The document discusses Indonesia's Integrated Financial Management Information System (IFMIS) project called SPAN. The goals of the SPAN project are to modernize Indonesia's financial management systems by creating an integrated treasury management system and centralized database. It will connect the Ministry of Finance, treasury offices, spending agencies, and banks online. Critical issues include clearly defining roles and responsibilities for the many stakeholders and continuing efforts to develop staff skills and strengthen institutions.

1. Integrated Financial Management
Information Systems (IFMIS)
Presented by:
Rio Agung
Rohmad Adi Siaman
Roid Taufan
Susanto Eko
Vita Apriliasari

2. • Concept of an Integrated Financial Management
Information System (IFMIS)
• Public Financial Management (PFM)
• IFMIS in context of PFM
• IFMIS architecture
• IFMIS costs, benefits and risks
• IFMIS – The Indonesian Government Experience –
SPAN (Sistem Perbendaharaan dan Anggaran Negara)
• Problems and Issues

3. • An IFMIS is a tool to support Public Financial Management
• An IFMIS is a computer software (ICT) application
– Off the shelf package or
– Custom developed
• Provides core public financial management functions, e.g.
– Budget
– Accounting
• Key feature - Integration between modules
Generally, the term “IFMIS” refers to the use of information and
communications technology in financial operations to support
management and budget decisions, fiduciary responsibilities, and the
preparation of financial reports and statements.

4. In the government realm, IFMIS refers more
specifically to the computerization of public
financial management (PFM) processes, from
budget preparation and execution to accounting
and reporting, with the help of an integrated
system for financial management of line
ministries, spending agencies and other public
sector operations.

5. The system served by an IFMIS

6. Public Financial Management - National Level
Fiscal
planning &
manageme
nt
Budget
preparatio
n &
enactment
Budget
execution –
revenue
raising,
expenditure,
loans
Transaction
accounting,
recording and
reporting
External
audit and
external
review
Information
feedback

7. PFM boundaries
Public sector
Financial
institutions
Central
bank
Other public
and private
sector banks
Non financial
public sector
Public
Corporations &
other entities
Government
Union
Government
Sub-national
State
Government
Boundaries of national
government for PFM

8. Goals Criteria
Level 1 – Fiscal management
• Flows – revenues, debt, transfers,
capital and recurrent expenditure
• Balances – internal & external debt,
assets
• Risk – contingent liabilities
Proper use of public resources
• In accordance with constitutional, legal
& regulatory requirements
• Avoidance of corrupt practices
Level 2 – Resource allocation
• Optimal resource allocation
• In accordance with government
policies
Transparency
• Information for stakeholders in a
format that facilitates understanding
and analysis
Level 3 – Value for Money
• Management of public resources in
order to achieve efficiency, economy
and effectiveness in expenditure
Accountability
• Those responsible for the use of public
resources made accountable for their
actions and stewardship

9. • Fiscal Management:
– Aggregate fiscal position and risk are monitored and managed.
• Budget Realism:
– The budget is realistic and implemented as intended in a
predictable manner.
• Comprehensive, Policy-based Budget:
– The budget captures relevant fiscal transactions, and is prepared
with due regard to government policy.
• Information:
– Adequate fiscal, revenue and expenditure records and
information are produced, maintained and disseminated to meet
decision-making, control, management and reporting purposes.
• Control:
– Arrangements are in place for the exercise of control and
stewardship in the use of public funds.
• Accountability and Transparency:
– Arrangements for external transparency and scrutiny of public
finances.

10. Level 1 –
fiscal
management
Level 2 –
resource
allocation
Level 3 –
value for
money
Proper use
resources
Transparency
Accounta-
bility
Goals Criteria
Budget
Realism
Comprehen-sive,
Policy-based
Budget
Fiscal
Management
Information Control
Accounta-bility
and
Transparency
IFMIS can
provide
Budget
preparation within
framework of
sound model &
ability to test
scenarios
Up to date
information
Use of
automated
controls
Reduce costs
of transaction
processing

11. How IFMIS can contribute to PFM goals
Goal Benefit IFMIS How realised
Fiscal
management
1. Enhanced ability to manage
cash, debt and liabilities
2. Better management of fiscal
risk
1. Up to date and predictive disaggregated
information on monitory flows and balances
2. Information on current and predicted
contingent liabilities
Resource
allocation
1. Historic information on
expenditures & impact
2. More realistic budget
modelling process - impact
decision alternatives can be
assessed
1. Up to date information on expenditures
analysed as required so as to link to
outcomes
2. Budget prepared using a tool that realistically
models relationships, is based on reliable
information on starting points, and enables
alternative scenarios to be modelled
Value for
money
1. Reduced financial transaction
cost
2. Management decisions made
more efficiently
3. Comparison of costs
between units/activities and
performance targets leading
to greater efficiency
1. Provision to managers of up to date financial
information enables them to use resources
more efficiently
2. Disaggregated information linked to
performance targets enables improved
performance measurement and comparison
between units/activities

12. The IFMIS balance
Costs and risks
• Financial cost – US$12 m
• Time and effort – 5 – 9 years
• Risk –
- implementation failure
- inadequate functionality
- lack of sustainability
Benefits
• Must outweigh costs/risks

13. • Legal framework
• Business/functional processes
• Organizational arrangements
• Budget classification structures
• Chart of accounts
• Change Management
• Systems requirements/specifications
• Systems development
• Procurement/tender of software and hardware
• Configuration of software and hardware
• Data conversion/migration
• Testing and training
• Corruption

15. • the roles and responsibilities of the treasury, ministry of
finance and other agencies involved in controlling and
managing public finances,
• provisions on the receipt and custody of government funds,
the annual process, submission and approval of estimates
and procedures for release of funds,
• the basis of accounting and the form and procedures for
presentation of annual accounts, and
• provisions on asset management, borrowing and investment.

18. Overview of IFMIS architecture
Budget execution
Cash collection
Payments
Debt & grant flows
Cash & liability
management
Accounting
Transaction and
balance recording
Budget management &
reporting
Fiscal/outturn
management
Macro Economic
Forecasts
Information
support system
Central Bank
systems
Revenue
management
systems
External audit
Agency
accounting
systems
Debt
management
systems
HR and payroll
Core financial management
functions
Procurement
systems
Budget preparation system
Medium Term
Expenditure
Framework
Annual
budgets
Agency
budget
preparation
Resource
ceilings
Enacted
budgetDonor support
Information systems to
manage loans &
grants

19. • IFMIS could potentially embrace whole of architecture
• Wonderful vision of a totally integrated system
• BUT for most countries
– Would be unacceptably high risk and cost, take a
long time to implement
• Best to focus initially on core PFM areas
– Only add other modules if essential
– Acquire a system that can be extended to other
modules
– Keep it simple
• Essential to develop clear vision of IFMIS at an early stage

20. • Centralized Architecture: The Application
software runs on a central server and
Treasury offices connect to this server in an
online mode to process their transactions
• Distributed Architecture: Copies of the
software run on multiple servers across the
network. Work stations at a site connect to
the local/ designated server to process
transactions

21. Treasury Systems- Centralized Architecture- All Transaction
processing carried out at the Center. Remote offices are
linked to center via a direct communication link or via a web
based interface
Central Treasury
Remote
Treasury
Office
Remote
Treasury
Office
TSA Bank
Internet
Access
Direct Access
Spending
Unit
Spending
Unit
MOF/Budget
Administrators
Spending
Ministry
HQ

22. Treasury Systems - Distributed Architecture.
Transaction Processing carried out at Regional and
District Treasury offices
Central Treasury
Regional Treasury Office
District Treasury
Office
TSA Bank
Regional
Budget
Administrators
Spending
Unit
Spending
Unit
MOF/Budget
Administrators
Spending
Ministry
HQ
Local Bank
Regional
Branch
of TSA Bank

23. • Integration is fundamental to concept of an
IFMIS – key of successful
• IFMIS potentially comprises many
functions/modules
– All may be fully integrated, or
– Some may be integrated and others interfaced
• Need to make choice when specifying system
requirements

24. • Standard data classification for recording
financial events;
• Internal controls over data entry, transaction
processing, and reporting; and
• Common processes for similar transactions and
a system design that eliminates unnecessary
duplication of data entry.

25. • Data:
– Data entered once, used many times
– Common data model, data naming, data dictionary
• Software application
– Shared business rules
– Sharing of code
– Derived values in one module used by other modules
• Presentation
– All modules same look and feel, common navigation rules, screen
headers and footers
• Operation
– Common security module
– Single authentication point for all modules
– Consistent external interface, e.g. with spreadsheets, XML

26. • Provide timely, accurate, and consistent data for management and
budget decision-making;
• Support government-wide as well as agency-level policy decisions;
• Integrate budget and budget execution data, allowing greater
financial control and reducing opportunities for discretion in the use
of public funds;
• Provide information for budget planning, analysis and government-
wide reporting;
• Facilitate financial statement preparation; and
• Provide a complete audit trail to facilitate audits.

27. • Core modules must be integrated
• Integration of other modules a matter of
balance
• If separate systems
– Ensure interfaces & ability to exchange data
– Common coding and classification structure
essential

28. Basically, corruption is moved at the following factors:
1. Competency/ Ability
2. Trusty
3. Accessibility
4. Internal Control
An Asumption when IFMIS is applied then Corruption declines

30. Latar Belakang
 Pemerintah Indonesia dalam hal ini Departemen Keuangan
sedang melakukan modernisasi sistem informasi pengelolaan
keuangan negara melalui Program Reformasi Penganggaran
dan Perbendaharaan Negara (RPPN).
 Sebagai bentuk pelaksanaan Program RPPN, dilakukan
Penyempurnaan Sistem Perbendaharaan dan Anggaran Negara
(SPAN) atau biasa dikenal “SPAN Project” dibawah payung
Government Financial Management SPAN Project dibawah
payung Government Financial Management and Revenue
Administration Project (GFMRAP)

31. SPAN Project
 Sebagai upaya untuk menciptakan “a Modern
and Integrated Financial Management
Information System (IFMIS)” di Indonesia
 SPAN Project bertujuan untuk mengatasi “the
outdated and fragmented Existing IT Systems”

32. Tujuan SPAN Project
 Meningkatkan fungsi perbendaharaan (treasury) dengan sistem
pengelolaan keuangan yang terintegrasi, yaitu SPAN
 Mendukung terciptanya sistem manajemen kas yang handal
 Mendukung terciptanya pelayanan keuangan yang efisien kepada
seluruh sektor melalui sistem perbankan
 Menciptakan kontrol yang efektif atas alokasi anggaran dan belanja
 Menciptakan comprehensive and centralized database untuk semua
transaksi keuangan pemerintah pusat
 Menciptakan sistem pelaporan yang comprehensif dengan
memanfaatkan Teknologi Informasi yang tersedia untuk semua
stakeholder
 Menyediakan kemampuan on line sistem pada setiap kementerian dan
instansi pengguna lainnya
 Mengakomodasi accrual based accounting system

33. Gambaran SPAN Project
SPAN Project akan menghasilkan sistem pengelolaan
keuangan negara terintegrasi dan modern dengan
proses yang tersentralisasi yang akan menghubungkan
secara on-line/batch melalui teresterial, satelit, dial-
up, dan sistem jaringan lainnya antara: DJA, DJPBN, 30
Kanwil DJPBN 178 KPPN, dan kementerian/ lembaga

34. Gambaran SPAN Project (2)

35. Diagram SPAN Project

36. Tahapan Pengembangan SPAN
Project
Penyempurnaan Teknologi Informasi untuk
membangun “IFMIS” di Indonesia, secara garis
besar, SPAN Components dapat dibedakan
dalam dua kelompok besar, yaitu :
A. Supply & Installation of New Hardware
and Software (2009-2012)
B. Maintenance (2012 – 2017)

37. Critical Issue
 Terdapat banyak stakeholder yg terlibat,
termasuk PUSINTEK di Setjen Depkeu, DJA,
DJPB, Satker K/L, perbankan dan institusi
lainnya
 Perlu kejelasan tanggung jawab dan wewenang
masing-masing pihak yang terlibat
 Usaha-usaha pembinaan SDM dan aspek
kelembagaan baik dilingkup Dep. Keuangan
maupun K/L perlu terus dilakukan