Definitions
    Public Financial Management System (PFMS)                            
    is designed to
       support all financial operations,
       collect accurate, timely, complete, reliable and consistent 
         information on all public financial events,
       provide adequate management reporting,
       support government-wide and agency policy decisions,
       produce auditable financial statements.
     June 2006                     PFMS                             2
              Public Financial Management Cycle
            Policy                   Budget 
       Development and             Preparation                       Budget 
        0   Review                                                 Execution
                                        1
                8   Audit and                       Mgmt of    2
                    Evaluation                       Budget 
                                                  Authorization
                                                       s
          7    Budget                                   Commitment  3
               Review &                                   of Funds
              Fiscal Rep.
        F M I S                                                Procurement/
         Web                                                    Purchasing
       Publishing
                6 Debt and Aid                      Payments   4
                   Management                     and Receipts 
                                                     Mgmt Asset / 
                                        5                  Inventory 
                                                            Mgmt
                                      Cash                      Payroll Calcs
                                   Management                     HR Mgmt
     June 2006                         PFMS                                3
                               Components
       Core Treasury System includes the following components:
    2   Budget Execution and Monitoring
    4   Accounting (general ledger, management of payments and receipts)
    5   Cash Management
    7   Financial Reporting
    8   Purchasing / Commitment
    4   Asset / Inventory Management
        Operational support for Spending Units
       Other Public Financial Management System components:
    1   Macro Economic Forecasting
    1   Budget Preparation and Approval
    6   Debt and Aid Management
    4   HR Management /Payroll Calculations
    8   Support for Financial Control and Auditing
    7   Web publishing
    7   Financial Management Information System
     The combination of above components is referred to as integrated PFMS
     June 2006                         PFMS                                4
                Evolution of Treasury Systems
        Treasury development process:
             (Treasury Reference Model)
        1. Establishment of legal and institutional frameworks
        2. Definition of coverage
        3. Definition of system functionality
        4. Design and implementation of Information Systems
     June 2006                     PFMS                             5
                  Evolution of Treasury Systems
     1.  Establishment of legal and institutional frameworks
          Legal : Approval and implementation of the organic budget law
          Organization : Establishment of a countrywide MoF / Treasury 
             organization
          Personnel : Allocation of adequate qualified staff for MoF / 
             Treasury management and operations
     June 2006                         PFMS                                6