and new technology necessary for the enhancement of productivity of projects
in the animal husbandry and fisheries sectors.
In the year
2010, the Samurdhi Programme was implemented targeting the initially selected 3060
villages. Accordingly the Animal Husbandry and Fisheries programme was also
implemented giving priority to these 3060 selected villages. For the year 2010, the
Animal Husbandry and Fisheries Division was allocated a sum of 275 million rupees,
and during the year 2010, this money was utilized to implement the following main
programmes.
ANIMAL HUSBANDRY AND FISHERIES DEVELOPMENT PROGRAMME.
45
1. Creating opportunities for animal husbandry and fisheries projects and
encouraging beneficiaries towards same.
2. Implementation of projects for adding value to primary products.
3. Identifying appropriate projects for the enhancement of family nutritional
conditions.
4.
Imparting project oriented knowledge to beneficiaries directly involved in
projects
01. CREATING OPPORTUNITIES FOR ANIMAL HUSBANDRY AND FISHERIES
PROJECTS AND ENCOURAGING BENEFICIARIES TOWARDS SAME.
The Milch Cow Development Project could be described as one of the major projects
under this. Supply of milch cows, construction of cattle sheds, establishment of bio
gas units and cattle insemination units can be shown under this.
The main objective of this project could be described as increasing the milk
production of the small scale milk farmers among the Samurdhi beneficiaries and low
income earners, increasing the consumption of local fresh milk by reducing even to
some extent the large amounts of foreign exchange spent annually to import milk
foods. Further, these projects are implemented to obtain a higher milk yield by
avoiding to some extent at least traditional methods, as a solution to the energy crisis
and finding solutions for the shortage of milch cows necessary for the milch cow
project.
With the available local potential and the consent of the beneficiaries, projects such as
goat breeding, piggeries, production of eggs as an enterprise, implementation of
inland and coastal fisheries projects, and breeding of exotic fish were implemented.
7102 projects were launched in the year 2010, and a sum of 121.104 million rupees
spent in that behalf.
20IMPLEMENTATION OF PROJECTS FOR ADDING VALUE TO PRIMARY PRODUCTS.
The objective of this project is to obtain a higher income through adding value to
primary products obtained through the project during periods of over production and
avoiding waste. Under this, priority is given to dairy products and fisheries products.
In the year 2010, a sum of rupees million 0.284 had been spent for 35 projects.
46
03. IDENTIFYING APPROPRIATE PROJECTS FOR THE ENHANCEMENT OF FAMILY
NUTRITIONAL CONDITIONS
Mainly, the promotion of breeding hens at cottage level to increase family
nutritional levels was started. Each family was supplied with 10 – 25 x month old
pullets. During the last year, rupees million 14.43 has been spent for 2144 projects.
04.IMPARTING PROJECT ORIENTED KNOWLEDGE TO BENEFICIARIES DIRECTLY
INVOLVED IN PROJECTS
The main objective is the coordination of the subject oriented technical and auxiliary
services. In this case, it was targeted to obtain a larger contribution to the national
income by increasing the productivity of the ongoing Animal Husbandry and
Fisheries Projects, as well as those planned to be implemented soon. For any project
to be successful, it is essential for project beneficiaries to be constantly educated
about the latest information and technological guidance. As such, project beneficiaries
were grouped Secretarial Division wise, and successful training programmes were
carried out by using resource personnel proficient in the relevant fields. In this
connection, beneficiaries were often directed to training programmes conducted by
47
other line institutions. These training programmes were held for those beneficiaries
engaged in animal husbandry and fisheries projects by utilizing direct provisions and
various loans given by Samurdhi banks. Under this, training programmes were
conducted in various fields such as dairy farming, egg production, fattening of pigs,
goat breeding, breeding of fish etc. A sum of 0.02876 million rupees had been spent
for this.
PROJECTS STARTED AT DISTRICT LEVEL AND INVESTMENTS MADE IN
THE YEAR 2010
DISTRICT
COLOMBO
NO OF PROJECTS
STARTED
37
AMOUNT
RS MN.
0.829296
GAMPAHA
498
7.446871
KALUTARA
525
7.113724
GALLE
273
4.179546
MATARA
285
2.977317
96
1.242602
RATNAPURA
110
1.596984
KEGALLE
352
4.962621
KANDY
749
11.717161
MATALE
172
3.841201
NUWARA ELIYA
827
14.34215
BADULLA
168
3.775951
74
1.152684
ANURADHAPURA
334
4.218783
POLONNARUWA
739
6.630063
KURUNEGALA
672
13.081976
PUTTALAM
957
13.247303
TRINCOMALEE
339
5.569148
AMPARA
354
5.320988
BATTICALOA
443
9.204317
VAVUNIYA
237
3.564125
1040
9.803185
9281
135.818003
HAMBANTOTA
MONERAGALA
JAFFNA
TOTAL
48
INVESTMENTS AT DISTRICT LEVEL RS.MN.
16
14
12
10
8
6
4
2
0
NO OF PROJECTS STARTED AT DISTRICT LEVEL
1200
1000
800
600
400
200
0
49
CLASSIFICATION OF PROJECTS STARTED
PROJECT
NO OF
PROJECTS
1730
2078
137
2144
870
740
1132
362
24
35
29
9281
DAIRY FARMING
GOAT FARMING
BREEDING OF PIGS
EGG PRODUCTION(NUTRITION)
EGG PRODUCTION (SALE)
CATTLE SHEDS
MARINE FISHERIES
INLAND FISHERIES
EXOTIC FISH
FISHERY PRODUCTS/DAIRY PRODUCTS
ESTABLISHMENT OF BIO GAS UNITS
TOTAL
DAIRY FARMING
35
24
GOAT FARMING
29
BREEDING OF PIGS
362
1730
1132
EGG PRODUCTION(NUTRITION)
EGG PRODUCTION (SALE)
740
CATTLE SHEDS
870
2078
MARINE FISHERIES
INLAND FISHERIES
2144
EXOTIC FISH
137
FISHERY PRODUCTS/DAIRY
PRODUCTS
ESTABLISHMENT OF BIO GAS UNITS
50
7.0 INDUSTRIAL DIVISION
Industrial projects have earned an important place in the implementation of the
livelihood development programme for the mobilization of Samurdhi
beneficiary families. In the process of industrial production in keeping with
the current competitive market, attention was paid to small and medium scale
industries as well as to to cottage industries. The 2010 industrial programme
was planned and implemented with the main objective of making available the
technical equipment necessary to supply goods of quality and excellent finish
to the market, after identifying the short comings and problems of industrial
projects already being implemented by Samurdhi beneficiaries.
This programme was implemented under the motto “Small Industries to the Village”,
and the Industrial Division has contributed a sum of 213 million rupees financially to
develop more than 12716 projects, under a main programme, to suit the requirements
of the local market.
SMALL SCALE INDUSTRIAL PROJECT DEVELOPMENT PROGRAMME.
Out of the programmes implemented in the year 2010, a remarkable level could be
noticed in the Small Scale Industrial Project Development Programme developed
under the 3060 Villages Development Programme and the wasams extraneous to the
3060 villages. The special interest and enthusiasm of the Samurdhi beneficiaries and
low income earners towards this programme was manifest this year too, and by
purchasing new technical equipment to improve their industries, and maintaining
these labour intensive projects at cottage level, it has become possible to improve
their and their families’ income.
Concurrent to the Gama Neguma national development programme, this programme
was implemented island wide giving priority to the 3060 Villages Development
Programme, and individual and group minor and small scale industrial projects have
been developed in large numbers. The total number of such completed projects in the
year 2010 is 12746. The amount spent was Rupees million 213.24. The breakdown of
projects developed and relevant photographs are shown below:
Vehicle repair

Exercise book production

Leather goods production

Carpentry

Aluminium works

Tailoring
• Confectionary Items
• Fiber related products
• Tinkering and painting industry
• Welding industry
• Printing industry
• Bakery products
51

Black Smith trade

Gemmology

Rice processing


Reed products
Cement industries
• Jewellery industry
• Coconut wood industry
• Spice products
• Rattan related industry
52
Serial No
LIVELIHOOD DEVELOPMENT PROGRAMME - 2010
3060
District
No. of
projects
commen
ced
Total
Extraneous to 3060
No. of
projects
commence
d
Amount
Spent Rs.
No. of
projects
Amount
Spent Rs.
Amount Rs
Colombo
1
334
Gampaha
2
3
4
559
Kalutara
Galle
6
8
9
10
11
12
13
14
15
16
Nuwara Eliya
Kurunegala
Puttalama
Anuradhapura
Polonnaruwa
Badulla
Monaragala
Rathnapura
18
19
Trincomalee
17,933,573.00
1561
30,338,162.00
11,126,322.50
447
6,054,045.51
517
6,889,111.61
964
12,943,157.12
775
11,102,671.27
1333
17,916,299.27
501
6,915,890.65
972
14,141,757.55
787
13,471,099.40
1128
21,340,488.98
471
6,813,628.00
7,225,866.90
7,869,389.58
255
5,947,420.49
344
6,659,460.00
599
12,606,880.49
93
1,865,000.00
130
2,253,581.50
223
4,118,581.50
493
9,142,647.00
572
9,948,844.74
1065
19,091,491.74
115
1,613,602.00
140
2,683,820.00
255
4,297,422.00
192
2,735,201.00
173
2,558,720.06
365
5,293,921.06
101
1,266,267.05
96
738,413.15
197
2,004,680.20
171
2,411,425.00
60
429,093.36
231
2,840,518.36
59
1,091,251.30
27
443,120.72
86
1,534,372.02
159
2,362,964.00
182
3,118,624.21
341
5,481,588.21
602
15,515,147.46
1009
16,675,764.84
401
6,206,917.85
407
Ampara
1002
770
Kegalla
17
13,954,045.50
4,680,588.00
341
Matale
611
354
Kandy
7
6,058,801.50
6,445,734.50
558
Hambanthota
12,404,589.00
277
416
Matara
5
7,895,244.00
1,160,617.38
401
6,206,917.85
54
1,137,516.25
48
950,793.00
102
2,088,309.25
121
2,747,138.00
80
1,462,300.00
201
4,209,438.00
0
0
0
0
0
-
302
5030033.5
302
5,030,033.50
6049
99426498.31
12716
213240151.9
Batticaloa
20
21
22
Vavniya
Jaffna
Total
6667
53
113813653.6
8.0 MARKETING DEVELOPOMENT DIVISION
The main aim of the marketing development programme is to provide
marketing facilities and various forms of assistance to sell the various
industrial, fishery, animal husbandry and agricultural goods produced by the
low income earning families under the Samurdhi programme, and to find a
good market and prices for their products.
The main objectives of the marketing and services development programme in relation
to the beneficiaries and low income earners are as follows:
Strengthening and making sustainable the small and medium scale entrepreneurs
already engaged in running marketing and services projects.
 Raising living conditions of members of above mentioned families hoping to
commence small scale enterprises through making available the necessary capital
equipment (by providing them with financial assistance).
At the same time, by making available the guidance and other supporting services
necessary to reach the above goal, assistance is also given to obtain a fair price for their
products, minimizing middlemen and creating products in conformity with the current
market trends and introducing new markets for their products.
With the aim of achieving these main goals, in the year 2010, the Marketing
Development Division provided allocations and implemented the under mentioned main
projects/programmes in the wasams coming under the 3060 villages and wasams
extraneous to these 3060 villages.
i
Marketing Programmes:
 Equipment necessary for home based shops
 Equipment necessary for selling rice.
 Itinerant trade
ii
Services:









Equipment for saloons
Equipment for bicycle repairs
Canteen services/catering services
Vehicle repairs
Vehicle service stations
Beauty salons
Domestic services
Furniture and equipment necessary for crèches
Equipment necessary for communication centres
For the year 2010, a sum of rupees million ll5 was allocated as Treasury provision for the
Marketing Development Programme and by the end of the year, Rs. Mn. 114.68 out of
this allocation had been spent overall to implement the above projects/programmes.
(Annex no. 1)
54
Data collected from the field reveal that the Samurdhi programme has played a
productive role in directing beneficiaries to the various marketing projects listed above ,
and through it making them successful small scale and medium scale entrepreneurs.
MARKETING AND SERVICE DEVELOPMENT PROGRAMME 2009 – PHYSICAL AND FINANCIAL PROGRESS
OF WASAMS RELEVANT TO THE 3060 VILLAGES AND THE EXTRANEOUS WASAMS.
Serial
Number
Project/
Programme
Total
Rs
Amount
spent Rs
Wasams extraneous
to the 3060
villages
No of
Amount
projects spent Rs
No of
projects
Amount
spent Rs
19.30
1842
17.90
3790
37.2
20
0.21
15
0.13
35
0.34
808
718
18
8.12
7.60
0.18
715
706
01
5.80
5.36
0.01
1523
1424
19
13.92
12.96
0.19
528
4.10
401
3.39
929
7.49
4040
39.51
3680
32.59
7720
72.1
Wasam relevant to the
3060 villages
No of
projects
1
Home
shops
2
Rural
weekly
fairs
Itinerant trading
Service projects
Trade
exhibitions
Other
market
centered projects
TOTAL
3
4
5
6
based 1948
SOURCE : REPORT OF THE ASST COMMISSIONER OF SAMURDHI
The direct financial contribution made by the Marketing Development Division for the
implementation of the projects by the beneficiaries and low income earners in the wasams
relevant to the 3060 villages and the wasams extraneous to those under the various main
marketing programmes during the year 2010, is reflected in the above figures, thereby
indicating the contribution made by the Samurdhi programme for the overall economic
development of the island..
Similar to last year, in the year 2010 too most of the provisions made for the marketing
programme had been spent for the supply of capital equipment necessary for small scale
businesses carried out by Samurdhi beneficiaries and low income earners. That is to say, a
sum of rupees million 114.68 had been made available for 8408 projects in the 3060 villages
and wasams extraneous to those.
Data indicate that approving 1517 projects spending Rs Mn l6.24 to improve and maintain
mobile businesses of small scale entrepreneurs such as mobile sales vehicles, pavement
stalls and bicycles, had been an outstanding marketing programme in the year 2010.
Similarly, statistics show that a high contribution has been made for the services sector.
Special attention was paid to projects much in vogue and demand in the market such as
beauty salons, communication centers, hiring of furniture for occasions, catering, hiring of
equipment, supply of public address systems etc., and they have become successful
businessmen due to making available the necessary financial provision and the required
guidance.
55
LIVELIHOOD DEVELOPMENT PROGRAMME – 2010. MARKETING AND SERVICES
DEVELOPMENT PROJECTS – PROGRESS AS AT 31/12/2010 – Annex no 1
Wasams relevant to
the 3060 villages
Relevant to extraneous
wasams
No of
projects
Amount
Rs Mn
No of
projects
Colombo
218
3.5
227
3.07
445
6.57
Gampaha
438
6.41
566
6.2
1004
12.61
Kalutara
542
6.33
711
7.21
1253
13.54
Galle
366
4.18
382
4.25
748
8.43
Matara
359
4.23
592
6.9
951
11.13
Hambanthota
133
1.8
221
2.8
354
4.6
Kandy
91
1.84
189
3.23
280
5.07
Matale
49
1.12
95
1.83
144
2.95
Nuwara Eliya
69
1.4
105
1.72
174
3.12
213
3.1
223
3.3
436
6.4
94
2.44
137
2.53
231
4.97
Anuradhapura
109
1.42
169
2.16
278
3.58
Polonnaruwa
48
0.51
37
0.74
85
1.25
Badulla
42
0.74
6
0.2
48
0.94
Monaragala
15
0.17
15
0.23
30
0.4
Rathnapura
102
1.8
141
1.92
243
3.72
Kegalla
201
3.36
292
3.63
493
6.99
Ampara
300
4.16
0
0.02
300
4.18
Trincomalee
128
2.28
95
1.75
223
4.03
Batticaloa
150
3.3
87
1.48
237
4.78
14
0.33
0
14
0.33
230
2.68
217
2.44
447
5.12
3911
57.1
4507
57.61
8418
114.71
DISTRICT
Kurunegala
Puttalama
Vavniya
Jaffna
TOTAL
56
Amount
Rs Mn
TOTAL
No of
projects
Amount
Rs Mn
LIVELIHOOD DEVELOPMENT PROGRAMME – 2010. MARKETING AND SERVICES
DEVELOPMENT PROJECTS – PROJECT CLASSIFICATION REPORT - PROGRESS AS AT
31/12/2010 – Annex no 2
Classification of project
No. of
beneficiaries
No of projects
Contribution of
Samurdhi Authority
Rs Mn
Retail shops
2092
2092
30.71
Mobile trading projects
1517
1517
16.24
922
922
12.46
43
43
5.26
291
291
3.51
57
57
0.63
Hiring of equipment
193
193
2.46
Tailoring
182
182
1.32
Laundry
44
44
0.64.
Public address eqpmt
55
55
0.98
Photography
20
20
0.33
Sale of flower plants
21
21
0.24
Sale of fruits & vegs
272
272
2.80
Sale of fancy goods
46
46
0.62
Sale of rice
106
106
1.34
Sale of inland fish
49
49
0.75
Sale of lottery tickets
25
25
0.24
Beauty salon/dressing brides
213
213
3.51
Communication centers
17
17
0.41
Winkles
65
65
1.01
Painting
51
51
0.66
Welding
47
47
0.67
Tinkering
19
19
0.28
Sale of fish
252
252
2.46
Repair of vehicles
110
110
1.75
Other services
1879
1879
22.14
53
53
1.26
8641
8641
114.68
Restaurant projects
Sale of agricultural implements
Sale of ready made garments
Wiring services
Cooperative sales outlets
TOTAL
57
CLASSIFICATION OF MARKETING AND SERVICES DEVELOPMENT PROJECTS
IMPLEMENTED
No of projects
Retail shops
Mobile trading projects
Restaurant projects
Sale of agricultural
implements
Sale of ready made
garments
Wiring services
Hiring of equipment
Tailoring
Laundry
Public address eqpmt
Photography
Sale of flower plants
Sale of fruits & vegs
Sale of fancy goods
Sale of rice
Sale of inland fish
Sale of lottery tickets
Beauty salon/dressing
brides
Communication centers
Winkles
Painting
Welding
Tinkering
Sale of fish
Repair of vehicles
58
9.0 HUMAN RESOURCES AND INSTITUTIONAL
DEVELOPMENT DIVISION
The access road to the global level which links the present with the
future will be illuminated through you, having absorbed
knowledge, skills and attitudes correctly.
INTRODUCTION
To make a reality of the theme “Let us build the family by building man. Let us build
the country by building the family. Let us conquer the world by building the country”,
the Human Resources Development Division made tremendous efforts to quench the
thirst of knowledge of the pioneers of the Samurdhi movement, which like an
unbroken chain bolsters efforts to bring into the world a human being perfect in the
economic, social and spiritual spheres, through public welfare without differentiating
between villages and cities. To enable our officers to go forward relentlessly in a
global set up with instantaneous changes, they should be continuously nourished with
technical wisdom and topical knowledge. In this behalf, the Human Resources
Division has cleared the pathway to obtain local and foreign knowledge, practice and
experience through identified sectors. Through this, it has become possible to create a
set of enterprising and creative officers. This provided the potency to create various
approaches to eradicate national poverty. It was the Human Resources Development
Division, which through the development of knowledge, attitudes and skills perfected
the collective effort made by our officers to be empathetic towards a section of our
own community, who had been crushed by bitter experiences and psychological
bondage and to help them to build happy family backgrounds and to up lift them for
the rapid development of the overall country. For this purpose, we guided the officers
through several prominent aspects.
FUNCTIONS
01.
Identifying the training requirements at national and local levels, planning
for training and carrying out training programmes.
02. Selection and sending of officers for foreign scholarships.
03. Acquisition of lands belonging to Samurdhi banking unions and Maha
Sangams.
04. Preparation of forecast reports monthly, quarterly and annually in respect of
the allocations given to the Division by the Treasury, preparing the relevant
progress reports and monitoring of progress.
59
ALLOCATIONS MADE FOR THE YEAR 2010
AMOUNT ALLOCATED AND EXPENDITURE
SERIAL
NO
PROGRAMME
1
ATTITUDE AND PERFORMANCE DEVELOPMENT
1.2
0.211
2
FURTHER TRAINING OPPORTUNITIES FOR
SAMURDHI OFFICERS
4.0
5.970
3
DEVELOPMENT OF INFORMATION TECHNOLOGY
KNOWLEDGE AND SKILLS
4.0
5.086
4
RECOVERY OF LAWFUL POSSESSION OF LANDS WITH
ASSETS OF THE SAMURDHI AUTHORITY
TRAINING AT MANAGEMENT LEVEL
4.5
4.650
5.0
3.279
CONSTRUCTION OF THE STORES BUILDING OF THE
2.3
2.178
21.00
21.374
5
6
AMOUNT
ALLOCATED
RS MN
EXPENDITURE
RS MN
SAMURDHI AUTHORITY
TOTAL
7
6
5
4
3
2
1
AMOUNT ALLOCATED RS. MN.
0
EXPENDITURE RS. MN.
60
The main functions of the Human Resources Division may be defined as the obtaining
of sophisticated office systems and attaining professional development necessary to
achieve the poverty alleviation process more efficiently, creation of a work force
replete with the knowhow and the skills competent enough to achieve the vision and
mission of the Authority, the proper management of the functions and powers of the
Authority, strengthening and utilization of international relations pertaining to the
alleviation of poverty, management of the tasks of the Authority in conformity with
modern information communication technology, and obtaining clear legal ownership
of lands on which banking unions and maha sangams have been built with provisions
allocated by the Samurdhi Authority and programmes such as the construction of the
stores building of the Samurdhi Authority.
TRAINING PROGRAMMES
The Human Resources and Institutional Development Division has taken action to
introduce courses, post graduate studies, diplomas etc, to enhance the efficiency of the
officers engaged in this massive programme aimed at the alleviation of poverty, to
motivate them, to improve their knowledge and skills, to enhance subject oriented
knowledge and to impart the necessary technical knowhow. These programmes have
been divided into three parts as national level training programmes, district level
training programmes and secretarial division level training courses, and this Division
has launched various programmes to enhance the skills of these officers. Officers at
divisional level were given basic computer training in collaboration with the
Vocational Training Authority, in conformity with the Mahinda concept of taking
sophisticated technology to the village. They were taught about e-mail and the use of
the Internet. In addition, officers who showed special skills at district level were
awarded foreign scholarships, thus giving them an opportunity to exchange their
knowledge, skills, attitudes and experiences. Officers were given the opportunity to
obtain foreign scholarships with the aim of getting them to exchange poverty
eradication strategies and experiences of countries such as India, Israel, Pakistan,
Austria, Japan, Thailand, Bangla Desh, Australia and Indonesia.
37 officers of the Samurdhi Authority of Sri Lanka participated in the Basic English
Language Certificate Course conducted by the Bandaranayake Memorial
International Foundation.
61
INFORMATION COMMUNICATION TECHNOLOGICAL KNOWLEDGE SKILLS DEVELOPMENT
DISTRICT
AMOUNT RS
33,525.00
1.
MATALE
2.
KALUTARA
3.
GALLE
4.
KANDY
5.
ANURADHAPURA
97,222.00
6.
POLONNARUWA
33,525.00
7.
BADIULLA
268,200.00
8.
MONERAGALA
238,630.00
9.
NUWARA ELIYA
238,027.50
10. PUTTALAMA
11.
KURUNEGALA
232,125.00
1,002,397.50
MATALE
1%
234,675.00
KANDY
4%
KEGALLE
7%
13. AMPARA
1,866,047.50
TOTAL
5,266,887.50
PUTTALAMA
10%
KURUNEGAL
A
2%
120,690.00
382,185.50
GALLE
19%
AMPARA
35%
519,637.50
12. KEGALLE
KALUTARA
4%
ANURADHAP
URA
2%
BADIULLA
5%
POLONNARU
NUWARA
WA
ELIYA MONERAGAL
1%
5%
A
5%
TRAINING PROGRAMMES AT MANAGEMENT LEVEL
DISTRICT
1.
2.
3.
4.
5.
6.
GAMPAHA
GALLE
HAMABANTOTA
KANDY
KEGALLE
JAFFNA
TOTAL
AMOUNT RS
KEGALLE
14%
473,294
798,500
216,085
1,147,500
430,150
32,265
3,097,794
KANDY
37%
JAFFNA
1%
GAMPAHA
15%
GALLE
26%
HAMABANT
OTA
7%
62
FURTHER TRAINING OPPORTUNITIES
FOR SAMURDHI OFFICERS
DISTRICT
EXPENDITURE
RS
1.
COLOMBO
112,300
2.
GAMPAHA
577,250
3.
KALUTARA
155,750
4.
GALLE
428,200
5.
MATARA
299,450
6.
HAMBANTHOTA
426,000
7.
KANDY
8.
NUWARA ELIYA
9.
KURUNEGALA
412,305
10.
PUTTALAM
109,250
11.
ANURADHAPURAYA
12.
POLONNARUWA
118,250
13.
BADULLA
165,000
14.
MONARAGALA
100,000
15.
RATNAPURA
16.
KEGALLE
17.
AMPARA
18.
TRINCOMALEE
19.
JAFFNA
20.
HEAD OFFICE
TOTAL
COLOMBO
2%
316,900
GAMPAHA
10%
KALUTARA
3%
50,000
71,000
258,000
5,0000
145,400
25,000
509,350
GALLE
7%
HEAD OFFICE
28%
MATARA
5%
JAFFNA
9%
HAMBANTHOT
TRINCOMALEE
A
0%
AMPARA
7%
KANDY
KURUNEGALA
BADULLA
2%
5%
RATNAPURA
7%
3%
ANURADHAPU
KEGALLE
4%
NUWARA
RAYA
1% MONARAGALA POLONNARU
ELIYA
1% PUTTALAM
WA
1%
2%
2%
2%
1,650,800
5,980,205
ATTITUDE AND PERFORMANCE
DEVELOPMENT
DISTRICT
EXPENDITUR
E RS
1. GAMPAHA
63,434
2.
GALLE
19,700
3.
HAMBANTOTA
25,110
4.
POLONNARUWA
61,200
5.
BADULLA
24,150
6.
HEAD OFFICE
17,694
TOTAL
HEAD
OFFICE
BADULLA 8%
12%
POLONNAR
UWA
29%
GAMPAHA
30%
GALLE
9%
211,288
HAMBANTO
TA
12%
63
RECOVERY OF LAWFUL POSSESSION OF LANDS WITH
ASSETS OF THE SAMURDHI AUTHORITY
DISTRICT
EXPENDITURE
RS
1
COLOMBO
13,855
2
KALUTARA
10,000
3
KANDY
4
KURUNEGALA
5
GAMPAHA
6
MATALE
7
HAMBANTOTA
33,142
8
RATNAPURA
47,847
9
ANURADAPURA
10
GALLE
576,649
11
MONERAGALA
171,753
TOTAL
1,564,965
ANURADAP
MONERAG
URA
ALA
RATNAPUR GALLE
0%
4% 12%
A
1%
MATALE
2%
472,016
COLOMBO
KALUTARA
0%
0%
KANDY
34%
GAMPAHA
36%
1,657,183
100,980
HAMBANT
OTA
1%
KURUNEGA
LA
10%
2,240
4,650,630
CONSTRUCTION OF THE STORES COMPLEX
It is a well known fact that that the Head Office of the Samurdhi Authority is spread
over the fourth floor of Sethsiri Paya office complex, and that its stores functions are
dependent on the warehousing facilities of outside institutions. In this behalf, a sum of
Rs. 89,000/= flows out from the funds of the Samurdhi Authority monthly. From an
annual perspective, this is a massive amount.
The Board of Directors headed by the Director General, taking into consideration the
fact that there was a bare land belonging to the Samurdhi Authority close to the Head
Office, and that it is not being properly utilized, bore the superb task of constructing a
stores building there, thereby retaining in the institution the lease annuity of Rs.
1,068,000/= paid to an outside institution. This job was entrusted to the Human
Resources Division, and within a short period of around a month, with relentless
perseverance and dedication, a stores complex 100 feet by 20 feet has been
constructed and by now handed over to the Finance Division. Construction of this
building was done by the Central Engineering Consultancy Bureau, and a sum of Rs
2, 178,376/= spent in that behalf.
64
10.0 MAHA SANGAM DIVISION
The function of the Maha Sangam Division is to give proper guidance to the
Maha Sangams, which had been established to give leadership to community
organizations situated regionally, as well as to implement the Samurdhi
programme to empower low income earners at regional level in a more
productive and efficient manner.
To perform the above functions, the Maha Sangam Division while providing creative
leadership to community organizational structures organized in the field including small
groups and rural societies, acts to strengthen this structure and the related organizational
structure, and operates to achieve the following common objectivs of the community.
I.
Strengthening local community organization structures including the
Samurdhi Task Forces, small groups, rural societies etc
Guiding the low income earners to broaden their livelihood development
II.
through their own group activities.
III.
Creating an appropriate institutional structure for the low income earners
to firmly maintain their micro financial requirements and project
processes.
Building an efficient information exchange system related to livelihood
development of low income earners at Maha Sangam level.
IV.
Functions identified during the current year to achieve the above objects:-
1.

Extending sustainable livelihood development at Maha Sangam level.

Building up the Maha Sangam structures in a strong and meaningful
manner.

Strengthening the rural organizational structure.

Creating an effective evaluation and monitoring process.

Development and modernization of training centers.
STRENGTHENING
THE COMMUNITY ORGANIZATIONAL STRUCTURE
INCLUDING SAMURDHI SMALL GROUPS AND RURAL SOCIETIES
The main objective of this is to strengthen community organizations, identify inactive
and under active village societies and empowering them through the participatory
development approach. Annual conventions of Maha Sangams, administrative boards,
regularization of the holding of annual general meetings of village societies related to
the community, skills development of community leaders, spiritual welfare programmes
based on joint activities of beneficiaries and special programmes to alleviate poverty
have been held at national, district and regional levels. Through this, a foundation will
be laid down to organize the community and to develop unity.
Shown below are the efforts made to fulfil these functions during the current year.
Accordingly, data relating to community organizations contributing to empowerment
are as follows:
65
District
Colombo
Gampaha
Kalutara
Galle
Matara
Hambanthota
Kandy
Matale
Nuwara Eliya
Kurunegala
Puttalama
Anuradhapura
Polonnaruwa
Badulla
Monaragala
Rathnapura
Kegalla
Ampara
Trincomalee
Batticaloa
Vavniya
Jaffna
Maha Sangam
executive
committeess
Administrative
boards of Maha
Sangams
Village
societies
Small
groups
Allocations
spent
13
13
14
19
16
12
20
11
5
30
16
23
7
15
11
17
11
20
11
14
5
15
43
87
57
54
43
90
40
35
121
48
52
23
45
25
64
27
41
13
-
807
1871
908
746
1378
342
1489
377
672
2866
1007
508
310
609
748
925
541
1805
550
9872
25338
11305
7938
12841
3793
18177
4031
8899
28866
12091
5277
2342
6950
8394
9235
5411
15340
5277
65000/108584/70000/95000/80000/149375/32065/55000/25000/150000/80000/150000/35000/75000/55000/179325/55000/100000/55000/70000/-
The constitution of village societies have been amended to prepare the necessary
foundation for strengthening villages societies and to activate these in a meaningful
manner, and submitted to the Board of Directors for approval.
2.
SAMURDHI
ENTREPRENEURSHIP
GENERATION PROGRAMME
DEVELOPMENT
AND
EMPLOYMENT
This is a programme implemented to identify Samurdhi entrepreneurs at divisional
secretariat
level and district level and to organize exhibitions in training and marketing activities
necessary for them. Accordingly, trade exhibitions called “Samurdhi Viskam Udanaya” are
being held at national and district level and an association of entrepreneurs called the
Samurdhi Entrepreneurs Association has been established.
Also, under this various employment opportunities are made available to Samurdhi
beneficiaries in liaison with state institutions, NGOs and private establishments.
Accordingly, under the “Soubagya” self employment project, (a joint venture between the
Samurdhi Authority of Sri Lanka and Unilevers) which is functioning at national level,
beneficiaries have been found employment.
1.
2.
ESTABLISHMENT
Soubagya Self Employment Project
Sri Lanka Job Bank
NO FOUND EMPLOYMENT
2150
300
66
PROGRESS OF PROGRAMME
DISRICT
ENTREPRENEURS IDENTIFIED
SOUBAGYA EMPLOYMENT PROJECT
80
350
75
135
120
80
98
25
110
200
175
40
75
150
50
85
145
85
60
75
2213
125
325
125
110
90
105
205
50
85
320
65
150
45
65
110
25
15
25
100
35
2175
1. COLOMBO
2. GAMPAHA
3. KALUTARA
4. GALLE
5. MATARA
6. HAMBANTOTA
7. KANDY
8. MATALE
9. NUWARA ELIYA
10. KURUNEGALA
11. PUTTALAM
12. ANURADHAPURA
13POLONNARUWA
14. BADULLA
15. MONERAGALA
16. RATNAPURA
17. KEGALLE
18. AMPARA
19. TRINCOMALEE
20. BATTICALOA
21. VAVUNIYA
22 JAFFNA
TOTAL
PROGRAMME NAMED AS ONE VILLAGE FOR ONE PRODUCT
Centered in the Kandy District, the One Village For One Product Programme was
implemented in liaison with the Japanese Cooperation Voluntary Programme.Under
this, patronage had been extended to diversify their products and to find markets, and
43 beneficiaries involved with leather centered, brass ware centered and food
processessing centered industries have been empowered
3. PROGRESS REVIEW AND MONITORING OF MAHA SANGAMS
Progress review and evaluation programmes at national and district levels were done
to see whether the functions assigned annually to Maha Sangams had been carried out
in a creative manner by the Maha Sangam leadership and to inquire into the progress
of regional activities.
Accordingly, programmes were implemented at national and district levels as shown
below:
NO
PROGRAMMES
OF
NO
PARTICIPANTS
OF
EXPENDITURE
NATIONAL LEVL
4
325
0.686
DISTRICT LEVEL
16
832
0.478
TOTAL
20
1157
1.168
67
4.BUILDING UP A STRONG AND MEANINGFUL MAHA SANGAM STRUCTURE
The number of Maha Sangams operating island wide, including the new Maha
Sangams established in the years 2008 and 2009, is 310. It was initially planned to
provide these with the equipment necessary to fulfil their basic requirements during
the current year. In addition to supplying 109 safes to Maha Sangams, measures were
taken to supply these with their computer requirements. In addition to direct Treasury
allocations, necessary action was taken to obtain 50% of the funds of the various
Maha Sangams and to utilize the Maha Sangam funds in full to purchase technical
equipment.
Digital camera
Fax machines
Eqpmt for chairman
Photo copying
machines
Telephones
13
08
08
08
08
08
02
02
12
13
13
13
13
10
13
02
06
02
09
14
09
09
09
06
08
02
18
01
02
11
18
11
11
09
10
08
02
MATARA
14
03
02
07
16
06
07
05
05
07
02
06
HAMBANTOTA
06
-
03
08
12
08
08
07
04
07
03
07
KANDY
13
03
03
13
20
13
13
12
10
13
03
08
MATALE
09
02
02
10
11
10
10
10
07
09
02
09
NUWARA ELIYA
06
-
02
05
05
05
05
05
05
03
01
10
KURUNEGALA
30
09
04
26
30
26
26
25
24
21
03
11
PUTTALAM
08
02
03
07
16
08
08
08
07
08
02
12
ANURADHAPURA
23
02
02
08
23
07
08
09
06
08
02
13
POLONNARUWA
09
01
02
06
07
06
06
06
05
05
01
14
BADULLA
12
01
02
08
15
09
11
09
07
07
02
15
MONERAGALA
09
-
-
03
10
03
05
03
04
03
01
16
RATNAPURA
17
-
02
10
17
10
10
09
10
10
01
17
KEGALLE
12
07
02
09
11
09
09
09
08
09
02
18
AMPARA
03
-
02
03
13
03
03
03
03
03
02
19
TRINCOMALEE
06
01
02
01
08
01
01
01
-
-
02
20
BATTICALOA
04
-
-
-
-
-
-
-
-
-
-
21
VAVUNIYA
-
-
-
-
-
-
-
-
-
-
-
22
JAFFNA
-
-
-
-
-
-
-
-
-
-
-
39
41
163
272
165
150
37
COLOMBO
12
-
02
GAMPAHA
13
01
03
KALUTARA
13
04
GALLE
05
ial no.
01
District
TOTAL
150
68
Furniture
Safes
07
Email
02
Computers
Multi media
Duplicating machines
Accordingly, shown below are details of computers, safes and essential equipment
supplied to each district as at the end of the year 2010
5.
SAMURDHI TRAINING CENTERS AT NILLAMBA AND SAMANALAWEWA
During the current year, following measures had been taken to develop the
training center at Nillamba, situated in a land 21 acres in extent : establishment
of a training center relevant to the Samurdhi campaign, extension of land related
cultivation activities and the establishment of a model farm for Samurdhi
programmes.
OVERALL PROGRESS OF MAHA SANGAMS
PROGRAMME
TARGETTED
NOS
ALLOCATED
AMOUNT
PROGRESS
EXP
RS MN
1. EMPOWERING THE NETWORK OF
365
3
337
1.7
25
5
21
7.337
250
4.5
41
8.30
0.5
2
0.037
4
17
15
11.42
20
25
1
1
14
20
0.328
1.164
COMMUNITY ORGANIZATIONS
2.
SAMURDHI
ENTERPRENEURSHIP
DEVELOPMENT
AND
EMPLOYMENT
GENERATION PROGRAMME
3. ESTABLISHMENT OF A STRONG AND
MEANINGFUL
MAHA
SANGAM
STRUCTURE
4.JAPANESE
INTERNATIONAL
VOLUNTARY PROGRAMME
5. DEVELOPMENT OF THE NILLAMBA
AND
SAMANALAWEWA
TRAINING
CENTERS
6. BANK PROMOTION PROGRAMME
7.
IMPLEMENTATION
OF
THE
MONITORING
AND
EVALUATION
PROCESS OF MAHA SANGAMS
TOTAL
32
30.286
OVERALL PROGRESS OF MAHA SANGAMS
35
30
Expenditure Rs Mn
MnMnMnයදම රු.මි.
25
20
17
15
11.42
10
5
5
8.3
7.337
3
4.5
1.7
0.5
1 0.328
0.037
1
0
1
2
3
4
Allocation
69
5
6
7
1.164
11.0 SOCIAL DEVELOPMENT DIVISION
Social deveopment means the development of all sectors of society. The
main theme is the creation of a family environment in the entire society,
rich in spiritual development.
BACKGROUND



Taking action to highlight the social values of all marginalized segments of
society.
Identifying and applying solutions to the underlying social factors which give
rise to poverty.
Implementing programmes enhancing the social and cultural values of low
income earners.
CURRENT FUNCTION
In the year 2010, a Treasury allocation of 436.0 milllion rupees was given to the
Social Development Division to achieve the above objectives.
Utilizing this money, the Social Development Division is vested with the
implementation island wide of spiritual and social development programmes out
of the programmes anticipated to be implemented by the Samurdhi Authority of
Sri Lanka concurrent to the Gama Neguma programme for the year 2010.
The Social Development Programme has three main components:01. Spiritual development and social development
02. Diriya Piyasa Housing programme.(Low income
Ranaviru/disabled)
03. Model Villages Programme
01.
SPIRITUAL DEVELOPMENT AND SOCIAL DEVELOPMENT
1.1
Spiritual development







earners/
Mustering the community around places of religious worship.
Implementation of programmes for the strengthening of daham pasels.
Religious and cultural activities, shramadana, creation of medicinal
herb gardens, encouraging adaptation to indigenousness.
Implementation of attitudinal development and aesthetic programmes
at daham pasel and school levels.
Proper use of public property and “Safeguarding things which belong
to us” programmes.
Spiritual development and moral upliftment programmes - 99826
Programmes for the improvement of places of religious worship- 55
*Total amount spent for the above – Rs Mn 10.0
70
1.2 ANTI LIQUOR AND ANTI SMOKING PROGRAMME (MATHATA THITHA),
CONSERVATION OF CHILDREN AND PREVENTION OF SUICIDES

Drug abuse prevention programme
Island wide implementation, with stress on the 3060 villages relevant to Gama
Neguma, of the Anti Liquor Programme activated during the past years, under
the title Mathata Thitha, in accordance with the Mahinda Chinthana
programme of His Excellency the President in collaboration with other state
agencies through a common approach.

The basic objective is the creation of a village resplendent with moral
values, by educating about the socio economic dangers of the use of
drugs and tobacco, which has become a major obstacle to the economic
development of low income earners.
1.2.1
Current situation about drug use, supply, demand and attitudes
(collection and analysis of information)
 A format to collect information
 Collection of available data
 A survey regaring other necessary information
1.2.2
Taking measures encouraging children and youth groups towards
drug abuse activities and to prevent them being lured towards it.


1.2.3
Activities to prevent unjust behavior of drug users in the
community


1.2.4
Creation of groups of parents in every village.
Programme to liberate users of alcohol, cigarattes and other drugs


1.2.4
Briefing children and women
Grouping of children, women, elders and youth in that behalf
and getting activated.
.
Creation of groups of parents to counter publicity and other
related pressures which operate targeting children.

1.2.5
A task force comprising all youth in the village.
Standing display of posters at designated places.
Programmes for community based treatment counseling
Referrals to treatment centers or locations.
Impacting through the community the successful compliance of the
National Authority on Tobacco and Alcohol Act.
 M aking the community aware of the Act.
 Reporting instances of violation of provisions of the act to the
National Authority on Tobacco and Alcohol and to District
Tobacco Prevention Units.
71
1.2.5
Activities to create shops which discourage use and publicity about
tobacco
 Having discussions with shop keepers regarding the provisions of the act.
 Briefing trader associations relevant to the wasama to have an impact on
the company.
 A sum of Rs Mn 3.75 has been spent to implement the above programme.
 Results are as follows:
YEAR
No of people saved from the drug habit
No of shops where selling cigarettes has been
stopped
No of people who have stopped smoking
An anti smoking walk in the Naula Secretarial Divion in the Matale District
1.3
1.3.1
1.3.2
1.3.3
1.3.4
1.3.5
1.3.6
1.3.7
1.3.8
2009
14895
6750
2010
24154
7664
16750
38395
22352
54170
RELATIVE
INCREASE
9259
914
5602
45755
A liquor free family from the Four Gravets
Secretarial Division in the Galle District
Increasing social and cultural values (youth groups/childrens societies/voluntary
groups)
Encouraging the adaptation of a virtuous and simple life style.
 Customs, traditions, manners, food habits, wearing apparel, weddings,
funerals etc
Special programmes for pregnant women
 Guidance, spiritual programmes, lullabies, tree planting etc.
Encouragement and guidance towards obtaining physical and mental well being.
 Dhamma discussions, group discussions
Advicing the community about minimizing suicides.
Correct nutrition, being well and developing physical fitness
For youth between 19 – 30
 Enjoyment, leadership, sports, encouragement to lead a simple life,
creation of pleasant thoughts, vocational guidance, preparing for a happy
marriage.
Promotion of simple ways of enjoyment
Searching for the necessary trainees from the community for programmes
such as “Nenasela”, “Vidata” etc.
 No of programmes implemented – 26700
 Total expenditure incurred
- 0.4
72
1.4 Promotion of joy and love within the family unit
1.4.1 Minimizing domestic violence
1.4.2 Promotion of proper communications within the family and obtaining a
concensus in decision making
1.4.3 Creating a fruitful domestic economy management.
1.4.4 Promotion of simple pleasurable activities within the family.
1.4.5 Correct understanding about gender within the family
1.4.6 Encouraging elders to take part in the development of harmony among children,
youth and elders, leading to the ensuring of security, nutrition and freedom
within the family unit itself (in collaboration with the Elders Secretariat).


No of programmes implemented – 14227
Total expenditure incurred
- 0.63
1.5
Implementing within the village a regular programme regarding the safety
of children
1.5.1
Establishing an active childrens society in every village and implementation of
programmes to improve such childrens societies. (as per hand book)
Organizing of aesthetic programmes, cultural competitions, quiz contests
relating to subject areas, recreational programmes, vocational guidance and
getting children mustered round cultural centers.
Training children to save and to be thrifty (Sisuraka/Kekelu Ginum)
Assurance of childrens’ rights of every child.
1.5.2
1.5.3
1.5.4
The objective of this programme is to brighten the world of children who are due to
take over the future, and to strengthen the current generation of children for the
future by developing them physically, mentally and spiritually through the
enhancement of their skills. At present, around 14000 active childrens societies
have been formed.
In order to enhance the cultural and literal skills of the children of these societies,
and as well as to high light such skills at the national level, a competition was held
at divisional, district and national level. The national level competitions were
conducted at the Embilipitiya Village Leaders Training Center on the 24th and 25th
of August, 2010. In this regard, all district island wide Sinhala medium childrens
club members took part in 09 events, under 03 age groups. Also, for Tamil
medium children, a similar competition was held at the Community Educational
Institute at Talahena on the 19th September.


No of programmes implemented –12363
Total expenditure incurred
- 9.0
1.4 PROGRAMMES
BEING
INTERNATIONAL DAYS
IMPLEMENTED
TO
CORRESPOND
WITH
1.4.1 INTERNATIONAL WOMENS DAY – 08 MARCH
The contribution of the woman becomes especially important, as a person giving
birth to a future generation, bestowed with the honorific called motherhood, and in
the development process of the Samurdhi programme, as a person working shoulder
to shoulder with others. I consider it fortunate in being able, at least to a certain
73
extent, through such attempts, to alleviate the psychological pressure of low income
earning women who had been marginalized.
Instead of only relying on subsidies, I consider it a more productive attempt to assist
them to mobilize and organize them through the development of their strength and
skills, educating them, and granting the anticipated credit facilities, and providing a
life line to them.
It is the woman who forms the strong iron link which connects the family with the
external world. In our march towards a prosperous land where poverty is at a
minimum, our foremost confidence is in female power. Several felicitation
ceremonies at district and divisional level were held for such women, and several
programmes to educate and encourage such women have been implemented.
The following are the programmes conducted for such women at regional level:o
o
o
o
o
Attitude Development Programmes.
Maternity programmes.
Paying homage to parents programmes
House keeping and family development programmes.
Evaluation and felicitation programme for courageous women who
have come up through the Samurdhi programme.

Twenty programmes at district level, 315 programmes at divisional
level and 1040 programmes at zonal level have been held in this
behalf.

Three programmes at national level were held at Dompe and
Minuwangoda in the Gampaha District and in the Kandy District. The
National Womens Day
celebrations were held at the Gannoruwa Plant Genetic Center in the
Kandy District, and a Diriya Kantha Evaluation Programme for women of
all districts of the island was held there. Women with the highest deposits
in Diriya Matha accounts of Samurdhi banks, female chairmen of
Samurdhi societies and women who had succeeded through self
employment in the Samurdhi scheme were felicitated there.
1.4.2 INTERNATIONAL ANTI SMOKING DAY
Use of alcohol/drugs and smoking play a major role among the factors affecting
poverty. Therefore, based on the International Anti Smoking Day, on the 31st May
of every year, various programmes are being implemented at national, district and
divisional levels. In addition, an island wide flag day programme is also launched.
The income from the sale of such flags is credited to the social development fund
at divisional level. Such monies are utilized to implement divisional development
and various welfare programmes. Income received from the sale of flags to date is
shown below:YEAR
2007
2008
2009
2010
FLAG INCOME (RS. MN)
51.9
68.1
83.2
79.3
74
1.4.3 INTERNATIONAL LITERACY DAY
Under this programme, action has been taken to admit children between 5 – 10 years
of age who should be in school, but are not schooling and illiterate, to formal schools
and literacy classes, and to refer them to other vocations.
Number admitted to schools - 1015
Number of scholarships
- 5033
1.4.4 INTERNATIONAL ELDERS AND CHILDRENS DAY
Commemorating the elders day, under the theme “Elders are our eternal wealth”,
programmes for paying tribute to elders were organized spreading all secretarial
divisions. At these functions, spiritual development programmes (dhamma sermons,
meditation, bodhi pooja, pirith ceremonies etc.) were conducted. Also an adult
awareness program through special discourses, aesthetic programmes to improve
their taste, exchange programmes between elders and children and paying homage to
parents programmes were implemented.

In this connection, 317 programmes at divisional level and ten at
national level have been conducted.
PROGRAMME
Home
management
and
development
Childrens society activities
.
family
NO OF
PROGRAMMES
NO OF PARTIPANTS
30528
212327
20247
214513
1.4.5 INTERNATIONAL POVERTY ALLEVIATION DAY
An investigative insight of the various aspects of poor people’s lives had been done
in the manner mentioned below.
Programmes for the cleaning the home plots, repair of houses, raising small home
plots, and shramadana campaigns were conducted, and home management and
family development programmes were implemented at divisional level.
 For programs commemorating the above days, a sum of Rs Mn 8.56 had
been spent.
02.
DIRIYA PIYASA HOUSING PROGRAMME
The Diriya Piyasa Housing Programme was implemented this time in three
phases.
2.1 DIRIYA PIYASA HOUSING PROGRAMME
The Diriya Piyasa Housing Programme is being implemented as a very appealing
programme under the Samurdhi campaign, and during this year too, 3110 such houses
had been completed. This time, a sum of Rs. 100,000/= was paid for each house. In
this connection, priority was given to families who were looking after their parents,
families with school going girls , and families with disabled parents and brothers.
Allottees of Diriya Piyasa houses constructed at secretarial division level had been
briefed about
laying home garden plots, home management and family
development, and had been introduced to appropriate livelihood development
programmes, thereby making it possible for them to be reinforced.The finished
value of one such house is Rs.400,000/=.
75


No of houses constructed – 3110
Amount – Rs. Mn 311.0
The old house where Mr.G.D.Karunaratne of Udumulla wasama lived
earlier.
The house where Mr.G.D.Karunaratne of Udumulla wasama lives
now.
2.2 RANAVIRU HOUSING PROGRAMME
With the launching of the fourth Wanni operation, and the regions and the people
under terrorist domain being liberated, and with the commencement of the
evaluation of the brave soldiers who took part and their welfare measures, for 1040
families of soldiers killed in action, a house per zone had been constructed, with the
Samurdhi Authority contributing Rs.75,000/= and the Social Development
Foundation Rs.75,000/= per house.


Amount
- Rs Mn 29.55
3 MODEL VILLAGES PROGRAMMES
The Samurdhi Authority implemented a programme for the establishment of
selected model villages in all the districts. Infra structure development necessary for
these villages, livelihood development programmes and spiritual development
programmes were carried out. Accordingly, houses were constructed and roofing
materials etc were supplied to such selected villages. In addition, the Social
Development Division implemented programmes for the attitudinal development of
the community, aesthetic development and anti drug campaigns in those villages.


Amount
- Rs Mn 56.39
04. OTHER WELFARE PROGRAMMES AND SPECIAL PROGRAMMES
4.1 WELFARE OF THE DISABLED.
Various programmes were implemented at divisional and district level under the
Disabled Soldiers Welfare Programme in respect of war heroes disabled in
operations while fighting for the country, as well as under welfare programmes for
the generally disabled.
76
4.2 WELFARE OF PRISONER FAMILIES
Various programmes have been implemented to enable such members to be treated as
recognized members of society to minimize their social problems. They have been
inducted into the credit programmes and production activities through Samurdhi banks.
4.3 CHILD ABUSE PREVENTION PROGRAMMES
Identification of cases of child abuse.
 Employment as domestic servants.
 Being subject to sexual abuse.
 Maintenance of families of school going children.
 Domestic violence.
Identifying above cases, and holding of awareness programmes for adults of such
families, implementing programmes to get such children admitted to schools and
award of scholarships etc.
7512 awareness programmes have been conducted at divisional level.
4.4 PROGRAMME FOR THE PREVENTION OF SUICIDES
This programme is being implemented at divisional level concurrent with other
programmes through the island wide Social Development Assistants. The following
action has been taken at divisional level to minimize suicides.
 Discovering the underlying background factors leading to suicides.
 Holding awareness and guidance programmes for members of such
families.
 Formulation of an appropriate programme in collaboration with
government and non government agencies.
 Mustering of children round childrens clubs.
 Preventing this situation through religious, cultural and economic sectors.
5 SPECIAL PROGRAMMES
1.TRAINING
This programme was implemented in conjunction with progress review programmes.
Under this, training was conducted in relation to the main subject areas of the Social
Development Programme, Prevention of Drug Abuse, Promotion of Joy and
Affection within the Family Unit, Prevention of Child Abuse, Prevention of Suicides,
Childrens Club Cultural Programme, correct nutrition and the Diriya Piyasa Housing
Programme. This had been conducted for Zonal Managers, Headquaraters Managers
and Managing Directors in ten districts. This training programme was implemented
for Samurdhi Development Officers of several Secretarial Divisions of two districts
too.
 PROGRESS REVIEW AT DISTRICT LEVEL
This is held bimonthly under the chairmanship of the District Secretary/Asst.
Samurdhi Commissioner with the participation of District Social Development
subject manager, Headquarters manager, managing director, zonal manager and the
social development assistant. Provision for this is made by the Social Development
Division. In the year 2010, 132 programmes have been launched.
A sum of Rs. Mn. 5.6 had been spent for the above programmes.
77
12.0
MEDIA DIVISION
The Media Division creates a communication network thereby supporting the
efforts of low income earners to alleviate poverty, and through it giving publicity
among the people regarding the developmental values of the Samurdhi
programme, building a new developmental literature centered round the Samurdhi
programme, making use of the mutual experiences of low income earners,
employees of governmentt and non governmental organizations, professionals
and the political leadership to progressively take forward the social development
procedure, contributing to the creation of an appropriate environment for same,
and providing wide publicity regarding making use of the Samurdhi beneficiaries
as a motive force in development
PROGRAMMES IMPLEMENTED:-
ELECTRONIC MEDIA

Weekly Rupavahini programs (Dawn of a new era) examining the progress of the
Samurdhi campaign – 49

Special Rupavahini advertisements examining the progress of the Samurdhi
campaign.

30 Rupavahini advertisements four times a day x 365 = 1460 telecasts

5 Rupavahini advertisements twice a day x 365 = 730 telecasts

Special radio programmes (Samurdhi Pilisandara) examining the progress of the
Samurdhi campaign – 51
Printed media
Media coverage
-
Newspaper advertisements
Field media coverage
78
-
23
4
13.0 MONITORING AND EVALUATION DIVISION
The functions of the Monitoring and Evaluation Divions are basically two fold.
The basic task entrusted to this division is physically and financially evaluating
the annual function in terms of the agreed action plan under the Samurdhi
programme, and the evaluation of its end result through investigation. The other
main expected objective is to review progress quarterly and half yearly, to
express opinions about matters arising out of such investigations, to identify
problems and find the relevant solutions. Accordingly, proposing amendments
necessary to the annual plan also takes place under this.
13.1 Formulation of the Annual Plan and the Five Year Integrated Plan
The government has accepted in principle that the annual plan should be formulated
under the current set up and state policy, and that an integrated five year plan for the
ensuing five years should be prepared accordingly. In accordance with the series of
circular instructions on good governance, the formulation of the annual action plan as
well as the integrated plan attendant to it should be updated. This task is also entrusted
to the Monitoring and Evaluation Division.
13.2 Progress Review Programme
The Samurdhi Programme is a programme having economic, social and cultural ties
with the Samurdhi beneficiaries and low income earners. Therefore, under this
various projects and activities spreading over a broad range are introduced to
beneficiaries and action taken to implement them at field level in a more productive
manner. During the implementation of such programmes, these have to be constantly
adapted to the annual Samurdhi programme, (action plan) and, progress has to be
reviewed constantly. Since the inception of the Samurdhi programme, necessary
action was constantly taken to implement properly and vigorously the progress review
methodology. The process of progress review is implemented in three main phases:-
(i) Progress review at Divisional level.
(ii) Progress review at Disrict level
(iii) Progress review at National level
From this progress review methodology what is expected is to make it easy for
problems cropping up at various levels of progress review to be identified and
resolved, and to make it easier to obtain the relevant data required for future planning
through the review of the progress of programmes implemented. A special feature of
this is that constant discussions and follow up evaluation with group responsibility
take place.
79
13.2.1 PROGRESS REVIEW AT DIVISIONAL LEVEL
Though not directly receiving allocations under the Monitoring and Evaluation
Division, there are several progress review meetings organized at the divisional
secretariat area level.

WEEKLY MEETINGS – UNDER THE CHAIRMANSHIP OF THE DIV SECY
This is held every Wednesday, under the chairmanship of the Divisional
Secretary. All managers in the Divisional Secretariat area should attend this,
and development activities in the field, Samurdhi beneficiaries and related
matters are discussed here.

ZONAL MEETINGS – UNDER THE CHAIRMANSHIP OF ZONAL MANAGERS.
Among progress review meetings at the divisional level, the zonal meetings
occupy an important place. Presently active 1040 bank unions hold progress
review meetings every Thursday under the chairmanship of the Zonal
Managers. All Samurdhi Development Officers attached to the grama seva
divisions of the zone attend this meeting. Preliminary discussions regarding
credit facilities under the micro finance system including savings take place
here.

DIVISIONAL MEETINGS - UNDER THE CHAIRMANSHIP OF THE DIV SECY
This is held monthly under the chairmanship of the Divisional Secretary and
all Samurdhi Development Officers working in the division attend this
meeting. Problems common to the division are discussed at length here. This
meeting is also made use of to discuss progress, identifying staff problems and
to discuss problems in the field and the attendant solutions.
`13.2.2 PROGRESS REVIEW AT DISTRICT LEVEL

PROGRESS REVIEW MEETING OF HEAD QUARTERS MANAGERS – UNDER THE CHAIRMANSHIP
OF THE DISTRICT SECRETARY.
The most important progress review meeting held at the district level is the
monthly progress review meeting of the head quarters managers. This is held
under the chairmanship of the District Secretary. Headquarters managers,
Managing Directors and Project Managers attached to the Divisional
Secretariats attend this meeting. As at 31/12/2010, 264 monthly progress
review meetings of head quarters managers have been held.

DISTRICT PROGRESS REVIEW MEETINGS
The Directors in charge of the subject in the Samurdhi Authority of Sri Lanka
too attend the district progress review meeting, and all Samurdhi managers in
the district attend this meeting.
In the year 2010, fifteen such district progress review meetings had been held.
80
13.2.3 PROGRESS REVIEW AT NATIONAL LEVEL

DISTRICT SAMURDHI DEPUTY DIRECTORS MEETING – UNDER THE CHAIRMANSHIP OF THE
DIRECTOR GENERAL.
At the monthly meeting of District Samurdhi Deputy Directors, progress of
Samurdhi programmes at national level are discussed, policy decisions taken, and
instructions and guidance necessary for the implementation of programmes are
issued. During the current year, six review meetings had been held.
13.3 MAINTAINING A DATA BANK
A data bank containing information about all the programmes implemented under
the Samudhi programme is maintained. Compiling of computer programs,
steering, system administration and data analysis are also done. In addition, the
under mentioned programmes had also been implemented:I. Establishing a telephone system for exchanging information
promptly among the Samurdhi Authority of Sri Lanka, and its
affiliated institutes of the District Samurdhi Commissioners office,
Headquarters section of the Divisional Secretariat, Samurdhi maha
sanagamaya and Samurdhi banking unions.
II
Launching a programme called e Samurdhi for the purpose of
computerization of the activities of the Lanka in collaboration
with the Sri Lanka Information and Languages Technical Agency.
(ICTA).
Under this, through the e samurdhi programme, three computer
programmes are being designed. The Human Resources
Management will include all information about officers, the CRM
for the management of data relating to all beneficiaries and low
income earners and the PPM for the management of all projects.
These computer programmes are under way now, and from the
year 2011 making of data entries will take place.
III Compilation of the specifications of equipment purchased by the
Samurdhi Authority of Sri Lanka and Technical Committee
reports.
IV Maintenance and operation of Searcher computers, printers and
the internal network belonging to the institution.
13.4 SPECIAL PROGRAMMES
There are several programmes formulated with the objective of enhancing and
operating the Samurdhi programme. These programmes covering common objectives,
are launched with the aim of rural development, consequent to a broad study in
keeping with the social requirements. Such special programmes maybe defined as
ones planned by the head office, district offices and divisional secretariats according
to requirements. In the year 2010, twelve such programmes have been implemented.
81
THE GEMIDIRIYA PROGRAMME IN COLLABORATION WITH THE SAMURDHI AUTHORITY OF SRI LANKA
For stage one of the Gemidiriya Community Development and Livelihood
Enhancement Project implemented in collaboration with the Samurdhi Authority of
Sri Lanka, 50 grama seva wasams representing 05 districts were chosen. Accordingly,
two special awareness programmes were held about the Gemidiriya community
control methodology for zonal managers from the selected wasams in the Ratnapura,
Badulla, Moneragala, Hambantota and Polonnaruwa districts.
13.5. DIVISION WISE FINANCIAL PROGRESS
During the current year, a sum of 5.2 million rupees had been allocated to the
Monitoring and Evaluation Division for its overall programme. By the end of the year
2010, a sum of 2010, 3.28 million rupees had been spent under 4 main votes at district
and divisional level. Accordingly, the financial progress is 63%, and the relevant
details are shown
below:Institution
Bearing
Expenditure
VOTE
TOTAL
Progress
Review
Allocatio
n Rs Mn
District
offices
Special
Expenditure
Rs Mn
Allocation
Rs Mn
2.27
9
3.877
3.877
2.54
8
Alloc
ation
Rs
Mn
Others
Expend
iture
Rs Mn
0.003
0.900
0.212
Allocatio
n
Rs Mn
Expen
diture
Rs Mn
0.09
0.1
6
72
0.900
9
TOTAL
Expenditure
Rs Mn
0.209
0.26
Head
Office
Training
0.423
0.25
9
0.423
0.1
72
Expenditure
Rs Mn
2.756
5.2
-
3
0.34
Allocation
Rs Mn
0.525
5.2
3.281
13.6 SAMURDHI HOUSING DEVELOPMENT LOTTERY FUND
With the objective of making every Samurdhi beneficiary family the owner of a
permanent house, under the provisions of section 20 (1 and 2) of the Samurdhi
Authority Act no. 30 of 1995, the Samurdhi Housing Lottery Trust Fund was
inaugurated and is operative from August 2001. For this, all Samurdhi
beneficiaries have to make a monthly contribution of Rs.10/-. The approximate
monthly contribution is 16 million rupees.
The fund is administered by a board of trustees comprising seven members
appointed ex-officio through a cabinet memorandum.
82
The Secretary to the Ministry as its chairman, Director General of Samurdhi , a
representative from the Ministry of Finance, another officer from the Ministry of
Samurdhi,
President of the Samurdhi Managers Union and the General Secretary of the
Samurdhi Development Officers Union are the rest of the members.
The computer programme relevant to the lottery is drawn up, after entering
particulars of all beneficiaries who are eligible for Samurdhi subsidies during the
period stipulated for the draw of the lottery. Through this, each Samurdhi
beneficiary is given a lottery number, which is used for the draw.
When reviewing the past in retrospect, a minimum of around 100 beneficiaries
are chosen monthly and, the total prizes awarded to beneficiaries come to around
15.00 million rupees at the rate Rs.150,000/- per prize.
13.6.1
PROGRESS OF THE PRIZE WINNERS AND CASH AWARDS FOR
THE PERIOD MAY TO DECR 2007
TABLE NO. 36
Serial
Number
1
PROGRESS
No of
Value
Prize
Rs Mn
winners
MAY-DECR 2007
800
120.00
721
108.15
SOURCE : FINAL ACCOUNTS REPORT OF THE LOTTERY FUND
PERIOD
No of
prizes
Prize
money
13.6.2 DETAILS OF WINNERS DISTRICT WISE (12 (I) th Draw)
- MAY-DECR 2007
District
No of
Monthly
prizes
No of
Beneficiaries
selected
No of prizes
suspended
1
Colombo
4
32
7
25
3.75
2
Gampaha
8
64
9
55
8.25
3
Kalutara
4
32
2
30
4.50
4
Galle
5
40
40
6.00
5
Matara
5
40
6
Hambantota
4
32
7
Kandy
7
56
3
53
2
7.65
8
Matale
3
24
3
21
1
3.00
9
Nuwara Eliya
3
24
2
22
2
3.00
10
Ratnapura
7
56
5
51
7.65
11
Kegalle
4
32
5
27
4.05
12
Badulla
4
32
5
27
4.05
13
Monaragala
3
24
2
22
3.30
5
No of winners who
were awarded cash
prizes
No of
days
further
given
Serial
No.
35
1
32
83
Prize
money
released
Rs Mn
5.10
4.80
14
Kurunegala
10
80
11
69
10.35
15
Puttalam
4
32
3
29
4.35
16
Anuradhapura
5
40
3
37
5.55
17
Polonnaruwa
2
16
1
15
2.25
18
Ampara
5
40
3
37
19
Trincomalee
3
24
4
20
3.00
20
Batticaloa
6
48
3
45
6.75
21
Vavuniya
1
8
2
6
0.90
22
Jaffna
3
24
1
23
2
3.15
100
800
79
721
9
106.80
TOTAL
1
5.40
SOURCE: DATA ENTRY OF THE LOTTERY FUND
NOTE:
01. Out of prize winners in the 22 districts, winnings in respect of 79 prize
winners had to be annulled. Accordingly, the numbers eligible are only
721, and although a sum of 120 million rupees was reserved for prize
winners, the entitlement is only for a sum of 108.15.
02. No draws had been held for the years 2009 and 2010.
84
14.0 BANKING FINANCE DIVISION
The “Credit Division” of the Samurdhi Authority, started in the year 1996 was
renamed the “Banking Finance” Division in the year 1998, as a result of
policy changes in keeping with the times. The Banking Finance Division deals
not only with micro finance matters, but also encourages the savings habit
among the Samurdhi beneficiaries.
INTRODUCTION:-
With the inauguration of the Samurdhi Authority of Sri Lanka in the year 1996, the
“Credit Division” was opened as another branch of it.
It was renamed the “Banking Finance” Division in the year 1998, as a result of policy
changes in keeping with the times.
In accordance with the Samurdhi Authority of Sri Lanka act no 30 of 1996, Samurdhi
banking unions were established in 1996 to implement the national Samurdhi
campaign, with the objective of promoting savings among the low income earners,
thereby enhancing the investment potential, to provide the capital (credit facilities)
required for the development of goods and services, to minimize informal loans and
through it to rescue them from the clutches of indebtedness, and to establish a
profitable institutional frame work.
01. Making the network of 1042 Samurdhi banking unions the foremost bank in
the micro financial sector.
02. Making low income earning Samurdhi bank customers thrifty men with
financial discipline.
03. Introduction of the new technological banking system to the Samurdhi
banking unions.
04. Minimizing poverty among low income earners by conforming to the above
aims.
The Banking Finance Division became the main steering office of the Samurdhi maha
sangam and Samurdhi banking unions established accordingly, and the steering of
those institutions to achieve the following objectives became the responsibility and
function of this division.
1. Issue of operating instructions, circular instructions in regard to all operational
matters including credit facilities, deposits and security of Samurdhi banking
unions and Samurdhi maha sangams, and updating same.
2. Providing refinancing credit facilities necessary to maintain business
operations of Samurdhi banking unions methodically.
3. Granting of loans to the Samurdhi staff.
4. Profitable investment of the funds of Samurdhi bank unions and maha
sangams.
5. Introduction of new technology and computerization.
6. Identifying problems, short comings and trends of banking unions.
7. Conducting of awarenes programmes and training programmes for the staff.
85
8. Making random visits to check the internal control of banking unions.
9. Maintaining protection (insurance) systems required for the proper operation
of the Samurdhi banking system.
10. Referring policy matters required for the operation of the Samurdhi banking
unions to the board of directors and implementation of decisions.
11. Transmission of information and data required about Samurdhi banking
unions to relevant agencies, and follow up of progress.
Accordingly, the functions of the Banking Finance Division are two fold:
01 Samurdhi Banking union programme
02 Activities in the Banking Finance Division.
1. SAMURDHI BANKING UNIONS PROGRAMME
Setting up of the banking unions had been implemented in seven stages, and by
31/12/2010, there were 1042 banking unions operating in all districts, other than in
Mullaitivu, Kilinochchi and Manaar.
From this perspective, the network of branches which started as Samurdhi banking
unions, which during a short span of time has become the largest micro financial
institutional structure spread island wide in the field of the local micro finance, and
the Samurdhi banking union system has been identified by the Asian Development
Bank as the world’s fourth largest micro financial structure.
The Samurdhi banking union system which has achieved a remarkable rating among
the giants in the field of micro finance, while conforming to the objectives of poverty
eradication has reached a special place in the collection of deposits, and has initiated
the new technological banking methodologies.
By the end of the year 2009, there were 790 banking unions which had reached
financial viability. By the end of the year 2010, the number of such banking unions
became 728 due to various financial problems.
1.1 MEMBERSHIP OF BANKING UNIONS AND CAPITAL PROGRESS – 31.12.2010
Samurdhi beneficiaries are eligible to be members of the Samurdhi banking union
on the purchase of a share of Rs.500/=, and become share holders of the bank.
Figure 1 Year
1999
2000
2001
2002
2003
2004
2005
Banking union membership progress - 31.12.2010
Female
737458
943142
1042158
1149226
1275273
1351769
1428848
Male
Total
507478
628094
663905
716833
777222
806470
824846
1244936
1571236
1706063
1866059
2052495
2158239
2253694
86
Growth
326300
134827
159996
186436
105744
95455
Growth
rate
26
9
9
10
5
4
2006
2007
2008
2009
2010
1516985
1575509
1641872
1691112
1830840
853604
872490
859900
896947
970693
2370589 116895
2447999
77410
2501772
53773
2588059
86287
2801533 213475
5
3
2
3
8
Figure one shows the expansion of the membership during twelve years. When
compared to the year 2009, the year 2010 also showed a relative expansion in banking
union membership and the growth rate was eight percent. Even when financial
institutions had to face economic situations due to various economic and social
problems, this implies the trust the customers placed in our Samurdhi banking unions.
Especially, the special loan scheme such as Viduli Athwela introduced through
Samurdhi banks during the latter half of the year 2010 had been contributory to this
situation.
Figure Two - Shares paid by members
Amount
Year
Growth
Rs Mn
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Growth
rate
587.175
985.157
1383.15
1679.79
1930.37
2206.62
2601.01
3096.44
3639.53
3989.90
4212.416
4790,470
397.982
397.997
296.64
250.572
276.249
394.395
495.426
543.096
350.365
222.516
578,054
67.8
40.4
21.4
14.9
14.3
17.9
19
17.5
9.63
5.58
13.72
Amount of share capital
5000
4500
4000
3500
3000
2500
2000
1500
1000
500
87
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
0
1999
Amount
Rs. Mn.
Figure 2 shows the expansion of the share capital during twelve years. During the
initial stage, although the progress of the share capital showed a rapid rise of 68%, the
increase ratio has declined sharply during the past few years. Though there was a rise
in the share capital during the current year relative to the previous year, the rate of
growth has declined relative to the previous year. However, when taking into
consideration the growth of the share capital during the current year, an upward trend
of the share capital rate is indicated. While analyzing this situation further, attention
must be paid to formulating future plans of the Banking Finance Division to
contribute to ensuring the viability of the banking unions.
The share capital which was 4212 million in the year 2009 has shown a growth up to
4790 million in the year 2010.
1.2 BANKING UNION DEPOSIT PROGRAMME
Figure three – Deposits (member, non-member, group, lama and diriya
matha)
Year
Numbers
Growth
Amount
Growth
Rs Mn
1999
1424652
768.957
2000
2645574
1220922
2033.452
1264.5
2001
3035233
389659
3111.161
1077.71
2002
3296569
261336
3857.1
745.939
2003
3680786
384217
4710.802
853.702
2004
3989539
308753
5751.814
1041.01
2005
4229575
240036
6824.879
1073.07
2006
4394498
164923
8131.658
1306.78
2007
4613504
219006
9875.63
1743.97
2008
5081229
467725
11356.79
1481.16
86625
13536.65
2179.86
2009
5167854
2010
5505853
337999
15906,770
2370,120
During the year 2010, 2370 million rupees had been deposited indicating further trust
in the banking union programme, and the special deposit development programme
implemented targeting especially banking unions has had an effect on this expansion.
When compared to other competitive micro finance institutions, achieving such a
growth should be appreciated.
1.2 SAMURDHI BANK UNION CREDIT PROGRAMME

Under the banking union credit scheme, entrepreneurship potential of low
income earners including Samurdhi beneficiaries is identified, and small credit
facilities are provided to build an environment necessary to escape poverty
through self sustenance.

Introduction and implementation of several special credit programmes to cater
to capital funds and urgent financial requirements of members.
88

Under this, for self employment and for income generating projects under the
Mihi Jaya loans programme, loans subject to a maximum of Rs.100,000/- are
released. Facilities are available to obtain loans from Rs.25000/= to
Rs.75000/= for funds required for fisheries and cultivation. Under the Kirula
development credit scheme implemented during the latter half of the year
2010, the credit limit of Rs.100,000/= hitherto followed was increased to a
limit of Rs.250,000/=.

The banking union was prepared to throw a life line to members to fulfil their
housing requirements, by giving loans subject to a maximum of Rs.30000/=,
to build a house, complete a partly finished house or for requirements like
house repairs. This credit limit too has been increased up to Rs. 50,000/=
during the year 2010.

Members have been provided relief through the consumer, distress and
Swashakthi loan schemes to obtain without difficulty loans for their financial
requirements in an emergency, without getting into the clutches of usurers.
Under the Viduli Ath Wela credit scheme started during the end of the year
2010, credit facilities are made available up to a maximum of Rs. 30,000/= to
Samurdhi beneficiary and low income earning members of banking unions.

While interest rates for these loans have been reduced from 0l.12.2009,
interest rates for Mihijaya loans have been reduced to 8 per cent and 12 per
cent for other loans.

During the year 2010, 438,934 members had been given loans totaling a sum
of Rs Mn 10,178.

The rate of recovery of loans in the year 2010 was 108.53 (installments due
ahead are also included). The bad debt rate is 6.34 per cent.
Figure four
Loans issued upto 31/12/2010 (Cumulative)
Year Numbers Amount
Rate of
(cumuli- Rs Mn
recovery
tive)
(incl forward
payments)
1999
209818
966.314
102%
2000
481475
2788.503
107%
2001
813334
5552.745
107%
2002
1016392
7448.076
104%
2003
1340126
10503.299
98%
2004
1697866
13977.807
104%
2005
2149135
20725.030
107.43%
2006
2527841
26035.088
106.26%
2007
2952840
32843.015
106.52%
2008
3450469
42757.373
103%
2009
3721662
48352.732
106.89%
2010
4160596
58531.608
108.53%
89
Figure five.
Loans issued in 2010
During Numb Amount
the
ers
Rs Mn
year
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
141344
271659
331859
203058
323734
357740
451269
378706
424999
497629
271193
438934
728.577
1822.189
2764.242
1895.331
3055.220
3474.508
6747.030
5310.058
6807.927
9914.358
5595.359
10178.876
60000
50000
Amount40000
30000
20000
10000
2009
2007
2005
2003
2001
1999
0
Year
Figure six
LOAN CLASSIFICATION 2010
TYPE OF LOAN
RS MN
SELF EMPLOYMENT
CULTIVATION
OTHER (MIHIJAYA, FISHERIES,
SWASAKTHI, DISTRESS)
CONSUMER
JANAPUBUDU
HOUSING
TOTAL
RATE
30967
6846
1708
53
12
3
2398
1255
4058
58532
4
21
7
100
HOUSING
7%
JANAPUBUDU
21%
CONSUMER
4%
OTHER
(MIHIJAYA,
FISHERIES,
SWASAKTHI,
DISTRESS)
3%
SELF
EMPLOYMENT
53%
CULTIVATION
12%
90
1.4
INVESTMENT OF SURPLUS FUNDS OF BANKING UNIONS (FIXED DEPOSITS
AND TREASURY BILLS)
With the objective of getting the maximum returns for the assets of banking
unions, funds found surplus after releasing loans for loan applicants have been
authorized to be invested in state banks only in accordance with Treasury
circular instructions, through maha sangams. Through this, it is envisaged to
strengthen the maha sangams also financially.
Figure seven
union funds
Year
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2009
2010
– Investment of surplus Samurdhi banking
Amount Rs
Growth Rate
Mn
583
1620
1038
178
3175
1555
96
5097
1922
61
5914
817
16
7828
1914
32
7417
-410
-5
9936
2519
34
13791
3855
39
18833
5042
37
24039
5206
28
27248
3209
13
24039
5206
28
27248
3209
13
30000
25000
20000
15000
10000
5000
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
0
Figure 7 shows the investment of surplus Samurdhi banking union funds. Even
though a high rate of investment was shown during the inaugural period of banking
unions, subsequently, it has declined. Due to the expansion of the credit programme,
amounts investable had dwindled gradually. It is a positive indication.
91
2
ACTIVITIES WITHIN THE BANKING FINANCE DIVISION
While the Banking Finance Division operates as the financial monitoring unit
of all Samurdhi banking unions and maha sangams established throughout Sri
Lanka, and associated to these, a significant function is being carried out
within the Division.
Acting accordingly, the Banking Finance Division bears all its expenditure,
and
in addition, travelling expenses of audit officers, costs of preparation of annual
reports of banking unions and training expenditure come under this. Also,
granting of refinancing loans to banking unions, reimbursement of Mihijaya
loans and supply of funds for staff loans are done through the income of the
Banking Finance Division. This Division also spends for promotion and
propaganda activities relating to banking unions.
Shown below is the overall income and expenditure of the Banking Finance
Division:INCOME
RS MN
Investments
EXPENDITURE
1572
From loans
45
Recovery of bad debts
Additional income
0
04
1621
Income
Addition
al
income ,
4
From
loans,
45
Excess of
income
over
expenditu
re, 399
Recover
y of bad
debts, 0
Administr
ative
expenses
of the
division,
174
Investm
ents,
1572
92
RS MN
Interest paid for compulsory
savings
Administrative expenses of
the Division
Excess of income over
Expenditure
1048
174
399
1621
Expenses
Interest
paid for
compulso
ry
savings,
1048
2.1 COMPULSORY SAVINGS PROCEDURE OF SAMURDHI BANK UNIONS
2.1.1
INTRODUCTION
The Compulsory Savings Programme was inaugurated to get low income earners to
get used to saving more and more and for their future prosperity. In this connection,
saving a certain portion of the government subsidy monthly is identified as
compulsory savings.
Out of the subsidy coupons issued by the Samurdhi Commissioners Department to
the value of Rs.1500, Rs. 1015, Rs. 900 and Rs.615, Rs 300, Rs.200, Rs.150 and
Rs.100 are respectively saved as compulsory savings. The basic objective of this
program is to get down this money to the Samurdhi Authority so that a creditable
return satisfactory to the beneficiaries could be bestowed by short term investment of
it in various approved financial institutions under a high interest rate. This programme
is being implemented mainly in two stages:0I
Compulsory Savings sent from Nov 1999 to date. These compulsory
savings of Samurdhi beneficiaries are remitted monthly by the
Divisional Secretariats to the Samurdhi Authority in favour of the
relevant beneficiaries’ banking unions for investment.
02
For the period 1995 to October 1999, out of the funds invested in the
Peoples Bank and the Bank of Ceylon, 25% of the funds of the reliable
customer beneficiaries’ is remitted to Samurdhi Authority of Sri Lanka
to be invested monthly.
Details of compulsory savings funds invested in the Authority are shown below:
FIGURE EIGHT – COMPULSORY SAVINGS REMITTED FOR INVESTMENT AS AT 31/12/2010
YEAR
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
FUNDS RS MN
1045
2424
3852
5510
6652
7349
8282
9099
9960
10,738
10,292
93
GROWTH
132%
59%
43%
21%
10%
12%
11%
9%
7%
-
12000
10000
8000
6000
Funds Rs.Mn.
4000
2000
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
0
Year
It must be mentioned here that the decline in growth of compulsory savings funds in
the year 2010 compared to the year 2009 was due to some extent to the variation in
the number of Samurdhi beneficiaries.
2.1.2 PAYMENT OF COMPULSORY SAVINGS INVESTMENTS INTEREST
Compulsory savings received by the Authority are invested through the investment
unit and from the benefits received interest is paid to the various banking unions at the
end of the year. Similarly, with the aim of mobilizing and strengthening Samurdhi
maha sangams, since the year 2006, the payment of this interest is done through the
Samurdhi maha sangams. In the same manner, with the objective of introducing
technical and productive systems to Samurdhi Maha sangams and banking unions,
since the year 2008, the payment of interest for compulsory savings investments was
done through direct remission to the Maha sangam account. Through this, it was
possible for the Banking Finance Division to earn around 3 million rupees annually as
an additional income. The interest rate paid for compulsory savings to beneficiaries
(through the limiting of the cash in transit period to one day) is on a higher level,
when compared to other competitive commercial banks, and this is a special privilege
bestowed on the account holding beneficiaries.
FIGURE NINE
YEAR
RATE OF INTEREST %
INTEREST RS.MN
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
14
17.75
13
8.1
7.5
7.75
10.06
14
14
14
9.5
53
273
440
487
511
648
885
1335
1314
1433
1048
Even though there was a sharp decline in the interest rate in the money market
during the latter half of the year 2010, the ability to pay an interest rate of 9.5 per
cent to the banking unions for compulsory savings is commendable. (During this
year, the commercial banks paid only an interest rate of 5 per cent for their
savings).
94
INTEREST PAID FOR COMPULSORY SAVINGS
2000
1000
2009
2008
2007
2006
2005
2004
2003
2002
2001
0
2000
Amount
Rs
Mn.
YEAR
2.1.3 UNIDENTIFIED COMPULSORY SAVINGS ACCOUNTS
Compulsory savings for which accounts cannot be opened as the beneficiaries
cannot be identified due to various reasons, are known as unidentified
compulsory savings. The board of directors decided to get back to the Authority
these funds which had been invested in the Divisional Secretriat accounts in the
Bank of Ceylon/Peoples Bank, and remit same to the Government Treasury.
2.1.4 FUNDS IN THE BANK OF CEYLON/PEOPLES BANK
Out of the beneficiaries who had opened accounts in the Peoples Bank/Bank of
Ceylon during the period 1995 to October 1999, Samurdhi banking unions have
opened accounts only in respect of reliable customers of Samurdhi banks, and the
funds belonging to the balance 75 per cent of the beneficiaries are still lying to
their credit in the Peoples Bank/Bank of Ceylon. By now, this fund is around four
billion rupees, and a policy decision has been taken to disburse this to the banking
unions. Accordingly, briefings have been done at district level regarding the
compiling of the relevant registers.
Further, necessary action has been finalized to debit funds of banking unions with
the money of Samurdhi beneficiaries lying in the Bank of Ceylon and the Peoples
Bank at divisional secretariat level.
2.1.5
OTHER MATTERS
01. Awareness and evaluation had been done at district level in several districts
for the self employed persons to obtain membership of the Employees Trust
Fund through Samurdhi banking unions in the year 2010. Accordingly, as at
3lst December, 2010, over 15,000 beneficiaries have obtained membership.
2.2 LOAN SCHEME
The Banking Finance Division has implemented within it two loan schemes,
further extending the credit programme implemented by banking unions.
2.2.1 Loan scheme for beneficiaries.
2.2.2. Loan scheme for the staff.
95
2.2.1 LOAN SCHEME FOR BENEFICIARIES
2.2.1.1. REFINANCING LOAN SCHEME
Banking unions give loans from deposits accumulated by the relevant
beneficiaries themselves. For this purpose, banking unions are
authorized to give only up to 80 per cent of the total deposits. To offset
the financial difficulties arising due to loans granted beyond this limit,
the Banking Finance Division provides refinancing facilities to banking
unions, at interest rates lower than charged by banks. Credit facilities
are provided for income generating projects such as self employment,
cultivation, fisheries and animal husbandry. During this year, the
interest rate for the refinancing loan scheme was revised, and with
effect from 03/11/2009 the Samurdhi Authority of Sri Lanka gives loans
to maha sangams at an interest rate of 4 per cent. Maha sangams give
loans to banking unions at an interest rate of 7 per cent.
Figure ten – Progress of the Refinancing Loan Programme as at 31/12/2010
YEAR
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
AMOUNT OF
LOANS
NO OF BENEFICIARIES
11
175
324
472
637
786
849
971
1040
1072
1097
110
523
5578
12588
18400
23223
27605
30351
36155
40008
42631
44180
45284
AMOUNT
RELEASED RS MN
RATE OF
RECOVERY
3
52
117
177
233
283
315.8
389
450
499.71
523.58
571.11
Progress of the Refinancing Loan Programme as at 31/12/2010
2.2.1.2 - Sabanda, Jana Pubudu and Gedera Naya loan schemes
50000
40000
30000
20000
10000
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
AMOUNT OF LOANS
NO OF BENEFI-CIARIES
96
100%
92%
101%
100%
100%
101%
102%
100%
100%
100%
100%
91%
These loan schemes had been suspended during the year 2010, and as an alternative to
this loan scheme, self employment, Piyasa and Mihi Jaya programmes are being
implemented.
2.2.1.2 THE VIDULI ATHWELA PROGRAMME
With the aim of making electricity available for everyone, the Ministry of Power and
Energy inaugurated the Viduli Athwela Programme, for Samurdhi beneficiary and low
income earning families. This programme is being directed by the Ministry of
Economic Development and the Ministry of Power and Energy, while the Samurdhi
Authority of Sri Lanka and the Ceylon Electricity Board are contributing actively in
this behalf.
The Banking Finance Division provides funds required to implement this subsidized
“Viduli Athwela” credit programme through the island wide network of Samurdhi
banking unions for it to be put in operation concurrently.
The anticipated benefit of this programme is the strengthening of the economy
through making productive the small industries and marketing developments
programmes carried out or intended to be carried by low income earners.
Through this, by the increase in the number of loan applications for the Samurdhi
Programme, it is envisaged that new members would flock to Samurdhi banking
unions and deposits would increase..
It is anticipated that the income of the banking unions would be enhanced due to the
service charges provided by the Banking Finance Division. Due to the above reasons,
the financial stability, efficiency and trust of the Samurdhi banking unions would
develop further.
The maximum loan payable to beneficiaries for this Viduli Athwela programme is
Rs.30,000/-, and recoveries would be made through installments including the
principal and an annual interest of 12% during a period of 60 months.
After obtaining loan applications from the relevant consumer service center, and after
being duly filled in under operating instruction no. 5, eligible applications would be
forwarded to the Electricity Board with the recommendations of the Samurdhi
Development Officer, Samurdhi Manaager and the Divisional Secretary respectively,
and electricity facilities provided thereafter.
The bilateral agreement between the Samurdhi Authority of Sri Lanka and the Ceylon
Electricity Board pertaining to this Viduli Athwela credit programme had been signed
in the year 2010. Even though no loans were given during that year, it is expected to
give loans in the coming year.
97
2.2.2 LOAN SCHEME FOR THE STAFF OF THE SAMURDHI AUTHORITY OF SRI
LANKA
2.2.2.1 CONSUMER CREDIT PROGRAMME
Under this programme which was launched in June 2004, loans up to a
maximum of Rs.50000/- were given at an interest rate of 9% to Samurdhi
Development Officers only up to 2008. Now this loan scheme is open to all
members of the staff. Pay back period is 60 months.This credit programme is
open to all categories of staff since the year 2008. From 18/10/2008 the sum of
Rs.50,000/= has been increased to Rs.100,000/=. As at 31st December, 2010,
666 loans had been given.
Figure eleven –
Staff consumer loans as at 31/12/2010 (cumulative)
RATE OF RECOV
NO OF LOANS
AMOUNT RS
ERY %
GIVEN
19155
MN
994,518,000
994.5
2.2.2.2 HOUSING LOAN SCHEME FOR STAFF
In June 2004, this loan scheme was inaugurated for the permanent staff of the
Samurdhi Authority of Sri Lanka, and allocations are made from the earned
income of investments made by the Banking Finance Division. Under this loan
scheme, credit facilities are given to purchase land, build a new house and for
new additions or extension to a house. The loan amount has been increased
from Rs.200000/- to Rs. 500000/- and the interest rate is 12%. Payback period
of the loan has been extended to fifteen years. Under the housing loan scheme,
the following loans had been issued as at 31/12/2009. The rate of interest has
been reduced to 10% with effect from 01/01/2010.
Figure twelve –
Housing loans as at 31/12/2010 (cumulative)
No of loans given
1669
Amount Rs Mn
678
2.2.2.3 MOTOR CYCLE LOAN SCHEME
In November 2004, this programme was inaugurated and allocations for this
are made from the earned income of investments made by the Banking
Finance Division. This programme has been limited only to the permanent
staff of the Samurdhi Authority of Sri Lanka. Motor cycle loans are given
subject to a maximum of Rs.85000/- at the interest rate of 10 per cent per
annum, with a pay back period of 60 months.
98
Figure thirteen –
Motor cycle loans as at 31/12/2010 (cumulative)
No of loans given
Amount Rs Mn
3248
271
2.3 STAFF PHYSICAL INJURY INSURANCE
Under this programme, members are paid compensation for physical injuries
sustained during cash robberies whilst transporting daily collections of banking
unions to commercial banks, or during sudden robberies or thefts of cash in hand.
The Staff Physical Injury Compensation Insurance Fund was put into operation
from October 2005, and every bank union should pay Rs.1000/- annually to this
Fund and obtain insurance cover.
The maximum amounts which could be claimed under this scheme:
Samurdhi Managers -Rs.200,000/-.
Samurdhi Development Officers - Rs.150,000/-.
During the year 2010, under this programme a sum of Rs.898,200/= has been received
through the banking unions by way of insurance premia. No compensation has been
paid during the year 2010.
2.4
INSURANCE OF CASH IN HAND OF SAMURDHI BANK UNIONS
2.4.1
Through this, losses would be reimbursed caused due to thefts
or robberies whilst transporting cash in hand belonging to
Samurdhi banks from such Samurdhi banks to commercial
banks and vice versa.
2.4.2
Taking into consideration the daily liquidity requirements of
bank unions and maha sangams, inquiries may be made from
the Banking Finance Division regarding this insurance cover.
For this, the annual installments should be sent to the Banking
Finance Division, and the necessary steps have been organized
to provide the insurance cover. Its progress as at 31st December,
2010 is that 1041 banking unions and 181 maha sangams have
obtained this insurance cover.
2.4.3
Installments sent by the banking unions and maha sangams
(including physical injury insurance premia) are credited to a
fund created by the Banking Finance Division and invested
profitably and the fund expanded. Accordingly, the investment
as at 2010 is Rs.100,594,797.89.
99
2.4.4
For the year 2010, a sum of Rs.27,156,469.25 had been
remitted by banking unions by way of insurance premia. No
compensation had been during the year 2010.
2.5 SUSTAINABLE AGRICULTURAL WATER MANAGEMENT PROJECT
This is a project, which is being implemented by the Ministry of Agriculture
under a loan grant made by the government of Australia, through Samurdhi
banking unions and agrarian banks. Through this project, solar water sprinkler
irrigation kits are issued per half an acre to farmers engaged full time in high
land cultivation.
The main objective of this project is increasing the income levels of farmers
through higher productivity in small plots, minimizing production costs and
applying appropriate water management, while utilizing new technology.
Under the Solar Water Sprinkler Supply technology, cultivation of vegetables,
fruits, fleshy crops, and oil crops are recommended. This irrigation system set
is valued at a sum of Rs.345,452/25, and the aim of the Banking Finance
Division is to increase the income levels of Samurdhi beneficiary farmers and
to enhance their living conditions by paying more attention to them, getting
them to engage in farming under new technology and introducing them to
commercial agriculture, and to increase the financial strength of Samurdhi
banking unions.
2.6
FINANCIAL OPERATIONS OF BANK UNIONS AND MAHA SANGAMS.
In respect of bank unions and maha sangams, an annual audit report is
prepared at the end of each financial year, that is from Jan 01 and Decr 31,
covering all activities during this period. The authority for the formulation of
this report has been given to the accountant of the divisional secretariat. His
report is re-examined by the Banking Finance Division and final approval
given. As the progress of this procedure is not very satisfactory, the
preparation of the audit reports for the year 2006 was done by the Internal
Audit Division and the accountants attached to the divisional secretariats.
Audit reports not prepared in this manner by the divisional secretariats were
prepared by the Internal Audit Division.
Audit reports not prepared for the period 2000 to 2005 are being prepared for
external auditors. The number of such reports to be prepared is 3016. The
Internal Audit Division does audits annually and submits financial statements
from the year 2006 to date.
2.7 BANK MONITORING UNIT
Action regarding irregularities, fraud and malpractices and providing
necessary instructions and guidance regarding rectification of accounting
errors in banks and maha sangams.
100
 A Bank Monitoring Unit has been opened in the Banking Finance
Division to assist banking unions having problems regarding operational
matters.
 The Banking Finance Division follows up action regarding audit queries,
audit investigation reports and complaints received from other sources,
and refers relevant matters to the Internal Audit and Legal and
Investigations branches, and co-ordinates such activities.
 The Banking Finance Division examines the accounting procedures and other
activities of Samurdhi bank unions and maha sangams, and takes follow up
action.
 Monitoring of the balancing of trial balances, monitoring of the
implementation of banking mobile services and drafting of instructions
for contingencies.
 The Bank Monitoring Unit supervises, follows up and guides banks and
maha sangams regarding their accounting and daily duties.
2.8
TRAINING MATTERS
The training unit of the Banking Finance Division engages in training a
staff of 1042 in the Samurdhi banking union network and a staff of 300
working in maha sangams in banking functions and other subjects.
In order to provide the customer community with an efficient and
productive service, the function of this Division is to perfect the
knowledge, skills and positive attitudes of the banking staff.
Accordingly, every officer is given a basic trainining course in banking
matters and the accounting process, which gives an understanding about
banking procedures. In addition, action will be taken to train unskilled
staff of the maha sangams about functions of the maha sangsms and their
accounting procedures. Also, several special training programmes had
been held for development officers working in the field wiwth the aim of
giving them an understanding about banking procedures.
Accordingly, during the year 2010, several training programmes were held
and around 500 trainees took part in these programmes. A sum of around 2
million rupees had been spent for these.
2.9 MANAGEMENT INFORMATION UNIT
Management of the data of the 1043 banking unions is done by the management
information unit of the Banking Finance Division. Accordingly, every banking
union has to send a monthly progress report on the prescribed format to the data
and management unit, and it has been planned to process such data and analyse
the condition of the banks and submit data and to create a ratio analysis necessary
101
for the evaluation of progress of banking unions and to evaluate banking unions
based on it. Further, action has been taken to transmit to the Banking Finance
Division data about banking unions and maha sangams utilizing computer
technology.
With the successful computerization of Samurdhi banking unions, this unit
continues to analyze and evaluate the prevailing conditions of banking unions to
make them more productive and efficient.
2.10
MARKETING PROMOTION UNIT
The Banking Finance Division has taken action recently to introduce to the
Samurdhi banking union field the principles of marketing, which is an important
sector in banking. Accordingly, the marketing unit of the Banking Finance
Division has launched special programmes for the purpose of promotion of
deposits in Samurdhi banking unions.

In the year 2010, with the objective of preserving for future generations Sinhala
cultural traditions and national games, and for giving publicity to Samurdhi
bank unions among the people, 1000 New Year festivals were held covering
every bank union. For this purpose, the Banking Finance Division has given a
sum of 11 million rupees to bank unions.

In the year 2010, two programmes were formulated and implemented to
promote savings in Samurdhi bank unions.
I.
II.
III.
IV.
To correspond with the Sinhala and Hindu New Year, an Avurudu
Ganu Denu week was named and through it, deposits worth 512
million rupees were collected.
To commemorate the International Womens Day, on 08th March,
2008, the Diriya Matha savings promotion strategy was
successfully launched in the 1042 bank unions.
Based on the World Childrens Day, Childrens Deposits Promotion
Programmes were implemented.
Efforts were made to stimulate a religious awakening by organizing
spiritual and material religious activities commemorating the thrice
blessed Wesak day in the year 2010, centered round 1000 bank
unions.
E.g.dhamma sermons,
competitions were held.
devotional
songs,
Wesak
lantern
Efforts were made to stimulate a religious awakening in Buddhist
majority areas, by organizing spiritual and material religious
activities in the year 2010 centered round 1000 bank unions.
As a dharma dana, 300,000 copies of the Budu Sarana Wesak
number were distributed under the patronage of Samurdhi
banking unions, and the Banking Finance Division gave its
102
patronage for the main Wesak national festival which was held
concurrently. 1000 banking unions arranged for 1000 dhamma
sermons and took action to hold a childrens’ Wesak lantern
competition, with the aim of promoting childrens accounts.
To commemorate Christmas, centered on Negombo, known as
“Little Rome” a Christmas festival was held in a very grand
manner. In future, depending on requests made, it is envisaged to
extend this Christmas programme to other regions where there
are Catholic communities. All these activities were done as
banking union promotion programmes.
11 GENERAL MATTERS
11.1 OTHER PROGRAMMES AND ACTIVITIES CARRIED OUT BY THE
DIVISION DURING THE NEW YEAR
 For the year 2010, an action plan was prepared with five targets spread
gradually over the year for banking unions, and banking unions were
directed towards it.
Most banking unions are now in the process of being computerized. By now, through
Internet facilities, the Management Data Unit of the Head Office has commenced
obtaining the relevant data.
 The progress of enhancing infra structure facilities of bank unions and
maha sangams in the year 2010 under government allocations is shown
below:PROGRAMME
NUMBER OF
MONETARY
PROJECTS
PROGRESS
RS MN
NEWLY CONSTRUCTED BANK UNION AND
MAHA SANGAM BUILDINGS
REPAIRED BANK UNION AND MAHA SANGAM
BUILDINGS
19
164
45
86
 During the year 2010, a sum of Rs.1,364,364/93 had been paid as
traveling expenses to accountants and investigation officers for visiting
bank unions and maha sangams.
 The Banking Finance Division has paid the traveling expenses of audit
officers for investigations. This amount has been shown as Rs.
4,450,952/= in the books.
103
15.0
INTERNAL AUDIT DIVISION
“Internal Audit” can be described as one aspect of internal control within
the institutional administrative structure. Internal audit means the
continuous efforts made for the purpose of achieving the objectives of the
institution, and keeping a watch to see whether such efforts are adhered
to, and to keep administration of the institution informed about these.
01. While internal audit is helpful to the internal administration, its service to the
internal administrative setup also is tremendous. Viewing broadly, it could be
considered under two divisions:

Management audit
Financial audit.
1. In management audit, opinions are expressed about institutional administrative
patterns and decisions and about how such decisions affected the future
standing of the institution.
The following are inquired into:
i.
Has action being taken in conformity with the Authority Act, its
objectives and policies?
ii.
Has government policy being implemented?
iii.
Has action being taken in accordance with an action plan?
Also inquiries are made as to how management decisions had affected the
efficiency of the institution, and to submit the audit opinion to the
management.
2. In financial audit, inquiries are made as to how the financial administration of
the institution had been utilized for the running of the institution according to the
annual plan.
i.
Achieving the aim of the Authority Act.
ii.
Conformity to the provisions of the Finance Act No. 38
of 1971.
iii.
Conformity to the Accounting and Audit Standards Act No 15 of
1995.
iv.
Adherence to Treasury circular instructions.
v.
Adherence to administrative regulations.
vi.
Also, to examine and report whether action has been taken in
accordance with financial regulations and other provisions
Under this, investigations are held to find out whether there have been irregularities,
frauds or corruption in the performance of these functions, and proposals are
submitted to the management authority to take action under the criminal law and civil
law in connection with such offences.
Audit functions have been carried out in the current year, utilizing the staff and
resources available to the Internal Audit Division, and another function is to submit
the observations of the investigations done monthly to the Board of Directors, and
annual and half yearly returns to the Auditor-General.
104
02. ANNUAL PLAN AND OPERATIONS
NORMAL FUNCTIONS
Among the programmes proposed to be implemented during the current year
were:i.
Subjecting all divisions in the head office to internal audit inspections.
ii.
Subjecting all activities in the offices of the Assistant Commissioners
of Samurdhi stationed at district level were subject to internal audit
inspections.
iii.
Subjecting all activities in the Samurdhi sections in divisional
secretariats. to inspections.
iv.
Subjecting all activities of the officers of the Authority attached to
zonal offices, Samurdhi banking unions, maha sangams to inspections.
v.
Subjecting operations of the Samurdhi programme to inspections.
vi.
Investigations into other special complaints and petitions, and
conducting other special investigations were also done.
SPECIAL FUNCTIONS
i.
In addition, our Division was entrusted with the preparation of the
final accounts of the Samurdhi banking unions for the year 2009.
Profit and Loss Accounts of the Banking unions were rectified, and
accordingly the necessary future action was planned for
appropriation of profits.
ii.
A special responsibility cast on the Internal Audit Division is the
due summoning of the Audit and Management Committee, tabling
of proposals and submission of the committee’s recommendations
to the Board of Directors. In this manner, we provide our
contribution towards decision making in relation to administration.
03. INTERNAL AUDIT PROGRAMME
03.1
The internal audit programme has been formulated to subject to inquiry
Samurdhi Directors offices island wide, and also programmes
implemented at divisional and zonal level. This programme covers
1048 banking unions and 200 maha sangams.
Accordingly, the under mentioned sections are subject to inspections
through this:
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.
x.
Head Office
Samurdhi Lottery Fund
Samurdhi Housing Development Lottery Fund
Samurdhi Fund
Samurdhi banking union cyclic fund
Staff loan scheme
District Samurdhi Office/Zonal offices
Samurdhi Officers Welfare Fund
Banking Finance Divisions.
Banking unions and Maha Sangams.
105
03.1.1 Shortage of staff during the current year gravely affected the progress of the
division.
Special mention must be made that although it was planned to
organize the entire audit staff for the action plan, it could not be achieved due
to the indirect influence of the shortage of staff.
Although 29,400 man days were planned during the current year, the
number of man days lost because of the shortage of staff and the
deployment of the staff for special duties was 6200. Due to this, around
twenty one percent of the original plan could not be achieved in the
approved plan.
03.2
Special attention was paid to certain sectors through the internal audit.
During inspections of offices attention was paid to the mainly to the following
areas:




03.3
Suitability of internal control systems – quantitative and qualitative
examination.
Analysis of expenditure and waivers
Frauds, corruption and irregularities
Study of procedures and systems.
Financial information and data analysis.
AUDIT QUERIES
i.
ii.
Among audit queries issued during the current year, there were 182
relating to accounting errors and 40 replies had been received.
In respect of the 20 inspections done relating to the Head Office, 19
audit queries were issued and replies have been received regarding 9 of
those.
03.4 HOLDING OF SPECIAL INVESTIGATIONS
During the current year, it was reported that there had been 61 instances where
investigations had been held. According to the nature of these special
investigations, these could be classified as follows:






Delays in accounting
Non accounting
Frauds, corruption and irregularities
False deposit entries
Non adherence to circular instructions
Irregularities during granting of loans and accepting deposits
Out of these, reports relating to 33 investigations had been issued during the
year, and it must be noted that most of the complaints had been received
anonymously, and that at the inquiry stage, no evidence came forth. However,
based on the observations, the attention of the management has been drawn to
taking disciplinary action against the officers responsible.
106
03.5
AUDIT AND MANAGEMENT COMMITTEE MEETINGS
There should be a concurrent coordination between the management and the
financial division for the progress of the institution, and this is considered
during the meetings of the audit and management committee and the staff
committee. The Audit and Management Committee was able to hold six
meetings during the year, and matters discussed and recommendations made
had been referred to the Board of Directors and the relevant Divisions for
future action.
03.6
AUDIT OF THE SAMURDHI BANKING UNION ACCOUNTS
Progarmmes Island wide were implemented during this year too to close the
final annual accounts of Samurdhi Bank Societies and Maha Sangams, and to
obtain the audit opinion and recommendations in respect of same. Through
this, it was possible to audit around 982 Samurdhi Bank unions and 207
maha sangams in respect of the years 2008 and 2009. Another special
function which took place during the current year was the forwarding of
recommendations for the preparation of financial statements for the relevant
period and to appropriate the Profit and Loss Accounts in respect of 907
Samurdhi Bank unions and 112 maha sangams
Following are the observations arising out of these investigations:I. Several instances were observed where officers of the Samurdhi Bank
unions and Maha Sangam had acted contrary to instructions given by
the management of the Authority, and the adverse situation caused to
the Authority thereby has been evaluated financially and
administratively.
II. Weaknesses in the accounting procedures introduced to Samurdhi
banking unions and maha sangsms were pointed out, as well as that a
trained staff was necessary for them to adhere to such procedures.
III. It was observed that Samurdhi Officers and Samurdhi Managers had a
low attitude in regard to their responsibilities and their obligations
towards the community.
IV. Several instances were observed of misappropriation of finances and
obtaining loans on fraudulent representations.
V. It has been observed that the field officers and other officers have not
duly complied with rules and regulations and that they have
disregarded such instructions.
VI.
Among matters observed were instances where functions carried out
using government contributions had not been differentiated from
those using contributions from others.
In the course of acting in accordance with the approved overall audit programme
and the action plan, in the midst of difficulties, among the achievements won
during the current year was the confidence of the Board of Directors towards the
revision of procedures and systems, and the efforts made division wise to reply
audit queries must be appreciated.
107
04. STAFF OF THE INTERNAL AUDIT DIVISION
The staff attached to the Internal Audit Division work in affiliation with the divisional
level staff. Its composition is as follows:
POST
TOTAL
HEAD OFFICE
DISTRICT
OFFICES
CHIEF EXECUTIVE
02
AUDIT OFFICERS
64
16
48
AUDIT MANAGERS
69
04
65
135
22
113
TOTAL
-
05. DETAILS OF PROGRESS
5-1 Inspections
Special
4%
Asst. Cmmt. of Samurdhi
2%
Head office
1%
Closing of Mahasangam Accounts
14%
Div.Secy.
14%
sssss
Closing of Samurdhi Banking
Account
65%
108
5-2 ISSUES
Div.Secy.
Asst. commt.
of Samurdhi
3%
Samurdhi
Banking
8%
11%
Closing of
Mahasangam
Accounts
8%
Maha Sangam
2%
Special
2%
Closing of
Samurdhi
Banking Account
65%
Head office
1%
5-3 INSPECTIONS AND ISSUES
1032
පරික්ෂා
කිරීම්
INSPECTIONS
907
225
217
145
112
37
26
Asst. commt.
of Samurdhi
Div.Secy.
61
Samurdhi
Bank
Account
Maha
Sangam
Account
Special
109
31
Head
Office
20
19
නිකුත්
Issues කිරිම්
16. LEGAL AND INVESTIGATIONS DIVISION
It is easy to maintain institutional good governance within the context of
maintaining law and respect for discipline. Especially due to the
activation of the Legal and Investigations Division, not only the good
standing of the Samurdhi Authority of Sri Lanka is upheld, but also the
transparency of the functions of the entire institution is maintained.
16.1
The function of this division, whose theme is “a disciplined work force”, is
instrumental for the good conduct of not only its staff, but also of external
parties. The main objective of this Division is to maintain discipline in the
institution in a broad and efficient manner, to uphold good order of the
institution and to provide relief to both employer and employee through
investigations.
16.2.1 BASIC FUNCTION AND OBJECTIVES OF THE LEGAL AND INVESTIGATION
DIVISION
01. Providing assistance to maintain law and order within the institution.
02. Minimizing the tendency towards misconduct by identifying offences,
imparting awareness about it and by recommending the inflicting of
punishment.
03. Making an attitudinal change among Samurdhi officers regarding good
conduct.
04. Assisting to recover compensation from those responsible for the misuse of
financial and material resources.
16.2.2
TASKS:-

Conducting the preliminary investigations on complaints.

Preparation of charge sheets and serving same on the relevant officers.

Appointing Boards of Inquiry.(Appointment of Prosecution Officers and
granting of consent for the appearance of Defending officers)

Leading the prosecution.

Providing advisory services to other divisions in proceedings relating to
breaches of discipline.

Obtaining the final report from Boards of Inquiry.

Submitting recommendations to the Disciplinary Authority about inquiries.

Action on appeals received against disciplinary orders.
110
16.3

Assisting the exercise of disciplinary powers which have been
decentralized down to Regional Secretariat level.

Conducting District Progress Review activities on disciplinary matters.

Appearing before the Courts on behalf of cases filed by the Authority, and
representing the Authority.

Providing legal assistance in respect of housing loans and motor cycle
loans.

Taking action on cases filed before the Human Rights Commission.

Maintaining files pertaining to the above tasks.
DISCIPLINARY INQUIRIES
16.3.1 PROGRESS MADE DURING THE CURRENT YEAR :Completed
Disciplinary inquiries
Labour tribunal cases
Human rights cases
Appeal court cases
Supreme court cases
Civil appeal court cases
16.3.2
59
02
03
01
02
01
Pending
80
52
12
02
-02
PROGRESS OF DISCIPLINARY INQUIRIES AGAINST SAMURDHI MANAGERS
AND SAMURDHI DEVELOPMENT OFFICERS
Number of officers interdicted
Number of officers dismissed
No of cases disposed of
-
05
14
07
PROGRESS OF DISCIPLINARY INQUIRIES AGAINST
SAMURDHI DEVELOPMENT OFFICERS
Number of officers interdicted
Number of officers dismissed
111
-
05
13
17.0 FINANCIAL MANAGEMENT DIVISION
Financial control of the institution does not mean curtailing expenditure,
but making optimum use of the limited resources in a productive
manner, for the progress of the institution. The basic objective of this
division is to cumulate all income received by the authority by way of
banking finance savings as provisions, and invest and manage same
more systematically.
17.1
This Division is entrusted with the task of assisting the dual functions of making
available necessary funds required for the implementation of the Samurdhi
programme island wide, and to maintain financial discipline.
During the current year, action was taken to revise procedures and systems, as
well as to establish financial controls in the relevant Divisions.
Especially, action was taken to incorporate investments of banking unions to
the monthly accounting systems of the relevant Divisions, which had worked in
cooperation with the Financial Division. Accordingly, in the process of
providing financial assistance to small groups under the banking financial
system, the contribution made by this Division was of a high level.
17.2
FUNCTIONS OF THE FINANCE DIVISION CAN BE SUMMARISED AS FOLLOWS:-
 Preparation of annual budget, based mainly on the financial resources
provided by the General Treasury, making amendments to the budget and
budgetary control.
 Preparation of annual budget for the Samurdhi Programme based mainly on
the divisional financial resources, making amendments to the budget and
budgetary control.
 Release of divisional financial resources for the Samurdhi Programme,
collection of financial data and financial management
 Collection of information relating to accounts at divisional level to maintain
accountability of the overall Samurdhi Programme, and preparation of final
financial statements in conjunction with the accounts maintained in the head
office.
 Submission of the final financial statements for audit, follow up action in
regard to matters arising from the audit queries and rectification of errors.
 Provision of necessary financial data and information required for monitoring
and management decision making, and providing guidance.
112
 Preparation of necessary background for the safe guarding of the assets of the
Samurdhi Authority of Sri Lanka, and the implementation of Samurdhi
programme effectively.
 Collection and accounting of income relating to the Samurdhi Programme.
 Delegation of financial authority in connection with all expenditure inclusive
of developmental expenditure of the Samurdhi programme, salaries of the
staff, and the incurring and accounting of expenditure.
 Introduction and implementation of accounting systems and accounts
procedures in keeping with the timely requirements of the Samurdhi
Programme.
 Taking necessary steps to account for the cheques received for provision of
printed stationery to Banking unions, depositing such cheques into the bank
accounts of the relevant districts and maintain the banking union stationery
cyclic funds, investing the surplus cash balances and maintaining accounts.
 Collection and accounting of money for the Samurdhi Fund, investment of
funds whenever the requirement arises, and accounting same.
 Obtaining the relevant contributions for the Samurdhi housing Development
Lottery from the District Secretariats monthly, releasing money for the prize
winners, bearing expenditure related to the lottery programme, investing of the
balance amount productively, preparation of the final accounts related to the
lottery fund monthly and annually, and forwarding them to the Samurdhi
Housing Development lottery trustee board.
 Organizing of all supply activities of the Samurdhi Authority.
 Accounting functions pertaining to the Asian Development Bank Aid
Programme.
 Receipt and issue of stores items
 Collection and accounting of money to the Samurdhi Officers Welfare Fund,
and releasing of money as advances to District Secretariats.
113
PART TWO
114
SRI LANKA SAMURDHI AUTHORITY
FINANCIAL STATEMENTS FOR THE YEAR 2010
ACCOUNTING POLICIES
1.GENERAL
The Samurdhi Authority of Sri Lanka has been incorporated under the Samurdhi
Authority Act No: 30 of 1995.The function of the Authority is to improve the
economic and social condition of the youth, women and disadvantaged groups in
society.
The financial statements of the Authority have been prepared on the historical cost
basis, and in accordance with the generally accepted accounting principles and
accounting concepts. No adjustments have been made for the inflationary factor in
the financial statements.
2. ACCOUNTING PERIOD
Accounting period is from 01.01.2010 to 31.12.2010.
3. ACCOUNTING OF GRANTS
I .Recurrent grants received from the government and capital grants have been
adjusted to Income and Expenditure Account and to government
contribution respectively.
II. Receivables from funds and receivables from Banking Finance Division
for the Capital requirements, and receivables from funds and receivables
from the Banking Finance Division for the recurrent requirements, have
been shown under the Participating Account and Expenditure Account
respectively.
4. ASSETS AND BASIS OF THEIR EVALUATION
I. Tangible Assets and Depreciation
Depreciation has been calculated on the straight line basis on cost, at the
following rates per annum. Lands and properties have not been
depreciated.
Construction Expenses
Machinery and advertising equipment
Vehicles
Telephone and fittings
Office Equipment
Computers and Accessories
115
10%
20%
20%
20%
20%
25%
Educational Equipment
Welfare Equipment
Training Centre Equipment
Training Centre Machines
Training Centre Buildings
Improvement of Training Centres
Furniture and Household Equipment
Printing Machines and Other Accessories
Air Conditioning Equipment
Kitchen Equipment
Agricultural Equipment
Computer Software
Other Equipment
Media Equipment
Sport Equipment
Type Writers
Postal Franking Machines
Fire Proof Cabinets
Machinery and Equipment
Training Centre – Other Equipment
Training – Furniture
Furniture for Head Quarters Manager
Library Books
Office Equipment –Minor
Computer Network
Construction of Bank Buildings
Renovation of Bank Buildings
Furniture and Equipment – Maha Sangam
Land Acquisition – Maha Sangam
Telephone Facilities – Maha Sangam
Telephone connections
20%
33.33%
20%
20%
5%
20%
20%
20%
20%
33.33%
20%
25%
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%
25%
20%
25%
20%
20%
20%
20%
20%
20%
Depreciation of assets is adjusted in full in the year of acquisition and provision
has not been made for depreciation in the year of disposal.
ii. Depreciation of fixed assets of Banking Finance Division has been done
annually
on the straight line method at the following rates:Fax Machines
Staplers
Binder Machines
20 per cent
33.33 per cent
33.33 per cent
116
5.
STOCKS
Trading stocks, stationery and consumable stocks have been valued on cost, and
cost has been arrived on the First In First Out (FIFO) basis.
6.
DEBTORS AND OTHER RECEIVABLE VALUES
Debtors and other receivables are stated at the values estimated to be realized.
7.
LIABILITIES AND RESERVATIONS
I. Current Liabilities
Current liabilities are the payments to be made on stipulated dates, or
payments to be made within a period of one year from the balance sheet date.
II. Retirement benefits
The accounting policy of the Samurdhi Authority of Sri Lanka is to allocate
retirement benefits of the employees for the number of years service
completed since joining the service.
8.
INCOME AND EXPENDITURE
I
Income and expenditure is accounted for on the accrued basis.
II 100 per cent allocations had been made for capital expenditure incurred for the
development programmes implemented by the Authority, and written off to
the Income and Expenditure Account.
III Interest received for loans granted to the officers of the Authority is credited to
the Employees Loan Fund.
IV The interest gained from the investments is credited to the relevant fund from
which the allocations were made.
9
Funds which had been written off as development expenditure, and which
had been recovered from such projects have been accounted under the
Samurdhi Fund after making adjustments for amounts receivable.
10.In performing the functions of the Samurdhi Authority of Sri Lanka, District
Secretariats are treated as branch offices, and accounts are maintained utilizing the
decentralized branch accounts system prevalent in the branch accounts system
Accordingly, after the head office reconciles the branch account on behalf of the
district office, it is shown under current assets in the year ending balance sheet of
that account. This had been the accounting policy followed up to the year 2005.
This policy has been changed, and since 2006 when accounts are being prepared,
action has been taken to disclose separately in the balance sheet the various account
balances shown in the current account named District Secretary.
117
Notes : 1 . Investments which are shown under share investments are investments in
unquoted companies.
2. Although the expenditure borne by funds is shown as development expenditure in
the Income and Expenditure Account, a similar amount is shown separately in the
Income and Expenditure Account as receipts from various funds. Therefore it will
not affect the surplus/ (deficit).
3. Although expenses incurred for the Media, Monitoring and Evaluation programme
had been shown as recurrent expenditure up to the year 2004, as the General
Treasury gives allocations for this programme under capital provisions from the
year 2005, expenditure incurred for Media, Monitoring and Evaluation programmes
is shown as development expenditure under 100% allocations.
4. Since the year 2005, the Balangoda Training Center was treated as an independent
unit operating under the Authority, and accounts were prepared under the
decentralized branch system. Accordingly, a separate income and expenditure
account has been prepared for the training center, and the income of the training
center calculated based on it, and the transactions of the training center
amalgamated with the accounts of the head office. Overhead expenses of the
training center have been shown under other administrative expenditure of the
Authority.
5. Since the Banking Finance Division is engaged in earning profits working as an
independent unit, whilst contributing to achieve the objectives of the Authority, the
profits earned by that division have been calculated, using a separate income
statement and a balance sheet for that division, based on the transactions of that
division. As the Banking Finance Division is functioning under the Authority,
items in the balance sheet have been amalgamated with the accounts of the head
office.
6. Since the year 2009, the Nillamba Training Center was treated as an independent
unit operating under the Authority, and accounts were prepared under the
decentralized branch system. Accordingly, a separate income and expenditure
account has been prepared for the training center, and the income of the training
center calculated based on it, and the transactions of the training center
amalgamated with the accounts of the head office. Overhead expenses of the
training center have been shown under other administrative expenditure of the
Authority.
7. The expenditure of Rs.1,000,000.00 shown under note no 3 is in respect of the
SAARC summit held in the year 2006 for the eradication of poverty.
8. A sum of Rs. 156,217,839/38 has been shown as the amount of depreciation in the
Income and Expenditure Account as at 3lst December, 2010. In the notes for the financial
statements in the property, plant and equipment schedule, under depreciations for the year
2010 the amount shown as depreciation is a sum of Rs. 156,241,831.88. The difference is
due to the fact that Rs.23,992/50 being th`e amount of depreciation of the stationery cyclic
fund under head 2004-2 had been included in this.
118
SAMURDHI AUTHORITY OF SRILANKA
-
BALANCE SHEET AS AT 31ST DECR 2010.
NOTES
2010
2009
RS .CTS.
RS .CTS.
Assets
Non Current Assets
Property, plant & equipment
Property, plant & equipment – Banks
Investments
Investments
Investments Banks
Development Expenditure
Development expenditure cost
Provision for development expenditure
1
26
472,821,130.94
1,273,100.00
370,498,496.71
2
2,187,855,069.80
2,661,949,300.74
1,941,014,022.73
2,311,512,519.44
25
15,437,355,884.00
15,437,355,884.00
13,388,333,769.00
13,388,333,769.00
3
4
14,648,866,372.09
(14,648,866,372.09)
-
11,831,872,262.01
(11,831,872,262.01)
-
5
6
24
23,571,928.64
4,774,238.88
Current Assets
Stationery & Trading Stocks
debiters
•• Loans receivable – bank
Less:- Provision for bad debts
Other Assets-Banks
Advances
Deposits
Cash Receivable
Cash Receivable – From Housing Fund to official a/c
Cash Receivable- From stationery a/c to official A/c
Staff loans receivable
Investment interest receivable
Insurance compensation receivable
Cash in transit
1,043,904,524.00
348,075,460.00
28,906,256.10
1,677,500.00
1,215,116,513.01
105,566,616.57
42,080,079.54
351,349.40
28
9
7
10
8
11
13
12
Less: Provision for loss of cash
Training Centre – Balangada
Training Center - Nillambe
Cash balance (district)
Cash balance (division)
Cash and bank balance
Cash balance (Head Office)
1,225,059,616.00
(181,155,092.00)
25,977,075.58
7,930,031.95
1,214,705,743.00
(181,155,092.00)
215,912,300.81
(416,319.68)
215,495,981.13
(12,631.92)
1,655,050.87
142,687,010.57
6,666,493.00
240,880,697.85
44
14
14
27
16
3,421,397,067.64
21,520,702,252.3
8
TOTAL ASSETS
119
1,319,212,406.25
538,805.50
34,282.59
101,578,533.22
10,848,482.07
562,129.40
66,938,671.89
(416,319.68)
4,979.25
6,000.00
634,592.14
138,556,542.32
359,642.00
37,767,522.00
33,907,107.53
1,033,550,651.00
1,244,668,628.00
24,924,374.11
1,677,500.00
1,432,774,639.03
66,522,352.21
177,329,277.71
19,715,200,818.03
NOTES
Equity and liabilities
Contribution from government
Contribution from lottery fund
Transfer of assets – Div.Secy. Balangoda
Contribution from Banking Finance,
SASANA, SAVANA Funds
Contribution from Banking Finance Div.
Contribution – ADB
51
2010
2009
RS .CTS.
RS .CTS.
14,337,198,797.64
21,706,291.20
1,900,000.00
11,101,198,797.64
21,706,291.20
1,900,000.00
331,251,010.90
12,587,376.38
149,655.00
331,251,010.90
12,587,376.38
149,655.00
14,704,793,131.12
11,468,793,131.12
11,468,793,131.12
Cumulative ownership
Surplus/ Deficit
Capital Reserves – Banks
Retained Profit – Banks
Non Current Liabilities
Funds
Retirement Gratuity Liabilities
Gratuity payment – Water Resources Board
Deposits – Banks
Concessionary loans – banks
Donation of library books - banks
Current Liabilities
Accrued Expenditure & Provisions
Creditors
Other Liabilities – Banks
General Deposits
Cash Payable
Tender Deposits & Bonds
Cash payable – Official A/c to Housing Fund
Navodaya Special Deposits
32
32
17
18
29
30
19
20
31
21
22
23
(18,195,253,907.03)
975,000,000.00
3,302,894,384.00
3,127,214,080.40
2,787,919,202.90
377,941.49
11,710,328,652.00
822,145,936.00
99,985.00
15
681,458,762.81
26,906,489.00
94,959,513.65
1,322,927,370.28
179,570.84
4,414,945.13
15
15
18,359,342.39
135,976,852.40
(13,917,359,523.03)
787,433,608.09
Retention Money ••
TOTAL EQUITY & LIABILITIES
12,532,474,588.00
99,985.00
11,742,778,395.00
-
2,285,182,846.50
605,096,840.88
14,502,746.00
41,347,734.00
105,983.00
1,301,899,505.73
36,790.84
538,805.50
4,838,353.94
65,660.00
871,557,880.09
132,265,180.51
2,972,255,480.49
5,915,511,224.79
21,520,702,252.38
120
(11,847,399,703.40)
(378,606,572.28)
2,898,016,311.31
2,480,379,262.02
377,941.49
10,824,548,783.00
918,229,612.00
-
Housing Lottery Contributions
General Deposits – Divisional
(15,730,186,264.40)
975,000,000.00
2,907,786,561.00
5,378,773,514.82
19,715,200,818.03
SAMURDHI AUTHORITY OF SRI LANKA – CASH FLOW STATEMENT FOR
ENDING 31ST DECEMBER, 2010
…
2010
2009
Rs cts
Rs cts
Operating Activities
Excess of Expenditure over income
(2,605,557,616.07)
(4,156,196,100.70)
156,336,131.88
140,489,973.44
307,539,940.88
(167,080.00)
111,386,169.51
3,727,967.75
374,985,650.24
2,816,994,110.08
2,828,372,972.46
395,107,823.00
2,907,786,561.00
1,210,743,283.21
2,070,063,220.26
2,405,146.94
3,155,793.07
(23,306,159.78)
(10,353,873.00)
(1,033,550,651.00)
896,593,168.00
(3,981,881.99)
104,095,893.24
538,805.50
(1,244,668,628.00)
(9,217,843.08)
(1,500,000.00)
$
(1,319,069,640.83)
-
34,282.59
(538,805.50)
(34,282.59)
(3,988,083.35)
(31,231,597.47)
(101,578,533.22)
(10,848,482.07)
210,780.00
17,611.17
(116,005.00)
(4,979.25)
6,000.00
76,361,921.93
(14,502,746.00)
(14,441,245.00)
(6,000.00)
599,200,222.40
(646,854.00)
41,347,734.00
94,853,530.65
95,800.00
Non monetary adjustments
Depreciation
Previous years adjustment
53
Provision for retirement gratuity
Profit from removal of fixed assets
Development Expenditure
Retained Profit –Bank
Operating surplus/ (deficit) before changes in
working capital
(Increase)/decrease stationery & trading stock
(Increase)/decrease of debtors
(Increase)/decrease loans receivable – banks
(Increase)/decrease in other assets – banks
(Increase)/decrease in advances
(Increase)/decrease in deposits
(Increase)/decrease in cash receivable
Cash receivable – to official A/c from A/c 2118
Cash receivable – Housing Development Lottery A/c
to official a/c
Cash receivable – to official A/c from stationary
fund
(Increase)/decrease in employee loan receivable
(Increase)/decrease in investment interest
receivables
(Increase)/decrease in insurance claim receivables
(Increase)/decrease in Balangoda Training Centre
(Increase)/decrease in Nillamba Training Centre
Increase/(decrease) in accrued expenditure
Creditors
Other Liabilities – Banks
Increase/(decrease) in general deposits
121
Increase/(decrease) in cash payable
21,027,864.55
1,054,800,261.88
142,780.00
(439,199.89)
Increase/(decrease) in tender deposits
(538,805.50)
$62,369,653.65
Cash payable from A/c 1350 to A/c 2118
Navodaya special deposits
Housing Lottery contribution
(423,408.81)
(1,077,864.96)
(65,660.00)
65,660.00
(853,198,537.70)
870,599,765.76
3,711,671.89
108,522,154.41
1,481,172,693.92
1,060,460,543.19
(258,658,766.11)
(175,128,115.41)
Divisional General Deposits
Increase/(decrease) in retention money
Net cash flow 01 from operational activities
Investment Activities
Acquisitions of fixed assets
Acquisitions of fixed assets – Banking Finance
(1,273,100.00)
167,080.00
Waiver of fixed assets
Investments
Investments – Banking Finance
Receipt of government grants – contribution – Samurdhi
Corps
Development Expenses
Net cash flow generated from investment activities – 02
(246,841,047.07)
(1,935,504,022.73)
(2,049,022,115.00)
3,236,000,000.00
(13,388,333,769.00)
1,882,000,000.00
-
(10,440.00)
(2,816,994,110.08)
(2,828,372,972.46)
(2,136,622,058.26)
(16,445,349,319.60)
229,197,769.09
2,897,696,311.31
Financing Activities
Funds
Funds (Banking Finance)
99,985.00
Deposits – Banks
885,779,869.00
11,799,548,783.00
Concessionary loans from Banks
(96,083,676.00)
918,229,612.00
1,018,993,947.09
15,615,474,706.31
363,544,582.75
244,256,970.35
230,585,929.90
13,671,040.45
607,801,553.10
244,256,970.35
Cash in transit balance
Cash & bank balance ( District Secretariat)
215,912,300.81
66,938,671.89
1,655,050.87
634,592.14
Cash & bank balance ( Divisional)
142,687,010.57
138,556,542.32
240,880,697.85
37,767,522.00
6,666,493.00
359,642.00
607,801,553.10
244,256,970.35
Net cash flows generated from financing activities 03
Net increase in cash & cash equivalence
Cash & cash equivalence at the beginning of the period
Cash & cash equivalence at the end of the period
Cash & cash equivalence at the end of the year
Cash & bank balance ( Head office)
Cash & bank balance ( Banking Finance)
122
SAMURDHI AUTHORITY OF SRI LANKA - INCOME AND EXPENDITURE A/C FOR
PERIOD ENDING 31ST DECEMBER, 2010
Notes
2010 Rs Cts
2009 Rs Cts
INCOME
Govt. Contribution (Recurrent)
7,989,361,000.00
7,028,947,960.55
Other
income
Receipts from Lottery Fund
Receipts from Banking Finance
48
-
1,960.00
Receipts from Samurdhi Fund
47
39,707,061.66
3,050.00
34,405,393.78
10,075.00
49
2,389,924.50
4,735,708.25
50
224,422,925.62
200,274,314.47
33
43
8,718,644.64
291,487.56
3,152,398.85
629,687.71
8,264,894,093.98
7,272,157,498.61
34
7,406,755,057.51
7,223,583,135.72
35
96,701,377.90
84,438,359.43
36
49,206,214.20
875,889,215.52
38
17,312,002.93
16,983,340.70
37
75,256,665.75
54,693,397.77
3,043,810,010.20
3,033,395,030.18
156,217,839.38
111,434,154.51
39
9,080,862.50
10,513,452.09
41
42
15,173,333.25
955,852.53
17,935,129.67
544,025.85
10,870,469,216.15
11,429,409,241.44
(2,605,575,122.17)
149,573.90
167,080.00
(4,157,251,742.83)
(1,055,642.13)
(2,605,557,616.07)
(2,605,557,616.07)
(15,730,186,264.40)
140,489,973.44
(4,156,196,100.70)
(4,156,196,100.70)
(11,577,718,131.45)
3,727,967.75
(15,589,696,290.96)
(18,195,253,907.03)
(11,573,990,163.70)
(15,730,186,264.40)
Receipts from Stationery Cyclic
Fund
Receipts from Housing Lottery Fund
Sundry income
Surplus of training center
Total income
Operational Expenditure
Staff cost
Traveling expenditure
Supplies
Maintenance expenses
Contracted services
Research
and
Development
Expenditure
Depreciation
45/ 46
Other Operational Expenditures
Banking Finance Div Expenditure
Nillamba Expenditure
Total Operating Cost
Surplus(deficit)
from operations
Financial Cost
Profit from sales of property, plant and equipment
Net surplus/(deficit) prior to extra ordinary items
Surplus/(Deficit) for the year
Surplus/(Deficit) for the previous year
Previous year’a adjustments
Surplus/(deficit) after the previous year’s
adjustment
Net surplus/(deficit)
40
52
123
NOTES FOR FINANCIAL STATEMENTS – PROPERTY, PLANT AND EQUIPMENT
Code no.
002121
002114
002101/ 002501
Description
Land
Construction Expenses
Motor Vehicles
Accounts
For the
Year 2010
Cost as at
01/01/2010
45,380,200.00
Disposals
in
2010
979,110.00
Provision
For
Depreciation
01.01.2010
Cost as at
31.12.2010
Depreciation
.for the
year 2010
46,359,310.00
-
2,945,848.49
2,945,848.49
2,467,283.65
76,925,937.50
76,925,937.50
76,925,937.50
6,548,741.75
6,767,804.01
100,686.15
11,773,777.07
10,492,184.90
718,755.71
3,669,667.66
3,263,366.00
132,398.26
9,160,087.59
8,412,621.12
542,602.16
42,213,455.49
38,113,790.99
2,501,895.50
165,460.00
165,460.00
52,381.63
52,381.63
-
Disposal
of provision
for
depreciation
2010
Provision for
Depreciation
31.12.2010
Net value
as at
31/12/2010
-
46,359,310.00
2,557,171.50
388,676.99
76,925,937.50
-
6,367,864.19
180,877.56
11,210,940.61
562,836.46
3,395,764.26
273,903.40
8,864,107.86
295,979.73
40,615,686.49
1,597,769.00
165,460.00
165,460.00
-
52,381.63
52,381.63
-
-
-
-
-
1,821,808.00
1,821,808.00
1,501,728.00
151,776.00
1,653,504.00
168,304.00
5,017,791.50
5,017,791.50
4,301,691.50
202,600.00
4,504,291.50
513,500.00
2,598,912.26
2,598,912.26
2,570,037.28
2,570,037.28
28,874.98
6,759,031.63
6,759,031.63
4,640,907.65
1,150,924.00
5,791,831.65
967,199.98
181,382.75
81,397.75
24,996.25
106,394.00
74,988.75
56,812.50
56,812.50
56,812.50
-
7,100,823.98
4,383,019.87
5,064,763.10
2,036,060.88
98,437.50
98,437.50
98,437.50
-
89,887.85
002102/ 002502/
002402
Furniture & Household Equipment
002103/ 002503
Machinery and advertising Equipment
002106/ 002506
Telephone and fittings
002104
002107/ 002507
002108
002109
002110
002111/ 132111
002105
002112
002113
002115
002631
002607
002632
002633
002637
Office Equipment
Welfare Equipment
Property•
Air-conditioners
Printing Machinery and Other Accessories
Computer Software
Media Equipment
Library Books
Typewriters(Banking Finance)
Computers(Banking Finance)
Postal Franking machines(Banking
finance)
Fireproof Cabinets(Banking Finance)
Minor Office Equipment(Banking
7,031,705.32
17,662.40
11,633,300.27
140,476.80
3,630,798.87
38,868.79
9,118,573.81
132,629.20
40,287,583.49
1,925,872.00
81,397.75
500,625.97
91,115.42
99,985.00
56,812.50
4,387,756.08
2,713,067.90
98,437.50
681,743.23
500,625.97
91,115.42
67,589,357.96
59,424.00
0.10
67,589,358.06
59,424.00
25,076,519.61
59,424.00
13,445,197.82
38,521,717.43
59,424.00
29,067,640.63
-
4,770.00
8,910.00
13,680.00
3,226.00
2,168.00
5,394.00
8,286.00
158,925.00
158,925.00
158,925.00
158,925.00
-
304,296.55
304,296.55
286,208.11
290,730.22
13,566.33
Finance)
002606
New Telephones(Banking Finance)
Wooden and /Steel Furniture(Banking
002638
Finance)
Furniture and Household Equipment
002602
(Banking Finance)
124
4,522.11
002603
002630
002604
002612
002403
092207
Machinery(Banking Finance)
Other Equipment(Banking Finance)
Office Equipment (Banking Finance)
Computer Software(Banking Finance)
Machinery and Equipment(Torrington)
Computer Network
Sub total 1
132004/ 002004-c
132005
002803
002304
002826
002825
002802/ 002552
9305-05
002302
002308
002307
002827
Construction of Bank Buildings
Improvement of bank buildings
Training Centre Equipment
Office Equipment
Training Centre Other Equipment
Kitchen Equipment
Training Centre Furniture
Other Equipment
Furniture for Head Quarters Manager
Buildings – Training Centres
185,538.00
185,538.00
185,538.00
185,538.00
5,305.00
5,305.00
5,305.00
5,305.00
-
5,249.96
5,249.96
5,250.00
5,250.00
(0.04)
285,700.00
285,700.00
285,700.00
285,700.00
-
-
-
-
5,005,132.18
5,005,132.18
4,996,507.15
8,625.00
297,062,276.05
195,357,464.72
19,758,778.04
591,741.39
-
-
5,005,132.15
0.03
214,524,501.37
82,537,774.68
291,597,435.25
6,056,582.19
120,706,126.68
149,596,945.0
9
270,303,071.77
55,577,877.80
54,060,554.36
109,638,432.16
160,664,639.61
198,739,341.20
65,368,234.92
264,107,576.12
82,724,136.32
52,821,515.22
135,545,651.54
128,561,924.58
94,593.00
94,593.00
94,593.00
-
94,593.00
591,741.39
-
22,952,158.95
7,748,739.21
30,700,898.16
20,727,547.49
2,356,235.37
23,083,782.86
7,617,115.30
2,651,320.55
359,860.00
3,011,180.55
1,392,038.47
386,932.36
1,778,970.83
1,232,209.72
784,578.50
784,578.50
784,578.50
-
1,761,899.00
959,970.87
190,558.57
1,150,529.44
611,369.56
606,838.01
121,367.60
121,367.60
242,735.20
364,102.81
30,816,554.05
20,132,836.06
4,397,768.72
24,530,604.78
6,285,949.27
327,058.00
327,058.00
327,058.00
-
784,578.50
1,563,429.75
198,469.25
606,838.01
30,507,546.05
309,008.00
327,058.00
4,259,172.60
7,342,462.60
2,202,893.15
1,544,245.65
3,747,138.80
3,595,323.80
5,867,837.20
3,083,290.00
5,867,837.20
2,987,064.01
295,406.11
3,282,470.12
2,585,367.08
5,334,345.24
5,334,345.24
5,225,889.77
5,225,889.77
108,455.47
Improvement of of Training Centres
002540
002541
002306
002001
002116
062102
062106
062104
062109
072102
Sports Equipment
Acquisition of Lands
Telephone Connections – Nillambe
Improvement of District Offices
Torrington buildings
Furniture –Mahasangam
Telephones – Mahasangm
Office Equipment – Mahasangam
Welfare Items
Furniture – Human Resources
-
-
-
-
-
215,000.00
215,000.00
-
-
215,000.00
26,771.00
26,771.00
26,771.00
26,771.00
-
1,390,500.00
11,390,500.00
-
-
11,390,500.00
-
-
-
-
769,468.50
5,164,057.45
3,704,612.01
652,044.09
4,356,656.10
807,401.35
1,439,208.00
1,238,218.00
159,234.00
1,397,452.00
41,756.00
23,464,127.83
10,944,499.19
4,104,436.17
15,048,935.36
8,415,192.47
-
-
124,650.00
1,767,093.00
-
10,000,000.00
4,394,588.95
1,439,208.00
18,432,554.83
5,031,573.00
-
-
-
1,767,093.00
1,767,093.00
1,642,443.00
125
072104
072109
072004
072321
072106
Samurdhi Bank Equipment
Welfare items– Human Resources
Improvement of Bank offices
Acquisition of Lands - Maha sangam.
Telephone Facilities –Maha sangam,
4,140,563.08
4,140,563.08
4,099,937.10
40,634.00
4,140,571.10
(8.02)
-
-
-
-
-
3,422,296.60
3,422,296.60
1,505,896.60
638,800.00
2,144,696.60
1,277,600.00
1,618,790.35
3,316,408.00
4,935,198.35
504,660.61
987,039.67
1,491,700.28
3,443,498.07
6,542,787.44
-
6,542,787.44
5,750,323.25
760,106.20
6,510,429.45
32,357.99
436,598.00
436,598.00
261,958.80
87,319.60
349,278.40
87,319.60
225,170.00
225,170.00
135,102.00
45,034.00
180,136.00
45,034.00
4,272,020.00
4,272,020.00
4,272,020.00
4,272,020.00
-
674,000.00
674,000.00
674,000.00
674,000.00
-
543,000.00
543,000.00
543,000.00
543,000.00
-
19,517,498.22
19,517,498.22
8,540,788.73
9,516,663.64
10,000,834.58
2,500,000.00
2,500,000.00
2,500,000.00
2,500,000.00
-
524,400.00
524,400.00
524,400.00
524,400.00
-
2,666,749.00
2,666,749.00
2,666,749.00
2,666,749.00
-
4,169,045.38
4,169,045.38
2,184,833.76
833,809.08
3,018,642.84
1,150,402.54
979,646.20
Telephone Connections – Samurdhi
082104
082106
092107
Banks
Telephone Connections
Computers - Monitoring & Evaluation
Dehydration Machines & Equipment
Cashew furnace
Buildings- Nillambe
Cool Rooms - Nillambe
Equipment - Nillambe
975,874.91
Laboratory Equipment - Nillambe
132104
132106
002902-3
002904-3
002903-3
002323
002324
002322
022209
Office Equipment – Samurdhi Banks
Telephone Connections – Samurdhi Banks
Furniture & Household Equipment – ADB
Office Equipment – ADB
Machinery & Media Equipment
Air conditioners
Division of construction offices
Agro eqpmt
Others
4,808,835.99
4,898,230.99
1,750,532.80
2,730,179.00
2,168,051.99
121,200.00
89,395.00
121,200.00
121,200.00
121,200.00
-
5,570.00
5,570.00
5,570.00
5,570.00
-
22,885.00
22,885.00
22,885.00
259,000.00
259,000.00
103,600.00
51,800.00
22,885.00
-
155,400.00
103,600.00
78,288.40
78,288.40
15,657.68
7,828.84
23,486.52
54,801.88
174,200.00
174,200.00
69,680.00
34,840.00
104,520.00
69,680.00
-
-
-
-
-
Impreovements ot bank bldgs
132005-…˜
062232
072001
072231
002326
(continuation)
Electricity and water connections
Repair of bank bldgs – Human Resources
Acquisition of land
New telephone connections
23,672,617.14
23,672,617.14
9,469,046.83
4,734,523.43
14,203,570.26
9,469,046.88
143,354.00
82,075.00
225,429.00
48,058.60
45,085.80
93,144.40
132,284.60
2,178,042.24
960,043.00
3,138,085.24
871,216.90
435,608.45
1,306,825.35
1,831,259.89
1,013,280.28
1,127,765.20
2,141,045.48
284,521.71
428,209.06
712,730.77
1,428,314.71
1,922,255.06
359,814.89
2,282,069.95
384,451.01
456,413.99
840,865.00
1,441,204.95
633,131.20
529,537.00
1,162,668.20
126,626.24
232,533.64
359,159.88
803,508.32
Electricity and water connections
132232
(Banking Finance)
126
Electricity and water connections –
002829
4,515,309.79
9305-5
062209
09304
Supplies – Balangoda
Others – Maha Sangam
Others – Nillamba
Water pumps – US aid
2327
6,875,065.38
225,765.49
343,753.27
569,518.76
6,305,546.62
2,359,755.59
Nillambe
-
-
-
5,687,741.46
-
5,687,741.46
1,137,548.29
1,137,548.29
2,275,096.58
3,412,644.88
39,750.00
-
39,750.00
6,500.00
6,500.00
13,000.00
26,750.00
7,010,361.12
214,547.82
7,224,908.94
1,402,072.22
1,444,981.79
2,847,054.01
4,377,854.93
12,590.00
12,590.00
2,518.00
2,518.00
10,072.00
2,546,831.50
2,546,831.50
127,341.58
127,341.58
2,419,489.92
8,127,266.44
48,996.67
406,363.32
455,359.99
7,671,906.45
-
787,790,418.67
261,071,993.53
136,459,061.34
397,531,054.87
390,259,363.80
826,785,670.00
7,147,332.95
252,602,183.9
2
258,658,766.1
1
591,741.39
1,084,852,694.72
456,429,458.25
156,217,839.38
591,741.39
612,055,556.24
472,797,138.80
119,962.50
-
119,962.50
71,977.50
23,992.50
-
95,970.00
23,992.50
826,905,632.50
258,658,766.1
1
1,084,972,657.22
456,501,435.75
156,241,831.88
591,741.39
612,151,526.24
472,821,130.94
Water connections
-
Construction of Samurdhi headquarters
2003
002828
buildings
Improvement of training centers
Sub total 2
Sub total 1 + sub total 2
2904-2
Office eqpmt – Stastionery Cyclic Fund
Grand Total
979,933.49
535,188,234.75
591,741.39
127
LP/B/SA/FA/2010
15 February 2012
The Director General
Report of the Auditor General on the Financial Statements of the Samurdhi Authority of Sri
Lanka for the year ended 31 December 2010 in terms of Section 14(2)(c) of the Finance Act,
No. 38 of 1971.
-----------------------------------------------------------------------------------------------------------The audit of Financial Statements of the Samurdhi Authority of Sri Lanka for the year ended
31 December 2010 was carried out under my direction in pursuance of provisions in Article
154(1) of the Constitution of the Democratic Socialist Republic of Sri Lanka read in
conjunction with Section 13 (1) of the Finance Act, No. 38 of 1971 and Section 17 (3) of the
Sarmudhi Authority of Sri Lanka Act, No. 30 of 1995. My comments and observations
which I consider should be published with the Annual Report of the Authority in terms of
Section 14(2)(c) of the Finance Act appear in this report. A detailed report in terms of
Section 13(7)(a) of the Finance Act was issued to the Director General of the Authority on
05 October 2011.
1:2
Responsibility of the Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with Generally Accepted Accounting Principles. This
responsibility includes: designing, implementing and maintaining internal control
relevant to the preparation and fair presentation of financial statements that are free
from material misstatements, whether due to fraud or error: selecting and applying
appropriate accounting policies; and making accounting estimates that are reasonable
in the circumstances.
1:3
Scope of Audit and Basis of Opinion
My responsibility is to express an opinion on these financial statements based on my
audit. Audit opinion, comments and findings in this report are based on review of the
financial statements presented to audit and substantive tests of samples of
transactions. The scope and extent of such review and tests were such as to enable as
wide an audit coverage as possible within the limitations of staff, other resources and
time available to me. The audit was carried out in accordance with Sri Lanka
Auditing Standards to obtain reasonable assurance as to whether the financial
statements are free from material misstatements. The audit includes the examination
on a test basis of evidence supporting the amounts and disclosures in financial
128
statements and assessment of accounting policies used and significant estimates made
by the management in the preparation of financial statements as well as evaluating
their overall presentation. I have obtained sufficient information and explanations
which to the best of my knowledge and belief were necessary for the purpose of my
audit. I therefore believe that my audit provides a reasonable basis for my opinion.
Sub - sections (3) and (4) of the Section 13 of the Finance Act No. 38 of 1971 give
discretionary powers to the Auditor General to determine the scope and extent of the
audit.
2.
Financial Statements
2:1
Delay in the Presentation of Accounts
According to paragraph 3 of the Public Finance Circular No. PF/PE/21 of 24 May
2002, the financial statements of a Public Corporation should be presented to the
Auditor General within 60 days after the close of the financial year. Nevertheless, the
financial statements of the Authority for the year under review had been presented for
audit only on 20 September 2011.
2:2
Opinion
So far as appears from my examination and to the best of information and according
to the explanations given to me, I am of opinion that the Samurdhi Authority of Sri
Lanka had maintained proper accounting records for the year ended 31 December
2010 and except for the effects on the financial statements of the matters referred to in
paragraph 2:3 of this report, the financial statements have been prepared in
accordance with Generally Accepted Accounting Principles and give a true and fair
view of the state of affairs of the Samurdhi Authority of Sri Lanka as at 31 December
2010 and the financial results of its operation and cash flows for the year then ended.
2:3
Comments on Financial Statements
2:3:1 Accounting Deficiencies
The following observations are made.
(a)
In accounting for the Government grants received by the Authority, recurrent
expenditure as well had been shown in the balance sheet as development
expenditure.
129
(b)
A sum of Rs.71,505 spent on printing expenses had been brought to account
twice in the Bank Finance Division accounts as well as in Finance Division
accounts.
(c)
The excess of stock valued at Rs.322,540 revealed at the verification of stocks
of the Stationery Revolving Fund during the year under review had been
brought to account as prior year adjustments.
(d)
Provision of Rs.4,463,237 for the year under review had not been made for 48
officers of the Batticaloa District. Understatements amounting to Rs.480,715
in 36 instances and overstatements amounting to Rs.52,195 in 03 instance had
been shown in the financial statements due to the failure to compute the
provision in accordance with circular instructions.
(e)
Interest on employees’ housing loans amounting to Rs.34,881,997 received in
the year under review had been credited to the Housing Loans Account instead
of being credited to the relevant Interest Account. As such the interest income
for the year under review and the Housing Loans Account had been
understated by that amount.
(f)
In the estimation of the provision made for the minimum price of investment
made in the shares of a Private Bank from the books, the Investments in
Shares Account had been erroneously adjusted while the premium price of
shares had been adjusted to Investments Account for disclosing the shares at a
nominal price. As such the Investments in Shares Account had been
understated by a sum of Rs.25,007,346 as at the end of the year.
(g)
Housing loans interest received for prior years amounting to Rs.2,145,095 had
been brought to account as interest income for the year under review, thus
overstating the profit of the Bank Finance Division by that amount.
(h)
Audit fees amounting to Rs.541,615 paid in respect of the year 2008 had been
brought to account under the Audit Fees Account for the year under review,
thus overstating the deficit for the year by that amount.
(i)
The excess of stock valued at Rs.1,543,197 identified at the year end stock
verification had been brought to account as an income for the year without
carrying out a reconciliation. In addition, appropriate adjustments had not been
made for the obsolete and unusable stocks of stationery valued at
Rs.1,527,900.
130
(j)
The gratuity received for the employees of the Water Resources Board
attached to service with the Authority had been separately shown in the
accounts of the Authority. Out of those, 10 employees had left the services of
the Authority and obtained their gratuities. Nevertheless, the relevant
adjustments had not been made for the provision of gratuity amounting to
Rs.313,770 made in connection with those officers.
(k)
The loss of Rs.416,320 caused by the robbery of the salaries of the Samurdhi
Officers attached to Divisional Secretariat Dehiowita while being transported
in the year 2003, had been shown in the accounts as cash in transit since the
year 2007.
(l)
The interest receivable for the year under review on the employees’ loan
amounting amounting to Rs.983,460,556 granted by the Bank Finance
Division had not been computed and brought to account.
(m)
An adequate sum of money had not been invested for the payment of the
employees’ gratuity liabilities provision of Rs.2,787.9 million made as at the
end of the year under review.
(n)
Revenue expenditure and repair expenses amounting to Rs.33,841,728
incurred during the year under review had been brought to account as fixed
assets.
2:3:2 Unreconciled Control Accounts
(a)
The following discrepancies were observed between the balances appearing in
the General Ledger and the balances appearing in the schedules relating
thereto.
Item
-----Employees’
Bicycle Loans
Employees’
Housing Loans
Jana Pubudu Loans
Gratuity Paid
Salary Advances
General Ledger
Balance
--------------------Rs.
109,621,707
Total of the
Schedule
-----------------Rs.
109,620,352
--------------Rs.
1,355
551,808,445
504,030,293
47,778,152
16,931
289,970
273,039
8,306,207
8,385,051
78,844
20,067
52,817
32,750
131
Difference
(b)
Discrepancies existed between the balances appearing in the Expenditure
Ledger and the Ledger Accounts relating to the expenditure incurred in the
year under review. A test check revealed that in 27 instances the amounts
shown in the accounts of the General Ledger had been more than the balances
appearing in the Expenditure Ledger by a sum of Rs.8,432,904 and less by
Rs.24,620,029 in 20 instances.
2:3:3 Accounts Receivable and Payable
(a)
Six suspense debtors balances totalling Rs.4,802,805 brought forward over a
long period had been shown in the financial statements without being settled.
(b)
Out of the security deposited in two State Banks on the Pilot Programme on
Fast Loans which remains dormant over several years, a sum of Rs.808,023
had not been recovered even by the end of the year under review.
(c)
A sum of Rs.517,304 appearing in the accounts of the Bank Finance Division
from the year 2007 as advances granted to the Accounts Division had not been
settled even during the year under review.
(d)
The outstanding loan balances of 07 Loan Accounts on which no recoveries
whatsoever had been made from the officers’ salaries in the year 2010
amounted to Rs.426,804.
(e)
According to the Ledger Account, it was observed that no recoveries
whatsoever had been made in the year under review from the balance of
Rs.45,901,645 in the Staff Loans Receivable Account.
(f)
The loan balances receivable to the Samurdhi Fund from the Marketing,
Fisheries and Animal Husbandry, Agricultural and Industrial Divisions and the
Bhagya Newspaper as at the end of the year under review amounted to
Rs.21,405,748 and the balance existed over a number of years. It was further
observed in audit that there is an uncertainty over the recovery of most of the
balances.
The value of cheques and Money Orders deposited in the Samurdhi Fund from
the year 2003 up to the end of the year under review and remaining unrealized
amounted to Rs. 88,000. Action had not been taken even up to June 2011 to
settle these balances.
(g)
132
(h)
Adequate courses of action had not been taken for the recovery of 47 overdue
loan balances amounting to Rs.3,422,467 out of the motor cycle loans granted
to employees by the Bank Finance Division.
(i)
The Authority had failed to make any recoveries whatsoever during the year
under review from 04 loan balances totalling Rs.181,155,092.
2:3:4 Lack of Evidence for Audit
The documentary evidence indicated against the following items of account had not
been furnished to audit.
Item
------(a) Employees’
Loans
Consumer
Value
Evidence not made available
----------------------------------------Rs.
322,030,405 Detailed Schedules
(b) Income and Expenditure
of Nillamba Samurdhi
Training Centre
---
Correctly prepared Accounts
(c) Expenditure
on
the
Construction of Samurdhi
Bank Buildings
25,240,000 A Register of Samurdhi
Banks
supplied
with
provisions.
(d) Travelling Bags issued to
Offices
5,852,616 Confirmations from officers
issued with 6,334 Travelling
Bags
(e) Spiritual
and
Social
Development Programme
of Gampaha District
40,000,000 Manner
provision
approval.
(f)
29,815,208 27 Payment vouchers and
supporting documents.
Expenditure
(g) Purchase of 2,000
shoulderbags for
“Dolosmahe Piritha”.
of
and
obtaining
Treasury
1,500,000 The approval of the Board of
Directors for the activity,
proper
receipt
in
acknowledgement
of
payment, Goods Received
Note.
133
(h)
The payment vouchers and the supported documents required for the audit of
expenditure amounting to Rs.78,971,742 included in the Income and
Expenditure Account of the Bank Finance Division had not been furnished to
audit.
(i)
The expenditure on the salaries of the officers of the Bank Finance Division
for December 2010 had increased by a sum of Rs.50 million. The salary paid
to those officers in December 2010 amounted to Rs.71,656,789 and the
corresponding payment in December 2009 amounted to Rs.19,686,581 and as
such the increase amounted to 264 per cent. The particulars of officers who
were paid the additional salaries, the amounts paid and the paid vouchers or
any other acceptable evidence had not been furnished to audit.
2:3:5 Non – compliance with Laws, Rules, Regulations and Management Decisions
Instances of non – compliance with the following laws, rules, regulations, etc. were
observed during the course of audit.
Reference to Laws, Rules,
Regulations, etc.
------------------------------------
Non - compliance
(a)
Samurdhi Authority of Sri
Lanka Act, No. 30 of 1995
Sections 5 (f) and 20 (1)
Even though action should be taken in
collaboration with the National
Lotteries Board for conducting
lotteries to raise money for the
implementation of the Samurdhi
Programme, the Lotteries Fund
established for the purpose had not
conducted any lotteries in the past 08
years.
(b)
Establishments Code
--------------------------(i) Chapter XII Section 23
(ii)
Chapter
23:18
XII
-----------------------
Three officers had proceeded abroad
without obtaining approval before
leaving the Island.
Section
134
Even though a Report on leave spent
out of the Island should be furnished
monthly to the Auditor General by the
Head of the institution concerned, it
had not been done so.
(c)
Section 7:4:5 of the Public
Enterprises
Circular
No.
PED/12 of 02 June 2003 and
Financial Regulation 756
(i)
Annual surveys of
vehicles
had
not
conducted.
motor
been
(ii)
A proper Register of
Assets containing the
assets at the beginning
year and the transactions
the year had not
Fixed
fixed
of the
during
been
maintained
manner.
(d)
in
the
updated
Circulars of the Samurdhi
Authority of Sri Lanka
----------------------------------(i)
Circular No. 2009/05 of
06 December 2008
* Paragraphs 1(V) and
(VI)
Even though each Samurdhi Society /
Balakaya
should
maintain
all
documents relation to the contracts
executed 17 Samurdhi Balakayas /
Societies of 02 Divisional Secretariat
Divisions had not taken action
according to the instructions.
* Paragraph (a) (IV)
Execution of contracts with the direct
intervention of Samurdhi Officers is
prohibited and action in terms of
Financial Regulation 703 should be
taken
against
such
officers.
Nevertheless, action had not been
taken to initiate disciplinary action
against an officer attached to the
Samurdhi Bank Sangam, Panadura
who had acted in contravention of the
instructions.
135
(ii)
Circular No. 2010/01 of
15 December 2009
Paragraph No. 10
All
livelihood
development
programmes
scheduled
for
implementation in the year 2010
should have been commenced by 30
April 2010.
Nevertheless, the equipment and
money
required
for
the
commencement of even one of the 544
projects of 02 Divisional Secretariat
Divisions had not been released even
up to October 2010.
(iii)
(e)
Circular letter No. 13 of
10 November 2004
Paragraphs 5:3 and 8:3
Decisions of the Board of
Directors
------------------------------------(i)
No. 177 of 03 March
2009
Eight instances of failure to obtain
insurance cover of motor cycles issued
to Samurdhi Officers in the name of
the Authority were observed.
The balances of Compulsory Savings
Accounts of which beneficiaries had
not been identified should be remitted
to the Treasury for crediting the State
Revenue. Nevertheless, unidentified
savings amounting to Rs.134,947,961
had been used for expenses of the
Authority without approval instead of
being remitted to the Treasury.
(ii)
No. 204 of 06 April
2010
136
Even though the prior approval of the
Board of Directors should be obtained
for the Training Programmes on the
Management
and
Attitudes
Development, such approval had not
been obtained for the Training
Programmes conducted in 03 districts
at a cost of Rs.2,376,150.
(f)
Provisions of the Constitution
of
Social
Development
Foundation
------------------------------------*
Utilization of Funds
*
Responsibilities –
Treasurer
*
Meetings
(i)
Even though report on the
activities of the Fund should be
submitted to the Authority in
every 06 months these provisions
had not been complied with in
respect Social Development
Funds
of
03
Divisional
Secretariats.
(ii)
Out of the income of each year
80 per cent should be spent in the
respective
year
itself
in
accordance with the objectives
and purposes of the Fund.
Nevertheless, certain Social
Development Foundations of 07
districts had not taken action in
compliance
with
this
requirement.
Even though the Treasurer should
maintain proper accounting records of
the
Foundation,
the
Social
Development Foundations of 07
districts had not maintained proper
accounting records.
Even though the Foundations should
meet at least once every month, 03
Social Development Foundations
inspected had not held meetings in the
year under review. None of the
Minutes of the meetings held by one
Social
Development
Foundation
during several years had not been
furnished to audit.
137
*
Collection and
Accounting of Funds
The District Secretaries should recover
a sum of Rs.2,500 from each
Divisional Secretariat for the materials
supplied in connection with the Anti
Drug and Smoke Week and remit to
the Authority. Nevertheless, a sum of
Rs.440,000 receivable from 176
Divisional Secretariats for the year
2010 had not been received even up to
July 2011.
*
Audit
Even though the accounts of the
Foundation
should
be
audited
annually, there was no evidence that
the accounts of any of the Social
Development Foundations for the year
2010 had been audited.
(g)
Constitution of the Samurdhi
Societies – Section No. 10:1
Even though the Treasurer of a Society
should be in charge of the activities
relating to cash of the Society, cash for
all the infrastructure facilities projects
of one Divisional Secretariat Division
had been obtained by the Chairman
and the Samurdhi Development
Officer in charge of the Division. It
was also observed that 05 Bank
Sangam had breached the Bank
policies by handing over the cash of
the Societies to the Samurdhi
Development Officer in charge of the
Division.
2:3:6 Transactions of Contentious Nature
The following matters were observed.
(a)
(i)
The former Director General had taken action without the approval
of the Board of Directors, at his own discretion and full personal
guarantee, and facilitated an overdraft of Rs.2 million to a private
company from a private Bank and that company had defaulted the
payment of the overdraft. The Authority had to pay a sum of Rs.2
million to the Bank on a Court Order. The Authority had not taken any
action even by June 2011 to recover that amount from the company
concerned.
138
(ii)
In consequence of the failure to take action on the settlement of the
loan in concurrence with the proposals presented by the Bank, a sum of
Rs.5,260,465 out of the money remitted to a Current Account of the
Authority as compulsory savings deposits of Samurdhi beneficiaries
had been impounded on a Court Order until the settlement of the
amount payable to the Authority. In view of the negligence on the part
of the officers of the Bank, the opportunity of earning an interest
income from investing a sum of Rs.5.2 million had been lost for 433
days and it was observed in audit the benefits accruing to the deposits
of the beneficiaries had also been lost.
(iii)
The Authority had not taken to initiate disciplinary action against the
officers who act in a manner causing losses to the Authority.
(b)
A balance of Rs.52,308,000 remaining after making remittances to the districts
from a sum of Rs.900 million received from the Government for fuel subsidy
on three wheeler motor vehicles and the balances refunded by the districts
after making payments to the owners of three wheelers amounting to
Rs.137,977,172 both totalling Rs.190,285,172 had been utilized for the
expenses of the Authority without requisite approval.
(c)
Even though all the stocks of stationery in the Salusala store at Jawatta taken
on rent for storing Bank Stationery had removed from that store by 31 August
2010, the rent deposit of Rs.1,500,000 made on the lease of the store had not
been recovered even up to June 2011.
(d)
Even though an agreement had been entered into with a Samurdhi Society in
the Division in connection with 07 infrastructure facilities development
projects in 06 Divisions in the area of the Panadura Divisional Secretariat, the
sum of Rs.2,692,800 relating thereto had been paid to the accounts of Rural
Samurdhi Balakaya / Gam Pubudu of the related Divisions instead of paying
to the respective Societies.
(e)
The Authority had paid a sum of Rs.1,300,000 for the building constructed in
the premises of the District Secretariat, Kurunegala for storing stationery and
had accounted for that under fixed assets. It was observed in audit that the
Authority had not acquired the ownership of the building.
(f)
A sum of Rs.5,627,295 had been paid to a newspaper company for printing
and distribution of 300,000 copies of Vesak Volume of the Budusarana
newspaper without obtaining the approval Board of Directors. The newspaper
had been distributed 04 days after the Vesak Day. Even though 10,320 copies
had been under - distributed, payment had been made for that as well.
139
2:3:7 Apparent Irregularities
(a)
Two Samurdhi Development Officers attached to the Devinuwara Samurdi
Bank Sanagam had obtained a loan of Rs.30,000 in the name of a member and
misappropriated the money. Action had not been taken for the recovery of the
loan and interest and disciplinary action had not been taken against the two
officers for the misconduct.
(b)
(i)
A Samurdhi Development Officer of the Panadura Divisional
Secretariat area had defrauded the loan installments paid by the
Samurdhi beneficiaries of the Division without being handed over to
the Bank Sangam and the relevant money had been paid back after 07
months. Action had not been taken even up to the end of the year under
review for the recovery of the sum of Rs.19,400 recoverable as 40 per
cent penalty for not handing over the loan installments collected to the
Bank Sangam in accordance with the Banking procedures of the
Authority in operation and for taking disciplinary action against the
officer.
(ii)
Action had not been taken for the recovery of the penalty amounting to
Rs.17,821 recoverable for the delay in handing over the loan
installments of beneficiaries amounting to Rs.16,300 to the Bank by a
Samurdhi Development Officer of the area of Panadura Divisional
Secretariat and to take disciplinary action against the officer.
2:3:8 Deficiencies in the Maintenance of Fund Accounts
The following observation are made.
(a)
Social Development Fund
The Authority had failed to obtain the particulars of balances as at the end of
the year under review of the Social Development Funds in the 141 areas of
Divisional Secretariats even by the end of June 2011.
(b)
(i)
A sum of Rs.10 per mensum had been recovered from the Samurdhi
Subsidy paid to the Samurdhi beneficiaries for the construction of
1,236 houses per annum up to April 2007 and a minimum of 1,200
houses per annum from May 2007 and the prizes for those years had
been drawn in October 2011 after a long delay.
140
(ii)
According to the Regulations of the Lotteries Fund, all administrative
functions should be under the control of a seven member Board of
Trustees and the Board had met only once in the year 2010. It was
observed in audit that delays in the lottery draws and the delays in
arriving at decisions on the activities of the Fund had been due to the
failure of the Board to function as specified.
(iii)
In view of the inefficiency in the updating of the deficiencies in data
that had occurred in every instances of lottery draws and the inordinate
delays in the award of prizes to the prize winners, had resulted in about
06 per cent to 11 per cent of the prize winners being deprived of the
opportunity of getting their prizes. It was observed in audit that such
number in respect of the lottery prizes for the year 2008 drawn in the
year under review had been 10 per cent. The Director General
informed that it was due to the failure to update the data relating to
beneficiaries proceeding abroad, shifting to new locations, etc.
(iv)
According to Regulation 21 of the Fund, the prizes should be awarded
to the winners within 03 months. Even though the winners had been
drawn by July 2011 and the prizes not awarded up to date amounted to
Rs.267.8 million.
3.
Financial and Operating Review
3:1
Financial Review
3:1:1 Financial Results
According to the accounts presented, the operations of the Samurdhi Authority of Sri
Lanka for the year ended 31 December 2010 had resulted in a deficit of
Rs.2,605,557,616 as compared with the corresponding deficit of Rs.4,156,196,101 for
the preceding year thus indicating an improvement of Rs.1,550,638,485 over the
preceding year. This had been due to the increase of income of the year by 14 per cent
and the decrease of 5 per cent in the overall expenditure. The major effect on the
increase in the income had been the 14 per cent increase in the Government
contribution and the decrease of 5 per cent in the overall expenditure for the year
under review as compared with the preceding year had been due mainly to the 94 per
cent decrease in the expenditure on supplies while the decrease of 15 per cent in the
expenditure of Bank Finance Division was also notable. Nevertheless, the cost of staff
for the year under review represented 68 per cent of the overall operating expenditure
and represented 90 per cent of the total income.
141
3:2
Operating Review
3:2:1 Management Inefficiencies
(a)
Stocks of stationery valued at Rs.228,033 had been destroyed due to the
disorganized state of the stationery store. Proper arrangements had not been
made to prevent such position.
(b)
The provision made for the programmes planned for implementation during
the year under review under 08 Divisions of the Authority amounted to
Rs.3,260 million and the amount spent amounted to Rs.2,838.76 million or 87
per cent of the provision due to delays in the receipt of imprests.
(c)
Out of the 204,710 project units planned for the year 2010 by 10 Development
Divisions of the Authority, 129,840 project units or 63 per cent only had been
implemented.
(d)
Even though provision of Rs.165.3 million had been made for 2,049
programmes expected to be implemented by 05 Divisions of the Authority,
those projects had not been implemented in the year under review.
(e)
The Human Resources Division had spent a sum of Rs.2.178 million on
building contract works which had not been planned for the year under review.
(f)
Funds not utilized for Expected Objectives
(i)
The Samurdhi Lottery Fund which was in existence from the year 2001
had a balance of Rs.51,259,056 as at the end of the year under review
and the Fund had not carried out any of the activities relating to its
objectives.
(ii)
The sum of Rs.1,976,990 recovered as one day’s salary from all
salaried offices of the Authority without the approval of the Board of
Directors for a programme called “Social Service for Strengthening
Broken Arms” aimed at resettlement of the displaced persons in the
North and East had not been used for the intended objective even up to
the end of the year under review.
142
(iii)
The balance of the Bank Sangam Promotion and Publicity Fund
established for carrying out the Promotional Programmes and Publicity
work of the Bank Sangam, as at the end of the year under review
amounted to Rs.10,162,000 and that had not been used for the intended
objectives. This Fund had not done any work since the year 2009 other
than spending a sum of Rs.40,000 on a newspaper called “Janajaya
Surakimu” and Rs.168,000 on an advertisement published in the
Budusarana newspaper contrary to the objectives of the Fund.
(iv)
Money collected through the sale of Samurdhi flags, cash donations
from donors and money collected through other creative programmes
for the Fund of the Social Development Foundation established for
assisting the persons rendered destitute under different social
disadvantages should be used for the activities related to the objectives
within the respective Divisions. Nevertheless, a balance of
Rs.58,757,802 of 177 areas of Divisional Secretariats as at the end of
the year under review had been idling without being used for the
respective objectives.
(g)
No return whatsoever had been received for the sum of Rs.86,579,226
invested by the Authority in four institutions, since the investment up to 31
December 2010.
(h)
The insurance indemnity amounting to Rs.340,849 for 12 accidents to motor
vehicles receivable over a number of years had not been recovered even up to
May 2011.
(i)
Action had not been taken even up to the end of the year under review to
recover the sum of Rs.38,797 relating to 08 cheques dishonoured out of
cheques received by the Samurdhi Fund from the year 2004 to 2006.
(j)
Out of the self – employment, jana pubudu, development of new families and
housing loans granted to the beneficiaries in the areas of the Panadura and
Bandaragama Divisional Secretariats a sum of Rs.2,176,913 had been
identified as a bad debt balance. An adequate course of action had been taken
for the recovery of the money.
(k)
Action had not been taken to obtain the cash reimbursements amounting to
Rs.1,095,540 relating to 4,919 cash stamps of Samurdhi beneficiaries of 18
Bank Sangam while a sum of Rs.1,701,005 obtained as reimbursement of the
value of cash stamps of the Samurdhi beneficiaries of 04 Bank Sangam had
not been credited to the accounts of the beneficiaries.
143
(l)
A test check of Samurdhi Bank Sangam revealed that a sum of Rs.3,370,014
which should have been credited to the savings accounts of Samurdhi
beneficiaries of 09 Bank Sangam had not been credited.
(m)
According to the Action Plan a sum of Rs.1.5 million had been allocated for
the conduct of 06 courses on Regional Samurdhi Communication Workshops.
Nevertheless, no action had been taken to conduct at least one workshops in
the year under review.
3:2:2 Personnel Management
(a)
Implementation of Disciplinary Procedures
(i)
Two Samurdhi Development Officers who worked in the area of
Panadura Divisional Secretariat who had not reported for duty
anywhere during a period of 05 months from 01 February 2010 to 30
June 2010 had been paid salaries amounting to Rs.199,450 for that
period by the Authority.
(ii)
(b)
Work on 14 disciplinary actions on irregular activities of employees
had been entrusted to a Disciplinary Inquiry Officer at one and the
same time and action had not been taken to obtain the inquiry reports
as specified.
Recruitment of Officers for Posts in the Staff Grades
(i)
Even though a sum of Rs.560,783 had been spent on the preliminary
work on the recruitment of officers for 25 vacant posts in the Staff
Grades of the Authority, no recruitments had been made in the year
2010 and as such the expenditure incurred had become fruitless.
(ii)
The approval of the Department of Management Services had not been
obtained prior to taking action in the year under review for recruitment
of officers to 07 posts in the Staff Grades.
3:2:3 Excesses on Provisions
144
(a)
It was observed that expenditure totalling Rs.71,831,413 had been incurred
without budgetary provision in 20 instances in the year under review.
(b)
Expenditure had been recommended and payments made without due
consideration for the fact that the provisions made for expenditure had been
exhausted. As such, it was observed at audit test checks that expenditure
exceeding the provision by a sum of Rs.196,317,805 had been incurred in 13
instances.
3:2:4 Contract Administration
(a)
Expenditure amounting to Rs.110,594,869 had been incurred on the
construction and repair of buildings on lands for which the Authority did not
possess the titles.
(b)
Sum totalling Rs.661,560 had been paid to the contractors for items of work
not done in connection with the payments made for 15 infrastructure facilities
projects in the areas of the Panadura and Bandaragama Divisional Secretariats.
(c)
The estimates for the building of the Mirigama Samurdhi Maha Sangam had
been prepared without an adequate examination of the physical layout of the
land resulting in submitting revised estimates. The contractor had been
selected without following the Procurement Procedure and the construction
work had been delayed by about one year.
(d)
A sum of Rs.1,319,625 had been spent in the year 2006 for the construction of
the building for the Samurdhi Maha Sangam of the Gangawata Korale, Kandy
District and the construction work had been totally abandoned.
3:2:5 Project Management
(a)
Out of the loans granted by the Samurdhi Banks to the farmers for the Agri
Chillie Cultivation Project implemented in the Anuradhapura District, the
defaulted payments amounted to Rs.3,528,503. The Company which imported
these seeds had agreed to pay that amount in installments. The balance
remaining after deducting the money retained by selling the seeds by the Bank
amounted to Rs.1,069,818. Out of that amount a sum of Rs.500,000 only had
been recovered by June 2011.
145
(b)
Failed Projects
Project
----------
Expenditure Audit Observation
Incurred
--------------- -----------------------Rs.
383,152 Not
constructed
according to proper
standards. Not being
used for any purpose
and left to dilapidate.
(i)
Construction of the
Common Well 14G
Andagala
Kanda
Division Mirigama
(ii)
Construction
of
Community
Hall
Borukgamuwa Division
138,595 Not being used as the
work has not been
completed.
(iii)
Construction of Bridge
over Wal Ara Ela,
Rambukkana, Deliwala
402,209 Work on the project
had
not
been
completed.
(iv)
Purchase of a Hand
Tractor
for
the
Alubomulla Niwdawa
Division
505,500 The expected benefits
from the Project had
not been achieved.
(v)
Construction of an Ice
Plant and Common
Facilities Centre in the
Beruwala Payagala area.
3,175,505 Failed to acquire the
land for the Authority
as expected, to secure
the management to the
Beruwala
Samurdhi
Maha Sangam and to
provide
employment
and benefits to the
Samurdhi beneficiaries.
Follow up on the
project had not been
taken and the expected
objectives of the project
had not been achieved.
146
3:2:6 Uneconomic Transactions
(a)
Even though a land belonging to the Urban Development Authority had been
taken on lease in the year 2003 at a cost of Rs.37,560,000 for the construction
of a Secretariat for the Authority the buildings had not been constructed even
up to the year 2010. As the lease agreement entered into with the Urban
Development Authority had expired, a fresh agreement had been entered into
on 22 January 2010 at a cost of Rs.346,383. The office of the Authority had
been maintained in the Sethsiripaya premises and it was observed that a sum
of Rs.62,751,299 had been paid as the rent for the year 2010. The Director
General informed that it was due to the non – receipt of the approval of the
Cabinet of Ministers.
(b)
The venue of the Samurdhi Wiskam Park Trade Exhibition 2010 scheduled to
be held free of charge at the Sri Lanka Exhibition and Conventions Centre in
collaboration with the Java World Conference had been suddenly changed to
the Open Air Theatre premises at Nugegoda and as such the Authority had to
incur additional expenditure amounting to Rs.1,577,245 in connection with the
construction of trade stalls, electricity and media activities.
3:2:7 Transactions not Supported by Adequate Authority
In addition to the monthly supply of 200 litres of fuel to the motor vehicles attached to
the Offices of the District Samurdhi Assistant Commissioners a sum of Rs.238,272
had been spent in the year under review for fuel by the Dompe Divisional Secretariat
area without the approval of the Board of Directors.
3:2:8 Irregular Transactions
(a) Purchase of a Server for Supply of Internet Facilities to the Bank Finance Division
A Server used for obtaining Internet facilities had been purchased at a cost of
Rs.1,003,070 for the supply of Internet facilities to the Bank Finance Division of
the Authority with the intention of obtaining information by linking the computers
issued to the Bank Sangam spread throughout the Island to the computer network
without a properly prepared and approved Project Report. The following
observations are made in this connection.
147
(i) Contrary to the provisions of the Government Procurement Guidelines, the
Finance Director had appointed the Technical Evaluation Committee. A
Procurement Timetable had not been prepared and implemented. The contract
agreement had been signed 03 months after placing the order. According to
the agreement the goods should be supplied within one month from the date of
placing the order while the goods had been supplied even after 06 months. The
Authority had not considered those matters in making the payment.
(ii) Even though the Server for obtaining Internet facilities had been purchased as
an urgent matter, the Authority had failed to use it in a manner to achieve the
objectives up to June 2011.
3:2:9 Idle and Underutilized Assets
Three computers purchased in June 2010 at a cost of Rs.441,930 by the Bank Sangam
at Kindelpitiya, Raigama and Alubomulla remained idling without being used.
4.
Systems and Controls
Deficiencies in systems and controls observed during the course of audit were brought
to the notice of the Director General from time to time. Special attention of the
Authority is needed in respect of the following areas of control.
(a)
(b)
(c)
(d)
(e)
Accounting
Budgetary Control
Personnel Management
Control of Stocks of Stationery
Staff Loans Management
(f)
(g)
(h)
(i)
Fixed Assets
Cash in Transit
Fund Accounts
Contract Administration
H.A.S. Samaraweera
Auditor General.
148
Auditor General,
Dept of the Auditor General,
Colombo – 07.
AUDITOR GENERAL’S REPORT IN TERMS OF SECTION 14(2) C OF THE
FINANCE ACT NO 38 OF 1971, ON THE FINANCIAL STATEMENTS OF THE
SAMURDHI AUTHORITY OF SRI LANKA FOR THE YEAR ENDING 31ST
DECEMBER 2010,
Submitted below is the reply to the above report sent under query no LP/B/SA/FA/2010
2.3.1
Accounting lapses
(a)
While this Authority implemented the Accelerated Infra Structure Facilities
Development Programme as a major programme under the 2010 Jathika Saviya
Village Development Programme, a sum of rupees million 1647 had been
approved for this programme in the annual working plan of the development
estimate of rupees million 3260. Through the circular, instructions had been
issued to allocate 1.25% of the approved funds of the project as administrative
costs, and to set apart 0.25 for District Secretariats, 0.5 for Divisional
Secretariats and 0.5 for the institution implementing these projects, to get this
project implemented without delay and to settle the recurrent expenditure
affecting the success of these projects Accordingly, expenditure related to the
monitoring of an operational development project had been shown in the
income and expenditure account of the year as a direct cost
(b)
As the Financial Division has been reimbursed its printing costs as well as other
costs of the Banking Finance Division, please note that it has not been
accounted twice.
(c)
Only the stocks available in the Head Office Stores are shown as stocks of the
stationery cyclic fund. When stocks are issued, the cost of such stock is
deducted from the stock value and accounted as money receivable from the
district. As the real value of the verified stocks of the Hambantota and Nuwara
Eliya Districts have to be entered in the books, and as the money receivable
from the Districts is increasing, this accounting is correct.
(d)
Data is obtained from the various Districts for the setting apart of gratuities and
the relevant Districts have been notified to submit data after rectifying the errors
pointed out. Based on the data submitted, action will be taken to rectify in the
year 2011.
(e)
A computer programme was developed and implemented from May 2009 for
the regularization of the accounts of the staff housing loan unit. No manual
entries about loan recoveries had been made in the relevant ledgers in the year
2010, and even though data was entered in the computer programme, due to a
fault in the computer programme, it was not possible to separate the interest and
installments during the stipulated periods. Adjustments for the year have been
made and the housing loan interest account has been rectified.
149
(f)
8,250,000 Pan Asia Bank shares had been purchased for Rs.119,625,000/-. As
at the date of purchase there was a sum of Rs.2/= due as further invitations for
shares, the reduced amount has been accounted in the share investment account,
due to the sum of Rs. 20,625,000/- being set off from profits under the
minimum price account.
(g)
Since May 2009, a computer software was introduced for the staff housing loan
unit, and due to a fault in this programme, it has not been possible to separate
the installments and interest for the last six months of the year 2009. As such, as
the loan interest for the latter period of the year 2009 had been adjusted in the
year 2010, this had been accounted as a receipt for that year.
(h)
The relevant rectifications have been made through a journal entry.
(i)
Action has been taken to include the physical stocks in the stock cost. Relevant
rectification has been done. In accordance with board decision of 2011.06.21,
stocks of unserviceable and obsolete stationery have been returned to the paper
company. As these have to be shown in the accounts until such time the stocks
are removed, this stock has been shown in the books.
(j)
In the course of the Torrington plant nursery being vested in the Samurdhi
Authority of Sri Lanka, the Water Resources Board from time to time paid by
cheque gratuities due to the attached employees. Out of this gratuity, amounts
relating to three officers who have by now retired have been removed from this
account, and the balance amount is the money allocated to officers who are
presently serving.
(k)
This money, shown as transit cash in accounts since the year 2003 in respect of
a robbery of salaries at the Dehiowita Divisional Secretariat, is being recorded
in the accounts as money recoverable until it is recovered. Also, action has been
taken to inquire into the present position of the judgments.
(l)
As the interest recoverable at the end of the year in respect of staff loans granted
by the Banking Finance Division has not been calculated and accounted so far,
action has been taken to calculate the interest in future on the accrued accounts
concept.
150
(m)
Admitted. Even though a sum of rupees million 2787.9 has been allocated for
gratuity liabilities, as the Treasury does not give imprests in respect of the
investment of allocated liabilities, no investment has taken place. Only the
relevant allocations have been entered in the books. When employees leave
service, imprests are obtained from the Treasury from allocations made in the
annual estimates and payments made.
(n)
The sum of Rs. 33,841,728 being repair and revenue expenditure and the
relevant provision for depreciation accounted for as fixed assets has been
adjusted and rectified through journal entries.
2.3.2
Unadjusted control accounts
(a)
By now, the relevant adjustments have been made and rectifications done.
(b)
By now, the relevant adjustments have been made and rectifications done.
2.3.3
Accounts receivable and payable
(a)
Three debtor balances have been settled. An interview with the Auditor General
has been sought to obtain advice regarding three unsettled debtor balances.
(b)
Out of the sum of Rs. 2,705,000/- given by Bank of Ceylon and Peoples Bank
branches under the Instant Credit Pilot Risk Fund, a sum of Rs. 1,988,767.27
has been recovered by now. This Instant Credit Pilot Programme was launched
in 50 Secretarial Divisions, and a sum of Rs. 716,232.73 has to be recovered
further from l6 Secretarial Divisions. As such, action has been taken to take
disciplinary action against officers who have defaulted payments.
(c)
A sum of Rs. 517,304/- had been deducted for value added taxes and payments
made twice, in respect of payments made by the Banking Finance Division for
the printing of loose ledger leaves out of Asian Development Bank funds in the
year 2007. Action has been taken to get this extra payment reimbursed from the
Ministry of Finance.
(d)
The total amount has been recovered from the gratuity of one officer, and
recoveries are being made from the sureties of five officers.
151
(e)
As only one official account has been used by this Authority for the payment of
distress loans, recoveries are also being made through the same single account.
However, when payments of distress loans were being made, accounting has
been made in an account in respect of all officers than Samurdhi Development
Officers, and in a separate account in respect of Samurdhi Development
Officers. It is stated that action has been taken to show under one account
called the Employees Distress Loans Account distress loans of all officers of the
institution, as recoveries are also being made to one account.
(f)
Out of the 50% recoverable from the project allocations of the Marketing,
Fisheries, Animal Husbandry and Agricultural Divisions, these installments are
being updated and are regularly being remitted to us by the Divisional
Secretariats and Samurdhi banks, and as at September 2011, a sum of Rs.
13,47,652.25 had been recovered.
(g)
Out of the unrealized cheques, a sum of Rs.26,000/= has already been settled,
and action has been taken to settle the balance money.
Lack of evidence for audit
2.3.4
(a)
Measures have been taken to rectify the detailed schedules in respect of
Employees Consumer Loans.
(b)
Accounting is done by the Head Office under the joint financial statement after
obtaining the monthly income and expenditure returns.
(c)
The schedule has been prepared of banking unions which had made provisions
for the construction of Samurdhi Banking buildings.
(d)
Travelling bags had been issued to District Secretariats to be handed over to a
staff amounting to 24,000. Receipt and Issue Registers issued to District
Secretariats are available in the Head Office, and details of issues made by the
District Secretariats to Divisional Secretariats are available in District
Secretariats. Documents showing items issued by the Divisional Secretariats
and signatures acknowledging receipt are available in Divisional Secretariats.
(e)
The expenditure has been set off against provisions made to the Social
Development Division, in terms of approval given at the Board of Directors
meeting no. 196 held on 2009.12.08.
152
(f)
Most of the vouchers pointed out are related to the payment of salaries, and all
vouchers have been filed and are available in the Finance Division.
(g)
This has received the approval of the Board of Directors as an activity of the
working plan. The order has been awarded to the supplier who had submitted
the lowest bid, with the approval of the District Procurement Committee,
Anuradhapura. The Assistant Commissioner of Samurdhi, Anuradhapura has
reported that 2000 knapsacks had been purchased and payments made
accordingly.
(h)
The basic documents and schedules in respect of the expenditure pointed out are
annexed to the payment vouchers. Further details required are available in the
file and could be produced for audit.
(i)
Government (Treasury) contribution was rupees million 7089 and the
contribution of the Banking Finance Division was rupees million 251, in the
recurrent expenditure estimate for the year 2010. The sum of rupees million 50
pointed out was an amount received from the recurrent contribution of the
Banking Finance Division.
2.3.5
(c)
Non compliance with laws, rules, regulations and management
decisions
(a)
The balance of this fund, which is not operational due to the non functioning of
the Lottery Fund for the past eight years, has been utilized for the Diriya Piyasa
Housing Programme with the approval of the Board of Directors.
(b)
(i)
Establishment Code
Measures have been taken to treat the period for which the two officers had
not reported for duty as no pay leave, and they have been severely
reprimanded. Vacation of post notice has been served on the other female
officer.
(ii)
Five days leave has been approved to attend the SAARC summit. The relevant
officer had been advised that the head of the department should be briefed by
him on his return to Sri Lanka from abroad. The other officer had not proceeded
abroad, even though he had been approved two years leave..
(i)
It is admitted that annual boards of survey had not been conducted in respect of
vehicles. However, the relevant officers had been advised that in future a
vehicle survey should be held at the end of each year and to maintain the
relevant notes.
153
(d)
(e)
(f) *
(ii)
It is admitted that a register of fixed assets had not been maintained in respect
of vehicles. However, a register about the general fixed assets of the Authority
is being maintained. This register contains all details about vehicles. However,
the relevant officers had been advised that a separate register of fixed assets in
respect of vehicles should be maintained separately.
(i)
Measures have been taken to advise Samurdhi societies through the Samurdhi
Managers and Samurdhi Development Officers to rectify the short comings in
accordance with the relevant circular instructions. It has been reported by now
that even the files have been rectified.
(ii)
Approval had been given to the Panadura Divisional Secretariat on 30th July
2010, and to the Bandaragama Divisional Secretariat on 07th July 2010 to
commence these projects. Thereafter, a further period of time had lapsed for the
operation of the tender procedure, and the Panadara Divisional Secretariat had
taken action on 29/09/2010 to procure the items, and by 30/12/2010, both
Divisional Secretariats had taken action to release the implements and the items.
(i)
The sum of Rs 113,595,299/- being unidentified compulsory savings had been
remitted to the General Treasury, and approval has been sought to set off
subsequent amounts received against the amount to be reimbursed in the
Samurdhi Fund.
(ii)
Approval for this has been obtained in terms of board paper no. 2010/61 of 06th
April 2010.
(i)
Necessary instructions have been issued in this regard, and action taken to
obtain the reports in a proper manner.
(ii)
Necessary instructions have been issued to formulate the working plan in terms
of the balance amount of the foundation from the year 2011, to submit same to
the Social Development Division for approval and to implement the
programmes. Accordingly, this would be rectified in the future.
*
Action has been taken to advise all Divisional Secretaries in this regard and to
make the necessary rectifications in the future.
Action has been taken to advise in this regard and to make the necessary
rectifications, and also a future constitutional amendment has been provided for.
Instructions have been issued that all social development foundations should be
audited by the Internal Audit Officers of the various Districts. Accordingly, this
is being rectified in the future.
*
*
Action is being taken to issue letters to all those who had not paid Rs 2්500/- in
that behalf and to recover the money. By now, payments are being received by
all Divisional Secretariats. This would be rectified in the future.
154
*
It has been planned to issue instructions that all social development foundations
should be audited by the Internal Audit Officers of the various Districts and to
organize matters to make rectifications.
(g)
The relevant error has been rectified by now. The financial control of Samurdhi
Society brigades have been vested in the officials of the relevant societies, and
the responsibility of supervising such matters has been empowered on Samurdhi
Managers and Samurdhi Development Officers, in terms of circular
instructions.
Necessary instructions have been given to prevent recurrences of such errors.
2.3.6
Controversial transactions
(a)
(i)
Pan Asia Bank took legal action regarding the non settlement of a sum of
rupees two million obtained from Pan Asia Bank by Sigiri Samurdhi Private
Company, a share holder of the Samurdhi Authority of Sri Lanka. In
accordance with the court order, a sum of rupees two million had to be paid by
the Authority, and this payment was made with the approval of the board of
directors. Action will be taken to recover these two million rupees, failing
which legal action would be taken on the advice of the Attorney General.
(b)
The sum of rupees 52,308,000 million has been remitted to the General
Treasury, and Treasury approval has been sought to set off monies obtained
from the Samurdhi Fund on the basis of reimbursing the balance amounts
returned from the monies released.
(c)
Even though written requests had been made from time to time for the refund of
the rent deposit made to the Salu Sala, this institution has replied that the
amount would be paid on receipt of provisions from the Treasury.
(d)
Signing of the agreements related to projects had been done by the Samurdhi
societies, and cheques pertaining to all payments had been drawn in the name
of the relevant Samurdhi societies. When cheques were being deposited in
commercial banks, the words Samurdhi Brigade/Gam Pubudu Accounts had
been endorsed by error. Accordingly, as pointed out the money of Samurdhi
Banking Unions had been credited to the Samurdhi Brigade/Gam Pubudu
Accounts maintained by banking unions as mentioned earlier.
Necessary instructions have been issued to managers of Samurdhi banking
unions/bank staff/field staff to prevent recurrences of the relevant omission.
(e)
Such constructions being built utilizing funds of the Samurdhi Authority for the
use of the Authority are assets of the institution, and as such, the accounting is
correct. This cannot be written off as expenditure as it is not public property.
155
(f)
Please note that the payment of the sum of Rs. 5,627,295/- to a newspaper
company had been made under the annual plan for 2010 approved by the board
of directors.
Wesak full moon day fell on the 27th of May, and in accordance with circular
instructions, programmes organized at District level and Samurdhi banking
union level were put into effect on the 27th of May. By that date, newspapers
had been distributed, and we have not received any reports to the effect that
newspapers had to be distributed after the Wesak day.
10,050 newspapers made available at District Secretariat level have been
included in the number of newspapers shown as undistributed newspapers in
schedule no 2 of the above audit query.
2.3.7
Obvious irregularities
An internal audit is ongoing, and future action will be taken once this report is
received.
2.38
(a)
Accounts of funds
(a)
A series of instructions in this regard was sent again. Accordingly, by now this
is in the process of being rectified.
(c)
(i)
On 25th September, 2010, the housing lottery draw was held for 2000
beneficiaries at the Dompe Divisional Secretariat area, Gampaha in respect of
the years
2007 and 2008, and by now all payments have been finalized.
Further, the lottery draw for the years 2009 and 2010 was held at Weligama,
Matara on l7th October 2011 for 2400 houses.
(ii)
It is stated that the trustee boards meets as and when there is a requirement.
(iii)
The data base could not be updated correctly due to the inability to submit
information regarding beneficiaries going abroad, leaving the area etc during
the period of updating data. However, by now (year 2011) as the wasam
numbers of all beneficiaries have been obtained, no discrepancy in the data base
could occur.
(iv)
These delays take place as this payment has to be made after obtaining
confidential reports about the winning beneficiaries, and as authority has to be
obtained after following up as beneficiaries who own houses request that this
prize money be given for some other purpose.
156
3.2.1
Management inefficiencies
(a)
A stock of stationery packed at ground level was destroyed due to damage
caused to the constructed stores by previous year’s floods.
Some project activities could not be carried out fast as provisions were received
(b)
on three occasions on a staggered basis from the General Treasury under the
voted interim estimates, and due to the delay in releasing funds to Divisional
offices because sufficient imprests for development expenditure were received
towards the end of the year.
The Development Plan targeted to implement 204,710 anticipated programmes
(c)
for the year 2010. Even though the estimated provision for these was rupees
million. 6204.12, due to the fact that provisions made under the voted interim
estimates on a staggered basis was a sum of rupees million 3260, the possibility
of achieving the anticipated target was not available.
Even though the action plan was formulated relevant to the programmes, due to
(d)
the limited provisions received, demands of the beneficiary requirements in the
field, the prevailing weather conditions at that time and the shortage of inputs, it
is stated that certain variations took place in achieving the relevant targets in
accordance with the action plan.
(e)
(i)
As the targeted functions were not being carried out, the balance lying to the
credit of the Samurdhi Lottery Fund was made available to the districts for the
construction of houses for low income earners and disadvantaged groups in the
community, being a targeted function of this fund, as this had been approved by
the board of directors.
(ii)
Money made up of a day’s pay voluntarily donated by the officers of the
Authority had been utilized on behalf of 19 displaced families in the Vavuniya
area for the construction of houses, with the approval of the board of directors.
(iii)
This fund bears the expenditure incurred for advertising pertaining to the
promotion of Samurdhi banking unions
(iv)
This constitution has identified criteria for which expenditure could be incurred
from money accumulating to the Social Development Foundation.The
Divisional Secretary will take into consideration requests which have been
submitted, and will bear expenditure within the relevant criteria, and until then,
funds lie as balances in the accounts.
157
By now action has been taken to sell the shares bought from Pan Asia Bank in
(f)
accordance with the procurement procedure. Out of the money invested in Sigiri
Furniture Company, a sum of rupees one million has been recovered, and legal
action has been taken to recover the balance two million rupees.
Discussions have been held with another shareholder of the Galgamuwa Export
Company for the purchase of its shares.
Action has been taken to obtain a fresh cheque in lieu of this dishonoured
(g)
cheque.
According to our records also, it has been observed that out of the loans given
(h)
by the Samurdhi banks in the Panadura and Bandaragama Secretarial Divisions,
Rs.2,176,913/- are bad debts. From time to time progress review meetings of
these banking unions had been held in this regard, and Divisional Secretaries
and Bank Managers have been advised to take action to minimize bad debts.
Please note that action will be taken to rectify matters after personally
(i)
inspecting about the sum of Rs. 1,095,540/- not credited to the accounts of the
beneficiaries in respect of the cash coupons of l8 Samurdhi banking unions in
the Mirigama, Panadura and Bandaragama Secretarial Divisions, and that
disciplinary action would be taken against the relevant officers responsible.
Please note that the non crediting of the compulsory savings of beneficiaries of
(j)
nine identified banking unions in the Panadara and Bandaragama Secretarial
Divisions would be inquired into, that its progress would be notified and that
disciplinary action would be taken against the relevant officers responsible.
3.2.2
(a)
Implementation of disciplinary procedure
(i)
Vide Panadara Divisional Secretary’s letter no.PN/DS/01/40 of 2010/02/10,
two Samurdhi Development Officers, who at that time were working attached
to the Wadduwa Samurdhi zone, had been attached to the Panadura Divisional
Secretariat, and by letter dated 30/06/2010 it has been notified that they had
once again being attached to the Wadduwa Samurdhi zone.
(ii)
During the years 2005 and 2006, a pool of disciplinary officers had not been
established in the Authority, and disciplinary inquiries had been held by two or
three inquiring officers. Out of these, one inquiring officer had been allocated
158
more cases due to the experience acquired in the field of Samurdhi banking. As
a large number of cases had been allocated to this officer and taking into
consideration the delay of his inquiries, no inquiries have been given to him
since the year 2007. Taking into consideration the delay in the inquiries due to
this inquiring officer falling seriously ill, his appointment had been cancelled,
action taken to get back the inquiry files, and as the originals of the relevant
evidence pertaining to the cancelled inquiries had been taken over by the courts,
action would be taken after the judgment of the court.
(b)
Interviews had been held in the year 2010 to recruit officers for staff posts
fallen vacant in the Samurdhi .
Even though approval had been given by the board of directors at meeting nos
217 and 208 to recruit for vacant posts in the Samurdhi Authority of Sri Lanka,
there was a delay in the recruitment of officers as the Secretary to the Ministry
had not given his approval for same.
3.2.3
Exceeding of provisions
(a)
Provisions were received on two occasions under the interim voted estimates for
this year, and the balance provisions were revoked on the stipulated date. Please
note that even though payments were recorded pending receipt of provisions
again, all expenditure has been covered under the revised provisions and that
the approval of the board of directors had been received in that behalf.
(b)
Please note that provisions were given on two occasions under the interim voted
estimates and on three occasions under voted budget estimates during the latter
part of the year. In addition to the contributions from the Treasury, a sum of
rupees million 7340 had been spent along with the contribution of the Banking
Finance Division, being the total recurrent estimate. Provisions in respect of
votes which were insufficient have been revised with the approval of the board
of directors.
3.2.4
Contract administration
(b)
Bandaragama
Action has been taken to install four name boards.
159
Panadura
The Divisional Secretary has been advised to rectify the errors in the 11 projects
pointed out and to get same implemented through village societies.
A land belonging to the Divisional Secretary has been vested in the Samurdhi
(c)
Authority for the construction of the Samurdhi maha sangam building,
Mirigama.
In addition to the original estimate, a revised estimate has been prepared due to
the short comings in the preparation of the estimate for the construction of this
building. By now, a sum of Rs. 2,050,370/- has been spent for this building, and
it could be put into use after attending to the existing shortcomings (electricity,
water, sanitary facilities and access road).
Explanations have been called for from the relevant officers for awarding this
contract for the construction of this building to the Mirigama Multi Purpose
Cooperative Society, deviating from the procurement procedure.
3.2.5
Project management
(a)
Out of the sum of rupees million 3.5 which have become bad debts consequent
to Samurdhi banking unions providing around rupees million 5.1 for this chillie
cultivation, by now a sum of rupees million 19.3 has been recovered. By now,
out of the rupees seventeen hundred thousand due from the relevant company, a
sum of rupees one hundred thousand has been remitted to the Samurdhi
Authority, and out of the rupees eighteen hundred thousand relating to the
chillie seeds purchased by the famers, a sum of rupees nine hundred thousand
three hundred has been credited to account no. 5048 opened in the Samurdhi
banking union, Anuradhapura. Accordingly, out of the balance rupees million
15.7 due to be recovered further, action has been taken to recover rupees fifteen
hundred thousand seven hundred from the field, and the balance rupees eight
hundred thousand seven hundred from the company.
(b)
Failed projects
(i)
It has been pointed out that the well had been constructed under phase 1, and
that the follow up action on the well had been stopped as it had been disclosed
during the survey that the relevant land comes under constructions relevant to
the proposed Colombo Kandy Express Way.
160
(ii)
It has been notified that work on this community hall had been finalized in
accordance with the estimates, that by now requests had been made for desks,
chairs etc from the allocations of the local Members of Parliament, and further
that action would be taken to make use of this community hall no sooner than
these items are received.
(iii)
The relevant officers have been issued with charge sheets on 28/02/2011 and
29/04/2011 regarding the failure of this project. On 06/06/2011, a board of
inquiry had been appointed and by now inquires are in their final stage.
With the aim of restoring this project and finalizing the constructions, inquiries
have been made from the District Secretary to obtain a feasibility report from
the District/Irrigation Engineer regarding the parts constructed, and to
recommence construction after estimates are prepared.
(iv)
This was a project proposal submitted with the concurrence of the Jana Sabha
of the Niwudawa wasama, and action had been taken to obtain a hand tractor for
the cultivation of fallow lands.
Even though this hand tractor was given to 25 beneficiaries through the
Niwudawa society to cultivate fallow lands, as the intended cultivation could
not be done, later on 11/10/2011 it had been vested in the Samurdhi maha
sangamaya.
Since 2011.08.08 this hand tractor has been given to a person through the
Samurdhi maha sangamaya at a monthly hire of Rs. 8,500/-, and through this
by now fallow paddy fields in the Niwudawa wasama are being ploughed,
monthly instalments being received and the project running smoothly.
(v)
According to the project report of this project, the Divisional Secretary has
pointed out that the land where the ice factory had been installed is a crown
land. Later, after being advised to commence the project, it had been pointed
out that it was not a crown land, but a private land under the name of the
Dheewara Shakthi Padanama.
Subsequently, the Ministry advised that this land be vested in the Samurdhi
Authority of Sri Lanka. Accordingly, by letter dated 12/08/2011, Divisional
Secretary, Beruwala has informed the Samurdhi Authority that as instructed by
the Ministry, this proposed land is required for the development of the
Payagala fisheries weekly fair and that no ice production takes place there.
161
Uneconomical transactions
3.2.6
(a)
Construction could not be carried out as the necessary approval was not
received, even though several cabinet memoranda were submitted for the
construction of the main building.
(b)
Even though this exhibition was planned to be held free at the Sri Lanka
Exhibition and Convention Center on the 19th, 20th and 21st November, 2010
concurrent to the Java World Summit, on the special instructions of the Minister
in charge, this exhibition had to be held in Nugegoda to coincide with the
inauguration of H.E. the President. Even though additional expenditure had to
be borne due to the sudden change of location, and having to organize matters
at very short notice, I must state that it had been within the limits of the total
approved estimate in this behalf.
3.2.7
Transactions unsupported by sufficient authority
An allocation of 200 liters of fuel had been given to vehicles provided to district
Samurdhi offices for the convenience of Samurdhi duties to enable them to
attend to district Samurdhi duties with ease. Officers from other district offices
also took part in duties connected with the Model Village Samurdhi
Programme, Dompe electorate in the year 2010. For this purpose, Samurdhi
vehicles had to be run for several days, and due to this, additional fuel had to be
issued from time to time.
Irregular transactions
3.2.8
(i)
The Director General had given approval for the appointment of a technical
committee for this purpose, and letters of appointment had been signed by the
Director (finance). As this had been requested for very urgently, and as it had
been planned fast, no procurement time table had been set up. There were
delays in the signing of the agreement when this agreement was sent to the
Legal Division for scrutiny, and when officers due to sign delayed the fixing of
dates. When the supply was delayed, it had been notified in writing, and the
supplier had submitted in writing that this equipment had to be imported and
that delay in the import of same was the cause of delay in supplies, and this
situation had been brought to the notice of the procurement committee.
(ii)
106 banking unions which by now have been computerized are connected to
this Server computer and data exchanged. Action is being taken to computerize
all banking unions in the future and connect same this computer.
R. P. B. THILAKASIRI
DIRECTOR GENERAL
162
04TH FLOOR,
“SETHSIRIPAYA”
BATTARAMULLA
EMAIL
FAX NO
TELEPHONE
:
:
:
[email protected]
011 – 2889046
011 - 32872202
MINISTRY OF ECONOMIC DEVELOPMENT
163

Samurdhi Authority of Sri Lanka for the year 2010

Transcription

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