ENGINEER <strong>PEC</strong> September 2007Development of GFPS for Planning andManagement of Finances<strong>Dr</strong>. <strong>Muhammad</strong> Younus JavedMr. Munawwar IqbalAbstractFinancial procedures conceptBoth non-development and development expenditurerequests lies in any finance department of each enterprisein the world. In non-development each organization hasdifferent departments. Each department has a uniquefunction. However, two or more departments can performthe same function. Function details are defined accordingto function heads. Each function head is five digits long.Last two digits are reserved for those function heads thathas value D (D for Detail) or T (T for Total). If a functionhead has a value D then it means that it has no furthersubsection and if it has value T then we can define its subfunction heads as shown below: -Func Description Status ParentHeadHead01000 Publicity and Information T01200 General Commission andInquiryT 0100001600 Election Commission(150) D 01000An automated environment used to create containers andto hold and manage the financial expenditure data can beconceptualized as Generalized Financial Planning System(GFPS). This paper briefly describes financial procedureconcepts and levels of a security system within GFPS. TheFinance Department of Government, Semi Governmentand private organizations has been emphasizing the needto carry out software development in order to computerizethe annual expenditure requests including nondevelopmentand development expenditure. Thecomputerization of financial expenditure data andrequests processing is required to provide better supportto the higher management for making efficient operationaldecisions and their execution. Efficient computerizationrequires a detailed study and analysis of the working ofdifferent finance departments and development ofgeneralized financial procedures and mechanism of therelated data recording and processing methodologies.After a detailed analysis, a GFPS has been developed.The requirements of the software for GFPS have beenidentified and specified in detail including non-development expenditure and development expenditures,cut on non-development and keeping track ofdevelopment releases. The system has been designedand developed to meet requirements of different financedepartments with an easy to use interface for tentativeusers. The system is implemented using powerful featuresof the available DBMS. The development tools andenvironments selected are the most advanced keeping inmind all kinds of enterprises. In view of the essentialrequirements of finance departments, the necessary datasecurity and integrity mechanisms have been incorporatedand built into the system after taking a detailed feedback<strong>from</strong> the users. Six users of the selected enterpriseevaluated the developed system to check its efficacy andusefulness. Results have been analyzed and the teammembers found that the developed system is easy tooperate, very accurate, highly secure, reliable and userfriendly.Moreover, it successfully meets all financialrequirements to plan and execute a series of projects andother related expendituresThere are different demands under which differentdepartments exist. One demand may contain severaldepartments. Nature of the demand may be capital,revenue or repayment of debts. Expenditure type within ademand may be charged or non-charged. Another conceptin allocation of finances is object head. Amount is alwaysrequested and allocated against object head. Each objecthead can be five digits long. Last two digits are reserved forthose object heads that has value D. Detail about objectheads is shown belowObjectHeadDescription Status ParentHead10000 Purchase of DurableGoodsT11000 Transport D 1000012000 Machinery andEquipments30000 Construction of Works TD 1000035000 TelecommunicationT 30000Works35100 Lines and Wires T 3500035101 Lines and Wires(Telegraph)35102 Lines and Wires(Telephone)D 35100D 3510035103 Lines and Wires (Radio) D 3510012
ENGINEER <strong>PEC</strong> September 2007Request of amount needed <strong>from</strong> each department is user’s view of data [1,2]. It is the most important task in thepresented to the finance department containing a unique development of GFPS application. The functions of thediary number whose data is necessary to be maintained, GFPS are to materialize forms, reports and queries byconsulted and updated. Request contains a total reading or writing the database data. The GFPS is anrequested amount and shows different volumes (if exists) intermediary between the user and the operating system. Itin which request is being considered. In addition, various receives the requests stated in terms of tables and rowsqueries are to be answered and reports are required to be and columns and translates those requests into read andgenerated. In the present system, a request of financial write requests. A process that involves inferring <strong>from</strong> user’sneeds contains development as well as non-development statements, forms, reports and queries are gathered andrequest.the developers work backwards to infer the structure thatdepicts the user’s vision and constructs the data modelsTotal requested amount is further subdivided into object for GFPS. This is necessary because most users cannotheads. Each object head has two levels of categories that describe their data models directly. The Entity Relationshipis T or D. If an object head has a level value D then it mean (E-R) model is used to interpret, specify and document thethat it has no further child object head and if it has value T requirements for database processing systems [5]. Since itthen one can define its child object heads. Amount is provides constructs for showing the overall structures ofinitially specified against each object head containing level the user’s data requirements, it is specifically used for topD. Sum of amount against each object head contains level down database design. The major objective in designingD within a parent object head which must be equal to phase, for GFPS, is to suggest such a system, which isamount of parent object head. No amount can be directly organized, smooth in running, proficient in handlingspecified against object head that is at level T. If amount is information and adequate in all respects. But the point torequested against salary object head then detail of each be kept in mind is that the prescribed organizationalpost is also given against that object head.limitations should not be dominating, more over theproposed system should be applicable and shouldIn case of development expenditure request, an enterprise overcome the drawbacks which exist in the presenthas different sectors in which different projects are system. Computerized system, known as GFPS, is beingrunning. A sector may have many projects running in it and presented to meet the requirements of the organizationeach project belongs to only one sector. Development and is designed so that all the objectives are achieved [3].request for each project, along with previous year amount The existing manual system does not satisfy all thespent on it, comes in a year requesting for capital or objectives of different finance departments. Typicalrevenue amount request. Amount is first allocated for a organizational objective is to provide better service to itsparticular project. After allocating, it is authorized. users. These objectives can only be achieved if a betterAuthorization amount may be split into different intervals. computer based system is satisfying the requirements.For a particular project total amount authorized cannot be The main goals of the early stages of databasegreater than total amount allocated. After a particular development are to build a ‘Data Model’ that documentsauthorization is made then amount against authorized the stages to be represented in the database, and toamount is released and total released amount cannot be establish the relationships among them [8]. Since topgreaterthan total amount authorized. Recently the data is down database development approach has been adoptedcollected <strong>from</strong> different departments on papers. Request to design the GFPS, the E-R model has been used topapers for finance are sent to each department in advance. design and develop the system. A software design is aAfter filling these papers each department sends its model of real world system that has many participatingrequest back to finance department where each incoming entities and the relationships [1] as shown in Figure 1.request is allocated a unique diary number. There can be apossibility that requested non-development expenditureamount <strong>from</strong> a single or many departments may not befulfilled because no excessive amount of current income isavailable. In such a case cut is applied on requestedamount on one or more departments as in the form ofpercentage.Software designA design for GFPS has been developed in DBMS forautomating financial procedures. Data modeling is thenext step in GFPS after ‘Requirements Specification’ forundertaking design and development of an automatedsystem. It is a process of creating a representation of the13Figure 1 Partial view of normalized schema of GFPS