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RE-ENGINEERING IFMIS
2011 - 2013

Presentation at Connected Kenya Conference

Leisure Lodge Beach and Golf Resort
April 18th – 21st, 2011

By A. Waiguru
Ag. D/IFMIS / HGU
 PRESENTATION OUTLINE

Why develop a plan/expectations?

Where are we?

Where do we want to be?
How do we get there?

With whom?
By when?

How much? 3
Why develop a plan/expectations?

WHY DEVELOP A STRATEGIC

PLAN?
 EXPECTATIONS
1. System Expectations -  All modules
integrated and functional inc stand alone
systems

2. Process Related Expectations - Take

every departments input, needs into
considerations ensuring all end users
requirements are met satisfactorily

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 EXPECTATIONS2
3. People Expectations –
• Learn from past experience
• Bring on board all stakeholders
• Home-grown & practical solutions
• Capacity enhancement Clear communication and
change management
4. Well defined Strategic plan –
•With a clear Vision and Mission that communicates the
Re-engineering process / rebranding of IFMIS
•A strategy that defines risks and mitigates against them
•Integrating all stand alone components
•Strategy that ensures Leadership buy in and commitment
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 BACKGROUND
• Assessment by independent consultants
raised a number of technical and
implementation issues that had to be
addressed before IFMIS could be
considered reliable and useful.
• This Strategic Plan seeks to enhance that
process by identifying requirements,
priorities and activities for the re-
engineering of IFMIS.
 Where are we?
Where are we?
A PARTIALLY FUNCTIONAL IFMIS

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 A PARTIALLY FUNCTIONING IFMIS
• The IFMIS is currently limited to the
General Ledger (GL), Purchasing (PO) and
Accounts Payable (AP) modules
• All have some technical limitations with
functionalities that are not sufficiently
interlinked and
• There is still significant reliance on manual
processes even where the IFMIS has been
implemented
 A PARTIALLY FUNCTIONING IFMIS
•Budget Process
•Budget planning is the process through which the
government, according to a pre-defined process - the
MTEF - sets budgets for the coming fiscal year.
•Detailed guidelines provided to MDAs on how to define
their funding necessities according to various sectors
•As priorities are identified, budgets are assigned to various
line-items such as fuel, office supplies, etc.
•One key output of the budget planning exercise is the
budget commitment ceilings that determine the monthly,
quarterly and annual expenditure limits.
•Currently budget preparation is facilitated by a stand-alone
database application
•No real-time linkage bet. this application and the IFMIS
 A PARTIALLY FUNCTIONING IFMIS
• Expenditure to Payment
• Following the attribution of budget commitments
and the release of funding, the expenditure and
payment processes commences.
• The diagram in the next slide is a high level
illustration of the Government’s expenditure
approval process.
• Currently the most part of these processes are
executed manually, and outside the system,
• Expenditure approval process mostly manual
• There is urgent need to automate them.
 Local Purchase Order manually created along with the
Payment Voucher. All are signed in advance by the AIE,
HoA and Budget Officer

Prior to initiating the procurement process, the AIE already

Manual Process Creation of the knows if the Requisition must be sent to the Tendering
1 Requisition Committee for approval and nothing is done until the TC
IFMS Process (LPO/PV) provides guidance on how to execute the acquisition

GPAY Process

CBK Process
Procurement The entire process is pre-determined so that the PO
2 Officer Contacts contacts suppliers in advance of receiving approval
for the acquisition and instructs them on what
Suppliers
process to adopt.

According to Procurement Officers, Requisition Sent

IFMS is only accessed once the LPO to Head of
has been approved. So it is not part of Accounting for
Examination Documents are verified for
the decision making process accuracy and completeness

Once entered, the GL is updated

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LPO is entered When goods are received the IU verifies
General Ledger Invoicing that they match the Requisition and
into IFMS for the Inspection Unit
Updated (Matching) prepare the Inspection Certificate which
first time
is sent to HoA along with the Invoice.

When goods/services are received it is

common practice for suppliers to
provide the invoice upon delivery

4 This is an additional step required by IFMS to ensure

separate verification and authorisation of the accuracy and
completeness of the LPO. Although the PV is attached, it is
Validation of the
Validation not entered into IFMS at this point.
LPO in IFMS
This step relies exclusively on the documents prepared
during the manual process

Requisition sent to HC for

Head Cashier processing of the payment

Internal Audit Verifies all

5 Auditing
supporting documents
PR is entered into IFMS for the first 6
time.

Because there is no link between the P

and AP modules, PR may be Payment Request Payment Request is
Authorisation
generated on any transaction or Entered into IFMS authorized by the HC
account because the information is not
cross-referenced to ensure there was
an approved LPO. This process can
only be done manually. Cash Payments are still
IFMS Payment being executed and this
Cash Payments process is managed outside
List
7 the IFMS and GPAY

GPAY produces a encrypted Payments CBK Manages a suspense

file of EFT requests along Entered into account through which cash
with a hard copy report GPAY withdrawals can be made

Payment & Cash EFTs Processed BS retrieved and

GPAY Report Requests the next day and new GPAY list
Signed by HC Physically Bank Statement submitted for
Delivered to CBK Generated processing
 A PARTIALLY FUNCTIONING IFMIS
• Cash Management module
• Module not implemented, therefore;
• Bank Accounts are maintained manually
• Reconciliation is manual
• EXU not sufficiently supported
• CBK – email to HEXU; distributes funds manually, -
advices
• IFMISD (both commitment ceilings and exchequer
releases).
• IFMISD uploads data manually into GL
• Ideally, CMM would support cash-flow forecasting, bank
reconciliation, and bank account management.
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 A PARTIALLY FUNCTIONING IFMIS
• EFT
– EFT Business Process not efficient
– Currently under pilot ;
– Challenges
• Other Stand alone systems
– Debt mgt system,
– Pensions
– Payroll
– Procurement,
– Revenues ERD, KRA
 A PARTIALLY FUNCTIONING IFMIS
• ICT Infrastructure and Support
• There is no proper management of Data Centre(s) and the
IFMIS Infrastructure does not always ensure network and
application security, availability and reliability
• In addition -
• The IFMISD has limited internal technical experts to provide
support to peripheral software and hardware required for
IFMIS operation.
• The IFMIS network and infrastructure as exists is incapable
of supporting the increased use as anticipated in this plan.
• The IFMIS has not been secure, available and reliable.
• At the moment, in the case of catastrophic failure the MoF
would not be that is able to resume normal functions in a
minimal amount of time.
CURRENT STATE OF AFFAIRS

Missing functionality/modules, Low Ownership, Sustainability,

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Have a well functioning, user friendly
Integrated Financial Management System

WHERE DO WE WANT TO GO?

How do we get there?

THE RE-ENGINEERING
IFMIS STRATEGIC
PLAN
 IMPLEMENTATION APPROACH
• Move from -
• A modular approach which was earlier
adopted where separately
implemented modules are loosely
linked to the GL,
To -
• A full cycle end-to-end integrated
approach
 CORE IFMIS PROJECT MANAGEMENT
COMPONENTS

 Re-engineering for Business Results

 Plan to Budget
 Procure to Pay
 Revenue to Cash - CM
 Record to Report - GL
 ICT to Support
 Communicate to Change
RE-ENGINEERING FOR BUSINESS
RESULTS
• BPs are a pivotal element in the success or
failure of most ERPs,
• Business Processes should be well
documented to facilitate accurate mapping
into the IFMIS.
•  Provide a higher degree of data quality,
• Improve the performance of the workforce,
• Reduce duplication and redundancy, and
minimize opportunities for fraud and theft.
• There is need for BPRs in a number of areas
to enable smooth IFMIS implementation.
RE-ENGINEERING FOR BUSINESS
RESULTS
Workflows
• The most fundamental omission from current IFMIS
• WFs ensure that approval roles are inbuilt into the IFMIS.
• They provide notifications for the respective officials in the
approval hierarchy.  
• They allow automated delegation of privileges to ensure
that approvals can continue in their absence
Strategic Actions
• Do BPR to implement suitable automated business
processes before workflows are implemented.
• BPR means foregoing some existing business processes
in favour of ERP leading Practice for more efficient
performance IFMIS. 23
 RE-ENGINEERING FOR BUSINESS
RESULTS

• Strategic Interventions
• Re-engineered business process for
improved business results
• Define workflows for stricter controls
• Integrate process to reduce
duplication and parallel running
• Ensure higher degree of data quality
• Improved workforce performance
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 PLAN TO BUDGET
• Strategic Interventions
• Document the automation requirements for the
Planning to Budgeting cycle
• Fully integrate the Plan to Budget process and
system
• Provide a platform for programme based budgeting
• Automated system for commitment ceilings
• Single, common Chart of Accounts
• Enhance reporting capabilities to support budget
planning
• Hire PFM Specialist to assist the BSD in the
undertaking these activities 25
 PROCURE TO PAY
• Strategic Interventions
• Automated procurement process, from online
tendering to award of contracts
• Include the entering requisition, to generation of
System Purchase Orders, to payment
• Payment initiation, online approval and system
generated Payment Vouchers
• Enforcement of budgetary controls
• Elevation of IFMIS from data capture to integrated
financial management
 PROCURE TO PAY
• Strategic Interventions
• Review the Workflows and Dossiers in all
modules but especially for The Procure to Pay
system and the General Ledger.
• Change of policy to accommodate system
generated documents as official GoK documents.
• Design and implement secure printing of PO on
pre-printed stationery.
• AIE holders / Vote controllers enabled to
undertake online commitment of funds
• Real-time access to financial information.
 REVENUE TO CASH
• Strategic Interventions
• Auto-reconciliation of revenue and payment
• Secure and seamless integration with GPAY
based on ‘straight through processing’
• Automatic generation of EFT files and exchequer
releases within IFMIS
• Encryption, authentication and secure
transmission of data
• Automated revenue collections for improved cash
forecasting

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 RECORD TO REPORT
• Strategic Interventions
• Electronic transmission of bank statements from CBK
• Secure two way interface between IFMIS and CBK for EFT
instructions and statements
• Automated bank reconciliation
• Online maintenance of bank account details
• Accurate and up to date information on the GoK financial
position
• Eliminate GPAY terminals at line ministries.
 ICT TO SUPPORT
• Strategic Interventions
• Establish a Service Level Agreement between MoF,
GITS and E- government/ICT Board to provide
technical support and service to IFMIS Data Centres,
Networks and other infrastructure.
• Dedicated IFMIS support function for software,
hardware and infrastructure
• Help desk and call centre with expert technical
support
• Improved availability and system performance
• Operational security plan including business continuity
planning, back up and disaster recovery
• Support the e-Government Shared Services strategy
 COMMUNICATE TO CHANGE
• Change management will focus on:
–Awareness presentment:
–Building commitment:
–Managing Expectations:
–Coordination of Change:
–Staff Development:
• The Change Management process
–Preparation Stage – Acceptance Stage –
Commitment Stage
 COMMUNICATE TO CHANGE
• IFMIS ACADEMY
• Develop and implement capacity development/training programs to
ensure proper use and maintenance of the IFMIS
• Objectives
• Ensure MoF has required documentation to support IFMIS users and
technical staff.
• Increase the competency of existing users and expand user base.
• Develop additional expert and super –users.
• Develop in-house capacity to provide IFMIS user training.
• Deepening IFMIS to departmental Heads and management
• Strategy
• Training Needs assessment
• Development of customised Oracle user guides and training materials.
• Establish a state of the art Internal IFMIS Training Facility – IFMIS
Academy
• Source competent firms for Oracle training
• Source competent firm for ToT
 SCOPING
• Core Modules – CM, AR, AM
• Other Modules – Plan to Budget – Piloted by end June
• Stand alone modules Interfaces -
• Organisations to be implemented
– Ministries and Departments –
• Pilot ministries - MoF, MoE, MoIS, MoIRP, MoPH, &
SLO
• Other ministries – MoLG, MoFA & MOA
– Local Governments –
• ICT infrastructure – LANs in 61districts for IFMIS
• However linkages only on pilot basis to 4 District
Treasuries
• To discuss with MOIC on use of Fiber infrastructure
– Others – Link to shared services
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 SYSTEM DOCUMENTATION
Strategic Actions
• Regenerate documentation for the whole
implementation including;
– Business Processes
– User Requirements
– System design and development
– Quality Assurance
– Integration Testing
– User Acceptance Testing
– Operational Acceptance
– Operations Manuals

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GOVERNANCE STRUCTURE

Steering Committee on IFMIS

Technical Committee on IFMIS

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 GOVERNANCE STRUCTURE
• Steering Committee on IFMIS (SCI)
• Technical Committee on IFMIS (TCI)
• IFMISD
• DIIUS
• Supporting documents
–Strategic Planning document
–IFMIS Charter
–Change Management Strategy
–Job description document
 POST IMPLEMENTATION SUPPORT
Strategic Actions
• Dedicated Helpdesk established to offer 1st level
support.
• Implement a web based solution to for online
logging, recording, tracking and reporting on
progress of logged issues.
 www.IFMISupport.go.ke;

 Email:- IFMISupport@treasury.go.ke
 ifmis@treasury.go.ke
 2nd level support to be outsourced to certified
vendor under a service level agreement.
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BY WHEN?
• Short Term

• Long Term

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 ROAD MAP
Feb March April May June July

Program Management
Kick off workshop

Mobilization Activities Confirm readiness to

commence Process Design

Current Functional Review Gaps; Update

1. Process Design Assessment
Target Process Design Workshops
Target Processes
(OTC, P2P, Target Processes & Recommendations
Establish Scope confirmed Stakeholder workshops to address gaps complete
Plan to Budget, complete
Governance
Record to Report)
Target processes feed into target organization
Roles/Responsibilities
design, roles and responsibilities
complete
Current State Develop Target Define Roles &
2. Organization Design Assessment Dependency on target processes to complete Organization Responsibilities High level deployment
approach complete
organization design Target Organization Define approach to
Structure complete deploy target org
Joint activities to confirm
current state for org and Skills building aligned with
capacity building target organization

Current State Develop curriculum and Map roles to

3. Capacity Building Develop skills building approach
Assessment training tools/templates approach
Current state High level approach Capacity building approach
assessment complete complete aligned with target
Capability development organization
approach feeds into
Leading Hyperion practices input to
budgeting training for end
target process for Plan to Budget users
4. Budgeting Deployment Project Management Support

Budgeting Initial Deployment

Requirements & Monitoring &
Build* Test & Deployment*
Design* Support*
*Budgeting deployment activities delivered by other teams (Oracle, 39
etc.)
 ROAD MAP
• Plan to Budget, Revenue to Cash, Cash to
Report, EFT Pilot/Phase I by June 2011
– Roll out to Central Government June 2012
– Roll out to County Government June 2012
• Procure to Pay, Pilot/Phase I by Dec 2011
– Roll out to Central Government June 2012
APR
– Roll out to County Government June 2012
• Others – Continuously through out the year

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 CRITICAL SUCCESS FACTORS
 Personnel - Competence & establishment –
 Short Term - Request Secondments
 Project ownership and sustained commitment and
support by top management of MoF
 We are the champions
 Business continuity Planning
 Adequate programme financing

 Capacity building

 Change Management

 ICT to support

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 VISION & MISSION
• Our Vision is to have -
• “An excellently secure, reliable, efficient,
effective, and fully integrated financial
management system”.
Our mission is to -
• “ To Passionately and with commitment
continuously enhance our capacities to
innovate and leverage on the best of
technology to provide for a fully integrated
financial management
 CONCLUSION
• This strategic plan has therefore been
developed to –
1.Provide a structured methodology for
stabilisation of the current IFMIS on
one hand, and,
2. To facilitate development of a
comprehensive, consolidated and
integrated financial management
system
 CONCLUSION
 At this stage everything is on the critical path
which comes with distinct challenges of
pressured implementation

 It calls for full support by ourselves and all

stakeholders, team dedication and attention
to every detail to ensure successful planning
and implementation to meet stakeholders
expectations

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 CONCLUSION
• In Managing Expectations, we will bear
in mind -
• That – “No two men ever judged alike
of the same thing, and it is impossible
to find two opinions exactly similar, not
only in different men but in the same
men at different times.”
• ~ Michel Montaigne ~
•   - We will keep learning and adjusting
We Thank you for
listening

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