UNITED REPUBLIC OF TANZANIA PRIME MINISTERS OFFICE REGIONAL

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

Presentation Outline • IFMS Model • Proliferation of bank accounts at LGA • ICT Centralized Infrastructure decentralized operations • Required Support • Operationalisation of Epicor 9. 05 2

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Proliferation of Bank Accounts Bank Acct 1 Bank Acct 2 Bank Acct 3 �Problems of many Bank Accts � Lack of consolidated view �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 � Poor control / diffused responsibility � Inability to account properly � Inability to reconcile � Operating outside the financial system � Source of many audit queries 4

Consolidated Bank Accounts – Best Practice Bank Acct 2 Bank Acct 1 Bank Acct 3 Single Bank Account 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 5

Consolidated Bank Accounts So HOW do we do that? Bank Commitment control against budget Bank Acct 1 and / or allocated funds Acct 2 Limit users to specific account codes Bank Acct 3 Approvals levels Enter, Review, Approve & Post online with segregation of responsibilities Single Bank Account allows any errors to be caught in time Generate online / printed reports on demand Operate with integrity and transparency Sanction inappropriate actions 6

ICT CENTRALIZED INFRASTRUCTURE DECENTRALIZED OPERATIONS 7

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

CENTRALISED IFMIS INFRUSTRUCTURE 9

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

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 11 Financial Reduced capital investment Terminals & printers only at sites Lower Running Costs Economies of scale Lower maintenance and support costs 11

ICT CENTRALIZED INFRASTRUCTURE DECENTRALIZED OPERATIONS CHALLENGES & REQUIRED SUPPORT 12

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; 13

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 90 Mil per month; and – For adding more MIS system in PMORALG 14 infrastructure

IMPLEMENTATION OF EPICOR VERSION 9. 05 15

Application Modules in Epicor 9. 05 includes many features and operates through the following Modules: – System Management – General Ledger – Accounts Receivable – Cash Management – Material Management – Accounts Payable 16

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

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

Chart of Account structure 72 3014 500 A 0000 1 2 A 01 S 01 220102 Vote Council code Cost Centre Department Project Code Fund Type Fund source Activity GFS 72– 3014 -500 A– 1– 2– 0000 -A 01 S 01– 220102 Computer 19

Special report Statutory Management Analytical Operational (Samples) Various Reports in Epicor Reports 20

Key Stakeholders – Epicor Reports Community Sector Ministries Others Full Council Epicor Reports CMT PMORALG Mo. F DPs 21

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 22

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 23

Thank you for listening 24