russian treasury modernization project implementation experience 1 deputy head of the russian...
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General Information about the Federal Treasury 3TRANSCRIPT
Russian Treasury Modernization Project Implementation Experience
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Deputy Head of the Russian TreasuryS.B. GuralnikovS.B. Guralnikov
- General Information about the Federal Treasury - Main Functions and Architecture of the Federal Treasury Automated System (FTAS)- Integrated Project - Lessons learned from the development stage - Experience of the Federal Treasury Information System Implementation - Architecture of Remote Financial Documents Flow System (SUFD) and specific features of its implementation - Further development of information systems on FTAS basis
TABLE OF CONTENTS
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General Information about the Federal Treasury
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Overall Project Implementation Results1998 - 2002 год 1998 - 2002 год
((start of project preparationstart of project preparation))
• No Single Treasury Account• Spending units accounts opened in
commercial banks• No commitments control system• Imperfect budget classification with no
possibility to control expenditures• Budget revenues and expenditures are
accounted by independent agencies• Multiple diverse independently developed
information systems in FT offices• Significant balances on budge accounts are
not used
20122012
• Federal Treasury is one of the main financial Federal Treasury is one of the main financial management bodies in the country management bodies in the country
• Operational STAOperational STA• Unified information system has been Unified information system has been
introduced, transfer to new FTAS nearly introduced, transfer to new FTAS nearly completedcompleted
• 23 23 607607 budgets being serviced• Over 78Over 78 000 000 bank accounts• Over Over 222020 000 000 client organizations• Over 2 3Over 2 300 00000 000 certificates for electronic
signatures issued free of charged• Over Over 40 000 00040 000 000 payment transactions on
average per month• 2727..1 1 trln rubles trln rubles accounted budget revenues• 1919.6 .6 bkn rubles bkn rubles revenues from interest on
deposited budget funds
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Main Stages of FTAS Development
Roll-out
•2007 •2008 •2009 •2010
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
•2006
Q1 Q2 Q3 Q4
DevelopmentPilot implementation
•2011
Q1 Q2 Q3 Q4
Preparation phase – difficult comprehension of the system requirements
Development – delays and debates on the system design and functionality, modification of legislation
HOWEVER : significant time required for tender preparation, selection and design paid-off by relatively painless and rapid implementation
2002-2004 – development of technical requirements and tender documentation
2004-2005 – two-stage tender
•2002 •2003 •2004 •2005
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Main Functions and Architecture of FTAS
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Oracle Hyperion
Oracle BI Publisher
Oracle Discoverer
System Modules
Electronic document flow, Client’s automated workstation, off-line local treasury office (LTO), security server
Technological platform
Cash expenditures planningBudget reporting
Oracle E-Business Suite modules:
Oracle Financials
Oracle Purchasing
Oracle Inventory
System of electronic documents exchange (SUFD)
Registration and delivery of budget dataCommitments accounting and controlReceipts processingPayments managementGeneral LedgerMaintenance of reference materials
RBMS Oracle 10g EE,
Oracle Developer Suite,
Oracle AS 10g,
Oracle Identity Mgt,
Oracle Essbase7
Project Integrity
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Comprehensive approach to the system design
FTAS
New business processes Infrastructure
Information security New software
• Set of measures to improve methodological , legal and regulatory framework, training (!)
• Implementation of set of measures to ensure information security (separation of loops, hardware and software, organizational and technical measures), training (!)
• Modernization of IT infrastructure (communication system, engineer support system, operation management system, server equipment), training (!)
• Application software development and implementation, training (!)
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PROJECT COMPONENTS INTEGRATION
Legislation Improvement Component
TRA
ININ
G
TRA
ININ
G10
Lessons learned at Development Stage
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Experience gained at development stage
• Important of thorough development of requirements at the tender stage• No matter how thoroughly they are described, there will be misunderstandings with the supplier
at the development stage – need for dispute resolutions mechanisms and for flexibility• Importance of expert review for documents preparation and control over supplier (Integrator) • Importance of comprehensive approach to system design – taking into consideration of all
components (role of the World Bank) • Importance of realistic planning, top-management’s expectations control (initially nonrealistic
schedule for FTAS development) • CONCEPTUAL choice – to develop the system for existing regulatory framework or to change
regulatory base for the developed system• At the design stage, it is important to clearly document all details of business processes for
common understanding of the system functionality by the client and the supplier• Planning and control of interrelated tasks deadline – the system quality will anyway depend on
the weakest element
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FTAS Implementation Experience
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Overview of the System Implementation Activity
Implementation stages• Infrastructure preparation (communication, engineering systems, server equipment) (2006-2008); • Comprehensive application software testing (2008) and fine tuning;• Pilot implementation (4 regions) - 2009• Roll-out (5 waves) – 2010-2011.
Implementation challenges• Need to ensure continuous and high quality service for the FT clients;• Changing legislation (moratorium only for one year);• Transfer from decentralized system (over 2 500 data bases) to centralized one (83 regional data bases of the same structure).
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Importance of Planning and Integration
• Planning – work plans for each contract, each site, and each project;
• Implementation procedures, regulations – key to successful roll-out (industrial approach);
• Alignment of activity schedules for all components at each site;
• Risk analysis for each component (identification of weak elements).
Ид. Task Name Длительность Начало поплану
проекта
Окончание(прогноз)
Срок поКонтракту
Предшественники
1 Основные результаты (по стадиям 2 и 3) 414 дней Ср 25.04.07 Пн 24.11.08 НД2 ППО готово к внедрению 0 дней Пн 17.03.08 Пн 17.03.08 НД 483 СИО внедрено для УФК пилотных регионов 0 дней Ср 25.04.07 Ср 25.04.07 НД 78
4 СИО внедрено для ОФК пилотных регионов 0 дней Пт 21.12.07 Пт 21.12.07 НД 825 ВТС внедрено для пилотных объектов 0 дней Вт 30.10.07 Вт 30.10.07 НД 966 Серверное оборудование установлено для пилотных регионов 0 дней Пт 21.03.08 Пт 21.03.08 НД 102
7 ППО установлено в пилотной зоне 0 дней Чт 07.08.08 Чт 07.08.08 НД 1308 Опытная эксплуатация ППО завершена 0 дней Пн 24.11.08 Пн 24.11.08 НД 132
9
10 Подготовка к внедрению системы 790 дней Пн 23.01.06 Пн 02.02.09 НД11 Разработка и тестирование ППО 790 дней Пн 23.01.06 Пн 02.02.09 НД49 Закупка серверного оборудования и ПО для пилотных
регионов191 дней Пн 19.03.07 Пт 07.12.07 НД
57 Закупка общесистемного, офисного и антивирусного ПО 87 дней Вт 22.08.06 Ср 20.12.06 НД
58 Создание ВТС - подготовка пилотного внедрения 17 дней Пт 01.06.07 Пн 25.06.07 НД59 Анализ результатов тестирования и уточнение характеристик ВТС 7 дней Пт 01.06.07 Пн 11.06.07 НД 29
60 Принятие решения по схемам реализации ВТС 10 дней Вт 12.06.07 Пн 25.06.07 НД 59
61 Аудит пилотных объектов и дооснащение 297 дней Чт 30.11.06 Чт 17.01.08 НД62 Аудит документации и объектов 45 дней Чт 30.11.06 Ср 31.01.07 НД
63 Подготовка ТТ для дооснащения пилотных объектов 22 дней Чт 01.02.07 Пт 02.03.07 НД 62
64 Дооснащение объектов 230 дней Пн 05.03.07 Чт 17.01.08 НД 63
65 Объекты готовы к установке серверного оборудования 0 дней Чт 17.01.08 Чт 17.01.08 НД 6466 Проектирование и закупка СУЭ 408 дней Пн 06.11.06 Вт 27.05.08 НД75
76 Внедрение системы в пилотных регионах 712 дней Вт 11.07.06 Вт 31.03.09 НД77 Внедрение СИО для пилотных объектов 311 дней Пн 16.10.06 Пт 21.12.07 НД78 Внедрение СИО в УФК 140 дней Пн 16.10.06 Пт 27.04.07 НД79 Внедрение СИО для УФК Ульяновска 110 дней Пн 27.11.06 Пт 27.04.07 Ср 31.01.07
80 Внедрение СИО для УФК Саратова 134 дней Пн 16.10.06 Чт 19.04.07 Вс 10.12.06
81 Внедрение СИО для УФК Самары 88 дней Пн 04.12.06 Ср 04.04.07 Пн 19.02.07
82 Внедрение СИО в ОФК 147 дней Чт 31.05.07 Пт 21.12.07 НД83 Внедрение СИО для ОФК Ульяновского региона 124 дней Чт 31.05.07 Вт 20.11.07 Пн 30.07.07
84 Внедрение СИО для ОФК Саратовского региона 116 дней Пт 13.07.07 Пт 21.12.07 Сб 04.08.07
85 Внедрение СИО для ОФК Самарского региона 122 дней Чт 14.06.07 Пт 30.11.07 Ср 18.07.07
86 Внедрение ВТС для пилотных объектов 342 дней Вт 11.07.06 Вт 30.10.07 НД97 Установка серверного оборудования в пилотных регионах 75 дней Пн 10.12.07 Пт 21.03.08 НД
103 Пилотное внедрение ППО 213 дней Чт 31.01.08 Пн 24.11.08 НД133 Проектирование и пилотное внедрение СУЭ 210 дней Ср 11.06.08 Вт 31.03.09 НД134 Обследование и проектирование 140 дней Ср 11.06.08 Вт 23.12.08 НД 74ОН+10 дней
25.04 24.1117.03
25.0421.12
30.1021.03
07.0824.11
23.01 02.0223.01 02.02
19.03 07.12
20.1201.06 25.06
11.06
25.0630.11 17.01
31.0102.03
17.0117.01
06.11 27.05
11.07 31.0316.10 21.1216.10 27.04
27.0419.04
04.0431.05 21.12
20.1121.12
30.1111.07 30.10
10.12 21.0331.01 24.11
11.06 31.0323.12
Кв. 1 Кв. 2 Кв. 3 Кв. 4 Кв. 1 Кв. 2 Кв. 3 Кв. 4 Кв. 1 Кв. 2 Кв. 3 Кв. 4 Кв. 1 Кв. 2 Кв. 3 Кв. 4 Кв. 1 Кв. 2 Кв. 3 Кв. 4 Кв. 12006 2007 2008 2009 2010
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System Roll-Out
5 roll-out waves, 10-15 regions in each wave, clear roll-out schedule with identical activities set, separate team of supplier in each region working in cooperation with implementation team of regional treasury office (RTO)
• Preparatory activitis;• Installation of application SW and user’s automated workplaces;• Data entry/migration;• Training of key users;• Comprehensive testing; • Testing operational days;• Training of remaining users;• Test operations (at pilot sites);• System go live.
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On-line SUFD architecture and its implementation
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Interaction between FTAS and automated workplace “Other participant of the budget process”: SUFD, portal solution
Интернет
УБП
УБП
СЭД(офлайн)
АСФК
БД Oracle e-Business Suite
Подсистема информационного взаимодействия
СУФДПортал
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Implementation of online SUFD
FTAS
July August September October November
3 wave19 RTO
Online SUFD
June
4 wave26 RTO
Total: 79 RTOs within 4 months. Implementation period for one wave– 1 month based on standard implementation plan.
SUFD-1 wave– 22 RTOs (including 21 RTOs of FTAS-4 wave). Completed.SUFD-2 wave– 13 RTOs. Completed.SUFD-3 wave – 19 RTOs. Completed.SUFD-4 wave – 26 RTOs (including 17 RTOs of FTAS -5 wave). Completed.
5 wave17 RTO
4 wave21 RTO
1 wave22 RTO
2 wave13 RTO
2011
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Document with digital signature is received by FTAS data base and is stored there unchanged (with digital signature assigned at the client level).Compliance with legal norms and principles upon digital signature utilization : Compliance with conformity principle : 1 user– 1 digital signatureDecrease of possibility to use several digital signatures by one employee
Documents are not stored at the workstations/servers of other participants of budget process, there is no risk of unauthorized access to information.
Connection with RTO user through safe VPN-connection. No interception of information is possible.
Increase of legal and information security with online SUFD
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Further development of information systems on FTAS basis
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Further development of information systems on FTAS basis
Key Performance Criteria
Development of information and analytical system of key performance criteria of budget execution in in the budget system of the RF
Public Procurement Portal
Development of official site for placing information about procurement of goods and services
Technological support system
Development of technological support system
Accounting for individual payments
Roll-out of the system allowing to account for each payment of individual
Integrated public finance management IS
Development and implementation of integrated public finance management information system “Electronic Budget”
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New opportunities, new tasks for the FT
Пользователи:•Office of the President of Russia;•Office of the Government;•Ministry of Finance;•Ministry of Regional Development;•Public Authorities;•Other external users.
• Implementation of centralized system provides new opportunities;• System of key performance indicators of budget execution– monitoring of the situation in the budget system on the basis of FTAS and other state systems.
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FTAS Interaction with Key Performance Indicators System
FTAS RTO -1
FTAS Interregional
operation deprtmnt
FTAS MainDeprtmnt
FT
External Data :●MoF●Rosstat
Учетные системы ФК
DATA STORAGE
(updated daily)
KPI multi-user system :
Common form:●Baseline indicators●Key indicators●Graphic display●Additional analytical
functions
Desktop● Indicators●Alerts●Pre-configured reports
Statutory reports
MDFT
MinFin
RTO
Government authorities●RF constitutent
entities●etc
Other external users
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Enhancement of efficiency: general approach
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Tasks:
Ensuring common manageable work method
Reduction of functional processes costs related to functional
Streamlining organizational and staff structure
Objective:Efficient structure and efficient execution of functions/processes
Prerequisites Administrative, budget, civil service reform to improve
public administration efficiency
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Overall logic of the system operation
Regulation Analysis of operations statistics
Model “as it is”
Statistics of operations
Structure and size
Modeling
Load optimization
Technology compliance control Контроль,
detection of bottlenecks
General efficiency analysis
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Implementation benefits
Costs optimizationRedistribution of functions between
employees and units
Optimization of processesReduction of operations number
(exclusion of redundant operations)
Motivation enhancementEfficiency oriented, moral and
material incentives
Optimization of organizational structure and staff schedule
Restructuring of units and divisions
System for processing individual payments
RevenueAdministrator
Unified portal of public services
Federal Treasury
Payers
Bank of Russia
1. Debt accrued with unique ID
2. Information on charges
4. Payment of services with unique ID7. Information on
payment
8. Transfer of funds
9. Confirmation of paid amounts
10. Acknowledged payments and charges
11. Acknowledged payments and charges
3. Information on charges
11. Acknowledged payments and charges
Payment systems,Credit institutions
6. Information on charges
5. Query
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Cash management PayrollHR management
Asset management
Procurements
Budget allocations management
Budget commitments
Payments and revenues management
Public debt and aid management
Budget reports and analysis
Audit and control
Budget preparationPolicy development and analysis
Web-portal publications
FTAS
Public investments Budget Execution[Treasury system FTAS]
Completion of FTAS Implementation – start for new projects
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Procurement planning Placement orders Contract recordingContract execution
Control
Budget preparation
Services cost planning
Maintenance costs calculation
Development of programs/ subprograms
Debt and financial assets management
Control and audit
Efficiency monitoring
Cash planning
Cash placement
Completion of FTAS implementation– start for new projects
Accounting and reporting
Procurement managementBudget planning
Cash expenditures execution and accounting
Delivery of budget data and tasks
Expenditures management
Accounting of revenues from non-financial assets
Efficiency monitoring
Cash management
Management accounting
Accounting
Management of non-financial assets
Revenue management
HR managementSubsidy agreement registration
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General scheme of official site functioning in the Internet for placement of the information about state and municipal institutions
Federal Treasury
FT bodies
FT bodies
FT bodies
Official site for placing information about state (municipal) institutions (official site)
Closed loop Open loop
Reference materialsReference materials
Information placementInformation placement
Entry into Personal OfficeEntry into Personal Office
Search and reflection of information Search and reflection of information
Analytical informationAnalytical information
2
DS certificates
Reference materials,, classifiers
Information placement
Authorized representatives of the institutions
Internet users
Information on the institutionsIn conformity with Registration Procedure Information about
institutions
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Portal solutions for “Electronic budget” implementation
Unified portal of the RF budget system
Regulatory, statistical and analytical information on public finance management
Users access to functional sub-systems through “Personal Offices” system in conformity with their authorites
Open loop of the portal Closed art of the portal
Official site with information about institutionsClosed loopOpen loop
User accesses authentication
and authorization services
Official site on public procurementsClosed loopOpen loop
Key performance indicators information systemAnalytical loop of KPIKPI window
FTAS Portal (online SUFD)Closed loopOpen loop
WEB-services of EB upon their implementation32
Thank you for attention!
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