implementation methodology of the integrated public financial management systems in europe and...

Implementation Methodology of theIntegrated Public Financial Management

Systemsin

Europe and Central Asia

Cem Dener

İstanbul, Türkiye25-26 February 2008

Implementation Methodology of theIntegrated Public Financial Management

Systemsin

Europe and Central Asia

Cem Dener

İstanbul, Türkiye25-26 February 2008

February 2008 ECA Treasury / PFMS Projects 2

Presentation• Approach

• PFMS Implementation

Methodology

• Integrated PFMS Development

Phases

• ECA Treasury/PFMS Projects

(updated)

• Treasury/PFMS Maturity

Framework

• Challenges

PFMS Implementation Methodology



Approach

1. Identify PFM reform needs ( What? Why? )

Assess Readiness + Define Strategy Conceptual

Design

2. Develop necessary solutions ( How? Where?

When? )

Functionality + Tech Architecture + Specs System

Design

3. Project management ( Who? )

Implement + Monitor + Evaluate + Manage

Integrated PFMS


PFMS Implementation Methodology1. Identify PFM reform needs ( What? Why? )

Assess existing capacity and practices (PEFA, PFM

questionnaire …)

Development of the PFM Reform Strategy (if not available)

Development of the “Conceptual Design”

• functional review of PFM organizations

• recommendations for improving the institutional

capacity

• definition of PFMS functional modules (processes + info

flows)

• necessary procedural and organizational changes

Advisory support on specific PFM issues

Coordination with donors and other sector projects

Assist in PFM capacity building (review design + share

knowledge)



2. Develop necessary solutions ( How? Where? When? )

Assessment of existing ICT capacity (skills, resources,

CobiT* …)

Development of ICT/e-Gov Strategy (if not available)

Development of “System Design”

• PFMS functional requirements (incl. records

management)

• technology architecture (web-based systems)

• implementation methodology ( hybrid**: COTS +

CDSW )

Development of “Technical Specifications” (ICB tech

requirements)

Coordination with e-Gov initiatives and other ICT projects

Assistance in technical capacity building and evaluation of

design

* CobiT … Control objectives for information and related Technology** Hybrid … COTS : customized Commercial Off-The-Shelf software) + CDSW (Custom Developed Software)


PFMS Implementation Methodology3. Project Management ( Who? )

Form a Project Management Group (PMG) within client org

(MoF)

Assistance in funding preparation activities (Trust Funds …)

Promoting “Country Systems”

• administration & coordination of investment projects

• financial management [ FM ], accounting, reporting,

auditing

• procurement [ PRC ] (if country standards are

acceptable)

Assistance in capacity building for FM and PRC, and in the

preparation / review of ToRs, ICB documents, RFPs.

Monitoring and Evaluation tools (surveys, maturity

framework …)

Focus on Capacity Building and Change Management (NLP*)

* NLP : Neuro Linguistic Programming


Integrated PFMS Development Phases

Integrated PFMS Development : years 0 1 2 3 4 5 6 7 8 9 10

Advisory support for PFM reforms

Assess existing ICT skills and resources

1. Identify PFM reform needs

Assess existing capacity & practices

Assist in PFM capacity building + training

Technical Specifications [ ICB docs ]

Develop ICT/e-Gov Strategy (if N/A)

System Design

2. Develop necessary solutions

Develop PFM Reform Strategy (if N/A)

Conceptual Design

3. Project management

Project Management Group (PMG)

Coordination with donors & other projects

Preparation

Assist in tech capacity building + training

Coordination with e-Gov & other ICT prj

Administration of Trust Funds (if any)Procurement of ICT solutions [ ICB ]

System implementation, test, acceptanceMonitoring & Evaluation

Capacity building & Change Management

WarrantyEstablishment of a countrywide network

Implementation

PFMS take off

Approval

FlySolo

Supportand

Maintenance


ECA Treasury/PFMS Projects

ECA Treasury / PFMS Projects 1995 2000 2005 2010 2015

Albania P069939 PARP (TS)1993

Azerbaijan P066100 TIMS (TS)1998

Jan’08

Hungary P043446 PFMP (TS)1996Kazakhstan P037960 TMP (TS)1994

Slovak Rep**P069864 PFMP (TS)1992

Georgia P063081 FMIS (PFMS)1998

Kyrgyz Rep P071063 TMIS (TS)1994Moldova P082916 PFMP (PFMS)1993

Russia P064508 TDP (TS)1992

Türkiye* P035759 say2000i (TS+)1927Ukraine P049174 TSP (TS)

1996

Ukraine P090389 PFMP (PFMS)1996Tajikistan P099840 PFMP (PFMS)1997

Uzbekistan***P070084 PFMRP (TS)1999

TurkmenistanP034092 IBTA (TS)1992Croatia P050718 PFMP (TS)1992

Armenia** P081668 IDF (GFMIS)1996

Extension

Implementation

Prep.>Appr.>Effect.

Treasury established in

Preparation

Dropped

AH

AH

AH

AH

DR

DR

CD

AH, CD

CD

CDCD

CDCD

CD

DR

CD

DR

AH

DR

AH Ali HashimDR Dominique de Roquefeuil

WB Informatics Specialists involved:

AH

AH

* The Bank funded the ICT consultant/prj coord only.** The Bank funded the TA activities only.

eGov starts

eGovprojects stall

World Wide Web Browsers Java

Web TV Google

Wireless Skype

eGov recovery

eEurope

Blogs YouTube

Completed

In Progress

Avg. completion time 7.1 yrsAvg. implementation 5.7 yrs

Avg. compl. 7.2 yrsAvg. impl. 5.1 yrs

*** Project reactivated with ADB funding in 2007.

CD

CD Cem Dener

10.4 (7.3+3.1)

17.7 (15.7+2.0)

15.9 (0+15.9)

26.9 (16.5+10.4)

9.0 (8.5+0.5)

5.5 (4.9+0.6)

613 (231+382)

13.4 (9.5+3.9)

10.2 (6.7+3.5)

15.3 (8.5+6.8)

15.0 (3.0+12.0)

65.0 (50+15)

10.0 (9.95+0.05)

37.4 (20.7+16.7)

Note: Total project budget (World Bank funding + Gov contribution; in USD million) is shown on the bars


Monitoring and Evaluation Tools

Monitoring and Evaluation of Treasury/PFMS Projects

Quarterly updates on key project data and sharing progress with

borrowers

Monthly updates on status of Treasury/PFMS project implementation

in ECA

The Maturity Framework (MF) for Treasury / PFMS development

process [ www.worldbank.org/pempal ] link to Treasury MF

Tool and user guide

[ www.pempal.org/pfmstool ] location of MF tool

PEM-PAL Discussion Groups [ www.pempal.org/discussions ] >

Treasury CoP

PEM-PAL Blog [ www.pempal.org/blogs ] > External

Other useful information Budget Classification and Chart of Accounts structures in selected

countries

Summary of Treasury Single Account operations in selected

countries


Maturity Framework for Treasury/PFMS Development

Maturity Framework for Treasury/PFMS projects

A Community of Practice for Treasury Managers was established in

June 2006 as part of the Public Expenditure Management-Peer

Assisted Learning (PEM-PAL) program (

www.worldbank.org/pempal ) activities.

The Maturity Framework (MF) for the Treasury / PFMS development

process was developed during the "PEM-PAL workshop for Treasury

Officials" held in Ljubljana, Slovenia from June 26-27, 2006.

The Maturity Framework was designed to enhance learning and

knowledge sharing among Heads of Treasury and related key

officials in public expenditure management from 14 ECA countries.

The Bank prepared a web site to publish the results and to facilitate

interactive monitoring and management of proposed indicators

( www.pempal.org/pfmstool ).


Treasury/PFMS Maturity Framework

Readiness PFM reform strategy Institutional capacity Countrywide network infrastructure

1

Preparation Legal and institutional frameworks Budget coverage Treasury Single Account (TSA)

2

PFMS Design Definition of system functionality Detailed technical requirements

3

Procurement Large scale ICT systems Technical Assistance and Training

4

System development & integration Full scale testing and rollout Training and change management

Implementation

5

Maintenanceand Support

Budget funds Technical capacity System administration Maintenance

7

9 – 18month

s

9 – 18month

s

18 – 36

months

Resources

Effectiveness

Time

Monitoring & Evaluation

Monitoring mechanisms Project mgmt capacity

6

Maturity Frameworkfor Treasury/PFMS projects

www.pempal.org/pfmstoolinteractive monitoring and management of MF

indicators


ECA Treasury/PFMS Development Indicators

February 2008

ECA Treasury/PFMS Development Status

Completed

Started

In progress

13ECA Treasury / PFMS Projects

Thank YouThank You

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