{
  "title": "How to Design a Financial Management Information System: A Modular Approach",
  "publication": "How-To Notes, May 15, 2019",
  "sourceUrl": "https://www.imf.org/en/publications/fiscal-affairs-department-how-to-notes/issues/2019/05/15/how-to-design-a-financial-management-information-system-a-modular-approach-46818",
  "canonical": "https://www.imf.org/en/publications/fiscal-affairs-department-how-to-notes/issues/2019/05/15/how-to-design-a-financial-management-information-system-a-modular-approach-46818",
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  "summary": "A well-functioning financial management information system (FMIS) provides timely, reliable, and comprehensive reports that support implementation of the government’s fiscal policies and fiscal rules, and the formulating, controlling, monitoring, and executing of the budget.",
  "sections": [
    {
      "heading": "Overview and purpose",
      "content": "- A well-functioning financial management information system (FMIS) provides timely, reliable, and comprehensive reports that support:\n  - implementation of the government’s fiscal policies and fiscal rules,\n  - the formulating, controlling, monitoring, and executing of the budget.\n- The How‑To Note examines how to design and transform FMISs to be effective tools of fiscal governance."
    },
    {
      "heading": "Evolution of FMIS architecture",
      "content": "- FMIS architectures have undergone a transformation since these systems were first developed in the 1980s.\n- Many modern FMISs now focus on a few core functions rather than attempting to cover all or most public financial management (PFM) functions; core functions include:\n  - accounting and reporting,\n  - budget execution,\n  - cash management."
    },
    {
      "heading": "Key findings from cross-country survey",
      "content": "- A survey of 46 countries shows many face severe challenges in transforming their FMIS into an effective tool of fiscal governance.\n- Identified challenges relate to:\n  - weaknesses in the system’s core functions,\n  - limited institutional coverage,\n  - limitations of the information technology platforms used,\n  - difficulties in the ease of sharing data with other IT systems."
    },
    {
      "heading": "Modular approach recommendation",
      "content": "- Replacing an FMIS with an entirely new system may not be an optimal strategy.\n- A better approach may be to update or replace one or more core modules of the system—the so‑called modular approach—by utilizing the latest technology."
    },
    {
      "heading": "Preconditions for successful FMIS implementation",
      "content": "- Implementation of an effective FMIS depends on two critical preconditions:\n  - strong political motivation and commitment,\n  - the system’s ability to meet ongoing and anticipated PFM needs.\n\n---\n\n Content in this bundle\n\n- How to Design a Financial Management Information System: A Modular Approach; IMF How To Notes 19/03\n  - How to Design a Financial Management Information System: A Modular Approach; IMF How To Notes 19/03 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - How to Design a Financial Management Information System: A Modular Approach; IMF How To Notes 19/03 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/fiscal-affairs-department-how-to-notes/issues/2019/05/15/how-to-design-a-financial-management-information-system-a-modular-approach-46818"
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    "Authors: Gerardo Uña, Richard I Allen, Nicolas M Botton",
    "Published: May 15, 2019",
    "Series: How-To Notes",
    "DOI: https://doi.org/10.5089/9781498311120.061",
    "A well-functioning financial management information system (FMIS) provides timely, reliable, and comprehensive reports that support:",
    "The How‑To Note examines how to design and transform FMISs to be effective tools of fiscal governance.",
    "FMIS architectures have undergone a transformation since these systems were first developed in the 1980s.",
    "Many modern FMISs now focus on a few core functions rather than attempting to cover all or most public financial management (PFM) functions; core functions include:",
    "A survey of 46 countries shows many face severe challenges in transforming their FMIS into an effective tool of fiscal governance.",
    "Identified challenges relate to:",
    "Replacing an FMIS with an entirely new system may not be an optimal strategy.",
    "A better approach may be to update or replace one or more core modules of the system—the so‑called modular approach—by utilizing the latest technology.",
    "Implementation of an effective FMIS depends on two critical preconditions:",
    "**How to Design a Financial Management Information System: A Modular Approach; IMF How To Notes 19/03**"
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