1. NT/SCOPA QUARTERLY MEETING INTEGRATED FINANCIAL MANAGEMENT SYSTEMS (IFMS) Bobby Maake National Treasury 23 rd May 2007

2. Objectives Of The IFMS Project  To consolidate and replace aging financial systems with modern integrated financial management systems solutions  To develop systems solutions for the enablement of the implementation of the PFMA and new HR requirements  To refocus SITA towards its legislative mandate of Primary Systems Integrator (PSI)

3. IFMS Options SYSTEM OPTIONSADVANTAGESDISADVANTAGES Customised Best of Breed COTS Improves Functional fit Allows system synchronisation with policy development Improves competition in different functional spheres Imposes Commercial Best Practices Turns project to in-house development Requires development of integration software Commits project to specific versions of COTS or unsynchronised system life-cycle for different COTS options Commits system development to multiple COTS development environments Requires effective change management strategy and highly skilled user community In-House Developed Systems Control on functional fit Control on system life-cycle Synchronisation of system life-cycle to policy development Control over functional fit vs change management Control over development standards May take long to deliver results May lead to conflict over priorities May compromise on industry standards and best practices Multiple Options Solutions Provides for organisational autonomy Centralised standards setting High levels of duplications and costs Risk of non-compliance to inter-operability standards Difficulty to synchronise system developments to policy changes May take very long to deliver results across all organisations Fragments available skills levels

4. IFMS Project Recommendations  The following areas to be developed in-house through SITA  Payroll Management  General Ledger and Financial Management  Supply Chain Management - Asset Management, Store Management, Maintenance Management etc  Business Intelligence Solutions – Management Reporting  The following areas to be bought as COTS  Procurement – e-tendering etc  Human Resource Management

5. IFMS SUMMARY PROPOSAL PAYROLL (Develop) HUMAN RESOURCE MANAGEMENT (Buy COTS) ASSET MANAGEMENT STORE MANAGEMENT OTHER SCM MODULES PROCUREMENT (Buy COTS) (Develop) GENERAL LEDGER/ FINANCIAL MANAGEMENT (Develop) BUSINESS INTELLIGENCE/ MIS (Develop) OTHER DEPARTMENTAL CORE SYSTEMS (Not part of IFMS) SUPPLY CHAIN MANAGEMENT

6. IFMS Project Implementation Strategy  Phase I covered the development of User Requirements and the Business Case for this project (Completed in March 2004)  Phase II of the project to focus on preparing SITA for its PSI role (18–24 months) – Panel of expert advisor will be commissioned to asses SITA’s capability as PSI  Phase III will entail the development and procurement of the various systems components and their phased deployment (5-7 years)

7. Cabinet Resolution of 14 Sept 2005  Phase II & III of IFMS Project were approved as proposed  Current systems to continue to be managed by their owner departments (DoD, SAPS, NW, Gaauteng, Limpopo etc)  Phase III will entail the development and procurement of the various systems components and their phased deployment (5-7 years)

8. Progress To Date  Procurement Of the Integrated Development (IDE) toolset is about to be finalised (programming and system development tools)  Procurement Module tender is being evaluated.  HR Module tender has just been issued – closing date is end July 2007  Systems Architecture and Specifications will be finalised in August 2007

9. Challenges  Access to appropriate IT skills by SITA  Access to appropriate functional skills by user departments  Alignment of policy implementation with rollout of system solutions  Alignment of departmental core systems with IFMS Architecture

10. Interim Arrangements  A stakeholder management structure has been developed and coordinated through a Steering Committee (TCF/Budget Council, GITOC and Domain Specialists)  Auditor-General has been appraised with the IFMS process to allow for alignment on reporting requirements by departments  Capacity on current infrastructure has been significantly (44%) upgraded to cater for increased transaction volumes  Essential enhancements have been effected to cater for A-G reporting requirements and salary adjustments  Procurement of COTS solutions reprioritised to be acquired during Phase II  Change Management for Domain Specialists Technical Team has commenced. Change Management for operational users will commence in October 2007.

11. T HANK Y OU D ANKIE S IYABONGA R E Y A L EBOGA