IFMIS ,GoMP .

1. IFMIS ,GoMP. -a first look.

2. IFMIS is an ICT application Is an integrated web-based system for all core public finance functions. • Planning • budget preparation • execution • accounting • reporting, • Monitoring Key feature is integration of modules through a common, single, reliable platform database .

3. WHY IFMIS ? • Different departments maintain independent decentralized databases. Disparate IT systems. • Multiplicity of data entry. • Data inconsistency. • Limited accounting information availability. • Rigid Reporting system. • No transparency. Delays .

5. IFMIS Sub-System Details FMIS HRMIS PMIS

6. What IFMIS can do ? • Enables one time data capture of budget sanction, allocation ;payment and receipts, revenues, human resources : reducing manual work, data redundancy and reconciliation issues – increasing data accuracy and timeliness. • Double entry system, supports migration to accrual accounting. • Seamless Integration of various processes ensuring final audited accounting data can be drilled down to lowest level / point of capture. • Implies online submission of treasury accounts-E-vouchers/ECS. • AG interface to facilitate consolidation.

7. Pension Deposits HRMS - Payroll Invoice Creation Purchase and Inventory Asset Addition & Maintenance AG Office Budget Project Receipt and Disbursement GL Integration with Sub-Ledgers Debt & Investment General Ledger Cash Accrual

8. What IFMIS can do? • Centralised Processing. • Reporting against Budgets  Both DDO-wise and DDG-wise Reporting. Expenditure tracking becomes easy. • Enables system for cash control and management. • Budgets formulation, resource management, and program administration are based on real time data. • transparency and accountability increases. Reduces political discretion ; deterrent to corruption and fraud

9. COMPONENTS OF A TYPICAL IFMIS

10. General Ledger –is the Heart.. • The General Ledger constitutes the central “books” of any IFMIS. Every transaction entered into the system posts to the General Ledger, starting with the allocation of budget funds through to the commitments to payment for goods and services.

11. General Ledger. • All transactions simultaneously post to the General Ledger and to all appropriate sub-ledgers/modules following the rules imposed by a standardized chart of accounts. • These records remain as a permanent track of the history of all financial transactions, and represent the source from which all reports and financial statements are processed.

12. What IFMIS involves ? • Centralisation of all Masters – Account Code Directory, Grants, Object Heads and Category and their relationships, Controller Codes, Department Codes,treasury codes, DDO Codes ,employee code, GPF number. • One time data capture: reducing manual work, data redundancy and reconciliation issues – increasing data accuracy and timeliness. • Classification and budget allotments would be sealed at MoF level. • Rejection of erroneous and invalid data at the lowest level. • ECS.

13. Role of AG in IFMIS

14. Role of AG in IFMIS

15. DPF – GPF treatment in IFMIS • Mapping of GPF Number with unique employee code will be maintained in IFMIS System • DPF and GPF balance on pre-determined cut-off date will be migrated to IFMIS System • DPF to GPF conversion – new GPF number will be generated • Balance of DPF will migrated to GPF with the help of T entry • GPF and DPF Interest will be calculated by IFMIS System

16. Short term issues : • Changes in the Chart Of Accounts structure. Chart Of Accounts changes and Standardization: Where DDO’s are executing projects Budget preparation from DDO to BCO will include project code Budget allocations from BCO to DDO will include project code . Additional account heads (P,R)for accrual accounting?

17. Medium Term Ensuring capture of Off –Budget transactions. Integrating Municipal and Panchayat accounts. Short Term: Changes in manuals. Detecting and giving feedback for filling in the gaps in System Design. Validation of Budgetary classifications. Other Challenges before A&E Office.

18. Consolidate Data of all treasuries and works departments Treasury Financial Information Updated Accounts Out of Treasury transactions Verify, Update and Finalize Updated Accounts Migration Modalities –Continue to Upload in VLC initially ? IFMIS AG – Existing System Request for change Works Department Financial Information Monthly Statement in electronic format IFMIS - Reports Monthly and Annual Finalized data in electronic format View Monthly and Annual Finalized Data

19. Progressive Obsolescence ? NO need for Consolidation Verify, Update and Finalize Out of Treasury transactions ALL Disbursement Financial Information Import final account information from IFMIS, if required INTEGRATED IFMIS APPLICATION AG – Existing System Disbursement and Works AG Office ALL Works Department Financial Information IFMIS - Reports View Monthly and Annual Finalized Data

20. Stages for Migration to Accrual Accounting

21. Proposed Chart of Account under Accrual Method

22. Wonderful vision of a totally integrated system….but.. • High Risks (GIGO) • Uncertainity. • Data security issues for internal system ,users and for external interfaces . • Data entered once, used many times • Common data model, data naming, data dictionary • Shared business rules • Sharing of code • Derived values in one module used by other modules

23. Long Term. There would be an eventual elimination of our functions and responsibilities once IFMIS takes off- • Correction • Consolidation • Reconciliation of Accounts • Maintenance of Entitlement accounts. would become redundant functions.

24. “The future ain’t what it used to be” -Yogi Berra. Thank you!!