ICGFM Conference, May 2011

1. IFMIS Implementations a history of success and failures World Bank study

2. http://blog-pfm.imf.org/

3. Context: What we Know and What we Don’t Know 2003 FMIS report disappointing results 2010 Report World Bank projects 1984-2010 55 closed, 32 active primarily from World Bank documents & analysis

4. http://maps.google.com/maps/ms?ie=UTF&msa=0&msid=101777630030704959267.000491cccf1c14ff54bda 55 closed, 32 active FMIS projects

5. FMIS Profiles Client/Server through web-based Small countries to large Very low to high capacity Across all World Bank regions (& regional variances) COTS and LDSW Narrow focused Treasury to large integrated systems Some with multiple World Bank loans

7. Document Structure Descriptive Data Analysis Project Performance 5 Case Studies Conclusions Appendixes

8. FMIS Benefits Predictability Participation Transparency Accountability

9. 1. How many project completed on budget? Under 1/3 Between 1/3 and 2/3 Above 2/3

10. 3. 82%

11. What factor most influences FMIS project failure? Complex project design/large # of procurement packages Inadequate capacity/training of project teams Inadequate ICT infrastructure Inappropriate technology Ineffective project coordination Lack of leadership commitment Lack of proper skills in project team Organizational structure poorly suited for integration Weak project preparation and planning

12. 3. Inadequate capacity/training of project teams

13. What is the most important FMIS success factor? Adequate preparation and clarity of design Close World Bank supervision External environment (uncontrollable) Flexible project management Focus on capacity building and training Good project management and coordination Pre-existing enabling environment (ICT, HR, accounting) Suitable political environment & committed leadership

14. 5. Focus on capacity building and training

15. Trend Lines COTS & LDSW Cautions about making conclusions

16. Case Studies Outcome, sustainability, development impact, bank performance, borrower performance Implementation Completion Report Independent Evaluation Group

17. Blending the evaluation criteria, which country FMIS project was highest rate? Albania Guatemala Mongolia Pakistan Turkey

18. 2. Guatemala

20. Checklist

21. What is the largest barrier to making FMIS software sustainable? Civil servant capacity building Civil servant retention Costs of maintaining technical infrastructure: computers, networks, data centres, database software, virus protection etc. Costs to adapt software for reform Costs to maintain and upgrade FMIS software

22. What is the most important pre-requisite for FMIS success? Budget classification unified chart of accounts, integrated with budget classification commitment control and monitoring mechanisms cash management functions secure countrywide communication network system/data centers core team of ICT specialists within PFM organizations Treasury single account operations

23. What recommendation do you think has the biggest impact on reliability + cost effectiveness of an FMIS? Using electronic payment systems Using digital/electronic signatures for all transactions Electronic document management Publishing budget execution and performance monthly Interoperability and reusability of the information system FMIS development and project management based on international standards Using Free/Open Source Software (FLOSS) in PFM applications

24. Which Success Factor do you think is most important? proper attention to capacity building and training plans, close World Bank supervision of the projects, strong leadership and a conducive political environment, and Flexibility in the way the project was designed and managed.

25. What transparency initiative is or would be the most beneficial for your country? Aid transparency Budget execution + financial reports Budget preparation + budget books Civil service transparency in hiring and salaries Revenue transparency – taxes, extractive industries

26. How many projects were completed on budget? Under 1/3 Between 1/3 and 2/3 Above 2/3

27. What factor most influences FMIS project failures? Complex project design/large # of procurement packages Inadequate capacity/training of project teams Inadequate ICT infrastructure Inappropriate technology Ineffective project coordination Lack of leadership commitment Lack of proper skills in project team Organizational structure poorly suited for integration Weak project preparation and planning

28. What is the most important FMIS success factor? Adequate preparation and clarity of design Close World Bank supervision External environment (uncontrollable) Flexible project management Focus on capacity building and training Good project management and coordination Pre-existing enabling environment (ICT, HR, accounting) Suitable political environment & committed leadership

29. What country listed in the case studies do you think had the best blended score (outcomes, sustainability, bank performance, borrower performance)? Albania Guatemala Mongolia Pakistan Turkey

30. What is the most important pre-requisite for FMIS success? Budget classification Development of a unified chart of accounts, integrated with budget classification Development of commitment control and monitoring mechanisms Establishment of cash management functions Establishment of secure countrywide communication network Preparation of system/data centers Presence of a core team of ICT specialists within PFM organizations Treasury single account operations

31. What is the largest barrier to making FMIS software sustainable? Civil servant capacity building Civil servant retention Costs of maintaining technical infrastructure: computers, networks, data centres, database software, virus protection etc. Costs to adapt software for reform Costs to maintain and upgrade FMIS software

32. Which recommendation do you think has the biggest impact on reliability + cost effectiveness of a FMIS? Using electronic payment systems Using digital/electronic signatures for all transactions Electronic document management Publishing budget execution and performance monthly Interoperability and reusability of the information system FMIS development and project management based on international standards Using Free/Open Source Software (FLOSS) in PFM applications

33. Which of the following options is the most critical success factor for a successful FMIS? Proper attention to capacity building and training plans Close World Bank supervision of the projects Strong leadership and a conducive political environment Flexibility in the way the project was designed and managed