Financial Management Information Systems PEMPAL TCoP Workshop Baku Azerbaijan 1012 April 2018 PEMPAL Treasury CoP Thematic Group Meeting on Use of Information Technologies in Treasury Operations ID: 1042121
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1. Trends in Expanding the Scope ofFinancial Management Information SystemsPEMPAL TCoP WorkshopBaku, Azerbaijan 10-12 April 2018PEMPAL Treasury CoP Thematic Group Meeting on Use of Information Technologies in Treasury OperationsCem DenerLead Governance Specialist &Chair, FMIS Community of Practice
2. ContentsTransition to IFMISTrends in Expanding FMIS ScopeContentsTransition to IFMISTrends in Expanding FMIS Scope1Trends in Expanding the Scope of FMIS
3. 2www.worldbank.org/publicfinance/fmis Transition to IFMISIntegrated FMIS (or IFMIS) combine core FMIS modules (OLTP) with powerful Data Warehouse (DW) capabilities and multi-dimensional data analysis tools (OLAP) for effective planning, decision support, service delivery, and performance monitoring.Core FMIS functional modules and interfacesCore Financial Management Information Systems (FMIS) can be broadly defined as a set of automation solutions that enable governments to plan, execute and monitor the budget. Core FMIS = OLTPIFMIS = OLTP + OLAP
4. IFMIS = OLTP + OLAP3Public Sector InstitutionsCitizens, NGOs, BusinessesOLTP : Online Transaction Processing OLAP : Online Analytical Processing DW: Data Warehouse ETL : Extract, Transform, Load BI : Business Intelligence DM : Data MiningFMIS : Collaboration & CoordinationWeb Portal - InternetWeb Portal - IntranetData WarehouseOLTPOLAPETLFMISFMIS DatabasesBIBIBIDMDMDMPFM Operational SystemsIntegrated FMIS SolutionsMulti-dimensional analytical queries consolidation slice & dice drill-downInterfacesDW : Monthly Updates & Dynamic Query OptionsImages: jscreationzs / FreeDigitalPhotos.netGoals > Sustainable public resource management + Effective public service delivery + Open and accountable governmentOpenBudgetDataETLOther e-Gov systemsG2GG2CG2BG2E
5. Integrated Digital Solutions (Government Cloud)e-Gov Portal& e-Services4Transition to IFMISImages: jscreationzs / FreeDigitalPhotos.net Shared ServicesGovernment Systems *FMIS, Tax, Customs, Health, Education,Social Protection, Pensions & morePublic Sector Institutionsnational, sector and sub-national levelsCitizens, NGOs, BusinessesG2CCitizens G2BBusinessesG2GG2EInstitutionsCivil Registration + e-ID Servicese-Payment ServicesFunctional RegistriesSociety > Citizen Participation& Feedback on e-ServicesDigital Signature & PKI ServicesSystem ManagementData Center Operations, Help Desk, Disaster Recovery,Information Security & more Data Warehouse(Open Data)Information Managemente-Mail, Content Mgmt, Records/Doc Mgmt, Knowledge Mgmt, Master Data Mgmt & moreIFMIS is an Integral Part of Digital GovernmentFMISTax/CustEduHealthOperational DatabasesA simplified model of integrated Digital Solutions for connected e-ServicesHRMISSoc Sec* Government Systems cover the integration (interconnectivity & interoperability) of sector applications, back office systems, as well as the improvement of institutions, capacity, regulations, processes, information management, and more (National Enterprise Architecture, e-Gov Interoperability Framework, Single Window, and One-Stop-Shops).Single Window | One-Stop Shop | Single Sign-on
6. 5www.worldbank.org/publicfinance/fmis Trends and Challenges in Transition to IFMISChallengesKey challenges in transition to IFMIS are Adaptive (non-technical):Leadership & change management for transition to digital culture, and improving online service deliveryEnforcing the use of IFMIS for daily recording of all budget transactions, and web publishing of resultsTrendsIntegrating core FMIS with DW and gov systems to improve data quality & value, and to expand the scope of transactions / TSAIFMIS modernization by combining traditional & agile approachImproving interconnectivity through web Application Program Interfaces (APIs), and benefiting from new CC API to link Country Systems with WB databases.
7. 6Trends in Expanding the Scope of FMISContentsTransition to IFMISTrends in Expanding FMIS Scope
8. Financial Public CorporationsFinancial Monetary Public Corporations (Central Bank)Financial Nonmonetary Public CorporationsNonfinancial Public CorporationsState GovernmentsLocal GovernmentsBudgetary Central GovernmentExtra Budgetary UnitsSocial Security FundsCentral GovernmentPublic Sector *General GovernmentNonfinancial Public SectorDistributed Databasesother public entitiesInterfaces(Web APIs)CentralizedDatabaseMoF > FMIS & DW* Institutional structure of “Public Sector”, as defined in the IMF Govt Finance Statistics 2001/2014 ManualsChart of AccountsHow to Automate Recording and Reporting of Public Finance Data?Expansion of FMIS Scope7Classification / Budget
9. Trends in Expansion of FMIS Scope8Expansion of FMIS to Support Spending UnitsTrends in expanding FMIS scope to provide access to Spending Units (SUs) for budgeting, accounting and reporting needs can be broadly categorized in three groups.A combination of these can be seen in many countries depending on the level of transition from fragmented to integrated digital solutions, and operational models (centralized or distributed accounting & reporting).* Current status of country cases will be discussed during the workshop for possible updatesGroupExpansion of FMIS to support Spending UnitsSelected Country Cases*ACentralized web-based shared FMIS providing direct access to all SUs (Public cloud / Internet)Georgia, EstoniaBWeb Portal linked to centralized FMIS providing (free) access to SUs (Public cloud / Internet)Albania, France, S. Korea, Brazil, Vietnam CDistributed & disconnected SU systems exchanging data with centralized FMIS (Interface / Manual)Moldova, Poland, China
10. Trends in Expansion of FMIS Scope9FMIS Expansion Options – Pros & ConsA. Centralized web-based shared FMIS providing direct access to all SusB. Web Portal linked to centralized FMIS providing free access to all SUsBoth > Harmonize accounting procedures and reporting standardsBoth > Unified budget classification/chart of accounts for budget & accountingBoth > Require adequate technical capacity & reliable infrastructure to maintainShared > Can be very expensive (licenses & customization), if FMIS is COTS basedPortal > Ideal to lower the cost of FMIS expansion to all SUsPortal > Reduced load on centralized FMIS by supporting selected PFM functionsPortal > Can broaden the scope (customized modules), if FMIS is not COTS basedC. Distributed & disconnected SU systems (data exchange with FMIS)Least desirable due to excessive cost and system security/reliability concernsVery difficult to ensure financial data integrityData transfer to centralized FMIS is through an interface or manualDelays in consolidation and verification of transactions, and report generation
11. AFMIS10Albania > AFMIS Integration ModelIn ProgressIn ProgressOperational since 2010
12. 11France > CHORUS Integration ModelCENTRALLOCAL16 REGIONAL DEPARTMENTAL MUNICIPAL26100MinistriesRegional CouncilGeneral CouncilMunicipal Council36 800State AdministrationTerritorial AdministrationHospital AdministrationProcurement requestGrant requestConfirmation of Service ProvidedNew V6 formsChorus Forms ReferrersShared Services CentreChorusEJ*SF*createscertifiesUsers in Referrer Depts can issue requests via Chorus Forms portalSource: Jacques MARZIN, CHORUS Presentation, IADB Workshop, Nov 2011* EJ - Legal commitment SF - Service provided
13. Powiat (379)Voivodeship (16)Central (1)?? MDAs60,000 SUs??? BE/PEMoFTREZOR = ?? CUWHBP = ?? CUBESTIA = ?? CUTREZOR = ?? CUWHBP = ?? CUBESTIA = 380 unitsTREZOR = ?? CUWHBP = ?? CUBESTIA = ? units??? BE/PETREZOR = ?? CUWHBP = ?? CUBESTIA = 16 unitsMoF : Ministry of Finance MDA : Ministries, Departments, Agencies CU : Concurrent User Licenses SU : Spending UnitNBP : National Bank of Poland TSA : Treasury Single Account CB : Commercial BanksPSC : Public Service Commission PPO : Public Procurement Office WHBP : Data Warehouse (analytics, reporting, monitoring)PFM Information Systems in PolandNBPPoland > Current Status of PFM Information SystemsTaxNBPTSATaxTax. . .Transactional data (Daily, Online)TAAggregate data (Monthly/Quarterly)TTMDAInterbankPaymentSystemsMDA. . .MoFSUOnlineTaxAAMDAVoluntary useOfflineOnlineE-CustomsOnlineCustGminas (2,479)Communes or MunicipalitiesCustTREZOR 3.0SUMDAMDA. . .SWEZ-HRE-GPCommercialBanksCB #1CB #XCB #X BrCB #1 BrCB #1CB #1CB #XCB #X. . .. . .TTRTGS & ACHCB #1CB #XE-TaxPSCPPOOnlineOnlineMDAMDAMDA. . .SUMDACustCust. . .OnlineBESTIAPayrollPensionsProcurementTaxCustomsMDAWide Area NetworkCtr budget prep & execLocal budget execMDAMDA. . .BESTIABESTIABESTIABESTIAMDAMDA. . .OfflineTREZOR = ? CUBESTIA = 2428 unitsMDAMDA. . .TaxCust. . .SUSUWHBPOnlineCB #1CB #XAAATTTA
14. 13Planned Transition to GFMIS in Vietnam Asset / Inventory MgmtProcurement/PurchasingMgmt of Budget AuthorizationsCommitment of FundsPayments and Receipts MgmtCashManagementDebt and Aid ManagementFiscal Reports & Budget ReviewAudit and EvaluationBudget PreparationPolicy Development and ReviewHR Mgmt/Payroll + PensionsWeb Portal / DWPublish / MonitorGFMIS DBPublic InvestmentsTax and CustomsGFMIS = B + T (+ O)General LedgerAccountingDaily OperationsMarket Operations/ SecuritiesOpen Budget DataTreasury Single AccountDWMPI + MoFITAIS/e-CustomsMoFDKTSMoFMoF + MoHAMPI + MoFMoFIntegrated platformTSA fully operationalNew modules: PIM + e-Procurement + Debt Mgmt (?) + HRMIS/Payroll + Portal for SUs+ SOE reportingTABMISMoFTABMISMoFTABMISMoFDMFASMoFTABMISMoFStateAccountingM-EForecastingPrice ManagementNational Reserves
15. PBOC14Proposed Integration Model in ChinaChina > Unified ICT Infrastructure & Online ServicesMoHRSSMoFSATPBOCAgent BanksSIMISFMISTaxTSAAB #1AB #XInterbank Payment SystemsIBPS + HVPS + BEPSAB #X BrAB #X BrTDC / FCTDC / FC. . .HRSSHRSSPBOCNWTax SystemNWAB #1 BrAB #1 Br. . .PBOC BrPBOC Br. . .AB #1AB #1AB #XAB #XAB #1AB #XAB #1AB #X. . .. . .. . .PBOCPBOC. . .. . .BanksTax BrTTTTTAggregate(Weekly/Monthly)Transactions( Daily)ASIMISNWFMISNWTaxTax. . .TaxTDCTDC. . .TDCDHRSSHRSSHRSS. . .. . .HRSSHRSSDHRSSProposed Shared ICT Infrastructure & e-ServicesGovernment Service Bus ( Service Oriented Architecture / SOA )Hybrid solution integrating centralized national MIS & provincial MIS platformsProvincial HRSS MISATATATax BrTax Br. . .MoPSSAISNHFPC : Nat’l Health & Family Planning Comm NSSF : Nat’l Social Security Fund MoCA : Min of Civil Affairs MoPS : Min of Public Security SAIS : State Admin for Industry & CommerceDHRSS : Dept. of HRSS TDC / FC : Treasury Disb. Ctr. / Fin. Commissioner Tax Br : Tax Bureau PBOC Br : PBOC Branches AB #X Br : Agent Bank Branches NW : NetworkNHFPCNSSFMoCATown (40,466)Village (704,386)County (2,852)Prefecture (334)Province (31)CenterBanksTTaxTax. . .Provincial Tax MIS
16. PFM Systems in S. Korea15Source: dBrain Presentation; IADB Korean Week in DC, May 2014; Mr. Sang Rock Bae, Director, MoSF, S. KoreadBrain > Integrated System Modules
17. Trends in Expansion of FMIS Scope16Strategic DirectionsWhat can be done to define strategic directions for expansion of FMIS?Initiate a stocktaking exercise to clarify the current status of PFM practices, capacity, and information systems in SUs.Discuss possible options for automation of SU PFM functions, and connectivity with centralized systems with key stakeholders:(A) Centralized web-based shared FMIS providing direct access to SUs; (B) Web Portal linked to FMIS providing (free) access to SUs; and (C) Distributed & disconnected SU systems (data exchange with FMIS)Develop a realistic roadmap for the modernization and connectivity of existing/new PFM systems, in line with the expectations of MDAs / SUsStart with pilot implementations to explore the capabilities of web-based solutions (combination of traditional and agile approach)
18. Thank youFMIS CoP > https://eTeam.worldbank.org/FMIS FMIS Web Site > http://www.worldbank.org/publicfinance/fmis
19. www.worldbank.org/publicfinance/fmis Web Resources > FMIS CoPFMIS Community of PracticeObjective : To assist the practitioners (country clients, World Bank staff/consultants, and development partners) in improving the effectiveness of PFM operations and service delivery by sharing knowledge and experiences, and producing relevant, leading edge knowledge products on integrated FMIS solutions.Established in Sep 2010. Around 1,250+ members from 135 economies (as of Mar’18). https://eTeam.worldbank.org/FMIS
20. www.worldbank.org/publicfinance/fmis Web Resources Digital Governance Projects Databasehttps://datacatalog.worldbank.org/dataset/digital-governance-projects-database 1,200+ digital governance projects in 150+ countries (since 1995). Released in Jun 2015. Updated annually (Aug).WBG developed several global datasets to present the current status of Public Financial Management (PFM) information systems, Open Budget Data (OBD) practices, and e-Services in 198 economies, as well as the WBG funded FMIS and Digital Governance projects: FMIS Projects Databasehttps://datacatalog.worldbank.org/dataset/financial-management-information-systems-database Details of 140+ WBG projects in 79 countries (since 1984). Released in Aug 2010. Updated biannually (Jan + Aug). FMIS & OBD Global Datasethttps://datacatalog.worldbank.org/dataset/fmis-and-open-budget-data-global-dataset Practices in publishing Open Budget Data from FMIS in 198 economies. Released in Sep 2013. Updated annually (Aug).PFM Systems & eServices Datasethttps://datacatalog.worldbank.org/dataset/public-financial-management-systems-and-eservices-global-dataset Global dataset on PFM systems & eServices in 198 economies. Released in Mar 2015. Updated annually (Aug).ID4D Global Datasethttps://datacatalog.worldbank.org/dataset/identification-development-global-dataset Civil registration & identification systems in 198 economies. Released in Dec 2014. Updated annually.