Finance launches upgraded integrated financial management system

The Ministry of Finance, Planning and Economic Development has today launched the Integrated Financial Management System (IFMS) which is a technology-based finance system replacing the previous accounting system known as PNG Government Accounting System (PGAS).

According to the government, the system, which was designed to ensure compliance with the Public Finance (Management) Act 1995 (as amended), has been implemented in a phased manner to ensure success and to provide the government with a process of effectively and efficiently managing the transition from the current state to the future desired state.

While launching the upgraded IFMS, Henry Musasizi, the minister of state for general duties, said the upgraded IFMS system addresses the requirements of Uganda’s National Development Plan III.

He applauded this development in Public Finance Management but emphasized the need to put very strong safeguards against fraudsters who are always looking for loophole.

“In its efforts to progressively improve governance, the government of Uganda has undertaken wide ranging public financial management reforms to ensure the efficient, effective, and accountable use of public resources,” he said.

Ramathan Ggoobi, the Permanent Secretary ministry of finance, noted that the IFMS upgrade is a big achievement in Public Finance Management, adding that the ministry will continue focusing on all systems integration and their upgrade.

He confirmed that there will be no compromise when it comes to providing resources for developing & upgrading these PFM systems.

“As ministry of finance, top management remains committed to supporting the ongoing PFM system reforms. The long-term goal is ensuring improved public service delivery, sustainable and social economic transformation,” he noted.

Some of the key principles applied in the system include the Central Acquisition of the system, Central Management of the system, decentralized ownership of data and a turnkey concept that was adopted.

The Integrated Financial Management System was launched in August 2014 to monitor how ministries, departments and agencies utilize funds on a real-time basis in a bid to improve budget implementation.

As an electronic system, the automation of public procurement processes to seal the loopholes in the manual system through which state officers stole public funds.

With the Integrated Financial Management System, the government of Uganda is able to monitor their geographically dispersed local governments and administrative units.

With the implementation of this web-based system, the government gained real-time access to information about grants from different sources, increased efficiency, enhanced visibility of taxation requirements, quick and effective decision-making, hassle-free procurement process, improved budgeting and streamlined revenue management, compliance with reporting, and automated accounting processes.