By MURUGAN MALLIKA
Jan 04, 2016
ByMURUGAN
MALLIKA
2
Financial management system: Information system that tracks financial events
and summarizes information
supports adequate management reporting, policy decisions, fiduciary responsibilities, and preparation of auditable financial statements
Should be designed with good relationships between software, hardware, personnel, procedures, controls and data
Generally, FMIS refers to automating financial operations
Core systems
General ledger, accounts payable and receivable. May include financial reporting, fund management and cost management.
Non-core systems
HR/payroll, budget formulation, revenue (tax & customs), procurement, inventory, property management, performance, management information
4
Development and implementation of economic and fiscal policy to:Development and implementation of economic and fiscal policy to:
Provide the audit trail and support the audit function
Provide the audit trail and support the audit function
Enable government meet its legal obligations for financial management
Enable government meet its legal obligations for financial management
Creation and management of authentic, reliable, and secure financial records are critical actions (paper/electronic)
Creation and management of authentic, reliable, and secure financial records are critical actions (paper/electronic)
Protect the integrity of key records and the information they contain
Protect the integrity of key records and the information they contain
Ensure the timely disposal of obsolete records
Ensure the timely disposal of obsolete records
Source: IRMT discussion on evidence-based governance, as inclued in Presentation by Deepak Bhatia, IFMIS Implementation: Aspects for Consideration
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessingsystems
Businesstransactions
Businesstransactions
Internet or
Extranet
Internet or
Extranet
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplicationsdatabases
Customers,Suppliers
Strategic plan or corporate policiesContains major financial objectives and
often projects financial needs.
Transaction processing system (TPS) Important financial information collected
from almost every TPS - payroll, inventory control, order processing, accounts payable, accounts receivable, general ledger.
External sourcesAnnual reports and financial statements of
competitors and general news items.
Financial subsystems Profit/loss and cost systems Auditing Internal auditing External auditing Uses and management of funds
Control and Oversight Accounting Benefits Automated Reporting Increased reliability in
data Decreased possibility of
fraudulent or misleading information.
Expensive Maintenance Ineffective