Funds Flow, Accounting, and Audit in India | Asian Development Bank

Funds Flow, Accounting, and Audit in India

Institutional Document | January 2014

This paper provides a handy guide to project officers processing and implementing sovereign projects in India, in the areas of funds flow, accounting, audit, and related matters.

This is intended as a quick reference guide to those processing and implementing projects in India. While the Government of India acts as the borrower or recipient for ADB loans and grants, the executing and implementing agencies receive funds through complex onlending arrangements involving transfer of interest rate and foreign exchange risk, and even different pricing and repayment terms. The need is emphasized to follow the budget mechanism of the central and state governments to ensure that funds flow smoothly and are subject to the effective fiduciary oversight of the government's internal control systems and the external audit by the comptroller and auditor general of India.


  • Abstract
  • Introduction and Scope
  • The Key Players
  • Important Concepts
  • Onlending Arrangements
  • Audit Arrangements
  • Foreign Exchange and Interest Rate Risks
  • Funds Flow Arrangements