2. Overview of FCGO's IT Systems Technical Aspects of FCGO's IT Systems Data Flow of the Systems Functional Flow of the Systems Challenges and Way Forward Interaction

3.  Transaction Processing Systems (TPS): {Processes and records daily, routine business transactions/Provide inputs into management information systems}  DTCOs – District Expenditure Control System (DECS)  For Imprest Fund Release Procedure  For Treasury Single Account (TSA) Procedure

4.  Spending Units:  Computerized Government Accounting System (CGAS)  Revenue Accounting System (RAS)

5.  Management Information System (MIS): {Provides management with reports / on-line access organization’s overall current and historical performance}  FCGO - Financial Management Information System (FMIS)  Bespoke (Customized) Type of Software

6. DECS/FMIS Expenditure RevenueRetention

7. DescriptionsFMIS/DECS (New Version) Technology Web base Front-endDeveloper (Forms/ Report 10g) Back-end Oracle 11g database Operating System Client in DTCOs (Windows XP or above) Server in FCGO (AIX 6.1) Font Nepali Unicode

8. DescriptionsTechnical Requirements Client Computer Core i3 or higher At least 2 GB RAM and 320 GB Hard Disk Server Processor : RISC Power 7 with 4 Cores RAM/ Main Memory : 128GB DDR3- 1333 MHz Storage : 4 TB Tape Library : 16 GB * 20 Backup System for DataCluster, Mirroring Backup system for Electricity power Undisrupted Electricity Line of Singhdurbar 15 KVA UPS - 2, 10 KVA UPS -1, 6 KVA UPS - 1, 60 KVA Generator SecurityFirewall, Intrusion Prevention System Kaspersky Anti Virus, Bid Defender

10. Data Flow Management – Under Web based System using Intranet Lease Line and Optical Fiber FirewallIPS Server1 Server2 Storage 20 Districts (Including Kathmandu's 5 Paying Centers) 40 Districts DECS (TSA) 7 Districts DECS (Non-TSA) Optical Fiber Service Provider: Subisu Cable Net ADSL Service Provider: Nepal Telecom (Data Center)

11. Data Flow Management – Under Non-Web Based System MoF Data Sharing PC FCGO  Data Processing  Data Analysis  Data Finalization Data Retrieve PC FCGO Through  E-Mail  PC Anywhere (Telephone Line)  External Devices Through E-Mail  External Devices Summary File Backup File Transfer Summary File Main Database Server (FMIS) Upload Data Back up Statistics Analysis Section FCGO (8 Districts)

12. DECS (TSA) web base 60 Districts DECS (Non-TSA) web base 7 Districts DECS (Non-TSA) stand alone 8 Districts

13. Contd. Functional Flow Overview

14. Ministry/Department Authorization, Virement Allocation, Program Spending Units Request for release Cash Flow Statement Procurement Management Expenditure and accounting Payment Order 14, 14 ka TSA-DECS Functional Flow Local Bank: Cheque payment Preparation of statement of paid cheque and send to DTCO Nepal Rastra Bank Reconciliation and Settlement letter FCGO Treasury Admin Section FCGO Treasury Admin Section Daily Reimbursement DTCO Internal Work Flow Initial Require -nment Help Desk Release and payment Section Record Section Registra tion of Spendin g Units Uploadi ng the specime n of signatur e Entry of Authoriz ation/ Viremen t Payment Order reg. (Up to 12 noon) Cheque Release (Up to 2 PM) Release Set Signature verification Budget, Program and source verification Cheque prepare and sign Cheque handover to Help Desk (within 2 hours) Preparation of statement of issued cheque and send to Record Section Reconcili ation of Bank Stateme nt (up to 4 PM) Settleme nt and preparati on of report (up to 5 PM)

15. These Systems capture:  Released Amount & Budget Expenditure for Recurrent, Capital and Financing  Tax and Non-tax Revenue  Total Retention Money deposited with the Government and with others  Direct Payments & Commodity Grants  Debt Service

16. Challenges  Large fiscal activities remain outside the scope of these Systems  Determination of Treasury Position of the Govt  Reliable & Strong Communication Facilities  Power Irregularities  Continuation of Financial Resources  Need to establish well IT Infrastructure in FCGO and DTCOs  Confusion between Business Process & Technical Aspect  Resist with IT Initiatives  Lack of Sufficient IT Manpower  Lack of Training for Managerial & Technical Manpower  No Electronic Linkage between the System and Bank  Interface among the system, spending units and the Bank

17. IT Policy and IT Strategic Planning Integrated FMIS (Phase wise) Integration/Interface of the TSA- DECS with the Bank and CGAS & RAS IT Infrastructure with Complete Solutions (Power Back-up, Connectivity, IT Set-up, Networking – LAN & WAN etc) Capacity Building