Sierra Leone IFMIS Project Overview

1
Sierra LeoneIFMIS Project Overview
Government of Sierra Leone

• Presented by
• WINSTON COLE
• Head, PFM Reform Unit
• Venue Nairobi, Kenya
• 11th November 2004

2
Objective

• Overview of the design, procurement process and
  change strategy for the SL IFMIS Project within
  the context of an overall PFM reform agenda.

3
Topics

• Broadly, we will cover the following issues.
• Change triggers
• Functional design
• Procurement process
• Implementation approach
• Change management
• Challenges

4
PFM - Budget Cycle
Preparation
Execution
Reporting
Accounting
5
Project Goal

• Implementation of a new Integrated Financial
  Management Information System (IFMIS) in 2005
  using the newly developed Chart of Accounts (COA)
  
• Other reforms
• - Government Budgeting Accounting Act
• (Revision of Financial Administration
  Regulation)
• - Procurement Act
• - Audit Service Act
• - Anti-Corruption Act
• - Local Government Act
• - Civil Service Reform - Pay grading review

6
Situation Analysis

• Weaknesses identified
• The current FMAS
• exhibits poor system design and lacks critical
  functionality, controls, automated bank rec.,
  audit trails and system documentation
• lack of system data checks and controls
• poor response time
• limited ability to generate reports
• weak access security and
• is inaccessible to MDAs
• supervision of consultants by MOF EU

7
Functional Design

• SOUR- for core/non-core modules
• Integral or Integrated
• Operational requirements
• mandatory (avoids customisation)
• desirable
• Technical requirements
• hardware network (scalability), operating
  system and relational database (SQL)
• Reporting requirements
• Statutory, Donors, IFAC, IMF-GFSM 2001,
  management/exception reports report writing tool

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How do we achieve the deliverables?

• Project management methodology PRINCE2 adopted
• (Projects IN Controlled Environment)
• QAs deployed in large MDAs and Treasury (by EU
  Project) to build capacity and assist to prepare
  monthly Management Accounts and clear backlog
  Annual Statement of Public Accounts
• Team/Resources

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Team/Resources

• PFM Reform Unit specialist team funded by IDA
• Technical support to MOF from donors
• - project assurance (DfID)
• - Institutional Strengthening (EU)
• MOF-AGD accounting internal audit staff
• Establishment Secretarys Office
• Auditor Generals Department - AfDB

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Technology Standards

• Integrated, single treasury account
• Based on World Bank Treasury reference model
• Benefits Windows based skills , user friendly,
  seamless interface with other packages (Bank of
  S. Leone)
• Standards being adopted
• IFAC (Cash accounting)
• IMF-GFSM 2001
• PRINCE2 project management methodology

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IFMIS Organisational Structure

• Corporate Programme Management
• Minister of Finance

Independent Oversight The Auditor General
Project Steering Committee
Project Sponsor World Bank
Senior Users Accountant General Budget
Director Establishment Secretary
Executive Financial Secretary
Senior Supplier FreeBalance PFM
Reform Unit

• Project Assurance
• . Independent firm
• . Ministry of Health

Project Management Head PFM Reform Unit
Team Managers IT Specialists FM Specialists
Project Support IT Programmers
Configuration Librarian
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Procurement Process

• Single Stage LIB
• - based on SOUR (tier two vendors)
• SBD prepared in stages and shared for comments
• Include all modules needed current and future
  requirements
• Request quote for license/maintenance fee for at
  least five years ( inflation)
• Turnkey solution, BUT
• - local sub-contractors for support (Service
  Level Agreement)
• Evaluation methodology agreed with sponsors
• - 80 technical 20 cost
• - demos against test scripts
• - end-users evaluation (it is their system)

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Phasing of acquisition of modules think BIG,
start small

• Phase 1
• - Budget execution and accounting system to
  replace present FMAS operating in MoF for whole
  of government
• - New HR/Payroll system to replace present FMAS
  module with input in Ministry of Finance/
  Establishment Secretarys Office during 2005
• - Budget preparation system to replace current
  spreadsheet system for 2006 FY budget

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Acquisitions cont.

• Phase 2 Rollout IFMIS with data input and on-line
  information access to other central government
  Ministries
• SL Police Force, Health, Educ., Agric., Works
  Auditor Generals Department
• Phase 3 Roll out to all other MDAs and Local
  Councils
• (Fixed Assets, Stores/ Inventory Management)

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IFMIS Schedule

• Milestones

Preparatory Work
Internal Review Mar 03 FMAS ext. review Nov
03 COA Nov 03 SOUR Feb 04 SBD June
04 Workshops for stakeholders
Bid submission Evaluation
No objection Contract
Implementation
Dec.
2005
IFMIS
Go-live in Treasury date will be determined
during planning with IFMIS vendor
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IFMIS Progress Report

• Overview of progress against schedule
• Bids issued 24th June, submitted 11th August
• Evaluation report submitted 21st September
• No objection received 4th October
• Contract signed 28th October
• FreeBalance implementation team expected to start
  by 22nd November
• In progress
• New COA training (bridge table)
• Validation of Payroll August onwards
• Personnel records - DOB, designation, address
  etc.
• Pay Details grade/scale, allowance/deduction,
  location, bank details
• Advances reconciliation
• - General Ledger COA codes mapping
• Bank Reconciliation
• Closure of 2004 accounts
• 2005-2007 budget prepared using the COA bridge
  tables
• The Project Steering Committee is regularly
  informed of any project issues needing urgent ad
  hoc direction

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Change management

• Scale of change modular, incremental
  adjustments
• Change leadership change agent
• Communication workshops
• Users Participation in evaluation involvement
  in implementation
• Training hands-on overseas
• Re-deployment
• Release
• Motivation Sanctions

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Change stakeholder analysis

• Gerald Egan (1994) identifies typical categories
  of stakeholder
• Your partners, who support your agenda
• Your allies, who will support you, given
  encouragement
• Your fellow travellers, passive supporters,
  committed to the agenda, but not to you
• The Fence-sitters, whose allegiances are not
  clear
• Loose cannons, dangerous because they can vote
  against agendas in which they have no direct
  interest
• Your opponents, players who oppose you and your
  agenda
• Bedfellows, who support the agenda, but may not
  trust you
• The voiceless, who will be affected, but have
  little power to promote or oppose, and who lacks
  advocates.

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IFMIS Benefits

• Improved information timely, accurate and
  customised reports
• Improved transparency accountability
  availability of reports will make budget
  officials answerable for the use (mis) of funds
  there could be no accountability without
  transparency (reports)
• Better expenditure controls reduced diversion
  of funds (requires discipline - collusion)
• Savings will be allocated to improve service
  delivery

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New COA
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Challenges

• Multiple donor management timing of funding and
  procurement procedures
• Technical Infrastructure
• - ICT Strategy
• - Telecoms (NWAN)- PPI or Govt. owned
• (Security, reliability/availability)
• - Power Supply
• Change management
• selling the vision
• reform fatigue
• Capacity Building
• establishment of an Accounting and ICT cadre
• trained staff retention

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We hope that Sierra Leone will be a model for a
successful IFMIS implementation in Africa and
walk the globe
www.sl-ircbp.org
Thank you for your attention