government integrated financial management information systems: past present & future
DESCRIPTION
looks at IFMIS trends including the problems experienced through custom developed software and the use of private sector Enterprise Resource Planning (ERP) software. Advocates the use of commercial software built specifically for government: Government Resource Planning (GRP) and shows how this can enable leapfrog transparency in Africa. Uses example of Timor-LesteTRANSCRIPT
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Version 7 section
• brief discussion PFM Trends:
Past, Present and Future
Michael Siegfried
Account Manager, Africa
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Version 7 section
• brief discussion
PAST TRENDS
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Version 7 section
• brief discussion
Past Traditions
MIDDLEWARE
DEVELOPMENT ENVIRONMENT
REUSABLE CODE
CONFIGURATION
APPLICATION
NEEDS
technical environment
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Version 7 section
• brief discussion
reality
MIDDLEWARE
DEVELOPMENT ENVIRONMENT
REUSABLE CODE
APPLICATION
NEEDS NEW NEEDS
DIFFERENT APPLICATION
integration
extensibility
cost risk
governance
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Version 7 section
• brief discussion
“poorer practices”
different budget & financial classifications
inability to report on money spent for objective or to cost
increasing procurement arrears & higher prices
reversals in previous years financial information or outside system
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Version 7 section
• brief discussion
solutioning
6 6
government rejects custom software after years of development
inability to upgrade to accrual accounting
inability or difficulty to support IPSAS and GFS standards
inability to reconcile accounts
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Version 7 section
• brief discussion
visibility
Current Needs Now Specialization Silos Benchmarks Trends Future Needs Futures
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Version 7 section
• brief discussion
PRESENT TRENDS
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Version 7 section
• brief discussion
COTS dilemma
MIDDLEWARE
DEVELOPMENT ENVIRONMENT
REUSABLE CODE
CONFIGURATION
APPLICATION
NEEDS
governance
customization
‘enterprise’
costs
proprietary
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Version 7 section
• brief discussion
“best practices”
10 10
use of line-item budgeting
not using budget & commitment controls in ERP software
inability to see “free balance” in real time
introduction of unneeded complex processes
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Version 7 section
• brief discussion
impact
11 11
so much customization – bears no resemblance to original
inability to easily progressively activate new functions
forced product upgrades
high costs and significant delays
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Version 7 section
• brief discussion
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Version 7 section
• brief discussion
FUTURE TRENDS
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Version 7 section
• brief discussion FreeBalance Typical Vendors
Cloud
• Designed for Shared Services and Cloud
• Designed for single tenant with bolt-on technology for cloud
• Multiple configuration options to support unique requirements
• Restricted ability to support multiple configurations
• Supports stepped migration to standard configurations
• Restricted ability to adapt over time – move to single configuration
• Open load balancing, virtualization, clustering
• Scalability supported through proprietary solutions
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Version 7 section
• brief discussion
FreeBalance Typical Vendors
Open System
• Java EE-based, proven open-source components
• Proprietary programming languages
• Support choice of open source and proprietary middleware
• Focus on proprietary middleware with some open source support
• Component-based Service-Oriented Architecture for ease of integration
• Some interfaces and WebServices support
• Optimal footprint – operates on laptop to data centre
• Translation layer, large database = large technical footprint = not sustainable
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• brief discussion
3rd choice: GRP
MIDDLEWARE
DEVELOPMENT ENVIRONMENT
GOVERNMENT PLATFORM
CONFIGURATION
APPLICATION
GOVERNANCE
NEEDS
NEED
government platform
custom
COTS
faster
extensible
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• brief discussion
achieve government sustainability?
platform & technology built for PFM
engage PFM community deeply to gain visibility to future
commit to government successes and feature improvements
develop methodology like “Governance Valuation”
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.943
.286
low medium high very high
Canada .908
Antigua .764
Mongolia .653
Liberia .329
Timor-Leste .495
| | |
Selection of FreeBalance Customers, National Level GRP Implementations from low to very high Human Development Index
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Integration
Decision Making
Transparency Participation
Trust Open
Systems
Effectiveness
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• brief discussion
leapfrog
integrated multiple year budget planning and execution
10 years of budget data on-line
decentralization & progressive activation to all gov’t entities
comprehensive PFM-driven reform on government platform
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• brief discussion
sustainability affordable
meets needs
adapt to reform
leapfrog
self-sufficiency
TCO
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• brief discussion
Global PFM
Provider
Canadian Company
GRP Leader
100% Government
Focus
ISO-9001/2008
Covers Budget Cycle
Modern Web
Technology
High Success
Rate
Company Summary
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23 23
www.transparency.gov.tl
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• brief discussion
reporting
• Output
• Data Mart
• Dashboards
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Version 7 section
• brief discussion
review
Strengthening Public Financial
Management in Timor-Leste
25
integration with macro-
economic data
examines budget execution data
integrated with back-office
procurement & commitment
accounting within IFMIS
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• brief discussion
review
Strengthening Public Financial
Management in Timor-Leste
26
integrated with back-office
procurement & commitment
accounting within IFMIS
vendor alerts
tender results published
government tenders published
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Version 7 section
• brief discussion
review
Strengthening Public Financial
Management in Timor-Leste
27
www.transparency.gov.tl