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As part of the reform programs of the Royal Government of Cambodia (RGC), the Ministry of Economy and Finance (MEF) has initiated a Public Financial Management Reform Program (PFMRP) and it was officially launched in December 2004. This program aims to improve the good governance and transparency in the National Budget Management especially in the national budget expenditure with the improvement of the standards of management and accountability in the effective mobilization of all government current and capital resources.
The PFMRP, which is one of the government strategies for developing its country, consists of four main platforms: (i) improving budget credibility; (ii) improving financial accountability; (iii) improving budget policy linkages; and (iv) improving performance accountability. The first platform (Budget credibility), the goal was successfully achieved according to the plan and this led forward to the second platform “improving financial accountability” launching in 2008. Within the second platform, FMIS (Financial Management Information System) project is formed as a core element to fully support PFMRP.
The FMIS project with its main task is to improve information both financial and service performance.
The overriding objective of the FMIS implementation is to support and underpin the general PFM reform activities in all stages by improving accountability, effectiveness, efficiency, and modernization of the public financial management system in Cambodia. This will provide timely and comprehensive information on budget revenue and expenditure as well as in the longer term the FMIS will provide automated support (turn-key solution) to budget planning and formulation and budget execution processes, with stronger system reinforced controls. There may be a future second stage where further functionality will be added to FMIS and the system rolled out to all line agencies and possibly sub-National Governments.
FMIS is a tool for automating all current manual PFM processes into a fully integrated total PFM system covering budget formulation, budget implementation, accounting, reporting, monitoring and auditing. It covers more than software and hardware which includes people, organization and managing changes and in those aspects bring about new business processes. The immediate benefits envisaged from the FMIS will improve budget execution, through streamlined and automated payments, revenue-receiving (collection and remittance for non-Tax and links to Tax, Customs and Debt Management systems),
MEF’s strategy has set out a two-phase implementation in which phase one (the current phase) of the FMIS is intended to implement only main treasury function that enable budgetting and commitment. The scope will engage with MEF’s key general departments (General Department of Natioanl Treasury, Budget, Sub-National Administration and Finance, Internal Audit, and General Inspectoarate Department) and other 25 provincial and municipal treasuries. The FMIS Modules in this stage includes:
For effective governance and management of the project to reach the final goal – successful implementation of FMIS, FMIS structure is divided in to the work streams, which formed to fit FMIS management requirements.
The details for each work stream depicted below:
- Project Management Office (PM)
- Business Process Work Stream (BP)
- Change Management Work Stream (CM)
- Development and Infrastructure Management (DV & IS)
- Training (TR)
- Implementation and Rollout (IR) and Support and Maintenance (SM)
The FMIS Project Organization defines the human infrastructure of FMIS in which to define the project organization chart, the roles, and the relationships of the project team. For effective governance and management of the project to reach the final goal – successful implementation of FMIS, the project organization is formed to fit FMIS management requirements.
With the objective to work together as a joint project team, FIS-LG CNS and MEF project team are organized with the same structure as the project Organization chart below:
