DSA Project 1 Defining an Appropriate IFMIS for Ethiopia DSA Project November 29, 2004

DSA Project 2 International Best Practice of an IFMIS  Integrated but not comprehensive  Start with core modules Budget, Accounts, Cash Management  Custom or off-the-shelf  Capable of evolving  Defined by users  Keep it simple

DSA Project 3 Experience of IFMIS  IFMIS investments often fail  High risk, high cost, long time frame –World Bank survey of experience of IFMS implementation in 27 countries indicates: Between 5 and 9 years to complete Average Bank funded cost US $12 million Only 21% delivered on time, on budget and as specified  Requirements should be driven by users & beneficiaries Not by IT Staff, vendors, donors, consultants Need for organization wide support  Keep it simple Best to focus on core PFM functions

DSA Project 4 Why the DSA IFMIS is Appropriate  Requirements  Availability  Capability  Cost / Sustainability These features reduce risk.

DSA Project 5 Requirements  Core modules Budget Accounts Cash Management  Replicates manual procedures embedded in government  Operates at lowest administrative levels (wereda)

DSA Project 6 Capability  Integrated  Open standards Java, XML  International Standards 3-tier architecture Software frameworks Security RDBMS (MS SQL Server) Process

DSA Project 7 Availability  Currently Federal Big 4 to zones Addis Ababa & Benishangul/G  Scheduled Budget: nationwide FY 98 (2005-6) Accounts: nationwide FY 99 (2006-7) Cash Mgmt: nationwide FY 99 (2006-7)

DSA Project 8 Cost / Sustainability  $2 million  Omnitech PLC – locally developed, supported, maintained  Skills transfer (web technologies & architectures)

DSA Project 9 What is the value added of the proposed EU IFMIS? CriteriaDSA IFMISEU IFMIS Requirements core modules iteratively developed 100% user requirements core not adequately defined Capability Open standards & architecture Integration with additional modules Interface with other systems Proprietary (limited access) Integration with additional modules Interface with other systems Availability All of Ethiopia by FY federal public bodies in 2 years Sustainability Locally developed & maintained Significant external dependency specialist support skills Cost $2 Million Maintenance can run as high as 15% of project cost $12 Million plus Maintenance can run as high as 15% of project cost Execution risk Low (proven system) Very high (unproven system)