RksYgesdækic© nig hirBaØvtßúMinistry of Economy and Finance

Public Financial Management Reform Programme

A Progressive FMISA Progressive FMIS««20082008--20092009»»

IT Department

06th April 2009

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OutlineOutline

FMIS Overview

Progress

Challenges

Way forward

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FMIS Software: 9 Core Modules:General Ledger: Budget, Budget Allocations, Period structures (months, quarters and financial years), Commitments, Cash Actual, Accrual Actual based on the 7 structure of CoA (Source of Fund, Natural Account, Organization, Project, Program, Location and Activity)

Treasury or Cash Management: recording and reporting cash transactions as both a cash book and as a receipt/payment process concurrently, link bank and cash accounts to specific parts of the Organization unit, set ceiling for cash accounts, check payment,

Account Payable: Invoice management such as load invoice against initial transaction, good receipt, prepayment invoice, advance processing, credit and debit note payment, print invoice, ...

Account Receivable: manage partial payments of debts, refunds for over payment, link to fixed asset management, link to the revenue collection systems-tax and custom

Fixed Asset Management: support asset description, location, unique identification reference, cost and depreciation rate and method, asset classification, ...

FMIS OverviewFMIS Overview

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Procurement: support Requisitions, Purchase Orders, Goods Receipting, Vendor Maintenance, Commitment can recorded at each step of procurement, updating previous level of commitment where value changes and validated against funds availability, ...

Budget: development of annual and multi-year budget with ‘Top-Down’ and ‘Bottom-Up’budget development, can set caps (limit) or per agency or Spending Unit, can be uncapped, manage virement requests and approvals on line, mirror the budget by CoA

Reporting: produce financial report for both standard (GFS, IMF, TOEF, ...) and user define style by filtering the information through structure of CoA periodically, report on Screen according to the Budget classification, Functional classification, Economic classification, …, Print out or Export to Excel to product graphical information, report in cash or accrual base

Interfacing: Link to other external system like ASYCUDA, Tax Collection System, CAR Payroll System, Debt management Information System, Bank system, and other Desktop Applications (Word Processing, Spreadsheet).

Auditing: Support Audit trail, the financial transaction can be drilled up and down, recording to logged in and out of the system and did or doing what at recordable time…

FMIS OverviewFMIS Overview

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Major Functions in FMIS

CHART OF ACCOUNTS(General Ledger)

AccountsReceivable

AccountsPayable

Cash Management

Procurement Reporting

AuditFixedAssets

Interfacing

CONTROLCONTROL

CONTROLCONTROL

Transition Under FMISTransition Under FMISCURRENT TO BE

Manual Paper Requisitions Requisition Entered on Line

Manually Check FundsSeveral Times in Process

Funds Checks Automatic Throughout - Prevents Overspend

Letters & Forms Completed as Evidence of doing/checking work

User IDs against Entry & Approval of Transactions

Huge Duplication of Data EntryMany Books, Systems, Registers

Data Entered OnceAccessed by All (if permitted)

Everybody Approving & Signing Forms

Delegated (Fewer) ApprovalsApproval HierarchiesSystem enforced Segregation of ResponsibilitiesManagement by ExceptionException Reports & Alerts

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Transition Under FMISTransition Under FMISCURRENT TO BE

Manual Paper Flowing from Office to Office

Automated Workflow in FMISInformation Accessed by All

Same Information Entered ontoMany Letters & Forms

Each Stage FMIS adds to Information Already Entered

Individual Registers & FormsMaintained By Each Unit

1 Source of InformationRegisters/Forms Eliminated

Paper Documents Difficult to Locate

Full Audit Trail with ReasonsFor Purchase Scanned Documents & DocumentManagement

PPD Maintains Register of PricesFor Common Items

PPD Managing Standard Costs inFMIS

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Ministries/Depts

National Treasury

FMIS Servers

Ministries/Depts

ProvincesMinistries/Depts

Ministries/Depts Budget Dept.

ProvincesProvinces

DIC

Other MEF Dept.

General SystemGeneral System

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Implementation StagesImplementation Stages

Number of FMIS UsersPilot Phase: 500 Users – Two Years 2010 - 2012 Phase 2: 1,500 Users – Three Years 2013 – 2015Pilot Phase – Split into Smaller Stages Change Management, Communications & Quality Assurance throughout at All Stages

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Pilot A: Initial Pilot Pilot A: Initial Pilot -- 1st 6 Months 20111st 6 Months 2011

Late 2010 Preparations, including end User TrainingInitial Focus - MEF: NT; DIC; FAD; BD; PPD Initially Fewer Modules: Budget, GL, AP, Cash Management, Purchasing + Interfaces100 UsersMinistries/Provinces - Manual Submission of InformationEstablish Flows of Information for Capturing Projects and Provincial Treasury Receipts & ExpendituresComprehensive Coverage of All Government Accounts…..Initially from Manual Submissions of Data From Ministries, etc.

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Pilot B: Initial Pilot Pilot B: Initial Pilot –– 2nd Half 20112nd Half 2011

6 Month Time FrameTraining Just Prior to Implementation in New Sites2 Pilot MinistriesAdditional MEF Departments Remaining Modules ImplementedAdditional 100 Users – Now 200 Users TotalRemaining Ministries/Provinces – Still Manual Submission

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Pilot C: 1 Year in 2012Pilot C: 1 Year in 20121 Year Time FrameTraining Just Prior to Implementation in Each New SiteImplementation Phased throughout Year to 4 Pilot Ministries and 4 Pilot Provincial TreasuriesRemaining Modules, e.g. Fixed Assets & Inventory Extend Rollout to Additional Users in MEF DepartmentsAdditional 300 Users – Now 200 Users TotalOnline Transacting for Projects in Pilot MinistriesPilot Provincial Treasury Receipts & Expenditures Transacted Through FMISFull Year End Test (2011)Refine for Full Roll Out Phase 2 as Required

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RollRoll--out Stage 2013out Stage 2013--201520153 Year Time FramePhased Rollout to Remaining Ministries & Provincial Treasuries and InstitutionsFully Transition to New System in Ministries…Before Moving to Next Batch of MinistriesGain Formal Acceptance and Sign Off by LMs & PTsOn-Site Support to Assist Users to OperationaliseExtensive Training For End UsersContinued Capacity Building for the Support TeamsModality For Implementation in Smallest InstitutionsBuild for Long Term Sustainability:FMIS Help DesksRGC Managed/Operated Training Facilities

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Phase 1 Phase 1 -- ConfigurationConfigurationDetailed Planning Systems Specification/Requirements Validation Systems Design

Systems, Process and Procedures Design Documents

Setup Documentation

Hardware & Infrastructure Design Documents

Formal Sign off & Agreement

Order Hardware & SoftwareSystem Parameterisation & ConfigurationHardware & Infrastructure Installed & CommissionedDemonstrations & User Acceptance TestingExtensive Training for Core Teams (ICT & Applications)Comprehensive Training for MEF Pilot Sites – Phase 1aTimeframe: 1 year - Late 2009 to Late 2010

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Critical Factors for FMIS ImplementationCritical Factors for FMIS Implementation

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ProgressProgressCapacity building:

FMIS Sub working Group: FMIS Implementation, COA Structure, Government Accounting,

Business Process for PFMRP Framework

ICT Staffs: Fundamental Networking, 3 tier architecture, Linux, Oracle Administration, MS

SQL Server 2008 Administration

All consultants needed are in place

Conducted ICT Survey within the entire central Government

Recruiting Business Analysts

Conducted Change Management Survey within MEF and the review of the Change Management Strategy Approach

Conducting the current Business Process and to Be Process for the MEF-Line Departments and 5 Pilot Line Ministries by using the clear and standard templates

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ChallengesChallenges

ParticipationLack of InterestCapacity

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Way forwardWay forwardFMIS Project Implementation Structure (April-May 2009):

Establish the Prakash for FMIS Project Board to composed by the head or deputy head of

GDNT, BD, FAD, PPD, DIC, SPD, IAD and GID

Establish the Prakash for the FMIS Sub Working Groups for the LDs and LMs

Measures to improve participation

Establish the Prakash for FMIS 2 Stage Bid Evaluation Committee

Capacity Building (On going process):

Train the FMIS End users and FMIS Sub Working Group the basic computer applications

and Government Accounting, Budget Implementation, New CoA, Publish Finance, …

Train the ICT Staffs for the rest of the mandatory courses

ICT Strategy (April-May 2009)

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Way forwardWay forwardChange Management:

Presentation on the Change result 1. Survey approach and 2. Analysis of the response to MEF’s management in April 2009Change Management Strategy: April-May 2009Seminar to LMs and Depts in MEF on the Change Management Strategy June 2009

Business Process:Steps and recommendations to MEF’s management on Business Process in May 2009Review the New Chart of Account, Budget classification, Economic classification, Functional classification, … in between April and May 2009Training on the business side in April or May 2009

2nd Stage Bidding Process:Submitted the 2nd Stage Bid Doc to WB since November 20082nd Stage Bid has been reviewed by MEF’s depts., WB in Cambodia, WB in Bangkok and WB’s regional procurementRelease the 2nd stage bidding document to the bidders by the end of April 2009Bid submission and Evaluation process July 2009Bid evaluation report August and September 2009Contract negotiation October 2009

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Thank youThank you

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