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8/6/2019 FMIS_Awareness (1)
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Objective of Briefing Objective of this briefing is two fold:
1. Provide awareness/understanding of the FMR,its major components and the key changesassociated with it; and
2. To get yourselves prepared to take on theimplementation of FMR/FMIS
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Outline of PresentationFinancial Management and its key elementsProblems with current Financial ManagementFMR Focus & Components
� W hy FMIS for Whole of Government?� B
enefits of FMIS� K ey Issues in FMIS
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What Is Financial Management?Definition:
Financial Management is management of finances of an organisation in order toachieve its objectives.
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K ey E lements of F inancialM anagement:
Planning
AllocatingResources
ManagingPerformance &
Resources
ReportingManagement
Cycle
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Problems in the CurrentF inancial M anagement forGovernmentPoor planning
La ck of performan ce focusInput based
Poor d istr ibut ion of limited resour ces Un clear linkages of outputs to nat iona l po licyobje ct ives
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Cont¶«dInadequate financial controls
Poor b udg etary controls & financial manag ementp ractices
� U ntimely and inaccurate rep ortsPoor recording of commitmentRep orts lack useful dataCentralized control vs. CEO accountab ility
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W hat D oes FM R Bring About?
FinancialManagement
Act 2004
FinanceManual
Consequential amendments to:y Audit Acty Public Service Acty statutory authority Acts
FinanceInstructions
2004
FinanceManual
FinanceManual
FinanceRegulations
2004
(apply to budget sector agencies) (apply to other
state entities)
N ew Legislation
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Cont¶«d� A move from cash accounting and gradual
transition (shift) to accrual accounting
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Cont¶«d� A move from traditional line item budgeting to
performance/output budgeting
Ou tcomesGoods or Services
Used
Indicator effect or
benefit onthe u ser
l l
Ou tp u tsGoods or ServicesS u pplied
Inp u ts
Activities/Processes
Bu dget Entity
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Link between
FMR and
FMIS
A new Financial Management InformationSystem will support the changes in the FMR
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W hat is
FMIS?
The Financial Management Information System
(FMIS) is an integrated database system and willbe used to support the government¶s purchasing,accounting, payment, sales and receiptingfunctions.
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W hy an
FMISfor the
W OG?
FMIS provides public sector decision makersand managers a set of tools to:E nsure a ccountability
e .g . The CEO will be held a ccountable for any over spending in his /her ministry .
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Cont¶«dSupp or ts de ce ntrali z a ti on of a ccou nti ng pr ocesses
e .g . LPOs woul d be issue d fr om Cos t Ce ntres all over the cou ntry bu t the hea d offi ce woul d s till have contr ols over
expe ndi ture .
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Cont¶«dImpr ove effe ctive ness a nd effi cie ncy
e .g . FMIS will e nable fas ter pr ocessi ng of payme nts as well as re ceip ts .
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W hy move?
Major problems in the manual system are:
Slow processing of paymentsSlow processing of transaction
Inaccurate & untimely financial information andreports i.e. information is not recorded on realtime
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Benefits ofFMIS
Processes large number of transactions inlimited periods of time across a country widenetwork of offices
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Cont¶«dEasy retrieval of financial information for decision making e.g. financial information can beviewed where transactions are generated
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Cont¶«d Availability of basic data required for economicmanagement in a timely manner
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Components ofFMIS
New Chart of Accounts for WOGGeneral Ledger Accounts PayablePurchasing A
ccounts Receivable & Sales AssetsOther modules
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More on
FMIS«
FMIS has to be tailor made to suit the newlegislation which includes a new FinancialManagement Act, Finance Instructions andFinance Manuals
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Cont¶«dContinued job securitywith the automated environment
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Key
Issues
Training
Capacity building within governmente.g. Change in wor k practices,f rom manual and paper bas ed to
an automated environment e.g. ex penditure ledger will not bemaintained in an automated environment.
Brief ings will be done on a progress ive bas is as we proceed
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Cont¶«dOwnershipUnderstanding the reform and the key changes in it.
The accounting heads will need to drive the new FMISimplementation in order to succeed. And they will need
nominate a person who can work closely with the FMISteam to assist in the training and implementation
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Status of
FMIS
Tendered for a new FMIS in April 2004
Currently in the evaluation process
Selection to be finalized by end of September 2004
Commence implementation on a pilot basis early 2005
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Desk Officers
For your assistance we have set up a helpdeskfacility should you have any queries regardingFMIS.
� E- mail:[email protected]: 3222 144