0. SISTEM PERBENDAHARAAN & ANGGARAN NEGARA (SPAN/e-Budgeting)
Bobby Nazief
Staf Khusus MENKEU bid. Teknologi Informasi

1. PUBLIC FINANCIAL MANAGEMENT (PFM) REFORMS IN INDONESIA
Key financial management reform objectives
Improve institutional image through adopting principles of Good Governance
Strengthen fiscal control
ensure effective implementation of the budget allocations
greater transparency in government financial management.
The DPR enacted several laws to support the reform objectives
State Finance (Law 17/2003)
State Treasury (Law 1/2004)
State Audit (Law 15/2004)
An Integrated Financial Management Information System (IFMIS) is essential to introduce and sustain these reforms
IFMIS will be implemented through Sistem Perbendaharaan dan Anggaran Negara (SPAN)

2. SPAN AS THE FOUNDATION FOR PFM REFORMS
Accounting and Budgetary Reforms:
Integrates budget execution across ministries, as required for MTEF and Performance Based Budgeting reforms
Provides the ability to maintain a centralised General Ledger (GL) system for all Government agencies
Provides the data integrity, flexibility and consistency required for modernization of accounting, budgeting and reporting
Provides a “single window” electronic interface for other systems such as payroll, debt management, procurement, and audit.
Organizational Reforms:
Operationalizes the business process reforms underway in KPPNs
Executes processes and applies controls with minimal manual intervention, allowing personnel to focus on analysis and strategy
Banking and Cash Management Reforms:
Enhances the benefits of TSA reform.
Automates bank reconciliation and enables electronic interfaces between banks and treasury offices.
Enables Treasury participation in BI’s payment system reforms and provides real time information to BI for monetary policy and debt management

3. MANAJEMEN DIPA PEMBAYARAN PROSES PENERIMAAN PENYUSUNAN ANGGARAN
SPAN CONTEXT
LINE MINISTRIES
EXTERNAL LINKS
RKA-KL
DIPA
BANK INDONESIA
RTGS
BIG-eB
SSSS-TERMINAL GL
MANAJEMEN
DIPA
PEMBAYARAN
PROSES
PENERIMAAN
PENYUSUNAN
ANGGARAN
PELAPORAN
KOMITMEN
S P A N
KAS
SISTEM AKUNTANSI
INSTANSI
SISTEM
PERBANKAN
KOMITMEN
SPM
MAIN USERS
DATA PROYEKSI:
PENERIMAAN
PENGELUARAN
DJPBN:
PUSAT
KANWIL
KPPN
SISTEM AKUNTANSI
BARANG MILIK NEGARA
DJA
SPAN is the tool that will enable the key transformation of DG Treasury business operations through integration and automation of its business processes and realignment of the overall organisation structure to improve productivity, efficiency and reliability of outputs. SPAN will provide:
A reliable cash management system which will enable the preparation of cash flow forecasts and plans
Delivery of efficient financial services to all sectors of government, to suppliers and to the banking network through the Central Bank
Maximization of the use of the developing banking infrastructure in Indonesia in collecting revenues and delivering services
Effective control budget allocation, expenditure commitments, and spending limits
Capture of payment data at source, with data being entered once only, and online transfer to centralized and consolidated databases
Maintenance of comprehensive and reliable centralized databases of all government financial transactions, covering the full range of financial processes from budget preparation, allocation, commitment, spending, accounting etc; provide an associated budget rules database
A comprehensive reporting system that enables reliable management reports on government financial operations to be generated in real time enabled by modern information systems and made available to all stakeholders
Readily accessible and complete data records of all financial operations to enable full and comprehensive audits to be conducted using electronic audit tools
Comprehensive online capabilities to Line Ministries and other agencies to enable them to submit information electronically and interrogate online centralized databases to access their information
Progressive transition to accrual based accounting systems, as mandated by the State Treasury Law
Fully automated treasury operations, reporting and accounting
MOF
OTHER USERS
SISTEM PENGELOLAAN
& AKUNTANSI UTANG
UNIT ESELON 1
DEPKEU
SISTEM PENGELOLAAN
& AKUNTANSI INVESTASI
DEP. TEKNIS
BAPPENAS
AUDITOR:
IRJEN
BPK
BPKP
MODUL PENERIMAAN
NEGARA (MPN)‏
DATA PROYEKSI:
PENERIMAAN
PENGELUARAN

4. CORE FUNCTIONAL PROCESSES & INFORMATION FLOWS
Directorate
General of
Budget
Line
Ministry
line ministry
reconciles
information
from Treasury
and SUs to
prepare
departmental
accounts
Spending
Units
Central
Bank
(TSA)
Treasury
Treasury Units
(KPPN) C O M E R I A L B N K S
4. Spending
Unit forwards
payment
request to KPPN
6. KPPN
processes SU
requests
3. Treasury
enters initial
budget appropriations,
allotments, cash limits
and in year
transfer data to
Treasury system
5. Internal audit performs on line
and concurrent verification
of sample transactions
as they are processed
by the KPPN
9. DIEA
accesses
system to
Produce reports
Accounting Reports
Accounting
reports
from
Unit
7. Treasury
system
passes
transaction to
the
Interbank
clearing
system-RTGS
10. Treasury produces
consolidated
fiscal
reports from
the Treasury system
Other Stake
Holders
11. Treasury produces
Budget execution
for other stake holders
1. Budget
Appropriations
Banking
Network
DIEA
2. DG- Treasury
approves
Budget allotments
and cash limits for
subordinate units
Internal audit section
8. Treasury
receives
information on
Deposits
in TSA ( e.g.
tax and Revenue
Receipts,
broken
down by
individual
transactions
via RTGS
Tax
payers
Suppli
ers
Kanwil/KPPN Access to
zero balance
accounts in
Commercial banks
for cash disbursements/deposits
SPAN

5. BENEFITS TO KEY STAKEHOLDERS
The Directorate General of Treasury in the Ministry of Finance, and its regional offices to undertake budget implementation, including payment processing, and perform associated accounting functions, including reporting in a near real-time manner;
The Directorate General of Budget and Fiscal Balance of the MOF to obtain the status of actual expenditures to enable budget monitoring and assist in budget preparation for out years;
The Cash Management Department of the Directorate General of Treasury to provide the information it requires for cash management;
Line ministries and agencies, to access financial information and reports pertaining to their organization;
By the Government auditing organizations (BPKP and BPK) to access financial transaction data for auditing purposes.

6. KEY BENEFITS OF SPAN - SUPPORTING BUDGET & TREASURY OBJECTIVES (1)
SPAN is the tool that will enable the key transformation of DG Treasury business operations by providing:
A reliable cash management system which will enable the preparation of cash flow forecasts and plans.
Effective control budget allocation, expenditure commitments, and spending limits.
Capture of payment data at source, with data being entered once only, and online transfer to centralized and consolidated databases.
Maintenance of comprehensive and reliable centralized databases of all government financial transactions, covering the full range of financial processes from budget preparation, allocation, commitment, spending, accounting etc; provide an associated budget rules database.
A comprehensive reporting system that enables reliable management reports on government financial operations to be generated in real time enabled by modern information systems and made available to all stakeholders.

7. KEY BENEFITS OF SPAN - SUPPORTING BUDGET & TREASURY OBJECTIVES (2)
Readily accessible and complete data records of all financial operations to enable full and comprehensive audits to be conducted using electronic audit tools.
Comprehensive online capabilities to Line Ministries and other agencies to enable them to submit information electronically and interrogate online centralized databases to access their information.
Progressive transition to accrual based accounting systems, as mandated by the State Treasury Law.
Fully automated treasury operations, reporting and accounting.

8. BASIC OBJECTIVES OF SPAN
Control: over the Government’s budget and the assets and liabilities of government; and
Reporting: comprehensive, reliable and timely information on the financial position of the Government so as to facilitate government financial management.

9. SPAN FUNCTIONS Budget Preparation Management of Spending Authority
Commitment Management
Payment Management
Processing of Government Receipts
Cash Management
General Ledger & Chart of Accounts (CoA)
Reporting
Maintenance of Reference Information

10. Current Systems
RKA-KL
DIPA
SP2D
Reporting
Systems are aligned according to business functions (e.g. RKA-KL for Budget Planning and SP2D for Budget Execution)
Data is owned by applications and requires manual re-entry
People specialise in use of a single application
There is lack of integrated reporting
It is difficult to reconcile information from different systems for an accurate and reliable view 11

11. SPAN AS THE FOUNDATION OF IFMIS
Reporting
Financial Statements, Annual Reports, Management Reports, Stakeholder Reports
Debt Management System
Core Accounting System
General Ledger Accounting
Financial Reporting
Treasury/Cash Management Bank Reconciliation
Central/Commercial Bank
Payroll
Audit
Human Resources
BUDGET PREPARATION ENHANCEMENT
Macro-economic
Forecasts
MTEF Preparation
Performance-based Budgeting
Budget Cycle
Budget Preparation
Budget Allocation
Budget Commitment
Budget Execution
Pensions
Fixed Asset Management
Stores and Inventory Management
Accounts Payable
Government Receipts
Customs and Tax Revenue
Procurement
Purchasing
Revenue Management
Audit

12. LEGENDS Core Elements of SPAN Additional Subsidiary Ledgers or Modules
Feeder Systems
Audit
Ledger Data and Information Flows
Budget Data and Information Flows

13. SPAN WILL ALLOW INTEGRATION AND STANDARDISATION OF BUSINESS PROCESSES
Budget Planning to Budget Execution
Satker
RKA-KL
DIPA
SP2D
Reporting
The SPAN solution will be aligned according to business processes
The SPAN solution will encompass and cut across organisational functions
SPAN will allow many features to be accessed by different people
Boundaries between applications will become blurred through automated integration with systems like MPN, Debt Management, Investment Management, Asset Management
Standardising User Interfaces and Application Interfaces will allow faster, better integration of processes across business functions.

14. SPAN INFRASTRUCTURE

15. SPAN TIMELINE Funded by World Bank 2-Stage Bidding Procurement:Q3 Q4 Q1 Q2
2008
2009
2010
2011
2012
2013
Funded by World Bank
2-Stage Bidding Procurement:
1st Stage: October ’05 (IFB-01/GFMRAP/2005)
2nd Stage: April ’08 (IFB-02/GFMRAP/2007)
2nd Stage (re-do): October ‘08
Improvement of Business Process &
Financial Management
Assess-ment & Planning
COTS Fit-Gap Analysis
COTS Configuration
COTS CRP
COTS Pilot
COTS Roll-Out
Change Management & Communications