Government Financial Management Information Systems

Abstract

Countries have invested significant resources over the past 25 years in automating public financial management (PFM) processes. The World Bank alone has lent over US$2.2 billion for investment in public sector financial management information system (FMIS) projects.₂ While the pace of this investment may vary year to year, significant sums will continue to be spent on FMIS and related information communication technology (IT) projects as technology advances and business needs change. Paralleling this investment, the literature on FMIS reforms has increased sharply, documenting the many painful lessons along the way. ₃Drawing primarily on public sector experiences, this chapter situates FMIS projects within the broader context of PFM reforms and provides strategic guidance for practitioners on the design and implementation of an FMIS.

The attributes you want in … accounting software resemble those you’re likely to seek when choosing a spouse. You want a faithful (accurate) helpmate who grows with you (capable of being scaled up). You want someone you can cherish through sickness (financial loss) and in health (profitable growth). You want the candidate to be capable of intimacy (keep confidences) yet be open to recognizing his or her faults (an audit function to find and fix errors). And most important you want the relationship to be long lasting – without the need for expensive and debilitating upgrades.₁