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2nd Seminar of the International Association of Treasury Services - AISTWashington 14th & 15th October 2008

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Strategy & Implementation approach for Treasury SolutionsName Bill BaileyTitle VP EMEA Treasury Solutions Practice

Agenda

• Introduction• Oracle Treasury Solution implementations• The Oracle approach• Oracle Treasury experience – key factors• Important Relationships• Road from Strategy to Solution • The Oracle ‘Treasury Solution‘• How does Oracle deliver ?• Lessons Learnt• Critical Success Factors

Introduction

• Public Sector Reform benefits from Fiscal Management System Implementation

• Government accountability – high visibility in country• Implementation of a Fiscal Management System

facilitates decentralisation of government operations• Highly Political – an election year poses a significant

risk to the project• Many influencers – eg: Government Officials, World

Bank, Parliament, IMF, EU

History of Treasury Solution Practice Success

• Kazakhstan Treasury Modernisation Project • 1999 - 2001 • Partner - HP

• Government of Ghana BPEMS Project • 1999 – 2005 • Partner - HP

• Ministry of Finance for BiH Project • 2001 – 2004 • Partner - Deloitte Touche

• Government of Uganda IFMS Project• 2003 – 2005 • Partner - HP

• Ministry of Finance for Albania AMoFTS Project• 2005 – 2006 • Partner - Intracom IT Services

The Oracle Approach

• Oracle has Public Sector Financial Specialists• Engage with world wide fiscal advisors• Embrace new best practices and standards• Talk government business language• Understand fiscal reform policies• Advise on fiscal reform processes

• Compliance with IPSAS • Recommended approach has been defined by World

Bank - Oracle sells a solution based on World Bank Recommendations !

Oracle Treasury experience – key factors

• The Customer generally has limited complex IT project experience

• Implementing Fiscal Management Systems requires• Ability to influence policies• Understanding of Processes

• Cannot be approached as an IT Project – Must be part of a Fiscal Management or Budget Reform Program

• Clear, agreed and documented KBRs• Critical that Change Management is addressed as an

integral part of the program

Important Relationships

• Government officials – The Customer• World Bank – many fiscal reform projects funded by The World

Bank• IMF often provide external advisors to countries to establish

fiscal reform policies• EU - Phare – Contract Terms and Conditions are extremely

challenging• USAID• Local Partners

• Local knowledge• Use of local implementation skills• Political relationships• Ongoing support

• Suppliers

The Road from Strategy to Solution

Strategy

Policy

Processes

Solution

- Parliament: Provides long-term vision & direction

- MoF/Treasury: Provides/guides the scope & plan of action

- Ministry Line Management: Detailed design & sequence of changes

- Solution Provider: Collect, document & validate software requirements against the KBRs & the RFP and involve all above stakeholders

WB GFMIS – Oracle “Treasury Solution"

TREASURY SYSTEM

FUNCTIONALPROCESS

CENTRALBANK

DEBTMANAGEMENT

BUDGETMANAG.

CASHMANAG.

GOVT.SPENDINGAGENCIES

REVENUE COLLECTIONAGENCIES PAYING/

RECEIVINGBANKSTAXES CUSTOMS

BUDGET PREPARATION

BUDGET MANAGEMENT& FISCAL REPORTING

Ac.Receiv. Ac. Payable

Treasury General Ledger

AGENCYBUDGET

EXECUTION

DEBT MANAGEMENT

POSITIONMANAGEMENT

PAYROLL &PENSIONS

PERSONNELMANAGEMENT

TAXATION

AGENCYBUDGET

PREPARATION

CUSTOMS

Domestic Foreign

Investment Current

CASHMANAGEMENT

AUDITINGSample Transactions from Government Systems to Auditing

BudgetGuidelines

Cash Forecasts; Allocations

COMMERCIAL

BANKS

Estimateof

Borrowing and

Public Debt

Interest

Macro Economic Framework

Budget Proposals;old & new programs

AUDITORGAN.

Revenue Estimates

Approved Agency Budget

CENTRALBANK(TSA)

Payment Instructionsto Central Bank

Report on Payments& Receipts to TSA

Reports on

RevenueReceipts

CENTRALOFFICE

REGIONALUNITS

ECONOMICPOLICY

TREASURYMINISTRY OF FINANCE

GovernmentBanking Arrangements

Feedbackfrom

Audit

Vendors

TaxPayers

MACRO ECONOMIC FORECASTINGMACROMACRO

ECONOMIC ECONOMIC FORECASTINGFORECASTING

BUDGET BUDGET PREPARATIONPREPARATION

BUDGET BUDGET MANAGEMENT MANAGEMENT ACCOUNTING ACCOUNTING

&&FISCAL FISCAL

REPORTINGREPORTING

CASH CASH MANAGEMENTMANAGEMENT

DEBT DEBT MANAGEMENTMANAGEMENT

REVENUE REVENUE ADMINISTRATIONADMINISTRATION

CIVIL SERVICE CIVIL SERVICE MANAGEMENTMANAGEMENT

AUDITINGAUDITING

Oracle Hyperion Oracle Hyperion Planning & Cash ManagementPlanning & Cash ManagementOracle Hyperion Oracle Hyperion Planning & Cash ManagementPlanning & Cash Management

Oracle Hyperion Oracle Hyperion PlanningPlanningOracle Hyperion Oracle Hyperion PlanningPlanning

Oracle Hyperion Oracle Hyperion Planning / Public Sector BudgetingPlanning / Public Sector BudgetingOracle Hyperion Oracle Hyperion Planning / Public Sector BudgetingPlanning / Public Sector Budgeting

Oracle FinancialsOracle FinancialsGeneral LedgerGeneral Ledger Cash ManagementCash ManagementPurchasingPurchasing ReceivablesReceivablesPayablesPayables Public Sector Budgeting / OPSFIPublic Sector Budgeting / OPSFI

Oracle FinancialsOracle FinancialsGeneral LedgerGeneral Ledger Cash ManagementCash ManagementPurchasingPurchasing ReceivablesReceivablesPayablesPayables Public Sector Budgeting / OPSFIPublic Sector Budgeting / OPSFI

Oracle BI Reporting, GRC - Governance, Risk and Oracle BI Reporting, GRC - Governance, Risk and ComplianceComplianceOracle BI Reporting, GRC - Governance, Risk and Oracle BI Reporting, GRC - Governance, Risk and ComplianceCompliance

Oracle Oracle Human Resources & PayrollHuman Resources & PayrollOracle Oracle Human Resources & PayrollHuman Resources & Payroll

Oracle Treasury & Cash ManagementOracle Treasury & Cash ManagementOracle Treasury & Cash ManagementOracle Treasury & Cash Management

Oracle Oracle Revenue Revenue ManagementManagementOracle Oracle Revenue Revenue ManagementManagement

The World Bank

How does Oracle Deliver?

• Resources• EMEA Treasury Solutions Practice

• Experience of 5 successful Treasury Implementations• Project Management, Functional Architecture, Technical

Architecture, business knowledge

• Local Oracle resources if available• Functional and Technical Consulting skills

• Local Partners• Support and System Management

• Oracle Near and Offshore capability• World wide resource pools

• Product and Business experts

Oracle Delivery Capability

Key Success Factors• Project Management

• Project Planning• Risk Management Reviews• Regular Health Checks• Regular reviews with partners engaged in project• Regular Solution Reviews/Updates

• Project Sponsor• Visible Executive sponsorship.• Regular steering committee meetings

• Key stakeholder engagement• Heads of depts. & Key users• Government Ministers• World Bank Advisors• External consultants – procurement advisors etc.

Lessons LearntKey Success Factors

• Government Commitment to the reform process • Clearly defined reform objectives• Strategic approach to MIS development• Maximising use of external assistance• Building stakeholder support• Availability of staff and resources• Use of best practice project management techniques• Pragmatic & realistic timescales

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“Our mission is;To deliver an integrated Financial Solution to National and Regional Treasuries in a way that provides accountability, and the ability to exercise financial controls.”

To provide the customer resources with the knowledge and experience from previous successful implementations.

EMEA Treasury Solutions Practice Mission statement