THE INTEGRATED FINANCIAL MANAGEMENT AND INFORMATION SYTEM

1. THE INTEGRATED FINANCIAL MANAGEMENT AND INFORMATION SYTEM Joel Jones Kijalo Mwanza Assistant Accountant General United Republic of Tanzania

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

3. 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

4. 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

5. 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

6. 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

7. IFMS (continued) • July1998- all MDAs in IFMS • Gov’t 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

8. 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

9. 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

10. 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

11. 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

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

13. 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)

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

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

16. WAY FORWARD • Disaster recovery site • Further capacity building • Updating of link between Sub Treasury and HQ

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