lmplementation of lntegrated Budget and Expenditure module (English)

Document text

F-1 6/1 4i5lAccounting TreatmenV2025-FA-Vl I Dated.27 .04.2026 CIRCULAR Subject: lmplementation of lntegrated Budget and Expenditure module-regrading ln continuation of ongoing efforts towards strengthening financial governance and transitioning to a fully ERP-based budget control system, it has been decided to implement the integrated budget and expenditure module in ERP across all Field Offices/Accounting Units and Divisions at Headquarters with effect from 0l April 2026. ln this regard, a Standard Operating Procedure (SOP) on reconciliation of Budget Allocation, Expenditure and Available Balance between Manual Records and ERp system is enclosed for strict compliance. This arrangement shall continue till the full operationalization of ERP Budget Module, and discontinuation ol manual system through formal orders. It is further added that soon budgetary control shall be applied al lund request and expenditure level i.e. in respect of all accounting units, all Jund request will be tied up to budgetary control at major budget head level and further these available funds will be tied up to corresponding minor budget head level. ln this connection detailed guideline will be issued in due course. All Field Offices and Divisions are directed to ensure strict adherence to the SOp and timelines. Any deviation will be treated as a lapse in financial discipline. e'*f#HH*.*, ffm* V ;irnbwes snn nsunuce conponlrpr AAi. qa"& rna*r*il iE , dffi-uool !1f!'iuinirryorL*oo'tE!'lproyil.ot,covrolrrdi.) ,*q|/J:ffiXTr.l8#illcrGrlAnG.NE1r0E]_Hr-rto0m $*N! Mc$ rc.n /rw€sf,.n q-dq. -qr Arfrz +qTq, 1 . qfr frlr 3{rg6 / Afu-trr ugm,rrfl-Aen, , gcqrdq - l.$ frd (cftfkd{HE) frtero (fr'flt z. e'.rfifrncigo letiuy rftfr'€rergm 1S{u1 s. s,fr etfiq fttero / ftlaro grr$ I €go fttero p',r$, etfiu arulau I sq-t*q otqidq +. sS frfu-er erefiero I Sq, {vwr{fi ersdrd I tBdEr r d-ca ot&s s. ftfr-er frtcm (ffi) / frfu-gr ftteffi Orsrl Standard Operating Procedure (SOp) Integration of Budget, Funds and Expenditure 1. Objective 1.1 The oljective ofthis SOP is to establish a structured, robust, and accountable mechanism to ensure accuracy, consistency, and completeness of financial data during the transitional phase iarherein budget . control contjnues through manual records ihile parallel accounting is undertaken in the ERP system. 1,.? The SOf places lpecial emphasis on achieving seamless integration ofbudget, funds, and expenditure in ERP. 2. Applicability 2..1 .This SOP-shall apply to all Field Offices and Accounting Units, all Divisions q-t Headquarters, and all concerned wings includirig Finance, Accounts, Budget, and IT/ERP Divisions. 2.2 It shall be effective from 01 April 2026 and shall remain in force until full operalionalization of ERP-based budget and fund management processes and discontinuation of manual systems. 3. Scope of Integration and Reconciliation 3.1 The reconciliation exercise shall cover all f,nancial dimensions reqllired fo! _ effective budgetary control, including head-wise veriflcation of budget allocation, cumulative expenditure Incurred, and the resulting available balance. 3.2.The process shall ensure that budget provisioning, fund allocation, and actual expenditure are fully aligned across iranual and ERp systems,. enabling accurate flnancial tracking and preventing mismatches. 3.3 The scope and coverage of reconciliation shall adhere to codal provisions requiring strict classiflcation under appropriate Major and Minor Heads to ensure accuracy in financial repbrting and ficilitate audit control. 4. Roles and Responsibilities 4.1 AII Accounting Units shall maintain manual budget control registers, ensure accuracy of ERP data, prepare monthly reconciliation statements, identi$r dis-crepancies, initiate corrective action(if any) in a limely manner and shall submit a monthly statement in the presbribed format to the respective Divisions at Head(uarters. 4.2 Divisional Heads at Headquarters shall review and monitor the ryol_tlly statements. A consolidated report in the prescribed format shall be submitted to FA 7-Budget branc[, Hqrs. 4.3. FA7 Budget -branch shall review the consolidated monthly statement received from the divisions and shall act as the nodal authority for ensuring the reliability of financial data. 4.4 The ICT Division shall ensure system availability, data integriff, generation of accurate reports, maintenance of audit trails,- and provision of technical support for smooth ERP operations. 4.5 These responsibilities are aligned with the ESIC Manual of Audit and Accounts Volume I, which mandates correctness of accounts, reconciliation of figures, and prompt rectification of discrepancies. 5. Reconciliation Process 5.1 Financial data shall be extracted from both manual records and ERP reports 5.2 A comprehensive head-wise monthly statement shall be prepared by all the accounting units as per Annexure-A and submitted to respective divisions by the 15th of the following month. 5.3 Differences between the manual records and ERP shall be identifled and analyzed, with discrepancies (if any) due to recording errors, miscla ssification, or omissions. 5.4 All discrepancies shall be rectifled promptly through authorized corrections, ensuring proper audit trails in ERP and authenticated corrections in manual records. 5 . 5 Divisional Heads at Headquarters shall review and monitor the monthly statements. A consolidated report as per Annexure 'B' shall be submitted to FA 7-Budget branch, Hqrs by 21st of the following month. This SOP shall remain in force until ERP-based systems are fully implemented and stabilized and manual systems are formally discontinued.