SISTEM PERBENDAHARAAN & ANGGARAN NEGARA(SPAN/e-Budgeting)

Bobby Nazief

Staf Khusus MENKEU bid. Teknologi Informasi

PUBLIC FINANCIAL MANAGEMENT (PFM) REFORMS IN INDONESIA Key financial management reform objectives

Improve institutional image through adopting principles of Good Governance

Strengthen fiscal control ensure effective implementation of the budget allocations greater transparency in government financial management.

The DPR enacted several laws to support the reform objectives State Finance (Law 17/2003) State Treasury (Law 1/2004) State Audit (Law 15/2004)

An Integrated Financial Management Information System (IFMIS) is essential to introduce and sustain these reforms

IFMIS will be implemented through Sistem Perbendaharaan dan Anggaran Negara (SPAN)

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SPAN AS THE FOUNDATION FOR PFM REFORMS Accounting and Budgetary Reforms:

Integrates budget execution across ministries, as required for MTEF and Performance Based Budgeting reforms

Provides the ability to maintain a centralised General Ledger (GL) system for all Government agencies

Provides the data integrity, flexibility and consistency required for modernization of accounting, budgeting and reporting

Provides a “single window” electronic interface for other systems such as payroll, debt management, procurement, and audit.

Organizational Reforms: Operationalizes the business process reforms underway in KPPNs Executes processes and applies controls with minimal manual

intervention, allowing personnel to focus on analysis and strategy

Banking and Cash Management Reforms: Enhances the benefits of TSA reform. Automates bank reconciliation and enables electronic interfaces

between banks and treasury offices. Enables Treasury participation in BI’s payment system reforms

and provides real time information to BI for monetary policy and debt management

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LINE MINISTRIES

• RKA-KL• DIPA

SISTEM AKUNTANSIINSTANSI

SISTEM PENGELOLAAN & AKUNTANSI UTANG

SISTEM PENGELOLAAN & AKUNTANSI INVESTASI

EXTERNAL LINKS

• KOMITMEN• SPM

MOF

SISTEMPERBANKAN

BANK INDONESIA• RTGS• BIG-eB• SSSS-TERMINAL

DATA PROYEKSI: • PENERIMAAN• PENGELUARAN

MODUL PENERIMAANNEGARA (MPN)

MAIN USERS

UNIT ESELON 1 DEPKEU

DEP. TEKNIS

AUDITOR:• IRJEN• BPK• BPKP

BAPPENAS

DJPBN:• PUSAT• KANWIL• KPPN

DJA

OTHER USERS

SISTEM AKUNTANSIBARANG MILIK NEGARA GL

DATA PROYEKSI: • PENERIMAAN• PENGELUARAN

SPAN CONTEXT

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DirectorateGeneral of

Budget

LineMinistryline ministryreconciles

informationfrom Treasury

and SUs toprepare

departmentalaccounts

SpendingUnits

CentralBank(TSA)

DirectorateGeneral ofTreasury

Treasury Units

(KPPN)

COMMERCIAL

BANKS

4. SpendingUnit forwards

paymentrequest to KPPN

6. KPPNprocesses

SU payment requests

3. Treasuryenters initial

budget appropriations, allotments, cash limits

and in yeartransfer data to

Treasury system

5. Internal audit performs on lineand concurrent verification

of sample transactionsas they are processed

by the KPPN

9. DIEAaccessesTreasury

system toProduce reports

Accounting Reports from Treasury

Accountingreports

fromSpending

Unit

7. Treasurysystempasses

paymenttransaction to

theInterbankclearing

system-RTGS

10. Treasury producesconsolidated

fiscalreports from

the Treasury system

Other StakeHolders

11. Treasury producesBudget execution

reportsfor other stake holders

1. BudgetAppropriations

BankingNetwork

DIEA

2. DG- Treasury approves

Budget allotmentsand cash limits forsubordinate units

Internal audit section

8. Treasuryreceives

information onDeposits

in TSA ( e.g.tax and Revenue

Receipts,broken

down byindividual

transactionsvia RTGS Tax

payersSuppli

ers

Kanwil/KPPN Access to zero balance accounts in

Commercial banksfor cash disbursements/deposits

CORE FUNCTIONAL PROCESSES & INFORMATION FLOWS

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BENEFITS TO KEY STAKEHOLDERS

The Directorate General of Treasury in the Ministry of Finance, and its regional offices to undertake budget implementation, including payment processing, and perform associated accounting functions, including reporting in a near real-time manner;

The Directorate General of Budget and Fiscal Balance of the MOF to obtain the status of actual expenditures to enable budget monitoring and assist in budget preparation for out years;

The Cash Management Department of the Directorate General of Treasury to provide the information it requires for cash management;

Line ministries and agencies, to access financial information and reports pertaining to their organization;

By the Government auditing organizations (BPKP and BPK) to access financial transaction data for auditing purposes.

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KEY BENEFITS OF SPAN - SUPPORTING BUDGET & TREASURY OBJECTIVES (1) SPAN is the tool that will enable the key transformation of DG Treasury business operations by providing: A reliable cash management system which will enable the preparation of cash flow forecasts and plans.

Effective control budget allocation, expenditure commitments, and spending limits.

Capture of payment data at source, with data being entered once only, and online transfer to centralized and consolidated databases.

Maintenance of comprehensive and reliable centralized databases of all government financial transactions, covering the full range of financial processes from budget preparation, allocation, commitment, spending, accounting etc; provide an associated budget rules database.

A comprehensive reporting system that enables reliable management reports on government financial operations to be generated in real time enabled by modern information systems and made available to all stakeholders.

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KEY BENEFITS OF SPAN - SUPPORTING BUDGET & TREASURY OBJECTIVES (2)

Readily accessible and complete data records of all financial operations to enable full and comprehensive audits to be conducted using electronic audit tools.

Comprehensive online capabilities to Line Ministries and other agencies to enable them to submit information electronically and interrogate online centralized databases to access their information.

Progressive transition to accrual based accounting systems, as mandated by the State Treasury Law.

Fully automated treasury operations, reporting and accounting.

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BASIC OBJECTIVES OF SPAN Control: over the Government’s

budget and the assets and liabilities of government; and

Reporting: comprehensive, reliable and timely information on the financial position of the Government so as to facilitate government financial management.

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SPAN FUNCTIONS

1. Budget Preparation2. Management of Spending Authority3. Commitment Management4. Payment Management5. Processing of Government Receipts6. Cash Management7. General Ledger & Chart of

Accounts (CoA)8. Reporting9. Maintenance of Reference

Information 10

Systems are aligned according to business functions (e.g. RKA-KL for Budget Planning and SP2D for Budget Execution)

Data is owned by applications and requires manual re-entry People specialise in use of a single application There is lack of integrated reporting It is difficult to reconcile information from different systems for an accurate and reliable view

RKA-KL DIPA SP2D Reporting

Current Systems

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Budget Cycle

Core Accounting SystemGeneral Ledger Accounting

Financial Reporting

Treasury/Cash ManagementBank Reconciliation

Budget Preparation

ReportingFinancial Statements, Annual Reports, Management Reports, Stakeholder Reports

Fixed Asset Management

Stores and Inventory Management

Accounts Payable

Government ReceiptsGovernment Receipts

Payroll

Human Resources

Pensions

Customs and Tax Revenue

Customs and Tax Revenue

BUDGET PREPARATION ENHANCEMENTMacro-economicForecastsMTEF PreparationPerformance-based Budgeting

Debt Management System

Central/Commercial Bank

Central/Commercial Bank

Audit

Audit

Budget Allocation

Budget Commitment

Budget Execution

Purchasing

Revenue ManagementP

rocuremen

t

SPAN AS THE FOUNDATION OF IFMIS

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Core Elements of SPAN

Additional Subsidiary Ledgers or Modules

Feeder Systems

Audit

Ledger Data and Information Flows

Budget Data and Information Flows

LEGENDS

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The SPAN solution will be aligned according to business processes The SPAN solution will encompass and cut across organisational functions

SPAN will allow many features to be accessed by different people Boundaries between applications will become blurred through automated integration with systems like MPN, Debt Management, Investment Management, Asset Management

RKA-KL DIPA SP2D Reporting

Budget Planning to Budget Execution

Satker

Standardising User Interfaces and Application Interfaces will allow faster, better integration of processes across business functions.

SPAN WILL ALLOW INTEGRATION AND STANDARDISATION OF BUSINESS PROCESSES

SPAN INFRASTRUCTURE

Internet

Closed Call Group(0801, 0809, etc.)

Internet(PT Indosat)

Leased Line

MoF JakartaLapangan Banteng/Wahidin Campus

Extended Jakarta MoF Campus (Frame Relay, Leased Line,

Wireless, etc.)

Dial-u

p

Dial-up

PT TelkomNetwork

Category 1 Satellite Offices(high-volume traffic, i.e., Kanwil/KPPN)

Category 2 Satellite Offices(Intermittent traffic, i.e., LMRO/LMSU)

Data Recovery Center(Bandung)

Fiber Optic

Bac

kup

Dia

l-in

Link

IndonesianBanking System

A

E D

G

B

F

C

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SPAN TIMELINE

16

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2008 2009 2010 2011 2012 2013

COTS Fit-Gap Analysis

COTS Fit-Gap Analysis

COTS Configuration

COTS Configuration

Improvement of Business Process & Financial Management

Improvement of Business Process & Financial Management

COTS CRPCOTS CRP COTS PilotCOTS Pilot COTS Roll-OutCOTS Roll-Out

Change Management & CommunicationsChange Management & Communications

Assess-ment & PlanningAssess-ment & Planning

Funded by World Bank 2-Stage Bidding Procurement:

1st Stage: October ’05 (IFB-01/GFMRAP/2005) 2nd Stage: April ’08 (IFB-02/GFMRAP/2007) 2nd Stage (re-do): October ‘08