The document summarizes the development of a computerized Financial Management System (FMS) for the National Agricultural Technology Project (NATP). Key findings from situational studies at 19 locations identified issues like errors and delays in financial reporting, inadequate control of advances, and lack of computer literacy. The proposed FMS aims to address these issues by facilitating timely financial reporting, generating required World Bank reports, and linking financial and physical progress. It will provide tools for budgeting, accounting, procurement monitoring and generate various financial and progress statements. Training will be imparted to staff on operating the new computerized FMS.

1. 1
By JPS Associates, Consultants
Development of Computerised
FMS for NATP

2. 2
Objectives
To develop a Financial
Management Manual
To computerize the FMS
To impart training to trainers

3. 3
Methodology Followed
Discussions to understand
requirements
Situational Study at 19
locations & 6 cities
Submission of Need Study
Report

4. 4
Methodology Followed (Contd.)
Submission of inception report
(Draft FMS) and presentations
Feed-back and incorporation of
suggestions
Submission of revised Draft FMS

5. 5
Key Findings of Situational
Study
Current issues at Operating Units (ATMAs etc.)
Errors and Delay in submission of Statement of
Expenditure
Inadequate control over advances and its settlements
High Cash Balances lying in some cases
Staff is not computer literate

6. 6
Key Findings of Situational
Study (contd.)
Current issues at TDU
Delay in submission of SoE to WB
Delay in release of Funds to
operating units (ATMAs etc.)
Computer literacy

7. 7
Key Findings of Situational
Study (contd.)
Non-suitability for meeting
WB requirements:
Financial Statements not
generated,
Project Management Reports
(PMRs) not generated,
Delay in audit.

8. 8
Design and Benefits of FMS
Software
Facilitates timely generation
of Statement of Expenditure
and other reports
WB’s Loan Administration
Change Initiative (LACI)
Compliant FMS Software
Singly Voucher Entry &
Simplification

9. 9
Design and Benefits of FMS
Software (Contd.)
Facilitates greater accuracy
and reconciliation of accounts
Links the Financial and
Physical Progress
Avoids duplication of work by
linking various sub-modules
viz., budgeting, accounting,
claims, procurement etc. in a
single software

10. 10
Design and Benefits of FMS
Software (Contd.)
Facilitates better management
by providing better MIS
Promotes efficiency and ease
in operation
Provides for Automatic
Merger of Accounts at next
level with e-mail or
floppy transfer

11. 11
Major Outputs of Financial
Management System
Individual and Consolidated
Statement of Expenditure (SoE)
World Bank’s Project
Management Reports (PMRs)
Financial Progress Statements
Physical Progress Statements

12. 12
Major Outputs of Financial
Management System
(Contd.)
Annual Financial Statements
Budget Control Register
Exception Reports, viz.,
Budget vs. Releases
Grants vs. Expenditure
Expenditure vs. Claims

13. 13
Project Implementing Agencies
Visited
Department of Agriculture and Co-
operation,
TDU, Directorate of Extension,
MANAGE, Hyderabad,
SAMETI, A.P. and H.P.,
State Headquarter, A.P. and H.P.,
ATMA, Kurnool and ATMA, Shimla,
BTT and Head of Line Departments,
ZHRS, Mashobra.

14. 14
As is presently followed shall be
continued
Fund Flow Mechanism

15. 15
Accounting Centres
Technology Dissemination Unit (TDU)
MANAGE SAMETI State Hqrs. ATMAs
Denotes an Accounting Centre
Denotes Advance-receiving
Denotes Flow of information
Denotes flow of sub-
Block Technology Team
Zonal Research Stations (ZRS)
Krishi Vigyan Kendra (KVKs)
District Line Department - HoDs
BTT Members

16. 16
As sanctioned by 2nd and 3rd
TDMC and concurred by some
State Governments, viz., H.P. and
Punjab
Delegation of Financial Powers &
Diversion of Funds

17. 17
Design and Linking of Formats
of
Books and Records
Vouchers
Cash and Bank Book etc.
Bill Register
Ledgers
Trial Balance

18. 18
Linkage of Financial and
Physical Progress
Provides for recording of
physical progress along with
the financial progress
Compares the budgeted
financial and physical
progress to actual progress

19. 19
Provides system for monitoring
of Procurements & Contracts
Generation of Qtrly
Procurement Reports, for
‘Goods’, ‘Works’ and
‘Consultants’
Provision for recording
commitments, expenditures and
performance of contracts
Maintain Contractors /
Consultants Ledgers

20. 20
Development of Multi-field
Chart of Accounts
To capture financial data under
appropriate headings viz.,
• Project Component-wise,
• Sub-component-wise,
• Disbursement Category-
wise,
• Account Head-wise etc.
for each implementing agency
To classify and group financial
data for the various financial
reports

21. 21
WB’s Project Management
Reports (PMRs)
Financial Statements
• Summary of Sources and Uses of Funds
• Uses of Funds by Project Activity
• Cash Withdrawal
• Cash Forecast
Project Progress
• Output Monitoring Report
Procurement Management
• Contract Expenditure Report
• Procurement Management Report