1. Republic of Albania Ministry of Finance, Treasury System AMoFTS

2. Albania MoF Treasury System Ministry of Finance of Albania is implementing an integrated Public Finance Management System from 2001- end of June 2006. We are asking for an extension based on a lot of key issues delays the process The political changes Network Infrastructure Project implementation team dedicated not full time for the project Recruitment and sustainable process of IT staff

3. Evolution of Treasury Systems Treasury development process: (based on Treasury Reference Model) 1.Building the IT department, Preparing the ToR’s for Integrated Treasury System 2.2 nd Phase Design and implementation of Albanian Treasury System 1.Software parameterization & customization 2.Hardware generalization 3.Countrywide network infrastructure

4. Albanian Project implementation group Steering committee Steering committee –Deputy Minister, General Secretary, –General Budget Director, –General Treasury Director, –Budget Directors by budget areas, –Treasury Director, –Accounting Director, –Debt Director, –Macroeconomic Director, –WB PIU director, WB representative. Project Manager Project Manager Technical Project Manager Technical Project Manager Coordinators & Key users group Coordinators & Key users group Trainers Group Trainers Group

5. Functionality Common Implementation Options 1- Macroeconomic forecasting LDS 2- Budget Preparation LDS / COTS 3- Core Treasury System COTS + General Ledger + Accounts Payable Interface with banking system (TSA) + Purchasing / Commitment Interface with procurement agency + Accounts Receivable Interface with revenue collection + Cash / Fund Management Interface with banking system (TSA) + Financial reports + Org. Structure / Workflow Mgmt. + Asset / Inventory Management 4- Operational support for SUs Interface for spending units (LDS) 5- Internal debt management LDS 6- External debt and aid mgmt. Interface with DMFAS 7- Personnel database (HR mgmt)LDS / COTS 8- Payroll calculations LDS 9- Support for Auditing Locally developed reports 10- Management Information SystemCOTS System Functionality LDS : Locally Developed Software COTS: Commercial Off-The-Shelf Software

6. AMoFTS Business Flows The AMoFTS functional processes are classified as:  Budgeting Preparation of Estimates, Consolidation and ApprovalPreparation of Estimates, Consolidation and Approval Appropriation, Budget Breakdown and Budget ReleasesAppropriation, Budget Breakdown and Budget Releases  Procurement and Payment Management Commitments and Purchase Orders, Expenditure RequestsCommitments and Purchase Orders, Expenditure Requests Payment ExecutionPayment Execution  Revenue and Cash Management Revenue Accruals, Revenue Reconciliation and DistributionRevenue Accruals, Revenue Reconciliation and Distribution Bank Statement Reconciliation, Cash ForecastingBank Statement Reconciliation, Cash Forecasting  Fixed Asset Management Off-line FA management, FA journalingOff-line FA management, FA journaling On-line FA management, Asset Additions, Asset Transactions and DepreciationOn-line FA management, Asset Additions, Asset Transactions and Depreciation  Accounting and Financial Reporting General Ledger Accounting and Reconciliation, Period ClosingGeneral Ledger Accounting and Reconciliation, Period Closing Fiscal ReportingFiscal Reporting

7. Cash Management Commitment Management Budget Execution Budget Preparation Budget Review Fiscal Reporting Debt Management * Audit and Evalution Payment Management Revenue Management * *Interface with other systems Financial Management Cycle Fixed Asset Management *

8. Oracle APPS modules  Budgeting  General Ledger  Purchasing  Payables  Fixed Asset Management  Receivables  Cash Management  Financial Statement Generator  Spreadsheet tools (PSB Spreadhseet Integration, ADI Spreadsheet Integrator)

9. Design and Implementation of Information Systems  Secure countrywide Network infrastructure  Contract signed through a direct contract with Albtelecom Company.  On the implementation process:  end of july, end of september

10. Albanian MoF Integrated PFMS Network Topology Other Revenue Org. Public Procurement DoPA - HRMIS State Customs Service State Tax Administration Statistics Institute Line Ministries & Departments Audit Other Related Gov Agencies HRMIS Budget Process Revenues Procure-Payroll-IA Data Exc GovNet Tirana F/O conn. Regional Treasury Office District #n District #2 IP Network Countrywide VPN Regional / District Treasury Offices + Local Governments PSTN TC District #1 District #2 District #n District # 1 Dedicated lines (online connections) [e.g. Frame Relay] On demand lines (online/offline) [e.g. Dial-Up or ADSL] All regional / local offices Internet BCC PoP Backup Internet PFMS System Center Bank of Albania FMIS + BCC Treasury Single Account PoP Backup ISDN PoP MoF/Treasury Dedicated line Backup line F/O conn. Internet access Line Ministries and Gov Agencies in Tirana FMIS + Business Continuity Center F/O conn. Treasury / PFMS

11. – –Development of web based Application Software – –Oracle Financials Parameterized and Customized based on the Albanian Public Financial System April 2005-June 2006 Design and Implementation of Information Systems

12. – –Central Servers and field Hardware – –System and network management – –System safety / security and business continuity solutions Siemens Contract Siemens Contract March-July 2006 March-July 2006 Design and Implementation of Information Systems

13. Conclusions Development of the Albanian integrated State Treasury according to the best practices is a complex task, & Implementation of such wide spread changes would require:  Government commitment and management support at the highest levels to ensure that the change process is completed smoothly  Inter-institutions coordination and user involvement in system design  Start building institutional capacity and technical skills during preparation phase  Development of project management and technical support units within the MoF/Treasury for sustainability of implemented systems  Project implementation team must work as a separate group dedicated full time for the implementation of the project  IT staff full load dedicated during the implementation of such huge and very difficult process.