Governments all over the world have seen the need to have government businesses automated and integrated for efficiency and effectiveness. This has led to the adoption of Integrated Financial Management Information Systems (IFMIS) by most governments in managing public finances.
Required:
i) Identify TWO benefits a country stands to gain by adopting an Integrated Financial Management Information Systems (IFMIS) in the management of Public funds. (2 marks)
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- Improved budgetary, financial management (record Keeping) and reporting processes.
- Provide accurate, timely and reliable financial information to Central Government and Decentralized Institutions and Organizations.
- Uniformity in accounting and reporting with the introduction of a common Chart of Account and Database for all MDAs and MMDAs.
- Improvement in accountability, control, monitoring and auditing of Governmental finances.
- Ensure that Ministries, Department and Agencies (MDAs/MMDAs) spend within their budgetary allocation due to budgetary control.
- Reduce manual processes, duplication of effort and errors.
- Match disbursements with availability of revenues thus Improve efficiency in cash management and treasury Management System.
- Improve interaction between and among other financial management players such as Bank of Ghana (BOG), Public Procurement Authority ( PPA) and Ghana Revenue Authority (GRA), among others.
- Enhance enforcement of financial legislation.
- Complete and timely exchange of data and information among/between MDAs/MMDAs and central government for producing complete, timely and accurate reports (Improve Record Keeping) etc.
- Enhance and re-enforce the internal control systems in public financial management for accountability.
- Provide documentation of business processes, workflows and approval levels to ensure consistent and timely compliance across all MDAs and all MMDAs.
- An effective and efficient budget preparation, execution, monitoring and evaluation mechanism.
- Provide for the ability to budget for, track and monitor projects and grants through the chart of accounts, by using the Project
ii) Explain TWO preconditions required to be met for the successful automation of government business through the IFMIS. (2 marks)
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- Effective information technology infrastructure such as internet connectivity is required to make the automation success.
- Strong political commitment is necessary for setting the tone for effective IFMIS. Political will is needed for resource allocation.
- Expertise to administer the system effectively is required. The availability of human resource with right expertise in MIS is necessary for effective implementation of IFMIS.