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1. What is the structure of financial support for government funded/aided institutions?
2. What are the permissible and non-permissible items for expenditure for State Project Facilitation Unit (SPFU)?
3. What are the permissible and non-permissible areas for expenditure for selected institutions?
4. What is the structure of financial support for private unaided institutions?
5. Which items are covered under the head 'Operation and Maintenance (O&M)'?
6. What is the mechanism for fund flow from Centre to State?
7. What is the mechanism for fund flow from State to institutions?
8. What is Financial Management Support System (FMSS) and its usage?


(Note: Click on the questions above for the respective answer)






1. What is the structure of financial support for government funded/aided institutions?

The structure of financial support for government funded/aided institutions for all components is as follows.

I) For regular States:
  a) Share of Central Government is 75%
  b) Share of State Government is 25%

II) For Special Category States:
  a) Share of Central Government is 90%
  b) Share of State Government is 10%





2. What are the permissible and non-permissible items for expenditure for State Project Facilitation Unit (SPFU)?

Please see Section-VII, page no: 118, Table - 6 of PIP

Permissible & Non Permissible SPFU :: View Online || Download





3. What are the permissible and non-permissible areas for expenditure for selected institutions?

Please see Section-VII, Table - 1, 2, 3, 4 of PIP



Permissible & Non Permissible for Ins :: View Online || Download





4. What is the structure of financial support for private unaided institutions?

The structure of financial support for private unaided institutions is different for different components which are as follows:

I) For sub-component-1.1:
  a) Share of Central Government is 60%
  b) Share of State Government is 20%
  c) Share of Institutions is 20%

II) For sub-component-1.2:
  a) Share of Central Government is 75%
  b) Share of State Government is 25%

III) For sub-component-1.2.1:
  a) Share of Central Government is 75%
  b) Share of State Government is 25%

IV) For sub-component-1.3:
  i) Under sub-component 1.1 only training fee is covered
    a) Share of Central Government is 75%
    b) Share of State Government is 25%
  ii) Under sub-component 1.2 full training fee and overheads towards travel, boarding, lodging, training materials, etc are covered     a) Share of Central Government is 75%
    b) Share of State Government is 25%






5. Which items are covered under the head 'Operation and Maintenance (O&M)'?

The items covered under the head 'Operation and Maintenance (O&M)' are the cost of operation and maintenance of equipment, office rental and expenses, hiring of vehicles, consultancy services, salaries and allowances of additional staff and travel costs incurred for the purposes of carrying out the project.





6. What is the mechanism for fund flow from Centre to State?

The fund flow pattern from Centre to State shall be as follows.

a) At the State level the Department responsible for Technical Education will annually prepare a budget for entire 100% expenditure for all the State-sponsored Institutions, pedagogical training, Projects under Innovation Fund and the SPFU and obtain the necessary approval of the State Legislature. The budget will be provided under the Head "Centrally Sponsored Scheme" in the State budget.

b) Each CFI will annually prepare a budget for entire expenditure in the Project.

c) The provision of expenditure by CFIs and States will be forwarded to the MHRD and accordingly the advances will be provided by it to participating CFIs and States by budget approval in the Parliament.

d) MHRD will straight way release the funds to CFIs based on the Financial Monitoring Reports (FMRs).

e) MHRD will release the Central Government share to States through GoI channels and funds shall be received in the respective State Treasury.

f) State Finance Department will make the allocations based on the approved budget estimate of the Department responsible for Technical Education in the State.

g) The Department responsible for the Technical Education in the State will accord "administrative sanction" for incurring the expenditure for the allocated amount.

h) The treasury will give the "budget authorization".

i) The Director of Technical Education / Commissioner of Technical Education / or equivalent, will submit the bill to the treasury (pay and accounts office) after (i) the administrative sanction and (ii) the budget authorization.

j) The amount then will be credited by the treasury into the Personnel Deposit Account (PDA)/ Personal Ledger Account (PLA) opened in favour of The Director of Technical Education / Commissioner of Technical Education / or equivalent, in any Nationalized Bank for further operation of funds.

k) SPFU will receive the funds through cheque in a commercial bank account opened for the Project from the Director of Technical Education / Commissioner of Technical Education / or equivalent.

l) The Project Institutions will receive the funds from the SPFU through cheque in a commercial bank account opened for the Project.

m) The Project Institutions will submit "Financial Monitoring Report" (FMR) quarterly to SPFU. SPFU will consolidate the FMR of all its Project Institutions and will submit the consolidated FMR to the NPIU. FMR will provide expenditure information for the previous quarter and a forecast of expenditure to be made in the next six months.

n) CFIs will send FMR to the NPIU.

o) NPIU will submit consolidated FMR of all States and CFIs and also of NPIU to CAAA and the World Bank.

p) The expenditure reported in FMR will be finally confirmed subject to its certification in the Annual Audit Reports for each State/CFIs and NPIU.

q) Timely submission of FMR by States/CFIs is mandatory for further disbursement of the grant by MHRD which is 45 days at the close of each quarter.

r) " The World Bank will make quarterly disbursements on the basis of FMR to GoI. Funds will be disbursed in a special account with the Reserve Bank of India, Central Accounts Section, Mumbai, operated by CAAA in the Department of Economic Affairs (DEA),Ministry of Finance, Government of India. The disbursement will be determined as the Forecast expenditure less Funds available. Funds available are defined as opening balances less reported expenditure..





7. What is the mechanism for fund flow from State to institutions?

The Project institutions will receive the funds from SPFU through cheque for a commercial bank account opened for the Project operations.





8. What is Financial Management Support System (FMSS) and what are its usage?

The Financial Management Supports System (FMSS) is an electronic Financial Monitoring System (e-FMRs). The reporting of expenditure and forecasting of funds during the project shall be online to save time and maintain accuracy.





Frequently Asked Questions - Other Categories:
Programme Design and Implemenatation || Eligibility and Selection || Academic Excellence || Faculty and Staff Development || Procurement || Monitoring and Evaluation



Home
FAQs
I) Programme Design and Implemenatation
II) Eligibility and Selection
III) Academic Excellence
IV) Faculty and Staff Development
V) Procurement
VI) Financial Management
VII) Monitoring and Evaluation


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