Accrual Based Accounting System in Cantonment Boards (PILOT Project)

DGDE has envisaged the introduction and successful implementation of an already established accrual based (double entry) accounting system, called ABAS. It will be executed in an IT environment whereby day-to-day financial transactions would also be integrated in the system. A pilot project meant to achieve the objective has been started initially in  02 Cantonment Boards of Agra & St. Thomas Mount cum Pallavaram (Chennai). A Consultant will be engaged to plan, implement and execute the Project. Subsequently ABAS will be implemented in all the 62 Cantonment Boards in a definite time frame. Implementation of ABAS will ensure greater accuracy, transparency and efficient capital & revenue administration in the Cantonments.

The proposed accrual based accounting system (ABAS) will have to conform to the guidelines contained in  Nation Municipal Accounts Manual (NMAM) issued by the MoUD.

The proposed accrual based accounting system will be implemented in an IT environment. The consultant will be required to develop the ABAS such that the cash based, accrual based and adjustment transactions are integrated into the ABAS in real time. On successful completion of the pilot project in the two Cantonment Boards, there will be an integrated system in an IT database wherein all transactions related to revenue and capital nature, including accrued transactions, should be reflected in the Cantonment Board Accounts and relevant financial statements.

The project is intended to evolve a Cantonment Board Accounts Manual (CBAM), on the basis of guidelines given in the NMAM, which will play a key role in enabling the Cantonment Boards to achieve the overall benefits of ensuring a transparent, efficient, and informative accounting system. CBAM proposed to be developed by the consultant will describe the manner of accounting and financial reporting under the accrual basis of accounting.

Till the successful implementation of the new accounting system, the consultant will have to plan the transition phase in such a manner that the existing cash based accounting system and the proposed accrual based double entry system will have to proceed together. The two parallel systems will have to run simultaneously till the ABAS stabilizes and the revised Cantonment Account Code is notified by the Government.

The proposed ABAS for Cantonment Boards will be incorporated in the proposed Cantonments Account Code (existing Cantonments Account Code, 1924 needs to be amended).

On successful completion of the Implementation Phase 3 of the project in the two Cantonment Boards, all remaining 60 Boards will implement the ABAS by locally hiring/appointing the Chartered Accountants and IT programmer/ system administrator. Consultant will be required to provide suitable advice to these Cantonment Boards in implementing the system and problem-solving. The consultant will have to oversee the implementation of the product application and ABAS in these Boards and also ensure problem solving.

Status:

1) EOI invited and companies/ firms shortlisted.
2) RFP invited on 08.08.2011
3) Last date of receipt of Technical and Financial bids - 07-09-2011