1. E-Government Applications & it’s implementation
IT- enabled Public Financial Management Systems – A case study
IT-based National PFM Systems
Government Receipt – Electronic Bill Presentation & Payment
Government Payment – Electronic Fund Transfer

2. Electronic Bill Payment (EBP)
Governments
PFM Functions
Budget Formulation & Control
Budget Execution
Others
Release & Payment
Receipt Management
Accounting & Reporting
Federal
LMBIS/BMIS
Budget Ceiling
Line item & Activity wise budget propose
Budget finalization & approval
Budget authorization
Virement & Source change
Additional budget/ Supplementary Budget
BCS
Recording of virement , source change, additional budget
TABUCS
Line item & Activity wise budget preparation
TSA
Budget Release
Deposit Payment
Other Funds Payment
EFT Integration
Commitment Recording (partial)
RMIS
Revenue Collection, Accounting & Recording
Electronic Bill Payment (EBP)
DMA
Standalone MS Access
Accounting & recording external & domestic loan/borrowing   
INVESTMENT MANAGEMENT
Share Investment/Divestment
Loan Investment & Principal Refund
Manual
CGAS
Authorization
Central Level Accounting
Deposit Accounting
Other Funds Accounting
Integration with TSA
Activity based accounting
Payroll
“Beruju” Recording (entry & clearance)
Annual Procurement Plan
FMIS - DoR
Contract Contingency recording
Contract Management System (separate system)
Only up to Department level
FMIS
Consolidated financial reporting
MIS & Data Repository
 NPSAS Reporting Tool
Consolidation of financial transactions of the central economic entities
Excel based tool
Treasury Operations
AMIS
Aid Management Project & Activities details
Recording of Commitment,
Disbursement
Post-earthquake Assistance Portal
PMS
Pension record & disbursement
PAIS
Recording of land, building & vehicle

3. Line item & Activity wise budget propose
Governments
PFM Functions
Budget Formulation & Control
Budget Execution
Others
Release & Payment
Receipt Management
Accounting & Reporting
State
SUTRA
Budget Ceiling
Line item & Activity wise budget propose
Budget finalization & approval
Based on new COAs, 2017
State TSA
Budget Release
Deposit Payment
Other Funds Payment
Manual
Local
Used by around 172 Local Governments
Activity based accounting
Treasury Accounting
Used by around 70 Local Governments
FCGO’s Initiation
Through DTCOs
Excel based Tool for Annual Financial Statements
Status: Fiscal Transfer
MARS
Based on Local Self- Governance Act, 1995
Revenue Collection Management
Office Administration
PIS
Inventory
Accounting
Piloted only in KMC

4. Requirements for Completeness of PFM Business Process
Budget Formulation & Control System
An effective platform that links policy, planning & budgeting
Implementation of MTFF/MTBF/MTEF
Budget Execution Cycle
Enhance Internal Control Framework, specifically financial control
Treasury Management Framework
Reimbursement Accounting and Project Account

5. Requirements for Completeness of PFM Business Process Contd…
Accounting & Reporting System
Commitment accounting
“Beruju” (irregularities) recording
Assets & inventory management system
Central payroll system interlinked with Personnel Information System
Contract management system including contract contingency tracking system
Inter-linkage of annual procurement plan
Compliance of NPSAS based reporting requirements
Study on Accrual based accounting requirements

6. Digitization of Payments & Receipts
Digitization of payments should be integrated into PFM Systems
“Electronic Fund Transfer” (EFT) - digitization of Government payment
“Electronic Bill Payment” (EBP) - digitization of Government receipt
EFT & EBP must be enhanced and scaled-up with proper integration with National e-payment and include all payment channels (card payment, internet banking, mobile banking, and digital wallet)

7. Digitization of Payments & Receipts Contd…
“Electronic Fund Transfer” (EFT) - digitization of Government payment
Enabling TSA
Usage
Fiscal year 2075/76
Total Number of Transactions through EFT: 108,557
Total percentage of payment made through EFT : 18.17%
Total

8. Digitization of Payments & Receipts Contd…
“Electronic Bill Payment” (EBP) - digitization of Government receipt
Enabling RMIS
Usage
Total Online Users : 891
Total Online RMIS Vouchers : 4606
Total no. of e-payment transaction : 814
E-Payment Rev Amount: 1,12,41,493.94
Total Online Users in RMIS:  891
Total Online RMIS vouchers: 4606
Total No of Txn. E-Payment Throught NCHL payment - 814
Total No of Unique User has paid: 132
Active Users E-Payment (Txn>5)  - 33
E-Payment Rev Amount:
E-Payment (> Rs 100):  
RMIS
Total  Register User : 6342
Total RMIS Txn Vocuher:

9. Requirements for Information Technology & Infrastructure
Enterprise Architecture
Technology Platform
IT Infrastructure
IT Services & Support
PFM Systems as Critical Systems
Others

10. Enterprise Architecture of PFM Systems
Expand National Government Enterprise Architecture to create a PFM segment Enterprise Architecture for PFM following international best practices

11. Technology Platform
Technology diversity increases the cost of ownership
To optimize resources across PFM landscape & increase operational efficiency
Architecture: system must be compatible with National GEA/ PFM Segment Architecture and able to use Enterprise Service Bus for system integrations.
Platform: Secure, Proven and Enterprise grade platform must be used for all PFM system, the choice of platform should also have minimal migration effort and cost.

12. Technology Platform Contd…
Database: All database should be of enterprise edition with support of real time clustering, high security and reliability, the choice of database should also have minimum migration effort from existing system.
Client Side framework: It includes usability, security among others and should be reviewed.
The system should have capability of Online Analytical Processing (OLAP) & Business Intelligence (BI) for improved service delivery and assist with planning, problem solving and decision support

13. IT Services & Support Ensuring quality service delivery & support
Deployment of IT services management with call center & automation of service desk for support service, adopting ITIL framework

14. Capacity Building
Online Courses on PFM Systems with e-learning platform
Certifications on PFM and PFM Systems should be used for QA in capacity development and this can be used to motivate and incentivize professionalism as well ….

15. Others
R&D on emerging PFM related technologies including Block chain, Cognitive computing, Big Data, and Artificial Intelligence in collaboration with National and International think tanks and research agencies
The assessment of dimensions such as human resources/ IT staffing, systems maturity, resource optimization, value delivery, benefit realization, and functional suitability including non-functional features like risk optimization, scalability, business continuity of PFM Systems.
Assess integrated solutions for disclosure of public finance and other sector specific information such as “Open Fiscal Data” along with improvement of e-services for public service delivery – G2C, G2B, G2G.
PFM Systems as Critical Systems: The PFM Systems must be regarded as “National Critical Systems”, and Risk-based Security Framework must be in place to safeguard these critical infrastructures.

16. Optimum Suitability of Core IT Applications
Integrated Financial Management Information System (IFMIS)
Transitioning to single platform system, or integrated systems to support next generation and complete IFMIS/ System of Systems business capability
“Whole of the Nation” consolidated reporting

20. E-Government

21. ICT - enabled public service delivery
Enables public services & their delivery
Websites & portals
Mobile & especially smart phones
Social Media
Kiosks
Drones…
More affordable & effective than traditional supply channels
Enables more targeted, personalized and up-to-date service design and delivery
Access
Convenience, 24/7
Savings in time
Cost of travel to offices

22. ICT-enabled user-centric public services
User-driven and user-personalized services
Co-creation

23. -E-Government Survey, 2018

24. • Evidence about collaborative co-production, crowdfunding
Availability of sources of archived information (policies, budget, legal documents, budgets, etc.); use of digital channels (including mobile
devices/platforms) and open data technologies in the areas of education, health, finance, social welfare, labour, environment.
• Availability of online information on citizens’ rights to access government information (such as Freedom of Information Act or Access to Information Act)
• Evidence about government partnership/collaboration with third parties (civil society, private sector) in providing services
• Evidence about free access to government online services through the main portal, kiosks, community centers, post offices, libraries, public spaces or free WiFi
• Availability of open datasets (in machine-readable non-proprietary formats), related policies/ guidance
• Evidence about collaborative co-production, crowdfunding
• Evidence about engaging citizens in consultation/communication to improve online/mobile services and raise citizens’ satisfaction
• Evidence about engaging citizens in consultation/communication on education, health, finance, social welfare, labor, environment
• Availability of “personal data protection” legislation online
• Evidence about opportunities for the public to propose new open datasets to be available online
• Availability of e-participation policies/mission statements
• Availability of public procurement notifications and tender results online
• Availability of online tools (on the national portal) to seek public opinion and other input in raw (non-deliberative) form policy formation
• Evidence on decisions made that included results from online consultation with citizens in the education, health, finance, social welfare, labor, and environment sectors
• Evidence about governments’ publishing outcomes of policy consultations online
-Countries that have advanced more than 30 positions in the 2018 EPI ranking -Government Survey, 2018

25. E-Government & Digital Divides
the prime focus of early reports on the digital divide—to assessing what people do with their access. A World Bank
report in 2016 on “digital dividends”, another term for “useful usage” or potential digital productivity,
indicates that while global connectivity and service delivery has improved, it has not necessarily
improved socio-economic outcomes due to uneven distribution, which highlights the need to bridge
digital divides.
Table: A selection of digital divides – from access to useful usage -E-Government Survey, 2018

26. Trends in transactional online services
-E-Government Survey, 2018

27. Social Media
“citizens are sharing ever more with each other on social media platforms and tend to consult other citizens, rather than the government, for advice. Put another way, they increasingly use the “social signal” and “social search” to organize and improve their lives. Governments thus need to recognize the value of collaboration and crowd-sourcing, which enable citizens and others to contribute as co- creators” - E-Government Survey, 2018
“Fix-My-Street” enables individuals to report broken or failing infrastructure & other local problems
makes governments more transparent
Issues…

28. Social Media Has social media decentralized power?
Can it enable citizens to connect or hold public institutions accountable?
Can governments combat or leverage social media?

29. IT Governance

30. Aligning IT with business
2.1 Key Challenges of Using IT
Overview
Keeping IT running
Keeping IT Running
Optimizing costs
Aligning IT with business
Aligning IT with Business
Delivering Value
Mastering complexity
Delivering value
Security
Regulatory compliance
Security

31. IT operational failures
2.1 Key Challenges of Using IT
Overview
IT operational failures
Keeping IT Running
Errors when introducing changes
Poor planning of network or storage capacity requirements
Aligning IT with Business
Delivering Value
Insufficient resilience or backup when a critical IT component fails
Security
Insufficient testing
Continuity of IT services for business-critical operations is a must.

32. 2.1 Key Challenges of Using IT
Overview
The gap between business expectations and IT capability exists because of the following reasons:
Inability to align with business priorities
Poorly defined business requirements
Communication gaps between business and IT
Lack of knowledge about potential IT solutions
Keeping IT Running
Aligning IT with Business
Delivering Value
Security
It is critical for the business to drive IT initiatives in order to deliver benefits and realize business objectives.

33. Why do IT projects fail to deliver value?
2.1 Key Challenges of Using IT
Overview
Why do IT projects fail to deliver value?
Lack of committed business sponsors
Keeping IT Running
Aligning IT with Business
Lack of defined business cases for IT-related initiatives
Poor program and project management
Delivering Value
Inadequate monitoring of benefit realization
Security
Identify the right IT projects, clearly define the benefits expected, and monitor the creation of these benefits, on time and within budget.

34. 2.1 Key Challenges of Using IT
Overview
Factors responsible for increased risk of security breaches:
Poorly defined security policies
Insufficient monitoring of potential security-related events
Lack of awareness among users about security risks
Lack of awareness among management of the need to protect information
Keeping IT Running
Aligning IT with Business
Delivering Value
Security
Ensure awareness of IT security responsibilities and risks.

35. 2.1 Key Challenges of Using IT
Regulatory Compliance
Given the pervasiveness of IT, enterprises need to make sure that IT-related legal, regulatory, and contractual requirements are understood and that reasonable measures have been implemented.
This includes the responsibilities of outsourced service providers and business partners.
Mastering Complexity
Optimizing IT Costs
Enterprise
Customers
Suppliers
Service Providers
It is critical to ensure compliance with legal and contractual requirements, both internally and with service providers and trading partners.

36. Diverse technical infrastructures and lack of architectural standards
2.1 Key Challenges of Using IT
Regulatory Compliance
Availability of specialized skills needed to support wide range of technologies
Mastering Complexity
Inability to focus on important service providers and manage key relationships
Diverse technical infrastructures and lack of architectural standards
Optimizing IT Costs
Mastering Complexity
Inability to innovate and adapt to rapid changes and new developments in technology and business requirements
Organize and standardize enterprise IT to handle complexities and avoid excessive costs.

37. Challenges Relating to Optimizing IT Spending
2.1 Key Challenges of Using IT
Regulatory Compliance
Lack of financial management skills
Mastering Complexity
Excessive people costs made worse by high turnover and poor career development
Large financial losses because of failed projects
Optimizing IT Costs
Challenges Relating to Optimizing IT Spending
Ineffective procurement, acquisition and contracting procedures
Excessive costs due to poor management of IT assets
Uncontrolled IT spending by business units
Manage IT like a business and optimize people, processes, and technology-related costs.

38. 2.2 Introduction to IT Governance
Enterprise Governance: Goals
Governance ensures that enterprise objectives are achieved by:
IT Governance: An introduction
Monitoring performance, compliance, and progress against plans
Balancing Performance and Conformance
Setting direction through prioritization and decision-making
Evaluating stakeholder needs, conditions, and options
Difference between Governance and Management
IT Governance Objective: Value Creation

39. 2.2 Introduction to IT Governance
Enterprise Governance: Goals
IT governance is an integral part of enterprise governance.
IT Governance: An introduction
Balancing Performance and Conformance
Difference between Governance and Management
IT Governance Objective: Value Creation

40. 2.2 Introduction to IT Governance
Enterprise Governance: Goals
Governance is about:
Performance: Improving profitability, efficiency, effectiveness, and growth
Conformance: Adhering to legislation, internal policies, and contractual requirements
IT Governance: An introduction
Balancing Performance and Conformance
Difference between Governance and Management
IT Governance Objective: Value Creation

41. 2.2 Introduction to IT Governance
Enterprise Governance: Goals
Governance ensures that stakeholder needs, conditions and options are evaluated to determine balanced, agreed-on enterprise objectives to be achieved; setting direction through prioritization and decision making; and monitoring performance and compliance against agreed-on direction and objectives. While management executes the direction set by the board by planning, building, delivering, and monitoring operational activities to achieve enterprise objectives.
IT Governance: An introduction
Balancing Performance and Conformance
Difference between Governance and Management
IT Governance Objective: Value Creation

42. Realizing benefits Optimizing risks Optimizing resources
2.2 Introduction to IT Governance
Enterprise Governance: Goals
IT governance creates value for the enterprise by:
IT Governance: An introduction
Realizing benefits
Optimizing risks
Optimizing resources
Balancing Performance and Conformance
Difference between Governance and Management
IT Governance Objective: Value Creation

43. Key Internal Stakeholders
2.2 Introduction to IT Governance
Key Internal Stakeholders
IT Manager: How do I manage IT performance?
Key External Stakeholders
Risk and Compliance Manager: How do I ensure compliance with policies, regulations, and laws?
Board and Executives: How do I get value from IT?
Key Benefits from Effective IT Governance
Key Internal Stakeholders
Business Executive and Process Owner: How do I exploit IT for strategic advantages?
IT Auditor: How do I provide independent assurance?

44. Key External Stakeholders
2.2 Introduction to IT Governance
Key Internal Stakeholders
Regulators: Do you comply with regulations?
Key External Stakeholders
Key Benefits from Effective IT Governance
Customers: Is my personal information secure and private?
Key External Stakeholders
Suppliers: Is my business partner secure and reliable?
External Auditor: Are there adequate financial controls?

45. 2.2 Introduction to IT Governance
Key Internal Stakeholders
Increased efficiencies and optimized costs
Better returns on IT-related investments
Confidence and trust of senior management
Transparent and meaningful management information about IT performance
Solutions and services that are reliable, secure, and aligned with business needs and priorities
A nimble enterprise that can respond quickly to changing IT-related requirements
Key External Stakeholders
Key Benefits from Effective IT Governance
Trust
ROI
Incidents
Risks
Failures
Transparency
Benefits
Costs

46. 2.3 Module Summary
Enterprises typically face the following IT challenges that drive the need for IT governance:
Keeping IT running
Aligning IT with business
Value
Security
Regulatory compliance
Mastering complexity
Costs
Governance ensures that stakeholder needs, conditions and options are evaluated to determine balanced, agreed-on enterprise objectives to be achieved; setting direction through prioritization and decision making; and monitoring performance and compliance against agreed-on direction and objectives.
Internal and external stakeholders have a stake, and roles to play, in the appropriate implementation of IT governance. Their buy-in to the plan and clarity of responsibilities is critical to a successful implementation.
Effective IT Governance provides various benefits:
More reliable services
Greater transparency
Responsiveness of IT to business
Confidence of the top management
Higher Return on Investment (ROI)