Composition of SHM & SHS

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National Rural Health Mission: Institutional Setup at State level

State Health Mission and State Health Society

At the State level, the Mission would function under the overall guidance of the State Health Mission headed by the Chief Minister of the State. The functions under the Mission would be carried out through the State Health & Family Welfare Society. The structures of the Mission and Society and their linkages are mentioned in the following paragraphs.

State Health Mission

Composition
Chairperson	:	Chief Minister
Co-Chairperson	:	Minister of Health and Family Welfare, State Government
Convener	:	Principal Secretary/Secretary (Family Welfare)
Members	:	Ministers in charge of Departments relevant to NHM such as AYUSH, Women and Child Development, Medical Education, Public Health Engineering, Water and Sanitation, Panchayati Raj, Rural Development, Social Welfare, Urban Development, Planning, Finance, etc. Nominated public representatives (5 to 10 members) such as MPs, MLAs, Chairmen, Zila Parishad, urban local bodies (women should be adequately represented) Official representatives: Chief Secretary/Development Commissioners and Principal Secretaries/Secretaries in-charge of relevant departments such as Women and Child Development, Public Health Engineering, Panchayati Raj, Rural Development, Tribal Welfare, Urban Development/Affairs, Finance, Planning and Representative, MoHFW, GoI, Director (Health Services)/Director (AYUSH). Nominated non-official members (5 to 8 members) such as health experts, representatives of medical associations, NGOs, etc Representatives of Development Partners
Frequency of Meetings	:	At least once in every six months
Ordinary Business	:	Providing health system oversight, consideration of policy matters related with health sector (including determinants of good health), review of progress in implementation of NHM; inter-sectoral coordination, advocacy measures required to promote NHM visibility.

State Health Society

A. Governing Body
	Chairperson	:	Chief Secretary/Development Commissioner
	Co-Chair	:	Development Commissioner
	Vice-Chair	:	Principal/Secretary (Health & Family Welfare)
	Convener	:	Officer designated as Mission Director of State Health Mission
	Members	:	Secretaries of the NHM related Departments: Health & FW, Finance, AYUSH, Women and Child Development, Public Health Engineering, Water and Sanitation, Panchayati Raj, Rural Development, Tribal/SC Welfare, Urban Affairs and Planning and Programme Implementation. DHS, Director AYUSH GoI representative(s): MoHFW nominee. Representatives of Development Partners supporting the NHM in the State Nominated non-official members: Four to six members (Public Health Professionals, MNGO representatives/ representatives of Medical Associations) Regional Directors
Frequency of Meetings		:	At least once in every six month
Ordinary Business of the Governing Body Meeting		:	Approval / endorsement of Annual State Action Plan for the NHM. Consideration of proposals for institutional reforms in the H&FW sector. Review of implementation of the Annual Action Plan. Inter-sectoral co-ordination: all NHM related sectors and beyond (e.g. administrative reforms across the State). Status of follow up action on decisions of the State Health Mission. Co-ordination with NGOs/Donors/other agencies/organisations.

B. Executive Committee
	Chairperson	:	Principal Secretary/Secretary, FW
	Co-Chair (s)	:	Principal Secretary/Secretary, Health/FW (in case of separate secretaries in the State)
	Vice-Chair	:	Director, Health & FW
	Convener	:	Executive Director/Mission Director (To be an IAS Officer of JAG/Selection Grade)
	Joint Secretaries	:	State Programme Managers/Project Directors of National Disease Control Programme
	Members	:	Director, AYUSH Secretaries / technical officers from NHM related sectors Executive Secretary, State AIDS Control Society [ for the States which decide not to merge it with State Health & FW Society]. MoHFW, GoI representative. Regional Directors
Frequency of Meetings		:	At least once in every month
Ordinary Business		:	Detailed expenditure and implementation review. Approval of proposals from districts and other implementing agencies/District Action Plans. Execution of the approved State Action Plan, including release of funds for programmes at State level as per Annual Action Plan. Release of funds to the District Health Societies. Finalization of working arrangements for intra-sectoral and inter-sectoral co-ordination. Follow up action on decisions of the Governing Body.

C. Programme Committee for Health & FW Sector
The Executive Committee would ensure execution of integrated NHM State Action Plan. However, for administrative convenience, the State may constitute Programme Committees for the National Programmes for a more focused planning and review of each activity. Suggested constitution of the Committee is as below:
Chairperson	:	Director
Member-Secretary	:	Concerned State Programme Manager
Members	:	Finance Manager (SPMSU), 2-3 related State Programme Managers and Consultants

D. State Programme Management Support Unit (SPMSU)
The SPMSU will act as the secretariat to the State Health Mission as well as the State Society. Headed by an Executive Director/Mission Director, the SPMSU will have experts in the areas of human resources, BCC, M&E and other technical areas, recruited from the open market. The SPMSU will provide the technical support to the State Health Mission through its pool of skilled professionals like MBA, CA, MIS Specialist and Consultants for RCH and other National Disease Control Programmes. This technical pool would be accessed by all programmes under NHM for providing specific programme support related to logistics, financial management, MIS, tracking of funds etc.
After sanction of State Action Plan by the Governing Body of State Health Society and of District Plans by the Executive Committee, funds could be released through joint signatures of two authorized signatories (viz. State Program Manager/DHS and Secretary (HFW/Mission Director). The actual release of funds could either be made by the concerned Programme Management Unit with a copy of the sanction letter to the SPMSU, or vice-a-versa as per the decided State model. However, the responsibility of financial management, including tracking of funds, preparation of Utilization Certificates and audit of the Society, shall be overseen by the SPMSU.

D. State Programme Management Support Unit (SPMSU)

The SPMSU will act as the secretariat to the State Health Mission as well as the State Society. Headed by an Executive Director/Mission Director, the SPMSU will have experts in the areas of human resources, BCC, M&E and other technical areas, recruited from the open market. The SPMSU will provide the technical support to the State Health Mission through its pool of skilled professionals like MBA, CA, MIS Specialist and Consultants for RCH and other National Disease Control Programmes. This technical pool would be accessed by all programmes under NHM for providing specific programme support related to logistics, financial management, MIS, tracking of funds etc.

After sanction of State Action Plan by the Governing Body of State Health Society and of District Plans by the Executive Committee, funds could be released through joint signatures of two authorized signatories (viz. State Program Manager/DHS and Secretary (HFW/Mission Director). The actual release of funds could either be made by the concerned Programme Management Unit with a copy of the sanction letter to the SPMSU, or vice-a-versa as per the decided State model. However, the responsibility of financial management, including tracking of funds, preparation of Utilization Certificates and audit of the Society, shall be overseen by the SPMSU.

E. Composite Organogram of the State Mission and the State Society
The State Mission and the State Society are inter-linked in terms of a common secretariat as depicted below:

E. Composite Organogram of the State Mission and the State Society

The State Mission and the State Society are inter-linked in terms of a common secretariat as depicted below:

F. Process of merger of existing societies
After the State Society has been registered, a meeting of the Governing Body of existing State societies in the health and family welfare sector has to be convened to adopt the following resolution:
	Resolved that the .. (name of the society) be dissolved with immediate effect and that all assets and liabilities of the said society shall stand transferred to the .. (name of the State Health Society).
A signed copy of the above resolution has to be then filed with the Registrar of Societies to complete the process of merger.

Appendices to facilitate creation and functioning of State Society

Model Memorandum of Association (Appendix-I)

(Model) MEMORANDUM OF ASSOCIATION
of
(State name) HEALTH SOCIETY

Name of the Society

The Name of the Society shall be State Health Society, (State name) hereinafter referred to as the Society.

Area of operation

The area of operation of the Society shall be whole of the State of ...

Location

The Society shall have its office at ..in the State of .. with liberty for it to establish one or more subordinate offices or outlets elsewhere in the State, if so required.

Objectives

The Society shall serve in an additional managerial and technical capacity to the Department of Health & Family Welfare, Government of for the implementation of National Rural Health Mission (NHM) in the State.

Scope of functions

To achieve the above objectives, the Society shall direct its resources towards performance of the following key tasks:

Receive, manage (including disbursement to implementing agencies e.g. Directorate, District Societies, NGOs etc.) and account for the funds received from the Ministry of Health & Family Welfare, Government of India.
Manage the NGO / PPP (publicprivate partnership) components of the NHM in the State, including execution of contracts, disbursement of funds and monitoring of performance.
Function as a Resource Centre for the Department of Health & Family Welfare in policy/situational analysis and policy development (including development of operational guidelines and preparation of policy change proposals for the consideration of Government).
Strengthen the technical / management capacity of the State Directorate as well as of the Districts Societies by various means including through recruitment of individual / institutional experts from the open market (with total programme management costs for the State as a whole not exceeding to 6% of the total programme costs).
Mobilize financial / non-financial resources for complementing/supplementing the NHM activities in the State.
Organize training, meetings, conferences, policy review studies / surveys, workshops and inter-State exchange visits etc. for deriving inputs for improving the implementation of NHM in the State.
Undertake such other activities for strengthening NHM in the State as may be identified from time to time, including mechanisms for intra and inter-sectoral convergence of inputs and structures.

For performing the above tasks, the Society shall:

Establish and carry out the administration and management of the Societys Secretariat, which will serve as the implementation arm of the Society.
Create administrative, technical and other posts in the Secretariat of the Society as deemed necessary.
Establish its own compensation package and employ, retain or dismiss personnel as required.
Establish its own procurement procedures and employ the same for procurement of goods and services.
Make rules and bye-laws for the conduct of the activities of the Society and its Secretariat and add, rescind or vary them from time to time, as deemed necessary.

First members of the Governing Body

The names, addresses, occupations and designations of the First Members of the Governing Body of the Society to whom by the rules and regulations of the Society, the management of the affairs of the Society is entrusted as required under section 2 of the Societies Registration Act, 1860 (No. XXI of 1860) are as follows:

Sl. No.	Name / Designation	Status in Governing Body
1.	Chief Secretary / Development Commissioner	Chairperson
2.	Development Commissioner		Co-Chair
3.	Principal /Secretary, Health & Family Welfare		Vice-Chair
4.	Mission Director of the State Health Mission	Convener
5-7	Principal Secretaries / Secretaries for NHM related Departments: Finance, AYUSH, Women and Child Development, Nutrition, Water and Sanitation, Panchayati Raj, Rural Development, Social / Tribal Welfare and Urban Affairs /DHS	Members

A copy of the rules of the Society certified to be a correct copy by three members of the Governing Body is filed along with this Memorandum of Association.

Declaration

We, the several persons whose names and addresses are given below having associated ourselves for the purpose described in this Memorandum of Association do hereby subscribe our names to this Memorandum of Association and set our several and respective hands hereunto and form ourselves into a Society under the Societies Registration Act, 1860 (Act, No. XXI of 1860): this.day of 2005 at...

Sl. N	Name	Occupation and address	Status in Society	Signature	Attested by
1
2
3
4
5
6

Dated : __________________

Model Rules and Regulations (Appendix-II)

STATE HEALTH SOCIETY, .. (name of State)
THE RULES AND REGULATIONS

1. Short Title

1.1	These Rules and Regulations shall be called The Rules and Regulations of the State Health Society (State name), 2005.
1.2	These Rules shall come into force with effect from the date of registration of the Society by the Registrar of Societies.

2. Definitions

2.1

In the interpretation of these Rules and Regulations, the following expressions shall have the following meaning unless inconsistent with subject or context :

Act means Societies Registration Act, 1860.
(abbreviation of State Society) means the State Health Society, .. (State name)[1].
Central Government means the Government of India.
Chairperson means the Chairperson of the Governing Body of the Society.
Chief Executive Officer(CEO) means the chairperson of the Executive Committee of the Society.
Executive Committee means the Executive Committee of the Society.
Executive Secretary means the Executive Secretary of the Society.
Governing Body means the Governing Body of the Society.
Member means the Member of the Society.
Rules means these Rules and Regulations registered alongwith the memorandum of Association & as may be amended by the Governing Body of the Society from time to time.
Secretariat means the Secretariat of the Society.
State Government means the Government of .. (State name).
Year means the financial year of the State Government of . (State name).

3. Office

3.1	Registered office of the Society shall be situated in the premises of . located at .. (address where Society secretariat will be located).
3.2	The Society may set up its branch offices in the State.

4. Membership

4.1	The following shall be the members of the Society :
	First members of the Governing Body. Additional ex-officio members of the Governing Body. Member Secretary of the Society, to be appointed under these Rules. Representative(s) of the Government of India. Representatives of Development Partners supporting the NHM activities in the State. Representatives of NGOs and/or association of NGOs. Representatives of professionals associations (e.g. IMA, FOGSI, IAP etc.). Representatives of other organisations as may be determined by the Governing Body from time to time. Individuals as may be nominated by the Governing Body from time to time.
4.2	The membership of an ex-officio member of the Society and of the Governing Body shall terminate when he/she ceases to hold the office by virtue of which he/she was member and his/her successor to the office shall become such member.
4.3	Non official members of the Society will be nominated by the Chairperson in consultation with other members of the Governing Body. Nominated members shall hold office for a period of three years from the date of their nomination by the Chairperson. Such members will be eligible for re-nomination for another period of 3 years.
4.4	The Society shall maintain a roll of members at its registered office and every member shall sign the roll and state therein his/her rank or occupation and address. No member shall be entitled to exercise rights and privileges of a member unless he/she has signed the roll as aforesaid.
4.5	All members of the Governing Body shall cease to be members if they resign, become of unsound mind, become insolvent or be convicted of a criminal offence involving moral turpitude or removal from the post by virtue of which s/he was holding the membership.
4.6	Resignation of membership shall be tendered to the Governing Body in person to its Executive Secretary and shall not take effect until it has been accepted on behalf of the Governing Body by the Chairperson.
4.7	If a member of the Society changes his/her address he/she shall notify his/her new address to the Executive Secretary who shall thereupon enter his/her new address in the roll of member. But if a member fails to notify his/her new address the address in the roll of members shall be deemed to be his/her address.
4.8	Any vacancy in the Society or in the Governing Body shall be filled by the authority entitled to make such appointment. No act or proceedings of the Society or of the Governing Body shall be invalid merely by reason of the existence of any vacancy therein or of any defect in appointment of any of its members.
4.9	No member of the Governing Body, except the Executive Secretary to be appointed as per these Rules, shall be entitled to any remuneration.

5. Authorities of the DHS

5.1

The following shall be the members of the Society :

Governing Body
Executive Committee
Sub-Committees of the Executive Committee, such as Programme Committees

5.2

Governing Body :

5.2.1

All members of the Society as set out in para 4.1 shall constitute the Governing Body of the Society.

5.2.2

The first members of the Governing Body of the Society shall be those mentioned in Clause 6 of the Memorandum of Association. They shall hold office until a new Governing Body is appointed according to these Rules.

5.2.3

The management of the affairs of the Society shall be entrusted to Governing Body and the property of the Society shall be vested in the Governing Body.

5.2.4

The Society may sue or be sued in the name of the Executive Secretary of the Society or of such other members as shall, in reference to the matter concerned, be appointed by the Governing Body for the occasion.

5.3

Proceedings of the Governing Body

5.3.1

The meetings of the Governing Body shall be held at least twice a year and at such time and place as the Chair-person shall decide. If the Chair-person receives a requisition for calling a meeting signed by one-third members of the Governing Body, the Chair-person shall call such a meeting as soon as may be reasonably possible and at such place as s/he may deem fit.

5.3.2

At the annual meeting of the Governing Body the following business shall be brought forward and disposed of :

Income and expenditure account and the balance sheet for the past year.
Annual report of the Society.
Budget for the next year.
Annual Action Plan and research work for the next year.
Appointments for the Executive Committee and the various Committees.
Other business brought forward with the permission of the Chairperson.

5.3.3

Every notice calling meeting of the Governing Body shall state the date, time and place at which such meeting will be held and shall be served upon every member of the Governing Body not less than twenty one clear days before the date appointed for the meeting. Such notice shall be under the hand of the Executive Secretary and shall be accompanied by an agenda of the business to be placed before the meeting provided that accidental omission to give such notice to any member shall not invalidate any resolution passed at such meeting. In the event of any urgent business the Chairperson may call the meeting of the Governing Body at clear ten days notice.

5.3.4

The Chairperson shall take the Chair at the meetings of the Governing Body. In his/her absence, the Co-Chair or in his/her absence, the Vice-Chairperson will chair the meeting, failing which the Governing Body shall elect one from among the members present as Chairperson of the meeting.

5.3.5

One third of the members of the Governing Body, including the substitutes nominated under Rule 5.2.7 present in person, shall form a quorum at every meeting of the Governing Body.

5.3.6

All disputed questions at the meeting of the Governing Body shall be determined by votes. Each member of the Governing Body shall have one vote and in case of any equality of votes the Chairperson shall have a casting vote.

5.3.7

Should any official members be prevented for any reason whatsoever from attending a meeting of the Governing Body the Chairperson of the Society shall be at liberty to nominate a substitute to take his place at the meeting of the Governing Body. Such, substitute shall have all the rights and privileges of a member of the Governing Body for that meeting only.

5.3.8

Any member desirous of moving any resolution at a meeting of the Governing Body shall give notice there of in writing to the Executive Secretary of not less than ten clear days before the day of such meetings.

5.3.9

Any business which it may become necessary for the Governing Body to perform except such as may be placed before its Annual meeting may be carried out by circulation among all its members and any resolution so circulated and approved by majority of the members signing shall be as effectual and binding as if such resolution had been passed at a meeting of the Governing Body provided that at least one third members of the Governing Body have recorded their consent of such resolution.

5.3.10

5.3.11

A copy of the minutes of the proceedings of each meeting shall be furnished to the Governing Body members as soon as possible after completion of the meeting.

5.4

Powers of the Governing Body

5.4.1

The Governing Body will have full control of the affairs of the Society and will have authority to exercise and perform all the powers, acts and deeds of the Society consistent with the aims and objects of the Society.

5.4.2

In particular and without prejudice to the generality of foregoing provision, the Governing Body may :

Make, amend, or repeal any bye laws relating to administration and management of the affairs of the Society subject to the observance of the provisions contained in the Act.
Consider the annual budget and the annual action plan, its subsequent alternations placed before it by the Executive Secretary from time to time and to pass it with such modifications as the Governing Body may think fit.
Monitor the financial position of the Society in order to ensure smooth income flow and to review annual audited accounts.
Accept donations and endowments or give grants upon such terms as it thinks fit.
Delegate its powers, to the Chairperson, Chief Executive Officer, Executive Secretary or other authorities of the Society as it may deem fit.
Appoint committees, sub-committees and boards etc. for such purpose and on such terms as it may deem fit, and to dissolve / remove any of them.
Develop and adopt its own rules and regulations for recruitment and appointment of experts and administrative / technical staff and set its own compensation package for such experts / staff to be recruited from the open market and/or deputation basis.
Develop and adopt its own procurement procedures for procurement of goods and services.
Authorise the Executive Secretary to execute such contracts on behalf of the Society as it may deem fit in the conduct of the business of the Society.
Do generally all such acts and things as may be necessary or incidental to carrying out the objectives of the Society or any of them, provided that nothing herein contained shall authorize the Governing Body to do any act or to pass any bye-laws which may be repugnant to the provisions hereof, to the powers hereby conferred on the Governing Body and other authorities, or which may be inconsistent with the objectives of the Society.

5.5

Powers and Functions of the Chairperson of the Governing Body

5.5.1

The Chairperson shall have the powers to call for and preside over all meetings of the Governing Body.

5.5.2

The Chairperson may himself/herself call, or by a requisition in writing signed by him/her, may require the Executive Secretary to call, a meeting of the Governing Body at any time and on the receipt of such requisition, the Executive Secretary shall forthwith call such a meeting.

5.5.3

The Chairperson shall enjoy such powers as may be delegated to him by the Governing Body.

5.5.4

The Chairperson shall have the authority to review periodically the work and progress of the Society and to order inquiries into the affairs of the Society and to pass orders on the recommendations of the reviewing or inquiry Committee.

5.5.5

Nothing in these Rules shall prevent the Chairperson from exercising any or all the powers of the Governing Body in case of emergencies in furtherance of the objects of the Society. However, the action taken by the Chairperson on such occasions shall be reported to the Governing Body subsequently for ratification.

5.6

Executive Committiee

5.6.1

The Governing Body will constitute an Executive Committee which will be responsible for acting for and doing all deeds on behalf of the Governing Body and for taking all decisions and exercising all the powers, vested in the Governing Body except those which the Governing Body may specifically specify to be excluded from the jurisdiction of by the Executive Committee.

5.6.2

The composition of the Executive Committee shall be as follows :

Sl. No.	Name / designation	Status in Executive Committee
1	Principal Secretary (HFW)/ Secretary, (FW)	Chairperson, Executive Committee.
2	Principal Secretary (Health)/Secretary (FW)	Co-Chairperson
3	Director, Health & FW	Vice Chair
4-7	Programme Managers/Project Directors of National Disease Control Programme	Joint Secretaries
8-10	Secretaries/technical officers from NHM related sectors	Members
11	Director, AYUSH	Member
12	Representative of Development Partners	Members
13	Representative of Ministry of Health & FW, Govt of India	Member
14	Regional Director of Health & FW, GoI	Member
15	Mission Director/Executive Director of the Society	Convenor

5.6.3

The Executive Committee may co-opt additional members and/or invite subject experts to its meetings from time to time.

5.6.4

Meetings of the Executive Committee shall be convened by the Convenor by giving clear seven days notice in writing alongwith the Agenda specifying the business to be transacted, the date, time and venue of the meeting.

5.6.5

Meetings of the Executive Committee shall be held at least once a month or more frequently if necessary.

5.6.6

The minutes of the Executive Committee meetings will be placed before the Governing Body at its next meeting.

5.6.7

The various Committees constituted by the Governing Body shall submit their reports to the Executive Committee who shall be empowered to take decisions on their recommendations.

5.7

Society Secretariat and Mission Director/Executive Director

5.7.1

A Senior Officer of the State Government of the rank of Special Secretary/Additional Secretary (an IAS Officer of JAG/Selection Grade) shall be nominated as the Mission Director. Governing Body, with the assistance of the Joint Secretary and officials such as Director/DG Health Services/Executive Director, will establish a Secretariat of the Society consisting of technical, financial and management professionals to serve as the implementation arm of the Society.

5.7.2

The Secretariat shall consist of all such technical / management units put together and as may be determined by the Governing Body with due regard to the scope of functions as set out in Article 5 of the Memorandum of Association.

5.7.3

The Executive Committee of the Society will have overall responsibility for planning and executing the work of the Secretariat, for supervising the work of the technical/management units of the Secretariat, directing and overseeing implementation through the Secretariat.

5.8

Powers and Functions of the Secretariat

5.8.1

The Secretariat of the Society shall consist of the Mission Director and Staff of the Society, including experts and consultants.

5.8.2

As the implementation arm of the Society, the Secretariat will be responsible for day-to-day management of the Societys activities. In particular, it will be responsible for performing all functions of the Society as set out in article 5 of the MoA.

5.8.3

As a support structure for assisting Department of Health & FW of the State Government, the Secretariat shall :

cause its experts and staff to be subjected to such operational arrangements with the Directorate (including seating and reporting arrangements) as to generate synergies,
host external experts within its premises, and
provide such logistic support to the officers and staff of the Directorate and Department of Health & FW of the State Government as may be determined by the Governing Body.

6. Funds of the Society

6.1	The funds of the Society shall consist of the following :
	Cash assistance received from the Government of India. Grants-in-Aid from the State Government. Grants and donations from trade, industry, institutions and individuals. Receipts from disposal of assets.
6.2	The assets and liabilities of all Societies merged into the Integrated Society shall be subsumed within the new Society.

7. Accounts and Audit

7.1	The Society shall cause regular accounts to be kept of all its monies and properties in respect of the affairs of the Society.
7.2	The Executive Committee may cause separate Bank Accounts in respect of each scheme or separate ledgers for each scheme under one account. In such an event, the Governing Body shall prescribe written instructions relating to submission of Statement of Expenditure (SoE) for each scheme. The separate Accounts of different Programmes could be audited by different auditors, and submitted to Programme Units separately. However, the SPMSU will ensure one integrated audit of the State Health Society.
7.3	The accounts of the Society shall be audited annually by a Chartered Accountant firm included in the panel of Comptroller and Auditor General of India or any qualified person appointed by the Government of India/State Government and any expenditure incurred in connection with such audit shall be payable by the Society to the Auditors. The Office of the Accountant General of State may also, at its discretion, audit the accounts of the society.
7.4	The Chartered Accountant or any qualified person appointed by the Govt. of India/State Government in connection with the audit of the accounts of the Society shall have the same rights, privileges and authority in connection with such audit as the Auditor General of the State has in connection with the audit of Government accounts and in particular shall have the right to demand the production of books, accounts, connected vouchers and other necessary documents and papers.
7.5	The report of such audit shall be communicated by the auditor to the Society, which shall submit a copy of the Audit Report alongwith its observation to the State Government.
7.6	The Auditor shall also forward a copy of the report to the Chairperson of the Society and representative(s) of the Government of India on the Governing Board.

8. Bank Account

8.1	The account of the Society shall be opened in a nationalised bank approved by the Executive Committee or in a scheduled commercial bank as may be specified by the MoHFW, Government of India. All funds shall be paid into the Societys account with the appointed bank and shall not be withdrawn except through a cheque, bill note, other negotiable instruments or through electronic banking (e-banking) procedures signed/electronically authorised by such authorities of the Society Secretariat as may be determined by the Executive Committee.
8.2	The Society shall switch over to e-banking procedures as and when the MoHFW, Government of India directs the Society to do so as the principal donor to the Society.
8.3	The Executive Committee shall authorise the Executive Director (Mission Director) to operate the accounts of the Society in conjunction with another senior official as may be decided by the Committee.

9. Annual Report

9.1

A draft annual report and the yearly accounts of the Society shall be placed before the Governing Body at next meeting for consideration and approval. A copy of the annual report and audited statement of accounts as finally approved by the Governing Body shall be forwarded within six months of the closure of a financial year to the Chairperson of the Governing Body and Government of India representatives on the Governing Body.

10. Suits and Proceedings

10.1	The Society may sue or be sued in the name of Society through its Mission Director.
10.2	No suit or proceedings shall abate by the reason of any vacancy or change in the holder of the office of the Chairperson or Executive Secretary or any oofice bearer authorised in this behalf.
10.3	Every decree or order against the Society in any suit or proceedings shall be executable against the property of the Society and not against the person or the property of the Chairperson, Executive Secretary or any office bearer of the Society.
10.4	Nothing in sub-rule 10.3 above shall exempt the Chairperson, Executive Secretary or office bearer of the Society from any criminal liability or entitle him/her to claim any contribution from the property of the Society in respect of any fine to be paid by him/her on conviction by a criminal court.

11. Amendments

11.1	The Society may alter or extend the purpose for which it is established and/or the Rules of the Society.
11.2	The proposition for any alteration or extension to the objectives of the Society and / or the Rules must be circulated to all members of the Governing Body and must be included in the written agenda of the ensuing meeting of the Governing Body or a special meeting of the Governing Body.
11.3	No amendments shall be effective unless the proposals in this regard have been endorsed by 3/5th of the members of the Governing Body provided that such proposals have been endorsed in writing by the GoI representatives on the Governing Body either during the meeting of the Governing Body or through a written communication.

12. Dissolution

11.1	The Governing Body may resolve to dissolve the Society by bringing a proposal to that effect in a special meeting to be convened for the purpose.
11.2	Upon the dissolution of the Society, all assets of the Society, after the settlement of all its debts and liabilities, shall stand reverted to the State Government of Bihar for such purposes as it may deem fit.

13. Misclellaneous

13.1	Contracts
	13.1.	All contracts and other instruments for and on behalf of the Society shall be subject to the provisions of the Act, be expressed to be made in the name of the Society and shall be executed by the persons authorised by the Governing Body.
	13.2	No contracts for the sale, purchase or supply of any goods and material shall be made for and on behalf of the Society with any member of the Society or his/her relative or firm in which such member or his/her relative is a partner or shareholder or any other partner or shareholder of a firm or a private company in which the said member is a partner or director.
13.2	Common Seal
	13.2.1	The Society shall have a common seal of such make and design as the Governing Body may approve.
13.3	Compliance of Statutory Requirements
	13.3.1	The Society shall register itself with relevant government agencies for the purpose of complying with the statutory requirements including regulations governing deduction of tax at source relating to the staff, consultants and experts employed by it and/or consultancies / contracts awarded by it in the course of performance of its tasks.
13.4	Government Power to Review
	13.4.1	Notwithstanding anything to the contrary contained in these Rules, the Ministry of Health & FW, Government of India, as the principal donor to the Society, may appoint one or more persons to review the work and progress of the Society and hold enquiries into the affairs thereof and report thereon, get the accounts of the society audited by the internal audit parties of the Chief controller of Accounts, MoHFW, GoI, and issue directions, as deemed appropriate, to the Society.
	13.4.2	The Chairperson of the Governing Body shall have the right to nominate one or more persons to be part of the review / enquiries
	13.4.3	The progress review reports and / or enquiry reports shall be included in the written agenda of the ensuing meeting of the Governing Body.

We, the undersigned being three of the members of the first Governing Body of the State Health Society, (State name) certify that the above is a correct copy of the Rules and Regulations of the said Society.

Sl. No.	Name and address	Signature
1
2
3

Dated :_________________________

Generic Bye-laws (Appendix-III)

(Generic) Bye-laws of the State Health Society, ..(State name)

Procurement Policy and Procedures

Procurement of goods and services to be financed from funds received from Government of India shall be done as per the procedures recommended by the Government of India.

In all other cases, including where the GoI allows the State a choice, following order of preference shall be applied for procurement of goods and services:

Procurement of Goods:

Rate contracts of the DGS&D, failing which,
Rate contracts of other GoI agencies, failing which,
Tender procedure as recommended by GOI.

Procurement of services: Procedure as recommended by the GOI.

Procedure for release of funds and Financial Powers of the Office Bearers of the Governing / Executive Committee

Classification of Items of Expenditure and Financial powers of the bodies and office bearers of the Society

(For ensuring smooth flow of funds for the approved plans and activities, it is necessary that proper delegation of administrative and financial powers is made at each level. A model delegation is suggested below, which each State/UT may consider keeping in view their existing systems and procedures and suitably modify/add for meeting States own requirements and all relevant aspects)

Type of expenditure	Authority	Extent of power
A : Approval of District /City plans.	Governing Body / Executive Committee	Full powers
B : Release of funds for implementation of plans / allocations which have been approved by Governing Body / Executive Committee.	Mission Director/DHS*	Full powers.
C : Expenditure proposals not covered under categories A and/or B
C-1 : Procurement of goods C-2 : Repairs and minor civil works C-3 : Procurement of services for specific tasks including outsourcing of support services for the Directorate.	Chairperson, Executive Committee	More than Rs 5.00 lakh and upto Rs. 10.00 lakh per case.
	Mission Director	Upto Rs. 5.00 lakh per case.
C-4 : Hiring of contractual staff, including sanction of compensation package.	Chairperson, Executive Committee	Full powers, provided that the contracts shall be for a period not exceeding 11 months at a time.
	Mission Director	Full powers in respect of Clerical / Class-IV equivalent positions, subject to compensation package approved by the Governing / Executive Committee, provided that the contracts shall be for a period not exceeding 11 months at a time.
C-5 : Miscellaneous items not mentioned above such as hiring of taxis, hiring of auditors, payments relating to documentation and other day-to-day services, meetings and workshops, training, purchase of training material/ books and magazines, payment of TA/DA and honoraria to resource persons and guest speakers invited to meetings / workshops, and payment of TA/DA allowances for contractual staff and/or non-official invitees to Governing Body /Executive Committee meetings and/or Government / Society staff deputed to meetings outside the State.	Chairperson, Executive Committee	Upto Rs. 5.00 lakh at a time subject to a maximum of Rs. 50 lakh per annum.
	Mission Director	Upto Rs 2.00 lakh at a time, subject to a maximum of Rs. 25.00 lakh per annum.

*as authorized by the State Government.

Procedure for release of funds

The Society funds shall be drawn through cheques and/or bank drafts and/or through e-banking instruments as and when the same is introduced.

All cheques shall be signed by two authorised signatories of the Society Secretariat on the basis of a written authorisation from Executive Committee of the Society in this behalf.

Wherever releases are decided to be made through bank drafts and/or through e-banking, the authorisation letter to the bank shall be signed by the concerned authorised signatories.

Wherever, under e-banking procedures, releases are to be made through electronic authorisation to the bank to issue cheque/draft/account transfer on behalf of the Society, the electronic authorisation will be executed by the same two authorised functionaries of the Society Secretariat who have been authorised to sign cheques on the basis of a written authorisation in this behalf.

Review / revision of financial powers

The Executive Committee may review and revise the financial powers of the office bearers of the bodies of the Society on an annual basis and revise the same, if considered necessary.

Human Resources Policy and Procedures

Recruitment and Appointment

Appointments for the Society can be made only against vacant posts prescribed for the Society in accordance with the conditions in this regard prescribed by the Govt. of India from time to time, (such as the overall programme management costs not to exceed 6% of the total programme costs).

Recruitment would be through either of the following three routes:

Appointments from open market : all such appointments will be on contractual basis for a fixed tenure.
Appointments on Deputation basis : all such appointments will be regulated in terms of the State Government rules relating to Deputation of its officers / staff.
Individuals recruited and paid for by an outside agency [ e.g. Government of India and/or Development Partners] but posted to work within the Society Secretariat: all such persons shall be governed by the terms of employment of the organisation agency concerned. However, they shall be required to report to the Director / Executive Secretary as may be decided by the Chairperson, Executive Committee.

All appointments would be temporary and would be made for the contract / deputation period as determined by the Executive Committee.

Leave rules

Holidays, Casual Leave, Medical Leave: The Society staff and the full time consultants shall be governed by the State Government rules, in so far as observance of holidays and grant of casual / medical leave is concerned.
Leave without pay: The Society staff (including full time consultants) shall be entitled to take leave without pay in exceptional circumstances. This can be sanctioned by the Executive Secretary after recording the reasons. For the Executive Secretary, this would have to be endorsed by the Chairperson, Executive Committee.

Training and capability development:

Full time consultants and staff of the Society (including staff on deputation) would be encouraged to take up skill development courses and even correspondence courses which further their employment prospects, enhance their skills, and build up Society capabilities.

Travelling / Dearness Allowance (TA/DA) Rules

Travel within State: Travel of Society staff (including those who are employed by the Society on deputation basis) within the State shall be governed as per the entitlements given in the table below.

	Executive Secretary and senior officers on deputation to the Society	Full time senior consultants	Junior / clerical staff
Entitlement for rail travel	2nd AC / AC Chair Car	2nd AC / AC Chair Car	3rd AC / AC Chair
Entitlement for road travel [1]	Taxi	Taxi	Bus/Shared taxi [2]
Per-diem when hotel is not used	Rs. 300/- per day	Rs. 200/- per day	Rs. 300/- per day
Per-diem when hotel is used [3]	Rs. 1000/- per night [4]	Rs 500/- per night [4]	Rs. 500/- per night [4]

Notes :

The Society shall create a panel of accredited taxi operators through open tender for hiring the taxis for the travel of Society staff.
The Executive Secretary can allow the junior staff to use a taxi for undertaking travel as per an approved itinerary.
The Society shall identify and negotiate a standard/discounted tariff for its staff / employees with the State Tourism Corporation, guest houses of PSUs and budget / hotels in the State.
Maximum, subject to actuals.

Travel outside the State : Travel outside the State shall be regulated on a case to case basis in accordance with delegated financial powers as indicated in Section-B above (Financial Powers, item C-5).

Deduction of Tax at Source : Tax will be deducted at source as per income tax rules and the Society shall register itself with the relevant authorities in this regard.

1] E.g. State Health Society, Haryana (SHSH), State Health Society, Bihar (SHSB) etc.

[2] The 74th Amendment provides for creation of a District Planning Committee to consolidate the plans prepared by Panchayats and Municipalities in the district and to prepare a draft development plan for the district as a whole. However, the DPCs role is limited to planning only and does not include management functions.

[3] At the district level, operational policy will relate to decisions about procedures, priorities etc. which set the precedent about what management actions are to be followed by the programme managers. For example, the DHS may be authorised to relocate all or some categories of staff within the district. The DHS will be required to evolve and approve a procedure to be followed by the programme managers in this regard.

* The State may decide to designate Convenor of the District Health Mission as Mission Director in respect of the District Health Mission

[4] This provision is being made to ensure that the DHSs in other districts also benefit from avenues of improvements identified in a district.

[5] In districts having District Hospital (Male) and District Hospital (Female), Superintendents of both should be included as members of the Executive Committee.

[6] These include NPSP Medical Officers (WHO), District Programme Managers of the Border District Cluster Scheme (UNICEF) and District Programme Manager for the nutrition projects of the CARE etc.

राष्ट्रीय स्वास्थ्य मिशन

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