IFMIS Implementations

a history of success and failures

World Bank study

http://blog-pfm.imf.org/
Context: What we Know and
What we Don’t Know
• 2003 FMIS report
– disappointing results
• 2010 Report
– World Bank projects 1984-2010
– 55 closed, 32 active
– primarily from World Bank documents &
analysis
http://maps.google.com/maps/ms?ie=UTF&msa=0&msid=101777630030704959267.000491cccf1c14ff54bda

55 closed, 32 active FMIS projects

FMIS Profiles
• Client/Server through web-based
• Small countries to large
• Very low to high capacity
• Across all World Bank regions (& regional
variances)
• COTS and LDSW
• Narrow focused Treasury to large integrated
systems
• Some with multiple World Bank loans
Document Structure
• Descriptive Data Analysis
• Project Performance
• 5 Case Studies
• Conclusions
• Appendixes
FMIS Benefits
• Predictability
• Participation
• Transparency
• Accountability
1. How many project
completed on budget?
1. Under 1/3
2. Between 1/3 and 2/3
3. Above 2/3
3. 82%

On Budget
Over Budget
What factor most influences FMIS
project failure?
1. Complex project design/large # of procurement
packages
2. Inadequate capacity/training of project teams
3. Inadequate ICT infrastructure
4. Inappropriate technology
5. Ineffective project coordination
6. Lack of leadership commitment
7. Lack of proper skills in project team
8. Organizational structure poorly suited for integration
9. Weak project preparation and planning
 3. Inadequate capacity/training of
project teams
Inadequate capacity/training of project teams

Complex project design/large # of procurement packages

Weak project preparation and planning

Organizational structure poorly suited for integration

Inadequate ICT infrastructure

Lack of proper skills in project team

Lack of leadership commitment

Inappropriate technology

Ineffective project coordination

External environment (political unrest, disasters)

Unclear delineation of authority to implement

0% 10% 20% 30% 40% 50% 60%

What is the most important
FMIS success factor?
1. Adequate preparation and clarity of design
2. Close World Bank supervision
3. External environment (uncontrollable)
4. Flexible project management
5. Focus on capacity building and training
6. Good project management and coordination
7. Pre-existing enabling environment (ICT, HR,
accounting)
8. Suitable political environment & committed leadership
 5. Focus on capacity building and
training
Focus on capacity building and training

Close World Bank supervision

Suitable political environment & committed leadership

Flexible project management

Pre-existing enabling environment (ICT, HR, accounting)

Adequate preparation and clarity of design

Good project management and coordination

External environment (uncontrollable)

0% 10% 20% 30% 40% 50% 60%

Trend
Lines
COTS &
LDSW
• Cautions
about
making
conclusions
Case Studies
• Outcome, sustainability, development
impact, bank performance, borrower
performance
– Implementation Completion Report
– Independent Evaluation Group
Blending the evaluation criteria,
which country FMIS project was
highest rate?
1. Albania
2. Guatemala
3. Mongolia
4. Pakistan
5. Turkey
 2. Guatemala All Average

Borrower performance Outcome

Mongolia
Turkey
Albania
Guatemala
Pakistan

Bank performance Sustainability

Development Impact
 IEG Development Impact

IEG Project Outcome

IEG Sustainability

ICR Sustainability
High
Satisfactory
ICR Project Outcome Below

ICR Implementation

ICR Program Development Objectives

ICR FMIS ICT rating

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Checklist
What is the largest barrier to making
FMIS software sustainable?
1. Civil servant capacity building
2. Civil servant retention
3. Costs of maintaining technical
infrastructure: computers, networks, data
centres, database software, virus protection etc.
4. Costs to adapt software for reform
5. Costs to maintain and upgrade FMIS
software
What is the most important pre-
requisite for FMIS success?
1. Budget classification
2. unified chart of accounts, integrated with budget
classification
3. commitment control and monitoring mechanisms
4. cash management functions
5. secure countrywide communication network
6. system/data centers
7. core team of ICT specialists within PFM
organizations
8. Treasury single account operations
 What recommendation do you think has
the biggest impact on reliability + cost
effectiveness of an FMIS?
1. Using electronic payment systems
2. Using digital/electronic signatures for all transactions
3. Electronic document management
4. Publishing budget execution and performance monthly
5. Interoperability and reusability of the information system
6. FMIS development and project management based on
international standards
7. Using Free/Open Source Software (FLOSS) in PFM
applications
Which Success Factor do you
think is most important?
1. proper attention to capacity building
and training plans,
2. close World Bank supervision of the
projects,
3. strong leadership and a conducive
political environment, and
4. Flexibility in the way the project was
designed and managed.
 What transparency initiative
is or would be the most
beneficial for your country?
1. Aid transparency 58%

2. Budget execution + financial

reports
3. Budget preparation + budget
books 23%
4. Civil service transparency in
hiring and salaries 8%
10%

5. Revenue transparency – taxes, 3%

extractive industries 1 2 3 4 5
 How many projects were
completed on budget?
1. Under 1/3
60%
2. Between 1/3 and 2/3
3. Above 2/3
33%

7%

1 2 3
 What factor most influences
FMIS project failures?
1. Complex project design/large # of
procurement packages
2. Inadequate capacity/training of 25%

project teams 23% 23%

3. Inadequate ICT infrastructure

4. Inappropriate technology
5. Ineffective project coordination
6. Lack of leadership commitment
7. Lack of proper skills in project team
8. Organizational structure poorly
8% 8% 8%

suited for integration

9. Weak project preparation and 3% 3% 3%

planning
1 2 3 4 5 6 7 8 9
 What is the most important
FMIS success factor?
1. Adequate preparation and clarity of
design
35%
2. Close World Bank supervision
3. External environment (uncontrollable)
4. Flexible project management 24%

5. Focus on capacity building and training

6. Good project management and
coordination
7. Pre-existing enabling environment (ICT, 11% 11%

HR, accounting) 7%
9%

8. Suitable political environment & 4%

committed leadership 0%

1 2 3 4 5 6 7 8
 What country listed in the case studies do
you think had the best blended score
(outcomes, sustainability, bank
performance, borrower performance)?

1. Albania 30%

2. Guatemala 23%
21%

3. Mongolia 14%
12%

4. Pakistan
5. Turkey
1 2 3 4 5
 What is the most important pre-
requisite for FMIS success?
1. Budget classification
2. Development of a unified chart of
accounts, integrated with budget
classification 40%

3. Development of commitment control

and monitoring mechanisms
4. Establishment of cash management
functions
5. Establishment of secure countrywide
communication network
6. Preparation of system/data centers 15% 15%

7. Presence of a core team of ICT 10% 10%

specialists within PFM organizations 5%

8. Treasury single account operations 3% 3%

1 2 3 4 5 6 7 8
 What is the largest barrier to making
FMIS software sustainable?
1. Civil servant capacity building
2. Civil servant retention
28%
3. Costs of maintaining technical 26%
infrastructure: computers,
networks, data centres,
database software, virus
18% 18%

protection etc.
4. Costs to adapt software for 10%

reform
5. Costs to maintain and upgrade
FMIS software
1 2 3 4 5
 Which recommendation do you think
has the biggest impact on reliability +
cost effectiveness of a FMIS?
1. Using electronic payment systems
2. Using digital/electronic signatures for 34%
all transactions
3. Electronic document management
4. Publishing budget execution and
performance monthly 22%

5. Interoperability and reusability of the

information system 15%
12%
6. FMIS development and project
management based on international 7%

standards 5% 5%

7. Using Free/Open Source Software

(FLOSS) in PFM applications 1 2 3 4 5 6 7
 Which of the following options is the
most critical success factor for a
successful FMIS?
1. Proper attention to capacity 43%
building and training plans
2. Close World Bank supervision of 32%
the projects
3. Strong leadership and a
conducive political 16%
environment
9%
4. Flexibility in the way the
project was designed and
managed
1 2 3 4