TRANSFORMING PUBLIC FINANCIAL MANAGEMENT THROUGH TECHNOLOGY
WHAT IS IFMIS?
The Integrated Financial Management Information System (IFMIS) is an integrated Public Financial Management system being implemented by Federal Government of Ethiopia (FGE) through the Ministry of Finance and Economic cooperation to improve Public Financial Management System and Property Administration; enhance greater accountability, timely financial and property information and transparency across Federal Ministries, Agencies, Regions, City administration, Zones and Woredas. It is an initiative of Expenditure Management Control Program (EMCP) of Public Financial Management reforms It is also believed to increase efficiency and reduce back-office costs with standardized processes for shared services. It will also allow the government to manage its finance from a single and integrated system The IFMIS solution is the latest version of the ORACLE E-Business Suite (EBS) comprising the following nine modules: Public sector budgeting (PSB), Cash Management (CM), Account Receivables(AR), Account Payables(AP), General Ledger (GL), Purchasing , Inventory, Fixed Asset and Payroll
OBJECTIVE OF IFMIS IMPLEMENTATION
- Initiated to put in effect all PFM Reforms
- To form standard process across the Public Bodies from Budgeting till Reporting
- Aims to support public bodies and regions to generate accurate, accessible and timely government-wide financial information
- Leverages the advantage of systems where data is entered only once but used/referenced and Reported every where
- To establish single source of information to assist decision making in Public Finance matters
- Provides the information to ensure improved efficiency and effectiveness of government financial management
- Increases availability of comprehensive financial information on current and past performance, assists budgetary control and improved economic forecasting, planning, and budgeting
- Improve the current limitation of financial system and lack of system support for property administration, fixed asset management , procurement and payroll
- Fully integrated system to provide information as a single source of truth for quick accesses on data to avoid any delay in decision making.
- Advanced application architecture with multiple ledgers for data security but still within the same server to have required access consolidation.
- Integration within/between modules to prepare required information without data entry multiple times.
- Unified Chart of Accounts across Federal, Regions, Zones and Woredas; consideration of international standards (GFS-2001 and COFOG)
- Facilitation towards Program Based Budgeting
- Standardization of processes across all Jurisdictions and Public Bodies.
- Support full annual budget preparation processes from budget call till parliament approval, final notification and budget administration.
- Automated Cash Flow Preparation, Approval, Fund Request, Disbursement and Zero Balance Limit Setting
- Full system support from procure to pay processes
- Provide clear solution for donor funds management
- Interfaces with Banks, DMFAS and Customs and Revenue Systems
- Bringing in standard Item codification.
- Clear solution towards Property (Inventory and fixed asset) Administration
- Swift Consolidation mechanism for the entire Nation, meanwhile tighten data security and independence by each Public Body
4. WHAT HAS BEEN ACHIEVED SO FAR?
- Oracle application and technology training for more than 83 government experts,
- Solution design and build, end-to-end testing, and user acceptance testing,
- 3 data centers built at the Ministry of Finance and 2 regions,
- IFMIS implemented and rolled out at 124 public bodies & branch offices
- IFMIS role-based training provided to over 10,000+ end users,
- IFMIS made system of record for all treasury and donor funds, and property management,
5. CURRENT AND ONGOING EVENTS
- Finalize roll out of IFMIS to 156 Federal public bodies
- Roll based End Users training ongoing
- Data collection, cleansing and migration from current/legacy systems to IFMIS
- Knowledge transfer to government staff
- Existing Environment/data center upgrade and migration
- Rollout Sites hardware, WAN and LAN connectivity, infrastructure preparation
- Revision of strategic plan
- Enhancing IFMIS security with INSA
- End Users support and site operational acceptance
- Conducting change management and communication activities
- Interfacing and report customization