A PRESENTATION - · PDF fileTo overcome the shortcomings in the existing system, PFMS is the...

A PRESENTATIONA PRESENTATION

CPWD –AN INTRODUCTION

Field organisation for construction, repair and maintenance work of the central government.

There are around 4oo DDOs. There are around 4oo DDOs.

Out of which around 275 are working as CDDOs

166 DDOs and CDDOs are integrated with Nirman-Lekha

Present scenario of expenditure management in CPWD

AT present CPWD uses multiple applications for expenditure management :-expenditure management :-

E-LEKHA- for E-payment, booking of expenditure and processing of LOC

Nirman Lekha- for e-payment

Nirman info jyoti-for accounting purpose

ERS-Expenditure Reporting System

Use of multiple applications creates-

Difficulty in reconciliations between various channels

Cont.

Difficulty in reconciliations between various channels as between DDOs and PAOs,DDO v/s CDDO, etc

DUAL system-166 divisions are on Nirman lekha and are capable of making e-payments while rest of the divisions are following manual procedure.

Cont. Difficulty in issuing LOC-two modes are being used for

LOC-offline for Divisons without Nirman Lekha and Online for divisions with Nirman Lekha-this create difficulty in generating composite reports as well difficulty in generating composite reports as well causes delay in procession of LOC

Various providers involved

Different modules for different reports

PFMS-

• PFMS(Public Finance Management System)is a web based application developed by the O/o CGA,Deptt of Expenditure

• It is a platform which provides payment, accounting • It is a platform which provides payment, accounting and reporting tools for efficient and effective expenditure management.

• It provides real time monitoring

• PFMS has been implemented in M/o Urban Development(except CPWD) for all plan and non plan expenditure since Octomber,2015

Advantage of PFMS

ONE solutions for all-Payments,Accounting,Reporting

Real time solutions-prevent delay and reduce time gapeReal time solutions-prevent delay and reduce time gape

Cost efficient-web based application-no specific hardware is required

Dedicated team to provide technical support

BRD for CPWD-PFMS Integration

©PFMS 2015, All Rights Reserved with PFMS, O/o Controller General of Accounts, Min. of Finance, GOI Page 1

Business Requirement Document

for Urban Development-PFMS Integration

Prepared for

Controller General of Accounts, Ministry of Finance

Friday, 15 July, 2016

Version 1.1



Document Release Note

Project Name: CPWD and PFMS Integration

Document Name: Business Requirement Document

Version: 1.1

Release Date: 21 July 2016

Prepared By: Kajal Kumari Date: 21 July 2016

Reviewed By: Punit Srivastava Date:

Approved By: Alok Verma Date:

Document Revision History: S.No Revision Date Revision Description Release Date

1. 21 July 2016 Initial Draft

2. 27 July 2016 Added LOA, LOC, Receipts and Cashbook and updated process flow diagram



Contents 1 Introduction .................................................................................................................................... 4

1.1 Overview ................................................................................................................................. 4

1.2 Purpose ................................................................................................................................... 4

1.2.1 Existing Process for CPWD .............................................................................................. 4

1.2.2 Proposed PFMS Process for CPWD Division.................................................................... 5

1.3 Actors ...................................................................................................................................... 7

1.4 Abbreviation............................................................................................................................ 7

2 Business Requirement .................................................................................................................... 8

2.1 Recommendation: ................................................................................................................. 10

3 Application Features ..................................................................................................................... 11

3.1 Invoice Details ....................................................................................................................... 11

3.2 CPWD Module at PFMS ......................................................................................................... 11

3.2.1 Advantages of PFMS for CPWD Divisions. .................................................................... 11

3.3 Account Tracking ................................................................................................................... 12

3.4 Project Maintenance ............................................................................................................. 12

4 At CPWD Divison ........................................................................................................................... 12

4.1 LOA (Letter of Acceptance) ................................................................................................... 12

4.2 LOC (Letter of Credit) ............................................................................................................ 12

4.3 Receipts ................................................................................................................................. 12

4.4 Cashbook ............................................................................................................................... 12

5 Reports: ......................................................................................................................................... 13

6 Reference ...................................................................................................................................... 13

Table of Figures:

Figure 1: Existing Process flow of CPWD ................................................................................................. 5

Figure 2: PFMS process flow for CPWD .................................................................................................. 6



1 Introduction

1.1 Overview The CPWD serves as the field organization for construction, repair and maintenance works of the

central Government. The CPWD is responsible for detailed execution of policies and works across

the country. There are around 400 DDOs of CPWD, out of which, there are around 275 DDOs

functioning as Cheque Drawing Divisions (the list of CDDOs is enclosed). The power of cheque

drawing to these DDOs is granted by the office of Principal Accounts Office, Ministry of Urban

Development after approval of Controller General of Accounts Office. In 275 CPWD divisions, a

system of cheque drawing powers is under operation wherein Letter of credit is issued to authorize

Executive Engineers of CPWD to make the payments relating to works for which the budget is

allocated to CPWD. This provision authorizes the Executive Engineers to act as deemed PAOs

wherein they themselves issue the sanctions and also make the payments and subsequently submit

list of payments / accounts to Pay & Account Officer for consolidation of accounts. The LOC is given

to the division against the budget allotted by the respective Chief Engineer of CPWD. For accounting

purposes, the CPWD follows the CPWA code which is at little variance with the provisions of the Civil

Accounts Manual for submission of accounts.

1.2 Purpose The objective of this document is to share the business requirement of the proposed integration of

CPWD and PFMS module. As the proposed application is expected to be used by the officials under

the administrative control of Controller General of Accounts and CCA and CPWD.

1.2.1 Existing Process for CPWD In current Scenario, Due to manual circulation of data it become prolong data, moreover, the major

limitation in the system, as pointed out by CGA, is unavailability of daily tracking and monitoring of

expenditure, automation of accounts, non-digitally signed data from PAO. The day to day

accounting of the receipts and payments were not being captured by the Nirman Info Jyoti

application leading to inadequacies in expenditure control and reconciliation processes which are

necessary for sound financial and accounting management as accounting and financial reports was

not prepared from original documents (vouchers & Challans).



Figure 1: Existing Process flow of CPWD

1.2.2 Proposed PFMS Process for CPWD Division PAO can make the all types of payments pertaining to CPWD divisions using the Public Financial

Management System. Executive Engineer may function as non- cheque drawing & disbursing officers

and Divisional Accountant can assist him in other day to day works such like tender processing etc.

To overcome the shortcomings in the existing system, PFMS is the absolute solution to incorporate

the process for best. PFMS, a Web based centralized application aims to replace the current off and

on manual process and brings the daily tracking & monitoring of reconciliation and expenditure

(since accounts are being sent to PAO only once a month), electronic audit trail of bills passed,

automation of accounts, compilation of accounts etc. in the system of application to aid

shortcoming.



Figure 2: PFMS process flow for CPWD



1.3 Actors The actors for the application are listed below:

At CPWD (For administrative purpose):

Controller/PrAO

JE

SDO

At PFMS:

PD

Dealing Hand

Assistant Account Officer (AAO)/EE

Payment Account Officer (PAO)

1.4 Abbreviation

Terminology Definitions

PrAO Principle Account Office

DH Dealing Hand

AAO Assistant Account Officer

PAO Payment Account Officer

CCA Chief Controller of Accounts

CPWD Central Public Work Department

CPWA Central Public Work Account

CDDO Check Drawing and Disbursing Office

PD Program Division

JE Junior Engineer

PFMS Public Financial Management System

COMPACT Comprehensive Account

LOC Letter of Credit

LOA Letter of Approval



2 Business Requirement The following are the identified use cases for the proposed PFMS-CPWD Integration Application,

which is to be implemented at PFMS Portal:

Invoice upload

o Payee Details

o Project Details

o Measurement Book upload

CPWD Module at PFMS

Account Tracking

Project Maintenance

At CPWD Division:

Receipts

Cashbook

LOC (Letter of Credit)

LOA (Letter of Acceptance)

Users Role

PD Upon login to PFMS portal, PD user add the invoice details (multiple invoice upload), payee details, project details and upload MB on the PFMS portal. And on the basis of collected facts, create a sanction for the selected project ID, where Project Id will used to track all the action, updates and amendments in the project. Send this newly created sanction to the DDO for further execution.

DDO DDO approve/ reject this sanction. If rejected, it will be sent back to PD user for editing. And if approved, a bill generated for this sanction.

DH Dealing Hand users will do the following activities on PFMS Portal:

Data Field Description

Edit Dealing hand users can edit the details.

Return By AAO Find files returned by AAO to edit.

Redirected By DDO Find files redirected by DDO to edit and again pass it to AAO.

Pass it to AAO Upon click, the bill is passed to

AAO



AAO AAO should have below listed options on the screen:

Data Field Description

Pass to DDO AAO Users click on it, to pass bill to DDO.

Passed by Dealing Hand

All files passed by dealing hand will appear here. There should be an option of “Receive bill”, “Return to DH”.

Returned from DDO If returned from DDO, then AAO will also return it to DH.

CDDO DDO will be responsible to verify the bill details, and apply

digitally sign on it and send it to bank.

Or return it to AAO for modification before digital sign.

Before Approval DDO must have to set the remarks and then

proceed to approval of pension case revision.

DDO Screens comprises of a list of “CPWD Bill” under the

“Passed by AAO” field.

PAO should have the functionality such as:

Passed by AAO

Return To AAO

Digital Sign on Bill: once the bill initiated is digitally

signed by DDO, its status should be updated on the

database.

PAO Receives Voucher

Note: In case of “Return to DH”, “Return to AAO” a dialogue Box pop up should appear on the screen and following functionalities will be provided in the Pop-up:

Remarks

Confirm

Back



2.1 Recommendation:

The way Nirman Lekha system is developed with a client server technology, no centralized

version control, no centralized data security/ recovery, etc. The report which is facing many

support and maintenance issues now should be replaced by a better system which

addresses all the issues and accordingly PFMS should be developed as per the requirements

mention and implemented in all CPWD divisions.

The PFMS, a web based portal now developed by O/o CGA, Ministry of Finance has already

been implemented as pilot run in two PAOs of Ministry of UD after getting approval from

Secretary (MoUD), it is considered to implement PFMS portal for making payments for all

the CPWD division which can enable on line payments by all the CPWD divisions, spread all

over the country.

After the success of pilot and resolution of system related issues of PFMS the new system

could be implemented in all 122 divisions not covered under Nirman Lekha in phase manner.

Based on success of these divisions, the divisions covered under Nirman Lekha will be

brought under PFMS portal in next phase.

There are considerable amount of fresh development required in PFMS portal to cater the

functions of CPWD divisions. The features of already developed systems being used in CPWD

divisions (NIJ, Nirman Lekha, ERS, and WBPMS) would be required to develop in PFMS portal

before its implementation in CPWD divisions.

Project coding system should be developed in consultation with CPWD to prepare a

concordance of old projects and online project code generation system based on well-

defined schema should be developed. Project coding should be in a manner that by slicing

and dicing this code ministry wise, department wise, geography wise project MIS can be

carved out from the expenditure database.

Secured Internet connectivity to be provided to all CPWD Divisions so as to enable them to

work on a centralized PFMS system. As desired by STQC for security clearance of process and

function of payment system.

All aspect related to Security Clearance for e-payments (process and functional) should be

taken care by PFMS Cell, O/o CGA.

Initially data feed for ERS, NIJ, WBPMS using suitable utility be developed and later these

applications can be replaced by PFMS as single system.

PFMS rollout should be seen as application change in the CPWD without changing any

Business Process and at later stage Business Process change can be initiated in consultation

with DG, CPWD at appropriate stages.



3 Application Features

3.1 Invoice Details At PFMS, Program Division users will login using their valid credentials and incorporate invoice

details on the PFMS Portal. It is suggested that a separate screen for capturing Invoice details shall

be designed and developed on the PFMS Portal, in order to incorporate the accounting details and

to keep track of the CPWD data details.

Under Invoice details, PD user will add Payee details, Project and upload the Measurement book in

excel format. This is to be done in order to fetch and track the record of each individual transaction

done in favour of invoices. (As there are multiple software’s running parallel to solve the purpose

without any hurdle, such as create a bill, approval from DDO, cashbook entry, project entry division

wise, submission of approved bill). Therefore, PFMS developed this section, to incorporate the

details of the accounting and provide automation with accounts along with accurate and prompt

authorization to banks for finalization of cases.

3.2 CPWD Module at PFMS PFMS is an online management information and decision support system for the plan schemes of the

government of India. It is a Central sector Scheme of the Planning Commission started in 2009-10.

Office of Controller General of Accounts, Ministry of Finance is the implementing authority and

administrative controller with Ministry of Finance.

At PFMS, authorise Program Division users will login and add invoice details, payee details, project

details and measurement books on the PFMS Portal. On the basis of Project id, the sanction is

created. Again, the newly created sanction should be passed to DDO for bill generation against the

sanction. Later, implementing existing approach of PFMS, i.e. three level passing (DHAAOPAO).

Below are the advantages of incorporating CPWD into PFMS:

3.2.1 Advantages of PFMS for CPWD Divisions.

The Public Financial Management System is a web based application being developed by O/o

CGA, Ministry of Finance which leverage its well established accounting and payment

software application called “COMPACT” and “e-Lekha”.

This system would enable to make on line payments by all the CPWD divisions, spread all

over the country.

PFMS is a complete online end to end system and enables to provide real time information

available on the portal regarding expenditure made by CPWD Divisions.

The feature of project wise expenditure could be developed for strengthening the

monitoring of utilization of funds by the Ministry. For this purpose CPWD has to coordinate

with PFMS development team to share the schema of project coding for old projects and

fresh coding for new projects through online mechanism without any intervention. PFMS

has some similar application for opening new scheme which can be modified according to

CPWD requirement.

In contrast to Nirman Lekha Support, there is entire dedicated technical team of PFMS

housed in separate dedicated office.



3.3 Account Tracking After submission of Bill to the bank, the bank will acknowledge the status of the payment against

respective accounting transaction details, the status might be “Success” or “Failed”, whatever the

status received during bank reconciliation it is updated in the database of PFMS. Though, it is

expected, that the data shall be tracked and monitored at PFMS portal to avoid bill tracking difficult

or prolonged process.

When bank send status “Failed”, then it should be edited by the PD user and again process this pension case file as fresh pension case with the same project id (to track the project payment details), and again the DH will receive this case and treat as a fresh case for bill payment.

3.4 Project Maintenance At PFMS, Controller should have an access to maintain and manage such as Search, View, and see

the status of the bill and the projects. Therefore, a valid login credential should be provided to the

controller to monitor the project details.

4 At CPWD Divison

4.1 LOA (Letter of Acceptance) In all CPWD divisions, a system of cheque drawing powers is under operation wherein Letter of credit is issued to authorize Executive Engineers of CPWD to make the payments relating to works and Pay & Allowances for which the budget is allocated to CPWD through UD grant or through Deposit/ LOA by other ministry/ Department/ Institution/ Organization.

4.2 LOC (Letter of Credit) For requesting online LOC e-Lekha portal has to be accessed by specific user ID and password provided by the Pr.Accounts Office. LOC proposal has to be prepared there under 15 digit accounting heads and is submitted online directly to the Pr.A.O. LOC Cell bypassing PAO supported by relevant physical documents is sent to Pr.A.O. LOC cell. On receiving the proposal online, Pr.AO examines it and approves it online, if it is correct in all respect. On approval, the division receives an electronic LOC authorization file online for incorporating into the Nirman Lekha system through e-Lekha interface.

4.3 Receipts At CPWD, all the challans submitted, are referred to be as receipts. The details of the receipt is

maintained under CPWD cashbook for accounting purpose, where all the challan entries are

reflected on the receipt side, and the amounts are on the Payment side. If there is any cash balance

appears in hand, then it is considered to use red ink to write it on the cashbook Payment side.

4.4 Cashbook The Cashbook is to be maintained in the form CPWA I. As on the receipt side, mention all the challans deposited at the CPWA and on the Payment side, mention relevant amount to be paid under this challan. The amounts received in cash are shown in the "Cash" column and classified under the head of receipts can be made use of for current expenditure. If, however, the cash balance in hand is considered surplus, the amount in excess may be deposited in the local bank, classifying such remittances on both the sides of the Cash Book.

It is suggested to implement E-Cashbook system, as it is already developed under Nirman Lekha but yet to be implemented. As after the bill is captured and passed in three levels and as and when the cheque is issued or e-payment is made, accounts is automatically generated in the system



and simultaneously the cash book is also generated automatically in the system. E-cashbook is a by-product of this system. The accounts are generated automatically from the bills. So there is a shift from cashbook based accounts to bill based accounts. The bill is the original source of the accounts, the bill contains the correct Accounting head, and when it is passed it can be passed only under the correct accounting head which has the sufficient budget/LOC and from that correct accounting head, correct accounts will be generated. So an error free account is ensured.

5 Reports: The exact requirements for the reporting module is yet to finalized and hence further details are

awaited which would aid us in preparing a more feature rich reporting section.

6 Reference The following artefacts have been referred for the creation of this BRD:

Document received dated 14th Jun 2016, from Medha Mam.

Meeting with CPWD officials dated 14th Jul 2016, with Punit Sir.

Date post:	19-Mar-2018
Category:	Documents
Upload:	vuongdung
View:	221 times
Download:	2 times

A PRESENTATION - · PDF fileTo overcome the shortcomings in the existing system, PFMS is the...

Documents