1. Annexure: VII Important Financial issues
Expenditure Finance Committee (EFC)/ Standing
Finance Committee (SFC)
Utilization of funds within valid re-appropriations
Timely Monthly Expenditure Reporting
Regular monitoring and settlement of Advances
Stringent monitoring of outstanding audit paras
Timely Refund of Unspent Balances of previous years
New Initiatives of Government
Introduction of PFMS/DBT
Implementation of Revised GFR, GeM and GST

2. Expenditure Finance Committee (EFC) and Standing Finance Committee (SFC)
The Five Year plan has given way to the three year Action plan culminating with the tenure of the present Finance Commission.
Institutes may ensure that the expenditure are incurred strictly as per the provisions of approved EFC/ SFC memo.
Pending clearance of EFC/SFC, expenditure may be incurred in accordance with the instructions issued by PIM division.

3. Utilization of funds within proper Re-appropriations
The expenditure should be made in the appropriated heads.
Re-appropriation powers are defined at each level and should be followed strictly.
Re-appropriation among Grants-in-aid-Salaries, Grants-in-aid-General and Grants-in-aid-Creation of Capital Assets is not permissible at all at ICAR level. Such re-appropriations are done with the approval of the Parliament only.
All officers must follow the delegation of powers to avoid any financial mis-appropriations and to ensure proper utilization of funds.

4. Timely Monthly Expenditure Reporting
ICAR units are required to submit the monthly report on utilization of funds within 2 days of the closure of previous month for furnishing of such information in the SOC (Sr. Officers’ Committee) meeting at ICAR Hqrs
ICAR is required to furnish monthly expenditure to the Ministry of Finance
The utilization of funds affects the subsequent release of funds to ICAR hence, efforts should be made for optimum and prudent utilization of funds on monthly basis

5. Regular monitoring and settlement of Outstanding Advances
Outstanding Advances are indicative of financial irregularity and misappropriation
Long pending outstanding advances need strict follow up actions and remedial measures and these issues must be given top-most priority
Keep a strict monitoring on settlement of outstanding advances at regular intervals
Progress: Outstanding Advances of Rs crores have been settled in recent times.

6. Stringent monitoring of outstanding audit paras
Take both internal and external Audit seriously
Make all out efforts to settle the audit paras instantly
The Paras which need follow up actions and remedial measures, must be given top priority
Keep a strict monitoring on settlement of audit paras at regular intervals
Progress: 404 audit paras (41%) out of 993 pending audit paras in 114 ICAR units have been settled in recent times.

7. Refund of Unspent Balances of previous years
Unspent balances of previous years should be refunded soon after the financial year close. The Budget provision for all the schemes/ projects funded by GOI gets lapsed with the end of each financial year. ICAR receives fresh grants for all the projects/ schemes on annual basis as per the Budget Provision of each year.
ICAR needs to refund unspent funds to the Ministry of Finance every year.

8. New Initiatives by GOI
GFRs 2017
PFMS
Direct
Benefit
Transfer

9. Introduction of PFMS / DBT
Public Financial Management System (PFMS) serves as a common central portal for registering implementing agencies and beneficiaries. PFMS, a transaction based system, has been designed for fund management and to provide real-time utilization of funds for schemes of Govt. of India.
GOI has mandated complete rollout of PFMS by 30th Sept
Direct Benefit Transfer (DBT) ensures transfer of amounts due to the beneficiary directly to her/his Aadhaar linked bank accounts thereby eliminating the existing intervening layers.
Progress: Trainers’ training on PFMS has been conducted in ICAR and also PFMS trainings have been/ are being imparted by Axis Bank and other local PFMS offices. All out efforts should be made to meet the deadlines set by the GOI.

10. Implementation of Revised GFR, 2017 GeM and GST
GFRs 2017: The revised General Financial Rules 2017 have been implemented and must be complied with, in letter and spirit.
GeM (Government e-Market place): An online Government e-Marketplace for common use Goods and Services. Procurement through GeM has been made mandatory.
GST (Goods and Services Tax) : Registration ICAR institutes is mandatory. Institutes already registered under service tax are required to migrate to GST.