Purpose

To conduct a joint meeting of PIA OP Team (Finance), SRLM/CTSA, Periodical Auditor and Annual Auditor to:

1. Develop a common understanding among PIA OP Team (Finance), SRLM/CTSA, Periodical Auditor and Annual Auditor
2. Review the 1^st month financial audit reports and certificates to ensure that all the processes and procedures of financial monitoring are clearly understood by PIA OP Team (Finance), Periodical Auditor and Annual Auditor.

Reference to Guidelines

NA

Prerequisite/s           

Release of 1st instalment of project funds and completion of first month audit by the Periodical Auditor

Time for completion                   

As per the activity table below

Instructions

SI 8.4A: Common instructions on payment of entitlements, SI 8.4B: Instructions on payment of food and transportation cost, SI 8.4C: Instructions on post placement support (PPS) payment, SI 8.4D: Instructions on one time travel support, SI 8.4E: Instructions on accounting of boarding and lodging expenses, SI 8.5A: Instructions for payment of salaries to trainers, master trainers and Q team members, SI 8.10A: Procedure to draw sample and SI 8.10C: Items to be checked during 1st month audit

Process owner

For APS: SRLM finance team

For YPS: CTSA finance team

 1

Finalize 1^st month’s Monthly Verification Certificate and share with Periodical Auditor for verification

PIA OP Team (Finance)

By 5^th of 2^nd calendar month after release of 1^st instalment (for 1^st month)

SF 8.10B: Monthly Verification Certificate by Periodical Auditor for the Month of______, ____ (year)

 2

Finalize Financial Audit Certificate and Utilization Certificate and share the documents with Annual Auditor for conducting Audit

PIA OP Team (Finance)

By 10^th of 2^nd calendar month after release of 1^st instalment (for 1^st month)

SF 8.10A: Audit Certificate for the month of_________ (1st month), 20__ and format as SF 8.10J: Annual Utilization Certificate

 3

Conduct verification for prescribed heads of expenditure as per Monthly Verification Certificate

Periodical Auditor

By 15^th of 2^nd calendar month after release of 1^st instalment (for 1^st month)

SF 8.10B Monthly verification certificate by Periodical Auditor for the month of _____ (year)

4

Conduct financial audit for 1^st month books of account based on the sampling technique as per the applicable auditing standards with the sample size mentioned under SI 8.10G, as minimum

Annual Auditor

By 25^th of 2^nd calendar month after release of 1^st instalment (for 1^st month)

SF 8.10A and SF 8.10J

 5

Submission of 1^st month Monthly Verification Certificate authenticated by Periodical Auditor and Financial Audit Certificate, Utilization Certificate authenticated by Annual Auditor to SRLM in APS and CTSA in YPS

PIA OP Team (Finance)

26^th of 2^nd calendar month after release of 1^st instalment (for previous month)

SF 8.10A, SF 8.10B and SF 8.10J

 6

Visit the project finance office of PIA and conduct meeting with PIA OP Team (Finance), Periodical Auditor and Annual Auditor to verify the report submitted and make corrections, if required.

(If any member is absent on the day of meeting then the meeting will be cancelled. In such case, all members shall meet at a place as decided by SRLM/CTSA, as the case may be, within a week’s time to complete the process.)

SRLM finance team (in case of APS)

CTSA finance team (in case YPS)

By 30^th of 2^nd calendar month after release of 1^st instalment (for 1^st month)

SF 8.10A, SF 8.10B and SF 8.10J

 7

Submission of revised audit report, if required, based on the observations of SRLM/CTSA

PIA OP Team (Finance)

Periodical Auditor

30^th of 2^nd calendar month after release of 1^stinstalment (for 1^st month)

SF 8.10A, SF 8.10B and SF 8.10J

Purpose

To ensure timely and correct payment of entitlements mentioned under prescribed heads of expenditure under SI 8.11B and conduct verification of other mandatory checks mentioned under SI 8.11B

Reference to Guidelines

NA

Prerequisite/s                    

Release of 1^st instalment

Time for completion                  

As per activity table below

Instructions

SI 8.4A: Common instructions on payment of entitlements, SI 8.4B: Instructions on payment of food and transportation cost, SI 8.4C: Instructions on post placement support (PPS) payment, SI 8.4D: Instructions on one time travel support, SI 8.4E: Instructions on accounting of boarding and lodging expenses, SI 8.5A: Instructions for payment of salaries to trainers, master trainers and Q team members and SI 8.10D: Items to be verified during Monthly Verification

Process owner

For APS: SRLM finance team

For YPS: CTSA finance team

The following steps are applicable to both APS and YPS

Finalize Monthly Verification Certificate and related  documents and share with Periodical Auditor for verification

PIA OP Team (Finance)

5th of every month (for previous month)

SF 8.10B: Monthly Verification Certificate by Periodical Auditor for the Month of______, ____ (year)

2

Conduct verification for prescribed heads of expenditure as per Monthly Verification Certificate

Periodical Auditor

15th of every month (for previous month)

SF 8.10B Monthly verification certificate by Periodical Auditor for the month of _____ (year)

3

Submit Monthly Verification Certificate authenticated by Periodical Auditor to SRLM in APS and CTSA in YPS

PIA OP Team (Finance)

16th of every month (for previous month)

SF 8.10B Monthly verification certificate by Periodical Auditor for the month of _____ (year)

 4

Cross verify amount received as take home salary in a candidates bank account and hand over to SRML OP team in APS and CTSA OP team in YPS

SRLM finance team (in case of APS)

CTSA finance team (in case YPS)

18^th of every month (for previous month)

SF 8.10B and SF 8.6A: Amount transferred to a candidate’s bank account as take home pay

 5

Cross verify Monthly Verification Certificate and assess the deviations reported by Periodical Auditor and issue a Monthly Verification Report directing the PIA to rectify deviations and report compliance

SRLM finance team (in case of APS)

CTSA finance team (in case YPS)

23^rd of every month (for previous month)

SF 8.10C: Interim evaluation letter of SRLM/CTSA for Monthly Financial Verification Certificate submitted by PIA

 6

Comply with the Monthly Verification Report of SRLM/CTSA report and submit a Compliance Report

PIA OP Team (Finance)

26^th of every month (verification of previous month)

SF 8.10D: Management response to be submitted by PIA to SRLM/CTSA

 7

Review the Compliance Report submitted by PIA and issue Final Monthly Verification report. Generate notice, in case deviations are not addressed.

SRLM finance team (in case of APS)

CTSA finance team (in case YPS)

Prior to the end of every month (verification of previous month)

If the Final Monthly Verification Report is not sent by SRLM/CTSA within specified time, it is deemed that PIA’s compliance report is accepted.

SF 8.10E: Final evaluation letter of SRLM/CTSA for Monthly/cumulative  Financial Verification Certificate submitted by PIA

The following step is applicable for APS

8.

Cross verify Monthly Verification Certificate and assess the deviations reported by Periodical Auditor and issue a Monthly Verification Report directing the PIA to rectify deviations and report compliance for a random month chosen by CTSA random basis

CTSA finance team

Quarterly verification(to be done for first 4 or 5 quarters as given below).

• At the end every quarter^[2], a month will be chosen randomly by CTSA. Number of  Quarters will be chosen as follows: 
• Projects commencing in 1^st and 3^rd quarter: 4 quarters
• Projects  commencing in 2^nd and 4^th quarter: 5 quarters

Half yearly Verification(to be taken up after quarterly verification):

• After the completion of above period and till PPS is disbursed for the placed candidates: At the end every half year ending March and September
• A month will be chosen randomly by CTSA

SF 8.10B Monthly verification certificate by Periodical Auditor for the month of _____ (year)

SF 8.10E Final evaluation letter of SRLM/CTSA for monthly/cumulative financial verification certificate submitted by PIA

Purpose

• To conduct annual financial audit of the books of account and records of PIA for ensuring compliance with DDU-GKY guidelines and SOP
• To ensure utilization of project funds as per the terms of SOP and furnish annual utilisation certificate along with annual audited financial statements for the project funds

Reference to Guidelines

NA

Prerequisite/s           

Preparation of Annual books of account

Time for completion                  

As per Activity Table Below

Instructions

SI 8.4A: Common instructions on payment of entitlements, SI 8.4B: Instructions on payment of food and transportation cost, SI 8.4C: Instructions on post placement support (PPS) payment, SI 8.4D: Instructions on one time travel support, SI 8.4E: Instructions on accounting of boarding and lodging expenses, SI 8.5A: Instructions for payment of salaries to trainers, master trainers and Q team members, SF 8.10E: Final evaluation letter of SRLM/CTSA for Monthly Financial Verification Certificate submitted by PIA, SI 8.10G: Sample size for verification of transactions

Process owner

For APS: SRLM finance team

For YPS: CTSA finance team

 1

Finalize and share Annual Financial statement, Annual Audit Certificate, Annual Utilization Certificate and related books of account in accordance with the applicable standards and share with Annual Auditor for audit

PIA OP Team (Finance)

31^st July (for previous year)

Annual Financial Statements as per the standards,

SF 8.10F: Annual financial audit certificate and SF 8.10J: Annual utilization certificate

2 

Conduct Annual financial audit of books of account based on the sampling technique as per the applicable auditing standards with the sample size mentioned under SI 8.10G, as minimum

Annual Auditor

25^th September (for previous year)

Annual Financial Statements as per the standards,

SF 8.10F and

SF 8.10J

 3

Authenticate Annual Financial Statement, Annual Audit Certificate and Annual Utilisation Certificate

Annual Auditor

25^th September (for previous year)

Annual Financial Statements as per the standards,

SF 8.10F and

SF 8.10J

 4

Submit annual audited financial statements, annual audit certificate and annual utilization certificates to SRLM in APS and CTSA in YPS

PIA OP Team (Finance)

30^th September (for previous year)

Annual Financial Statements as per the standards,

SF 8.10F and

SF 8.10J

 5

Reconcile the amount of expenditure for prescribed heads, assess deviations reported in annual audit certificate

SRLM finance team (in case of APS)

CTSA finance team (in case YPS)

15^thOctober (for previous year)

Annual Financial Statements as per the standards,

SF 8.10F and

SF 8.10J

 6

Issue an annual verification report directing the PIA to rectify deviations and report compliance.

SRLM finance team (in case of APS)

CTSA finance team (in case YPS)

20^th October (for previous year)

SF 8.10G: Interim evaluation letter of SRLM/CTSA for Annual Utilization Certificate submitted by PIA

 7

Comply with the Annual Verification Report of SRLM/CTSA and submit a Compliance Report

PIA OP Team (Finance)

25^th October (for previous year)

SF 8.10H: Management response to be submitted by PIA to SRLM/CTSA

 8

Review the Compliance Report submitted by PIA and issue final Annual Verification Report. Generate notice, in case of deviations not addressed.

SRLM finance team (in case of APS)

CTSA finance team (in case YPS)

10th November (for previous year)

If the Final Annual Verification Report is not sent by SRLM/CTSA within specified time, it is deemed that PIA’s compliance report is accepted

SF 8.10I: Final evaluation letter of SRLM/CTSA for Annual Utilization Certificate submitted by PIA

Purpose

To submit utilisation certificate for release of 2^nd and 3^rd instalment.

Reference to Guidelines

No. 16, table 2, para 4.2, page 44

Step 9, table 3, para 4.3, page 47

Step 9, para 4.3, page 47

Section xx, para 4.8, page 51

Para 5.9, page 56

Para 5.11, page 58

Prerequisite/s                  

Utilization of required percentage of fund and achievement of required physical targets for release of next instalment.

Time for completion                  

As per the activity table below

Instructions

SI 8.4A: Common instructions on payment of entitlements, SI 8.4B: Instructions on payment of food and transportation cost, SI 8.4C: Instructions on post placement support (PPS) payment, SI 8.4D: Instructions on one time travel support, SI 8.4E: Instructions on accounting of boarding and lodging expenses, SI 8.5A: Instructions for payment of salaries to trainers, master trainers and Q team members

Process owner

For APS: SRLM finance team

For YPS: CTSA finance team

 1

Finalize and share Utilization Certificate

PIA OP Team (Finance)

Any time after end of the calendar month in which they utilized the prescribed % of fund.

SF 8.10K: Utilization certificate as on _______ for release of ______ (2^nd and 3^rd) instalment of project funds

 2

Reconcile the amount of expenditure for the prescribed heads submit to MoRD/SRLM with recommendation for release of 2^nd and 3^rd instalment as an annexure to instalment release and closure checklist prescribed in Chapter 3

SRLM finance team (in case of APS)

CTSA finance team (in case YPS)

15 days of  submission of utilization certificate by PIA

SF 8.10B: Monthly Verification Certificate by Periodical Auditor for the Month of______, ____ (year)  SF 8.10E: Final evaluation letter of SRLM/CTSA for Monthly Financial Verification Certificate submitted by PIAand SF 8.10K

Purpose

To release certain expenditure in the event of delay in release of 2^nd and 3^rd instalments beyond schedules prescribed in chapter 3

Reference to Guidelines

Para 5.9, page 57

Prerequisite/s

Fulfilling all the physical and financial conditions for release of instalment and 2^nd/3^rd instalment has not been released on due date

Time for completion                  

Payments made on Reimbursements basis:

• For months starting from the month in which request was made and till the month when instalment becomes due (excluding the month on which instalment is due): 10^th of the next month of the month in which due date for release of instalment falls.
• Payments for the month in which due date of instalment falls or subsequent months: 10^th of the 2^nd month from the month for which payment is to be made (payments for January will be made by 10^th March)

Payments made on due basis: 26^th of the next month for the month for which payment is to be made

Resource/s

SI 8.10H: Fund to be released for expenditure incurred every month on event of delay in instalment payment, SF 8.10B: Monthly Verification Certificate by Periodical Auditor for the Month of______, ____ (year) , SF 8.10E: Final evaluation letter of SRLM/CTSA for Monthly Financial Verification Certificate submitted by PIA and SF 8.10L: Payment released for the month of ____________ on account of delay in release of 2nd/3rd  instalment 

Process owner

For APS: SRLM finance team

For YPS: CTSA finance team

Payments made on reimbursement basis:

SRLM finance team for APS/CTSA finance team for YPS

Two cases arise:

Case 1: Payments for months starting from the month in which request was made and till the month when instalment becomes due (excluding the month on which instalment is due): Make payment as per monthly verification certificate of corresponding months and inform different entities (SRLM to MoRD and CTSA, and CTSA to MoRD and SRLM)

Case 2: Payments for the month in which due date of instalment falls or subsequent months

10^th of the next month of the month in which due date for release of instalment falls

 10^th of the 2^nd month from the month for which payment is being released.

SI 8.10H: Fund to be released for expenditure incurred every month on event of delay in instalment paymentSF 8.10E: Final evaluation letter of SRLM/CTSA for Monthly Financial Verification Certificate submitted by PIA and SF 8.10L: Payment released for the month of ____________ on account of delay in release of 2nd/3rd  instalment

Payments made due basis:

SRLM finance team for APS/CTSA finance team for YPS

Make payment as per monthly verification certificate of corresponding months and inform MoRD

26^th of the next month for the month for which payment is to be made

SI 8.10H, SF 8.10B: Monthly Verification Certificate by Periodical Auditor for the Month of______, ____ (year) and SF 8.10L

PIA OP team (finance)

Payment to the candidates and prepare a payment report

3^rd of the 2^nd month from the month for which payment is to be made

SF 8.10B Monthly verification certificate by Periodical Auditor for the month

Periodical Auditor

Authentic the report submitted by PIA indicating exact amount of money which is transferred to actual candidates within due dates

Every 2^nd month of which the fund is released along with the monthly verification certificate

SF 8.10B Monthly verification certificate by Periodical Auditor for the month

SRLM finance team for APS/CTSA for YPS

Adjust the amount in the next release as per final monthly verification report by SRLM/CTSA and the report authenticated by Periodical Auditor

At the time of next release

SF 8.10B Monthly verification certificate by Periodical Auditor for the month

SRLM finance team for APS/CTSA for YPS

Adjust on-account payment with corresponding instalment release as per the process of chapter 3

As per process of chapter 3

As per process of chapter 3