1. THE INTEGRATED FINANCIAL MANAGEMENT AND INFORMATION SYTEM Joel Jones Kijalo Mwanza Assistant Accountant General United Republic of Tanzania

2. INTRODUCTION Background Policy issues Single Treasury Account IFMS Benefits The way forward

3. BACKGROUND Pre-IFMS period 1. Poor expenditure management 2. Accumulation of domestic debt arrears 3. Inconsistent reporting 4. Systems not talking to each other 5. Weak internal control system 6. Recognition of need for change

4. POLICY ISSUES Need to reign in excess expenditure and monitor revenue collection Need for institution of strict financial discipline Have a framework for accountability of public funds Strengthen financial and other controls

5. SINGLE TREASURY ACCOUNT Opening of a single treasury account at the Central Bank(1996) Closure of all ministerial and departmental accounts Central payment system(CPS) introduced Cheques issued centrally Automated and manual systems

6. IFMS July 1998-integrated financial management system started 10 MDAs connected to main server at Treasury via dedicated networked system Databases located at main server The rest of MDAs still operated on 1996 system Need to assess the efficacy and effectiveness of IFMS

7. IFMS (continued) July1998- all MDAs in IFMS Gov’t chart of accounts on GFS 2001/2002 all subtreasuries on stand alone IFMS Budget module/Active planner rolled out to MDAs 2002/2003 all regional MDAs on IFMS duly networked to the Subtreasury D-Base Introduction of commitment control Introduction of datawarehouse Upgrade of main server capability at the Treasury

8. IFMS (continued) Synchronization of legislation and practice Public Finance Act 2001 and accompanying Regulation Capacity building initiatives LGAs staff included in training since 2003/2004 1700 trained since 2001 todate

9. BENEFITS Significant improvement in reporting 1. Bank reconciliation now timely 2. Reports at touch of a computer key 3. Reports are customized to meet our needs 4. Final accounts generated in 3 months instead of the previous 4 months 5. National accounts in 4 months instead of 6

10. BENEFITS (continued) 48 MDAs are online and thus increased transparency 20 subtreasuries on IFMS MDAs in 20 regions are on IFMS No over commitments No suppliers domestic debts Budget numbers for 3 years online Final accounts 3 years online

11. BENEFITS More than 1700 staff trained Availability of financial alerts Improved internal control features 1. Audit trail 2. Time outs in accessing system 3. Use of passwords 4. Access limitation 5. The availability of system administrator

12. CHALLENGES Resources constraints 1. Lack of skilled staff 2. Lack of equipment 3. Inadequate financing 4. Backup 5. Sustainability 6. Power outages

13. CHALLENGES Commitment –management and staff Uncoordinated IT initiatives Geographical spread-telecom and travel Managing expectations-both internal and external (IT is not a cure all)

14. CHALLENGES Resistance to change Need for political support In-house struggles

15. WAY FORWARD Extend IFMS to other modules e.g Asset and Inventory modules Linkage with Local Government Authorities Consolidation of gains achieved so far

16. WAY FORWARD Disaster recovery site Further capacity building Updating of link between Sub Treasury and HQ