Odisha Watershed Development Mission PFMS for IWMP Odisha Watershed Development Mission

Public Financial Management System P F M S Public Financial Management System Formerly CPSMS Website - cpsms.nic.in The Central Plan Scheme Monitoring System (CPSMS) is an initiative of the Planning Commission implemented by the Office of Controller General of Accounts in partnership with National Informatics Centre. The initiative uses a common transaction-based on-line fund management and payment system and MIS for the Plan Schemes of Government of India.

PFMS Functionalities Monitoring funds position: Track the funds position of all registered accounts. Through a unique interface PFMS can enable monitoring of bank balances and transactions of accounts in real time. Apart from transaction data, PFMS also maintains records of all funds released for Centrally Sponsored Schemes. E-Payment Gateway: PFMS can initiate and track fund e-transfers, beneficiary and salary e-payments. Last mile e-payments made on system can be automatically filed as expenditure. Expenditure Filing: Provide a platform for expenditure filing for all schemes. Available bank balance and component wise expenditure can therefore be monitored on the same interface.

Why PFMS ? Work of CEO-SLNA Release funds in a rational manner Maintain and increase tempo of expenditure Track pace of expenditure Check parking of funds Monitor quality of expenditure Have a robust feedback mechanism Report correct expenditure and certify

WHY PFMS for IWMP ? IWMP different from other schemes Demand driven No limit to annual expenditure within norms Flow of thousands of crores Many agencies of expenditure Many levels of fund flow & expenditure Village committees doing bulk of expenditure Financial monitoring is key for assessing project performance Expenditure key to harnessing more funds

WHY PFMS ? First few review meetings showed- Erroneous reporting of expenditure at PIA & WCDC level Variation in Closing balance available in Cash Book and bank Pass Book [verified by field visits] Skewed expenditure between districts & within districts Expenditure reported was visibly false. Review meetings losing edge. District visits have limitations Hence need for an independent financial monitoring system

Review of existing practices WHY PFMS ? Review of existing practices Customized Banking Application developed jointly by NIC and Axis Bank for RADP & RKVY Financial model developed by some states-eg AP Customized applications for specific projects-Mamata/SC ST dept.

WHY PFMS ? PFMS emerged as the winner PFMS was being adopted by various centrally sponsored and State sponsored schemes Integrated Odisha Treasury Management System (IOTMS) National Rural Health Mission (NRHM) Sarva Shikshya Abhiyan (SSA) National Rural Livelihoods Mission (NRLM) Mid Day Meal (MDM) PFMS emerged as the winner

Implementation Process in IWMP Formal Letter of request to MoF, GoI to include IWMP in Odisha under PFMS.[ Oct 2013 ] Instructions to PFMS State team at Finance Department, GoO which included consultants from the WB and GoO MoF customized PFMS as per SLNA, Odisha requirements after a series of meetings and discussions with SLNA Orientation and Training of SLNA by PFMS team

Implementation process..... Registration of accounts- SLNA, WCDC, PIA, WC. Training of district and project levels. Actual use in every review meeting Monitor weekly fund position by SLNA Continuous learning process Continuous customization as per needs

Timeline Customization of PFMS for IWMP – 4 weeks Training to different stake holders – 4 weeks SLNA WCDC PIA Single Account at project level - 1 week Registration of Bank Accounts - 4 weeks Reconciliation of registered A/c -2 weeks

Scale of Implementation-Accounts Tree SLNA Accounts District Accounts PIA Accounts WC Account PIA Accounts 26 IWMP districts@ 2- 52 Accounts 272 PIA Accounts 2185 WC Accounts So far, 2511 heterogeneous bank accounts have been brought under PFMS implementation

How We Use PFMS View real time account statement of WCDC, PIAs and WCs. Reconcile closing balance with MPR, UCs Centrally monitor all financial transactions carried by PIAs and WCs, which would have been a phenomenal task in absence of PFMS. Download transaction summary & other reports for offline use. Monitor financial progress on a real time basis

Early Results….. Closure of multiple accounts Accounts / transactions tracked Identified transaction details leading to transparency in financial procedure Time lag in funds flow reduced from WCDC to PIA and WCDC to WC Able to catch reporting errors

Tracking of all accounts / transactions

Dist : Bargarh Registration Status :-Block(10 PIAs) & Panchayat (99 WCs)

Dist : Bargarh Only two Accounts (Institutional & Project fund) in operation at WCDC Level. Closing Balance as on 01-09-2014.

Dist : Bargarh Closing Balance of PIAs at a glance

Dist : Bargarh

Dist : Bargarh Closing Balance of 99 WCs at a glance

District : Malkangiri Transaction statement of WCDC Account

District : Sundargarh This entire statement can be downloaded as PDF File. Transaction statement of WCDC Account

Identified transaction details – huge impacts

Level wise Channel wise Transactions Narayan Patra, PIA, IWMP-III/2009-10 (WC level) Level wise Channel wise Transactions Controller Name : 004 - RURAL DEVELOPMENT Scheme Name : INTEGRATED WATER SHED MANAGEMENT PROGRAMME (IWMP) [9183] Period : From : 01 April 2014 To : 25 July 2014 State : ODISHA Amount From Range : 100 Amount To Range : 100000000 Level : - All - Transaction Type : Both Channel : Agency Name : WC MAJHIGUDA ,MAJHIGUDA/IWMP-III S No. Transaction Date Transaction Type Dr Amount Cr Amount Cheque No Remarks   1 04 Apr 2014 Debit 42,165.00 0.00 638869 to occf ltd 2 01 May 2014 Credit 30,000.00 By NEFT-UTR-ANDBN14121525049WATERSHED 3 26 May 2014 1,54,140.00 638870 tfr sb 4 12 Jun 2014 1,16,230.00 638871 TO LABOUR 5 20 Jun 2014 1,00,000.00 By NEFT-UTR-ANDBN14171855880WATERSHED 6 16 Jul 2014 1,79,790.00 638873 SB A/CS Total : 492325 130000 Uniform amount transferred to watershed committee

Level wise Channel wise Transactions Narayan Patra, PIA, IWMP-III/2009-10 (WC level) Level wise Channel wise Transactions Controller Name : 004 - RURAL DEVELOPMENT Scheme Name : INTEGRATED WATER SHED MANAGEMENT PROGRAMME (IWMP) [9183] Period : From : 01 April 2014 To : 25 July 2014 State : ODISHA Amount From Range : 100 Amount To Range : 100000000 Level : - All - Transaction Type : Both Channel : Agency Name : WC BALIGAON JALABIBHAJIKA-BLIGAON-II,SINDIAGUDA/IWMP-III S No. Transaction Date Transaction Type Dr Amount Cr Amount Cheque No Remarks   1 09 Apr 2014 Debit 78,840.00 0.00 217363 TO TRF 2 22 Apr 2014 1,67,000.00 217364 to trf 3 01 May 2014 Credit 30,000.00 By NEFT-UTR-ANDBN14121524977WATERSHED 4 26 May 2014 95,040.00 217365 sb var. 5 03 Jun 2014 82,250.00 217366 y/s 6 20 Jun 2014 1,00,000.00 By NEFT-UTR-ANDBN14171855573WATERSHED 7 26 Jun 2014 82,300.00 217367 Total : 505430 130000 Uniform amount transferred to watershed committee

Level wise Channel wise Transactions Narayan Patra, PIA, IWMP-III/2009-10 (PIA level) Level wise Channel wise Transactions Controller Name : 004 - RURAL DEVELOPMENT Scheme Name : INTEGRATED WATER SHED MANAGEMENT PROGRAMME (IWMP) [9183] Period : From : 01 April 2014 To : 25 July 2014 State : ODISHA Amount From Range : 100 Amount To Range : 100000000 Level : - All - Transaction Type : Both Channel : Agency Name : PIA CUM JSCO ,BOIPARIGUDA /IWMP-III S No. Transaction Date Transaction Type Dr Amount Cr Amount Cheque No Remarks   1 02 May 2014 Debit 6,500.00 0.00 501485 self 2 02 Jun 2014 Credit 5,00,000.00 BY RTGS-ANDB0001324-/132410100020083 S C O CUM P 3 03 Jun 2014 1,32,000.00 501486 y/s 4 17 Jul 2014 70,000.00 501489 bikeswar 5 10,000.00 501490 TO SELF Total : 218500 500000

IWMP-VII/2012-13 (WC level) Malkangiri Secretary WC made cash transaction

N.K.Jena, PIA, IWMP-II/2009-10 (PIA level) Nawarangpur Remunerations paid to WMT in single transaction (1 year salary)

IWMP-II/2009-10 (WC level) Nawarangpur Project fund transferred in shape of Demand Draft

PFMS included in Financial Monitoring

Some interactive PFMS Training Session for TEs and PIAs at OWDM.

Issues All Banks not equally IT enabled .eg.gramya Banks, Co-Operative Society Banks . 100% agency registration a must. A lower level agency cannot access accounts of an upper level agency. Require good Internet Connectivity. Need to actively follow up with districts. Need a team at SLNA to continuously monitor data generated. Needs continuous customisation

PFMS works !!!!!

Way Forward Expenditure filing will start in two districts on pilot basis. E-Payment Gateway tools for payment of salary of WMTs, Secretaries of WC

Thank You Watershed Mission Complex, Siripur, Bhubaneswar , PIN- 751003 Phone No: 0674- 2397308 / 2397309 email: iwmporissa@gmail.com website: http//www.orissawatershed.org