Transcript Configure to fit Presentation

PUBLIC SERVICES
FINANCIAL MANAGEMENT INFORMATION SYSTEMS:
ESSENTIAL TOOLS FOR GOVERNMENTS EVERYWHERE
PRESENTED BY
MICHAEL VLAISAVLJEVICH
MANAGING DIRECTOR - BARENTS GROUP
TO THE
INTERNATIONAL CONSORTIUM OF
GOVERNMENTAL FINANCIAL MANAGEMENT
APRIL 2, 2003
PUBLIC SERVICES
MICHAEL VLAISAVLJEVICH
MANAGING DIRECTOR
BARENTS GROUP
1676 International Drive, Suite 7275
McLean, Virginia 22102
E-mail: [email protected]
Website: www.bearingpoint.com
Phone: 703.747.3234
Fax: 703.747.3813
Page 1
FMIS
PUBLIC SERVICES

Technology enables reform

Critical tool for proper expenditure control

Processes all transactions

Records and accounts revenues and expenditures

Essential for transparency and accountability
Page 2
FMIS PACKAGES ARE FEASIBLE NOW
PUBLIC SERVICES

Packages have been tested and implemented in countries at all levels of
development

Tailored to the processes of the government sector

Project budgets should be carefully matched to project scope and size

Capable client project management is a key to success
Page 3
PUBLIC SERVICES
KAZAKHSTAN TREASURY MODERNIZATION PROJECT
Page 4
PROJECT FUNDED BY WORLD BANK
PUBLIC SERVICES


To assist the government in strengthening the budget execution system by:
 Supporting the establishment of computerized treasury system
 Training of personnel
Overall aim is to enhance the capacity of the government for:
 Effective use of cash resources
 Monitoring budget execution
 Production of timely and accurate financial information
Page 5
PHASED APPROACH
PUBLIC SERVICES


BearingPoint was selected to assist the government of Kazakhstan to manage
the Project
Designed the Project for implementation through Phased Approach

Phase 1 -
Development of a functional design for the Treasury system

Phase 2 -
Development of computerized Treasury system and testing at
pilot sites

Phase 3 -
Replication of the system throughout the country
Page 6
PROJECT DESIGN
PUBLIC SERVICES

Treasury Ledger – Focal point of the government financial management

Commitment Accounting – Essential tool for expenditure control

Accounts Payable – Mechanism for paying government expenditures in
coordination with Commitment System

Revenue Management – Captures all sources of revenues for consolidation

Payroll – Regional system for paying government employees

Cash Management – System for reconciliation of Treasury Single Account
and managing cash resources

Asset Management – System to register all government assets in broad
categories
Page 7
PHASE 1
PUBLIC SERVICES



Prepared a functional design for the new Treasury system and developed related
procedures and manuals
Assisted the government in establishing the new budget classification system based on
IMR GFS classifications
Established Standard Chart of Accounts

Assisted the government to upgrade the in-house technical capacity

Trained Treasury personnel on the new Treasury system and procedures



Developed hardware and software specifications for the technology platform required to
set up the Treasury information system
Developed hardware and software specifications for the technology platform required to
set up the Treasury information system
Assisted the government in the procurement of the required HW and SW
• Preparation of RFP
• Tendering
• Evaluation of Proposals and selection of the most preferred bidder
• Contracting
Page 8
PHASE 2: BEARINGPOINT MANAGED
PUBLIC SERVICES
HP/ORACLE Implemented:
 Treasury Ledger
 Commitment Accounting
 Accounts Payable
 Revenue Management
 Cash Management
 Asset Management

Using the standard features of ORACLE Financials

No customization of functionality; Developed few custom reports

The government decided to put Payroll implementation on hold
Page 9
IMPLEMENTATION
PUBLIC SERVICES






Developed detailed functional specifications for individual modules of the Treasury
system
Performed as technical advisor to the government of Kazakhstan on hardware, software,
training and project management areas
Provided technical advice to ORACLE team in mapping the Kazakhstan Treasury
requirements with the features of ORACLE applications
Assisted in the development of training program and materials
Performed as medium between the contractor and the government of Kazakhstan in
dealing with the day-to-day matters relating to the project
Assisted in pilot-testing the system at Central Treasury, 2 ministries, 2 oblast treasury
offices and 20 rayon treasury offices
Page 10
PHASE 3: SYSTEM REPLICATION THROUGHOUT
THE COUNTRY
PUBLIC SERVICES


The involvement of BearingPoint completed after successful testing of the
system at pilot sites
The government of Kazakhstan, HW Supplier Hewlett Packard and SW Supplier
ORACLE performed the system roll-out to the remaining oblasts and ministries
Page 11
GENERAL REMARKS ABOUT THE PROJECT
PUBLIC SERVICES


The first Treasury Reform project in the former USSR that successfully
implemented a government accounting system using off-the-shelf package
The first project of its kind in the region that systematically implemented
Treasury Single Account in conjunction with a treasury system
Page 12
PUBLIC SERVICES
NATION BUILDING: RAPID PUBLIC SECTOR FINANCIAL SYSTEMS
IMPLEMENTATION IN WAR TORN KOSOVO
Page 13
THE MANDATE: SECURITY COUNCIL RESOLUTION
1244
PUBLIC SERVICES


Establish in Kosovo an interim Civilian Administration with:
 Legislative and Executive powers
 Administration of the Judiciary
Promote the establishment of substantial autonomy and self-government
Page 14
THE CHALLENGE FOR FINANCIAL MANAGEMENT
PUBLIC SERVICES


Build a Financial Management process and system from nothing
 No laws or regulations
 No people or infrastructure
 No banking system
Protect the integrity of the revenue raising and expenditure process
 Issue of donor confidence
Page 15
GOOD GOVERNANCE
PUBLIC SERVICES


Clarity of roles and responsibilities of levels of government and public entities
Open decision processes particularly for budget preparation, execution, and
reporting

Public availability of information

Independent assurances of integrity through external audit

Source: IMF Code of Good Practices on Fiscal Transparency
Page 16
CENTRAL FISCAL AUTHORITY
PUBLIC SERVICES

Manage the Kosovo Consolidated Budget (KCB) consisting of:



General government
Municipalities
Public enterprises

Formulate overall fiscal strategy based on sustainability

Develop revenue and expenditure policies

Develop revenue raising programs

Determine procurement framework

Conduct internal audit

Manage the Kosovo Consolidated Fund

Responsible for financial reporting
Page 17
CENTRAL FISCAL AUTHORITY ORGANIZATIONAL
CHART
PUBLIC SERVICES
Kosovar
Co-Head
Internal Audit Unit
International
Co-Head
Macroeconomic
and Budget Policy
Unit
Interim Head
Corporate Services
Group
Treasury
Budget Office
Tax Administration
Interim Head
Interim Head
Interim Head
Cash Management
and
Control
General
Government
Operations
Accounting and
Financial Reporting
Health and Social
Welfare
Programs
Treasury
Operations
Public Safety
Information
Management
Regional
Operations
TransportEconomic
Customs Service
Interim DirectorGeneral
Public Procurement
Regulatory Body
Interim Head
I
nformatics, Standards
and Communications
Interim Head
Procurement
Instructions and
Documents
Services and
Support
Assistant
Director
Publication
Development
Assistant
Director
Monitoring and
Mediation
Policy and
Standards
Director of
Customs
Technical
Assistance and
Training
Education
Budget Coordination and
Operations
Page 18
TREASURY OPERATIONS
PUBLIC SERVICES



Expenditure and revenue controls
Banking arrangements

Banking and payment authority of Kosovo (BPK)

Commerzbank – Frankfurt

Micro Enterprise Bank – Pristina
Instruct agencies

Funds management

Accounting for expenditures and revenues
Page 19
IT SYSTEM DEVELOPMENT AND SUPPORT
PUBLIC SERVICES
Informatics, Standards
and Communications
Interim Head
Key Issues
Services and
Support
Development
•Develop System to meet
Kosovo requirements
•Simple Maintenance
Policy and
Standards
Page 20
IT SYSTEM DEVELOPMENT AND SUPPORT
PUBLIC SERVICES


Accounting application specifications
 Meet sound internal expenditure control procedures
 Provide management reporting for accountability
 Satisfy international reporting requirements under GFS
 Complex mix relating to donations for budget funding and reconstruction
project financing
 Expandable to cover requirements of lower tiers of government
FreeBalance system implemented
Page 21
PUBLIC SERVICES
AFGHANISTAN GOVERNMENT TREASURY SYSTEM
Page 22
FINANCIAL MANAGEMENT AGENT
PUBLIC SERVICES

PROJECT LAUNCHED AUGUST 22, 2002


To immediately develop a centralized expenditure recording, payment
processing and reporting system for budget expenditures
A full computerized accounting system for expenditures and revenues and
financial reporting for the government
Page 23
RAPID RESULTS
PUBLIC SERVICES

Reviewed processes

Developed chart of accounts

Redesigned forms

Determined reporting requirements


Computerized the current manual system tracking using the facilities of
FreeBalance accounting package
Commenced live operations October 23, 2002
Page 24
FUNCTIONS OF THE SYSTEM
PUBLIC SERVICES

Check expenditure data for payment

Print checks

Update treasury ledger

Maintain banking information

Maintain complete expenditure data of central agencies

Maintain payroll expenditure data of provinces
Page 25
STANDARD CHART OF ACCOUNTS
PUBLIC SERVICES

Source of funds
 General budget
 Designated grants

Organization

Location

Economic classification
Page 26
REPORTING
PUBLIC SERVICES

Expenditure reports of central agencies
 General budget
 Donor grant

Reports by source of funding

Reports by ministry/organization

Reports by location

Reports by economic classification

Reports by individual payments
Page 27
TRAINING AND LOCALIZATION EFFORTS
PUBLIC SERVICES


Basic computer skills training
FreeBalance package training
 Applications
 System administration
 Technical

On-going support from software vendor

Daily operations performed by local staff
Page 28
PLAN FISCAL YEAR 1382 (DARI CALENDAR)
PUBLIC SERVICES

Budget management

New chart of accounts for enhanced reporting – GFS compliant

Complete revenue and expenditure information

Explore possibilities for system extension to provinces

Provincial budget execution information

System interface in Dari

Reorganization of treasury bank accounts

Suitable payroll system
Page 29
HOW BARENTS GROUP OPERATES
PUBLIC SERVICES

Leading provider of financial management services in countries in transition

400 professionals based in more than 65 countries around the world

Extensive experience in systems implementation around the world

Emphasis on knowledge transfer and collaboration with government clients as
partners
Page 30