Summary
Integrated financial management systems are being introduced world wide. They are sophisticated computer systems which greatly increase the transparency of and accountability for government information. There are many ways of implementing IFMS, but each implementation should include
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budgeting
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accounting
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cash management
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debt management.
Some of the key issues involved are:
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standards and rule setting are centralised, while the actual operations of the system are decentralised to where the business of government is actually being done
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transaction information is recorded once at the point closest to where the transaction takes place and then aggregated and accumulated from that point into centralised systems
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responsibility and accountability are distributed for management of programmes, activities and units out to the people doing the work by providing timely, reliable accurate and complete information systems against which to monitor performance.
Because of the many variations in ways of implementing IFMS it is difficult to determine precisely which records should be kept. Some of the general rules that will assist in determining specific record keeping responsibilities are
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records should be aligned to responsibilities and accountabilities determined in the framework structures
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framework documents that support the design and processes of the IFMS will be critical records
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many of these records will live outside the IFMS system
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policies, procedures, manuals will be important records
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controls on access, inputs and outputs, processes and back ups will be needed for audit purposes
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documenting the system and its operating environment is crucial to proving that the system operated as it was intended.
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Who are the main stakeholders in an IFMS system?
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How do these stakeholders differ from the stakeholders in a traditional mixed paper/electronic system?
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What are the main variables that determine the way an IFMS is implemented?
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Where are the main advantages of an IFMS system for government financial managers?
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Why doe the electronic records of an IFMS system present several problems for public sector records managers?
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What are the core sub-systems that are found in most IFMS systems?
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What other sub-systems might be added?
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List the four features that are generally considered as the minimum required for an IFMS system?
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What is the main advantage that an IFMS system provides in handling data? Why can this only be achieved in an integrated system?
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Why is it necessary to understand the various controls that must be applied to an IFMS system?
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List the four auditing controls used to verify that the information is accurate and reliable.
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What records need to be kept to document the basic aspects of systems operation?
Activity 10
This activity will help you examine the situation in your country and compare it with the suggestions and ideas outlined in this module. Read through this lesson carefully once you have completed the activity and compare your findings.
Lesson 7
What To Do Next?
This module has examined the management of financial records. It has addressed the importance of good record keeping for efficient and effective financial management, and it has outlined the role and importance of stakeholders in financial records management. It also explained the business functions and processes of financial management, in relation to the records generated and examined the information systems and records created by financial management functions. It considered how to manage financial records in a mixed paper/electronic records environment and introduced the concepts involved with integrated financial management systems.
This module has introduced key activities in the management of current and semi-current financial records within the public sector. But which tasks should you undertake first? Which are high-priority and which are low? Each institution will make different decisions based upon:
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the state of record-keeping systems
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the state of preparedness and training of the records staff
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the appropriateness of the legislative and regulatory framework
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the government’s priorities for managing the financial function.
The latter is particularly important – records management is there to serve the wider priorities of the organisation, not the other way round. However, it is possible to offer some recommendations for action, which will help organisations manage their financial records more efficiently. Complete the activity below then consider the suggestions offered here.
Activity 11
Based on the work you did throughout this module, identify the priorities you would establish to establish or improve the financial records management system in your organisation.
Priority 1: Assess the Existing Situation
Almost any change to the existing systems needs to be based on a solid understanding of functions, processes and user requirements. It is also vital to develop a good understanding of the present state of the records. Existing record systems should be surveyed to identify strengths and weaknesses. This should cover
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the legal and regulatory framework
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organisational structures and training for records specialists
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policies, procedures and guidelines
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the completeness of the records inventory and retention schedules
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vital records and disaster recovery arrangements
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records storage
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security of access, including physical security.
One of the key facts to establish is whether problems are widespread or whether they are concentrated in one or two administrative units. The former would suggest problems with the overall framework in which the record system is operating; here a strategic approach may be most effective. The latter might suggest that a more limited and focused approach would be more appropriate.
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