PUBLIC FINANCIAL MANAGEMENT SYSTEM SPMU, PFMS Project Cell O/o Controller General of Accounts Ministry of Finance, New Delhi all Participants To Workshop On Introduction

Introduction What is PFMS? Mandate for PFMS Implementing Authority Objectives of PFMS Benefits of PFMS Modules of PFMS What is EAT Module? What is DBT?

What is PFMS? Public Financial Management System(PFMS) earlier known as Central Plan Scheme Monitoring System (CPSMS). PFMS is being implemented by the Office of Controller General of Accounts which is the apex accounting authority of the Government of India under Ministry of Finance with the name-”CPSMS” w.e.f. 01.04.2008 & renamed “PFMS” W.E.F. 01.04.2014. Public Financial Management System is web based Monitoring of Central Sector/Central Sponsored Schemes in GOI. PFMS is a web-based online transaction system for fund management and e-payment by using Core Banking Solutions(CBS) of Banks.

Mandate For PFMS Hon’ble Finance Minister announced the scheme in his budget speech during 2008. Expenditure Finance Committee of the Planning Commission approved the implementation of PFMS. Secretary (Expenditure), Ministry of Finance, New Delhi asked all Ministries to implement PFMS. To provide information across all plan schemes/ implementation agencies in the country on fund utilization leading to better monitoring, review and decision support system to enhance public accountability in the implementation of plan schemes. 

Implementing Authority The office of the Controller General of Accounts (CGA), which is the apex accounting authority of the Government of India under Ministry of Finance, is implementing the Public Finance Management System in the entire country. The scheme is being implemented by the Office of the Controller General of Accounts through the web based application developed and deployed by NIC in tandem with well established accounting software viz., COMPACT & e-lekha. The complete technical support viz. application development, database administration, hosting of portal etc has been entrusted to NIC.

Objective of PFMS Tracking of flow of funds from Centre to the lowest level of implementation- both under SPV (Special Purpose Vehicle Route) & Treasury route. On line information on bank balances to facilitate “Just in time” provision of funds to implementing agencies. Real time data on fund utilization : bank reconciled & transaction based Decision Support System (DSS) for all levels of program administration Enhance transparency & accountability in public expenditure. Dissemination of financial information to citizens.

Benefits of PFMS “Just in time” provision of funds to lower level agencies. Financial inclusion at the lowest level of scheme hierarchy, Efficient devolution of funds as scheme administrators can now redirect funds to needy areas, based on visibility of actual balances. Major reduction in delays in transfer of funds to lower levels through NEFT (National Electronics Funds Transfer System)/RTGS (Real Time Gross Settlement) possible under CBS(Core Banking System). Better monitoring of programmes possible by tracking flow of funds through bank transactions. Direct credit of accounts of beneficiaries.

Modules of PFMS 1. Agency Registration Module: Agencies get mapped in scheme hierarchy. Level wise bank account balances & daily transactions available. 2. Expenditure Filing Module: Component-wise Fund Utilization available - Expenditure/Advances/Transfers. Cheque validation facility for ensuring exp. filing. 3. e-Payment Module: Direct credit to beneficiaries (scheme & bank independent). e-Transfers to vendors, employees & other institutions. Ensures compulsory expenditure filing.

What is EAT? E stands for Expenditure. Expenditure is done for running office requirement. A stands for Advance & settlement. Advance is given to Vendors, Staff and Beneficiaries for supply or service. T stands for Transfer. Transfer is always to the lower level agency. EAT Module is also called as Expenditure Filing Module

Expenditure Filing The process of feeding the day to day transactions as recorded in the cash book on the PFMS portal by an agency registered on PFMS, is called expenditure filing. The expenditure gets recorded in the cash book of the agency on the PFMS system.

DBT Module Direct Benefit Transfer through PFMS designed to provide an end to end solution for Fund Management at all levels. Minimal failure due to pre-validation of bank accounts due to lookup in NPCI (National Payment Corporation of India) mapped by sponsor bank. PFMS is the front end- settlement systems and NPCI,NEFT/ECS (Electronic Clearing Service) are back end systems for payments.

PFMS Portal PFMS Portal can be accessed by login through http://pfms.nic.in The detailed information about PFMS is available on home page of this Portal.

3 Steps for making PFMS portal Operative Creation of Scheme by SPCU- (i) Creation of Scheme (ii) Scheme Hierarchy, and, (iii) Insertion of Scheme’s Components 2. Creation and Approval of Users by FD- (i) Creation of SSM, (ii) Creation of Agency Approver Level 2, (iii) Creation of MIS User 3. Creation of Agency Admin- by self or SSM

Creation of Scheme: For creating scheme Go to Masters-> Create New Scheme. Fill all the required fields and click on Submit

Scheme Hierarchy: Scheme Hierarchy means the flow of the funds Scheme Hierarchy: Scheme Hierarchy means the flow of the funds. To define the hierarchy of the scheme. Go to My Schemes->Scheme Hierarchy->Manage Scheme Hierarchy.

Scheme’s Components: Here activities to be defined, Migrated the components with centre schemes. Go to My Schemes->Scheme Components.

Creation/ Approval of Users: All user will be Created and Approved by Finance Department, Haryana. Creation of State Scheme Manager To manage the State Scheme & Account related activities. Creation of Agency Approver level 2 To Approve any updation in the Agency like contact details update, new scheme added. 3. Creation of MIS User Only for Reports. Like M-10, E-10, E-19

State Scheme Manager: SSM will be created and approved by Finance Department User, Haryana. Go to Users->All type User Registration. Select user type SSM.

Agency Approver Level II: Level II will be created and approved by Finance Department user. Go to Users->All type User Registration. Select user type Agency Approver Level II.

MIS User: MIS user will be created and approved by Finance Department user. Go to Users->All type User Registration. Select user type MIS User.

Approval of User: For the approval user Go to Users->Manage

Scheme Name with State Scheme Code HR1- CASH AWARD SCHEME FOR SC STUDENTS (BOYS AND GIRLS) STUDYING IN 1ST TO 8TH CLASSES HR3- EDUCATION ENCOURAGEMENT OF EXCELLENCE SCHOLARSHIP FOR STUDENTS STUDYING IN CLASSES 6th to 8th.(RAJEEV GANDHI SCHOLARSHIP SCHEME) HR4- MONTHLY STIPEND TO SCHEDULED CASTE STUDENTS FOR CLASSES 1st TO 8th(SC MONTHLY) HR5- MONTHLY STIPEND TO BPL STUDENTS FOR CLASSES 1st TO 8th. HR6- MONTHLY STIPEND TO BC-A STUDENTS FOR CLASSES 1st TO 8th.

Contact Details SPMU, PFMS Haryana, Room No: 223 Sector-4, Yojna Bhawan, Panchkula Office No.: 0172-2584223 Email- Id: pfmspmharyana@gmail.com Sh. Satinder Singh, Project Manager, 9315173466