Transcript IFMS Scope & Implementation Strategy Ethiopia By Tedla Mulugeta IFMS Project

IFMS Scope &
Implementation Strategy
Ethiopia
By Tedla Mulugeta IFMS Project
Manager
Nov. 11,2004
Historical Perspective
 Legacy Systems 1960-1996
– Budget, Disbursement & Accounts System
– Payroll System
– Debt Management System
– Budget Authorization
– Budget Appropriation
– Trade Statistics etc.
Problems Faced
•
•
•
•
•
•
•
•
Lacks Accuracy & Not Timely :- Historical Data
Delay in closing the yearly Books of Account
Not Integrated
No Standardization :- Different programming
languages
Requires highly Qualified Staff
Huge Maintenance Cost
Limited Users
Highly Centralized
A Need For Integrated System
 Highly Improved technology (1990s)
– Affordability of PC technology
– The Power and Ease of use
– User friendly systems
– Internet, LAN & WAN expansion
Government Initiatives (1996)
 The Government Embarked on Civil Service
Reform Program (5 programs)
– MoFED is given responsibility to undertake The Public
Expenditure Management & Control Sub Program
• 8 Projects were designed under the subprogram
–
–
–
–
–
–
–
–
Legal Frame Work
Budget Reform
Accounts Reform
Cash Management
IFMS
Internal Audit
External Audit
Accounting Profession
Project Proposal for IFMS
 IFMS was delayed until The Budget & Accounts
Reforms are well underway.
 EU agreed to fund the Design study and Pilot
Implementation of IFMS.
 PWC was awarded to undertake the Design study.
– Main Recommendations of the Consultant
•
•
•
•
•
•
A Need for Single treasury Accounts (500)
A move from single Entry to double Entry Book keeping
Buy off the shelf Public Finance Package
A need for a reliable Telecommunication Infrastructure.
Revisiting the Legal frame work
Capacity building both at the Federal & Regions etc.
Acceptance of The
Recommendations
– Most of the recommendations were accepted by
the steering committee
– The Business process & Tender Dossier
prepared by the Consultant
Phase Approach for
Implementation
 1st Priority Area
– Core budget & Accounting
• General Ledger, Account Receivable
• Account Payable, Budget Execution
– Revenue for public bodies
– Cash Management
– Interface with National Bank System
 2nd Priority Area
– Procurement
– Interface with Payroll System
– Interface with Budget Preparation System
– Interface with Debt Management System
– Interface with Inland Revenue System
– Interface with Customs System
 3rd Priority Area
– Inventory System
– Asset Management System
– Budget System
Merger of Ministries (2001)
 Ministry of Finance & Ministry of Economic
Development merged (MoFED)
– Change of Management
 Devolution of Power to The Woredas (Districts)
 CFAA reports for Re-assessment of IFMS
 Fund Approved for the Pilot on Nov. 2002
 Agreement Signed With MoFED on Sept. 2003
 Supervisory Consultant Arrived on October 2004
Sense of Urgency
 Top Priority of The Government
– Expanding The Telecommunication
Infrastructure
• Broad Band Connection For Major Cities
– Currently available in 64k, 128k, 256k & 512k
• Woreda Net connection:- each Woreda (district)
administration bureau is connected with 512k Band
width ( 679 )
• School Net Every Government High School (9-10
Grades) in the Country are Connected
The Challenge A Head
 Federal :- 173 budgetary Institutions
– Over 2000 trainees on Basic Computer Skills, &
on the Financial Package
– Over 1730 Nod Connections
– Purchase of Computers, UPS,Printers, Switches etc.
– Establishing 10 training Centers
– Recruiting and Intensive training of 30 trainers
– WAN connectivity for 173 Budgetary institutions and
The National Bank
– For over 30 IT specialized training including from the
Regions
– Over 50 Existing staff Intensive training on the
package
 Regions, Zone & Woredas(districts)
 Nine Regions, Two City Administrations& 679
Zone/Woredas
– Over 4500 trainees on Basic Computer Skills &
on the use of Financial Package
– Over 4500 Nod Connections
– Purchase of Computers, UPS,Printers, Switches etc.
– Establishing 40-50 training Centers
– Recruiting and training of 120 trainers
– Connection with the Woreda Net & Broad Band
– Technical support
Plan Of Implementation
 Tender Semi- Turn Key for major Hardware,
Operating System & Public Finance Package
 Computer Basic Training & LAN installation
separate tender (involving all capable companies)
 Purchase of Computers,UPS & Printers
 Contract Agreement with the Ethiopian
Telecommunication & ICTA
 Awareness Seminars & Workshops for top
management and stakeholders.
 Attractive salary for Contract employees (2yrs)
 Top- ups for all employees involved in the
Implementation of IFMS
Thanks!