IFMIS ,GoMP

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-a first look.

IFMIS is an ICT application

Is an integrated web-based system for all core public finance functions.

• Planning • budget preparation • execution • accounting • reporting, • Monitoring

Key feature is integration of modules through a common, single, reliable platform database .

WHY IFMIS ?

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Different departments maintain independent decentralized databases. Disparate IT systems.

• • • • •

Multiplicity of data entry.

Data inconsistency.

Limited accounting information availability.

Rigid Reporting system.

No transparency. Delays .

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IFMIS Sub-System Details

FMIS

Project Management Planning Budget Receipt & Disbursement Strong Room Deposit Debt & Investment OA – GL & FA OA – Purchase & Inv.

Internal Audit

HRMIS

Performance Management Employee Self Service Service Matter Payroll

PMIS

Pension Management

• • • • •

What IFMIS can do ?

Enables one time data capture of budget sanction, allocation ;payment and receipts, revenues, human resources : reducing manual work, data redundancy and reconciliation issues – increasing data accuracy and timeliness.

Double entry system, supports migration to accrual accounting.

Seamless Integration of various processes ensuring final audited accounting data can be drilled down to lowest level / point of capture.

Implies online submission of treasury accounts-E vouchers/ECS.

AG interface to facilitate consolidation.

Purchase and Inventory

GL Integration with Sub-Ledgers

Invoice Creation Debt & Invest ment Asset Addition & Maintenanc e Receipt and Disburseme nt General Ledger AG Office Project

Cash Accrual

Deposit s Pension HRMS Payroll Budget

What IFMIS can do?

• • Centralised Processing.

Reporting against Budgets  Both DDO-wise and DDG wise Reporting. Expenditure tracking becomes easy.

• Enables system for cash control and management.

• Budgets formulation, resource management, and program administration are based on real time data.

• transparency and accountability increases. Reduces political discretion ; deterrent to corruption and fraud

COMPONENTS OF A TYPICAL IFMIS

General Ledger –is the Heart..

• The General Ledger constitutes the central “books” of any IFMIS. Every transaction entered into the system posts to the General Ledger, starting with the allocation of budget funds through to the commitments to payment for goods and services.

General Ledger.

• All transactions simultaneously post to the General Ledger and to all appropriate sub-ledgers/modules following the rules imposed by a standardized chart of accounts.

• These records remain as a permanent track of the history

of all financial transactions

, and represent the source from which all reports and financial statements are processed.

• •

What IFMIS involves ?

Centralisation of all Masters – Account Code Directory, Grants, Object Heads and Category and their relationships, Controller Codes, Department Codes,treasury codes, DDO Codes ,employee code, GPF number.

One time data capture: reducing manual work, data redundancy and reconciliation issues – increasing data accuracy and timeliness.

• • • Classification and budget allotments would be sealed at MoF level.

Rejection of erroneous and invalid data at the lowest level.

ECS.

3 4 5

Sr. No.

1 2

Role of AG in IFMIS

Particulars

Chart of Account Budget + 3 supplementary + revised estimates

Sub Module

Budget Budget

Function in old system Function in IFMIS, if used

Upload in VLC No Need Upload in VLC No Need Grant Primary Accounts Out of Treasury Transaction Budget General Ledger General Ledger Upload in VLC Upload in VLC Recording in VLC No Need • Separate accounts maintained for AG • Online verification • Adjustment in AG’s account • Periodic transfer Entry • Online availability of pension, PF and other state transactions • Advice recording • Bank Reconciliation for cash settlement

Role of AG in IFMIS

Sr. No.

6 7 8

Particulars

Clearance memo transactions GPF Number for employee Employee wise GPF amount

Sub Module

Debt and Investme nt HRMIS Service Matter HRMIS Payroll –

Functions in old system

Recording in VLC Uploading in VLC

Functions in IFMIS,if used

• Computer Section – Recording CM • Book Branch – map with concerned section • User role – loan/investment /OTT • Approval and accounting transaction • HRMIS will maintain GPF number information in IFMIS System • No need as IFMIS have employee wise GPF deduction and withdrawal details

DPF – GPF treatment in IFMIS

• Mapping of GPF Number with unique employee code will be maintained in IFMIS System • DPF and GPF balance on pre-determined cut-off date will be migrated to IFMIS System • DPF to GPF conversion – new GPF number will be generated • Balance of DPF will migrated to GPF with the help of T entry • GPF and DPF Interest will be calculated by IFMIS System

Short term issues :

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Changes in the Chart Of Accounts structure.

DH MH SMH MH SH ScH PH OH DH P/NP V/C F1 F2 Chart Of Accounts changes and Standardization:

Where DDO’s are executing projects Budget preparation from DDO to BCO will include project code Budget allocations from BCO to DDO will include project code .

Additional account heads (P,R)for accrual accounting?

Other Challenges before A&E Office

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Short Term:

 Changes in manuals.

 Detecting and giving feedback for filling in the gaps in System Design.  Validation of Budgetary classifications.

Medium Term

 Ensuring capture of Off – Budget transactions.

 Integrating Municipal and Panchayat accounts.

Migration Modalities –Continue to Upload in VLC initially ?

IFMIS AG – Existing System Treasury Financial Information Updated Accounts Request for change Verify, Update and Finalize Works Department Financial Information Updated Accounts

IFMIS - Reports View Monthly and Annual Finalized Data

Monthly Statement in electronic format Monthly and Annual Finalized data in electronic format Out of Treasury transactio ns Consolidate Data of all treasuries and works department s

Progressive Obsolescence

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INTEGRATED IFMIS APPLICATION

Disbursement and Works

ALL Disbursem ent Financial Informatio n

AG Office

Verify, Update and Finalize ALL Works Departmen t Financial Information Out of Treasury transactio ns

IFMIS - Reports

View Monthly and Annual Finalized Data NO need for Consolida tion AG – Existing System Import final account informatio n from IFMIS, if required

Stages for Migration to Accrual Accounting

Stage I Accrual recognition of current expenses payable.

2000 P 3999 P Stage II Accrual recognition of non tax revenue.

Stage III Stage IV Stage V Accrual recognition of all Capital Expenses as well as recognition of Depreciation (exceptions - land, heritage, intangibles) Accrual recognition of all Capital Expenditure including things left our earlier Full Accrual Accounting 1999 R or 4000 R 4000 P to 5999 P 4000 P to 5999 P

Proposed Chart of Account under Accrual Method

Consolidated Fund

Debit

Particulars

Revenue Expense Head

Revenue Expense Payable

Capital Expense Head

Capital Expense Payable

Loans and Advances

Loans and Advances Payable Major Head

2000-3999

2000P-3999P

4000-5999

4000P-5999P

6000-7999

6000P-7999P Particulars

Revenue Income Head

Revenue Income Receivable

Capital Income Head

Capital Income Receivable

Public Debt

Public Debt Receivable

Expenditure Head Deposits

Deposits Payable

Advances

Advances Payable Loans Receivable and Contingency Fund

8000 Revenue Head

Public Account Fund

8001 - 8999 Deposit

8001P – 8999P Deposit Receivable

8001 – 8999 Advances

8001P – 8999P Advances Receivable Advances

Remittance 8001 - 8999 Remittance Credit

Major Head

0-1999

0R-1999R

4000

4000R

6001-6004

6001R-6004R 6000R-7999R

8000 8001 – 8999

8001R – 8999R

8001 – 8999

8001R – 8999R

8001 – 8999

Wonderful vision of a totally integrated system….but..

  High Risks (GIGO) Uncertainity.

 Data security issues for internal system ,users and for external interfaces .

• • • • •

Data entered once, used many times Common data model, data naming, data dictionary Shared business rules Sharing of code Derived values in one module used by other modules

Long Term.

There would be an

eventual elimination

of our functions and responsibilities once IFMIS takes off • Correction • Consolidation • Reconciliation of Accounts • Maintenance of Entitlement accounts.

would become redundant functions.

“

The future ain’t what it used to be”

-Yogi Berra.

Thank you!!