The Financial Management Information System will base on the following two systems:

1. Public Financial Management System (PFMS) for capturing all the project related financial transactions. PFMS will be payment and expenditure tracking tool for financial management. The system may also be used to generate analytical reports on nature of transaction in the manner required.
2. ERP of DDU-GKY for reporting of financial transactions, generating reports on entitlement amount due and paid to beneficiaries and other mandatory payments on the basis of physical progress parameters.

PFMS and ERP of DDU-GKY will be integrated to correlate financial progress physical progress of a project and generate reports for financial monitoring.

Effective deployment of PFMS and ERP of DDU-GKY will happen over a period of time during the implementation of projects. In the interim, PIAs are required to use standard accounting tools and maintain a website to report data. Procedure for reporting of project financial transactions in the interim are described in SI 8.13A: Instructions on information to be maintained by PIA.

An overview of process of PFMS are given in respective processes and the detailed PFMS manual shall be available separately to assist PIAs in transacting through PFMS.

Note: Considering the criticality of timely payments to candidates and vendors for maintaining smooth operations, PIAs may use NEFT/RTGS for making DDU-GKY project related expenses. However, it is mandatory for PIAs to record all the expenses on PFMS with complete details along with vouchers and copy of NEFT/RTGS acknowledgements within seven days of transaction.