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Punjab resource management programme; intervention in finance department
Punjab resource management programme; intervention in finance department
Punjab resource management programme; intervention in finance department
Punjab resource management programme; intervention in finance department
Punjab resource management programme; intervention in finance department
Punjab resource management programme; intervention in finance department
Punjab resource management programme; intervention in finance department
Punjab resource management programme; intervention in finance department
Punjab resource management programme; intervention in finance department
Punjab resource management programme; intervention in finance department
Punjab resource management programme; intervention in finance department
Punjab resource management programme; intervention in finance department
Punjab resource management programme; intervention in finance department
Punjab resource management programme; intervention in finance department
Punjab resource management programme; intervention in finance department
Punjab resource management programme; intervention in finance department
Punjab resource management programme; intervention in finance department
Punjab resource management programme; intervention in finance department
Punjab resource management programme; intervention in finance department
Punjab resource management programme; intervention in finance department
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Punjab resource management programme; intervention in finance department

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  • 1. Punjab Resource Management Program;Interventions in Finance Department Jean-Marc Lepain, Public Finance Specialist Crown Agents DFID – TAMA September 2010
  • 2. Overall Strategy• To build on Phase 1 achievements• To build on the Strategic Vision already developed• To take a medium term view of what need to be achieved and to move forward that goal;• To aim at the maximum level of integration all the project components and deliverables• To consider systematically and in an integrated manner information flows, processes, systems and organization
  • 3. Activities that need to be carried over• Implementation of SAP templates• Further developments and fine-tuning of the Revenue Forecasting Model;• Implementation of measures for the reduction of the number of supplementary grants;• SAP/R3 trainingIssues: How much technical assistance is neededfor these activities?
  • 4. Reformulating Project Components and Areas of Intervention• Fiscal Sustainability and Resource Management• Budget Execution and Reporting• Organizational strengthening and capacity building
  • 5. I.Fiscal Sustainability and Debt Management
  • 6. Objectives• To move in 3 to 5 years to a completely integrated suite of system and processes from MTBF to Debt Management• To move from fire fighting mode to proactive management of cash resources,• To improve budget credibility
  • 7. Business Processes and Information FlowsFiscal Policy Revenue Forecasting CashManagement Cash Management Cash Management/ Borrowing Policy DebtManagement Debt Management Strategy
  • 8. Revenue Forecasting• Must be disaggregated by month• Must integrate provincial revenues• Must be in line with the MTBF
  • 9. Why Cash Management ?• To use cash management as the integrating factor of resource management;• To move from cash balance management to cash flow management to add predictability to budget execution;• To use cash management as a linking factor between fiscal policy and debt management through the borrowing policy;• To contribute to the smooth implementation of fiscal policy
  • 10. StrategyCash Management must be developed in twophases:• Cash flow management based on budget, historical trends and data available from SAP/R3• Cash planning based on cash-plans prepared by line-departments (could be done on a pilot basis, or outside the project scope)
  • 11. Deliverables• Annual cash plan prepared in advance of the fiscal year, setting out projected cash inflows and cash outflows month by month;• Three-month rolling projection revised month by month;• One month projection revised on a weekly basis including daily projection for the week.• Clear set of rules for prioritizing daily expenditures;• Linkage with commitment management.
  • 12. Debt Management• Debt Management Strategy including strategy for managing overdraft;• System requirements• System implementation• Training
  • 13. II. Internalization of the MTBFBudget Execution and Reporting
  • 14. Two aspects of internalization • Downstream (after consolidation of sector MTBF) • Upstream (before consolidation of sector MTBF)
  • 15. Down StreamMainly the responsibility of PGEIP• Introduction of sector ceilings• Fiscal Policy Paper• One single budget call circular• Porting the MTBF on SAP/R3 for reporting purpose
  • 16. Upstream• Budget Execution Review Report (mid-year and end-of-the year) to detect misalignments and bottlenecks in previous budget;• Strengthening sector policy analysis including the development of ‘Sector Profile’ and ‘Sector Policy Review’ for benchmarking the sector MTBS and covering non-MTBF departments;• Checking credibility of sector MTBFs against Medium Term Development Plans and sector policies;• Using consolidation process of sector MTBFs for adjustments;• Using the MTBF for projecting different fiscal envelopes for new development schemes.• Drawing consequences of the introduction of new functions on the organizational structure and workflows.
  • 17. Extension of SAP/R3 Reporting Capacity and internalization• A systematic gap analysis must be conducted to identify reporting limitations and negotiations must be started with PIFRA for customization;• Phase 1 templates must be implemented;• A clear IT strategy is required (SAP/R3 is not a budget preparation tool).
  • 18. Commitment Management• Revision of the process for commitment management and commitment control appears necessary;• Role of SAP/R3 in commitment management must be expended;• Linkage with cash management must be established.
  • 19. Disbursement Management• Introducing predictability• Streamlining control process while making them more efficient by integrating all stages of expenditure control;• Improving linkage with accounting, reporting, cash management through a better use of SAP/R3.
  • 20. THANKS

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