Khajane-II Integrated Financial Management System

1. Khajane-II Integrated Financial Management System • Khajane-II – COMPUTERIZATIONAn Integrated Real-time Solution • Contents • Current System – A Snapshot • Current System – Typical Hardware Setup • Current System – Typical Process Flow • Current Constraints & Solutions • Flow within Government. • Bill and Payment Flow. • Accounts compilation • Tax payment • Transformation Implementation • Benefits Khajane-II

2. Current System – A Snapshot BENEFITS Largely accurate reports resulting in better monitoring • Transparency in Treasury Functioning • Better Cash Flow Management • Improved Expenditure Control • Timely rendering of Accounts • MIS-Classification Largely Reduced KEY FUNCTION • Primarily Designed To Take Care Of Treasury Transactions. OFFSHOOTS • 1) Budget Control. • 2) Compilation & Classification Of Accounts • 3) Generating MIS Reports • 4) Reconciliation Of Accounts Technical Architecture • 2-Tire Architecture, Dispersed Client-Server. • Data Base On ORACLE 8i Platform • V-SAT Connectivity, Current Bandwidth Of 4 MBPS Shared With Two Other Depats. • Main Server On SUN-SOLARIS OS • Fraudulent Payments Severely Limited Khajane-II

3. Current System – Typical Hardware Setup I DU N M C SERVER SWITCH U P S V sat Antenna NMC CLIENT CLIENT L.M.P. D.M.P. Khajane-II

4. Current System – Typical Process Flow N M C N M C ACKN C/W C/W - HA BACK OFFICE FRONT OFFICE SERVER NMC C/W T.O. VALIDATION Khajane-II

5. Current Constraints & Solutions Current Constraints Proposed Solution • To come out with new khajane application which will support all envisaged advanced functionalities. • Seamless and secured integration of treasury with user departments and stake holders like f.D, other departments, o/o a.G., Post offices, banks etc. • N-tier architecture,providing for data base server, application server and fast efficient clients • Connectivity between treasuries to be through leased line/ KSWAN as redundancy. • New requirements and demands by government cannot be handled to its best with current application. • Since Khajane.Net is an intranet, integration with various agencies like A.G’sO, Banks, Depts, P.O., etc has not been possible • 2-TIER architecture with dispersed client-server remotes • V-sat connectivity with bandwidth constraints Khajane-II

6. CONTINUED…… • Improvement in internal architecture and application to avoid data loss, • Automation of internal processes to ensure service level controls through exception reporting. • Enable finance department to control releases, integrating disbursement of budget allocation, additionalities, erratas, supplementary estimates etc. • Information on receipts and payments to and from banks through electronic advice and online daily scroll updation. • Upgrading security controls, incorporating security features, generating decision support systems etc., Current Constraints Proposed Solution • Application, database software is out dated, p3 systems still in use which do not support new applications and software, nor can be protected by anti-virus ware. • Currently all the budget related updations by FD are done manually at TNMC. • All payment advices and scrolls between treasuries and banks are sent manually and updated in treasury database. • Security and user administration have become audit issues Khajane-II

7. CONTINUED…… • Develop management protocols, procedures, manuals for over-all computerized treasury environment. Current Constraints Proposed Solution • Poor documentation, new functionalities and procedures not updated in the manuals and not outlined for easy reckoning Khajane-II

8. FD Deptt / HOD (200) Controlling Officers (1000) Drawing & Disbursing Officer (22000) Flow within Government Authorization Flow for Funds Information Flow for Budget Flow Strategy: Decision output information is captured before paper output is generated from the system Khajane-II

9. DDO Online Bill followed by paper bill Treasury Payment Information ECS Payment Advice Payment e-scroll Bank Bill & Payment Flow DDO Khajane-II

10. Budget Treasury FD Payment Information Prelim e-Accounts e-Accounts AG Accounts Compilation Khajane-II

11. Treasury Deptt Payment Data Tax information e-Scroll Bank e-Payment Public Tax payment Khajane-II

12. Transformation Implementation Plan • Design • To-be process maps • Re-Eng processes • Functional Requirement study. • Identify MIS Requirements • System design • Application development • Integration • H/W sizing & Procurement • Pilot • Roll-out Design financial/business model Define SLAs Present various Solns. Define TO-BE Pre-bid Clarifications Implementation Final RFP DPR Study AS-IS Gap Analysis Tender Process Evaluate bidders Draft RFP • Study present • Structure • Functions • Limitations • Study stakeholders • ’ systems & linkages • Evaluation of technical & commercial bids • Select competitive bidder • Float RFP • Prepare • Change Mgmt Plan • Solution Architecture Khajane-II

13. Benefits • Real-time information available from point of origin of the data to all stake holders. • Availability of financial position at any point of time, enabling dynamic decision making. • Integrate business processes across departments onto a single enterprise-wide information system. • Improved coordination across functional departments and increased efficiencies with timely accounting. Khajane-II

14. ECS Payment of Salaries • Currently 80000 employees (15% of total) get salaries through ECS in 5 cities • Another 100000 employees to be under ECS payment in 11 cities by August 09. • Further expansion is constrained by Banks’ limitations on CBS • Authorization is currently floppy based – More secure communication arrangements to be developed as part of KHAJANE II application. Khajane-II

15. Payment of Pensions • Currently through Public Sector Banks, but with no oversight by Government • Shift to Central Pension Processing Arrangements and e-payment by December 09 Khajane-II

16. Payments to PRIs • Payments to Gram Panchayats (5600) are through ECS • Treasury gives a consolidated cheque • Payee bank transfers to GPs through ECS based on Rural Devpt Deptt advice Khajane-II

17. Thank You ! Khajane-II