Fund Flow Tracking System

Background

Under the Local Government Act, 2013, the Government of Khyber Pakhtunkhwa was required to transfer 30 percent of development resources to devolved entities i.e. District, Tehsil and Village and Neighbourhood Councils (VC/NCs). While mechanism for tracking of district development share was integrated in the FMIS, no such mechanism existed at the tehsil and VC/NC level. For this purpose, DCS-SNG designed and implemented an SMS-based Fund Flow Tracking System. This system provides real time information about fund flow and utilization for 3501 number of VC/NCs in 25 districts of the province. These VC/NCs are widely dispersed across urban, rural, remote and mountainous regions and accessibility to these areas was not easy for the local government and planning and development department officers, so therefore an SMS based system was the preferred choice because of its outreach – mobile service is available across the whole province; and cost effectiveness as it required the secretaries of the VC/NCs to have a simple mobile phone.

Key benefits to the Government

  • SMS-based Fund Flow Tracking System enabled the local government and planning and development departments instantly watch the variation in the utilization of VC/NCs funds through a dashboard displayed on a screen in their offices. The system enabled the higher authorities of the LGE&RD department not only to track the utilization of funds in real-time but can also cross-check the actual figures of the approved funds with those of the Finance Department as shown in their statements of releases.
  • Analysis of expenditure could be made on district, tehsil, or VC/NC levels and reports could be generated on the basis of low or high performing units of local government, so that informed and timely corrective actions were initiated by the top management of the department.
  • The SMS-based Fund Flow Tracking System has been appreciated at the highest level of the government for its cost effectiveness and easy-to-use technology. Since the SMS-based system is currently limited to the tracking of VC/NCs funds only, the Directorate General local government office is envisaging to expand its scope to the tehsil and district tiers of the local government.