SLNA Govt.

of Andhra Pradesh

Electronic Fund Management System (eFMS)

Situation Before eFMS

Lack of transparency and accountability.

Mode of payment either cash or cheque resulting

leakage of funds. There was a chance of ineligible person getting benefit without others knowing about it. There was also scope of adding fictitious names and middlemen benefitting out of it.

Unnecessary parking of funds where the progress is

slow and shortage of funds when progress is good.

Objectives
Facilitating successful implementation of iwmp

Transparency
Maximize accountability Minimize leakage of funds

Reduce administrative cost and effort

Timely and genuine wage payments

No shortage of funds any where at any time

Expenditure as per entitlement

Process
At SLNA level Approval & sanction is given by SCRD.

The FTO uploading is by CFO and verification of vouchers by Accounts

Officers. At DWMA level Approval, sanction and FTO uploading by PD, DWMA and verification of vouchers by Accounts officer At WCC level Approval and sanction by PD, DWMA FTO verification and uploading by PO

All Components paid through the eFMS system.

For all components ceilings are fixed as per entitlement.
Administration (ADMN)
Detailed Project Report (DPR) Institution & Capacity Building (I&CB) Entry Point Activity (EPA) Natural Resource Management (NRM) Productivity Enhancement (PE) Monitoring (MON) Evaluation (EVA)

Admin Module
Establishment costs inclusive of salaries and office maintenance are worked out and ceilings fixed with various checks and validations. Ceilings are also fixed for various sub- heads under office

maintenance on monthly/quarterly/yearly basis as per

requirement. Checks and counter checks are in-built in the system to alert when ceilings are exceeded and avoid excess payments inadvertently.

Accounts Module:
Component wise ceilings are fixed for all projects as per eligibility which ensures that the expenditure is limited to the project cost.

Module takes care of all accounting needs. It covers the works costs,
wage payments, funds receipts (allocation or otherwise) and transfer (distribution), claims, miscellaneous receipts and advances under the

scheme.
Tracking of financial discipline at various levels is possible which minimises leakage of funds. The tool of eFMS enables quick transfer of funds with transparency and accuracy.

Accounts Module (Contd...)

Delegation of financial powers is restricted to authorised users identified through Digital Signature Keys used for financial transactions. To allow flexibility in operation, advances are allowed through eFMS to

authorised officers with a check to ensure that not more than two
advances are outstanding at any point of time. Maintenance of manual accounting is also taken care by prescribing

books

like FTO register, advance adjustment register, cash book,

General Ledger are generated in the system as per required periodicity.,

Electronic Fund Management System

N E F T / R T G S
Direct Account Holders
IWMP Website IWMP Server

Bank-A

Nodal Bank Server

Bank-B

PO

Banking Correspondents

Cash Disbursement with Bio-metric authentication

WCC

District

SLNA

FTOs Process Flow in the System:

FTOs generated at various levels follow the process mentioned below: Server consolidates all FTOs and creates FTO files

All FTO files are digitally signed using SCRDs Digital Certificate
FTO files are sent to Nodal Bank through SFTP (Secure File Transfer Protocol) at schedule time every day FTO files are processed by Nodal Bank and an Acknowledgement file is sent to TCS immediately By the end of the Day, Nodal Bank sends digitally signed FTO Response File to TCS with status of each transaction (Paid or rejected with reasons) TCS server processes the FTO response file and FTO related MIS reports are populated in the Online web portal

FTOs Process Flow in the System: (Contd..)

All Rejected FTOs will be pushed back to respective levels (WCC, SLNA etc) for making necessary corrections and re-submit All wage payments are deposited to Pooling Accounts of Disbursing Agencies.

Business

Correspondents

of

the

agencies

disburse

cash

after

smartcard/biometric authentication to the labourer in the Field Rest other payments are made to concerned bank accounts payments to

SLNA, DWMA, PIA/PO, Watershed Committee, material suppliers, NGOs and

Revolving Fund to Village Organizations. Project Officer after receiving the money writes cheque and sends to

concerned party in case online accounts are not there.

Financial statements, financial and physical achievements will be shown separately for watershed and NREGS works.

FTO Generation
E-pay orders and FTOs generated to the following payments
Salaries to the Individuals and staff. Material payment to suppliers. Wages to the labour And other expenditures to the third party or PO account. Service charges and TDS to the Concerned Accounts.

Wage Payments
FTO generated for the wages through. 1. Smart Cards 2. Postal Smart Cards FTOs generated for wages for smart holders goes to the paying agency. Service charges FTO is

generated for the agency and TDS FTO generated

for the service charges which goes to the TDS

account.

Wage Payments
Postal payments:

(A)Conventional - FTO generated for labour who have

postal accounts, it credits to WCC account. After that, POs issues cheque to the head post office for the payment of wages through BPO (B) Biometric It is same as that of the Smart card payments but the payments are made by the postal dept.

WCC Bank Account

FTO generated for the other components are credited
to the WCC bank account like Telephone bills, Wage to the labour of the postal Payments. Where there is no online facility the payments deposited to WCC account through eFMS and Final payments are done through cheques of the WCC bank account.

Mode of payment

Bank (CBS)

Postal

Smart cards

VO

Conventional

Bio Metric

IWMP PAYMENT DISBURSEMENT PROCESS

HO

7 3
SO

6
3

4 6 6

APOnline Data Centre

5
BO

1
(WCC)
Muster Roll

IWMP State Data Centre

IWMP FUND FLOW

6
SO

6 3

APOnline Data Centre

5 2

8
BO

3
Fund Transfer through Bank

Govt NREGS

HO

1
(WCC)

IWMP State Data Centre

FTO Status
FTO reflects on the Web after the excel uploaded at WCCS.

FTO status can be seen in the Web site by giving the FTO
number. Web report no: 3.6

FTO Cancellation
For FTO cancellation it should be logged in RTS (Request

Tracking System) first and send a letter through P.D. with

reasons quoting the RTS number in the letter. Then only FTO will be cancelled.

DSK Digital Signature Key

DSKs issued to Project Officers of the WCCs.
DSK form is available in the IWMP web site. DSK form should be signed by the Project Officer counter signed by the authority (CEO) of the NGO organization who has signed the MoU or by the person who authorized by the authority.

Three copies of the DSKs should be submitted to DWMA and

through proper channel to the SLNA and TCS. DSK application should be attested by the Project Director of the

concerned district.

DSK Lost
1. Intimate to the SLNA (CFO), TCS through phone /
message for immediately blocking the system . 2. File FIR with the nearest police station. 3. Apply for new DSK with it cost amount payable through D.D. to the project fund of SLNA.