Functional design of an IFMIS

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Functional design of an IFMIS

• Bengt Anderson
• Director
• The Swedish National Financial Management
  Authority

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INTEGRATED FINANCIAL MANAGEMENT INFORMATION
SYSTEMS IN GOVERNMENTS

• IFMIS

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Functional design of an IFMIS

• Presentation
• Definition of an IFMIS
• Consolidated Accounts - Management Accounting
• Off the shelf package - Bespoke software
• Accounting Standards
• Enterprise Resource Planning Best of Breed
• Central IFMIS in Sweden

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Presentation

• Financial Management Authority of Sweden
• Statistics Sweden
• National Audit Office
• Defence Material Purchasing Authority
• Swedish Telephone Company
• UN Conference on Environment

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Definition

• Planning/Budgeting
• General Ledger/Accounting
• Human Resource
• Management Accounting
• Performance Measurement
• Asset Management/Inventory
• Appropriation Account
• Workflowsystems

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Financial Management Environment
Framework for Federal Financial Management
Systems, JFIMP
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Trends

• International Standards
• Off the shelf package
• Accrual Budget and Accounting
• Consolidated Accounts and Information
• Information- and response burden in the Agencies
• Shared service
• Fewer Financial Management Systems

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International standards

• International Federation of Accountants/Public
  Sector Comitte
• National Accounts
• Government Financial Statistics

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Issues

• Data entry once
• Classification
• Chart of Accounts
• Complexity
• Totaly Integrated
• Program Budget Structure
• Performance Measurement
• Big Bang Implementation

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System integration strategies
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ERP-strategy

• Definition
• One central system used within main areas (FM,
  Planning, Production, Purchasing, Inventory, HR)
• Special solutions within few and narrow areas
• Integration through the ERP-suite or through
  separate integration solution
• Motives
• Business development through best practice
  processes supplied by the ERP-package
• Improved information management and increased
  transparency
• Lowered maintenance cost
• Integration within the solution

Business process 1
Business areas
Business process 2
ERP
IT-support/ integration
Integration strategy
ERP
ERP
MW
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Best-of-Breed Strategy

• Definition
• Several systems used within main areas (FM,
  Planning, Production, Purchasing, Inventory, HR)
• Niche systems within a number of areas
• Separate integration platform
• Motives
• Business development through best practice
  processes supplied by different systems within
  the solution
• ERP-suite not good enough within critical
  processes
• Evolutionary strategy preferred by decision makers

Affärsprocess 1
Business Areas
Affärsprocess 2
IT-support/ integration
EAI
Integration strategy
MW
13
Servey
Förhållande nöjda - missnöjda
BAS
PLUS
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Central IFMIS in Sweden
Parlament
Ministries
Agencies
State Budget System
State Account
HERMES Database
Annual Directives
State Budget
Ministry of Finance
Public