Presentation of Case Study on Chapter 6, from Management Information Systems, by Laudon Kenneth C. We made this presentation as per the course instruction under the tutelage of Mr. A. T. M. Jakaria Khan, lecturer of Institute of Business Administration, University of Dhaka.

1. Case Study:
Automation of
Treasury Department
In Karnataka
Government

2. Presented To:
Mr. A.T. M. Jakaria Khan
Lecturer, Institute of Business Administration
University of Dhaka
Presented By:
Md. Ariful Haque, Roll- 18, Batch -52D
Md. Sohan Haidear Siraji, Roll- 19, Batch -52D

3.  Government established in 1964
 216 treasuries functioning across
the state
 31 treasury offices and 185 sub-
treasury offices
 Annual Budget over Rs 27,000
crores

4. STATE GOVERNMENT
FINANCE DEPARTMENT
DIRECTORATE OF TREASURIES
DIST TREASURY 1
SUB TRY 1
D T 2 D T 31- - - - - - - - -
SUB TRY 2 - - - - - - SUB TRY 185

5. • State government transactions
• Salary Payment to 3,00,000 state employees
• Pension payments to 1M+ widows, disabled
people and retirees.
• Transaction services to 4500 village
administrators (panchayats)

6. • Lack of accountability, transparency and responsibility
• Long delays in payment
• Inefficiency in Information system management
• Lost trust among service takers for Fraud
• Manual operations required huge paper records
• Huge delay in updating budget and issuing payments
• Required large human resources (around 300) only for
budget allocation and financial calculations.
• Involves expenses classification errors
• Suffers data redundancy and inconsistency

7. Basic Information:
 An integrated financial management system
 Developed by CMC, a TATA enterprise
 Became fully operational in 2003
Technical Specification:
• Software: Oracle 8i as the Relational DBMS
• Disaster management: Oracle standby database technology
• Security: Password-based and role-based access
• Architecture: Consists of satellite segment, hub and remote
VSAT terminals

8. • Centralized Database
• Real Time Data update
• Eliminate data redundancy and inconsistency
• High efficiency, transparency and accountability
• Facilitates electronic tracking stamp for bills
• Maintenance of Bill Process Log for transactions
• Eliminate payment processing delay
• Online transactions, balance checking
• Automated customer service hotline and IVR
• Has been awarded ‘Silver Icon’ under the Professional Service
Category at the Ninth National Conference on e-Governance at Kochi
on February 2, 2006

9. Q-1: Why was it so difficult for the departments of treasury
to manage its operations?
 Millions of transactions and approvals daily
 Constant monitoring of budget allocations to avoid
overspending
 Lack of proper control and transparency
 Mountains of paper records during year end financial audit
makes employees overburden
 With nearly 100 departments sent their bills to treasury, it
involves huge delays in consolidating information, updating
the budget and payments

10. • What kind of challenges did the department encounter
when implementing Project Khajane? What management,
organization and technology issues had to be addressed?

11. • 2000 Employees had to be trained most of whom
were never exposed to using Information Systems
before
• A core team of 25 officers was trained thoroughly
by CMC team regarding the use of the application
software, preparation of accounts, system
administration, etc.
• At least one experienced officer was included in
this core team from each district. They acted as
nodal officers for training at the districts

12. • About 1400 staff members were trained in the basics of
computerization, mainly data entry and 600 officials on
use of application software
• About 75 officials were imparted with system
administrator training
• Refresher courses were provided for better retention

13. • Elaborate study of the existing system and deficiencies in it
by a committee headed by the secretary (Resources) had
to be done
• Defining the best practices: A Team of officers from
finance and treasury studied the Andhra Pradesh,
Maharashtra, Tamil Nadu, and West Bengal treasury
practices
• Finding and eliminating Redundant Processes
• The number of drawing officers was brought down to
around 21,000 from 40,000 as redundant processes were
cut

14. • The nightmare of updating the software versions in an
application containing 630 forms, 800 tables and nearly 300
reports without the support of an efficient network could
become a nightmare
• The pilot testing of the application software was carried out
in 5 sites, which covered all types of treasuries
• The feedback from the pilot run carried out for 6 months was
used to modify the software suitably.
• Networking of all the treasuries were great boon as hundreds
of minor and major modifications, bug fixings and
enhancements were carried out centrally, immediately all
other fields would get updated

15. • How did Project Khajane improve Decision making and
operations for the department? Are there benefits to
vendors, employees and pensioners?

16. • Managers can use the online system to check
budgets and expenditures
• So decision can be made about releasing funds
• System controlled budget check ensures that
managers can focus less on control and have more
time for Decision making
• Reports from all treasuries are now accurate,
uniform and easy to consolidate- so decisions
made are also reliable
• It generates state-wise/district-wise MIS reports
from the central server

17. • Bottleneck and Delay Payments have been removed
• Before,100% reconciliation of expenses to the
correct budget account was rare, but now it’s 100%
accurate
• Overdrawing never takes place anymore
• Freed up most of the 300 employees who used to
handle classification and consolidation of budget
allocation tasks and make related financial
calculation; now they are working on other tasks
• From 45 days, now it takes 2 days for bill receiving
at the Finance Department

18. • Directorate can prioritize bill payments based on a first-in,
first-out rule

19. • No more bottleneck and delay payment for customers and
pensioners
• Occurrences of Fraud dropped substantially
• Employees’ room for error has reduced, because system
automatically performs audit on entries
• No of complaints has reduced, both from vendors & other
departments
• Vendors can now check their payments by using their
unique tracking number and talking to Interactive Voice
Response (IVR) on the state’s customer service hotline
• As a result, there is no longer a queue of vendors in front
of office

20. Cost Item System Stat Drawing
Disbursement
Officer
Payee
Number of
Trips
Manual Mean 2.706 2.115
Computerized Mean 1.624 1.216
Waiting Time
(Minutes)
Manual Mean 63.157 60.058
Computerized Mean 21.759 24.667
Amount of Bribe
Paid (Indian Rs.)
Manual Mean - 233
Computerized Mean - 0
Other Amount
Paid to
Intermediaries
Manual Mean - 332.857
Computerized Mean - 0

21. • Do you think data warehouses could be useful in other
areas of the government sector? Which ones? Why or why
not?

22. • Public Hospitals
-Public Hospitals can create Data Warehouse for the
patients
-Using NID, patient’s individual health record and past
diseases, hospital stay, surgical operation etc can be stored
in the system for better diagnosis and overall treatment
• Banking Industry
- Already using
- But most banks are not using sophisticated software like
Oracle

24. • Education System
- To maintain and update academic and
other achievement of every students
over their years in the institution
- Very useful information for
employers, choosing scholarship
candidates and for higher
educational institutions
- Can also help understand new
teaching method/new book/new
teachers’ impact on class
performance

25. • Police Station
- All criminal records can be stored, retrieved and used
for both internal and external uses (Business
organizations can search for past criminal record of
interviewees or employees)
- Useful survey on Crime can be carried out on the
background of criminals and crime type/crime rate
- Geographical crime rate can be determined easily

27. • National Board of Revenue
- For Tax Calculation and Collection process
- Taxpayers will be given a login and password so they can
submit tax information regularly, making tax bills more
closely related to current performance.
- Integrating this software with Payroll system of
government and other organizations
- Reduce corruption and tax evasion
- Being implemented by UK government in 2020

28. • Sport Federations
- Can store the information of every
athlete and their performance record
- Easy to sort out the consistency and
quality of performance
- Efficiency of training method and diet
can be checked

29. • For Tender & Contracts for Construction
- Keep track of people who are responsible
- Performance of Contractors can be compared
- People can be held accountable
• Tourism:
- Data Warehousing for Tourism can help the government
understand seasonal pattern of the tourists, demand for
hotels, types of hotel rooms, etc.
- Used in Australia and other countries

30. Thank You!
Any Questions?