Public Financial Management is defined in the Financial Management and Audit Bill (2010 and its 2013 amendment). The Bill outlines the functions of financial officials, budget administration, control over expenditures, bank accounts, accounts and audits, as well the external control exercised by the Auditor General. As such, component III is broad reaching.
Component III will increase efficiencies in budget formulation and execution by transitioning to a performance based budget that is linked to specific programs and projects, making the connection to policy priorities clear, in accordance with international best practices. The budget execution process will become more efficient through the creation of a proactive formal cash-management unit centralizing these activities. To support these process improvements, a modern Integrated Financial Management Information System (IFMIS) will be developed and implemented.
The activities of Component III are
- The development of a new business model to improve financial performance, which will target the following areas:
- The medium-term fiscal framework
- budget classification/formulation/execution
- cash and debt management
- accounting
- internal control
- external audit
- reporting
- Information Communications Technology
- The implementation of the new business model, including change management
- The preparation of the functional and technical specifications for a new upgraded Integrated Financial Management Information System (IFMIS) including integration requirements to current sub-systems and security access control
- The Implementation of an off-the-shelf highly customizable IFMIS including full standard functionality, as well as the modules for budget formulation and payroll/Human Resources (HR)
- The upgrade of the current Masterpiece System to the latest version considering that the full implementation of the new system will take 5-6 years, including the introduction of a new Chart of Accounts (CoA) and a reporting generator modules.
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