3.1presentation For PFMS Training (English)

DDU-
GKY
DDU-GKY
Public Financial Management System
TRAINING PROGRAMME IN
Public Financial Management System (PFMS)
DDU-GKY, April 2015. Confidential

DDU-
GKY
Preface
This presentation attempts to explain about:
• Highlights from Chapter- 8 SOP(Part- 2)
• Background and objectives of PFMS
• Current and Future Capabilities of PFMS
• Role of PFMS in financial management of DDU-GKY
• Role of various Stakeholders in the management of PFMS

DDU-
GKY
Highlights from Chapter- 8

SOP(Part- 2)
Project Financial Procedures

DDU-
GKY
Role of PFMS in financial monitoring
PFMS is a monitoring tool which focuses on recording and

validation of the following transaction
1. Payment of entitlement to candidates are accurate and

timely
2. Payment of salaries to trainers, master trainers and the Q

team members are accurate and timely, as they have
critical impact on the quality of training and employment
as envisaged in the scheme
4
DDU-
GKY
Payment to be Checked 100% which cover Approximately
70% of the project cost
Candidate entitlement Payment of salaries 70%

1.Food and To & Fro to: Approximat
charges 1.Trainers ely of the
total project
2.Boarding and 2.Master Trainers cost
lodging expenses
3.Q Team Member
3.Post Placement
support
4.Uniform cost
5
DDU-
GKY
Roles and responsibility of PIA, CTSA and SRLM on
Financial Monitoring
PIA CTSA/SRLM
• PIA shall be accountable and • Verification of expenditure limited

responsible for compliance to all to disburse of candidates
rules and regulations as per entitlements, payment to trainers,
policies and processes define in master trainers and PIA Q team.
SOP.
• Verification and review of the
• Provide the clarity among each remarks reported by the
actors (PIA OP Team, PIA OP periodical and annual auditor
Team (Finance), PIA Q Team,
Auditors)constituted by PIA
6
Appointment of Auditors DDU-
GKY
Appointment of auditor(s) for the following roles:

1. Periodical Auditor
2. Annual Auditor
(The auditor(s) appointed should be independent :

free from economic, financial and other relationship
with PIA)
7
DDU-
GKY
Process of Financial Auditing
Process of First Month Financial Auditing
Process of Monthly Financial Auditing
Process of Annual Financial Auditing
8
Process of First Month Financial Auditing(Para 8.10.1,
DDU-
Page No. 124) GKY
5th of Finalize 1st month Monthly Verification Certificate and share with
calendar Periodical Auditor for Verification
Month
Finalize Financial Audit Certificate and Utilisation certificate

10th of and share the document with Annual Auditor for conducting
calendar audit
Month
15th of
Conduct Verification for the prescribed heads of expenditure
calendar as per monthly verification certificate
Month
Conduct financial audit for 1st month books of account based on

25th of the sampling technique as per the applicable auditing standard
calendar with the sample size mentioned under SI 8.10G
Month
Submission of 1st month Monthly Verification Certificate
authenticate by Periodical Auditor and Financial Audit Certificate,
26th of Utilisation Certificate authenticated by Annual Auditors to SRLM/
calendar CTSA
Month
Visit the project finance office of PIA and conduct meeting with PIA OP
30th of Finance team, Periodical and Annual Auditor to Verify the report Submitted
calendar and make correction
Month
30th of Submission of revised audit report if required based on the

calendar observation of SRLM/CTSA
Month
Process of Monthly Financial Auditing Auditing(Para 8.10.2,
DDU-
Page No. 126)
GKY
5th of Finalize Monthly Verification Certificate and share with
every Periodical Auditor for Verification
month
15th of
Conduct Verification for the prescribed heads of
every expenditure as per monthly verification
month certificate
16th of Submit Monthly Verification certificate authenticate by

every
month
Periodical Auditor to CTSA/ SRLM
Cross verify amount received as take home salary in a

18th of candidates bank account and hand over to CTSA finance
every team
month
Cross Verify Monthly verification certificate and assess the
23th of deviation report by Periodical auditor and issue a Monthly
every Verification Report directing the PIA to rectify deviations and
month report compliance
26rd of Comply with the Monthly Verification report of SRLM/CTSA report

every
month
and submit a compliance Report
End of Review the Compliance Report submitted by PIA and issue Final
every Monthly Verification report Generating notice, in case deviation
month are not Addressed
Process of Annual Financial Auditing (Para 8.10.3, Page No.
129) DDU-
GKY
Finalize and share Annual Financial statement, Annual Audit Certificate, Annual
31th July
Utilisation Certificate and related books of account in accordance with the
(previous
applicable standards and share with Annual Auditor
year )
25th Sep Conduct Annual financial audit of books of account based on the sampling
(previous technique as per the applicable auditing standards with the sample size
year )
Authenticate Annual Financial Statement, Annual Audit

25th Sep
(previous
Certificate and Annual Utilisation Certificate
year )
30th
Submit annual audited financial statement, annual audit
September certificate and annual utilisation certificate to SRLM in AAP
(previous state and CTSA in non-AAP state
year )
15th Oct CTSA to Reconcile the amount of expenditure for prescribed

(previous heads, assess deviations reported in annual audit certificate
year )
CTSA to Issue an annual verification report directing the

20th Oct
(previous PIA to rectify deviation and submit a compliance report
year )
PIA to Comply with the Annual Verification Report of SRLM/

25th Oct
CTSA and submit a Compliance report
(previous
year)
10th Nov CTSA to Review the Compliance Report Submitted by PIA and
(previous issues final Annual Verification Report. Generate notice, in case of
year) deviation not addressed
Quarterly & Half Yearly Verification by DDU-
CTSA GKY
(para 8.10.2, Activity-8)
Quarterly
• Project commencing in 1st & 3rd quarter : 4 Quarters
• Project commencing in 2nd & 4th quarter : 5 Quarters
Half yearly verification

• At the end every half year ending March and September
12
SI 8.3 E: Heads of expenditure DDU-
GKY
PFMS Heads PFMS Heads

Code Code
A Training Cost A5 Post Placement Support
A1.1 Trainers Salaries A5.1 Placement within district
A1.2 Q Team Salary domicile
A1.3 Other training Cost A5.2 Placement within state
A2 Boarding and Lodging domicile
A2.1 State Headquarters A5.3 Placement outside state
A2.2 District Headquarters domicile
A2.3 Other Locations A6 Tablet Computers
A3 One Time Travel Cost
A4 Food and To & Fro Charges A7 Uniform
A8 Incentives
13
DDU-
GKY
Vision of PFMS
A robust 21st century system for

efficient, effective and transparent
public funds management
14
DDU-
Objectives of PFMS GKY
• Tracking of funds across the scheme hierarchy

• Report utilization at different levels of
implementation on a real time basis
• Real time reporting of banking transactions
• To provide a single platform for payment,
accounting and MIS
• Enhancing transparency, accountability and
auditability in public expenditure
15
DDU-
GKY
Workflow
integration
Current
with and Future
PaymentsCapabilities
Reporting of Accounting
PFMS
Programme
MIS
Monitoring and Learning
16
DDU-
GKY
Key Stakeholders of DDU-GKY in PFMS
MoRD CTSAs (YP)

(DDU-GKY) SRLMs (AP)
Beneficiaries
Project
Implementing Vendors
Agencies (PIAs)
17
Life cycle of PFMS functionalities DDU-
GKY
18
Learning Objectives DDU-
GKY
Payments -SRLMs
• Receiving central share funds 6.1 Marking receipt

of funds in PFMS
• Receiving state share funds
4. Registration of PIAs,
• Creation of project masters Mapping PIAs and
Creating project masters
7.Transfer of Funds to PIA

• Transferring funds to PIAs
19
DDU-
Payments-PIAs GKY
• Receiving funds from CTSA/SRLM 7.1 Marking receipt of

funds in PFMS (Receiving
central and state share)
• Creating vendors and beneficiaries

5. PIA& SRLM creating users
& payees
• Validation of bank accounts of vendors and beneficiaries
8. Payments via Electronic Mode-

• E-payment using e-print advice e Payment using Print Advice
20
Payments DDU-
GKY
PIAs
•Mapping training centres
These activities have relevance

• Recording bank charges when legacy data is to be entered
in PFMS
• Recording interest income

• Recording loans and settling loans
• Recording advances and settling advances
• Managing deductions
21
DDU-
Reporting GKY
• Reporting and aggregation of expenditure information
• Real-time monitoring of bank accounts

 SRLMs can use M16 report for monitoring the
transactions of the PIA
 PIA can view Agency cash book (M04 report) for
seeing the head wise expenditures
22
DDU-
Types of Login GKY
Agency Login
(Data
Administrator)
Data Operator Data Approver

(Maker) (Checker)
The roles of each of this logins for SRLMs as well as PIAs will
be discussed later in the presentation
DDU-
Some points to be remember GKY
More than one Data Operator (DO) logins can

be created
Only one (1) data approver should be created
The role of Data Operator and Data approver

should not be assigned to the same person
Data Approver role should be assigned to a

higher authority official of SRLM/PIA
24
DDU-
Life cycle of PFMS functionalities GKY
2. Registration of 4. Registration of PIAs,
CTSA Mapping PIAs and
1. Registration of 3. 5. PIA& SRLM 12. Activation of

MoRD & Registration creating users Accounts for e-
DDU-GKY (MoRD) of SRLM & payees Transactions
11. 6. Transfer of 7.Transfer 9.Monitoring and

Entering funds to CTSA of Funds 8. Payments
Reporting
Legacy and SRLM to PIA via
data Electronic
Mode- e 9. 1 Tracking PIA 10.
6.1 Marking Expenditure and Utilization
Payment Certificate
Advances
receipt of funds using Print
7.1 Marking generation
in PFMS Advice
receipt of 9.2 Monitoring
funds in PFMS Bank Statements
(Receiving
central and 9.3. Monitor the Financial
state share) Transactions of each project
25 account
of PIA
DDU-


Reporting
data Electronic
Payment Certificate
Advances
in PFMS Advice
(Receiving
26 account
of PIA
DDU-


Reporting
data Electronic
Payment Certificate
Advances
in PFMS Advice
(Receiving
27 account
of PIA
DDU-


Reporting
data Electronic
Payment Certificate
Advances
in PFMS Advice
(Receiving
28 account
of PIA
DDU-
Role of SRLMs GKY
ACTORS
ACTIVITIES Data Administrator Data Operator Data Approver
Creation of DO and DA login

Activation of e-payment for
generating e-payment advise
Receiving central share and

state share
Transfer of fund to PIAs Maker will do the Checker will

entry approve the
entry
Creation of project masters for
the PIAs
29
DDU-
GKY
DEMONSTRATION OF ROLES OF SRLMs by

videos
&
PRACTICAL SESSIONS
30
DDU-
WEB Link : http://Pfms.nic.in GKY

WISDOM BEYOND BUSINESS
Login Information DDU-
GKY
Financial Log In ID and
Home Log In Year Password
Note :- The system will ask you to change your password during your first login. The system will also do this
32
periodically for all logins.
DDU-


Reporting
data Electronic
Payment Certificate
Advances
in PFMS Advice
(Receiving
33 account
of PIA
DDU-


Reporting
data Electronic
Payment Certificate
Advances
in PFMS by Advice
CTSA receipt of 9.2 Monitoring
(Receiving
34 account
of PIA
DDU-


Reporting
data Electronic
Payment Certificate
Advances
in PFMS Advice
(Receiving
35 account
of PIA
DDU-


Reporting
data Electronic
Payment Certificate
Advances
in PFMS by Advice
(Receiving
36 account
of PIA
DDU-


Reporting
data Electronic
Payment Certificate
Advances
in PFMS by Advice
(Receiving
37 account
of PIA
DDU-


Reporting
data Electronic
Payment Certificate
Advances
in PFMS by Advice
(Receiving
38 account
of PIA
DDU-
GKY
Types of Reports in PFMS
• The following table summarizes the reports available in the
system for monitoring financial position.
REPORT REPORT PURPOSE
SECTION CODE
Expenditure E10 Reports expenditure, advance and
bank statements
Monitoring M16 Reports receipts, expenditure,

advance, transfer and bank
statements
39
DDU-
Monitoring GKY
Monitor the Financial Transactions of

SRLM
each project account made by PIAs
Seek the details of unusual transactions
Unusual transactions:
 Fixed deposits (FDs)
 Large payments
 Duplication of entries
 Payment through any other mode (other than e-payment through
payment advice)
Reversal entries
40
 Credits into project account
FD Creation
DDU-
GKY
41
DDU-
GKY
42
DDU-
GKY
43
Large payments DDU-
GKY
44
DDU-
Payment through any other mode (other than e-payment through
payment advice GKY
45
DDU-
GKY
46
Reversal entries DDU-
GKY
47
DDU-
Handling issues in PFMS GKY
• PIAs to share the issues faced by them with

SRLMs by e-mail
• SRLMs should create a common e-mail ID
where issues of all PIAs can be consolidated
• One person at SRLM level should be
deputed who will be responsible for resolving
the issues
• Issues can be reported to PFMS help desk
 pfms.helpdesk@gmail.com
48
Session
Topics toTopics to be covered
be covered on Day 2on Day
DDU- 2
Activation of e-payment module GKY
Creation of DO and DA logins
Adding opening balance
Mapping training centres
Session 1: Overview of Receiving funds from SRLMs
roles and responsibilities
of PIA in PFMS
Uploading beneficiary data
Editing/Deleting beneficiary data
Recording Bank charges
Recording interest Income
Recording loans and its settlement
Recording advances and advance settlement
Uploading vendor data

Session 1 (contd)
Recording expenditures
Bulk customization
Managing deductions 49
DDU-
Role of PIAs GKY
ACTORS
ACTIVITIES Data Data Data
Administrator Operator Approver
Creation of DO and DA
login
Activation of e-payment for
generating e-payment
advise
Receiving the funds
released by SRLMs
Mapping training centres

Recording bank charges 50
and interest income
DDU-
GKY
ACTORS
ACTIVITIES Data Data Data Approver
Administrator Operator
Adding opening balance Maker will do Checker will approve

the entry the entry
Recording of the loan amount Maker will do Checker will approve

the entry the entry
and settlement of the same
Creation of vendor and Maker will do Checker will approve
the entry the entry
beneficiaries
Validation of bank accounts of Maker will do Checker will approve
the entry the entry
vendors/beneficiaries
E-payment Maker will do Checker will approve
the entry the entry
Settlement of deductions Maker will do Checker will approve

the entry the entry
(PF/TDS)
Utilization Certificate Maker will do Checker will approve
the entry 51 entry
the
Generation
DDU-


Reporting
data Electronic
Payment Certificate
Advances
in PFMS Advice
(Receiving
52 account
of PIA
DDU-


Reporting
data Electronic
Payment Certificate
Advances
in PFMS Advice
(Receiving
53 account
of PIA
DDU-


Reporting
data Electronic
Payment Certificate
Advances
in PFMS Advice
(Receiving
54 account
of PIA
DDU-


Reporting
data Electronic
Payment Certificate
Advances
in PFMS Advice
(Receiving
55 account
of PIA
DDU-


Reporting
data Electronic
Payment Certificate
Advances
in PFMS Advice
(Receiving
56 account
of PIA
DDU-
Utilization Certificate GKY

WISDOM BEYOND BUSINESS
DDU-


Reporting
data Electronic
Payment Certificate
Advances
in PFMS Advice
(Receiving
58 account
of PIA
DDU-
GKY
THANK YOU

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3.1presentation For PFMS Training (English)

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Available Formats

DDU-

DDU-GKY, April 2015. Confidential

This presentation attempts to explain about:

• Highlights from Chapter- 8 SOP(Part- 2)

• Background and objectives of PFMS

• Current and Future Capabilities of PFMS

• Role of PFMS in financial management of DDU-GKY

• Role of various Stakeholders in the management of PFMS

DDU-GKY, April 2015. Confidential

Highlights from Chapter- 8

Project Financial Procedures

DDU-GKY, April 2015. Confidential

PFMS is a monitoring tool which focuses on recording and

1. Payment of entitlement to candidates are accurate and

2. Payment of salaries to trainers, master trainers and the Q

Candidate entitlement Payment of salaries 70%

• PIA shall be accountable and • Verification of expenditure limited

Appointment of auditor(s) for the following roles:

(The auditor(s) appointed should be independent :

Process of Financial Auditing

Process of First Month Financial Auditing

Process of Monthly Financial Auditing

Process of Annual Financial Auditing

Finalize Financial Audit Certificate and Utilisation certificate

Conduct financial audit for 1st month books of account based on

30th of Submission of revised audit report if required based on the

16th of Submit Monthly Verification certificate authenticate by

Cross verify amount received as take home salary in a

26rd of Comply with the Monthly Verification report of SRLM/CTSA report

Authenticate Annual Financial Statement, Annual Audit

15th Oct CTSA to Reconcile the amount of expenditure for prescribed

CTSA to Issue an annual verification report directing the

PIA to Comply with the Annual Verification Report of SRLM/

(para 8.10.2, Activity-8)

Half yearly verification

PFMS Heads PFMS Heads

A robust 21st century system for

• Tracking of funds across the scheme hierarchy

Monitoring and Learning

MoRD CTSAs (YP)

• Receiving central share funds 6.1 Marking receipt

7.Transfer of Funds to PIA

• Receiving funds from CTSA/SRLM 7.1 Marking receipt of

• Creating vendors and beneficiaries

• Validation of bank accounts of vendors and beneficiaries

8. Payments via Electronic Mode-

These activities have relevance

• Recording interest income

• Reporting and aggregation of expenditure information

• Real-time monitoring of bank accounts

Data Operator Data Approver

More than one Data Operator (DO) logins can

Only one (1) data approver should be created

The role of Data Operator and Data approver

Data Approver role should be assigned to a

1. Registration of 3. 5. PIA& SRLM 12. Activation of

11. 6. Transfer of 7.Transfer 9.Monitoring and

1. Registration of 3. 5. PIA& SRLM 12. Activation of

11. 6. Transfer of 7.Transfer 9.Monitoring and

1. Registration of 3. 5. PIA& SRLM 12. Activation of

11. 6. Transfer of 7.Transfer 9.Monitoring and

1. Registration of 3. 5. PIA& SRLM 12. Activation of