Intergrated Financial Managemant Systems (IFMIS).

GOVERNMENT SIGNS IFMIS CONTRACT WITH SOLUZIONA, SPAIN

The Government through the Ministry of Finance and National Planning signed a contract with Soluziona, Spain for the supply, installation and implementation of the Integrated Financial Management Information System (IFMIS) Project in Zambia for about US$24million. The contract was signed on 15th November 2006 by Dr Mbikusita Lewanika the Permanent Secretary (Financial Management and Administration) in the Ministry of Finance and National Planning and Mr Luis Galiana, Director Soluziona Africa Region. This means that the implementation of IFMIS has commenced with immediate effect and will take three years to complete with effect from date of contract signing.

Finance Permanent Secretary M.Lewanika during the signing ceremony of IFMIS and Director Sub-Sahara Africa Luis Galiana (soluziona)

The IFMIS is a component under the Public Expenditure Management and Financial Accountability (PEMFA) Reforms which Government launched in June 2005. The PEMFA reform programme itself is one of three pillars of the Government Public Sector Reform Program. The PRSP is aimed at improving the quality of service delivery in the Zambian public service arena.

The initiative to embark on the IFMIS Project was as a result of the problems which Government identified in the current Financial Management Information Systems used for both managing financial resources and decision making. These problems have affected performance of Government financial management systems resulting in recurrent appearance of controlling Officers before the parliamentary Public Accounts Committee.  

The lack of an integrated financial management and information system has also resulted in the proliferation of difficulties related to program implementation, monitoring and evaluation. Specific problems identified are; 

1. inadequacy in the financial management and information system of the public service;
2. insufficient integration between various parts of the Financial Management and Information system processes because of being predominantly manual;
3. the current disintegrated financial management and information systems which are based on manual operations, fail to sufficiently support controls and transparency in the financial management processes and reporting systems in the public service. This has led to incessant cases of poor record keeping of financial transactions and tracking systems in the public service.

The problems identified above undermine Government’s ability to strategically manage public financial resources. Therefore, Government with support from Cooperating Partners designed the Integrated Financial Management Information Systems (IFMIS) Project. The strategic focus of the IFMIS project will be based on improving the acquisition, allocation, utilization and conservation of public financial resources through an automated and integrated information system. The IFMIS conceptual design comprises of thirteen (13) modules which include the consolidation module, the general ledger, payment/accounts payable, receipting and accounts receivable, budget, cash and revenue management, project accounting, audit, procurement, stores, fleet, assets and debt management. 

The introduction of IFMIS in the public service will facilitate:

1. fiscal discipline;
2. allocation of resources in accordance with policy priorities;
3. assist Government to effectively report and monitor performance against budget; and,
4. support good decision-making by providing up-to-date and complete information.

This would enhance accountability, transparency, cost effective public service delivery and poverty reduction leading to an improved stakeholder confidence. The expected benefits of IFMIS implementation include the following:

1. Improved acquisition, allocation, utilization and conservation of public financial resources;
2. Improved quality of the financial management information to support policy and decision making in Government;
3. Simplification of work effort and cost effective public service delivery by automating routine manual processes and avoid costly duplication of effort;
4. Strengthening of internal controls by      computer aided audit trails and enforcement of financial discipline             through inbuilt system controls to curb wastage such as overbuying, misapplication, misappropriation and payment for under delivered or delayed delivery of goods and services;
5. Enhanced accountability and     transparency ;
6. Improving stakeholder confidence in      the management of public financial resources ;
7. Enhancing efficiency, effectiveness         and economy thus freeing up     resources for other poverty reduction programs.

The IFMIS implementation comprise of three phases: pilot implementation; rollout implementation; and interface with other Government organs. 

Pilot Implementation

This phase will take about 15 months to implement and two months post-implementation review. The pilot phase covers eight (8) sites namely: Ministry of Finance and National Planning (Lusaka); Ministry of Education (Lusaka); Ministry of Works and Supply (Lusaka), Ministry of Foreign Affairs (Lusaka and Mission Abroad); Ministry of Communication and Transport (Lusaka); Office of Auditor General (Lusaka); North Western Province (Solwezi) and Eastern Province (Chipata). Each pilot site shall have local area network (LAN), SAP software application (IFMIS software) with network based servers and Metropolitan Area Network (MAN)/ Wide Area Network (WAN) link to the Ministry of Finance and National Planning. The WAN infrastructure will be available for Ministries to communicate and exchange information with other ministries at no cost to them. The Ministry of Finance will have a Data Centre with an Internet link to an Internet service provider using appropriate communication technology/equipment with Link of over 128k. In addition domain hosting, Web server and intranet services will be provided. This will reduce the Internet cost for each ministry and this will be centrally managed. This phase will include interface with Debt Management System, Payroll Management Establishment Control (PMEC), Commercial Banks, Zambia Revenue Authority, and Bank of Zambia. 

Roll out implementation

This phase will take 19 months to implement. The rollout phase will cover the remaining 40 Ministries, Provinces and Spending Agencies (MPSAs). Each MPSA shall have a LAN, at least 20 computers, SAP software application, link to Ministry of Finance through a MAN/WAN and shall have other supporting tools. Use of appropriate MAN/WAN technologies taking into account existing local available technologies which are currently in use by other GRZ initiatives. The implementation of SAP software in the rollout will be based on REPLICAS of the unique model developed and implemented in the pilot phase 

Interface other Government organs

This phase will take 7 months and will be implemented concurrently with the rollout phase. This phase will involve developing and implementing interfaces with local authorities (Councils), other grant aided institutions and parastatals. 

Soluziona

Soluziona is one of the largest consulting firms in Spain and Europe with an average annual turnover of over US$880 million for the past 5 years. Soluziona is 100% owned by Union Fenosa which is listed at the stock exchange for the Euro 10billion. Soluziona was started by Union Fenosa in 1985 to provide ICT technical support and institutional transformation to the Union Fenosa. Soluziona has now restructured its business to focus on valued added technological services not only to the group but also to other companies, industry and Government in consulting, engineering, telecommunications and quality services. Soluziona has offices in 28 countries and provides services in consulting, technological solutions, IT and outsourcing solutions. The industry-specific solutions include Governments, utilities and energy, telecommunications and media, financial institutions. Soluziona has 5,500 employees with 4,000 professionals in IT related disciplines. Soluziona has software factory/ technological centre at the University in Ciudad Real as part of capacity building and collaboration with the University. 

Conclusion

The People of Zambia and taxpayers will directly benefit from the IFMIS project because IFMIS will contribute to cost effective public service delivery, economic growth and poverty reduction efforts. 

The enforcement of financial discipline through inbuilt system controls, the Zambian Government will curb wastage, leakages and fruitless expenditures such as overbuying, misapplication, misappropriation and payment for under delivered or delayed delivery of goods and services. This will bring about reduced annual incidence of loss of government resources in ministries, provinces and spending agencies.   

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