1. Implementation Methodology of the Integrated Public Financial Management Systems in Europe and Central Asia Cem Dener İstanbul, Türkiye 25-26 February 2008 Implementation Methodology of the Integrated Public Financial Management Systems in Europe and Central Asia Cem Dener İstanbul, Türkiye 25-26 February 2008

2. February 2008ECA Treasury / PFMS Projects1 Presentation Approach PFMS Implementation Methodology Integrated PFMS Development Phases ECA Treasury/PFMS Projects (updated) Treasury/PFMS Maturity Framework Challenges PFMS Implementation Methodology

3. February 2008ECA Treasury / PFMS Projects2 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

4. February 2008ECA Treasury / PFMS Projects3 PFMS Implementation Methodology 1. 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)

5. February 2008ECA Treasury / PFMS Projects4 PFMS Implementation Methodology 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)

6. February 2008ECA Treasury / PFMS Projects5 PFMS Implementation Methodology 3. 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

7. February 2008ECA Treasury / PFMS Projects6 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, acceptance Monitoring & Evaluation Capacity building & Change Management Warranty Establishment of a countrywide network Implementation PFMS take off Approval Fly Solo Support and Maintenance

8. February 2008ECA Treasury / PFMS Projects7 ECA Treasury / PFMS Projects 1995 2000 2005 2010 2015 AlbaniaP069939 PARP (TS)1993 AzerbaijanP066100 TIMS (TS)1998 Jan’08 HungaryP043446 PFMP (TS)1996 KazakhstanP037960 TMP (TS)1994 Slovak Rep**P069864 PFMP (TS)1992 GeorgiaP063081 FMIS (PFMS)1998 Kyrgyz RepP071063 TMIS (TS)1994 MoldovaP082916 PFMP (PFMS)1993 RussiaP064508 TDP (TS)1992 Türkiye*P035759 say2000i (TS+)1927 UkraineP049174 TSP (TS)1996 UkraineP090389 PFMP (PFMS)1996 TajikistanP099840 PFMP (PFMS)1997 Uzbekistan***P070084 PFMRP (TS)1999 TurkmenistanP034092 IBTA (TS)1992 CroatiaP050718 PFMP (TS)1992 Armenia**P081668 IDF (GFMIS)1996 Extension Implementation Prep.>Appr.>Effect. Treasury established in  Preparation Dropped AH DR CD AH, CD CD DR CDDR AH DR AH Ali Hashim DR Dominique de Roquefeuil WB Informatics Specialists involved: AH * The Bank funded the ICT consultant/prj coord only. ** The Bank funded the TA activities only. eGov starts eGov projects stall  World Wide Web Browsers Java  Web TV  Google  Wireless  Skype eGov recovery eEurope  Blogs  YouTube Completed In Progress Avg. completion time 7.1 yrs Avg. implementation 5.7 yrs Avg. compl. 7.2 yrs Avg. 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

9. February 2008ECA Treasury / PFMS Projects8 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

10. February 2008ECA Treasury / PFMS Projects9 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 ).

11. February 2008ECA Treasury / PFMS Projects10 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 Maintenance and Support  Budget funds  Technical capacity  System administration  Maintenance 7 9 – 18 months 9 – 18 months 18 – 36 months Resources Effectiveness Time Monitoring & Evaluation  Monitoring mechanisms  Project mgmt capacity 6 Maturity Framework for Treasury/PFMS projects www.pempal.org/pfmstool interactive monitoring and management of MF indicators

12. February 2008ECA Treasury / PFMS Projects11 ECA Treasury/PFMS Development Indicators

13. February 2008 ECA Treasury/PFMS Development Status Completed Started In progress 12ECA Treasury / PFMS Projects

14. Thank You