Integrated Financial Management System

Meeting on

Expenditure Data Capturing of “Works Department”

(Online LoC Module in IFMS )

22nd August , 2012

Presentation by

National Informatics Centre, Jaipur

Integrated Financial Management System

Agenda Points

1. Existing System

• Flow of information • LoC issue process • Cheque preparation and issue process • Deposit Heads • Deposit Works process

2. Proposed System

• Proposed Flow • Sub- Modules to be developed

LoC

Monthly Account to AG with Treasury Certificate

HoD ( Works Department)

Divisions 1

Bank

Treasury Finance

Department Further LoC to

offices

Authorized copy of LoC

Issues LoC Lump sum

Divisions 2

Divisions 3….

Letter of Credit for works Departments : Existing Flow

Reconciliation by Divisions at

Treasury

Accountant General (AG)

Treasury Submits Monthly Statement

of remittance cheques

LoC

After Payment Cheques to treasury

Issue Cheques according to

LoC

Checkbook issue

Check

book issue

Letter of Credit is issued by

Finance Department HoDs( Works Department)

Finance department issues LoC No Fixed pattern

Scheme wise Lump sum Major head wise Lump sum

HoD (Works Department) issues LoC

LoC for deposit Amount only No fixed pattern Further distributes the amount received from FD to subordinate offices

Letter of Credit (LoC) Issue process : Existing Flow

Cheque Preparation process

Contractor submits the bills. Based on the work details in the bill, budget head is identified Check the availability of budget according to LoC Based on the availability ,bills are cleared, following records are maintained:-

Payable amount in a particular bill , if payable amount is not equal to the bill amount then details like

service tax ( corresponding budget head is credited) security deposit(corresponding budget head 8443 is credited) other

if payable amount is equal to the bill amount then specify the category of payment categories are

security deposit ( deposit head 8443 will be debited)

Cheque Issue Process One cheque for many bills of one contractor. One cheque may include amount from

State Budget Deposit work amount

At Treasury Receives cheques from Banks No details of expenditure head Cheque contains amount of multiple works

Cheque Preparation & Issue process : Existing Flow

Copy of challan & Request for LC

Deposit works Process: Existing

MLA/MP Fund

Local bodies

Individual

Direct CSS

Deposit Work

Bank Division Deposit through

Challan

Maintain Register/ Ledger •Work Detail •Amount deposited

•Total Deposit Amount in a particular work

HoD (Works Department )

Cheque

Treasury

AG Intimation to AG in case of CSS

Amount deposited in three categories

1st Deposit Not in use as of now

2nd Deposit

Security Deposits

3rd Deposit From Local Bodies (University, MP/MLA Fund, )

4th Deposit Not in use as of now

5th Deposit

Earnest Money Amount withheld because of Non availability of LC Amount withheld for any other reason

???Direct from Central Government

Deposit Heads: Existing

Work 1 Work 2 Work 3 Work 4

Contractor 1 Contractor 2

PWD Division

XEN Officer

Cheque Preparation

& Budget Control

Cheque Entry at Compilation Section

of Treasury Link with Service Head

Details

AG

Budget Bills

Bill 1 Bill 2 Bill 3

Payment Information

Account to AG

New Reconciliation Report

LoC : Bill Process at works Department Su

bm

it Mo

nth

ly Acco

un

t to A

G

Cheque to Contractor

Cheque for Payment

( Bank Scroll with Cheque )

Bill 4

HoD

………

Cheque

BANK

TREASURY

One Check for One Bill

…………..

One Cheque for Multiple Bills

S.No Type Head Debited Head Credited

Civil Work

1 Major Head 2054 100

2 Amount Transferred to Division 100.00

3 Bill Submitted By Contractor 100.00

4 Actual Payment to Contractor 80.00 2054 by 100 8782 by 80

5 Security Deposit 10.00 8443 by 10

6 Service Tax 5.00 0054 by 5

7 Penalty 5.00 0030 by 5

Deposit Work

1 Amount received from say MLA 100.00 8782

3 Bill Submitted By Contractor 100.00

4 Actual Payment to Contractor 80.00 8782 by 100 8782 by 80

5 Security Deposit 10.00 8443 by 10

6 Service Tax 5.00 0054 by 5

7 Penalty 5.00 0030 by 5

Proposed System

Letter of Credit (LoC) : Proposed Process

Following online sub-Modules are to be developed:

Module for Letter of Credit issued by Finance Department.

Module for Letter of Credit issued by Works Department.

Module for Deposit amount Maintenance.

Module for Cheque Book Maintenance

Master Maintenance ( Works, Contractors etc)

Module for Budget Control at Works Department

Module for Bill Entry

Module for Maintenance of Works Details

Module for cheque preparation and printing.

Module for Interface with Budget and Treasury application

Module for Interface with AG.

Module for LoC issued by Finance Department : Proposed Process

LoC will be issued Budget Head wise (15 Digit) Amount can be transferred in installments/Phases

Single 15 digit budget head or all the budget heads of a particular scheme may

be selected at a time.

In case of scheme, all the budget heads of a particular scheme linked to the

selected department will be displayed and amount may be transferred accordingly.

FD will have to specify the budget heads on which LoC is applicable so that at the

time of bulk transfer from FD to HoD these heads will be treated as exception entry.

Scheme wise reports can always be generated as budget heads are linked with schemes

Online intimation of issues of LoC to the Works departments.

LoC

Monthly Account to AG with Treasury Certificate

HoD ( Works Department)

Divisions 1

Bank

Treasury Finance

Department

Further LoC to offices

Authorized copy of LoC

Divisions 2

Divisions 3….

Letter of Credit for works Departments Proposed Flow

Reconciliation by Divisions at

Treasury

Accountant General (AG)

Treasury Monthly Accounts includes

these cheques

LoC

After Payment Cheques to treasury

Issue Cheques according to

LoC

Checkbook issue

Check

book issue

Loc Module Budget Head

wise

Loc Module Budge t Head

Including deposit Works wise

Deposit Works

Maintenance

Cheque Book Control/

automatic reconciliation

Budget Control

AG Interface

Bank Interface

Cheque Preparation process Contractor submits the bills. Based on the work details in the bill, budget head is identified Check the availability of budget in the particular budget head based on LC Based on the budget availability ,bills are cleared

Enter payable amount, if payable amount is not equal to the bill amount then enter

service tax security deposit other sum of all the above + payable amount=billamount Amount of all the above category is transferred to budget head 8443

if payable amount is equal to the bill amount then specify the category of payment categories are

Refund of civil deposit like security deposit ( deposit head 8443 will be debited) Petty Payments

Cheque Issue Process One cheque for many bills of one contractor. One cheque may include amount from

State Budget Deposit work amount

Cheque Preparation & Issue process : Proposed

HoD ( Works Department)

Divisions 1

Bank

Treasury

Finance department

Further online Release Budget to offices

Online Intimation to Banks

Online Budget Head wise( 15 digit)

Distribution/ in Installments

Divisions 2

Divisions 3

Module to Issue cheques

According to Budget Availability

Cheques to Third Party

Letter of Credit for works Departments : Proposed flow

Checkbook issue

Automatic Reconciliation

Reports

Accountant General (AG)

Monthly Account to AG Treasury Monthly Accounts includes

these cheques

Link of Treasury System

Cheques to treasury

After Payment