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Integrated Financial Management Information Systems: A ... - Frp2.org

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Rolling out the IFMIS system beyond core central level ministries to the various levels of government<br />

needs to be planned in distinct phases with a long-term plan. The needs assessment should help form<br />

a preliminary idea of these phases, but the Road Map will set the triggers and milestones that need to<br />

be attained in order to ensure that the long-term plan is carried out. This is not only important to<br />

reassure donors of the value of their initial investment, but also to enable them to measure progress<br />

into the future and to plan future critical investments as deemed appropriate.<br />

STEP 3 – THE MODIFIED TENDER APPROACH<br />

Once an agreed upon Roadmap is in place, the next step is to prepare the tender. Yet before the tender<br />

is issued, the stakeholders have to work out the overall cost of the exercise.<br />

All installations are comprised of the same basic components:<br />

1. Intellectual input;<br />

2. Software;<br />

3. Hardware;<br />

4. Training; and<br />

5. Support.<br />

From the initial needs assessment, the project team should know the approximate size of the user base<br />

and the various profile types that will be required. This provides a good estimate of the basic software<br />

profile, the licensing requirements, service costs, and annual maintenance and support fees. The<br />

hardware costs are also easy to calculate.<br />

The needs assessment should show the amount, types of training required, and the time frame<br />

required—again, a simple calculation. The support related to software and hardware should be fixed<br />

in the hardware and software costs.<br />

The technical assistance inputs, from CoA design and business process re-engineering, to testing and<br />

configuration, to training and change management are the variables on which most projects stumble,<br />

for the timeframes cannot be easily fixed. In Vietnam, four years have been consumed by CoA design<br />

and consultation, and still the issue is not resolved. In Slovak Republic, a turf war between the<br />

Central Bank and Ministry of Finance over debt management nearly derailed the IFMIS process.<br />

Indeed, there are myriad issues that, even if carefully analyzed during the needs assessment and<br />

contemplated in the Roadmap, require long, drawn-out negotiations that can break a project by delay<br />

upon delay. This is why Government IFMIS projects should be broken into discrete packets—<br />

established from the needs assessment and laid out in the Roadmap.<br />

By adopting a modified tender approach, the IFMIS project can be surmount the hurdles that have<br />

been described in this report. It would provide the donor with an interactive role with the<br />

beneficiaries, establish clearly what needs to be done to put into place an IFMIS, setting local<br />

standards to meet the multiplicity of the objectives.<br />

STEP 4 – IMPLEMENTATION<br />

The final and most critical step of any IFMIS project is Implementation.<br />

PART 3: BEST PRACTICES 27

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