IFMS IMPLEMENTATION ASPECTS FOR CONSIDERATION

Informatics • Advisory Service IFMS IMPLEMENTATIONASPECTS FOR CONSIDERATION Deepak T. Bhatia, ISG

What is a Financial Management Information System? • Is a system that tracks financial events and summarizes information • Supports: • Adequate management reporting • Policy decisions • Fiduciary responsibilities • Preparation of auditable financial statements • Should be designed with good relationships between software, hardware, personnel, procedures, controls and data • Generally, FMIS refers to automating financial operations Deepak T. Bhatia, ISG

What Are Core and Non-core FMIS Systems? • Core systems • General ledger • Accounts payable and receivable May include: • Financial reporting • Fund management • Cost management • Non-core systems • HR/payroll • Budget formulation • Revenue (tax & customs) • Procurement • Inventory • Property management • Performance • Management information Deepak T. Bhatia, ISG

Information Systems Architecture for Government Fiscal Management MINISTRY OF FINANCE REVENUE COLLECTION TREASURY AGENCIES GOVT. PAYING/ FUNCTIONAL CENTRAL AUDIT DEBT ECONOMIC BUDGET SPENDING RECEIVING PROCESS CASH CENTRAL REGIONAL BANK ORGAN. TAXES CUSTOMS MANAGEMENT POLICY MANAG. AGENCIES BANKS MANAG. OFFICE UNITS MACRO ECONOMIC FORECASTING Macro Economic Framework AGENCY Government Budget BUDGET Banking Arrangements Guidelines PREPARATION BUDGET Budget Proposals; BUDGET PREPARATION PREPARATION old & new programs Investment Current Revenue Estimates Approved Agency Budget Estimate of Borrowing TREASURY SYSTEM BUDGET AGENCY C and MANAGEMENT O BUDGET Public M ACCOUNTING EXECUTION M Debt & E Interest FISCAL R CENTRAL C REPORTING Report on Payments I BANK A & Receipts to TSA (TSA) L Ac.Receiv. Ac. Payable BUDGET MANAGEMENT B & FISCAL REPORTING A Treasury General Ledger N Reports K on S Revenue CASH CASH Cash Forecasts; Allocations Receipts MANAGEMENT MANAGEMENT Payment Instructions to Central Bank DEBT MANAGEMENT DEBT MANAGEMENT Domestic Foreign TAXATION CUSTOMS REVENUE ADMINISTRATION POSITION PAYROLL & PERSONNEL CIVIL SERVICE MANAGEMENT PENSIONS MANAGEMENT MANAGEMENT AUDITING AUDITING Sample Transactions from Government Systems to Auditing MACRO ECONOMIC FORECASTING Vendors Feedback from Audit Tax Payers Source – Treasury reference model – Ali Hashim Bill Allan

What Constitutes a Good (Effective/Efficient) System? • Ability to: • Collect accurate, timely, complete, reliable, consistent information • Provide adequate management reporting • Support government-wide and agency policy decisions • Support budget preparation and execution • Facilitate financial statement preparation • Provide information for central agency budgeting, analysis and government-wide reporting • Provide complete audit trail to facilitate audits Source: Core Financial System Requirement. JFMIP-SR-02-01. Joint Financial Management Improvement Program. Washington, D.C., November 2001. Deepak T. Bhatia, ISG

Aspects to Consider for IFMS Implementation Formal project planning including business cases Institutional capacity and incentive scheme Top level sponsorship IT architecture Local technical support Governance Risk Management Agreement/Collaboration within donor organisations, especially related to IT investment Financial records management policies ICT procurement Inter-agency co-ordination Management of changes Institutional Organisational IT Source: Informatics Advisory Service Deepak T. Bhatia, ISG

Government Commitment IFMS implementations are complex undertakings and may require major institutional changes in the following areas: Legal Framework Business Processes Financial Flows Organisational and IT Strategies Governance The above changes are very difficult to implement without government commitment Deepak T. Bhatia, ISG

Government Sponsorship Is: • Necessary to engage various ministries in the common program • Indispensable to gain acceptance of policy reforms such as data sharing • Critical to overcome implementation deadlocks • Essential to define tasks, including: • Define vision, goals, policies and objectives • Allocate roles and responsibilities • Commit stakeholders to high-level workplan • Mobilize necessary resources • Legitimize monitoring and evaluation process Resulting in clear and agreed-upon results Deepak T. Bhatia, ISG

Institutional Capacity Skills/Incentives • Assess capacity gaps (in skills, mindsets, performance, policy, resources, technology) by reference to goals and objectives, including: • Redesign business processes leveraged by technology • Design and implement training plan • Rationalize staffing, compensation, and severance packages • Question long-term in-house capacity to engineer, operate and maintain systems • Engage private sector for development and operation of new systems • Manage external service provision through service level agreements • Ensure integration between project and regular staff Deepak T. Bhatia, ISG

Inter-agency Coordination • Implementing IFMIS is a complex undertaking • Very often skills are not available in single agency • Will require resources both within government as well as external to government • Increasingly implementation partners are being used to help buttress weak capacity - either for project management, procurement planning, software implementation – encourage partnerships between international package suppliers and local support to ensure post-implementation support in country Deepak T. Bhatia, ISG

Project Management Aspects • Establish program office to coordinate project • Release project managers from regular responsibilities • Bring in external consulting support for project management • Require professional project management tools and techniques • Measure, monitor, and publicize progress • Conduct periodic independent technical audits • Carefully manage public relations and inter-agency politics Deepak T. Bhatia, ISG

Donor Coordination Aspects • Often overlapping initiatives in same business area at different levels of government • Ensure that the processes and systems offered are compatible, working towards the same goal, and, given limited resources, that activities are correctly sequenced • This will also require fine-tuning as the project progresses, and the organizational goals shift • Options: • Multi-donor trust fund which can be used to support diagnostic work, capacity building, and allow for dialogue • Each Donor covers a particular component, hardware, software, communications, change management, training, etc. • Each Donor covers a level of government, or group of states/regions or districts in the same development stage Deepak T. Bhatia, ISG

IT Architecture – Develop: Put in place management structure and systems to manage operation of all the above architectures • Information architecture to rationalize information needs and flows • Data architecture to enable sharing, access, management, security, and integrity of data • System architecture to computerize and support business processes • Technology architecture to support computerized processes, information flows, and data management • Networking architecture to enable information flows across space and institutional boundaries • Security architecture to ensure protection, integrity, and confidentiality of data Deepak T. Bhatia, ISG

Financial Records Management • Creation and management of authentic, reliable, and secure financial records are critical actions (paper/electronic) • Meet the financial management needs of the government, including: Development and implementation of economic and fiscal policy to: Provide the audit trail and support the audit function Enable government meet its legal obligations for financial management Protect the integrity of key records and the information they contain Ensure the timely disposal of obsolete records Without effective and efficient records management in place, the desired impact of financial and governance reforms is often minimal at best Deepak T. Bhatia, ISG

Critical Issues for Financial Records Management • The need to recognize the importance of protecting the authenticity and integrity of financial records • The need for effective legislative and organizational frameworks for financial management and financial records care • The importance of developing standards for financial records management and financial records care • The central role of education and training for successful records care • The need to raise awareness across government of the value of all records, including financial records Source: IRMT discussion on evidence-based governance Deepak T. Bhatia, ISG

Change Management Objectives • Redesign budget, revenue, and expenditure processes • Redefine organizational, job, and skill requirements • Minimize resource requirements to implement IFMS • Institutionalize service, efficiency mindset • Gain staff commitment and feedback on redesigned processes • Help line ministries implement process improvements • Create the foundation for a Government-wide communications strategy Deepak T. Bhatia, ISG

FMIS Off-The-Shelf Solutions FMIS Off-The-Shelf Solutions Deepak T. Bhatia, ISG

SAP Solutions for Government Financial Management mySAP Public Sector Offers: • Tax and revenue management • Registration, Tax Calculation, Billing, Payment/Collection, Taxpayer/Debtor Accounting & Services, Revenue Accounting • Electronic services • Portals & Marketplaces, Internet Services, Constituent Relationship Management, Case Management, e-Procurement, Security & Authentication • Records management • Record/Case & Workflow Definition, Workflow Execution, Workflow Monitoring, Records Life cycle Management, Information Retrieval • Funds management, accounting and controlling • Strategic Organization Management, Decision Support & Data Warehousing, Program Formulation & Financing Program • Human resource management and payroll • Organization & Police Management, Recruitment, Personnel Administration • Budget preparation • Budget Execution,, Cash Management & Treasury, Financial Accounting, Managerial Accounting, Grants Management, Travel Management • Operations Management • Program/Project Management, Cash Management & Treasury, Financial Accounting, Managerial Accounting, Grants Management, Travel Management • Knowledge Management • Knowledge Library, Knowledge Development, Skill Development, e-Learning, Knowledge Assessment Deepak T. Bhatia, ISG

SAP Public Services • Functions Supported by SAP: • Accounting: Commitment and financial, asset accounting, cost accounting, accrual and cash based financial accounting • Budget planning, preparation, allocation, management, control & execution • Cash: management, flow projection (financial instruments & budget execution), liquidity management, payments, and forecasting • Cost and project accounting, • Financial Accounting including AR, AP, Asset Accounting • FinancialManagement: Management of loans, funds, debt, money and capital markets, public debt, procurement, revenue, and risk- reporting and forecasting • Human resources, procurement and materials management • Management and accounting of state assets and liabilities • Managementandcontrol: budget, procurement, revenue management, internal audit • Management of budget bank accounts, allocation of available resources in bank deposits and government securities • Public debt management • Reporting: Business Warehouse Deepak T. Bhatia, ISG

SAP Public Services • Presence: • Europe • Federal Ministry of Finance Germany, Federal Ministry of Finance Austria, Ministry of Finance Macedonia, Ministry of Finance Montenegro, Ministry of Finance Netherlands, Ministry of Finance Bulgaria, Government of Switzerland, Ministry of Finance Latvia, Ministry of Finance City & State of Hamburg, Ministry of Finance Estonia, Ministry of Finance Croatia, • Americas • State of California, State of Arkansas, State of Pennsylvania, Florida Department of Revenue, US Army, US Navy, Guanjuato State Government Mexico, Federal Government Canada, City of Tacoma • Africa • Zimbabwe Ministry of Finance • Asia Pacific • Queensland Treasury Australia, Department of Employment Australia Deepak T. Bhatia, ISG

FreeBalance eFinancials • FreeBalance Modules: • System Setup and Chart of Accounts • Budget Management Cycle • Fiscal Reporting • Procurement and Asset Management Cycle • Commitment and Obligation Cycle • Accounts Payable Cycle • Accounts Receivable Cycle Deepak T. Bhatia, ISG

FreeBalance eFinancials • Chart of Accounts: • Organization Profile – Initializing eFinancials • Defining the Chart of Accounts • System Security • System Tables • System Parameters • Audit trails • Fiscal Reporting: • Reporting for Financial Management • Corporate Reporting • Remote Access to Financial Information • Accounts Payable Cycle: • Invoice Processing and Invoice Approval • Payment Process and Approval of Payments • Check Issuance • Bank Reconciliation • Receipt of Funds – Non Accounts Receivable • Budget Management Cycle: • Apportionments – Distribution of Appropriations • Allotments – Distribution of funds to Spending Units • Budget Transfers and Budget Warrants • Loading Budgets – Interfaces • Procurement and Asset Management Cycle: • Requisitioning Goods and Services • Purchase Orders and Service Contracts • Receipt of Goods • Asset Management • Procurement Reporting • Commitment an Obligation Cycle: • Commitments and Obligations - Link to Procurement • Commitments and Obligations from other sources • Commitments and Obligations Reporting Deepak T. Bhatia, ISG

FreeBalance eFinancials • Accounts Receivable: • Billing Activity • Tax Revenues • Receiving Moneys – Cash Receipts • Outstanding Receivables and Ageing • Revenue Documents – Forms Printing • Bank Deposits Features • Fully configured production system • Chart Of Accounts based on IMF classification structure and World Bank Treasury Reference Model (TRM) • Demonstrate Treasury Functions’ key business cycles • Present capabilities of eFinancials to enhance and facilitate business processes and Treasury activities: • Real time – on-line access to data • Integrated data flow between and within system modules • Drill-down to detail and source information within functions • Defaults and navigation functions supporting ease of use Presence: Department of Defense USA, Kosovo, Gov of California, East Timor, Jamaica, US Department of State, Government of Canada State Government of New York, Atomic Energy Control Board, US Department of Education, Government of Ontario Canada, Department of the Army – USA, US Department of Transportation, Afghanistan Deepak T. Bhatia, ISG

Oracle Financials • Treasury Solution Overview: • Chart of Accounts Design • Business Flows • Budget Preparation • Budget Execution • Commitment Management • Payments Management • Receipts Management • Cash Management • Fixed Assets Management • Combined Basis Accounting • Treasury Solution Security Deepak T. Bhatia, ISG

Oracle Financials • Fixed Asset Management: Asset Registration • Registration of Purchased asset • Registration of Completed WIP from a capital project • Registration of Leased Asset Asset Transfer • Transfer of Assets • Reclassification of Assets Asset Depreciation • Straight Line Method • Written Down Value Method Asset Revaluation • Historical Cost • Revaluation Due to Capital Repairs Asset Retirement • Disposing of Assets • Sale of Assets Chart of Accounts: • Fund Classification - Fund, Source of Fund • Organization Classification - Organization, Location • Economic Classification - Account • Program & Project Classification – Program / Project • Functional Classification - Organization Fiscal Reports: • Several standard reports in all functional areas. In addition, the Financial Statement Generator (FSG) in General Ledger is a powerful, user-friendly tool which helps users generate tailor made reports Combined Basis Account: • Accrual Accounting - Recognition of transactions when they occur. • Cash Accounting - Recognition of transactions when cash is received or paid • Modified Accrual Accounting - Recognition of expense transaction on accrual basis and Expensing of fixed assets in year of purchase. Deepak T. Bhatia, ISG

Oracle Financials Cash Management: • Import and reconcile bank statements automatically • Generates automated government wide cash forecasts • Do online what if analysis • Generates automated reconciliation entries to sub-ledgers Mapping Treasury Solutions: • Two sets of Books-Accrual and Cash • Primary – Accrual Method to manage • Secondary – Cash method to report • Combined basis functionality in Oracle Payables and Oracle Public Sector Financials • Budgetary Control and Encumbrance Accounting with Accrual • Facility to do full accrual or modified accrual accounting. Budgetary Preparation: • Define constraints in PSB • Generate Estimates using Worksheets in PSB. • Modify worksheets • Use PSB workflow and review groups in PSB. • Use parameters sets in PSB. • Freeze Budget Worksheet to prevent unauthorized changes • Use Budget worksheets and stage sets of PSB • Use COA and the cross validation rules in Oracle GL. • Run standard Reports and FSG • Online Inquiry in PSB and GL Deepak T. Bhatia, ISG

Microsoft AXAPTA Financial • MS AXAPTA - Financial Management • consists of several individually • packaged offerings: • Microsoft Axapta Financials I and II • Electronic Banking • Fixed Assets GENERAL LEDGER • Flexible setup of accounting periods • Fast and reliable year-end procedure • Multiple budgets • Advanced options for transaction entry • Journal approval procedures • Validation prior to posting • Automatic allocation according to predefined setup of accounts, dimensions and percentages • Extensive tax module for different types of tax calculation and reporting BANK MANAGEMENT • Reconcile bank accounts • Setup of checks • Monitoring deposits, payments, and bank balances • Electronic import of bank account statements available for some countries ACCOUNTS PAYABLE • Export and import formats for electronic payments • Bridging accounts • Promissory note handling • Advanced payment schedules • Payment proposals • Option to match invoices to physical deliveries • Option for separate handling of approved and unapproved invoices Deepak T. Bhatia, ISG

Microsoft AXAPTA Financial • MS AXAPTA - Financial Management • consists of several individually • packaged offerings: • Microsoft Axapta Financials I and II • Electronic Banking • Fixed Assets ACCOUNTS RECEIVABLE • Credit assessment • Flexible terms of payment and cash discounts • Advanced payment schedules • Prepayments • Draft handling (bill of exchange) • Payment proposal • Free text invoicing (non-stock invoicing) • Extended options for interest calculation • Options to setup unlimited number of different collection procedures • Export and import formats for electronic payments • Multiple currency handling and exchange rate adjustment GLOBAL FUNCTIONALITIES • Multi-language capabilities • Comprehensive local market functionality • Multi-currency and secondary currency handling • Currency Converter§ Euro conversion • Exchange rate adjustment handling • Intrastat and EU sales list • Country-specific bank formats for electronic payments and import of bank account statements EASY TO USE • Intuitive screen layout and structure • User-adjustable menus, entry forms and reports • Advanced sorting and filter options • Built-in user Help including an integrated manual • Option to e-mail and fax directly from Microsoft Axapta Deepak T. Bhatia, ISG

Microsoft AXAPTA Financial MS AXAPTA - Financial Management consists of several individually packaged offerings: • Microsoft Axapta Financials I and II • Electronic Banking • Fixed Assets • DATA ANALYSIS • Powerful financial dimensions for data analysis • Flexible report generator • XBRL (Extensible Business Reporting Language) • Drill to detail and drill around capabilities RELIABILITY AND SECURITY • Strong audit trail capabilities • System controls and transaction validations • Transaction approval • Extended options for setup of access rights AXAPTA Financial II ADVANCED GENERAL LEDGER • Inter-company accounting • Global consolidations • Account allocations based on predefined criteria for actual or budget amounts • Cash-flow forecasting and currency requirement calculation AXAPTA Fixed Assets ASSET MANAGEMENT • Manages the full life cycle from acquisition, depreciation to disposition • Maintains asset status information • Improves control over fixed assets to drive accuracy and timeliness in your accounting results • Supports five depreciation methods (straight line, declining balance, factor, manual percentage and consumption) • Forecasts using fixed assets budgets Deepak T. Bhatia, ISG

Microsoft NAVISION Financial MS Navision Financial Modules: • Microsoft Business Solutions–Navision Cash Manager • Microsoft Business Solutions–Navision Financial Management • Microsoft Business Solutions–Navision Fixed Assets • Microsoft Business Solutions–Navision General Ledger • Microsoft Business Solutions–Navision Multicurrency • Microsoft Business Solutions–Navision User Portal BANK ACCOUNT MANAGEMENT: Unlimited number of bank accounts, modify and delete accounts , transfer between accounts independetly of currency, G/L account is automatically updated when you post bank transactions, CHECK WRITING: Automate and control check-writing process, generate printed checks with unique number series, track check numbers and void checks, write checks in more than one currency BANK RECONCILIATION: Reconcile all your bank accounts with the account statements issued by bank, apply transactions from bank statement to bank account ledger entries, post additional transactions recorded only by the bank and not yet by the program, deal with errors on your bank statement BANK STATISTICS: Print company bank account statistics reports, View company bank account statistics Deepak T. Bhatia, ISG

Microsoft NAVISION Financial • FlowFields : • Continually updates and recalculates contents of a flowfield online, data can be drilled down from all flowfield amounts to view which entries were included in the calculation of the amount. • Specify which information should be displayed by using filters on flowfields and tables: • Allows for setting a table filter on one or more fields in a table. Can use filters on flowfields to limit which entries are used in calculating the amounts or quantities presented in a flowfield • Chart of Accounts: • Balances and net changes for all G/L accounts online and filter by date, department dimension, project dimension, account and numerous other criteria. Drill down to the detail level • Arrange G/L accounts into a hierarchical structure with posting and total accounts • Defining totaling formulas to gather totals from more than one account • New G/L accounts can be added at any time and changes can be made to existing accounts simply by altering the account card. • Attribute a range of characteristics, posting criteria and business rules to each individual account. For example, assign a default department and project code to an individual account and define rules for how these codes are to be used in conjunction with that account number • View debit and credit information for accounts, periods, department or project, and compare this with budgeted balances. • Flexible Accounting Periods: • Define any starting date for the fiscal year and specify own accounting periods with an unlimited number of periods of any duration: • Use filters to view and print financial data across periods, regardless of starting and closing dates • Transfer income statement balances to balance sheet using the Close Income Statement batch job: • Closing entries can be created per business unit, department code and/or project code or per G/L account, and are retained by the program in a specified journal for scrutiny before posting. • Closing entries are sorted and marked, making them easy to view and filter on. • The batch job can be carried out as many times as necessary so you can make corrections to your income statement even after transferring balances to your balance sheet. Deepak T. Bhatia, ISG

Microsoft NAVISION Financial • Foreign Trade and Currency Management: • Maintain general ledger in two different currencies, view balances online and print financial reports for two currencies simultaneously • Invoice a customer or a vendor in an unlimited number of currencies • Manage entire customer and vendor accounts in a foreign currency • Set up relational exchange rates in the format applicable in your country • Traceability: • Transactions leave a complete audit trail, so even complex business transactions become transparent • G/L registers record every entry made and where and when it originated • View all G/L entries for all accounts or specific accounts from your Chart of Accounts, account cards • Navigate feature locates all entries posted with the same document number and posting date • Chronological list of all changes to any field in any table and see who made the changes • General Journals: • Use general journals to post to G/L accounts, bank accounts, customer accounts • Set up and unlimited number of journal batches, define rules for each individual batch, for example, you can assign a default balancing account and define rules for VAT calculation per journal batch • Force documents to balance for each document type and document number before a journal can be posted • Print a test report that highlights any corrections that need to be made before posting the journal. • present your journals as you please. Using the Show/Hide function, you can select which fields are shown in the journal window • Use recurring journals for frequent transactions, whether they are of fixed or variable amounts. You can also set an expiry date for when a series of recurring posts should end Deepak T. Bhatia, ISG

Microsoft NAVISION Financial Security and Business Rules: • Use mandatory filters on table data to ensure that certain roles only have permission to access the specified data • Automate procedures and policies in an organization by using business rules. Influence how your accounting is conducted and increase the consistency of data entry, and thereby data output • Business rules can be applied to individual accounts, account types, dimensions, VAT accounting and many other areas of Navision Account Schedules: • Create an unlimited number of unique, company-specific reports based on G/L data, budget data and dimensions data • Save reports and scrutinize them online using the drill-down feature • Specify rows using any accounts or account totals from your chart of accounts • Specify an unlimited number of columns to compare G/L figures with budget figures using the Net Change, Formula, and Balance at Date column types • Use the Comparison Period Formula to compare figures for current periods and previous periods • Select budget and date filters, and choose whether to show amounts in additional reporting currency Budgets: • Create and maintain budgets in easily comprehendible matrix form • Investigate budgetary performance using account schedules and specific budget reports • Allocate budgets on total accounts • Create very specific ‘sub-budgets’ within an overall budget • Monitor how individual units are performing and compare performance with other units, previous periods and budgeted amounts using dimensions on budget entries Deepak T. Bhatia, ISG

Microsoft Great-Plains Financial • Great Plains - Analytical Accounting • Transaction Dimensions:Classify, report, and analyze financial transactions • Transaction Dimension Codes: Attach user-defined transaction dimension codes to ledger transactions • Multi-Level reporting: Allow multi-level reporting • Wizard-Driven Inquiries: Generate multi-level reports • Valid Code Combinations: Define valid transaction dimension code combinations to prevent invalid combinations being entered for a transaction. • Integration: Analyze transactions across entire organization Great Plains - Bank Reconciliation • Easy Transaction Management: Control the way transactions are handled during reconciliation processes • Efficient Transaction Entry: Focus on the information with a customizable transaction view • Summary Information: Speed up reconciliations with on-screen summary information • Transaction Tracking: Track simple or complex transactions • Easy and Efficient Transaction Review: Review transactions by setting reconciliation ranges, sorting transactions by type or date, and marking single transactions • Automatic Adjustments: Reconcile totals with automatic file update and General Ledger postings • Exception Handling: Handle cleared amount differences with drill-downs for more information. • Simultaneous Reconciliations: Manage multiple reconciles out of separate checkbooks without having to complete each one before beginning the next • Reporting: Create, view, and post a suite of standard reports • Multicurrency Support: Enter, view, and reconcile transactions for checkbooks in any currency, Deepak T. Bhatia, ISG

Microsoft Great-Plains Financial Great Plains - Cash Flow and Collections Management* Cash Flow • Customize the selection of data to include calculations and manage cash flow • Control day-to-day operations with clear views of daily inflows and outflows • Create up to three different forecasts based on many different scenarios • View cash flow for the current or coming months, scroll from month to month, or check specific dates using the graphical calendar view • Display detailed listings of all source documents making up the net change to cash flow in a given day, and drill down for greater detail • Show cash flow trends clearly with weekly and monthly calendar reports, including base summaries, source-based summaries, source-based details, transactions by category, and more Collections Management • Build and store queries to target and view customers that meet a user-defined criteria, such as balance, notes, customer, credit manager, and commitment status • Automate printing and faxing of collections letters, e-mails, statements, and invoices to customers with the push of a button, customized by customer and days overdue • Set automatic follow-up actions and reminder dates with the intuitive Collections Task List to view completed and uncompleted tasks, as well as completed or uncompleted payment promises by customers * Microsoft Business Solutions Financial Management components are sold separately and may not be available on all versions of Microsoft Business Solutions–Great Plains. Deepak T. Bhatia, ISG

Microsoft Great-Plains Financial Great Plains - Payables Management Extensive Drill-Down: Cross-module drill-down capabilities give you the ability to locate the exact details you need. Comprehensive Vendor Information: Streamline your vendor information with vendor categories for consistent record maintenance and comprehensive data, including addresses, shipping methods, default purchase accounts, and user-defined information. Installment Management: Automate vendor installment payments by creating schedules, calculating interest, amortizing amounts, and forecasting the impact of variable interest rates, payment amounts, and installment changes. Expenditure Control: Manage expenditures with full control over check runs and tracking of after-the-fact payments Automatic Posting: Automate posting for each vendor to designated General Ledger accounts for recurring transactions Receivables Management: View un posted, posted, and historical transactions, plus complete customer, period sales, yearly sales, payment history, and receivables summary information, Utilize user-defined fields to track customer information; Automate customer installment payments by schedules, calculating interest, amortizing amounts, and forecasting the impact of variable interest rates, payment amounts, and installment changes Customer/Vendor Consolidations: Define relationships with customers who are also vendors and apply open debit and credit documents against each other to consolidate current balances in both Payables and Receivables Management. Deepak T. Bhatia, ISG

Microsoft Great-Plains Financial Great Plains - E-Banking Electronic Funds Transfer • Post sales batches with associated payments and automatically generate an electronic file for transfer to your bank • Securely transfer payments to vendors and employees or across accounts • Conform to U.S. bank-industry EFT standards with support for ACH format and most Canadian formats Electronic Bank Reconciliation • Automate reconciliation of transactions and adjustments with downloaded bank data • Manage exceptions for transactions that aren't in your records • Easily reconcile transactions and adjustments with electronic account information • Communicate with your bank over any communications link with transaction downloading for later viewing and auditing Safe Pay • Add Positive Pay functionality, including daily exporting of checks for comparison by the bank when those checks are presented for payment Lockbox Processing • Easily process and match transactions from the lockbox file provided by your bank • Automatically import and apply customer payment information • Easily set up multiple lockbox profiles and reuse them with easy mapping of key fields in the lockbox file • Automate and connect business and banking processes * Microsoft Business Solutions Financial Management components are sold separately and may not be available on all versions of Microsoft Business Solutions–Great Plains. Deepak T. Bhatia, ISG

Microsoft Great-Plains Financial Great Plains - E-Expense Automated Expense Management * Online Expense Reporting: • Enable employees to submit expense reports online • Pre-populate expense reports with existing employee information • Automatically submit expenses against pre-configured or custom cost centers mapped to General Ledger accounts • Capture out-of-pocket expenses instantly with Palm Operating System-based devices • Deploy over the Internet to minimize IT resources • View, sort, and filter a wide range of best practices reports, or custom-configure own reports • View and filter vendor statistics Offline: Anytime, Anywhere Expense Reporting • Enable complex itemization of expenses • Ensure efficient processing and timely reimbursement Receipt Imaging: Electronic Receipt Imaging Service • Submit, review, and store expense receipts electronically • Eliminate costs for managing and storing paper receipts * e-Expense components are sold separately and may not be available on all versions of Microsoft Business Solutions–Great Plains®. Deepak T. Bhatia, ISG

Microsoft Great-Plains Financial Great Plains - Fixed Asset Management Easy Asset Setup: • Create and manage assets books for each company including corporate, federal tax, alternative minimum tax Asset Tracking: • Track comprehensive information about assets Asset Classes: • Define asset classes to set defaults for a group of assets, as well as set characteristics such as depreciation or asset retirement for multiple assets at one time. Averaging Conventions: • Utilize a variety of averaging conventions for managing assets Depreciation Management: • Use depreciation methods to forecast depreciation expenses for budgetary work Asset Review: • View and analyze information about assets including account, lease, insurance, or user data, or drill down to the originating transaction Asset Manipulation: • Manage assets with powerful tools for adding or changing assets such as retirement, transferals, and making mass changes to multiple assets Reporting Flexibility: • Share information with a wide variety of standard reports Property Management: • Manage physical inventory and asset movement with location IDs providing reconciliation of an asset's actual physical location to the recorded physical location Integration: • Update the General Ledger automatically with Fixed Asset Management information Deepak T. Bhatia, ISG

Microsoft Great-Plains Financial Great Plains - General Ledger * General Ledger • Design an accounting structure to suit business or create unique structures for each company • Manage accounts and transactions with flexibility using user-defined accounting structures, definable fiscal periods, prior-year adjustments, batch posting, cross-module auditing, and more. • Create default budget templates complete with accounts, descriptions, and default amounts • Improve advanced financial analysis capabilities by modifying existing General Ledger financial reports or creating new reports • Create comprehensive reports consolidating information from multiple companies Multidimensional Analysis • Define any type of grouping including departments, product lines, and regions, and set up unlimited analysis codes to analyze any facet of business Account Level Security • Filter account views based on access granted for accounts Inter Company • Manage single-use or recurring transactions between companies * Microsoft Business Solutions for Financial Management components are sold separately. Multidimensional Analysis, Account Level Security, and Intercompany are not available with Microsoft Business Solutions–Great Plains Standard. Deepak T. Bhatia, ISG

Microsoft Great-Plains Financial Great Plains - Multicurrency Management • Exchange Rate Tracking:Track the date and time of exchange rates used in multicurrency transactions • Standards Support:Manage multicurrency transactions to international standards with adherence to FASB-52 and BASDA standards • Currency Rate Definition:Define an unlimited number of currencies and exchange rates per currency or set specific rates as needed • Customer-Specific Default:Set default currency rates for specific customers, vendors, or accounts • Realized Gains and Losses:Automatically track and record realized gains and losses for sales and purchases over the life of transactions due to the effect of currency changes • Multicurrency Reporting:Show multicurrency activity in financial reports or translate existing reports into multiple currencies to share information with associates around the world • Multicurrency Inquiry:Instant access with multicurrency transactions Great Plains - Standard • Financial Management: General Ledger, Accounts Payable, Accounts Receivable, Cash Flow Management, Bank Reconciliation, and Electronic Funds • Supply Chain Management: Inventory Control, Invoicing, Sales Order Processing, and Bill of Materials • Human Resource Management: Direct Deposit, Payroll, and Human Resources capabilities for up to 500 employees • Manufacturing Planning: Materials Requirements Planning, Manufacturing Order Processing, and Manufacturing Bill of Materials • Project Management: Project Accounting and PS Time and Expense • Reporting: Crystal Reports® 9.0 Professional Deepak T. Bhatia, ISG

IBM – ERP Financial Management The financial management solution from IBM is designed to: • Standardize information, processes and applications across all departments • Enable communication among suppliers, vendors and partners—even across disparate systems. • Integrate people, applications and data into the same workflow and data flow • Enable multi-channel input and access to financial information (phone, Web, desktop). • Streamline accounting processes enterprise-wide • Analyze financial information from across organization in order to make sound decisions • Enable communication among suppliers, vendors and partners, even across disparate systems • Identify and implement a tailored financial solution • Streamline financial processes • Enabling true enterprise-wide view of financial records on standard platform to speed up financial reporting • Integrating fragmented operations and eliminating redundant processes • Provide a reliable, secure infrastructure that's easy to manage • Allow for future scalability and flexibility by using standards-based products • Simplify database management by consolidating all financial information • Integrate disparate systems, platforms and processes • Leverage legacy systems as part of a customized financial roll out By integrating with other ERP application, IBM solutions would addresses: • Accounts payable, Accounts receivable, Cost accounting, General ledger, Financial statements, Invoicing Deepak T. Bhatia, ISG

PeopleSoft - Financial Management PeopleSoft Financial Management Solutions • PeopleSoft CFO Portal • PeopleSoft Financials • PeopleSoft Business Planning and Budgeting • PeopleSoft Treasury • PeopleSoft Enterprise Performance Management • PeopleSoft Enterprise Service Automation • PeopleSoft Accelerated Financials • PeopleSoft Accelerated Enterprise Service Automation PeopleSoft Financial Management offers: • Streamline closing processes, get updated view of organization’s financial health • Consolidate accounts across disjoint systems, automate currency translation and valuation • Avoid costly budget overruns with real-time control over actual and planned expenditures • Track total financial commitments and revenue against budgets • Set key performance indicators at multiple levels, measure progress, and adjust plans accordingly. Deepak T. Bhatia, ISG

PeopleSoft - Financial Management PeopleSoft Financial Management offers: • Eliminate reporting overload by delivering real-time performance indicators and alerts • Compare, and monitor projects across the enterprise to focus on those most aligned with business objectives • Drill down to source data from a single point,and eliminate IT involvement for ad hoc reporting. • Collect and aggregate financial data from any source • Use pre-built data models to enable multidimensional reporting and analysis • Leverage hundreds of predefined profitability metrics, such as revenue per order, gross margin, net income/loss, pricing variance, and gross margin per unit. • Use pre-built data models to enable identify trends, perform comparisons, and highlight opportunities using financial metrics such as debt-to-equity ratio, debt-to-assets ratio, working capital-to-assets ratio, receivables and payables turnover, gross margin percent, return on equity, and return on invested capital. Deepak T. Bhatia, ISG

IFMS IMPLEMENTATION ASPECTS FOR CONSIDERATION