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Jan, 2015

Workshop on Knowledge and Experience Sharing on FMIS Implementation

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FMIS Management working group of MEF in cooperation with the World Bank conducted workshop about “Knowledge and Experience Sharing on FMIS Implementation” on 27-28 October and 01 December 2014 at Ministry of Economy and Finance Meeting Room 1 Building B.

The workshop was attended by relevant General Departments, IT Department of General Secretariat of MEF, 9 program budgeting Line Ministries, National Bank of Cambodia, ITD’s Consultants, and the World Bank’s representatives. The presentation was done by Mr. Ali Hashim, the World Bank’s Specialist in which comprises of 3 main objectives:

– Sharing knowledge and experience on FMIS implementation to relevant officials focusing on the function of treasuries and budget for FMIS implementation.

– Sharing knowledge and experience on interfacing with other systems to officials who get involved in FMIS’s interfacing.

– Sharing knowledge and experience on FMIS implementation to Line Ministries which has Program Budgeting and are the priority sectors of National Budget Expend to prepare for the second phase of FMIS implementation.

The Knowledge and Experience that had been sharing on FMIS Implementation are as follows:

– The requirement of the understanding of successful FMIS implementation: stakeholder’s requirement, special feature of business process and government financial management operation, communication preparation to meet the needs of different stakeholders, policy preparation before system implementation, setting up scope and function of the system.

– The main points regarding the setting up international standard of FMIS system are monitoring law and institutional structure, monitoring and developing current business process for system, implementing continuously and maintaining the system.

– Policy and institutional reform need to be considered in advance such as budget management law, requirement of financial report and commitment, budget classification, institutional preparation for government fund at the bank as well as process and expenditure operation.

– The international standard FMIS has core function and none-core function. The FMIS system provides support for core function process regarding the budget implementation such as budget management, commitment management, revenue-expend management, accounting record (All occurred financial transactions are recorded into the system), cash management, and financial report.

– The essence of internal control process and information security adhere regulation of internal control process for financial operation when the recording changes from manual to automatic system. Moreover, the automatic recording system provides monitoring mechanism through password or passcode set by user and data classification that is used in the system.

–  The prerequisite of FMIS implementation requires technical users understand about:

  •  The international standard FMIS system is the crucial financial operation system operated by government accountant and budget execution institution of government for implementation of each function.
  • The operational interruption of the system will disrupt the government financial operation.
  • The setting up and identifying stakeholders who support the technical preparation is necessary for the sustainable implementation of the FMIS system.

–  The End Users training for the FMIS system

  • The Users must know the feature of the system and training of new skills regarding the FMIS implementation.
  • The training and the FMIS implementation plan should be prepared properly together by focusing on the requirement of site implementation and offering the training courses before each site being implemented.
  • Should create supporting group for the system.

–  The Change management·

  • The users are the entire agent who is changed unavoidably. The top management of the Ministry of Economy and Finance plays a crucial role to support change by providing confidence to the users not to worry about the impacts such as job loss etc.
  • The users will be trained about the system implementation and modernization.
  • The users falter about the change, they will receive more trainings and reinforce their capacity on how to use the system in the transitional phase.

– The interfacing between FMIS with other systems such as Payroll System, Debt Management and Financial Analysis System, Automated System Customs Data, Bank and Audit System.

The workshop finished smoothly and participants received more understating about the scope of the FMIS implementation system both Phase I and Phase II in the future time, the policy preparation and institutional structure, the current business process which is the core elements for system implementation, the internal control process of the system, the change management strategic supports the FMIS implementation, the each essential functions of the system such as general ledger, account payable, account receivable, budget allotment, purchasing, and budget management. These are the main purposes of Mr. Ali Hashim to share with the participants for the FMIS implementation in Cambodia. Moreover, the participants from Line Ministries were impressed and strongly support this system in Cambodia which will provide extensive benefits to budget execution and management of the Cambodian government, particularly in the second phase (will assist all budget requisition processes from Line Ministries) after the first phase is successfully rolled out in the Ministry of Economy and Finance. With such relevant benefit, they were excited to know more deeply to prepare for the future FMIS rollout. In addition, it was a great opportunity for capacity building and to implement the change management strategy for MEF by offering workshop and communicating widely about FMIS project implementation to officials of departments, general departments of MEF and program and none-program budgeting line ministries to understand clearly about benefits of FMIS system under PFM program in Cambodia.

Please download demonstration materials