The financial procedures prescribed in this chapter should be understood in the overall context of the programme objectives, the extant program guidelines and the extant Standard Operating Procedures. It is pertinent to note here that the DDU GKY Guidelines notified on 10.02.2015 specify the key components for financial monitoring as below:

“…the financial pass through to the beneficiaries such as: a) The food and transportation allowances, b) Post placement allowances and c) Payment to trainers, master trainers and Q team members will only be verified. This is expected to result in the audit of almost 70% of the payments to PIAs.” (Para v , Section 3.2.1.7 of Programme Guidelines, Page 26)

Keeping view of the Guidelines, the Project Financial Procedures focus on monitoring of the following cost through financial transactions recorded and validated in PFMS.

• Payment of entitlements to candidates are accurate and timely
• Payment of salaries to trainers, master trainers and the Q team members are accurate and timely, as they have critical impact on the quality of training and employment as envisaged in the scheme

Other costs would be reviewed through the annual audit process by the Annual Auditor as per Auditing Standards of ICAI.

It is also pertinent to note here that the financial procedures detailed in this chapter take into account the physical outcomes/outputs that are monitored deploying the concurrent monitoring procedures outlined in the preceding chapters.

The forms used in financial monitoring are prescribed in this chapter. The forms will be suitably modified in PFMS or ERP of DDU-GKY. Wherever PFMS or ERP of DDU-GKY does not have equivalent forms, all stakeholders are required to use ones specified in this chapter and as amended from time to time. A CTSA/State Govt./PIA feels that new form is required for implementing the SOP it may approach NIRD&PR, preferably with a template for the new form. NIRD&PR will review the form in consultation with MoRD issue it separately.