I ntergrated F inancial M anangement I nformation S ystems BUSINESS CASE GOVERNMENT OF ZIMBABWE

1. Intergrated Financial Manangement Information SystemsBUSINESS CASEGOVERNMENT OF ZIMBABWE JUDITH MADZORERA ACCOUNTANT GENERAL Windsor Golf & Country Club Resort, Nairobi, Kenya, November 8-12, 2004 Government of Zimbabwe IFMIS

2. Change Drivers/Challenges Reform initiatives Effect of challenges Solution to the problem Requirements Benefits Lessons learnt Agenda

3. Finance management and Reporting problems Regular overspending against budget Parliamentary Public Accounts Committee and other stakeholders. (Failure, late submission of financial reports). Change drivers/challenges

4. Persistent carry over of expenditures Increased financial related frauds Failure to pay suppliers on time Change drivers/challenges

5. Cash management Bank reconciliations not up to date No action/follow up on dishonoured cheques Foreign payments not charged to the Government expenditures Charges and penalties on outstanding payments Change drivers/challenges

6. System Centralised Bureaux Based Data Processing Unit Centralised programming support and services systems based on WAN or MAN none existent Delays due to old generation language and outdated IT infrastructure Change drivers/challenges

7. Economic Reform Programmes, ESAP and ZIMPREST Parliamentary Reform Public Service Reforms Reform initiatives

8. Governance issues Transparency and Accountability Value for money Decentralisation and empowerment Reform initiatives

9. No real time reports and overview of budget and expenditure Payment for services not rendered/increased fraud Integrity of government accounts were being questioned Stakeholder losing confidence in Government’s ability to manage public funds Effect of challenges

10. Lack of information to make informed and timely decisions Following year budgets being committed before hand Suppliers refusing to provide to Government on credit/being charged high premiums. Effect of challenges

11. Re- engineer the way Government carried out its business: Introduce a computerised accounting and financial management system which is : Efficient Effective Economic Solution to the problem

12. Easy to use Quality information to make informed decisions Connecting Treasury with all Line Ministries for Monitoring Supervision Control expenditures Real time financial and management information. Solution to the problem

13. To design and introduce a Public Financial Management System The system was to be implemented on modern accounting package software that has been tried and tested in the global market place. Government was seeking a genuine partnership with the selected solution provider to ensure that the solution is implemented effectively. Own funding. Requirement by GOZ

14. Approved the introduction of SAP Enterprise Resource Planning (ERP) system Adopted modified accrual accounting Need to decentralise Public Financial Management System

15. ZIMBABWE IFMIS GENERAL INFORMATION Population: 13.2 million Ministries : 22 Ministries rolled out: 22 including provincial sites Districts to be covered year beginning 2005 Orgn of Accounting: Each ministry own a budget with central control of monthly usage

16. ZIMBABWE IFMIS BACKBONE INFRASTRUCTURE CHINHOYI BINDURA HARARE CHEGUTU MARONDERA KWEKWE GWERU MUTARE BULAWAYO MASVINGO GWANDA Key TX Link 2M Connectivity 64K Connectivity

17. Modules selected Material Management Procurement Inventory Management Revenue/Sales and Distribution Cash Management Public Financial Management System

18. Financial Accounting Accounts payable Accounts Receivable General ledger Assets Management Funds Management /Planning and Budget Public financial management system

19. Elimination of non value adding activities such as data entry duplication/data captured at source Information sharing and access Reduction in administrative overheads/ elimination of paper returns and payments Allowing focus on analysis rather than transactional issues Benefits accruing from PFMS

20. Improved service delivery and payment to suppliers/cutting on bureaucratic processes of approval Simple and easy to use integrated modules/value for money Better management of inventories Benefits accruing from PFMS

21. Confidence in the Government financial accounting and management system /improved GOZ image Development of ICT infrastructure Real time/on line information for decision making purposes Improved productivity and better planning (Catalyst for Development) Improved communication within Government – use of internet, e-mail etc. Benefits

22. Need for High Level Commitment- strong political and administrative leadership Need for a credible institutional and legal infrastructure – tendency to operate outside system Human Resources Needs Key skills, knowledge and attitude to drive the change Continuous training Strategies for retention Lessons learnt

23. Clarity of business processes critical for system modification – Development of the appropriate classification Involvement of Internal and External Audit in project preparation System security issues and back up arrangements User Ownership Transformation of existing culture Appropriate Infrastructural Support Telecoms Technical Support Lessons learnt

24. THANK YOU