Government Financial Management Government Financial Management Information System (GFMIS) WorkshopInformation System (GFMIS) Workshop

June 30, 2014June 30, 2014

Presenter Presenter Laurette Deans JP, B.Sc., Dip.Gen Mgt.Laurette Deans JP, B.Sc., Dip.Gen Mgt.

Accountant General’s DepartmentAccountant General’s Department

HUMAN RESOURCE HUMAN RESOURCE MANAGEMENT & MANAGEMENT & ADMINISTRATION ADMINISTRATION

UNIT PRESENTATIONUNIT PRESENTATION

This Unit is a critical arm of the Accountant

General’s Department (AGD) and which could be classified as the engine of the Department. Its functions are diverse and therefore service is channelled into all the other units within the AGD.

Some of its main functions are: Recruiting and Selection, Appointments, Acting assignment, Leave, Staff Welfare, Training and Development, Office Service oversight among others.

OVERVIEW

Employment - A letter is prepared to the OSC

indicating the post to be filled and the effective date of employment. The following should be attached : results of interview, completed P1 or P2 forms depending on the level being filled, 2 passport sized photographs, NIS, TRN, Birth, Academic and Marriage Certificates, Decree Nisi, deed poll etc. Copy of letter from the Post Operation Committee to operate post (if applicable).

Current Process

The unit undertakes the monitoring role,

including following up on delinquencies, reporting on disbursements and repayments as well as the status of the revolving fund.

overview (cont’d)

The Ministry of Finance , which generally leads

the process, sends the loan documentation to the AGD and the latter then disburses the payment to the relevant Ministry or Department based on the specified approved sum. The AGD has the responsibility to manage the disbursement and repayment processes and provides annual reports to the MoFP and the Auditor General.

overview (cont’d)

The Unit has a staff compliment of thirty (30),

which can be identified from the organizational chart in figure 1.

overview (cont’d)

Personal loans Unit Structure

Figure 1

The Unit currently administers seven (7) loan

types, which are:

1. Motor Vehicle Loan2. Motor Vehicle Insurance Loan3. Motor Vehicle Repair Loan4. Salary Advance Loan5. Tertiary Assistance Loan6. Facility to purchase Computer Loan7. Miscellaneous Loan

Personal Loan Types

The recent appointment of officers to Director

positions has benefitted the Unit as it now operates as one Loans Unit. This therefore highlights:

Improved Customer Service -where our customers are receiving quicker responses to their queries and request, as well as:a more positive image to our internal customer.

closer supervision of functions

Current status

Loan processing turnaround time is significant

to the Unit’s operation and so that’s a recurring factor that we must continue to pursue.

Vigorously seeking to reduce the high level of delinquency accounts.

Improved staff moral – by creating the atmosphere for motivation, team spirit and acknowledgement in the performance of their job thereby encouraging a more comfortable working environment.

Current status (cont’d)

Resulting from the Modernization Programme Office

(MPO) initiatives, this Unit, being one of the AGD’s mainly manually operated, is one of the nine (9) areas singled out for concentration under the modernization. Consequently, an assessment of the process flow in carrying out our functions was done to remove the areas which add no value to the process.

The standard operating procedure (SOP) is also being addressed, which will eventually resulted in the revision of job descriptions for staff.

Current status (cont’d)

Payment request from the loans Unit is being

channelled through the following areas; - the AGD’s Accounts Unit - the RTGS process through the Central Treasury

Management System (CTMS)- the Treasury Deposit Unit

Current status (cont’d)

The following are some objectives to be achieved:

Processing time for the respective loans portfolio; providing all necessary correspondence are in place:

- Motor Vehicle Loan - 3 to 5 working days - Salary Advance loan 3 to 5 working days- Miscellaneous & Computer - 5 to 7 working

days- Tertiary Assistance Loan - 10 to 15 working

days To have loan payments made through RTGS, thereby reducing

processing time for cheques

Going Forward

• To increase visitation to MDAs to facilitate

sensitization of Interest calculation, obtaining information on delinquent persons, build relationship with Salaries Officers among other factors.

• Staff rotation to encourage knowledge of other portfolio and by extension succession planning

Objectives (contd)

More than any thing else to have the well

needed Loans Management Software in place for improved efficiency

Objectives (cont’d)

Given that all the functions of processing a

loan is not confined solely to the AGD, the use of an integrated system would significantly improved the flow of collaborating and disseminating of information. A quick glance of a typical loan process from an application to payment:

1. application is made from MDA and forwarded to the MOF –Benefit Administration Unit

2. AGD provides monthly updates of bank balances on loan portfolios

Main Steps in loan processing

3. MOF approves loan and forward package (by hand) to

AGD

4. AGD logs package and checks for indebtedness of borrower

5. Any outstanding interest, additional correspondence or past due amounts must be communicated to applicant

6. Upon receipt of the above, a payment voucher is prepared, certified and authorised, recorded in payment log and forwarded to one of the payment areas as indicated earlier

Main Steps in loan processing

7. In the case of a cheque payment, the Loans Unit would collect the file along with the payment, logs it and inform the applicant to collect payment from the general cashier

8. Once cheque is delivered deduction advice is also sent out to the individual pay station for repayment to commence the following month

Main Steps in loan processing

9. In the case of an RTGS payment the process

would be similar as that of a cheque, however, a payment request to the bank would be prepared and sent off for funds to be transfer to the customer’s account. Similarly a deduction advice would be sent out for recovery of payment.

10.The repayments to the AGD are currently submitted by hand along with deduction listing, or via RTGS followed with email confirmation and listing.

Main Steps in loan processing

In order to improve financial information processing and

reporting systems, the idea of implementing an Integrated Financial Management System (IFMS) could prove as a positive move throughout the public service.

For the AGD implementation of this system would aid major business processes not just within the loans unit, but throughout the Department’s main servicing areas, eg Accounts, Pensions HRM&D, RVM, Consolidated Fund Management, Debt Management, Salaries and Information Technology, just to name a few.

Advantage of using IFMIS

This would make reporting, communicating and cash

management function more effective among the stakeholders internally and externally.

The Steps in the Loans processes mentioned earlier clearly demonstrates that, with IFMIS, the process would be shortened as once the application is made, it could be monitored more freely within the system, indebtedness would be easier to handle as AGD and MDAs would be using the same system and so the flow of information would be quicker. Movement of applicant once they are still within the service, would be easier.

Advantage of using IFMIS

Interfacing challenges, where there is a

breakdown in accessing information from other stakeholders over long periods

Inadequate financial resources for continued training development and maintenance of system

Drawbacks in using IFMIS

Questions

OUR DESIRE SHOULD BE MOTIVATED TO

ACHIEVE AND NOT A DESIRE TO BEAT OTHERS!!!

A QUOTE FOR YOU

END