Nomination for Prime Ministries Awards for Excellence in Public Administration for the year 2010-11.

1. Organization :- Rural Development Department (MGNREGS-AP). Government of Andhra Pradesh. 2. Details of Nominee :- Sri. R. Subrahmanyam, Principal Secretary, Rural Development Department, Government of Andhra Pradesh., Hyderabad. 3. Nominating Authority :- Chief Secretary, Government of Andhra Pradesh, AP, Hyderabad. ><><>< a) Title of the initiative : eFMS( Electronic Fund Management System ). b)Organization where initiative was implemented :AP-MGNREGS, Dept. of Rural Development. c)Back ground of the initiative .

1. During the financial year 2009-10 it was noticed that works have been stopped in a few Districts/Mandals for want of funds and there is a vide spared dissatisfaction among wage seekers and public at large. On analysis of reasons it was found out that actually

Rs.450.00 crores were available in

toto, but these funds are with

various other districts. The funds are either in the pipeline or at the districts where there are no works, the funds was hoarded in saving

accounts of banks. Consequently there is a shortage of funds where works are more. Most importantly it is noticed that it is very difficult to restart the works already stopped as the entire field staff and wage

seekers have to be once again motivated and pursued. The other constraints noticed in the existing system are (a) that the block level offices have to send proposal to district level, and the

district . Programme

coordinator

used

to consolidate

those

proposals and send the district wise proposals to the State Head office. The Head office release after the scrutiny of the proposals used to

the funds to the districts in the shape of a cheque. The

District in turn used to distribute the funds through another cheque. The entire process of placing demand for funds and release of

funds involved cumbersome procedure of maintaining files and books of accounts at every level 2. The programme coordinators of the to park instances the excess funds in various district and mandal used were also

banks and there

that the funds intended for NREGS are being diverted

to other works/programmes. It was a herculean task to get back the diverted money from the user departments individually.

3. In the traditional method, where the funds are transferred through cheque payment, manual accounts are used to be maintained at each level for each transaction. The accuracy/ updation of manual maintenance of registers/ books of accounts is a questionable and fraught with risk of fraud. The drudgery of writing books of accounts and their maintenance on day to day basis, are one of the

bottleneck in implementing the programmes.

d) Motivator for the Project initiative : Principal Secretary , Rural Development Department,Secretariat, ,AP.,Hyderabad.

e)Purpose and Priorities 1. To enable online fund

of the initiative: transfer the mandal shall draw funds directly

from a central fund positioned at the State Head Quarters through eFMS. It greatly reduced the related file maintenance, correspondence and delays in the transfer of funds to the field level. 2. To remove all such practices of diversion and parking of funds, since the entire amounts are at a Central level and the district/blocks are drawing funds only to the extent of requirements and that too related to the implementation of NREGS. 3. To enable automatic generation of accounts at each level for each transaction there by facilitating a better decision

4. To enable the drawls based on the actual need after the work is executed as per the norms. It will eliminate the discretion and the corruption while issuing cheques to the parties. 5. To reduce the occurrence of forgery and fraudulent drawl of

money through bank cheques has altogether been eliminated, as there is no usage of cheques in the eFMS. 6. The block level field staff are liberated from safe custody and maintenance of cheque books. 7. To maintain upto date accounts generation at all levels based on the transaction, which will enable better planning and execution of programme in the scientific manner.

f) Date of implementation of the initiative : 15.02.2010. g)Strategies adopted for bringing about the transformation and positive impact:

The different strategies adopted for bringing transformation stake holder wise is furnished below. 1. Banks: Nodal Banks have been identified at District level and State

level for transfer of funds . The study has been carried out to Know the predominance of the bank nodal banks Banks in each district and accordingly

were identified. The Central Banking system of the department software, by series of

are integrated with

meetings with software experts. The TCS has entrusted the task of developing and maintenance of software. 2. Department: (a). A massive exercise has been taken up to identity Multiple

accounts, unspent balances at district and mandal fund account, enabling mandals/districts to use eFMS.

levels and all

such accounts are closed and the funds were brought to centralized

(b). Establishing connectivity upto mandal level by procuring and installing computers and software. Under this 1098 Mandal Computer Centers have been established, computer operators have been recruited, trained in software well before implementing eFMS. (c). Placing monitoring unit at State level for trouble shooting, resolving issues with banks and other stake holders. For this purpose a special call centers have been established, the grievances of wage seekers were captured, and problems solved case by case to improve confidence in the seekers in the system. (d). The department has identified and designates officers at Block, district and State levels for implementation of the scheme. 3.Wage earners / Suppliers : The account details of wage seekers and suppliers have been mind of the field staff and wage

captured and the amounts were credited utilizing the

CBS System

of the Banks. Special training were organized to computer operators with technical exports of banks / software to make them under stand the process of online credit system. h). Role of various Stake holders Most importantly, role and details of involvement of the nominees in the initiative:

1.Features of initiative: Electronic Fund Transfer system (eFMS) has been established with the objective of putting in place in an efficient mechanism to generate transmission of funds through online money transfer it involves the

following stake holders. (1)Mandal Computer Center (2) District Computer Center (3) Central Server at State Head Quarters (4) Banks (5) Wage seekers and Suppliers (6) General public All Centers (MCCs) and the District the Mandal Computer

Computer Centers (DCCs) to be

networked to a Central Fund in which all the MGNREGA funds are lodged. The work flow involves exchange of information between the block offices (MPDO), NREGS Server, Bank server and the Reserve Bank of India (RBI) server. 2.The Role of the Stake holders: The process begins when the Block Office issues a Fund Transfer Order (FTO) for a wage seeker to the NREGS server. The NREGS Server in turn collects all the FTOs that have been generated from all the MPDOs and forwards them to the Bank server. The Bank server interacts with the RBI server through the Core Banking solutions (CBS) system to establish the identity and verify the account details of each FTO. RBI server reverts back to the Bank server with the Unique Tax reference numbers of the

accounts. This paves the way for the Bank server to transfer the funds to the individual accounts as per the requests . An acknowledgement is generated and is sent back to the NREGS server that can be used to prepare report regarding the use reconciliation. The role of various stake holders like Banks, Designated drawing officers, wage seekers and field staff is depicted in the following flow chart. of finances, and for effective

The entire processes involved in the eFMS implementation and disbursement of amount to the wage seekers/suppliers and to the field staff salaries is shown in the following flow chart.

i) Highlights/ Positive features following important dimensions:

of the initiative

under

each of the

1. Transparency and stake holder participation. 1. The eFMS has established fund transmission through online by

means of a Central server. This has brought in transparency in terms of actual disbursement of wage to the wage seekers and material

supplies. The time and accuracy in payments and the date on which the amounts were credited are being captured and the delay in payments have been reduced considerably.

2. The on line transfer of money facilitated transaction based, books of accounts and documents at block, mandal, district, level, and the exchange of information for decision making.

3. Online transfer of funds through Central Server and capturing of data has enabled an effective MIS system, through which the and

exceptions, deviations, irregularities have necessary rectification measures are initiated.

been identified

4.The entire information of payments, starting of works, delays in wage payment are available to the general public for verification and queries.

2. Innovativeness of the initiative and its replicability. The online credit of amounts to the wage seekers / suppliers accounts directly using the CBS net work and capturing the data in real time.

The transaction based MIS and books of accounts are the innovative features of the eFMS. The eFMS can be customarised to any state

as it uses the CBS net work of Banks and the software was developed using MS office and other popular applications. 3. Increased efficiency of out puts/ processes and effectiveness out comes. 1. Ensured the efficient mechanism for transfer of funds to block and mandal level. 2. 3. Ensured the timely and accurate payment of wages. Exchange of information between block, mandal, district, and state level. 4. Elimination of manual maintenance of books of accounts at all levels. 5. Eliminated the chances of fraud and other irregularities by using of cheque books.

6. Brought transparency and accountability to the payment system. 7.Ensured reconciliation of each and every payment.

4. Display of leadership/Team work by the nominees.

The following are the fields under which committed leader ship has been displayed which has paved the way of implementing the eFMS.

The eFMS has been implemented wef. 15.02.2010, through the state. To facilitate implementation all the existing accounts in 1098 mandals

have been reconciled and closed.

The savings accounts are opened (Post offices, and Smart Card), and the data of account details of 60 lakhs wage seekers have been captured, payment orders for works of Rs. 5,000.00 crores have been generated and credited to the individual coordination and team work at block, mandal, district and state levels, which was ensured through special monitoring by a team of officers at state level for implementation with in a short span of time.

5.Sustainability of the initiative: The initiative is sustainable in the long run , since it utilizes the CBS

connectivity of the Banks. The security aspects have been adequately taken care of using technologies. The eFMS SFTP, DSKS, crept sign is fully stabilized in and encrypt, decrypt Government of Andhra

Pradesh for the last one year.

j).Out comes ie impact / benefits resulting form the initiative, for example. 1. Improvement in delivery time of services. The system has improved timely and accurate payment of wages. The delay in disbursement of wages has been reduced execution of works. The MIS reports showing considerably 80% in wage of the wage payment in the state are with in a week from the date of the delay payments is enclosed. (Report No. 2.5 of NREGS-AP Web site).

R2.5. NREGS-AP Wages Delay payment Report

State: Andhra Pradesh, Report as on 06.06.2011. No.of Labour for whom Payorders are made 579080 681612 393876 693790 431878 692911 390586 335151 555364 1153625 634360 377704 543510 546035 420693 411243 188274 1223477 1072798 1736125 491199 390897 13944188 Labour paid within 1530 Days 33869 11301 1595 9565 647 16792 8536 19276 879 43173 22240 13221 6432 24219 11079 24976 5255 26845 10458 7611 14909 10880 323758

S.No.

District

Labour paid within 15 Days 538681 668013 389783 681967 429672 668618 375063 308084 554108 1099755 596968 351727 532710 507617 400223 369735 179478 1184020 1048848 1720972 451582 372838 13430462

Labour paid more than 30 Days 6530 2298 2498 2258 1559 7501 6987 7791 377 10697 15152 12756 4368 14199 9391 16532 3541 12612 13492 7542 24708 7179 189968

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Adilabad Anantapur Chittoor East Godavari Guntur Kadapa Karimnagar Khammam Krishna Kurnool Mahabubnagar Medak Nalgonda Nizamabad Prakasam Ranga Reddy S.P.S Nellore Srikakulam Visakhapatnam Vizianagaram Warangal West Godavari Total

As seen from the above Report out of 1.39 crore Pay orders generated, 1.34 crores labour was paid wages generation of pay order which is with in 15 days from the date of 96.31 %. of total payments This

improvement of delivery is possible only through implementation of eFMS.

2. Better beneficiaries feed back. 1. The number of complaints from wage seekers with ref. to the delay in payments have been considerably reduced. 2. Frauds and irregularities while making payments have been reduced. 3. Better planning and decision making due to transaction based MIS. 4. The number of social audit objections under delay in payment of wages has reduced considerably .

3. Improvement in measurable indicators. Comparative Reports. Sl.No . 1 Parameters Employment Generation (Person days) Wage Payment (with in 15 days) Labour wise pay order generation Suspended labour wise pay order generation
Timely Payment generated in 3 days

Unit

2007-08

2008-09

2009-10

2010-11

Number

19,90,30,225

22,54,91,245

38,79,10,667

30,06,78,787

Percentage

78.03%

73.57%

94.00%

89.39%

3 4

Number

3,82,70,535

5,03,62,845

8,63,46,225

6,56,45,723

Number

17,84,311

22,95,162

35,07,616

28,67,670

Percentage

26.34%

33.02%

60.44%

32.47%

7 8 9

Avg person days for HH of SC&STs Percentage of Works completed HHs completed in 100 days Financial Performance (expenditure)

Percentage Percentage Percentage

19.50% 84.85% 7.69%

22.07% 86.77% 8.78%

40.27% 91.46% 22.62%

31.00% 65.28% 14.48%

Rs in crores

2009.24

2506.66

4108.98

5430.28

It can be seen from the comparative statement that there is progress in all parameters from 2007-08 to 2009-10. The performance during the year 2010-11 is less due to the following reasons. 1. Heavy rains during the monsoon, which is 29% more than normal of rain fall and the sown area for 2010-11 was increased against normal. 2. More rainy days from July to December , due to which the work could not be taken up as estimated . 3. The work has not taken place in the (10) districts of Telangana Region of Andhra Pradesh, due to non cooperation and agitation in the last quarter of the financial year 2010-11 (January, February,March,2011). 4. Non cooperation of the field Staff like Field Assts, who have under went strike for enhancement of remuneration. 4. Simplified Procedures: 1.Enabled Management of Fund at are place instead of multiple accounts at various places. 2.Parking and diversion of scheme funds was avoided. 3.Reduced the issues related to the maintenance of cheque books . 4.Funds disbursement is fast and in a accurate manner. 5.Enabled the wage seeker to get the wages to his savings account at his place of residence and eliminated delay in wage payments. 6.MIS is transaction based, data entry at a later date is avoided.