Professional Documents
Culture Documents
December 2007
Washington, DC
Fernando Fernandez from the Inter-American Development Bank delivers his key note opening
The program was organized around four main themes – planning, design, implementation
and impacts. Topics included how FMIS fits within the over-all PFM reform agenda;
planning for FMIS development; FMIS design components; IT alternatives; project
management; procurement; capacity building; and, harvesting benefits. There was also a
session focused on the unique aspects of FMIS implementation in post conflict countries.
Each topic was presented by a subject matter expert teamed with a country representative
who could relay specific experiences.
The Joint Financial Management Improvement Program (JFMIP) described the core
financial system requirements29 of a “good” system as the ability to:
• Collect accurate, timely, complete, reliable and consistent information
• Provide adequate management reporting
• Support government-wide and agency policy decisions
• Support budget preparation and execution
29
From Core Financial System Requirement – JFMIP-SR-02-01
The often quoted statistics regarding the success of FMIS implementations derive from a
study of World Bank funded projects conducted by Bill Dorotinsky in 2003. This study
found that on average it took 7 years to complete the FMIS project and, of the 34 projects
studied at that time, 43% were delivered as specified, 50% were delivered on budget and
only 21% were delivered on time. In terms of the impact on financial management and
government operations, there were generally no performance indicators and no baseline
against which performance improvements could be measured. In terms of sustainability,
the majority was likely or highly likely sustainable, but 25% of the implementations was
found to be unsustainable.
An objective of this conference was to see how much of this advice had been applied and
to hear of current challenges and successes in FMIS implementation
Discussion Summary
Planning
• Governance. PFM systems are at the forefront of public financial reform as they
provide for improved governance and better management of risk. Poor governance
and corruption undermine efforts to reduce poverty and diminish the availability of
aid. A good process of governance requires more than compliance with laws and
regulations, and is based on principles rather than rules. An environment needs to
be created in which employees who witness unethical behavior feel they can share
their concerns. A strong government and Ministry of Finance are critical to reform,
but good governance also involves reaching out to the press, NGOs and the private
sector to stop backsliding.
• Government in the driving seat. Institutional reform is not easily done. It takes
time, commitment, champions and courage. While often ill-defined, country
ownership of the reforms and automation are core to any success. The decision to
introduce a PFM system needs to be accompanied by strong commitment,
sufficient manpower and financial resources, widespread internal support, and an
agenda for effective change management. Unless these are in place, the chances of
success are limited. The PFM reform effort should be structured as a program of
change with a mission, objectives and set milestones. The FMIS should not be
viewed as an isolated intervention, but should be accompanied by, and related to,
other reforms in public sector financial management. It is also necessary that the
Gail Ostler (first from right) who presented on The Context for FMIS, with her colleagues from Ghana
Khuram Farooq (on right) who presented the Pakistan PIFRA implementation with his colleagues
Design
• FMIS versus IFMIS. Much of the work in automating PFM systems has focused
on implementing an integrated financial management information system,
including general ledger, accounts payable, accounts receivable, procurement,
payroll, asset management, debt management, budgeting, etc. This approach might
be too large to implement effectively, in a timely fashion, or to achieve results. It is
better to think of automating some core part of the system, such as general ledger,
and accounts payable and receivable, with an eye to adding-on or replacing the
system within a few years. Other points in this regard were to start from where you
are in terms of PFM system development, rather than from where you want to be,
and also to recognize that not everything may need to be automated. As PFM
systems evolve, the needs will change, so the scope of the automation can be
expanded. Given the rapid change in technology, it may not be feasible to plan all
of these potential needs or IT options in advance.
Delegates listen to Dr. Stephen Peterson present on the Ethiopian FMIS experience
Implementation
Peter Walker presenting on one of the critical success areas – Capacity Building
• Post conflict situations apply the same fundamentals. Post conflict countries
may be regarded as unique and having few lessons that are applicable to other
developing countries. The reality is that while there are different circumstances,
many of the fundamentals are the same. First, you need a fast, pragmatic solution
• Steve Symansky from the IMF presents on the implementation approach in Post Conflict Countries
From left to right: Gert Van Der Linde (World Bank) facilitates a panel discussion on FMIS Benefits and
Impacts with Nwazi Mnthambala (Malawi), John Muwanga (Uganda), Bill Taylor (Conference Chair -
Inter-American Development Bank), Sanya Praseuth (Lao PDR) and Maria Betânia Gonçalves Xavier
(Brazil)
However, the conference delegates and speakers acknowledged that there is still a lot of
work to do in determining the linkage between performance and investments in financial
management
ICGFM has continued the dialogue that was initiated at this meeting at its subsequent
conferences. At the Miami Conference in May 2008, there was session specifically dealing
with auditing of financial management systems. In December 2008, the Washington
Conference focused on the issue of performance and discussions were held on how we
measure success with financial management systems by demonstrating the contribution
made to improved financial management and government operations.