Technology and Corruption-The Case of FMIS.ppt

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1、Technology and Corruption: The Case of FMIS,Bill Dorotinsky The World Bank,March 26, 2003 IACC Seoul, Korea,2,Outline,What is an FMIS? What are elements of an FMIS? What is an “integrated” FMIS? What constitutes a “good” IFMIS? Why invest in an IFMIS? IFMIS and Corruption Bank Experience Summary,3,W

2、hat is an FMIS?,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, pr

3、ocedures, controls and data Generally, FMIS refers to automating financial operations,Definitions,4,What are core and non-core FMIS systems?,Core systems General ledger, accounts payable and receivable. May include financial reporting, fund management and cost management. Non-core systems HR/payroll

4、, budget formulation, revenue (tax & customs), procurement, inventory, property management, performance, management information,Definitions,5,What is “integrated” FMIS?,Can refer to core and non-core integration But, generally, four characteristics* Standard data classification for recording events

5、Common processes for similar transactions Internal controls over data entry, transaction processing, and reporting applied consistently Design that eliminates unnecessary duplication of transaction entry,Definitions,*from Core Financial System Requirement. JFMIP-SR-02-01. Joint Financial Management

6、Improvement Program. Washington, D.C., November 2001.,6,What constitutes a good system?,Ability to* Collect accurate, timely, complete, reliable, consistent information Provide adequate management reporting Support government-wide and agency policy decisions Support budget preparation and execution

7、Facilitate financial statement preparation Provide information for central agency budgeting, analysis and government-wide reporting Provide complete audit trail to facilitate audits,Definitions,*from Core Financial System Requirement. JFMIP-SR-02-01. Joint Financial Management Improvement Program. W

8、ashington, D.C., November 2001.,7,Why invest in an IFMIS?,Reduce errors of multiple data entry Accelerate reporting Enable data-matching, error detection Enable more analysis Accelerate auditing, exception reports Enable better oversight, management,8,An IFMIS and Corruption,9,Assumptions,comprehens

9、ive public finance systemaccuracy of recordsintegrity of databasereconciliation of bank, fiscal recordscorruption is within FMS domainother soft systems functional,10,Other soft systems of import,Internal auditExternal AuditTimely, comprehensive reports to legislature/publicInternal controls,11,What

10、 does Bank experience suggest?,Public sector corruption sources not captured fully well in public financial management Soft systems are weak HIPC expenditure tracking results FMIS investments often fail,12,Public corruption,13,HIPC Expenditure Tracking,Source: “Actions to Strengthen the Tracking of

11、Poverty Related Public Spending in Heavily Indebted Poor Countries (HIPCs), World Bank and IMF, March 22, 2002. See http:/www.worldbank.org/hipc/hipc-review/tracking.pdf,0%,10%,20%,30%,40%,50%,60%,70%,80%,90%,100%,1,2,3,4,5,6,7,8,9,10,11,12,13,14,15,(Percent of countries not meeting each benchmark),

12、Benchmark number:,Note: Based on 24 countries Final Assessments,Meets GFS definition of general government,Data on donor financing,Classification of budget,Pov. Red. Exp. Identified,Projections integrated into budg. formulation,Low level of arrears,Quality of internal audit (effective or not),Regula

13、r tracking,Fiscal & monetary data reconciled,Month reports,Timely functional reporting from class system,Accounts closed within two months of y/e,Audited accounts to legislature within 1 year,Outturn close?,Extra (off) budget expend.,Reporting,Execution,Formulation,soft systems are weak,14,Bank expe

14、rience with FMIS,If success is defined as delivered as-specified ex ante 43 % delivered as specified delivered on-budget 50 % delivered on budget delivered on-time 21 % delivered on-time then, only 21 % were successful,15,More Bank experience with FMIS,But, these indicators only looks at project, no

15、t impact on over-all financial management, operations Improvements to reporting? Staffing changes? Generally, no or weak performance indicators in projects no baseline broader impact assessment difficult. However, in self-assessed sustainability 25 % unsustainable 69 % likely sustainable 6 % highly

16、likely to be sustainable,16,Summary,IFMIS/technology enabling tool for transparency and anticorruptionBut not substitute for attention to institutional environment (soft systems) underlying factors (e.g. comprehensiveness)May not target prime areas of corruptionMay not be optimal investment for anticorruption,