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INSIDE FMIS

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Provide awareness/understanding of the FMR, its major components and the key ... FMIS has to be tailor made to suit the new legislation which includes a new ... – PowerPoint PPT presentation

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Title: INSIDE FMIS


1
  • INSIDE FMIS

2
Objective of Briefing
  • Objective of this briefing is two fold
  • Provide awareness/understanding of the FMR, its
    major components and the key changes associated
    with it and
  • To get yourselves prepared to take on the
    implementation of FMR/FMIS

3
Outline of Presentation
  • Financial Management and its key elements
  • Problems with current Financial Management
  • FMR Focus Components
  • Why FMIS for Whole of Government?
  • Benefits of FMIS
  • Key Issues in FMIS

4
What Is Financial Management?
  • Definition
  • Financial Management is management of finances
    of an organisation in order to achieve its
    objectives.

5
Key Elements of Financial Management
Planning
Management Cycle
6
Problems in the Current Financial Management for
Government
  • Poor planning
  • Lack of performance focus
  • Input based
  • Poor distribution of limited resources
  • Unclear linkages of outputs to national policy
    objectives

7
Contd
  • Inadequate financial controls
  • Poor budgetary controls financial management
    practices
  • Untimely and inaccurate reports
  • Poor recording of commitment
  • Reports lack useful data
  • Centralized control vs. CEO accountability

8
Financial Management Reform (FMR) Focus
  • FMR seeks to put in place a better performing
    budget and financial management system that
    addresses the problems identified through
  • adopting a performance focus
  • strengthening accountability

9
What Does FMR Bring About?
  • New Legislation

10
Contd
  • A move from cash accounting and gradual
    transition (shift) to accrual accounting

11
Contd
  • A move from traditional line item budgeting to
    performance/output budgeting

12
Link between FMR and FMIS
  • A new Financial Management Information System
    will support the changes in the FMR

13
What is FMIS?
  • The Financial Management Information System
    (FMIS) is an integrated database system and will
    be used to support the governments purchasing,
    accounting, payment, sales and receipting
    functions.

14
Why an FMIS for the WOG?
  • FMIS provides public sector decision makers and
    managers a set of tools to
  • Ensure accountability
  • e.g. The CEO will be held accountable for any
    over spending in his/her ministry.

15
Contd
  • Supports decentralization of accounting processes
  • e.g. LPOs would be issued from Cost Centres all
    over the country but the head office would still
    have controls over expenditure.

16
Contd
  • Improve effectiveness and efficiency
  • e.g. FMIS will enable faster processing of
    payments as well as receipts.

17
Why move?
  • Major problems in the manual system are
  • Slow processing of payments
  • Slow processing of transaction
  • Inaccurate untimely financial information and
    reports i.e. information is not recorded on real
    time

18
Benefits of FMIS
  • Processes large number of transactions in limited
    periods of time across a country wide network of
    offices

19
Contd
  • Easy retrieval of financial information for
    decision making e.g. financial information can be
    viewed where transactions are generated

20
Contd
  • Availability of basic data required for economic
    management in a timely manner

21
Components of FMIS
  • New Chart of Accounts for WOG
  • General Ledger
  • Accounts Payable
  • Purchasing
  • Accounts Receivable Sales
  • Assets
  • Other modules

22
More on FMIS
  • FMIS has to be tailor made to suit the new
    legislation which includes a new Financial
    Management Act, Finance Instructions and Finance
    Manuals

23
Contd
  • Continued job security
  • with the automated environment

24
Key Issues
  • Training
  • Capacity building within government
  • e.g. Change in work practices,from manual and
    paper based to an automated environment e.g.
    expenditure ledger will not be maintained in an
    automated environment.
  • Briefings will be done on a progressive basis as
    we proceed

25
Contd
  • Ownership
  • Understanding the reform and the key changes in
    it.
  • The accounting heads will need to drive the new
    FMIS implementation in order to succeed. And they
    will need nominate a person who can work closely
    with the FMIS team to assist in the training and
    implementation

26
Status of FMIS
  • Tendered for a new FMIS in April 2004
  • Currently in the evaluation process
  • Selection to be finalized by end of September
    2004
  • Commence implementation on a pilot basis early
    2005

27
Desk Officers
  • For your assistance we have set up a helpdesk
    facility should you have any queries regarding
    FMIS.
  • E-mail FMRHelpdesk_at_govnet.gov.fj
  • Phone 3222 144

28
QUESTIONS
  • THANK YOU
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