Republic of Albania Ministry of Finance, Treasury System AMoFTS

1. Republic of Albania Ministry of Finance, Treasury System AMoFTS

2. Albania MoF Treasury System • Ministry of Finance of Albania is implementing an integrated Public Finance Management System from 2001- end of June 2006. • We are asking for an extension based on a lot of key issues delays the process • The political changes • Network Infrastructure • Project implementation team dedicated not full time for the project • Recruitment and sustainable process of IT staff

3. Treasury development process: • (based on Treasury Reference Model) • Building the IT department, Preparing the ToR’s for Integrated Treasury System • 2nd Phase Design and implementation of Albanian Treasury System • Software parameterization & customization • Hardware generalization • Countrywide network infrastructure Evolution of Treasury Systems

4. Albanian Project implementation group • Steering committee • Deputy Minister, General Secretary, • General Budget Director, • General Treasury Director, • Budget Directors by budget areas, • Treasury Director, • Accounting Director, • Debt Director, • Macroeconomic Director, • WB PIU director, WB representative. • Project Manager • Technical Project Manager • Coordinators & Key users group • Trainers Group

5. System Functionality  Functionality                               Common Implementation Options   1-  Macroeconomic forecasting         LDS    2-  Budget Preparation               LDS / COTS    3-  Core Treasury System             COTS                             + General Ledger                                                 + Accounts Payable           Interface with banking system (TSA)         + Purchasing / Commitment     Interface with procurement agency         + Accounts Receivable Interface with revenue collection         + Cash / Fund Management Interface with banking system (TSA)         + Financial reports   + Org. Structure / Workflow Mgmt. + Asset / Inventory Management     4- Operational support for SUs Interface for spending units (LDS)   5-  Internal debt management     LDS   6-  External debt and aid mgmt.     Interface with DMFAS   7-  Personnel database (HR mgmt) LDS / COTS 8- Payroll calculations   LDS  9- Support for Auditing                       Locally developed reports 10- Management Information System COTS                 LDS : Locally Developed Software COTS: Commercial Off-The-Shelf Software

6. AMoFTS Business Flows The AMoFTS functional processes are classified as: • Budgeting • Preparation of Estimates, Consolidation and Approval • Appropriation, Budget Breakdown and Budget Releases • Procurement and Payment Management • Commitments and Purchase Orders, Expenditure Requests • Payment Execution • Revenue and Cash Management • Revenue Accruals, Revenue Reconciliation and Distribution • Bank Statement Reconciliation, Cash Forecasting • Fixed Asset Management • Off-line FA management, FA journaling • On-line FA management, Asset Additions, Asset Transactions and Depreciation • Accounting and Financial Reporting • General Ledger Accounting and Reconciliation, Period Closing • Fiscal Reporting

7. Financial Management Cycle Budget Execution Commitment Management Budget Preparation Fixed Asset Management* Audit and Evalution RevenueManagement* PaymentManagement Cash Management Budget ReviewFiscal Reporting Debt Management* *Interface with other systems

8. Oracle APPS modules • Budgeting • General Ledger • Purchasing • Payables • Fixed Asset Management • Receivables • Cash Management • Financial Statement Generator • Spreadsheet tools (PSB Spreadhseet Integration, ADI Spreadsheet Integrator)

9. Design and Implementation of Information Systems • Secure countrywide Network infrastructure • Contract signed through a direct contract with Albtelecom Company. • On the implementation process: • end of july, end of september

10. Albanian MoF Integrated PFMS Network Topology FMIS + BCC Treasury / PFMS PFMS System Center Line Ministries & Departments Budget Process BCC FMIS + Business Continuity Center MoF/Treasury State Tax Administration GovNet Tirana State Customs Service Revenues F/Oconn. Other Revenue Org. Internet Internet access Bank of Albania Audit Backup ISDN F/O conn. F/Oconn. Backup Treasury Single Account DoPA - HRMIS HRMIS Procure-Payroll-IA PoP Public Procurement PoP IP Network Countrywide VPN Line Ministries and Gov Agencies in Tirana PoP Statistics Institute Internet Data Exc Other Related Gov Agencies Dedicated line PoP PoP PoP Backup line Dedicated lines (online connections) [e.g. Frame Relay] District #1 District # 1 TC PSTN District #2 District #2 TC TC On demand lines (online/offline) [e.g. Dial-Up or ADSL] All regional / local offices District #n TC Regional Treasury Office Regional / District Treasury Offices + Local Governments District #n

11. Design and Implementation of Information Systems • Development of web based Application Software • Oracle Financials Parameterized and Customized based on the Albanian Public Financial System April 2005-June 2006

12. Design and Implementation of Information Systems • Central Servers and field Hardware • System and network management • System safety / security and business continuity solutions • Siemens Contract • March-July 2006

13. Development of the Albanian integrated State Treasury according to the best practices is a complex task, & Implementation of such wide spread changes would require: • Government commitment and management support at the highest levels to ensure that the change process is completed smoothly • Inter-institutions coordination and user involvement in system design • Start building institutional capacity and technical skills during preparation phase • Development of project management and technical support units within the MoF/Treasury for sustainability of implemented systems • Project implementation team must work as a separate group dedicated full time for the implementation of the project • IT staff full load dedicated during the implementation of such huge and very difficult process. Conclusions