#12021 IFMIS Capacity Building Program Nigeria-KANO State Integrated Financial Management System (SIFMIS) Organized by KPFIS Korea Public Finance Information Service AFRICAINE AFRICAN DE DE DEVELOPE Adamu Kabo Idris 20th May, 2021 Supported by AFRICAN DEVELOPMENT FUND WORLD BANK GROUP KDI SCHOOL KDI School of Public Policy and Management SAFRICAN DE DEVELOPPEMEN AFRICAN DEVELOPMENT BANK GROUP#2KANO SIFMIS APPLICATION ORACLE $12 E-BUSINESS SUITE ORACLE General Cash Management Inventory Human Resources BUSINESS ANALYTICS Purchasing Ledger Payroll Hyperion Planning Receivables Payables/ Payments Fixed Assets ¡Procurement ORACLE® DATABASE 1#3Nigeria-Kano State: IFMIS Overview System name: State Integrated Financial Information System (SIFMIS) System modules: Budget planning, PIM, Budget execution, Accounting, Reporting, Debt Mgmt, Asset Mgmt, Purchasing, Payroll, etc. Interfaces: Kano Internally Generated Revenue Assurance Platform (KIGRA) Application SW: Commercial package (Oracle E-business suite) Use of open source: Databases used Scope: State Level # of system users: 82,060 # of concurrent users: 162 # of central gov entities connected: (About 14 MDA's are currently connected) #of local gov entities connected: YYYY Operational since: December 2019 Hosting environment: Main data center, Disaster recovery center, Government cloud Gov service bus & APIs: proprietary interoperability platform Other platform info: 2#4KANO SIFMIS GOVERNANCE STRUCTURE Infrastructure Workgroup Project Sponor Steering Committee H Business Owner Audits and Compliance Project Technical Implementation Team Training Coordination & Change Management Workgroup SIFMIS Vendors Infrastructure) Budgeting Workgroup Application Workgroup HRMIS & Payroll Workgroup Support Workgroup (Application & IT, Security and Risks Workgroup 3#5ACHIEVEMENTS 1. Expenditure Control: Vide centralized recording of Real-time Transactions in accordance to Budget Planning, Budget Execution and Expenditure Management, Processing of Payments and Consolidation of Financial Statements, etc. 2. Compliance: Ministries Departments and Agency's (MDAs) have the capacity to record real-time transactions in the system, while the non connected MDAs can also record their transactions through near-by connected MDAs or directly at the Accountant General's Office (SIFMIS CENTER) 3. Elimination of Multiple Salary Payments: The Human Resource application (HRMIS) assist in tracing ghost workers and those receiving salary and Pension concurrently. 4. Planning & Budget: As a result of the Global Pandemic the budget review process was done in a timely manner. 4#6Selected IFMIS good practice case The Planning and Budget Ministry now have a single source of data/ information to properly and timely plan the State's annual budget and track expenditures as all data consolidated in the SIFMIS is accessible by other key sectorial MDAs, typically, Ministry of Planning and Budget as well as Ministry of Finance; The integration of SIFMIS with Kano State Internally Generated Revenue Assurance (KIGRA) Platform promote and ensure Transparency, and Accountability in Public Financial Management (PFM). The assessment was conducted independently by Tax Administration Diagnostic Assessment Tools (TADAT) which led to scoring of M1 A. 5#7SIFMIS Challenges The 2019 General Elections There were 3 elections held in Kano in March (2nd, 9th and 23rd) and given the fact that most of our personnel live in the South-West part of Nigeria, a large proportion of them took long time off to travel to the South-West to be able to exercise their civic duties and more importantly, to be reasonably assured of their safety and security during this volatile/uncertain period. Easily, upwards of 3 weeks was virtually lost to this singular event. NO Non-readiness of the Primary Data Centre This facility was meant to have been renovated and put into shape by the Purchaser at project inception. Having failed to do this for months after the project commencement, we had to step in sometime in mid-March to commence the renovation works (with a promise to be reimbursed by the State). The late commencement of the civil works has delayed some activities tied to this facility. Lack of Complete Payroll Data 1. Provided Uncomplete HR/Payroll Datadelayed for four (4) Months. 2. Tax (PAYE) Deduction, 3. Union Deductions. 4. Loans Schedule 5. Cooperative Association Monthly deductions, 6. Entire Pensioners Payroll data as well as the Legacy Pensioners payroll run results for the months of Feb Apr 2019 are yet to be provided. Delayed Assent The project awaited the commissioning/deployment instructions from His Excellency. This was originally slated for July 22nd 2019 but was deferred till December 2019.#8Selected key challenge The Change Management aspect: The Business owners of the project were unable to understand the detailed scope of the project, which brings about a bridge of communication with the chief executives. This necessities the re organization of the Project steering committee members. The project implementation team find it difficult to meet with the state executives and discuses the project challenges and proposed way forward. 7#9IFMIS Modernization Plans & Future Directions For the purpose of maintaining Transparency and Accountability earlier achieved in the course of executing the project and the milestone achievement, with the aim of promoting prudence in public financial Management, the onboarding and consolidation of the entire State Government MDA's into the SIFMIS Platform is our primary objective. The SIFMIS Center technical staff are working tirelessly in developing a transitioning framework plan towards developing a highly secured local content ERP that will replace the Oracle E-business suite for sustainability and more confident in ownership. The plan will aid Kano State from expending more funds on yearly licensing renewal most especially in this trying times of dwindling revenue. The planned customized ERP will be leveraging on the existing state of art IT infrastructure currently been used. 8#10Reference 6#11IFMIS Overview The Kano State Government with assistance by the European Union, through the State and Local Governance Reform (SLOGOR) Project has acquired and implemented State Integrated Financial Management Information System (SIFMIS). SIFMIS is the information system for use of recording, accounting, and reporting on the overall fiscal operations of the Kano State Government. By fiscal operations, the SIFMIS has the functionalities for budget planning, budget monitoring and performance, expenditure management, preparation of financial statements and bank reconciliation, among its core functionalities. The application can be deployed on the web via internet explorer access or client-desktop deployment. The application is centrally installed at the Main Data Center (MDC) and then rolled out to selected Ministries, Departments and Agencies (MDAs). There is delivery of Disaster Recovery Site (DRS) for the SIFMIS. The DRS shall provide automatic recovery for business continuity in the event of a disaster at the MDC. 10#12The KIGRA platform is a secure, web-based application that serves as an invoicing and payment portal for the Kano State Government across both tax and non-tax revenues. It has in-built financial transaction controls designed to prevent the abuse of bank mandates by tying invoices to payments while providing an executive dashboard for government to monitor the flow of funds from citizens into designated revenue accounts. The platform provides interfaces for stakeholders in the Kano State Revenue Collection process to interact with the necessary agencies/individuals for assessment, invoicing/billing and payment purposes. The platform provides various dashboards at both executive and operational levels to monitor all revenue related activities and measure performance against pre-defined metrics. The KIGRA platform is modular, and integrates various software services that perform the information gathering, processing, storage, retrieval and transmission of data required to manage public payments and the sweeping of funds into the state-mandated revenue accounts. The system is connected to all Nigerian banks, local switches (NIBBS) and payment gateways and switches using the supported payment platforms. KIGRA's Electronic Bill Presentment and Payment (EBPP) framework will facilitate the use of electronic channels by citizens to view/pay bills and perform other related transactional activities on a self service basis. 11