Implementation Methodology of theIntegrated Public Financial Management
Systemsin
Europe and Central Asia
Cem Dener
İstanbul, Türkiye25-26 February 2008
Implementation Methodology of theIntegrated Public Financial Management
Systemsin
Europe and Central Asia
Cem Dener
İstanbul, Türkiye25-26 February 2008
February 2008 ECA Treasury / PFMS Projects 2
Presentation• Approach
• PFMS Implementation
Methodology
• Integrated PFMS Development
Phases
• ECA Treasury/PFMS Projects
(updated)
• Treasury/PFMS Maturity
Framework
• Challenges
PFMS Implementation Methodology
February 2008 ECA Treasury / PFMS Projects 3
PFMS Implementation Methodology
Approach
1. Identify PFM reform needs ( What? Why? )
Assess Readiness + Define Strategy Conceptual
Design
2. Develop necessary solutions ( How? Where?
When? )
Functionality + Tech Architecture + Specs System
Design
3. Project management ( Who? )
Implement + Monitor + Evaluate + Manage
Integrated PFMS
February 2008 ECA Treasury / PFMS Projects 4
PFMS Implementation Methodology1. Identify PFM reform needs ( What? Why? )
Assess existing capacity and practices (PEFA, PFM
questionnaire …)
Development of the PFM Reform Strategy (if not available)
Development of the “Conceptual Design”
• functional review of PFM organizations
• recommendations for improving the institutional
capacity
• definition of PFMS functional modules (processes + info
flows)
• necessary procedural and organizational changes
Advisory support on specific PFM issues
Coordination with donors and other sector projects
Assist in PFM capacity building (review design + share
knowledge)
February 2008 ECA Treasury / PFMS Projects 5
PFMS Implementation Methodology
2. Develop necessary solutions ( How? Where? When? )
Assessment of existing ICT capacity (skills, resources,
CobiT* …)
Development of ICT/e-Gov Strategy (if not available)
Development of “System Design”
• PFMS functional requirements (incl. records
management)
• technology architecture (web-based systems)
• implementation methodology ( hybrid**: COTS +
CDSW )
Development of “Technical Specifications” (ICB tech
requirements)
Coordination with e-Gov initiatives and other ICT projects
Assistance in technical capacity building and evaluation of
design
* CobiT … Control objectives for information and related Technology** Hybrid … COTS : customized Commercial Off-The-Shelf software) + CDSW (Custom Developed Software)
February 2008 ECA Treasury / PFMS Projects 6
PFMS Implementation Methodology3. Project Management ( Who? )
Form a Project Management Group (PMG) within client org
(MoF)
Assistance in funding preparation activities (Trust Funds …)
Promoting “Country Systems”
• administration & coordination of investment projects
• financial management [ FM ], accounting, reporting,
auditing
• procurement [ PRC ] (if country standards are
acceptable)
Assistance in capacity building for FM and PRC, and in the
preparation / review of ToRs, ICB documents, RFPs.
Monitoring and Evaluation tools (surveys, maturity
framework …)
Focus on Capacity Building and Change Management (NLP*)
* NLP : Neuro Linguistic Programming
February 2008 ECA Treasury / PFMS Projects 7
Integrated PFMS Development Phases
Integrated PFMS Development : years 0 1 2 3 4 5 6 7 8 9 10
Advisory support for PFM reforms
Assess existing ICT skills and resources
1. Identify PFM reform needs
Assess existing capacity & practices
Assist in PFM capacity building + training
Technical Specifications [ ICB docs ]
Develop ICT/e-Gov Strategy (if N/A)
System Design
2. Develop necessary solutions
Develop PFM Reform Strategy (if N/A)
Conceptual Design
3. Project management
Project Management Group (PMG)
Coordination with donors & other projects
Preparation
Assist in tech capacity building + training
Coordination with e-Gov & other ICT prj
Administration of Trust Funds (if any)Procurement of ICT solutions [ ICB ]
System implementation, test, acceptanceMonitoring & Evaluation
Capacity building & Change Management
WarrantyEstablishment of a countrywide network
Implementation
PFMS take off
Approval
FlySolo
Supportand
Maintenance
February 2008 ECA Treasury / PFMS Projects 8
ECA Treasury/PFMS Projects
ECA Treasury / PFMS Projects 1995 2000 2005 2010 2015
Albania P069939 PARP (TS)1993
Azerbaijan P066100 TIMS (TS)1998
Jan’08
Hungary P043446 PFMP (TS)1996Kazakhstan P037960 TMP (TS)1994
Slovak Rep**P069864 PFMP (TS)1992
Georgia P063081 FMIS (PFMS)1998
Kyrgyz Rep P071063 TMIS (TS)1994Moldova P082916 PFMP (PFMS)1993
Russia P064508 TDP (TS)1992
Türkiye* P035759 say2000i (TS+)1927Ukraine P049174 TSP (TS)
1996
Ukraine P090389 PFMP (PFMS)1996Tajikistan P099840 PFMP (PFMS)1997
Uzbekistan***P070084 PFMRP (TS)1999
TurkmenistanP034092 IBTA (TS)1992Croatia P050718 PFMP (TS)1992
Armenia** P081668 IDF (GFMIS)1996
Extension
Implementation
Prep.>Appr.>Effect.
Treasury established in
Preparation
Dropped
AH
AH
AH
AH
DR
DR
CD
AH, CD
CD
CDCD
CDCD
CD
DR
CD
DR
AH
DR
AH Ali HashimDR Dominique de Roquefeuil
WB Informatics Specialists involved:
AH
AH
* The Bank funded the ICT consultant/prj coord only.** The Bank funded the TA activities only.
eGov starts
eGovprojects stall
World Wide Web Browsers Java
Web TV Google
Wireless Skype
eGov recovery
eEurope
Blogs YouTube
Completed
In Progress
Avg. completion time 7.1 yrsAvg. implementation 5.7 yrs
Avg. compl. 7.2 yrsAvg. impl. 5.1 yrs
*** Project reactivated with ADB funding in 2007.
CD
CD Cem Dener
10.4 (7.3+3.1)
17.7 (15.7+2.0)
15.9 (0+15.9)
26.9 (16.5+10.4)
9.0 (8.5+0.5)
5.5 (4.9+0.6)
613 (231+382)
13.4 (9.5+3.9)
10.2 (6.7+3.5)
15.3 (8.5+6.8)
15.0 (3.0+12.0)
65.0 (50+15)
10.0 (9.95+0.05)
37.4 (20.7+16.7)
Note: Total project budget (World Bank funding + Gov contribution; in USD million) is shown on the bars
February 2008 ECA Treasury / PFMS Projects 9
Monitoring and Evaluation Tools
Monitoring and Evaluation of Treasury/PFMS Projects
Quarterly updates on key project data and sharing progress with
borrowers
Monthly updates on status of Treasury/PFMS project implementation
in ECA
The Maturity Framework (MF) for Treasury / PFMS development
process [ www.worldbank.org/pempal ] link to Treasury MF
Tool and user guide
[ www.pempal.org/pfmstool ] location of MF tool
PEM-PAL Discussion Groups [ www.pempal.org/discussions ] >
Treasury CoP
PEM-PAL Blog [ www.pempal.org/blogs ] > External
Other useful information Budget Classification and Chart of Accounts structures in selected
countries
Summary of Treasury Single Account operations in selected
countries
February 2008 ECA Treasury / PFMS Projects 10
Maturity Framework for Treasury/PFMS Development
Maturity Framework for Treasury/PFMS projects
A Community of Practice for Treasury Managers was established in
June 2006 as part of the Public Expenditure Management-Peer
Assisted Learning (PEM-PAL) program (
www.worldbank.org/pempal ) activities.
The Maturity Framework (MF) for the Treasury / PFMS development
process was developed during the "PEM-PAL workshop for Treasury
Officials" held in Ljubljana, Slovenia from June 26-27, 2006.
The Maturity Framework was designed to enhance learning and
knowledge sharing among Heads of Treasury and related key
officials in public expenditure management from 14 ECA countries.
The Bank prepared a web site to publish the results and to facilitate
interactive monitoring and management of proposed indicators
( www.pempal.org/pfmstool ).
February 2008 ECA Treasury / PFMS Projects 11
Treasury/PFMS Maturity Framework
Readiness PFM reform strategy Institutional capacity Countrywide network infrastructure
1
Preparation Legal and institutional frameworks Budget coverage Treasury Single Account (TSA)
2
PFMS Design Definition of system functionality Detailed technical requirements
3
Procurement Large scale ICT systems Technical Assistance and Training
4
System development & integration Full scale testing and rollout Training and change management
Implementation
5
Maintenanceand Support
Budget funds Technical capacity System administration Maintenance
7
9 – 18month
s
9 – 18month
s
18 – 36
months
Resources
Effectiveness
Time
Monitoring & Evaluation
Monitoring mechanisms Project mgmt capacity
6
Maturity Frameworkfor Treasury/PFMS projects
www.pempal.org/pfmstoolinteractive monitoring and management of MF
indicators
February 2008
ECA Treasury/PFMS Development Status
Completed
Started
In progress
13ECA Treasury / PFMS Projects
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