1. IFMS Scope & Implementation Strategy Ethiopia By Tedla Mulugeta IFMS Project Manager Nov. 11,2004

2. Historical Perspective  Legacy Systems 1960-1996 –Budget, Disbursement & Accounts System –Payroll System –Debt Management System –Budget Authorization –Budget Appropriation –Trade Statistics etc.

3. Problems Faced Lacks Accuracy & Not Timely :- Historical Data Delay in closing the yearly Books of Account Not Integrated No Standardization :- Different programming languages Requires highly Qualified Staff Huge Maintenance Cost Limited Users Highly Centralized

4. A Need For Integrated System  Highly Improved technology (1990s) –Affordability of PC technology –The Power and Ease of use –User friendly systems –Internet, LAN & WAN expansion

5. Government Initiatives (1996)  The Government Embarked on Civil Service Reform Program (5 programs) –MoFED is given responsibility to undertake The Public Expenditure Management & Control Sub Program 8 Projects were designed under the subprogram –Legal Frame Work –Budget Reform –Accounts Reform –Cash Management –IFMS –Internal Audit –External Audit –Accounting Profession

6. Project Proposal for IFMS  IFMS was delayed until The Budget & Accounts Reforms are well underway.  EU agreed to fund the Design study and Pilot Implementation of IFMS.  PWC was awarded to undertake the Design study. –Main Recommendations of the Consultant A Need for Single treasury Accounts (500) A move from single Entry to double Entry Book keeping Buy off the shelf Public Finance Package A need for a reliable Telecommunication Infrastructure. Revisiting the Legal frame work Capacity building both at the Federal & Regions etc.

7. Acceptance of The Recommendations –Most of the recommendations were accepted by the steering committee –The Business process & Tender Dossier prepared by the Consultant

8. Phase Approach for Implementation  1 st Priority Area –Core budget & Accounting General Ledger, Account Receivable Account Payable, Budget Execution –Revenue for public bodies –Cash Management –Interface with National Bank System

9.  2 nd Priority Area –Procurement –Interface with Payroll System –Interface with Budget Preparation System –Interface with Debt Management System –Interface with Inland Revenue System –Interface with Customs System

10.  3 rd Priority Area –Inventory System –Asset Management System –Budget System

11. Merger of Ministries (2001)  Ministry of Finance & Ministry of Economic Development merged (MoFED) –Change of Management  Devolution of Power to The Woredas (Districts)  CFAA reports for Re-assessment of IFMS  Fund Approved for the Pilot on Nov. 2002  Agreement Signed With MoFED on Sept. 2003  Supervisory Consultant Arrived on October 2004

12. Sense of Urgency  Top Priority of The Government –Expanding The Telecommunication Infrastructure Broad Band Connection For Major Cities –Currently available in 64k, 128k, 256k & 512k Woreda Net connection:- each Woreda (district) administration bureau is connected with 512k Band width ( 679 ) School Net Every Government High School (9-10 Grades) in the Country are Connected

13. The Challenge A Head  Federal :- 173 budgetary Institutions –Over 2000 trainees on Basic Computer Skills, & on the Financial Package –Over 1730 Nod Connections –Purchase of Computers, UPS,Printers, Switches etc. –Establishing 10 training Centers –Recruiting and Intensive training of 30 trainers –WAN connectivity for 173 Budgetary institutions and The National Bank –For over 30 IT specialized training including from the Regions –Over 50 Existing staff Intensive training on the package –Technical Support

14.  Regions, Zone & Woredas(districts)  Nine Regions, Two City Administrations& 679 Zone/Woredas –Over 4500 trainees on Basic Computer Skills & on the use of Financial Package –Over 4500 Nod Connections –Purchase of Computers, UPS,Printers, Switches etc. –Establishing 40-50 training Centers –Recruiting and training of 120 trainers –Connection with the Woreda Net & Broad Band –Technical support

15. Plan Of Implementation  Tender Semi- Turn Key for major Hardware, Operating System & Public Finance Package  Computer Basic Training & LAN installation separate tender (involving all capable companies)  Purchase of Computers,UPS & Printers  Contract Agreement with the Ethiopian Telecommunication & ICTA  Awareness Seminars & Workshops for top management and stakeholders.  Attractive salary for Contract employees (2yrs)  Top- ups for all employees involved in the Implementation of IFMS  Establishing Project team in every implementation sites  Establishing supervisory team at Federal & Regional level  First Priority Area complete role out of the system by December 2005

16. Thanks!