Intergrated Financial Manangement Information Systems BUSINESS CASE GOVERNMENT OF ZIMBABWE

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Intergrated Financial Manangement Information
SystemsBUSINESS CASEGOVERNMENT OF ZIMBABWE

• JUDITH MADZORERA
• ACCOUNTANT GENERAL
• Windsor Golf Country Club Resort, Nairobi,
  Kenya, November 8-12, 2004

Government of Zimbabwe IFMIS
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Agenda

• Change Drivers/Challenges
• Reform initiatives
• Effect of challenges
• Solution to the problem
• Requirements
• Benefits
• Lessons learnt

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Change drivers/challenges

• Finance management and Reporting problems
• Regular overspending against budget
• Parliamentary Public Accounts Committee and other
  stakeholders. (Failure, late submission of
  financial reports).

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Change drivers/challenges

• Persistent carry over of expenditures
• Increased financial related frauds
• Failure to pay suppliers on time

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Change drivers/challenges

• Cash management
• Bank reconciliations not up to date
• No action/follow up on dishonoured cheques
• Foreign payments not charged to the Government
  expenditures
• Charges and penalties on outstanding payments

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Change drivers/challenges

• System
• Centralised Bureaux Based Data Processing Unit
• Centralised programming support and services
  systems based on WAN or MAN none existent
• Delays due to old generation language and
  outdated IT infrastructure

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Reform initiatives

• Economic Reform Programmes, ESAP and ZIMPREST
• Parliamentary Reform
• Public Service Reforms

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Reform initiatives

• Governance issues
• Transparency and Accountability
• Value for money
• Decentralisation and empowerment

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Effect of challenges

• No real time reports and overview of budget and
  expenditure
• Payment for services not rendered/increased fraud
• Integrity of government accounts were being
  questioned
• Stakeholder losing confidence in Governments
  ability to manage public funds

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Effect of challenges

• Lack of information to make informed and timely
  decisions
• Following year budgets being committed before
  hand
• Suppliers refusing to provide to Government on
  credit/being charged high premiums.

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Solution to the problem

• Re- engineer the way Government carried out its
  business
• Introduce a computerised accounting and
  financial management system which is
• Efficient
• Effective
• Economic

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Solution to the problem

• Easy to use
• Quality information to make informed decisions
• Connecting Treasury with all Line Ministries for
• Monitoring
• Supervision
• Control expenditures
• Real time financial and management information.

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Requirement by GOZ

• To design and introduce a Public Financial
  Management System
• The system was to be implemented on modern
  accounting package software that has been tried
  and tested in the global market place.
• Government was seeking a genuine partnership with
  the selected solution provider to ensure that the
  solution is implemented effectively.
• Own funding.

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Public Financial Management System

• Approved the introduction of SAP Enterprise
  Resource Planning (ERP) system
• Adopted modified accrual accounting
• Need to decentralise

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ZIMBABWE IFMIS GENERAL INFORMATION
Population 13.2
million Ministries
22 Ministries rolled out 22 including
provincial sites

Districts to be covered
year beginning 2005 Orgn
of Accounting Each ministry own a budget
with central control of monthly usage
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ZIMBABWE IFMIS BACKBONE INFRASTRUCTURE
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Public Financial Management System

• Modules selected
• Material Management
• Procurement
• Inventory Management
• Revenue/Sales and Distribution
• Cash Management

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Public financial management system

• Financial Accounting
• Accounts payable
• Accounts Receivable
• General ledger
• Assets Management
• Funds Management /Planning and Budget

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Benefits accruing from PFMS

• Elimination of non value adding activities such
  as data entry duplication/data captured at source
• Information sharing and access
• Reduction in administrative overheads/
  elimination of paper returns and payments
• Allowing focus on analysis rather than
  transactional issues

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Benefits accruing from PFMS

• Improved service delivery and payment to
  suppliers/cutting on bureaucratic processes of
  approval
• Simple and easy to use integrated modules/value
  for money
• Better management of inventories

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Benefits

• Confidence in the Government financial
  accounting and management system /improved GOZ
  image
• Development of ICT infrastructure
• Real time/on line information for decision making
  purposes
• Improved productivity and better planning
  (Catalyst for Development)
• Improved communication within Government use of
  internet, e-mail etc.

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Lessons learnt

• Need for High Level Commitment- strong political
  and administrative leadership
• Need for a credible institutional and legal
  infrastructure tendency to operate outside
  system
• Human Resources Needs
• Key skills, knowledge and attitude to drive the
  change
• Continuous training
• Strategies for retention

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Lessons learnt

• Clarity of business processes critical for system
  modification Development of the appropriate
  classification
• Involvement of Internal and External Audit in
  project preparation
• System security issues and back up arrangements
• User Ownership
• Transformation of existing culture
• Appropriate Infrastructural Support
• Telecoms
• Technical Support

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THANK YOU