DDUGKY
Section 8.1:
Overview of financial monitoring
DDUGKY
“…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.” – extracted from DDU-GKY guidelines
So focus is on 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.
2
Section 8.2:
Financial monitoring: Roles and
responsibilities of key agencies and actors

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PIA




PIA OP Team:
PIA OP team (finance):
PIA Q Team:
Auditor for conducting:
 Monthly verification. Hereinafter referred as Periodical Auditor
 Annual audit, financial audit for project closure and financial audit for orderly closure of a
project. Hereinafter referred as Annual Auditor

CTSA/SRLM

Verification of expenditure limited to disbursement of candidates entitlements, payment
to trainers, master trainers and Q team members, in line with the guidelines.

Verification and review of the remarks reported by the periodic and annual auditor, if
any, and seek compliance

CTSA to recommend to MoRD for release of funds based on financial verification as
above. In addition to financial verification, physical verification will also be taken into
account for funds release as detailed in previous chapters and as per approved
checklist. In the case of SRLM, such recommendation would be internal to the SRLM
based on financial verification
(contd…)
Section 8.2:
Financial monitoring: Roles and
responsibilities of key agencies and actors
(contd…)
DDUGKY
 Thematic audit along with the MoRD empanelled auditor as per instructions of
MoRD

MoRD
 Review of expenditure limited to disbursement of candidates entitlements,
payment to trainers, master trainers and Q team members
 Ensure that CTSA verifies and reviews remarks reported by the periodic and
annual auditor, if any, and presents a compliance report submitted by the PIA
along with its remarks
 Conduct of thematic audit
Section 8.3:
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Project fund management
 8.3.1 Operation of project account
 8.3.1.1 Opening of bank account and mapping on PFMS
 Maintaining of project account: PIA should open only one dedicated
Project Account and is not permitted to maintain multiple Project
Accounts except during the interim period of change in the Project
Account, following the prescribed instructions in this SOP.
 Nature of account:
 Savings Account subject to RBI regulations and any other applicable
Banking Regulations.
 Current Account subject to RBI regulations and any other applicable
Banking Regulations for PIA registered as non-section 8 Company under
Companies Act, 2013 (erstwhile Section 25 of Companies Act, 1956).
 Name of the account: DDU-GKY-(short name of PIA/applicant PIA)short name of state-Project number (Note: A PIA should give serial
number to all projects sanctioned to it in the programme – i.e. a running
number across all project sanction entities; and this will reflect in the
project number).
 Refers to the Applicant PIA in a consortium
Section 8.3:
DDUGKY
Project fund management (contd…)

8.3.2 Cash inflows to the Project Account
 All funds released by CTSA for non AAP states/SRLM for AAP states
 Interest earned from the project account, if any
 Loans taken by PIA for the purpose of project: PIA is permitted to bring funds, from
its own sources or through the normal banking system, into the Project Account as
loan. In such a case, the PIA should only be allowed to book repayment of principal
amount as allowable expenditure and not the interest.
 CSR fund/fund from other sources: PIA to inform to the MoRD about this through the
CTSA/SRLM specifying the purpose for which the funds have been received and
utilized. PIA has to ensure that such funds received are not classifiable as an offence
under Chapter II of Prevention of Money Laundering Act, 2002, as amended from time
to time.
DDUGKY
Section 8.3:
Project fund management (contd…)

8.3.3 Cash Outflows from the Project Account

8.3.3.1 Heads of expenditure
PFMS
code
Heads
A
Training Costs
A1.1
A1.2
A1.3
Trainers Salaries
Q Team Salary
Other Training Costs
Items to be booked
Salaries of trainers and master trainers
the project
Salaries of Q team members working
i. Training cost, mobilization of
curriculum, training of trainers, utilities,
equipment,
teaching
aids,
raw
ii. Assessment & certification
iii. Placement linkage
iv. MIS & Tracking, monitoring, quality
v. Any other expenditure could not be
heads
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Section 8.3:
Project fund management (contd…)
PFMS code Heads
A2
Boarding and Lodging
A2.1
State Headquarters
A2.2
District Headquarters
A2.3
Other Locations
Items to be booked
Expenditure
candidates
on
boarding
&
lodging
Cost on one time travel facilities provided
A3
A4
One time travel cost
Food and To & Fro charges
Payment for food and transportation to
candidates
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Section 8.3:
Project fund management (contd…)
PFMS code Heads
A5
Post Placement Support
A5.1
Placement within district domicile
A5.2
Placement within state domicile
A5.3
Placement outside state domicile
A6
Tablet Computer
A7
Uniform
A8
Incentives
A8.1
Retention Support
A8.2
Career Progression
A8.3
Live Distance Learning
A8.4
Foreign Placement
Items to be booked
Payment of post placement support to
Lease/rental/purchase
cost
tablet
candidates
Cost incurred on candidates uniform
Incentives claimed by PIA on achievement
Section 8.3:
DDUGKY
Project fund management (contd…)
 8.3.3.2 Booking of Expenditure
All transactions directly attributed to the project shall be paid through the project account
registered on PFMS except:
 A trainer working on more than one project
 A training centre where multiple projects are run simultaneously
 Shared Q team resources
In all such cases one of the following course of action can be taken
 The proportionate cost can be booked to the dedicated project account of DDU GKY
 Proportionate cost can be transferred from designated Project Account to another bank
account from which the full cost/ expenditure has been paid
PIA is allowed to book expenditure from the date of issue of sanction order. To allow the
expenditure under the project the following should be fulfilled:
 Open a project account as per ‘SI 8.3A: Instruction for opening of bank account’ before
booking of expenditure
 Incur all expenditure through the project account only
 Signing of the MoU by all the Authorised signatories
Section 8.3:
DDUGKY
Project fund management (contd…)
 8.3.3.3 Imprest Management (Petty Cash Management)
PIA may pay in cash against expenditure not exceeding Rs. 40,000/- per month for each of these
cost centres – (a) training centre, (b) residential facility and (c) project state office. To facilitate
imprest management, a PIA can maintain cash imprest with a designated person at the cost
centre. The exact amount of cash imprest is left to discretion of a PIA within the cap of ₹ 40,000/for each expenditure location.
Section 8.4:
Protocol for delivery of cash and non cash
entitlements
 8.4.1 General procedures
The candidates are entitled to following financial assistance:
 Cash entitlements
 Food and To and Fro Charges
 Post Placement Support
 Non cash entitlements
 Boarding and lodging during training
 Boarding and Lodging during OJT
 One Time Travel Cost
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Section 8.4:
Protocol for delivery of cash and non cash
entitlements (contd…)
DDUGKY
 8.4.4 Payment of Post Placement Support
PPS
instal
ent
Timeline
Amount
(₹)
Proofs required for payment
1st
instal
ent
To be paid within 7 days of
job. PIA can also pay in
own risk if the PIA has
the candidate will join the
1,000/-
Joining
2nd
instal
ent to
last
instal
ent
10th of next calendar month
1,000/-
letter
from
the
Records for the previous month:*
 Salary slip joint certificate from
employer and candidate on
 Bank transfer payment proof of
pay
Section 8.4:
Protocol for delivery of cash and non cash
entitlements (contd…)
 8.4.5 One time travel cost
A lump sum financial assistance is provided to the candidates
to facilitate essential travel required under the program for the
following purposes:
 From usual place of residence* to training centre (for
residential candidates only)
 From training centre/ usual place of residence to OJT place
 From OJT place to training centre if OJT is in the middle of
training programme
 From OJT/Training centre to usual place of residence
 From OJT/Training centre/usual place of residence to place of
1st employment
 One time travel for emergencies from OJT/Training centre to
usual place of residence and back
( *Usual place of residence is normally where the candidate or his family
stays. However, if the family has shifted, a candidate can specify a different
place as the place of stay).
DDUGKY
Section 8.4:
Protocol for delivery of cash and non cash
entitlements (contd…)
DDUGKY
Eligibility for travel is defined as follows:
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Rail sleeper class of travel including tatkal charges.
Bus transport of any public sector undertaking
Private bus transport up to a maximum of twice the rail sleeper fare
If a PIA exercises options other than the above list, fare will be subjected to a
maximum of three times of the rail fare (if places are not connected by a rail line
road distance can be used for arriving at the rail fare)
In addition to the travel cost, food and boarding cost while in transit, a PIA
would be eligible to book the following expenditure under the head One Time
Travel Cost:
•
•
•
•
•
•
Agency charges: Agency charges as permitted or levied by government/public sector
organisations is admissible. If the booking is through private agencies equivalent
service charges is admissible
Service tax and education cess: Element of service tax, and education cess is
admissible
No cancellation charges are admissible. Cancellation charges, if any shall be borne by
PIA
All bookings should be managed by the PIA or an agent authorised by him.
All travel should be supported by a statement from the candidates and a travel ticket
or voucher
Expenditure incurred towards One Time Travel should be audited by the Periodical
Auditor at the time of release of instalments
Section 8.4:
Protocol for delivery of cash and non cash
entitlements (contd…)
DDUGKY
 8.4.6 Boarding and lodging facilities to the candidates
Maximum amount a PIA can book under head - Boarding and
Lodging Facilities for candidates will not exceed the amount
specified in the DDU-GKY guidelines and the sanction order.
 PIA will be eligible to book expenditure incurred towards Boarding
and Lodging Facilities for candidates from the following two options,
whichever is lower:
 Actual amount spent on boarding and lodging as per the audited figures
 Amount a PIA is entitled to receive based on attendance of candidates
in a residential centre. Procedure for calculation of allowable amount
based on attendance is explained below.
Section 8.4:
Protocol for delivery of cash and non cash
entitlements (contd…)
DDUGKY
Attendance in the residential facilities
 A residential place will have a separate geo tagged, time stamped
biometric attendance system
 The attendance will be taken once in a day between 6 PM and 10
PM
 As sometimes candidates miss out on attendance for a variety of
reasons (some of the reasons are: go out of station for short
duration or in weekends, illness, forget to mark the attendance
etc.), a minimum of 75 % attendance is compulsory to conclude
that the candidate has availed residential facilities
Section 8.4:
Protocol for delivery of cash and non cash
entitlements (contd…)
 8.4.7 Booking of expenditure incurred on uniform
Slab
Hours
Rate per trainee
A
Up to 1152
₹ 1000
B
>1152 hours
₹ 2000
DDUGKY
Section 8.5:
Payment of salaries to trainers, Master
Trainers and Q team members
DDUGKY
Verification of payment of salaries to trainers, master trainers
and Q team members
 All details of payment such as payment due, amount paid and
delays in payment will be captured in PFMS.
 In the interim PIA should develop a system on their website to
share the following information:
 The actual payment due and the date the amount has to be paid
for a candidate
 The amount paid and the date of payment to the candidate along
with proofs.
 A calculation sheet indicating the individual cases of underpayment
and delayed payment along with a summary statement.
Section 8.6:
Verification of Amount received as take
home salary in a candidate’s bank Account
DDUGKY
 Take home salary paid to a candidate will be known from one of
the following:
 Successfully completed bank transfer statement of the employer,
 bank statement of the employer with salary payment transaction
duly marked and certified by PIA
 passbook entries with salary receipt transaction of the candidate
duly marked and certified by PIA
 From the above data a PIA will prepare “SF 8.6A: Amount
transferred to a candidate’s bank account as take home pay” as
per the monthly verification process.
 Periodic auditor will certify the statement and CTSA/SRLM will
verify and freeze it as per timelines and steps given in monthly
verification process.
Section 8.7:
DDUGKY
Protocol for asset management
Asset purchased under the project shall be classified under asset block as
specified by department of income tax. Assets purchased in a financial year
under each block not exceeding ₹ 10,000 can be written off in the same year.
 8.7.1 Asset permitted to be purchased under the project
A PIA can purchase the following assets without EC approval:
 The assets given below even if asset block value exceeds Rs 10,000 in a financial
year:








Bio metric equipment
Fire extinguisher
CCTV camera and recording apparatus
Computers, printer, scanner and copier for office use
Projector
Training centre furniture for academic and non-academic areas e.g. – chairs, table,
almirah, racks
Water dispenser
First aid kits
 Any asset/s whose block value does not exceed ₹ 10,000 in a financial year
PIAs need not specify such assets in their project applications submitted to MoRD.
Section 8.7:
DDUGKY
Protocol for asset management
 8.7.2 Assets requiring EC approval
All assets other than those specified above should be approved by EC of
SRLM/MoRD. Assets to be purchased should preferably be included in the
application and considered by EC at the time of project sanction.
For category A and B where tablet computer cost is approved by EC, it has to be
procured as per procedure of chapter 4.
 8.7.3 Depreciation and amortization
Depreciation and amortization shall be charged as per the rates specified by the
Income Tax Act, 1961 as amended from time to time.
 8.7.4 Disposal of assets
All assets, other than the Tablet computers, purchased under the project shall be
taken over by the PIA on its residual value before the closure financial audit. The
residual value, if any, will be adjusted against instalments due or through a recovery,
as the case maybe. However, Tablet computers are to be disposed off through
distribution among trainees (at zero cost) and as per the detailed procedures notified
in “SI 8.7A: Procedures for procurement, accounting, distribution and disposal of
tablet computers”, in this chapter.
Residual value is the book value of the asset after depreciating it as per Income Tax
Act.
DDUGKY
Section 8.8:
Training cost and incentive payment
Training cost
 Pre-defined Training Duration (refer to Table 1 of sub-section 3.2.2.4 of
DDG GKY Guidelines)
SLAB
Training
Rate per hour Calculation
duration (hrs) (₹)
hour)
A
B
C
D
576
1152
1728
2304
23.7778
16.625
13.6354
11.5460
(per Maximum Rate
(₹)
(13696)/576
(19152-13696)/576
(23562-19152)/576
(26602-23562)/576
13696
19152
23562
26602
 Flexible training Duration – training duration other than pre-defined
training duration
SLAB
Training
(hrs)
E
F
G
577 to 1151
1153 to 1727
1729 to 2303
Incremental Rate per hour Calculation
9.472222222
7.65625
5.277777778
(per
(19152-13696)/576
(23562-19152)/576
(26602-23562)/576
Section 8.8:
Training cost and incentive payment
(contd…)
DDUGKY
 Incentives
Sl.
No.
Incentive category
Rate per
candidate
1.
Live distance training
2.
Counselling for trainees placed in foreign countries
3.
Career progression
5,000
4.
One year retention
3,000
500
10,000
Section 8.9:
Appointment of auditors
• PIA is free to appoint one auditor for the role Periodical
Auditor and Annual Auditor, subject to applicable
regulations of the Institute of Chartered Accountants of
India (ICAI)
DDUGKY
Section 8.12:
DDUGKY
Thematic verification
 Verification of books, accounts and records needs to be
conducted in accordance with the directions of MoRD
Section 8.14:
Financial management information system
Discussed in PFMS and relevant sections
DDUGKY
DDUGKY
Thank you
DDUGKY-NIRD