Project submitted byname: Debasish guha roy, roll- 31, sec- H3 sub: mis

Financial Management Information System (MIS)

Financial MIS Provides financial information to all financial managers within an organization. It integrates financial & operational information from multiple sources. Financial MIS eases analysis by providing fast financial data. It enables financial analysis from different aspects; time, product, customer. With Financial MIS, one can analyze historical and current data. Also one can monitor use of funds. Few examples or functions of Financial MIS are Costing, P&L reporting, Auditing, Funds management, etc.

Overview of a Financial MIS

Inputs to the Financial Information System

Strategic plan or corporate policies o Contains major financial objectives and often projects financial needs. Transaction processing system (TPS) o Important financial information collected from almost every TPS payroll, inventory control, order processing, accounts payable, accounts receivable, general ledger. o External sources o Annual reports and financial statements of competitors and general news items.

Financial MIS Subsystems and Outputs

Financial subsystems Profit/loss and cost systems Auditing Internal auditing External auditing Uses and management of funds.

Services
Personal computer and Imaging system support within the Financial Management Division System performance issues and ends user security access for PeopleSoft Financials Assistance with reports distributed to the Campus community. Examples of these reports are the Consolidated Detail report, Open PO report, Open Req report Technical support to end users of the Departmental Copier Program

Background:
The FMIS currently collects data via forms based PC front ends, mainframe front ends and file transfers, processes the data in a mainframe VM/CMS environment and stores data on a massively parallel processing back end

database machine (Teradata). It uses 4th generation languages and relational tables to develop applications for transaction processing and reporting, enabling rapid development to provide a flexible system responsive to changing needs and capable of describing complex interrelationships among data as useful information. The information is used for operational processing of the funds flowing to, from, and within the Department, management controls and external reporting requirements, and planning and forecasting activities. In accordance with the CFO Act of 1990, OMB Circular A-127 and other JFMIP requirements FMIS is continuing progress towards an integrated financial management system.

Objectives:
The primary objectives of FMIS are: To automate transaction processing related to the receipt or payment of funds To automate record storage and retrieval related to the process. To support management controls over the process, including internal / external report requirements. To provide reliable information for use in planning for the Department's future needs and assessing its present and past activities.

System Overview
FMIS provides the data necessary to support and prepare the revenue and refund aspect of the IRS custodial financial statement and the GAO financial audit. It takes information from IMF, BMF, and ANMF files, outputs transaction detail reports, and audit trails for all FY cash receipts. In addition, the FMIS application captures all revenue reclassification amounts from IMF, BMF, and ANMF, as well as the CADE application, including credit interest, Earned Income Tax Credits (EITC), refund reversals, all assessment and abatement adjustment transaction, and all returns. The application generates reports including the collections on FICA and Excise tax trust funds.

Purpose of the System

FMIS provides the data necessary to support and prepare the revenue and refund aspect of the IRS custodial financial statement and the GAO financial audit. This application outputs transaction detail reports and audit trails for all FY cash receipts originally from the Individual Master File (IMF), the Business Master File

(BMF) and the Automated Non Master File (ANMF) files. In addition, the FMIS application captures all revenue reclassification amounts from the master files mentioned above, as well as the Customer Account Data Engine (CADE) application, including credit interest, Earned Income Tax Credits (EITC), refund reversals, all assessment and abatement adjustment transaction, and all returns. The application generates reports including the collections on FICA and Excise tax trust funds. In January of 2008, an enhancement was added to the FMIS Custodial Detail Database (CDDB) to load Revenue Receipt and Refund transactions originally taken from the master files and from a number of other FMIS input systems: the LockBox, Integrated Submission and Remittance Processing (ISRP), Electronic Federal Tax Payment System (EFTPS), Federal Tax Deposit (FTD) and End of Day (EOD) processing (part of the Integrated Data Retrieval System (IDRS)). CDDB also receives the Deposit Tickets, Deposit Vouchers, and Refund Schedule Number Summaries from the Interim Revenue Accounting and Control System (IRACS). The current release of the CDDB added the transaction level support for payments and refunds that are summarized in the IRACS. Processing includes GAO Audit Classification, matching between master file and the input systems, summary and reconciliation processing between IRACS data and the input systems, and master file reversal audit processing.

FMIS and the public financial manage ment cycle:

System of Record Numbers

Treasury/IRS 22.054--Subsidiary Accounting Files Treasury/IRS 22.061--Individual Return Master File (IRMF) Treasury/IRS 24.030Customer Account Data Engine( CADE )Individual Master File (IMF), (Formerly: Individual Master File (IMF)) Treasury/IRS 24.046--CADE Business Master File (BMF) (Formerly: Business Master File (BMF)) Treasury/IRS 26.019--Taxpayer Delinquent Accounts (TDA) Files including subsystems: (a) Adjustments and Payment Tracers Files, (b) Collateral Files, (c) Seized Property Records, (d) Tax Small Business/Self Employed (SB/SE), Wage & Investment (W&I), Large and Mid-Size Business (LMSB) Waiver, Forms 900, Files, and (e) Accounts on Child Support Obligations Treasury .009--Treasury Financial Management Systems (formerly Treasury/DO .210--Integrated Financial Management and Revenue System) Treasury/IRS 34.037--IRS Audit Trail and Security Records System

Data In the System

Describe the information (data elements and fields) available in the system in the following categories: A. Taxpayer B. Employee C. Audit Trail Information (including employee log-in info) D. Other A. Taxpayer

Name Social Security Number (SSN) Employee Identification Number (EIN) Name Control Address Date of Birth

B. Employee FMIS does not contain any employee information C. Audit Trail Information (including employee log-in info) FMIS audit trail protection is provided by Modernization and Information Technology Services (MITS)-21 General Support Systems (GSS), System of Records Notice Number: Treasury/IRS 34.037. D. Other IRS Financial Summaries (to include accounting data, monetary payment amounts, and monetary refund amounts)

Costs:
The cost of the system clearly depends on the system eventually selected. The study by the consultants suggested that the likely final cost, including staff to run the system and back-filling for staff involved in the implementation process, will be less than 100,000. The break down or risk cost is higher.

Tools & techniques:

Financial MIS has a primary objective of meeting the financial needs of the business, from time to time, by way of providing working capital & long term capital to run the business with the goal of containing the cost of capital at the minimum. In meeting these objective FMIS uses variety of tools and techniques as under: Break even analysis Capital Budgeting & ROI analysis Cost analysis Financial modeling Cash flow analysis Ratio analysis Management accounting Expense analysis, auditing & control

Applications of FMIS
Accounting- the system accounts for all money transactions which have taken
place, directly or indirectly, and which effect the company. The financial management system accounts typically for the following- sales, purchase, salary/wages, inventory, expenses, capital purchase, fixed deposits shareholders fund, income tax, budgets. FMIS provides facility to perform multidimensional accounting of financial transactions.

Query- the query system throws light on the debit or credit balance of an account.
It shows the details or transactions which have resulted into that balance. The query is processed for the following with the respective codes as keys: 1. Main account 2. Subsidiary account 3. Location (factory, branch) 4. Document (bills, credit note, debit note)

Decision analysis- financial management system calls for numbers of decision,

based on the analysis of the financial status of the company. The decision falls in all areas of financial management. The application which supports the above decisions are: a) Cash flow analysis b) Source and uses of funds c) Debtors analysis & aging d) Creditors analysis e) Budget analysis

Controls of information security challenges:

Use of antivirus software Restart and recovery procedure Backup copies Concurrency protection Restricted authority to update, delete information. Limited, authorized access to database Dedicated DB administrator

Conclusion:
The FMIS is the primary automated financial system for the Offices, Boards and Divisions, the U.S. Attorneys, and the Bureau of Prisons. The FMIS supports the full range of financial management requirements, including the general ledger function, budget execution, travel, third party and Treasury payment, credit card purchases, etc. FMIS is continually evolving to make use of new techniques and technologies to respond to new requirements and provide easily obtainable and understandable information to all levels of staff involved in financial operations or management as well as budget formulation and execution.

********************