SPAN IFMIS Project in Indonesia


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Ministry of Finance
Republic of Indonesia
The World Bank

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SPAN IFMIS Project in Indonesia

  1. 1. ICGFM Winter 2011 Conference PFM in the 21st Century SPANIFMIS Project in Indonesia December 5 - 7, 2011 Washington, DC Ministry of FinanceTHE WORLD BANK Republic of Indonesia
  2. 2. SPAN Indonesia Roadmap of PFM Reform and SPAN Governance and Implementation Design of SPAN Plans for SPAN and IT Integration Page │02
  3. 3. SPANArea 1.9 m sq kmPopulation 240mGDP / Growth 2010 $700b / 6.1%Annual Budget $112bTotal civil servants 4.7mTreasury offices 200Spending units 29,000Treasury employees 11,000Spending unit employees 96,000 Page │03
  4. 4. SPANNew Laws: World Bank Supports PFM in Indonesia: Contracts for implementing SPAN• 1999: Decentralization law • 22 Dec 2004 to 2014: Government Financial Management • IVV (Independent Validation and Verification) consultant to• 2003: State Finance Law and Revenue Administration Program (GFMRAP), $60 assist project preparation and procurement• 2004: State Treasury Law million investment loan for implementing IFMIS (SPAN); • COTS and Systems Integrator (Turnkey) to deliver COTS• 2004: Audit of the management • 12 Oct 2006 to 2017: PFM MDTF Part I ($24 m) and Part II Solution; Infrastructure, DC & DRC; Telecom links; Cabling and accountability of the state ($10 m) grants to complement the WB GFMRAP and also • BPI (Business Process Improvement) consultant (2007-2011) finance to to support a broad range of PFM reform initiatives. • CMC (Change Management and Communication) • PMQA (Project Management and Quality Assurance) • SAKTI (Spending Unit Application developer) 1999-2004 2005-2009 2009-2011 and beyondCreation of new Directorate Procedural improvements to support PFM reforms: Continuous improvements to support PFM reforms:Generals : • Unified budget system: combined recurrent and • New program structure aligns Government programs with• DG Budget (budget formulation development budget organization structures and establishes clearer lines of and preparation) • Introduction of performance based budgeting and Medium accountability of the line ministries (budget users)• DG Treasury (budget execution Term Expenditure Framework (MTEF) • The new simplified budget document which focus on and treasury mgt - 2005) • Issuing Budget execution documents (DIPA) on time performance rather than detailed line item.• DG Fiscal Balance (management • Reforming business processes in the Treasury payment • Performance information (including its formulated target of transfer funds to the local offices (KPPN) through the establishment of pilot showcase and indicators) governments - 2006) offices that reduce payment processing time from 2 days to • Definition of the baseline and new initiatives• DG Debt Management sometimes 1 hour. • Calculating output based standard cost (SBU/ SBK) (management of foreign and • Establishing Government accounting standard and • Integration database between budget appropriation data domestic loans) reorienting the chart of accounts (DG Budget) and allotment data (DG Treasury)• DGSAM (management of state • Reforming the government procurement process (Keppres • Full implementation and expanded coverage of the assets and receivables - 2006) 80/2003) Treasury Single Account • MOF as one of the selected ministry to implement • Deepening and stabilizing cash plan and forecasting bureaucratic reform (BR) program • Faster and evenly spread budget disbursement Page │04
  5. 5. SPAN Page │05
  6. 6. Project Organization SPAN GOVERNANCE STRUCTURE OVERALL PROGRAM TRAINING MANAGEMENTQUALITY MANAGEMENT CHANGE MANAGEMENT Ensuring a greater chance of success in implementing SPAN • Project governance • Augmenting resources through consultants (IVV, PMQA, CMC) and help from World Bank Page │06
  7. 7. SPAN SPAN Scope COTS Functionality COTS Collaboration Management Hardware Budget Commitment Environment of Spending Solution Preparation Management Authority Systems LAN & Processing of WAN Payments GL & Chart of Software Cabling Government Management Accounts Receipts Maintenance Data Centre Cash Planning Reporting of Reference InformationDATA CHARACTERISTICS APPLICATION CHARACTERISTICS OPERATIONAL CHARACTERISTICS •Data Model •Derived Values Transfer •Single Security and PRESENTATION CHARACTERISTICS •Consistent Headings on •Common Definitions Between Modules Screens and Reports Rights Administration •Single Collection Point •Minimum Reconciliation •Consistent Navigation •Consistent Interface to •Universal Application Required to Ensure Data •Consistent Look and Feel External Environment Integrity for Screens and Reports •Implementation of New •Consistent Naming Conventions for Data •Consistent •Single Authentication Releases of Components Elements Customisation Tools and Handled Consistently Techniques •Common Job Scheduling •Common Data Dictionary •Code Shared Among •Common Set of Modules Hardware/Software/ •Shared Business Rules Communications Platforms/Protocols Page │07
  8. 8. SPAN Page │08
  9. 9. Project Organization SPAN COMMUNICATIONS PLAN ROLLOUT PLAN TRAINING PLAN TESTING PLANEmpowering and effectively using available resources• Detailed plans• Communicated well in time Page │09
  10. 10. SPAN• Ministry of Finance is implementing IT Shared Services• Business process of individual departments would be retained at the department level while common services would be managed by the MOF Shared ServicesObjective1. Optimise investments in infrastructure at MOF – both technological and operational2. Achieve economies of scale by implementing among others, virtualization technologies3. Consolidate scarce resources4. Increase integration between departments5. Focus towards IT Controls and Governance and Enterprise Risk Management MOF Shared Services will manage SPAN infrastructure in the newly consolidated data centre Page │010
  11. 11. SPAN PFM Reform is a long drawn process comprising of multiple change initiatives affecting regulation, process, systems and people IFMIS systems accelerate reform and must be chosen and designed well IT and program governance coupled with proper planning ensures a greater chance of success Resources need to be augmented IFMIS system creates an opportunity for further integration Page │011
  12. 12. THANK YOU