ALBANIA MINISTRY OF FINANCE TREASURY SYSTEM

Maech 2009 Albania Ministry of Finance Treasury System, Anni DASHO IT Department Director

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ALBANIA MINISTRY OF FINANCE TREASURY SYSTEM


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Public Financial Management Cycle

Mgmt of Budget

Authorizations

Commitment of Funds

Payments and Receipts

MgmtCash

Management

Debt and Aid Management

Budget Review &

Fiscal Reporting

Audit and Evaluation

Budget Preparation

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Maech 2009 3Albania Ministry of Finance Treasury System, Anni DASHO IT Department Director

AMoFTS Business FlowsAMoFTS Business FlowsThe AMoFTS functional processes are classified as: The AMoFTS functional processes are classified as:

BudgetingBudgeting• Preparation of Estimates, Consolidation and ApprovalPreparation of Estimates, Consolidation and Approval• Appropriation, Budget Breakdown and Budget ReleasesAppropriation, Budget Breakdown and Budget Releases

Procurement and Payment ManagementProcurement and Payment Management• CCommitmentsommitments and Purchase Orders, Expenditure Requests and Purchase Orders, Expenditure Requests• Payment ExecutionPayment Execution

Revenue and Cash ManagementRevenue and Cash Management• Revenue Accruals, Revenue Reconciliation and DistributionRevenue Accruals, Revenue Reconciliation and Distribution• Bank Statement Reconciliation, Cash ForecastingBank Statement Reconciliation, Cash Forecasting

Fixed Asset ManagementFixed Asset Management• Off-line FA management, FA journalingOff-line FA management, FA journaling• On-line FA management, Asset Additions, Asset Transactions On-line FA management, Asset Additions, Asset Transactions

and Depreciationand Depreciation Accounting Accounting andand Financial Reporting Financial Reporting

• General Ledger Accounting and Reconciliation, Period ClosingGeneral Ledger Accounting and Reconciliation, Period Closing• Fiscal ReportingFiscal Reporting


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Functionality Common Implementation Options 1- Macroeconomic forecasting LDS 2- Budget Preparation LDS / COTS 3- Core Treasury System COTS + General Ledger + Accounts Payable Interface with banking system (TSA) + Purchasing / Commitment Interface with procurement agency + Accounts Receivable Interface with revenue collection + Cash / Fund Management Interface with banking system (TSA) + Financial reports + Org. Structure / Workflow Mgmt. + Asset / Inventory Management 4- Operational support for SUs Interface for spending units (LDS) 5- Internal debt management LDS 6- External debt and aid mgmt. Interface with DMFAS 7- Personnel database (HR mgmt) LDS / COTS 8- Payroll calculations LDS 9- Support for Auditing Locally developed reports 10- Management Information System COTS

System Functionality

LDS : Locally Developed Software COTS: Commercial Off-The-Shelf Software


Oracle Oracle Financials Financials AAapplicationsapplications modulesmodules

BudgetingBudgeting

General LedgerGeneral Ledger

PurchasingPurchasing PayablesPayables Fixed Asset ManagementFixed Asset Management ReceivablesReceivables Cash ManagementCash Management

Financial Statement GeneratorFinancial Statement Generator

Spreadsheet tools Spreadsheet tools (PSB Spreadhseet Integration, ADI Spreadsheet (PSB Spreadhseet Integration, ADI Spreadsheet Integrator)Integrator)


PURCHASING EXTERNAL

SYS

PAYABLES

CASH MANAGEMENT

RECEIVABLES

GENERAL LEDGER

BUDGETING

Reviews

BalanceInquiries

Financial Reports

JournalInquiries

FIXED ASSETS

AMoFTS SYSTEM ARCHITECTURE

Commitments

Fixed Asset JournalsInventory Journals,PIU ReportsHealth and Social Institute reports

Expenditures,Payments

Capitalization, Transfers, Depreciation,Retirements

(Non-Tax) Receivables,Receipts

Appropriation

PO – Invoice matching

Asset Addition

Bank Reconciliation

Bank Reconciliation

Bank StatementsTax and Custom Revenues,


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Design and Implementation of Information Systems

Secure countrywide Network infrastructure

Development of Application Software

Central Servers and field Hardware

System and network management

Technical support systems

System safety / security and business continuity solutions

Web publishing (web portal)


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Treasury System Project Lifecycle 2000-20061. Design phase

(2000-2002 Sema Shlumberger Consulting Comany) High Level Functional Design: Legal and institutional framework Detailed Functional Design: Coverage, functionality, scope, budget

execution, budget classification, chart of accounts, reporting Technical System Design: Technical architecture, software,

hardware and networking requirements, implementation plan Component sizing and preparation of procurement specifications

1. Procurement phase (2003-2004)International Competitive Bidding (ICB) for development of application

software (two-stage)ICB for installation of hardware and network equipment

1. System integration and implementation (April 2005-2006)

Design and Implementation


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Local Server

Information and Communication Technology

Firewall

2 DB Server

Treasury/MoF

District Offices

2 Application Servers

WebServer

Collection Point

(city center)Dedicated

line

Dedicated lines

Internet

MoF Virtual Private Network

Tunnelling(IPsec)

Encryption(3DES)

PCs

Central Hardware

TDO Hardware

Wide Area

Network

District Offices

1 2

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Technology Architecture : 3-Tier Web-Based

MoF Albania


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Treasury/MTBP Operations

User Terminals

System CenterDatabase Server Application Servers

Users

Internal Audit

Payroll Calcs.

Asset/Invent Mgmt

Budget Preparation

Core Treasury System

• General Ledger• Purch./Commit.• Accts Pay/Rec• Cash/Fund Mgmt• Fin. Reports

HR Mgmt/Pers DB

Org/Workflow Mgm

Web

Por

tal

COTS

LDS

InterfacesInt+Ext

PFMS

Oper sup for locals

DB

MoF, TDOs,Line Ministries,

Central Gov Agencies

Local finance directorates, local public

authorities, primarias, public institutions

Internal Access

External Access

Web Server


Albania : Treasury System > Public Financial Management System (PFMS)

T TransactionsP PlansC ContractsA AccountsR ReportsI InterfaceTSA Treasury Single Acct

Spending Units

Local budget institutions, public authorities,

municipalities, public institutions[ ~3,000 ]

Treasury > Integrated PFMS

Ministry of Finance

FMIS + Business Continuity Center

MoF IT Dept

I

I ISSH & ISKSH and Other

Revenue Org.

Internet & Intranet

PFMSWeb Portal

External Users

Reports

Reports

T, P

T,P,C,A

Internal Audit

I

P, R

Payroll Calcs.

Inventory Mgmt

Line Ministries &

Departments P, R

Reports

Debt Mgmt

Budget Formul.

Treasury / PFMS System Center I General Customs

ServiceT, P

I General Tax AdministrationT, P

Core Treasury System

• General Ledger• Purch./Commit.• Accts Pay/Rec• Cash/Fund Mgmt• Fin. Reports• SU interface

Macro Econ Forec

Treasury / PFMS FMIS + BCC

Statistics InstituteI

HR Mgmt/Pers DB

36 Treasury DistrictOffices Other Related Gov

Agencies/DeptsR

Bank of Albania TSA

I

I

Public Procurement

AgencyRI

DoPA > HRMIS

I

R

GovNet

Council of Ministers

Commercial Banks


Proposed Integrated PFMS Network Topology

Other Revenue Org.

Public Procurement

DoPA - HRMIS

State Customs Service

State Tax Administration

Statistics Institute

Line Ministries & Departments

Audit

Other Related Gov Agencies

HRMIS

BudgetProcess

Reve

nues

Proc

ure-

Payr

oll-I

ADa

ta E

xc

GovNetTirana

F/O conn.

RegionalTreasury Office

District #n

District #2

AlbtelecomIP NetworkCountrywide VPN

Regional / DistrictTreasury Offices + Local Governments

PSTNTC

TC

TC

TC

District #1

District #2

District #n

District # 1

Dedicated lines(online connections)

On demand lines (online/offline)[e.g. Dial-Up or

ADSL]

All regional / local offices

Internet

BCC

PoP

BackupInternet

PFMS SystemCenter

Bank of Albania

FMIS + BCC

Treasury Single

Account

PoP PoP

BackupISDN

PoP

PoP

PoP

MoF/Treasury

F/O conn

Backup line

F/O conn.

Internet access

Line Ministries and Gov Agencies in Tirana

FMIS+

BusinessContinuity

Center F/O conn.

Treasury / PFMS


MOF and BCC Servers DescriptionMOF and BCC Servers DescriptionInstallation and ConfigurationInstallation and Configuration


Database Servers Hardware Database Servers Hardware ConfigurationConfiguration Servers Model : Servers Model : PW650 PW650 CPU: CPU: 4 x SPARC64TM V CPU with4 x SPARC64TM V CPU with 4 GB 4 GB

MemoryMemory I/O capability up to 3,2GB/sec.I/O capability up to 3,2GB/sec.

Application Servers Hardware Application Servers Hardware ConfigurationConfiguration Server Model : Server Model : PW650 PW650 CPU: CPU: 8 x SPARC64TM V CPU with8 x SPARC64TM V CPU with 8 GB 8 GB

MemoryMemory Software InstallationSoftware Installation

Operating SystemOperating System: Solaris 9 : Solaris 9 Revision:Revision: Solaris9 09/04 Solaris9 09/04


IT Department StructureIT Department StructureDirector

Anni Dasho

Sector for Processing, Retrieval and

Integration of Financial Information

Arta Kolnikaj

IT Specialist (III-b)Disara Muca

IT Specialist (III-b)Odeta Kromici

Sector for Maintenance and Technical Support

Daniel Maranga

IT Specialist (III-b)Adriola Faqolli (MSs

2009)IT Specialist (III-

b)Olger Thomaj

IT Specialist (IV-a)Astrit Sinani

Sector for Help-deskand Monitoring

Rajmonda Collaku

IT Specialist (III-b)

Krisela Kotonika

IT Specialist (III-b)

Ardit Sferdelli

IT Specialist (IV-a)Nikola Turlla

IT Specialist (IV-a)Isida Vasjari

ALBANIA MINISTRY OF FINANCE TREASURY SYSTEM

Documents

anni dasho

asset inventory management

department directordesign

internal debt management

commitment interface

asset transactions

asset additions

sus interface