Finance Division Established in order to conduct good Financial Management system. This system consist of keeping records, accounts and prepare financial statement in a format acceptable by the World Bank (The operations, resources and expenditure relating to this Programme shall be recorded in accordance with sound accounting practices by the NEHRP).

Accounting Standards:

The preparation and presentation of Financial Statements for the year ended 31 December 2006 are in accordance with the Sri Lanka Accounting Standards Act No. 15 of 1995 and in conformity with Generally Accepted Accounting Standards.

Accounting System:

Separate set of books are maintained for the Project and also to comply in terms of the National Budget. The transactions and events are then presented in suitable Financial Statements to meet the donor requirements.Books of Accounts are kept on a cash basis. Consequently the Financial Statements are prepared under cash based accounting system.

Currency:

Financial Statements are prepared in Sri Lanka Rupees

Depreciation:

No depreciation is provided in the accounts.

Foreign Currency Translation:

Foreign Currency Translations are accounted for at the rate of exchange prevalent on the date of the transaction.

Gain or Loss on Exchange:

Gain or Loss on the operation of the Special United States Dollar Account, maintained with the Central Bank of Ceylon, is calculated at the rate of exchange prevalent on the last business day of the month.

Financial Management:

The Project adopts the current Financial Regulations and Establishment Code of the Government of Sri Lanka. These are supplemented by the IDA Guidelines governing donor-funded projects.

Financial Monitoring Reports:

Financial Monitoring Reports are prepared and submitted on a quarterly basis during the Financial Year.