PCU OFFICE HOD OFFICE PROCESS FOR RELEASE OF FUND DDO OFFICE

SANCTION & FUND RELEASE POWERS Based on approved AWP/Administrative Approval, HODs move PCU for schematic/activity wise sanction proposal(s) All schemes upto Rs lakhs- by SPD All schemes above Rs lakhs and upto Rs lakhs - by SPD with approval of APC All schemes above Rs lakhs-by SPD with approval of Sanction Sub Committee (SSC) Schemes under direct implementation responsibility of PCU, and costing upto Rs lakhs -by SPD Sanctions above Rs lakhs for schemes, which are under direct implementation responsibility of PCU, is accorded by SPD with approval of APC

PARENT-CHILD BANK ACCOUNTS On recommendation of the World Banks May 2012 Mission, Parent-Child Bank Account Systems started under AACP-AF from June, 2012, as an effort towards Better Fund Management for efficiency in Financial Management MOU signed with 3 Banks with coverage in Maximum Districts 1.Union Bank of India 2.United Bank of India 3.UCO Bank Continued

PARENT CHILD BANKS ACCOUNT Department wise Parent-Child Bank Accounts with 1.Union Bank of India - PWD and Forest 2.United Bank of India - Agriculture and Fisheries 3.UCO Bank - Dairy and A.H. & Veterinary Banks submit monthly MIS report of Parent-Child A/c to PCU.

PCU OFFICE PCU fixes limit for Accounting Centre (Child Account) depending on the FRP and the limit is intimated to the bank as well as to Accounting Centre. PCU fixes limit for Accounting Centre (Child Account) depending on the FRP and the limit is intimated to the bank as well as to Accounting Centre. After approval of Sanction & Fund Release Proposal by PCU Each Accounting Centre has opened zero balance bank account (Current Account) with a convenient branch of the same bank where the parent account is opened by PCU for respective line Departments. Any payment made from child account within the limit would be swept from the Parent Account (PCU) at the end of every day. The Accounting Centre disburses fund to the extent of available limit, no cheque / draft beyond the limit would be honoured by bank. Fund are released electronically to the beneficiary groups/contractors/suppliers etc. by the Accounting Centre. The beneficiary groups/contractors/suppliers open bank account with branches having electronic fund transfer facility. Each Accounting Centre has opened zero balance bank account (Current Account) with a convenient branch of the same bank where the parent account is opened by PCU for respective line Departments. Any payment made from child account within the limit would be swept from the Parent Account (PCU) at the end of every day. The Accounting Centre disburses fund to the extent of available limit, no cheque / draft beyond the limit would be honoured by bank. Fund are released electronically to the beneficiary groups/contractors/suppliers etc. by the Accounting Centre. The beneficiary groups/contractors/suppliers open bank account with branches having electronic fund transfer facility. DDO OFFICE BANK FUND RELEASE PROCESS IN PARENT-CHILD BANK ACCOUNT SYSTEMS FUND RELEASE PROCESS IN PARENT-CHILD BANK ACCOUNT SYSTEMS

DDO OFFICE BANK After receiving the Fund Limit Intimation Order by the DDOs, fund are released immediately through electronically (RTGS) to the beneficiary groups/contractor etc. After receiving the Fund Limit Intimation Order by the DDOs, fund are released immediately through electronically (RTGS) to the beneficiary groups/contractor etc. All payment made through bank/electronic transfer, a payment advice letter send to the bank with cheque, with detail like – 1.Beneficiary Group / Contractor name 2.Name of the Bank with branch 3.Full A/c No. 4.IFSC Code 5.Transfer Amount 6.Mobile No. of the Beneficiary Group / Contractor. All payment made through bank/electronic transfer, a payment advice letter send to the bank with cheque, with detail like – 1.Beneficiary Group / Contractor name 2.Name of the Bank with branch 3.Full A/c No. 4.IFSC Code 5.Transfer Amount 6.Mobile No. of the Beneficiary Group / Contractor. FUND RELEASE PROCESS IN PARENT CHILD SYSTEMS FUND RELEASE PROCESS IN PARENT CHILD SYSTEMS

FUND RELEASE PROCESS IN PARENT CHILD SYSTEMS FUND RELEASE PROCESS IN PARENT CHILD SYSTEMS BANK After receiving of payment advice letter by Bank, Bank transfer fund to beneficiary groups / Contractor etc. through RTGS/electronically & also send SMS alert to PCU, DDOs Office & beneficiary groups /contractor etc. After receiving of payment advice letter by Bank, Bank transfer fund to beneficiary groups / Contractor etc. through RTGS/electronically & also send SMS alert to PCU, DDOs Office & beneficiary groups /contractor etc. Your Account have been Credited by Rs. xxxxxx PCU have viewing right of the transactions of bank accounts of all accounting centers. Nodal Office of each line department has also viewing right of transactions of bank account of all the accounting centre under the respective line Dept DDOs of each department has viewing right of transaction of bank account of Child A/c. PCU have viewing right of the transactions of bank accounts of all accounting centers. Nodal Office of each line department has also viewing right of transactions of bank account of all the accounting centre under the respective line Dept DDOs of each department has viewing right of transaction of bank account of Child A/c.

BOOK KEEPING IN PARENT-CHILD ACCOUNTING SYSTEMS BOOK KEEPING IN PARENT-CHILD ACCOUNTING SYSTEMS In PARENT A/c 1.In Cash Book Fund Limit Amount booked 2.Bank Reconciliation (difference between Fund Limit issue by Parent A/c & Fund Limit Drawn by Child A/c) In CHILD A/c 1.Transaction amount is booked in receipt & payment side of cash book of all ACs. 2.Bank Reconciliation

DISTRICT ACCOUNT MANAGER PCU appointed 10 (Ten) nos. of District Account Manager (DAM) under AACP- Additional Financing. Each DAM is assigned 4 to 6 Accounting Centre in respective Districts. Objective: Improve timeliness of financial reporting from various accounting centers As IUFR based disbursement require timely receipt of IUFRs DAMs primarily responsible for updating monthly accounts from manual cash book and ledgers maintained by accounting centers send reports to PCU for consolidation on a monthly basis support/train community groups on FM aspects Continued

DISTRICT ACCOUNT MANAGER DAM assist Accounting Centres (AC) for preparing Accounts Enter data in accounting software (Tally) from ACs Cash Book Prepare and submit Monthly/Quarterly Reports. Verify manual Cash book of ACs with supporting vouchers. Assist and guide the ACs on accounts matter. Assist ACs in Audit matters. Verify books of accounts of BRC/beneficiary groups from time to time.

TRAINING ON PARENT-CHILD ACCOUNTING SYSTEMS TRAINING ON PARENT-CHILD ACCOUNTING SYSTEMS PCU conducted detailed training programs for Accounts Staffs of Accounting Centres as well as for District Accounts Managers.

Monthly Reimbursement Report Submitted to PCU and their HODs Due Date15 th of the following month Required supporting documents 1. Bank Reconciliation statement 2. Photocopy of original bank statement Responsibility for preparation of report DAMs prepare reports & submit to PCU with signature of DDOs in the IUFR formats MONTHLY REIMBURSEMENT CLAIMS Submission by Accounting Centres MONTHLY REIMBURSEMENT CLAIMS Submission by Accounting Centres

Reimbursement Claim for AF-AACP is IUFR based. Accounting Centers submit reimbursement claim directly to PCU in IUFR format with a copy to HoD. PCU compile data and submit consolidated IUFR to the World Bank for approval. On receipt of no-objection from the World Bank PCU submit reimbursement claim to Controller Aid, Accounts and Audit (Government of India) in IUFR format. REIMBURSEMENT CLAIM

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