Financial Problems
• Poor Control – Overspending• Unrealistic Budgets – Revenue & Expenditure• Focus on inputs rather than outputs• Growing Pending Bills Problem• Spending Not Aligned to Priorities…. Poverty, etc.• Fraud, Corruption Lack of Transparency & Good
Governance• Poor Management of transactions/documents• Lack of effective auditability• Procurement – Poor Value for Money• And many more leading to poor delivery of Public
Services
System Problems
• Fragmented PC Systems and Mainframe System• Duplication of Data Capture• Information Locked Away in Systems• Lack of Real Flexible Reporting – Lack of Analysis• Limited Support to Operations• Use of Runners to Collect Data Diskettes• No One Overall System….• Need for Truly INTEGRATED SYSTEM• And many more………
IFMISOracle FinancialsBest Practice
Business Project - NOT IT Project
New ProcessesNew proceduresIPSASEffective ControlsModernEfficient
Staff DevelopmentTrainingProfessionalism of CadreOrganisational Alignment
New Schemes of Service
Project Structure
UPDATED LEGISLATION
IFMIS Enabling New Procedures And Processes
Driving NewChanging RolesNew Skills sets
Effective Financial Management
Tighter Controls & Strong Audit Trails
Improved Resource Allocations
Overspending Curtailed
Improved Revenue/AIAManagement
Platform for MTEF
Transparency on Procurement
Fraud Detection& Deterrence
Timely reliable informationEIS for Senior ManagersTRANSPARENCY COMPLIANCEACCOUNTABILITYGOVERNANCE
REVISED REGULATIONS
IFMIS Project - Status• Software:
– Contract for Oracle Financials Mobilised Jan’03
– Oracle Financials – Leading ERP Package
– Horizontal Implementation – 5 Core Modules Initially…
– To All Ministries and Districts
– Purchasing, Accounts Payable, General Ledger,
– Cash Management and Public Sector Budgeting
• Consolidation Platform for Future Modules
IFMIS Project - Status
• Data Centre Established:
– 1 Training Development Server
– 2 (Clustered) Production Servers
• PCs to Ministries/Districts - Ongoing
• Also Ultra Thin Client Dumb Terminals
• Future Plans for Disaster Recovery Site
• Networking & Connectivity – Ongoing
• IFMIS Operations & Training Room Set Up
• GOK Implementation Team (25) Fully Trained up
IFMIS Project - Status
• Configuration & Piloting Completed
• Roll Out to Ministries Ongoing to May ‘05
• Roll Out to Districts to be completed July ‘05
• Planning to Roll Out to 300 Users
• Next Phases: 500-1,000 Users & Other Modules
IPPD
Public Sector Planning & BudgetingMTEFFinancial ModellingBudgetary ControlOutput basedPrioritised ObjectivesDissemination to Districts
Purchasing & APControl at Commitment& pre Commitment
RFQs, orders, invoices,Payments, etc.
Transactions part of System process
IFMIS Modules
Implement Activities/Progs
Procure Goods& Services
Budget Monitoring Reporting & FeedbackFinancial, physicaland process, etc.
General LedgerCash ManagementFinancial ManagementExpenditure ControlCash Flow M’gementCompliance, TransparencyOnline access to InformationAudit controls
Linkages/InterfacesWith Other Systems
Revised PrioritiesRevised ActivitiesRevised Resource Allocations
Public Debt
Activities, Programmes, Outputs, Impact
OtherSystems
KRA, CBK, etc.
Invitation To TenderRequest for Quotes
Quotations & Tenders
EvaluationDetails &
EvaluationReport
LPO & LSO
Purchase Orders
FULL AUDIT TRAIL THROUGHOUT WHOLE PROCESS
Award ofContract
Attached Against Order
Suppliers’Invoices
Receive GoodsServices Cheque
Payment
Bank Statement
Cheque Cleared
Bank Rec
All details entered in system. Approvals at each stage, including MTC. Procurement method validatedAgainst thresholds & regulations
Evaluation Reports, Contracts and other important documents available online
System VisionOne Financial System
For All Stakeholder NeedsMinicomputer
Central System
FMADIBM Compatible
BSDIBM Compatible
ERDIBM Compatible
MinistriesIBM Compatible
DistrictsIBM Compatible
RCSIBM Compatible Planning
IBM Compatible
Debt Management
IBM Compatible
Audit (& Anti-Corruption)
IBM Compatible
AGDIBM Compatible
Procurement Dept
IBM Compatible
Revenue Management
IBM Compatible
DonorsIBM Compatible Other Policy
Makers
IBM Compatible
Oracle Financials - Modules• Phased (Horizontal) Implementation• Future - Widening Vertical Implementation• Other Modules?
– E-Procurement– Asset Management, Estate Management, Fleet Management– Plant & Equipment Management– Human Resource Management – Treasury Management– Inventory – Accounts Receivable & Revenue Management– E-Government
IFMIS PLATFORM UPON WHICH GOK CAN CONSOLIDATE ALL ITS APPLICATIONS
CashManagement
Reporting and Analysis Thro’ Reporting tools
General Ledger
Core Accounting& Reporting
General Ledger
Core Accounting& Reporting
Purchasing
AccountsPayable
Public SectorBudgeting
Reporting Tools
Inventory
FleetManagement
Asset Management
E-Procurement
AccountsReceivable
TreasuryManagement HRMS &
Payroll
Challenges & Issues
• Changing Attitudes – Getting Buy In
• Numbers of People to Be Trained
• Infrastructure
• Resistance to Change
• Disaster Recovery
• Funding
• Capacity for Implementation & Support
• Retention/Reward of Trained Staff
• Engagement of ALL Stakeholders
Challenges & Issues
• Other Reform Initiatives
• Lengthy (Government) Procurement
• Getting Top (Political) Level Support
Other Issues
• “Not Just an Accounting System……”
• Full/Total Resource Management
• Role For Wider Stakeholder Group Needs to be
Understood
Other Issues
• Strategic Visioning
• IFMIS Needs to be Priority
• Looking Forward to Future Not Past (Firefighting)…..
• IFMIS - Hard Work, Huge Management Effort
• But all Work Throughout Budget Cycle Easier in
IFMIS
• IFMIS - Enabler for Effective Working – Easier in
Long Run
• Steering Committee Vital Role to Ensure IFMIS Meets
All Stakeholder Needs
Other Issues
• Commitment, Ownership & Participation
• Continuity of Right People in the Teams
• Institutional Linkages/Arrangements
• Strong Communications to All Levels
Benefits
• To All:
• Users of System
• Service Delivery Officers
• All Stakeholders & Managers
• All Civil Servants
• Kenyan Citizens
Benefits• Strong Audit Trails (for all Financial Transactions)
• Visibility of all Transactions…leading to TRANSPARENCY
• Secure, Robust and Reliable Systems
• Best Practice
• Full Expenditure Control at Commitment Level
• Improved Revenue Analyses…Targets, Trends, Improved Revenue Management
• Management, Analysis and Control of Pending Bills
• Treasury Management, Issuing and Redemption of T’ Bills
Benefits• Support to Procurement Reforms and Effective
Procurement• Support to MTEF – Costing Activities• Fully Integrated System – More Efficient and Effective• High levels of automation - Bank Recs, Expenditure
Returns • Linkages and Information Sharing with Other Systems• Flexible Information, Analysis & Reporting – Financial
and Process• TRANSPARENCY, ACCOUNTABILITY,
COMPLIANCE GOOD GOVERNANCE
Benefits• Value For Money, Effective Procurement
• ….More Resources Available
• More effective utilisation of funds
• Spending Aligned to Priorities & Policies
• Eliminate Un-authorised/Over spending
• Reduction of Pending Bills
• Effective Flow of Funds.. Districts
• Improved Delivery of Public Services
• Reduced Poverty
• Lives Saved
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