2nd Seminar of the International Association of Treasury Services - AIST Washington 14th & 15th October 2008

Strategy & Implementation approach for Treasury Solutions Name Bill Bailey Title VP EMEA Treasury Solutions Practice

Agenda Introduction Oracle Treasury Solution implementations The Oracle approach Oracle Treasury experience – key factors Important Relationships Road from Strategy to Solution The Oracle ‘Treasury Solution‘ How does Oracle deliver ? Lessons Learnt Critical Success Factors

Introduction Public Sector Reform benefits from Fiscal Management System Implementation Government accountability – high visibility in country Implementation of a Fiscal Management System facilitates decentralisation of government operations Highly Political – an election year poses a significant risk to the project Many influencers – eg: Government Officials, World Bank, Parliament, IMF, EU

History of Treasury Solution Practice Success Kazakhstan Treasury Modernisation Project Partner - HP Government of Ghana BPEMS Project 1999 – 2005 Partner - HP Ministry of Finance for BiH Project 2001 – 2004 Partner - Deloitte Touche Government of Uganda IFMS Project 2003 – 2005 Partner - HP Ministry of Finance for Albania AMoFTS Project 2005 – 2006 Partner - Intracom IT Services

The Oracle Approach Oracle has Public Sector Financial Specialists Engage with world wide fiscal advisors Embrace new best practices and standards Talk government business language Understand fiscal reform policies Advise on fiscal reform processes Compliance with IPSAS Recommended approach has been defined by World Bank - Oracle sells a solution based on World Bank Recommendations !

Oracle Treasury experience – key factors The Customer generally has limited complex IT project experience Implementing Fiscal Management Systems requires Ability to influence policies Understanding of Processes Cannot be approached as an IT Project – Must be part of a Fiscal Management or Budget Reform Program Clear, agreed and documented KBRs Critical that Change Management is addressed as an integral part of the program

Important Relationships Government officials – The Customer World Bank – many fiscal reform projects funded by The World Bank IMF often provide external advisors to countries to establish fiscal reform policies EU - Phare – Contract Terms and Conditions are extremely challenging USAID Local Partners Local knowledge Use of local implementation skills Political relationships Ongoing support Suppliers

The Road from Strategy to Solution Strategy Policy Processes Solution - Parliament: Provides long- term vision & direction - MoF/Treasury: Provides/guides the scope & plan of action - Ministry Line Management: Detailed design & sequence of changes - Solution Provider: Collect, document & validate software requirements against the KBRs & the RFP and involve all above stakeholders

WB GFMIS – Oracle “Treasury Solution" TREASURY SYSTEM FUNCTIONAL PROCESS CENTRAL BANK DEBT MANAGEMENT BUDGET MANAG. CASH MANAG. GOVT. SPENDING AGENCIES REVENUE COLLECTION AGENCIES PAYING/ RECEIVING BANKS TAXESCUSTOMS BUDGET PREPARATION BUDGET MANAGEMENT & FISCAL REPORTING Ac.Receiv. Ac. Payable Treasury General Ledger AGENCY BUDGET EXECUTION DEBT MANAGEMENT POSITION MANAGEMENT PAYROLL & PENSIONS PERSONNEL MANAGEMENT TAXATION AGENCY BUDGET PREPARATION CUSTOMS DomesticForeign InvestmentCurrent CASH MANAGEMENT AUDITING Sample Transactions from Government Systems to Auditing Budget Guidelines Cash Forecasts; Allocations C O M M E R C I A L B A N K S Estimate of Borrowing and Public Debt Interest Macro Economic Framework Budget Proposals; old & new programs AUDIT ORGAN. Revenue Estimates Approved Agency Budget CENTRAL BANK (TSA) Payment Instructions to Central Bank Report on Payments & Receipts to TSA Reports on Revenue Receipts CENTRAL OFFICE REGIONAL UNITS ECONOMIC POLICY TREASURY MINISTRY OF FINANCE Government Banking Arrangements Feedback from Audit Vendors Tax Payers MACRO ECONOMIC FORECASTING BUDGET PREPARATION BUDGET MANAGEMENT ACCOUNTING & FISCAL REPORTING CASH MANAGEMENT DEBT MANAGEMENT REVENUE ADMINISTRATION CIVIL SERVICE MANAGEMENT AUDITING Oracle Hyperion Planning & Cash Management Oracle Hyperion Planning Oracle Hyperion Planning / Public Sector Budgeting Oracle Financials General LedgerCash Management PurchasingReceivables PayablesPublic Sector Budgeting / OPSFI Oracle Financials General LedgerCash Management PurchasingReceivables PayablesPublic Sector Budgeting / OPSFI Oracle BI Reporting, GRC - Governance, Risk and Compliance Oracle Human Resources & Payroll Oracle Treasury & Cash Management Oracle Revenue Management The World Bank

How does Oracle Deliver? Resources EMEA Treasury Solutions Practice Experience of 5 successful Treasury Implementations Project Management, Functional Architecture, Technical Architecture, business knowledge Local Oracle resources if available Functional and Technical Consulting skills Local Partners Support and System Management Oracle Near and Offshore capability World wide resource pools Product and Business experts

Oracle Delivery Capability Key Success Factors Project Management Project Planning Risk Management Reviews Regular Health Checks Regular reviews with partners engaged in project Regular Solution Reviews/Updates Project Sponsor Visible Executive sponsorship. Regular steering committee meetings Key stakeholder engagement Heads of depts. & Key users Government Ministers World Bank Advisors External consultants – procurement advisors etc.

Lessons Learnt Key Success Factors Government Commitment to the reform process Clearly defined reform objectives Strategic approach to MIS development Maximising use of external assistance Building stakeholder support Availability of staff and resources Use of best practice project management techniques Pragmatic & realistic timescales

“Our mission is; To deliver an integrated Financial Solution to National and Regional Treasuries in a way that provides accountability, and the ability to exercise financial controls.” To provide the customer resources with the knowledge and experience from previous successful implementations. EMEA Treasury Solutions Practice Mission statement