TOPIC: CENTRALISED INFRASTRUCTURE DECENTRALISED OPERATIONS FOR LGA IFMIS

1. UNITED REPUBLIC OF TANZANIA PRIME MINISTER’S OFFICE REGIONAL ADMINISTRATION AND LOCAL GOVERNMENT TOPIC: CENTRALISED INFRASTRUCTUREDECENTRALISED OPERATIONSFOR LGA IFMIS Presentation to DPG – Dar es Salaam October 2012

2. Presentation Outline • IFMS Model • Proliferation of bank accounts at LGA • ICT Centralized Infrastructure decentralized operations • Required Support • Operationalisation of Epicor 9.05

4. Proliferation of Bank Accounts • Historical Reasons for many Bank Accts • Inability to segregate balances • Poor Records –> poor reporting • Poor control –> misappropriation • Poor management –> lack of trust • Projects –> proliferation of systems and accounts • Problems of many Bank Accts • Lack of consolidated view • Poor control / diffused responsibility • Inability to account properly • Inability to reconcile • Operating outside the financial system • Source of many audit queries

5. Consolidated Bank Accounts – Best Practice • Overcomes problems BUT how do we address concerns? • Segregate balances (cost center, project, activity..) • Strictly limit transactions to designated funds (budget & allocation) • Provide instant and accurate reporting to stakeholders on fund utilization • Rebuild trust, assure stakeholders

6. Consolidated Bank Accounts • So HOWdo we do that? • Commitment control against budget and / or allocated funds • Limit users to specific account codes • Approvals levels • Enter, Review, Approve & Post online with segregation of responsibilities - allows any errors to be caught in time • Generate online / printed reports on demand • Operate with integrity and transparency • Sanction inappropriate actions

7. ICT CENTRALIZED INFRASTRUCTURE DECENTRALIZED OPERATIONS

8. CENTRALISED IFMIS INFRUSTRUCTURE PMORALG - Dodoma Other Approved Entities LGA RAS Users Primary Data Center PMORALG Dodoma Users Users Users National Network Backup Data Center AccGen Dar AccGen - Dar Users

9. CENTRALISED IFMIS INFRUSTRUCTURE

10. KEY ACTORS ROLES & RESPONSIBILITIES RAS RAS LGA LGA LGA LGA AccGen PMORALG PMORALG Maintain Application Maintain Databases Maintain Servers Manage WAN Technical Support Application Support System Administration Training Content Mail Administration Central Website Monitoring National Reporting AccGen Maintain Backup System Monitoring National Reporting National Accounts Primary Data Center PMORALG Dodoma Backup Data Center AccGen Dar National Network • LGA • Operate & Control Own applications & database • Data Entry / Approvals / Reports / Queries • Customer Service • Internal Audit • Manage Local Data RAS Monitoring (Regional LGA’s) Guidance Regional Reporting

11. Centralised Infrastructure Decentralised Operations – Benefit • Technical • Small core technical support team at the center • Standardized infrastructure • Easy upgrade / growth of core system (space, processing ability, technology changes) • Uninterrupted upgrades • Support • Easy access to data and hence ease of diagnosing problems • Use online tools for guidance, training and support • Host training material centrally which is easily accessible • Financial • Reduced capital investment • Terminals & printers only at sites • Lower Running Costs • Economies of scale • Lower maintenance and support costs 11

12. ICT CENTRALIZED INFRASTRUCTURE DECENTRALIZED OPERATIONS CHALLENGES & REQUIRED SUPPORT

13. Epicor ICT Challenges • Geographical locations of LGAs. Technology used (VSAT & Fiber – Good; ADSL & Radio – Bad); • Limited financial resources; • Unstructured LAN at some LGAs; • Fear of centralized infrastructure; • Unreliable power supply; and • Poor earth resistance;

14. REQUIRED SUPPORT - Finance • Financial Resource is required:- • To improve last mile connectivity; • For earth resistance rectification; • To install and commission structured LAN; • To train ICT HR at all levels; • To conduct change management session; • For system upgrade and update; • For payment of licenses and software fees; • For payment of connectivity charges currently stand at 90Mil per month; and • For adding more MIS system in PMORALG infrastructure

15. IMPLEMENTATION OF EPICOR VERSION 9.05

16. Application Modules in Epicor 9.05 Epicor 9.05 includes many features and operates through the following Modules: • System Management • General Ledger • Accounts Receivable • Cash Management • Material Management • Accounts Payable

17. Epicor Modules Interfaces AR CM AP Purchase General Ledger Chart of Account Reports

18. Classification of Funds Funds defined by LGA chart of Account structure are classified by • Cost Centre • Fund type • Fund sources • Project codes

19. Chart of Account structure 72–3014-500A–1–2–0000-A01S01–220102 Computer

20. Various Reports in Epicor

21. Key Stakeholders – Epicor Reports

22. IFMS Benefits The implementation of IFMS is focusing to achieve the following benefits • LGAs’ Budget control and monitoring • Centralized analysis • Transparency and accountability • Control and oversight • Compliance of reporting standards

23. Concluding Remarks • It is observed that, application of computerized accounting in LGAs has a greater impact in better financial management, However IFMS is complex projects (people, processes, procedures, stakeholders involvement, behavior change), and it requires persistent efforts to make it a success. • Epicor 9.05 will simplify the accounting transactions where all financial reports including final accounts will be generated from the system

24. Thank you for listening