Public Financial Management System (PFMS) is designed to
support all financial operations,
collect accurate, timely, complete, reliable and consistent information on all public financial events,
provide adequate management reporting,
support government-wide and agency policy decisions,
produce auditable financial statements.
Public Financial Management Cycle Asset / Inventory Mgmt Procurement/ Purchasing Mgmt of Budget Authorizations Commitment of Funds Payments and Receipts Mgmt Cash Management Debt and Aid Management Budget Review & Fiscal Rep. Audit and Evaluation Budget Preparation 1 2 3 4 5 6 7 8 Policy Development and Review 0 Budget Execution Payroll Calcs HR Mgmt F M I S Web Publishing PFMS DB
Modern integrated PFM systems are designed and implemented as
Implementation of the PFMS includes the following ICT components:
 Establishment of countrywide network connections (communications lines) as Government contribution
 Development of web-based Application Software (ASW) as a combination of customized package + locally developed software
 Installation of central servers (database & application servers) and data storage units (fiber disk arrays) at the main system center & business continuity center
 Installation of standard field hardware (domain servers, user workstations and peripherals) in central and field offices
 Installation of network equipment , system and user management and engineering support solutions
Completion of countrywide network (physical) connections  by the Government is a precondition for signing the contracts with suppliers.
Technology Architecture 3-Tier Web-Based Local Server Firewall D atabase Server (s) MoF / Treasury District Offices District Offices Spending Units Application Servers Web Server Collection Point (city center) FR line FR line Spending Units Internet Virtual Private Network Tunnelling Encryption Special DU lines for towns PCs / Thin Clients [ 2 ] Central Servers [ 3 ] Field Hardware [ 0 ] Wide Area Network District Offices [ 4 ] Network Equipment [ 1 ] PFMS Application Software PFMS DB MSC : Main System Center BCC : Business Continuity Center B C C 1 2 M S C 3
Web Based PFMS Model User Terminals System Center Database Server Application Servers Users Web Server Internal Audit Payroll Calcs. Asset/Invent Mgmt Budget Preparation
Core Treasury System
HR Mgmt/Pers DB Org/Workflow Mgm Web Portal COTS LDSW Internal + External PFMS Opr sup for locals COTS DB MoF, TDOs, Central Line Ministries and Gov Agencies Local finance directorates, local public authorities, municipalities Internal Access External Access LDSW DB LDSW : Locally Developed Software COTS : Commercial Off-The-Shelf SW VPN Internet 1 2 3 Interfaces PFMS DB
PFMS Functional Modules and Beneficiaries Integrated PFMS model proposed for Ukraine T Transactions P Plans C Contracts A Accounts R Reports I Interface TSA Treasury Single Acct Spending Units Local finance directorates, public authorities, municipalities, public institutions [ ~50,000 ] Integrated PFMS Ministry of Finance Treasury IT Dept FMIS + Business Continuity Center MoF IT Dept I I I State Property Fund MoE - Public Procurement Dept Internet & Intranet PFMS Web Portal External Users Reports Reports T, P T, C T,P,C,A Main Civil Service Department Internal Audit I P, R Payroll Calcs. Asset/Invent Mgmt Line Ministries & Departments P, R K R U Reports Reports Debt Mgmt Budget Formul. PFMS Mgmt. Center I State Customs Service T, P I State Tax Administration T, P
Core Treasury System
Acct for localities
Macro Econ Forec Treasury / PFMS BCC + Data Warehouse Statistics Institute I P, R HR Mgmt/Pers DB National Bank of Ukraine TSA 27 Oblast Treasury Dept 640 Rayon Treasury Div AS Kazna I Other Gov Agencies/Depts T Financial Reports
Typical PFMS Network Infrastructure District #n District #2 IP Network Countrywide VPN Regional / District Treasury Office PoP PoP PoP MoF PSTN TC TC TC TC Dedicated line Backup line F/O c onn . Backup ISDN-PA District # 1 District # 2 District #n District # 1 Dedicated lines (online connections) [e.g. Frame Relay ] On demand lines (online/offline) [e.g. Dial-Up or ADS L] All regional offices Internet access Line Ministries and Gov Agencies in Kiev Internet PoP FMIS + Business Continuity Center PoP Treasury PoP Backup Interne t F/O c on n. F/O c on n. PFMS System Center Regional Treasury Office MAN Kiev Metropolitan Area Network State Property Fund MoE - Public Procurement Dept Main Civil Service Department State Customs Service State Tax Administration Statistics Institute Line Ministries & Departments K R U (Internal Audit) Other Related Gov Agencies HRMIS B udget Process Revenues Procure-Payroll-IA Data Exc FMIS + Business Continuity Center PFMS System Center Treasury / PFMS FMIS / Data Warehouse + BCC
Central servers (database and application servers) and main networking equipment located at System Center (SC).
A disaster recovery solution is highly recommended. Treasury head office (system center) can be connected to the Business Continuity Center (BCC) through a separate fiber optic line.
BCC servers can be used to host the Data Warehouse (FMIS) to avoid overloading of operational servers at system center.
Central network and system management tools.
Workstations, servers and peripherals for treasury district offices.
Information and Communication Technology
Information and Communication Technology Application Servers Treasury Head Office Tape Backup Business Continuity Center Cluster Sys Mgmt Sys Admin 10/100/1000 Switch VPN Router Support Call Center Router IP network 10/100/1000 Switch Tape Backup FDA Sys Mgmt Security Admin Router S D H 1000 Mbps 100 Mbps 100 Mbps Load Director S D H F/O Ring F/O Ring LAN Backbone WAN Backbone F F F Firewall S D H DB Server DB AS S D H Fiber Disk Array Load director Typical System Centers and Central Servers
Network solution for a web-based system [ on-line operation ]
All Treasury District Offices (TDOs) are connected to the central Treasury office located at the center (usually within the MoF).
A Virtual Private Network (VPN) is established to form a secure intranet in which all public financial data can be transmitted in encrypted format.
This VPN is also used as the main communication platform of the Treasury/MoF offices by providing e-mail services, internet access and other utilities.
Voice over IP (VoIP) services can be utilized to reduce internal telecommunication costs of the Treasury/MoF offices.
Solution for the spending units of line ministries and local gov [ off-line / on-demand ]
Selected spending units and local gov units can be connected to nearest TDO through off-line or on-demand [e.g. Dial-Up (DU) or Asymmetric Digital Subscriber Line (ADSL)] connections to enter transactions and to get their financial reports.
ICT - Network
Information and Communication Technology THO IP Network Internet Router Firewall Web & security server WWW, FTP, Mail DB and Application Servers 100 Mbps S D H S D H Router Router AAA Server 10/100/1000 Switch Gatekeeper (VoIP) Router PSTN Dial Backup Server Router VPN Router BCC F/O Ring PBX Fax Tel 2 x PRI H.323 Router Digital Voice Router LAN Backbone WAN Backbone NW management system Network Security VoIP System HS Modem MoF HO internal users Business Continuity Center S D H S D H Typical Central Network Equipment
Development of the core treasury system is an important milestone for the implementation of a countrywide Public Financial Management System ( PFMS ), which enables integration and exchange of information available in various systems (e.g. Treasury, Tax, Customs, Central Bank) developed by different agencies.
The Financial Management Information System ( FMIS ), as the main decision support and monitoring system for public finance, is based on centrally available information gathered from all important components of the PFMS.
Development time for a fully functional treasury system in some transition economies and developing countries varies between 3 to 5 years . Large scale implementations of the treasury systems may take even longer.
Total cost of ownership of treasury system implementation depends on a number of factors, such as institutional capacity, scope, desired functionality, number of users and implementation method.