IFMIS Systems - Capacity Development

Transcription

1 IFMIS Systems - Capacity Development Peter Murphy, B.Sc (Hons), M.Sc, CPFA P Murphy, Washington, IFMIS Conference, Nov

2 What are the key challenges in development of Public Financial Management? Challenges Performance Review External Auditing Final Accounts & Public Sector Accounts Evaluation & Results Analysis Budget Review & Revision Macro Economic Planning & Policy Analysis PFM Cycle Budget Monitoring/ Management Accounting Sectoral Planning & Policy Analysis Receipts Payments, Payroll & Accounting ICT Based Systems Budget Formulation & Cash Flow Forecasting Revenue Policy, Mobilisation, Collection & Financing Funds Release, Procurement Authorisation, Control, Disbursementt Limited Macro Modelling. Limited Revenue Forecasting and Management Unrealistic,inadequately Poverty/ Policy/Performance MTEF & Budgets Weak Stakeholder Participation Inadequate Analytical Frameworks for Resource Allocation/Control/Management High Levels of Centralised Control Inadequate Commitment and Cash Control/TSA/Reconciliation Corruption & Fraud. Limited Transparency - Monthly and annual Public Accounts Weak Internal & External Audit P Murphy, IFMS Conference, Nov

3 Typical Ongoing PFM Reforms Improved Oversight Systems -Parliament, PAC, External Audit Macro Policy Analysis & Advice, Capacity Building, Interfaces -Macro Units Rev Policy Analysis & Advice, Capacity Building, Systems, Structures -Rev Agencies, -AidMU, Debt Man MTEF, Sector Strategies, Bud Policy Analysis & Advice Budgeting Systems -Bud Div, LM, LGs Procurement Reform, Payroll/ Personnel Reform, Asset/Liability Management, Internal Audit Systems etc -MOF, LM., LGs, PS/HR Approval, Oversight & Accountability Aggregate Control Resource Mobilisation Resource Allocation Resource Management Financial Control, Management & Reporting Capacity/Systems/Skills Cash & Bank Management Commitment Control Management Reporting Poverty Tracking Accounting Standards Accounting Systems Financial Reporting -AGD, MDA s, LGs PFM Informal - Culture -Politics/Power -Leadership Formal -Strategy/Policy -Skills Transfer -Systems/Technology -Structural Change -Management Development -Limited HRM Need for alignment with Environmental (PETS) Forces e.g. : - -Political: Democratic Transition Process & Policy Debate -Social: Civil Society Pressure Groups, Participation. -Economic: Poverty Reduction, Efficiency, Effectiveness -Rapid Technical Change -International Standards etc 3

4 Typical IFMIS System Components Inventory Asset Manger Equipment Manager Budget/Planning Tools Macro/REFF Systems Requisition Manager Expense Order Tender Management Purchase Order Accounts Payable Cash Management Commitment Control CoA Revenues Imprests/ Loans Accounts Receivable CS DRMS Claims on Donors HRM/Salaries System Cash Control General Ledger GL Journals Bank Reconciliation Cash Manager Reporting P Murphy, Washington, IFMS Conference, November

5 Inputs Software ICT (IT/WAN) Training/Wor kshops Legislation Consultancy -Change Man -Budget/ Financial Man -Training Political (Turbulent some Increased demand for Accountability) Economic (Demand for Improved PEM & Financial Management) Conceptual Framework Implementation Strategies New ICT(IFMIS) Change Dimensions New Legislation & Improved PFM Transition Management New Structures, Skills & Attitudes IFMIS Software Implementation New Processes & Procedures Public Financial Management Task Environment Social (Participation/tran sparency/service Delivery) Outputs Accountability Transparency Economy Efficiency Effectiveness Service Delivery Technical (New ICT technology, deregulation) P Murphy, Washington, IFMS Conference, November

6 Capacity Development Context P Murphy, Washington, IFMS Conference, November

7 Recognition & Willingness Task Environment Demands P Murphy, Washington, IFMS Conference, November

8 Recognition & Willingness - Forces for Change Strengthen Weaken P Murphy, Washington, IFMS Conference, November

9 Recognition/Willingness -Vision, Gap Analysis & Design Feasibilityy Study Fiscal Management Processes, Organisational Issues, ICT Architecture, & Financial Implications P Murphy, Washington, IFMS Conference, November

10 Ministry of Finance (Policy) Line Ministry Accounting Officers (Execution) Treasury/ Acc Gen (Regulation) Budget Other Ex Audit Other External Budget Managers. Plan/ Budget Procurement Chief Acc Int Aud Fin Man Fin Rep Liabilities/ Assets Cash Man Payroll Consensus Desirable Possible A few willing to go where no man has been before? -Evolution versus revolution! P Murphy, Washington, IFMS Conference, November

11 Capacity Development Dimensions Client/Consultant/Contractor Mix P Murphy, Washington, IFMS Conference, November

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14 Requisitions Procurement Payments Public Debt & Tax HR/Payroll General Journals Budgeting & Releases Accounts Ledgers Cash Book Often Centralized. Lack of Integration. Inefficient (Duplicate Data Entry & Functionality) Managed Independently Different Analytical Basis (Classification/ Valuation) Inconsistent & Incomplete Reporting Lack of Integrity, Timeliness, Comprehensiveness P Murphy, Washington, IFMS Conference, November 2007 Summary Budget Reports Detailed Budget Reports Statutory Financial Reports Mechanize the Horse and Cart? 14

15 MoFDP Macro Model Ministry Management Information System MTFF Sector & Ministry Objectives Outputs Targets & Progress Budget Module Activity Plans & Costing Budget Policy Analysis MDALG Budget Framework Papers MoFDP Challenge & Policy Discussions MTEF Ceilings GoL IFMIS General Ledger CoA Financial -Actual -Commitments Tax Revenue, Debt Budgets Consolidated Budget Detailed MDALG Estimates MDALG Revision Budget Presentations P Murphy, Washington, IFMS Conference, November

16 Requisition Purchase Order Module Accounts Payable Module Accounts Receivable Module Interfaces Public Debt Tax etc Interfaces HR/Payroll Commitment/ Cash Management Module Budget Module General Ledger Module Cash Book/TSA Module General Journals MTFF Data Summary Budget Reports Detailed Budget Reports Statutory Financial Reports P Murphy, Washington, IFMS Conference, November

17 Budget Module Supports MTEF Dialogue including MDA Strategic Budgeting Dialogue & Scenario. Analysis, Enable multi-year budget preparation, at MOF & MDA level. Make available in-year Budget Execution information. Stores values for estimate calculation etc Facilities forecasting of baseline Cash Flow. Budget Analysis, Consolidation, Presentation and Authorisation. Budget Release & Variation. Supplementary Budgets Users (Transactional Users/Analysts//Information Users) MoF Macro Unit Users -MTFF/MTEF MoF Budget Officers (Sector/Frame) MoF Finance Officers (Debt/Investment) MoF (Revenue Policy Unit) MoF External Finance LM Budget/Planning Officers LM PS/Accounting Officer/Dept Heads Public/DPs/Investors/Creditors etc Managers (Decision Making) Macro/MTEF Managers Budget Director Senior Budget/Macro Analysts Support (In-house) Budget Application Support Group -Classification -Access/Training -Budget Constraints -Principles/Standards Director Budget Techniques (ICT Support Group) P Murphy, Washington, IFMS Conference, November

18 General Ledger Facilitates Framework for System: Organisation parameters, Accounting Concepts Chart of Accounts/Classification Capture Budgets and non-financial data, Bank account details, Fiscal years Journals and postings (from source systems) Database for all transactions, Financial Reporting, Audit Trail Users (Transactional Users/Analysts/Authorisation/Reports) Managers (Decision Making/ Information Users) Support (In-house) MDALG PS/Accounting Officers/Dept Heads. MDALG Accountants/Internal Auditors. AccGen FR Users Consolidation & Financial Reporting AccGen Users -(Aid Accounting, Payroll, CF Revenue, Financing etc) MoF users Chief Accountants Chief Internal Auditors Director (FR Unit) AAG (FR) AccGen Application Support Group -CoA/Data Integrity -Concepts/Training -Controls/Reporting -Principles/Standards Director FSU (ICT Support Group) P Murphy, Washington, IFMS Conference, November

19 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 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 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 Defined Users Financial Systems Unit(s) Data Centre/ICT Personnel/Contractors P Murphy, Washington, IFMS Conference, November

20 In-house Configuration (Application Support, ICT Unit, Training Unit) Partially Outsource ( Consultants/Advisors, Contract ICT Maintenance, Training Aspects) Substantially Outsource ( Management, Communications, ICT Provider, Enterprise Application Provider) P Murphy, Washington, IFMS Conference, November

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22 Pilot Implementation Rollout Implementation Design, Testing & Setup Preparation & Acquisition 1. Create a Learning Organization 2. View whole process as a Learning opportunity. 3. Require Client, Consultants, Contractors to Engage at each stage of the process. P Murphy, Washington, IFMS Conference, November

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24 Application ( s) Mangers/Champions/Local Consultants Concepts In depth Module Operation 1 st Line ICT Support Training Skills Consultant Skills Key Users ( s) PFM Concepts Module Concepts Module Operation Ist Line ICT Users (1000 s) Need to know Local Consultants/Trainers (20-50) Concepts In depth Module Operation Training Skills Training Material Development Specialists (100 s) Audit Central Function ICT ( s) Data/DR Centre WAN LAN Communications Database P Murphy, Washington, IFMS Conference, November

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27 Tanzania Experience Stated in 1995 in an atmosphere of systemic collapse 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. 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 trained since inception Fully sustained locally since 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 isproviding capacity building opportunities. P Murphy, Washington, IFMS Conference, November

28 PFM Steering Committee IFMS Management Team Contract Management Audit/Controls Application Capacity Development ICT Architecture Dept Heads, Project Component Managers, Consultants & Contractors, Other LMs/Departments P Murphy, Washington, IFMS Conference, November

29 Project Management Mechanism Expectation Steering Group Strategic Direction, Co-ordination Approval & Problem Resolution. Quarterly Internal Stakeholders Reporting, Planning & Coordination. Weekly Project Management Meetings Follow-up & Problem Solving. Project Manager /FMIS Consultant. Day to day management Support Groups Application, ICT, Training Reality Meets only infrequently, ineffective, appears to make little impact. Poorly attended, lack of engagement by some Dept Heads. Weak stakeholder involvement outside AccGen/IT & Contractors Weak Follow-up. Located under AccGen responsibility not matched by authority Inadequate Participation, Inadequately Resourced Result Lack of strategic direction undermines commitment, coordination and project management authority. Lack of detailed integrated planning, follow-up and accountability. No awareness/commitment from some stakeholders. Low levels of accountability. Limited problem solving authority. Difficulty in securing engagement and resolving problems. Limited Capacity Developed, Solution Inadequate, Capacity Development Weak. P Murphy, Washington, IFMS Conference, November

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31 4. Transition Management (Illustration) Project In-house Organisation Post Project In-house Organisation (AccGen/ICT) Steering Group (Stakeholders) AccGen/Budget Project/Contract Management Group AccGen/Budget Dept Sections Application Support Unit Training Group AccGen Dept Application Group MDA Units ICT Group ICT LM/Agency/LG Units ICT Support P Murphy, Washington, IFMS Conference, November

32 Effective Management/Leadership/Team Building/Engagement Appropriate market related pay (Application Support, ICT Support, Key Users) and Career Opportunities Create Structures (Agency for ICT Staff), adopt more flexible forms of Employment (Contracts), Contract out Functions (Non Core). Provide extensive Education and Training Opportunities. Expect losses, keep training. (Labor Market saturation will occur) Enhanced Salary Schemes (Performance, Market, Reform Based) P Murphy, Washington, IFMS Conference, November

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34 Activity Investment Recurrent Feasibility Study Consultants, Client Participation Workshops, Study Tours & Conferences Support Capcity Procurement Design, Configuration, Testing, Setup, Training Pilot Implementation ( Problem Resolution, Acceptance) Core Functions Rollout Medium Term Advisors Local Contract Staff Consultants Client Participation Contractor -Application/ICT Infrastructure/Training /Site Works; DP Specialists, Quality Control, Client Participation Contractor, Client Participation QA, Other consultant/specialists Training, Infrastructure Expansion, Functionality Expansion, Upgrades Client Groups Support Groups, Capacity Development Workshops, Training, Specialists (Legal) Training of Trainers, Workshops, Training, Data Collection and Verification, Motivational Elements Licensing Running Costs WAN Costs Training, Licensing Running Costs, WAN Costs Maintenance & Renewal P Murphy, Washington, IFMS Conference, November