by murugan mallika. 2 financial management system: information system that tracks financial events...

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