Ministry of Finance, Treasury System AMoFTS

Republic of Albania

Ministry of Finance, Treasury System

AMoFTS














Albania MoF Treasury System


•

Ministry of Finance of Albania is implementing
an integrated Public Finance Management System
from 2001
-

end of June 2006.


•

We are asking for an extension based on a lot of
key issues delays the process

•
The political changes

•

Network Infrastructure

•

Project implementation team dedicated not full
time for the project

•

Recruitment and sustainable process of IT staff

Evolution of Treasury Systems




Treasury development process:


(based on Treasury Reference Model)

1.
Building the IT department, Preparing the ToR’s for
Integrated Treasury System

2.
2
nd

Phase Design and implementation of Albanian Treasury
System

1.
Software parameterization & customization

2.
Hardware generalization

3.
Countrywide network infrastructure


Albanian Project implementation group


Steering committee

–
Deputy Minister, General Secretary,

–
General Budget Director,

–
General Treasury Director,

–
Budget Directors by budget areas,

–
Treasury Director,

–
Accounting Director,

–
Debt Director,

–
Macroeconomic Director,

–
WB PIU director, WB representative.



Project Manager


Technical Project Manager


Coordinators & Key users group


Trainers Group





Functionality






























Common Implementation Options




1
-


Macroeconomic forecasting








LDS





2
-


Budget Preparation















LDS / COTS





3
-


Core Treasury System












COTS






























+ General Ledger


















































+ Accounts Payable











Interface with banking system (TSA)









+ Purchasing / Commitment





Interface with procurement agency









+ Accounts Receivable


Interface with revenue collection









+ Cash / Fund Management

Interface with banking system (TSA)









+ Financial reports




+
Org. Structure / Workflow Mgmt.



+
Asset / Inventory Management




4
-

Operational support for SUs

Interface for spending units (LDS)




5
-


Internal debt management





LDS




6
-


External debt and aid mgmt.





Interface with DMFAS




7
-


Personnel database (HR mgmt)

LDS / COTS



8
-

Payroll calculations




LDS



9
-

Support for Auditing






















Locally developed reports



10
-

Management Information System

COTS


















System Functionality

LDS :

Locally Developed Software

COTS:

Commercial Off
-
The
-
Shelf Software

AMoFTS Business Flows

The

AMoFTS

functional

processes

are

classified

as
:



Budgeting

•
Preparation of Estimates, Consolidation and Approval

•
Appropriation, Budget Breakdown and Budget Releases


Procurement and Payment Management

•
C
ommitments

and Purchase Orders, Expenditure Requests

•
Payment Execution


Revenue and Cash Management

•
Revenue Accruals, Revenue Reconciliation and Distribution

•
Bank Statement Reconciliation, Cash Forecasting


Fixed Asset Management

•
Off
-
line FA management, FA journaling

•
On
-
line FA management, Asset Additions, Asset Transactions and Depreciation


Accounting
and

Financial Reporting

•
General Ledger Accounting and Reconciliation, Period Closing

•
Fiscal Reporting

Cash

Management

Commitment
Management

Budget

Execution

Budget

Preparation

Budget Review

Fiscal Reporting

Debt

Management
*

Audit and
Evalution

Payment

Management

Revenue

Management
*

*Interface with other systems

Financial Management Cycle

Fixed Asset
Management
*

Oracle APPS modules


Budgeting



General Ledger



Purchasing


Payables


Fixed Asset Management


Receivables


Cash Management



Financial Statement Generator



Spreadsheet tools

(PSB Spreadhseet Integration, ADI Spreadsheet Integrator)

Design and Implementation of Information Systems


Secure countrywide Network infrastructure


Contract signed through a direct contract with
Albtelecom Company.


On the implementation process:



end of july, end of september


Albanian MoF Integrated PFMS Network Topology

Other Revenue
Org.

Public
Procurement

DoPA
-

HRMIS

State Customs
Service

State Tax
Administration

Statistics Institute

Line Ministries
& Departments

Audit

Other Related
Gov Agencies

HRMIS

B
udget

Process

Revenues

Procure
-
Payroll
-
IA

Data Exc

GovNet


Tirana

F/O

c
on
n.

Regional

Treasury Office

District

#n

District

#2

IP Network


Countrywide VPN

Regional / District

Treasury Office
s + Local
Governments

PSTN

TC

TC

TC

TC

District

#
1

District

#
2

District

#n

District

# 1

Dedicated lines

(online connections)

[e.g.
Frame Relay
]

On demand lines
(online/offline)

[e.g.
Dial
-
Up or ADS
L]

All regional / local
offices

Internet

BCC

PoP

Backup

Interne
t

PFMS

System

Center

Bank of Albania

FMIS + BCC

Treasury
Single
Account

PoP

PoP

Backup

ISDN

PoP

PoP

PoP

MoF
/Treasury

Dedicated line

Backup

line

F/O
c
onn
.

Internet
access

Line Ministries and

Gov Agencies in Tirana

FMIS

+

Business

Continuity

Center

F/O

c
on
n.

Treasury / PFMS

–
Development of web based Application
Software


–
Oracle Financials



Parameterized and Customized based on the
Albanian Public Financial System



April 2005
-
June 2006


Design and Implementation of Information
Systems

–
Central Servers and field Hardware

–
System and network management

–
System safety / security and business
continuity solutions



Siemens Contract


March
-
July 2006

Design and Implementation of
Information Systems

Conclusions





Development of the Albanian integrated State Treasury according to the best
practices is a
complex task
, & Implementation of such wide spread changes
would require:


Government
commitment
and

management support

at the highest levels to
ensure that the change process is completed smoothly


Inter
-
institutions
coordination
and
user involvement

in system design


Start building
institutional capacity
and
technical skills

during preparation
phase


Development of
project management
and

technical support units

within the
MoF/Treasury for sustainability of implemented systems


Project implementation team must work as a separate group dedicated full
time for the implementation of the project


IT staff full load dedicated during the implementation of such huge and very
difficult process.