Standard Operating Procedure Sensitization for CCAs amp CAs with Independent Charge 27 th and 28 th June 2016 Public Financial Management System PFMS Expectations of PMO PFMS to provide ID: 524954
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Slide1
Full Roll Out of PFMS for Central Sector SchemesStandard Operating ProcedureSensitization for CCAs & CAs with Independent Charge27th and 28th June, 2016
Public Financial Management System (PFMS)Slide2
Expectations of PMOPFMS to provide
a robust system for ensuring ‘Just in Time’ releases in respect of Central Sector (CS) and Central Assistance to State Plan (CASP)
schemes.
Complete
monitoring of utilization of funds under these two categories
upto
the end beneficiaries including information on end use of funds.Slide3
Basic StatisticsCS SchemesNumber of Schemes-697
Outlay : 2,31,863.12 Cr.
Number of Agencies Registered: 98 Thousand
CASP Schemes
Number of Schemes-100
Outlay : 2,48,573.42 Cr.
Number of Agencies Registered: 17
lakhSlide4
Requirements to meet the expectations Mandatory registration of leftover Implementing Agencies (IAs) on PFMS
Mandatory use of Expenditure Advance & Transfer (EAT) Module of PFMS by all
IAs
Present Status:
About 18
Lakh
Agencies are registered out of which 26000 agencies are using EAT module partially
Total Universe of CS and CASP Schemes is not knownSlide5
Implementation PlanPFMS Project Team will guide
the Ministries for all the activities as listed
below
Registration of all IAs (First level and all levels below)
Customisation of Scheme
Uploading of Sanctioned budget of each scheme on PFMS
Identify implementation hierarchy of each Scheme
Integration of systems Interface of specific Schemes
Deployment of Trainers (Resource Persons)
Training of TrainersSlide6
Implementation Plan (Contd.)Support required by Ministry at Implementation Level
Hardware including Internet connectivity to be made available
Resource persons including Technical resources (NIC/ Consultants) and for Implementation work at all levels
The
Ministries
need
to upscale their resources as per the actual requirements assessed in terms of number of programs/schemes and complexities/levels of implementation of these programs/schemes.Slide7
TimelinesDependent on availability of resources and other requirements, the following timelines are proposed:
Implementation of CS Category Schemes in all Central Ministries for first level releases( excluding PSUs, Autonomous Bodies, NGOs) -by October 2016.
For Other agencies (PSUs, Autonomous bodies, NGOs) and second level and below agencies of Central Government – Depending on the preparedness of the Ministry and at the I.A level it shall be taken up. However the target is to complete the task by 31.3.2017.Slide8
Requirements from Ministry Identify the Schemes in which 1st level Agencies may use Expenditure – Advance- Transfer (EAT) Module of PFMS Identify Master Trainers for Training to the users of EAT Module in First Level IAsIdentify all Implementing Agencies at all levels below 1
st
Level Agencies
Ensure their registration on PFMS in respective hierarchy and their training for use of PFMS Modules
Preparation of detailed Training Material for each Scheme for each level
Draw Action Plans with consensus of the Secretary of the Ministry / Department ConcernedSlide9
Requirements from CCA Office for CS SchemesSet up a PFMS Cell in their office. PFMS will place an outsourced Project Manager in the Cell. Other outsourced personnel may also be placed in the Cell along with some existing staff, as available.
Identify all Implementing Agencies below 1
st
Level Agencies
Identify Master Trainers for Training.
Draw Action Plans with consensus of the Secretary of the Ministry / Department Concerned
To ascertain Fund Flow Hierarchy, Scheme Components and DBT process for each Scheme in consultation with Program Division (PD) and liaison with PFMS project Cell for its customisation on web portal.
Preparation of scheme wise guidelines for Expenditure-Advance-Transfer module (EAT) in consultation with PD.
Support to Program
Division for DBT implementation to provide immediate solution for non-technical issues.
Monitoring of all kind of reports and its analysis for the
concerned
Department/ Ministry.
Reporting to PFMS project Cell for the technical issues/ improvement required in EAT Modules/reports of the concerned Department/ Ministry. Slide10
Requirements from CCA Office for CASP SchemesMonitoring of CASP Scheme funds is in two steps:Through PFMS-State Treasury Integration
Use of PFMS by State Implementing Agencies.
Following activities are suggested for CCA Offices:
Monitoring Treasury Reports of CASP Schemes of concerned
Ministry.
Configuration of Standard Hierarchy and Components of the CASP Scheme which will be further customised by SPMU in case different states have different hierarchies and components
Assisting States in case of Scheme specific queries w.r.t. PFMS
Draw
State wise Action
Plans with
approval
of the Secretary of the Ministry / Department
Concerned
Monitoring other reports w.r.t. Fund Flow of the CASP Schemes of the concerned MinistrySlide11
PFMS– Financial networkPublic Financial Management System
11
IFD
Program Division
Drawing and Disbursing officer
Pay and Account Officer/Pr AO
Reserve Bank of India
District SPV
Block SPV
Panchayat
Village
Consolidated Fund of India
CASP
Schemes
State Government treasury
State Governments
Implementing agencies
Vendors/ NGOs/ Employees
Beneficiaries
State SPV
Central
Government
Banking
Central SchemesSlide12
Unique FMIS
PFMS
Treasury Interface
CBS Interface
E-payment/Exp. filing
CASP
CSSlide13
Interface with different Systems (Cont.)PFMS is designed as a network-of-networks, as such it is able to interface and integrate with existing MIS applications of different schemes.
Integration with :
MCTS of National Health Mission,
NSAP-MIS of Rural development,
Scholarship System of
Canara
Bank for UGC,
UP Scholarship Portal,
Ethibak
Application of Maharashtra for subsidy payment,
Kanyashree
Online Portal of West Bengal,
Integrated
with
MGNREGSoft
and
AwasSoft
of Rural
development
Integrated with Food Subsidy MISSlide14
Account Validation ResponseDaily Transaction Data
PFMS Application
Account
Validation
/
Transaction
by User
PFMS-CBS Interface
Bank CBS System
PFMS–CBS INTEGRATION
Cycle Period
Near Real Time
Bank Integration
of PFMS with Core Banking Solution (
CBS)
facilitates
,
near real time bank account validation,
fund transfer and
access
to view bank balances of implementing agencies
.
The system is
configured to make e-payment
using Digital Signature, Corporate Internet Banking (CINB) and Payment Print Advice.Slide15
PFMS - Treasury Interface
The
work on
linking of State Treasuries with the PFMS
complete
in respect of
10
States -
Treasury
integration with
other
states
and UT with Legislature is in
progress.
PFMS
PFMS Database
PFMS Middleware
Treasury SFTP server
Treasury
Treasury Database
XML
Data
Connected via Internet
FS has recently addressed a letter to all the Chief Secretaries to expedite the treasury interface with PFMSSlide16
Functionalities of PFMSKey Functionalities:Configuring of schemes on the portal for fund transfer
Enabling fund management
for Implementing Agencies
through EAT Module
Facilitating
DBT/non-DBT payments
to beneficiaries & others
Linking
PFMS with State Treasury
systems
Bank Interface
for effective payments, reconciliation and reporting to scheme/ Program Managers.
PAO/ DDO computerisation
in each Civil Ministry
Enabling e-collection of
Non Tax Receipts
Slide17
Fund Flow for CS and CASP Schemes
Ministry
Central Agency
Level 1
Central Agency
Level 2
RBI
State Consolidated Fund
State
Treasuries
State Implementing Agency
Level 1
Central Agency Level 3
State Implementing Agency
Level 2
State Implementing Agency
Level 3
CS Schemes
CASP Schemes
Central Schemes
State Schemes
Vendors/ Employees/
Beneficiaries
PFMS
PFMS – State Treasury Integration
PRI/ ULBSlide18
EAT module of PFMS Expenditure-Advance-Transfer module facilitates:
Expenditure
: e-payment to vendors, employees etc.
Advance
to Vendors
Transfers
to below level agencies
Receipts
of funds from different sources
Maintenance of Cash Book
- Scheme and Component-wise
Who are the Users of EAT Module:
All Implementing Agencies (IAs)
after creating two types of users -Maker & Checker Slide19
Expenditure –sub moduleFacilitates e-payments of the day-to-day expenditure using PFMS. The expenditure gets recorded in the cash book of the agency on the PFMS system.Slide20
Advance – Sub ModuleAdvance payment is made to a vendor or supplier for getting a service or product. An advance can also given to an agency’s officials.Once the intended work is completed, the beneficiary/vendor/supplier will submit the voucher and the advance is settled on PFMS system.Slide21
Transfer of Funds – Sub ModuleFunds can be transferred to another agency (subordinate or same level) under the Scheme. Slide22
Receipt of Funds – Sub ModuleFunds are received by an agency from different sources such as :Central GovernmentState Government
Other Agencies such as State Society, District Agency, etc
Returned by other agencies
Interest Income
Income from other sourcesSlide23
Sample EAT Module – user menu – manage opening balances – for cash book maintenanceSlide24
Sample menu – EAT module -Vendor Management Slide25
Sample - Report of EAT Module (showing - for whole state -Bank Balance, Allocation, Receipts, Expenditure, Advances, and Transfers)
National Health Mission: UP Slide26
Sample – level-wise EAT Module reportSlide27
Sample – Component-wise expenditure reportSlide28
Sample report - Manage AdvancesSlide29
SOP for a Scheme to on-board on PFMS
Step 1
Creation
of Scheme and Account head mapping.
Step 2
Defining Hierarchy on PFMS portal based on
Program Division
inputs
.
Step 3
Defining Components / List of Activities on PFMS portal in which PD wants utilization.
Step 4
Registration/ Mapping of Agencies in the given hierarchy and its approval by PD/ Funding Agency.
Step 5
Use of EAT
and DBT modules
by registered
Agencies
for all kind of
payments.
Step 6
Reports of Agency registration, Bank Balances and Component wise Expenditure on PFMS in
Implementing
A
gencies
, PD, FA, CGA and other MIS type Users Login.Slide30
Hierarchy of Fund Flow & Monitoring of Entire Fund in the ChainDefine HierarchyMultiple/SingleUrban/RuralCS/CASP
Overlapping to administrative Boundaries
Register Agencies with Bank Accounts details
Monitor flow of fund on the basis of real time Bank StatementSlide31
Scheme ComponentsActivities/ Sub Activities under which fund is utilized (Items of Expenditure)Scheme Managers can watch the expenditure made under each component/sub component if e-payment is done on PFMS portal by registered agencies.
After Defining Components and sub components on PFMS portal, users can file expenditure /can make payments online by selecting components/sub-components.
On the basis of transactions on PFMS, Utilization certificates can be generated on PFMS portal and can be submitted digitally online or can be uploaded in PDF form by signing it physically.Slide32
Activities after customising Scheme on PFMSSlide33
Examples of Hierarchy Structure
CS Scheme
CASP SchemeSlide34
Examples of Hierarchy Structure (Cont.)Slide35
Example of an incorrect HierarchySlide36
Example of an incorrect Hierarchy (2)Slide37
Components for NHM
Example : Scheme
Components
Sub-ComponentsSlide38
Component 1Component 2
Sub-Component 1
Sub-Component 2
Sub-sub-components
Scheme Components (NRLM)
Example : Scheme
Components (Cont.)Slide39
Major reports to monitor the fund flowM-03 Monitoring the status of Agency Registration M-16 Level wise Bank Balance and EATM- 22 State wise Balances and ExpenditureDBT Reports (Scheme wise and State wise)E-09 Expenditure through TreasuriesSlide40
M-03 Monitoring the status of Agency RegistrationSlide41Slide42
Registration under NHM : Details of Individual agencies in Agra district at different levelSlide43
Report M 16Slide44
Report M16, Drilled down
National Health Scheme: UP
Level wise Bank Balances of SPVs (FY – 2016-17)Slide45
Report M16 (hyperlink of expenditure figure)
National Health Scheme: UP Component wise expenditure (FY – 2016-17)Slide46
State wise Bank Balance of registered Agencies on end-of-day* basis*Depends on banks when they update/share the data with PFMS. It varies bank to bank for a day /week.
Report M22Slide47
National Health Scheme: District Health Society, Varanasi (UP) Bank Passbook (FY – 2016-17)
Pass book end-of-day basis*
*end-of-day as different banks have different time schedule to update the transactions. Hence, the statement may be a day old.Slide48
Report E 09 (Treasury Interface Report)Slide49
Report M22Slide50
Manage UsersSlide51
Editing/Enabling/Disabling UsersSlide52
Managing Digital Signature of UserSlide53
Signatory DSC ConfigurationSlide54
Fund Management by AgenciesSlide55
UC ManagementSlide56
Generation of UCSlide57
e_Utilization
CertificateSlide58
UC_Print_PDF UploadSlide59
Info for Customisation of a Scheme Slide60
Agency Registration FormatSlide61
Summary Sheet of Number of Agencies to be registeredSlide62
Questionnaire for Starting DBT1. What is the exact Scheme Name?2. Whether it is Central Sector Scheme or Central Assistance to State Plan Scheme?
3. Name of the Central Ministry with which Scheme is associated?
4. What are the Scheme Components (chart of Account for Accounting & MIS)?
5. Please provide the list of activities/payment purposes for which beneficiaries are to be paid.
6. Please provide the payment purposes wise beneficiary payment limits if any.
7. What are the Beneficiary Types like Student, Pensioner etc. who are to be paid?
8. What is the Scheme Hierarchy (Implementation Levels)? i.e. National level Agency/ Regional or Zonal level Agency/ State Level
9. Please provide the implementing agencies types implementing scheme at each level of Hierarchy / Local Bodies, NGO ..(List the types)
10. Whether the implementing agencies of different levels have scheme bank accounts w.r.t. the said scheme?
11. Who creates/originates Beneficiary List and how it is done?
12. List down the attributes of beneficiaries which are captured in the list and also provide their validation rules.
13. Who approves the beneficiary list?
14. Who generates the beneficiary payment list and how it is done?
15. Who verifies the beneficiary payment list?
16. Who authorizes (Signatories) the Beneficiary Payments? Whether it authorized by one authorizer or multiple authorizer?
17. Whose bank account will get debited for DBT payments?
18. Expenditure will be booked in whose Accounts i.e. Accounting will be done by whom?
19. Debiting bank accounts are in Nationalised Banks or Large Private Sector banks or in any other type of Bank?
20. Will the payment be
Aadhaar
based or bank account based or both?
21. Whether the Beneficiaries are having accounts in Banks or Post offices?
22. In case beneficiaries are having bank accounts in Cooperative banks, Please mention the names of cooperative banks.
23. Whether the valid bank account details including IFSC codes are available for beneficiaries?
24. Whether there are any payment limits for authorizers?
25. What is the approximate no. of beneficiaries which are to be paid through PFMS for the said Scheme?Slide63
Beneficiary Excel Format
A
Full Name in English
B
Full Name in Recognized Official Language
C
Gender
D
Address line 1
E
Address Line 2
F
Address Line 3
G
District
H
State
I
Country
J
Bank Name
K
IFSCCode
L
Account Number
M
Aadhaar Number
N
Pincode
O
Scheme Specific ID
P
Center Share Payment Amount
Q
State Share Payment Amount
Things to Care in Excel
Sheet
S.No.
Description
1
Worksheet Rename to sheet1 before excel upload.
2
Spaces in empty cells are not taken care in the excel upload.
3
Special characters in the data which results in configuration error.
4
In case of configuration error check the data for any special character.
5
Excel column Header doesn't match the Database column header value.Slide64
Processes available to make DBT payments
Process Type 1 :
o Beneficiary Identification by Implementing Agencies(IA)
o Payment batch preparation by IA
o Authorization by same IA in PFMS
o Payment from bank Account of same IA
Process Type 2 :
o Beneficiary Identification by IA
o Payment batch preparation by IA
o Payment Batch authorization by Higher Level IA
o Payment from bank Account of Higher level IA
Process Type 3:
o Beneficiary Identification by IA
o Payment batch preparation by IA
o Digitally Signing Batch by IA
o Payment from Ministry with involvement of PD, DDO and PAO
Process Type 4 :
o Beneficiary Identification and Payment Batch preparation in External Systems of Ministry/State Govt. Applications (Like OSMS of MoMA, UGC
CanBank
of Higher Education and MCTS of Health and Family Welfare
Dept
,
MGNREGASoft
and
Aawassoft
of RD,
Kanyashree
of WB, Samajwadi Pension Portal of UP, National
e_Scholarship Portal)o Payment Batch Authorization in PFMS by IA by Applying DSC.
o Final payment can be done through Agency Bank Account or o Through Ministry by Pay and Account Office.o Through Treasury by Treasury OfficersSlide65
Our Resolution…..
“We Can…. We Will”
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