2019

This is an Awardee of the Government Best Practice Recognition Awards

Title

Decentralized and Transparent Management of Financial Resources through an Integrated Financial Management Information System

Organization

Mindanao State University - Iligan Institute of Technology

Best practice Focus Area(s)

Process Management and Improvement, Financial Stewardship

Summary

Electronic Financial Management is an integrated financial management information system that facilitates the management of the scarce financial resource of SUCs. It is composed of four distinct applications, namely; Purchase Order Administration Module for the Purchasing Service Division, Budget Administration Module for the Budget Management Office, and the Check Management and Cash Disbursement Modules for the Cashing Division. It also has the interface that creates and stores Journal Entry Vouchers data for use by the NGAS-based accounting system.

Background and Problem

Many challenges led to the decision to develop this application. These include the nonavailability real-time data for immediate reference. In the case of the Cashiering Division, manual processing of payroll and disbursement vouchers for check or LDDAP payment was a problem. The accounting system also is looking for computerization of the accounting system for faster and reliable data processing. The perspectives from the different offices were consolidated, which led to the development of the FMIS.

The project was developed with the following objectives:

  1. Initially and primarily to address real time reporting system – Accountability
  2. Improve and shorten processing timeframe – Efficiency
  3. Establish historical data and archive for reference – record system
  4. Establish audit trail – accountability and transparency

Solution and Impact

For the Cashiering Division, the processing personnel now do not need to manually enter the payroll/disbursement voucher data in the FMIS module. They just need to select input the JEV number, search, and select it for payment processing. This automatically tags the payroll data of the employee including the bank account numbers; then, instead of re-encoding the account details of the claimants into the bank-provided payroll register program, FMIS can create a CSV file importable to the bank program which eliminates the manual encoding which is tedious and very prone to errors. Such processes shortened processing time payrolls and vouchers. The FMIS automatically saves historical data of check payee; thus, whenever a new check is issued the program will suggest names to choose from instead of manually typing the name for check preparation. FMIS just encodes the OR series to generate the report automatically. Through the FMIS, only the necessary details need to be inputted and one click will automatically generate ADA. No need for the manual input of the ATM account numbers of employees as well.

For the Accounting Division, an accounting system software was developed tailor-made for MSU-IIT and its end-users. The Accounting System Software was also adopted by some SUCs in the country.

Milestones

Next Steps: Further improve the system to address the requirements of the National Government specifically the Commission on Audit and the Department of Budget and Management