looks at IFMIS trends including the problems experienced through custom developed software and the use of private sector Enterprise Resource Planning (ERP) software. Advocates the use of commercial software built specifically for government: Government Resource Planning (GRP) and shows how this can enable leapfrog transparency in Africa. Uses example of Timor-Leste

1. Version 7 section
• brief discussion
PFM Trends:
Past, Present and Future
Michael Siegfried
Account Manager, Africa

2. Version 7 section
• brief discussion
PAST TRENDS

3. Version 7 section
Past Traditions
• brief discussion
NEEDS
APPLICATION
CONFIGURATION
REUSABLE CODE
DEVELOPMENT ENVIRONMENT
MIDDLEWARE
technical
environment

4. Version 7 section
reality
governance
integration
• brief discussion
extensibility
APPLICATION
REUSABLE CODE
DEVELOPMENT ENVIRONMENT
MIDDLEWARE
NEEDS
cost
risk
NEW NEEDS
DIFFERENT APPLICATION

5. Version 7 section
“poorer practices”
different budget & financial
classifications
• brief discussion
inability to report on money spent
for objective or to cost
increasing procurement arrears &
higher prices
reversals in previous years financial
information or outside system

6. Version 7 section
solutioning
government rejects custom software
after years of development
• brief discussion
inability to upgrade to accrual
accounting
inability or difficulty to support
IPSAS and GFS standards
inability to reconcile accounts
6

7. Version 7 section
visibility
• brief discussion
Now
Current Needs
Silos
Specialization
Trends
Benchmarks
Futures
Future Needs

8. Version 7 section
• brief discussion
PRESENT TRENDS

9. Version 7 section
COTS dilemma
• brief discussion
governance
costs
NEEDS
customization
APPLICATION
CONFIGURATION
REUSABLE CODE
‘enterprise’
DEVELOPMENT ENVIRONMENT
MIDDLEWARE
proprietary

10. Version 7 section
“best practices”
use of line-item budgeting
• brief discussion
not using budget & commitment
controls in ERP software
inability to see “free balance” in
real time
introduction of unneeded
complex processes
10

11. Version 7 section
impact
so much customization – bears no
resemblance to original
• brief discussion
inability to easily progressively
activate new functions
forced product upgrades
high costs and significant delays
11

12. Version 7 section
• brief discussion

13. Version 7 section
• brief discussion
FUTURE TRENDS

14. Version 7 section
FreeBalance
• discussion
• brief Designed for Shared Services
and Cloud
Cloud
Typical Vendors
• Designed for single tenant with
bolt-on technology for cloud
• Multiple configuration options • Restricted ability to support
to support unique
multiple configurations
requirements
• Supports stepped migration to • Restricted ability to adapt over
standard configurations
time – move to single
configuration
• Open load balancing,
virtualization, clustering
• Scalability supported through
proprietary solutions

15. Version 7 section
FreeBalance
•
• brief Java EE-based, proven opendiscussion
source components
Typical Vendors
• Proprietary programming
languages
• Support choice of open source • Focus on proprietary
and proprietary middleware
middleware with some open
source support
Open System
• Component-based Service• Some interfaces and
Oriented Architecture for ease
WebServices support
of integration
• Optimal footprint – operates
on laptop to data centre
• Translation layer, large database
= large technical footprint = not
sustainable

16. Version 7 section
rd choice: GRP
3
custom
COTS
• brief discussion
NEED
extensible
NEEDS
GOVERNANCE
APPLICATION
CONFIGURATION
GOVERNMENT PLATFORM
faster
DEVELOPMENT ENVIRONMENT
MIDDLEWARE
government platform

17. Version 7 section
achieve government sustainability?
platform & technology built for
PFM
• brief discussion
engage PFM community deeply to
gain visibility to future
commit to government successes
and feature improvements
develop methodology like
“Governance Valuation”

18. Version 7 section
Selection brief discussion
• of FreeBalance Customers, National Level GRP Implementations
from low to very high Human Development Index
Timor-Leste
.495
Liberia
.329
low
.286
|
Mongolia
.653
medium
Antigua
.764
| high |
Canada
.908
very high
.943

19. Version 7 section
Integration
• brief discussion
Trust
Open
Systems
Participation
Decision
Making
Transparency
Effectiveness

20. Version 7 section
leapfrog
integrated multiple year budget
planning and execution
• brief discussion
10 years of budget data on-line
decentralization & progressive
activation to all gov’t entities
comprehensive PFM-driven
reform on government platform

21. Version 7 section
sustainability
affordable
• brief discussion
TCO
meets
needs
selfsufficiency
adapt to
reform
leapfrog

22. Canadian
Version 7 section
Company
Company Summary
High
Success
Rate
GRP
Leader
• brief discussion
Global
PFM
Provider
Modern
Web
Technology
Covers
Budget
Cycle
100%
Government
Focus
ISO9001/2008

23. Version 7 section
• brief discussion
www.transparency.gov.tl
23

24. Version 7 section
reporting
• Output
• brief discussion
• Data Mart
• Dashboards

25. review
Version 7 section
examines budget execution data
• brief discussion
integrated with
back-office
procurement &
commitment
accounting within
IFMIS
Strengthening Public Financial
integration
with macroeconomic
data
25

26. review
Version 7 section
government tenders published
vendor al
• brief discussion
integrated with
back-office
procurement &
commitment
accounting within
IFMIS
tender results published
Strengthening Public Financial
26

27. review
Version 7 section
• brief discussion
www.transparency.gov.tl
Strengthening Public Financial
27