Sierra Leone IFMIS Project Overview by E1v479

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									 Government of Sierra Leone




     Sierra Leone
IFMIS Project Overview
          Presented by:

      WINSTON COLE
   Head, PFM Reform Unit
      Venue: Nairobi, Kenya
       11th November 2004
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    Objective
   Overview of the design, procurement
    process and change strategy for the SL
    IFMIS Project within the context of an
    overall PFM reform agenda.




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Topics
Broadly, we will cover the following issues.

   Change triggers
   Functional design
   Procurement process
   Implementation approach
   Change management
   Challenges

                                           3
 PFM - Budget Cycle
            Preparation




                          Execution
Reporting



            Accounting
                                 4
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
                                                          5
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
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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
                                          8
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 Secretary’s Office
 Auditor General’s 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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                               Corporate Programme Management
                                    Minister of Finance                         Independent Oversight
                                                                                  The Auditor General




                                     Project Steering Committee


             Senior Users             Executive                 Senior Supplier     Project Sponsor
    Accountant General            Financial Secretary              FreeBalance
    Budget Director                                              PFM Reform Unit       World Bank
    Establishment Secretary




           Project Assurance           Project Management
    1. Independent firm
                                      Head PFM Reform Unit
    2. Ministry of Health




             Team Managers                                               Project Support

    IT Specialists                                                       IT Programmers
    FM Specialists
                                                                     Configuration Librarian

IFMIS Organisational Structure                                                                      11
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 Secretary’s 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 General’s 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
Jun                   Oct                             Nov

                                              “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               17
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
                               NEW CHART OF ACCOUNTS
                               Fifte e n-digits code structure

1st digit                  -   Type of tra nsa ction (Economic Classification )

                                   1      Revenue
                                   2      Re curre nt Ex pe nse s
                                   3      De ve lopme nt Ex pe nse s
                                   4      Fina ncing Inflow
                                   5      Fina ncing Outflow
                                   6      Asse ts (Curre nt & Fix e d)
                                   7      Lia bilitie s
                                   9      Cross Entrie s (Journa ls)

2nd, 3rd & 4th digits      -   re pre se nt the De pa rtme nt code numbe r

5th, 6th & 7th digits      -   re pre se nt the Activity/Proje ct code numbe r
                               (formerly programme code)

8th a nd 9th digits        -   Source of Funds
                                    00     Consolida te d Fund
                                    01     De pa rtme nt Re ve nue
                                    03     Roa d Fund
                                    54     IDA
                                    20     AfDB
                                    30     EU
                                    40     DfID
                               (it is possible to code receipts/payments in k ind)

10th, 11th & 12th digits   -   re pre se nt the Obje cts of Ex pe nditure /Re ve nue

                                  111     Ba sic Sa la rie s
                                  112     Gra nts
                                  211     Loca l Tra ve lling
                                  241     Office a nd Ge ne ra l Ex pe nse s

                                100-599   Recurrent Expenditure
                                600-699   Capital Exp. on Physical Assets
                                700-799   Capital Transfers
                                800-999   Financing Items
                               (See detailed bridging table)

13th, 14th & 15th digits   -   re pre se nts the Ge ogra phica l loca tion

                                 HQO      He a dqua rte r
                                 SBO      Bo
                                 NBO      Bomba li
                                 EKO      Ke ne ma
                                 W OO     W e ste rn Are a
                               (See detailed geographical codes table)
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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




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