Integrated financial management information

systems

09609064  Anumeet Kaur 

09609156  Shivang Jain
06503876 Aditya Garg
09609187 Priyanka Kohli

Integrated financial management

12/07/2021 1
information systems
 What is IFMIS?
• integrated financial management information
system
• tracks financial events and summarizes financial
information
• In the government realm, IFMIS refers more
specifically to the computerization of public
financial management (PFM) processes, from
budget preparation and execution to accounting
and reporting, with the help of an integrated
system for financial management of line
ministries, spending agencies and other public
sector operations
12/07/2021 Integrated financial management 2
information systems
 Basic Features

• Standard data classification for recording

financial events;

• Internal controls over data entry, transaction

processing, and reporting; and

• Common processes for similar transactions and

a system design that eliminates unnecessary
duplication of data entry.
12/07/2021 Integrated financial management 3
information systems
 What is Does?
• Organizes and makes access to financial
information easy.
• Stores the approved budgets
• Details on inflows and outflows of funds
• Complete inventories of financial assets &
liabilities

12/07/2021 Integrated financial management 4

information systems
 Government IFMIS
• The General Ledger
• Cash Management
• Commitment control
• Accounts payable
• Accounts receivable

• Budget preparation/planning, Procurement and contracts

management, Payroll and human resources, Revenue
administration (tax and customs), Debt management,
Assets management, Project ledger, Grants
management

12/07/2021 Integrated financial management 5

information systems
 Issues

• Legal framework
• Business/functional processes
• Organizational arrangements
• Budget classification structures
• Change management

12/07/2021 Integrated financial management 6

information systems
 OTS/Build
• OTS software packages are generally
more practical than are custom-developed.
When to Build
• Effective interim solution.
• Functionality of the system and the
number of users is limited.
• Cost of custom development will be
significantly lower than purchasing and
implementing COTS software.
12/07/2021 Integrated financial management 7
information systems
 OTS/Build
When not to build
• Often go over budget and seldom get
delivered on time.
• Require established skill sets in custom
software development
• Limited understanding of government
functions

12/07/2021 Integrated financial management 8

information systems
 OTS/Build
Why OTS
• Expertise
• Detailed checks & balances
• Publicly audited
• Modular

12/07/2021 Integrated financial management 9

information systems
 OTS/Build
Why not OTS
• Impose a standard structure on business
processes.
• Cost, initial & recurring.

12/07/2021 Integrated financial management 10

information systems
 Implementation
• Tender?
• Different government structures to start to
work with common tools.
• All administrative units have to adopt a
common “language”.
• Different countries…

12/07/2021 Integrated financial management 11

information systems
 SLOVAK REPUBLIC
REASON:
political will, be part of EU

NEEDS:
new MoF( IFMS), serve Government clients
function as a bank to all users
manage budgets
centralize control of cash

SOFTWARE:
SAP, QBSW, TREMA

SUCCESS

Integrated financial management 12

12/07/2021
information systems
 KOSOVO
SCENARIO:
small scale
poor infrastructure
no institution at Government level
transition required (UN initiative)
NEEDS:
keep a track of accounts
track of treasury spending and revenue earned
integrate 30 municipalities and future ministries under one system

SOFTWARE:
Free Balance

CHALLENGES:
poor communication network,
political hazards( language barrier)

12/07/2021 Integrated financial management

13
information systems
 KAZAKISTAN

CHALLENGES:

software selection
lack of financial resources
no sustained Government support after initial installation

Integrated financial management

12/07/2021 14
information systems
 IRAQ

SCENARIO:

new Iraqi transitional Government

CHALLENGES:

lack of understanding of existing financial system

poor planning
weak communication
old system still exists

Integrated financial management

12/07/2021 15
information systems
 VIETNAM

NEED:

reform measures

CHALLENGES:

leadership racing forward, public not accepting change

complex administrative structure
signed on papers but opposition still not ready

Integrated financial management

12/07/2021 16
information systems
Steps to successful IFMIS implementation

• STEP 1 – THE NEEDS ASSESSMENT

A number of questions should be addressed:
• What are the political priorities of stakeholders?
• How does the current governance system function (the nature of the
political system, the bureaucracy, the budget process, etc.)?
• What is the existing legal framework, and how does it function?
• Can the legal framework be used to support the public financial reform
process?
• How does the current fiscal system work?

Integrated financial management

12/07/2021 17
information systems
• Historical analysis is of great importance to the assessment process .

CHANGE MANAGEMENT
• Must be addressed early in the needs assessment .

CAPACITY BUILDING AND TRAINING

• Different user groups have to be identified; their levels of knowledge
determined; recruiting needs established; and training curricula explored.

Integrated financial management

12/07/2021 18
information systems
• STEP 2 – CREATE A ROADMAP
• Essentially a strategic plan mapping out how to transform the
needs into a coherent solution,
• The steps involved,
• How to address each step,
• Setting out clear objectives and milestones for each step of the
way.

Integrated financial management

12/07/2021 19
information systems
• STEP 3 – THE MODIFIED TENDER
APPROACH
• A modified tender approach, would provide the donor with an
interactive role with the beneficiaries,
• establish clearly what needs to be done to put into place an
IFMIS,
• setting local standards to meet the multiplicity of the
objectives.
Integrated financial management
12/07/2021 20
information systems
 • STEP 4 – IMPLEMENTATION
The final and most critical step of any IFMIS project is Implementation.

IMPLEMENTATION TEAM
• Project Manager (PM)
• Public Finance Economist
• Qualified Accountant
• Change Management/Training Expert
• IT Systems Expert
• Logistics expert

Integrated financial management

12/07/2021 21
information systems
• STEERING COMMITTEE
• Role is to ensure that obstacles and hurdles are tackled
smoothly and in a timely fashion.
• Should meet regularly, e.g., monthly, produce minutes and
follow up on issues and milestones

Integrated financial management

12/07/2021 22
information systems
• TESTING THE SYSTEM
• The effectiveness of IFMIS as a financial management tool is
dependent on the technology—the software and hardware—on
which it operates.
• Pre-testing the working model with real can mitigate future
problems and speed up final installation.

Integrated financial management

12/07/2021 23
information systems
 CONCLUDING REMARKS
Introducing modern financial management systems demands a
commitment to change:
• Change in technology,
• In processes and procedures
• Changes in skills, responsibilities and behaviours.

• IFMIS success also requires donors to provide firmer

monitoring, and firmer support to ensure sustainability.

Integrated financial management

12/07/2021 24
information systems
 THANK YOU

Integrated financial management

12/07/2021 25
information systems