Transcript IFMIS Systems - International Experience in Africa & Asia Peter Murphy,

IFMIS Systems International Experience in Africa
& Asia
Peter Murphy, M.Sc, CPFA
World Bank Sr PSM/PFM Specialist, Cambodia Country Office
P Murphy, Washington, FM Conference, March 2008
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IFMIS Systems – Key Dimensions
Budget Formulation
Budget Execution
Resource Management
Accounting & Financial
Reporting
Auditing and Oversight
• Institutional
Development
• Green Field Sites Easier
• High, Mid and Low Range
Systems
• Long Term
• Capacity Development
• Commitment
• Management Culture
• Leadership
Public
Financial
Management
• PFM Drivers-Recognition of
Need for Change;
• Willingness to ChangeOwnership & Commitment;
• Capacity- PFM/ICT/CM
• Transition Management
• Project Management
• Change Management
Strategy
• Quality Assurance
Preconditions
Lessons
IFMIS
• Management, Application
and ICT and Contractor
Capacity Building
• Policy/Design Consultancy
• Business Process ReEngineering
• Software/Licensing
• ICT /WAN Infrastructure
• Organizational Reform
• Capacity Building
• Recurrent
Capital &
Recurrent
Costs
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PFM
Structures
Implementa
-tion
•
•
•
•
•
Conceptual FrameworkStandards& Principles
Capacity
Roles & Responsibilities
Budget
Classification/CoA
• Business Processes
• Bank Accounts
• Legal Framework
• Preconditions
• Conceptual Design &
Specification (Detailed or
Summary)
• Centralized/Core Periphery
• Procurement (Evolutionary)
• Gap Analysis/Design/Testing
• Sequencing – Pilots , Budget
Cycle, Matching to Capacity
• Rollout/ Acceptance
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Fiscal Management System
Real
Sector
Medium
Term
Fiscal
Framework
Macro
Economic
Model
BoP
Sector
Monetary
Sector
Periodic
Fiscal
Table
Data
IFMS
General
Ledger
IFMIS
Budget
Module
MTEF
& Budget
Data
Data
Warehouse/
Toolset
Fiscal
Policy
Analysis
Revenue, Expenditure
& Financing Transactions
Accounts
Receivable
Accounts
Payable
Tax
Interface
Payroll
Interface
Debt
Interface
Bank Reconciliation
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GFS Economic Classification
3
3
IFMIS - ICT Technology
Single User
PC or Portable
Server less LAN
One PC acts as
server
Server based LAN
DB and Apps on
One server
Server based LAN
DB and Apps on
Separate servers
WAN
Server based LAN + WAN
DB and Apps on
Separate servers
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Why Transition to an IFMIS
 Project Systems (Lower
Fiduciary Risk)
PIUs/Project
Management
Consultants
Salary Supps.
Dependency
 Government Systems (Higher
Fiduciary Risk)
Off Budget
Non Integration
Unique
Classification
Ownership/
SWAP
Government
Structures
Civil Servants
Cap Building
Sustainability
Project
Specific FM
Systems
Procurement
Rules, IPA,
Banking,
Reporting,
Audit
Complex
Programme
Financing and
Fund Flow
Arrangements
 Lower Order PFM
Developmental Outcomes
P Murphy, Washington, FM Conference, March 2008
Government
Systems
including
IFMIS, GFS,
IPSAS, TSA ,
Audit etc
On Budget
Unitary
Integrated
Budget
Government
Classification
Pooled
Funding
Government
Execution
 Higher Order PFM
Developmental Outcomes
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Issues
Fragmented
Recurrent &
Capital
Budget
Parallel
Systems/Rul
es
Multiple
Project
Implementat
ion Units
(100’s)
1500+ Bank
Accounts
Significant
DP
Financing
Parallel Man
Extensive
TA
- Budget,
NT, etc
Fragmented
Multiple
DP
Fid/Project
Units
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- Dept Inv
Cop
• Post Conflict
• Relatively Weak Capacity
• Perceived High Fiduciary
Risk
• Pressure for Coordinated DP
Support and Swaps
• High Anti Corruption Profile
• Good Governance
Frameworks
• IPA
• Evolving PFM Reform
Program
• IFMIS
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SWAP/
Project
(TTL)
PFM
Reform
(TTL)
Fiduciary Risk
(Legal, FM &
Procurement
Specialists)
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• Ensure understand PFM /IFMIS Objectives and relevance to Project
Fiduciary/Procurement Risk Analysis
• Connect/Integrate Project Fiduciary Risk Analysis with IFMIS
Implementation Objectives
• Capacity – Eliminate PIUs build MoF/Sector/LM/Sub National PFM Units
• Integrate Project Budget with MTEF/Annual Budget.
• Adopt IFMIS standards – IPSAS, Budget Classification, CoA
• Adopt IFMIS PFM Processes, ICT & Communication
Architecture
• If possible adopt IFMIS Package and support development of
procurement, internal control, accounting, reporting and banking
arrangements.
• Develop Transition Approach /Path Project Activities
• Phase implementation as per project requirements
Get involved with IFMIS implementation.
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MTEF/Budget Modules
Macro Model
Ministry
Management
Information
System
Objectives
Activities
GoL IFMIS
General
Ledger
MTFF
MDALG
Activity Plans
&
Costing
Sector
& Ministry
Objectives
Outputs
Targets
& Progress
Resources
CoA
Financial
- Actual
-Commitments
Budget
Framework Papers
Budget Policy
Analysis
MTEF
Ceilings
Budget
Module
Tax Revenue,
Debt Budgets
Detailed
MDALG
Estimates
Consolidated
Budget
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MoFDP
Challenge &
Policy Discussions
MDALG
Revision
Budget
Presentations
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GL, Budget Execution and
Financial Reporting
Requisition
Purchase Order
Module
Commitment/
Cash
Management
Module
CoA
FM
Budget
Module
Bank
Accounts
Payable
Module
Accounts
Receivable
Module
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Interfaces
HR/Payroll
Cash
Book/TSA /EFT
Module
General Ledger
Module
General
Journals
Interfaces
Public Debt
Tax etc
MTFF
Data
Summary
Budget
Reports
Detailed
Budget
Reports
Statutory
Financial
Reports
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– Creating a Learning Organization
Rollout
Implementation
Pilot
Implementation
Design, Testing
& Setup
Preparation &
Acquisition
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1. Create a Learning
Organization (MoF, Sector, LM,
Agency, LG, Project.
2. View whole process as a
Learning opportunity.
3. Require Client, Consultants,
Contractors to Engage at each
stage of the process.
4. Build trust not Confrontation
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-Required Roles & Responsibilities
End Users
Primary
• Manage & Operate
Business Processes
• Data entry
• Validation
• Authorization
• Analysis
• Reporting
• Use System Outputs
• Planning
• Analysis
• Decision Making
• Reporting
Secondary
• Internal/External Audit
External
• Public , DPs PAC, EFC
etc
Defined Users
Application Managers
Process Owners
• Manage users &
permissions
• Ensure availability for
appropriate use
• Manage central functions –
setup, chart of accounts,
report customization
• Ensure reliability
• Problem resolution
• Routine Maintenance
• Upgrades / updates
• Security
• Ensure systematic
expansion
• Ensure functionality of
interfaces to external
systems
Financial Systems
Unit(s)
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ICT Facilities
Management
• Mange Architecture
• Ensure availability for
appropriate use
• Ensure reliability
• Technical Problem
resolution
• Routine
Maintenance
• Upgrades /
updates
• Security
• Data backups
• Ensure systematic
expansion
• Ensure functionality of
interfaces to external
systems
Data Centre/ICT
Personnel/Contractors
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Sustainability - Transition Management (Illustration)
Project In-house Organisation
Steering
Group (Stakeholders)
AccGen/Budget
Project/Contract
Management Group
Training
Group
AccGen Dept
Application
Group
Post Project In-house Organisation
(AccGen/ICT)
AccGen/Budget
Dept
Sections
Application
Support
Unit
ICT
Group
LM/Agency/LG
Units
MDA
Units
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ICT
ICT
Support
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IFMIS Classification & Analysis Model
Dimension
Descriptions
IFMIS
Digits
MMIS
Sector
GoL Adjusted COFOG
CoA
xx
xx
Sector
Objective
Ministry
Strategic Sector Objectives
Map
GoL Institutional Units
CoA
Objectives
Map
Programmes,
Medium Term Ministry
Objectives
Groups of Activities/Projects
Outputs
Goods and Services
Map
Administrative
Divisions, Cost Centres
CoA
xx xx
Activities
Cost Centre Activities
contributing to Outputs
CoA
xxx
Economic/
Account
Financing
Chapter, Sub Chapter,
Item Sub Item
CoA
x x xx xx
Donor, Fin Agreement
CoA
xx xxx
Regions
Region, District
CoA
xx x
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CoA
yy
x xx
x xx
yy
xxx
xxx
yy
xx xx
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IFMIS – WAN Architecture
MoF/ Treasury
Min of Finance
Public Debt
Treasury
Auditor General
Tax
Civil Service
Central Bank
Ministries Depts.
Projects/
Agencies.
Sub National
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Servers
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IFMIS – Implementing a Project/Programme
•
•
•
Use
•
Independen
•
t Instance
•
DP Project Funds Flow
IFMIS FM/Procurement Processes
Project ICT
Project Bank Accounts
Project Execution
Journal Reporting Interface
•
•
Connect to •
Central
•
IFMIS
•
System
DP Project Funds Flow
IFMIS Processes & ICT
Separate Project Bank Account
Project /Govt Execution
Journal /Reporting Interface
Full use of
Central
IFMS
System
•
•
•
•
•
•
Integrated MTEF/Budget
Funds Flow/CM through Treasury
IFMIS Processes & ICT
Banking/TSA
Govt Execution
Govt Consolidated Reporting
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1.
Project Man
Functionality
2. Software Licenses
3. Design/Setup
4. ICT Architecture
5. Controls
6. Manuals
7. Reporting
8. Training
9. Auditing
10. Support
11. Costs
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Consolidated Fund & Fund Allocation
Short Term
Financing
Tax/Domestic
Recurrent
Revenue
Grants
Develop
Grants
Recurrent
Account
Recurrent Funds
Line Ministries/
Sub National
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Develop
Loans
Development
Account
Recurrent & Capital Funds
Projects
Agency
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Institutions on IFMS
Central Bank
Agencies
Local
Authorities
Treasury
Tax Agency
Ministries
Projects
Regional SubTreasuries
Central Bank or
Commercial Banks
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Cash Accounts - Expenditure
Actual bank accounts at Central Bank
Consolidated
Fund A/C
Consolidated Fund
A/C
Recurrent Fund
A/C
Treasury Cash
A/C
MOE Cash A/C
PIU Cash A/C
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Development Fund
A/C
Treasury DF A/C
MOE DF A/C
Treasury
Ministry
of Education
PIU
PIU DF A/C
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Audit
Auditor
- In and Out Document Review
- Workflow Review
- User Activity Review
- Analysis of on-line Data
- Procedures / Legal
- Security Review
- Access Control
- Workflow Control
- Security Administration
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The eIntelligence data flow
•
•
•
•
e
transactional
database
Extract
Scrub
Transform
Aggregate
• Load subset
• Aggregate
• Reporting
Data
Warehouse
• Ad-hoc analysis
• OLAP
Reporting
OLAP
Cubes
Business
Explorer &
other OLAP
Clients
Financials
Distribution
Projects
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Key Benefits
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Functionality
 PFM
 All aspects of FM
 Efficiency & Improved





Internal Control
Supports pooled funding by
enabling improved
accounting & accountability
Facilitates Standardization of
procedures / services where
appropriate
Permits diversity of approach
where necessary
Supports authorized external
agency access
Improved audit ability
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 Organizational
 Improved communication
 Improved coordination





between Ministries, Donors,
Councils, Agencies. Projects
On-line Learning Possibilities
High availability
Rapid dissemination of systems
/ information
Consistency
Data Warehousing & mining
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Decentralized Management
 Supports decentralized
management and
accountability
 Project budget formulation
 Project procurement,
disbursements, revenue
collection, accounting etc.
 Project reporting and
accountability
 Supports improved project
transparency
 Can support project security /
management of own data
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 Contd…
 Supports local, regional and
project central support
mechanisms
 Enables downloading of
data for lproject processing
 Constraints overcome
 Need for high level of non
core local support
 Potential problems of
infrastructure upgrade
 Data corruption and
storage problems
 Disaster Recovery problems
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Sustainability
 Technical
 Small core technical
support team
 Standardized
infrastructure
 Easy upgrade / growth of
core system (space,
processing ability,
technology changes)
 Uninterrupted upgrades
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 Financial
 Reduced capital
investment


Terminals & printers
only at sites
Low license costs
 Lower Running Costs
 Economies of scale
 Low maintenance costs
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Tanzania - Post IFMIS - Experience
 Stated in 1995 by July 1998- all MDAs (50+)in DAR were on the IFMS base package
(in less than 3 years) using GOT wireless based networks, citrix server, thin clients ,
SQL Database and a Mid Range IFMIS Package.
 Gov’t chart of accounts on GFS compliant basis, mapping can further enhance
 Real-time time budget allocation, disbursement, commitment control, budget &
financial reporting. TSA implemented. Dramatic improvement in PEFA scores.
 2001/2002 all Regional Sub treasuries on stand alone IFMS
 Extensive Agencies and Projects implemented. (Accrual and Cash) Multiple DPs.
 Budget module/Active planner rolled out to MDAs
 2002/2003 all regional MDAs on IFMS duly networked to the Sub treasury D-Base
 50+ Local Authorities implemented and many more under implementation.
 TRA implemented in 60+ sites with full accrual.
 2000 + trained since inception
 Fully sustained locally since 2000.
 Introduction of data warehouse for Budget/Macro Analysis
 Now migrating to other countries Gambia, Malawi, Lesotho.
 In Malawi – Tanzania Accountant General Dept is acting as Consultant and is
providing capacity building opportunities.
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Questions?
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