1.1 Public Financial Management (PFM)
What is the definition of PFM?
Public financial management (PFM) is critical to basic economic governance and essential in establishing the performance, legitimacy and accountability of Government. Public financial management has to do with the effective administration of funds collected and spent by Government. (https://www.international.gc.ca)
What are the elements of PFM?
- Public expenditure.
- Public revenue.
- Public debt.
- Financial administration.
1.2 Financial Management Information System (FMIS)
What are the changes that FMIS implementation will bring?
FMIS implementation will bring about a change in monitoring budget implementation to be more effective, transparent, accountable, and timely. Agencies can precisely monitor their expenditureon a daily basis. Users can extract data for preparing reportsin real time, monthly, quarterly, semester, and annually.
Who are the beneficiaries of FMIS implementation?
All citizenswill benefit from FMIS implementation. As for the government, the management of information and implementation of budget through FMIS will improve the future preparation and decision making. For instance, Financial management through FMIS will make it more convenient for top management and officials of line ministries in ensuring the transparency, accountability, and financial effectiveness, which is the cornerstone of public financial management. Each agency will have the ability to enter, approve and track their own transactions and see in real time their budget, expenditure and variance.
What are the benefits of using FMIS?
Using FMIS will offer you many benefits including:
- Strengthening the organization’s accountability and ownership in managing and implementing budget
- Conveniently managing and implementing program budgeting
- Monitoring the budget implementation via the workflow in the system
- Recording any financial transaction based on the business process
- Conveniently recording financial transaction and producing financial statements
- Conveniently finding data and related information
- Increasing knowledge and capacity
- Improving efficiency and effectiveness
- Having a foundation for analysis and confidence in decision making
How the users will benefit from FMIS?
FMIS will provide accurate, comprehensive and reliable information that will enhance financial management. FMIS will also include all processes to manage the budget and the government financial procedures, and will have the ability to review financial information easily and quickly.
Will FMIS help reduce manual work?
The team aspires for FMIS to be able to reduce he amount of paper usage after successfully roll out to all line ministries and finance departments.
What is the FMIS and Why implements FMIS?
FMIS is a major component of the Public Financial Management Reform Program. FMIS provide a set of core integrated treasury and budget application modules with objectives aligned with the reform program.
FMIS will support all the requirements for automated Budget Preparation and Execution including applying Government rules and regulations and establishing work flow to speed up the approval process. The system will support processing of payments, receipts, cash management, budgetary and internal control, accounting and reporting; and will also be capable of supporting future, broader functionality for procurement, inventory and asset management, throughout the whole of Government.
What RMI Ministry of Finance, Banking & Postal Services has to prepare in advance for the implementation of FMIS (in terms of human resources, technology, etc.)?
Ministry of Finance, Banking & Postal Serviceswill:
Ensure FMIS users have awareness on FMIS benefit and impacts:
– The staffs should get updated with the latest information about FMIS via FMIS communication (through FMIS website, FMIS Newsletter, Briefing, meeting….)
– The staffs should be fully aware of benefits as well as challenges bring about by FMIS to him/her and his/her organization.
4- FMIS is a reform project; therefore, it reflects our ideas, innovations and ways of thinking.
International standards and best practices are being applied to this course. To prepare for the FMIS implementation, we need to be trained on changes on business process and accounting policies (Chart of Accounts – COA).
Moreover, we have also started communicating to all those who will be impacted by FMIS. All staff at the central and provincial levels should start getting themselves updated regularly about FMIS. They could approach their Communication Network for more information.
What does an End user have to self-prepare in order to use FMIS the most effectiveness?
Before FMIS roll out, as an end user, you need to:
– Get updated with the latest information about FMIS via colleagues’ network, communication network, FMIS newsletter and FMIS. You can also download our FMIS Newsletter from this website.
– Get trained on FMIS and Ministry of Finance, Banking & Postal Services training courses to improve knowledge and update with the new accounting policies (if any). End users training will be conducted as the project get closers to the implementation date. Look for the end user training schedule and remember to attend the training.
With the implementation of FMIS, how will my work change?
FMIS Project team will conduct research on how FMIS will impact to stakeholders in term of structure and personal resource. Once the study is completed, we will communicate to all of you.
Will there be changes in the ways in which work procedures are implemented?
Yes, the current financial execution practices, which rely on manual records or some disconnected systems, will be replaced by a unified financial system that provides coherence between all financial functions including budget preparation, all phases of the government accounting cycle, and automated closing of the final account. Provide each employee who will deal with the system with the necessary instructions, instructions and instructions to operate the system.
What will the system provide to the user?
The system will provide accurate, comprehensive and reliable information that will help improve the efficiency of financial management.It will also provide comprehensive coverage of all budget management and government financial management operations, the ability to exchange financial information quickly and easily, in addition to transparency of financial statements, activating the functions of financial control, and supporting appropriate decision-making. Good time.
Where will the system be implemented?
The GFMIS will be applied to all government financial and accounting bodies, from the Ministry of Finance and to all 48 government ministries and institutions. A list of these entities can be found on this website.
Will training be provided using the system?
Yes, a set of training courses will be provided to all users of the system at all levels, to ensure their mastery of the system and the processes used on a daily basis, and to complete the day-to-day tasks related to the functions of ministries and government departments and users of the system. These training courses are specifically designed to qualify GFMIS project personnel, to be held at the end of the pilot phase of the project and during the transition phase as well.