Case Study | PRERNA Budget Monitoring System

Meet our Founder & CEO, Mr Harsh Kumar, at GITEX Global | 14 - 18 Oct | Dubai World Trade Centre | Book Appointment

Download: Fundamentals for customized software development

Uttar Pradesh State Rural Livelihood Mission improves its Budget Allocation and Fund Utilization by implementing our PFMS integrated Budget Management System

Overview

The platform leverages advanced digital tools to ensure efficient and timely utilization of funds at the district level in UP

Tag

#Government

Industry Type

Government

Business

B2G

Region

India

Project
Overview

In collaboration with ICICI Bank and the Uttar Pradesh State Rural Livelihood Mission (UPSRLM), a web platform has been designed to streamline and enhance the budget allocation and sanction processes for various livelihood schemes in Uttar Pradesh. This initiative is spearheaded by the Department of Rural Development, Government of Uttar Pradesh, with the UPSRLM functioning as the nodal agency. The platform leverages advanced digital tools to ensure proper and timely utilization of funds at the district level, aiming to transform rural livelihoods across the state.

Problem Statement

Prior to the implementation of this web platform, the budget allocation and sanction process for livelihood schemes in Uttar Pradesh faced several challenges:

Inefficiency: Manual processes led to delays in fund transfers and approvals.
Lack of Transparency: The absence of a centralized system resulted in poor tracking of fund utilization.
Misutilization of Funds: Funds were often delayed or misallocated due to the lack of proper checks and balances.
Limited Accountability: The manual process did not provide a robust mechanism for accountability and monitoring.

Objective

The primary objective was to develop a digital platform that:

Streamlines the process of budget allocation and sanction.
Ensures timely and accurate utilization of funds.
Provides transparency and accountability in fund management.
Integrates seamlessly with the Public Financial Management System (PFMS) to facilitate direct fund transfers from the head office to vendors.

Research
& Study

The creation of this platform involved extensive research and study, including:

Needs Assessment: Conducting detailed needs assessments with stakeholders at UPSRLM, district level heads, and vendors to understand the specific challenges and requirements.
Technology Evaluation: Evaluating various technologies and platforms to determine the best fit for automating budget allocation and integrating with PFMS.
Regulatory Compliance: Ensuring that the platform complies with relevant regulations and guidelines for financial transactions and data security.
User Experience Design: Designing an intuitive and user-friendly interface that would be easy for district officers and head office personnel to use.
Security Measures: Implementing robust security measures, including security keys, to ensure that only authorized personnel can make changes or approve transactions.

Solution

Our solution involved the development of a comprehensive web platform that leverages cutting-edge technology to address the challenges identified. Here are the key components of the solution:

Digital Checklist

Key Features:

Scheme Management: A detailed digital checklist that includes the scheme name, scheme component, vendor name, bill number, and vendor work progress report.
Automated Tracking: Automated tracking of each step in the budget allocation and fund utilization process, ensuring that all actions are logged and can be audited.
Verification and Authorization: Each step requires verification and authorization by entering a security key, ensuring that only authorized personnel can proceed, thereby minimizing errors and misuse.

Integration with PFMS

Key Features:

Direct Fund Transfers: Integration with the Public Financial Management System (PFMS) to enable direct fund transfers from the head office to vendors, bypassing district accounts.
Real-time Updates: Real-time updates on the status of fund transfers, providing complete visibility into the financial transactions.
Elimination of Delays: By eliminating intermediaries, the platform ensures that funds are transferred without delays, facilitating timely project execution.

User Interface and Experience

Key Features:

Intuitive Design: A user-friendly interface designed to be intuitive for district officers and head office personnel.
Real-time Dashboards: Dashboards providing real-time insights into budget allocation, fund utilization, and project progress.
Role-based Access: Role-based access control ensuring that users can only access information and perform actions relevant to their responsibilities.

Security and Compliance

Key Features:

Security Keys: Implementation of security keys for verification and authorization at each step, ensuring that only authorized personnel can approve transactions.
Compliance with Regulations: Ensuring that the platform complies with relevant financial and data security regulations.

Implementation Highlights

Streamlined Processes: The platform automated and streamlined the budget allocation and sanction processes, significantly reducing errors and delays.
Enhanced Transparency and Accountability: Real-time visibility into fund utilization and robust checks and balances ensured transparency and accountability at all levels.
Timely Fund Transfers: Direct integration with PFMS enabled timely fund transfers, ensuring that projects were not delayed due to financial constraints.
User Training: Comprehensive training programs were conducted to ensure that all users could effectively use the platform, maximizing its benefits.

Benefits Achieved

Increased Efficiency: Automated processes and direct fund transfers significantly increased operational efficiency.
Reduced Delays: Elimination of intermediaries and direct fund transfers reduced delays in project execution.
Improved Transparency: Real-time visibility and robust audit trails improved transparency and accountability.
Minimized Misutilization: Security keys and role-based access control minimized the risk of fund misutilization.