THE INTEGRATED FINANCIAL MANAGEMENT AND INFORMATION SYTEM

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THE INTEGRATED FINANCIAL MANAGEMENT AND
INFORMATION SYTEM

• Joel Jones Kijalo Mwanza
• Assistant Accountant General
• United Republic of Tanzania

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INTRODUCTION

• Background
• Policy issues
• Single Treasury Account
• IFMS
• Benefits
• The way forward

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BACKGROUND

• Pre-IFMS period
• Poor expenditure management
• Accumulation of domestic debt arrears
• Inconsistent reporting
• Systems not talking to each other
• Weak internal control system
• Recognition of need for change

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POLICY ISSUES

• Need to reign in excess expenditure and monitor
  revenue collection
• Need for institution of strict financial
  discipline
• Have a framework for accountability of public
  funds
• Strengthen financial and other controls

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SINGLE TREASURY ACCOUNT

• Opening of a single treasury account at the
  Central Bank(1996)
• Closure of all ministerial and departmental
  accounts
• Central payment system(CPS) introduced
• Cheques issued centrally
• Automated and manual systems

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IFMS

• July 1998-integrated financial management system
  started
• 10 MDAs connected to main server at Treasury via
  dedicated networked system
• Databases located at main server
• The rest of MDAs still operated on 1996 system
• Need to assess the efficacy and effectiveness of
  IFMS

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IFMS (continued)

• July1998- all MDAs in IFMS
• Govt chart of accounts on GFS
• 2001/2002 all subtreasuries on stand alone IFMS
• Budget module/Active planner rolled out to MDAs
• 2002/2003 all regional MDAs on IFMS duly
  networked to the Subtreasury D-Base
• Introduction of commitment control
• Introduction of datawarehouse
• Upgrade of main server capability at the Treasury

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IFMS (continued)

• Synchronization of legislation and practice
• Public Finance Act 2001 and accompanying
  Regulation
• Capacity building initiatives
• LGAs staff included in training since 2003/2004
• 1700 trained since 2001 todate

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BENEFITS

• Significant improvement in reporting
• Bank reconciliation now timely
• Reports at touch of a computer key
• Reports are customized to meet our needs
• Final accounts generated in 3 months instead of
  the previous 4 months
• National accounts in 4 months instead of 6

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BENEFITS (continued)

• 48 MDAs are online and thus increased
  transparency
• 20 subtreasuries on IFMS
• MDAs in 20 regions are on IFMS
• No over commitments
• No suppliers domestic debts
• Budget numbers for 3 years online
• Final accounts 3 years online

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BENEFITS

• More than 1700 staff trained
• Availability of financial alerts
• Improved internal control features
• Audit trail
• Time outs in accessing system
• Use of passwords
• Access limitation
• The availability of system administrator

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CHALLENGES

• Resources constraints
• Lack of skilled staff
• Lack of equipment
• Inadequate financing
• Backup
• Sustainability
• Power outages

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CHALLENGES

• Commitment management and staff
• Uncoordinated IT initiatives
• Geographical spread-telecom and travel
• Managing expectations-both internal and external
  (IT is not a cure all)

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CHALLENGES

• Resistance to change
• Need for political support
• In-house struggles

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WAY FORWARD

• Extend IFMS to other modules e.g Asset and
  Inventory modules
• Linkage with Local Government Authorities
• Consolidation of gains achieved so far

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WAY FORWARD

• Disaster recovery site
• Further capacity building
• Updating of link between Sub Treasury and HQ

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THE END