Nowadays, globalization has strongly encouraged both the public and private sectors to mobilize technology to optimize and improve their institution’s development. It’s undeniable that some organization may develop without depending on technologies. However, financial institutions, for instance like banks, depends almost entirely on technologies to effectively record and monitor daily financial transactions and reports.
On the other hand, under the wise leadership of Samdech Akka Moha Sena Padei Decho Hun Sen, a few in depth reform programs were established in accordance to the Rectangular Strategy and the continuous development model of Cambodia, which prioritized on 3 essential sectors, namely: Public Financial Management Reform, Public Administration, Reforms to promote democratic process at sub-national level. At the same time, the Public Financial Management Reform had been implemented with great effort and commitment until the project had reached Phase II, namely “Improve Financial Accountability”. To ensure the effectiveness of implementing Phase II, the Ministry of Economy and Finance initiated the Financial Management Information System (FMIS) in 2014 in order to provide transparency, accountability and effectiveness in managing public finance.
Meanwhile, with the efforts of the FMIS working group, this system has successfully implemented Phase I, which install the system at key departments of the Ministry of Economy and Finance, general department of treasury, and the Municipal-Provincial Treasuries. Currently, FMIS is implementing its Phase II which aims to install the system within the ministries. Why must the Line Ministries use FMIS?
In fact, the line ministries are indirectly using FMIS and they can still make expenses through Ministry of Economy and Finance, which means that the Ministry of Economy and Finance is responsible for entering financial transactions into the system instead of the line ministries. However, once FMIS has reached out to the line ministries, then all the expense data shall be recorded within the system, allowing an effective public financial management. Thus, the benefits of using FMIS in the line ministries are:
- Self-data Entry;
- Efficient and ease in managing budget flow within the system (transparency and efficiency);
- Able to monitor the transaction that was submitted to the Ministry of Economy and Finance (Transparency);
- Responsibility over their own financial transaction (Accountability);
- In the future, they are not required to submit any documents to the ministry of Economy and Finance anymore.