SISTEM PERBENDAHARAAN & ANGGARAN NEGARA (SPAN/e-Budgeting)

Bobby Nazief Staf Khusus MENKEU bid. Teknologi Informasi

PUBLIC FINANCIAL MANAGEMENT (PFM) REFORMS IN INDONESIA

Key financial management reform objectives Improve institutional image through adopting principles of Good Governance Strengthen fiscal control

ensure effective implementation of the budget allocations greater transparency in government financial management.

The DPR enacted several laws to support the reform objectives

State Finance (Law 17/2003) State Treasury (Law 1/2004) State Audit (Law 15/2004)

An Integrated Financial Management Information System (IFMIS) is essential to introduce and sustain these reforms IFMIS will be implemented through Sistem Perbendaharaan dan Anggaran Negara (SPAN)

SPAN AS THE FOUNDATION FOR PFM REFORMS

Accounting and Budgetary Reforms: Integrates budget execution across ministries, as required for MTEF and Performance Based Budgeting reforms Provides the ability to maintain a centralised General Ledger (GL) system for all Government agencies Provides the data integrity, flexibility and consistency required for modernization of accounting, budgeting and reporting Provides a single window electronic interface for other systems such as payroll, debt management, procurement, and audit. Organizational Reforms: Operationalizes the business process reforms underway in KPPNs Executes processes and applies controls with minimal manual intervention, allowing personnel to focus on analysis and strategy Banking and Cash Management Reforms: Enhances the benefits of TSA reform. Automates bank reconciliation and enables electronic interfaces between banks and treasury offices. Enables Treasury participation in BIs payment system reforms and provides real time information to BI for monetary policy and debt management

SPAN CONTEXT
LINE MINISTRIES
RKA-KL DIPA

EXTERNAL LINKS
BANK INDONESIA RTGS BIG-eB SSSS-TERMINAL
SISTEM PERBANKAN

SISTEM AKUNTANSI INSTANSI

KOMITMEN SPM DATA PROYEKSI: PENERIMAAN PENGELUARAN SISTEM AKUNTANSI BARANG MILIK NEGARA

MAIN USERS
DJPBN: PUSAT KANWIL KPPN

GL

DJA

MOF
SISTEM PENGELOLAAN & AKUNTANSI UTANG

OTHER USERS
UNIT ESELON 1 DEPKEU DEP. TEKNIS BAPPENAS AUDITOR: IRJEN BPK BPKP

SISTEM PENGELOLAAN & AKUNTANSI INVESTASI

MODUL PENERIMAAN NEGARA (MPN) DATA PROYEKSI: PENERIMAAN PENGELUARAN

CORE FUNCTIONAL PROCESSES & INFORMATION FLOWS

11. Treasury produces Budget execution reports for other stake holders 10. Treasury produces consolidated fiscal reports from the Treasury system 3. Treasury enters initial budget appropriations, allotments, cash limits and in year transfer data to Treasury system

Other Stake Holders

Directorate General of Budget

1. Budget Appropriations

Directorate General of Treasury

DIEA 9. DIEA accesses Treasury system to Produce reports

8. Treasury receives information on Deposits in TSA ( e.g. tax and Revenue Receipts, broken down by individual transactions via RTGS

Suppli ers

Tax payers

Banking Network
C O M M E R C I A L B A N K S

2. DG- Treasury approves Budget allotments and cash limits for subordinate units

Line Ministry
line ministry reconciles information from Treasury and SUs to prepare departmental accounts Accounting Reports from Treasury

Central Bank (TSA)

Treasury Units (KPPN)

Accounting reports from Spending Unit

7. Treasury system passes payment transaction to the Interbank clearing system-RTGS 6. KPPN processes SU payment requests

Spending Units

4. Spending Unit forwards payment request to KPPN

Internal audit section 5. Internal audit performs on line and concurrent verification of sample transactions as they are processed by the KPPN

Kanwil/KPPN Access to zero balance accounts in Commercial banks for cash disbursements/deposits

BENEFITS TO KEY STAKEHOLDERS

The Directorate General of Treasury in the Ministry of Finance, and its regional offices to undertake budget implementation, including payment processing, and perform associated accounting functions, including reporting in a near real-time manner; The Directorate General of Budget and Fiscal Balance of the MOF to obtain the status of actual expenditures to enable budget monitoring and assist in budget preparation for out years; The Cash Management Department of the Directorate General of Treasury to provide the information it requires for cash management; Line ministries and agencies, to access financial information and reports pertaining to their organization; By the Government auditing organizations (BPKP and BPK) to access financial transaction data for auditing purposes.
5

KEY BENEFITS OF SPAN SUPPORTING BUDGET & TREASURY OBJECTIVES (1)

SPAN is the tool that will enable the key transformation of DG Treasury business operations by providing:
A reliable cash management system which will enable the preparation of cash flow forecasts and plans. Effective control budget allocation, expenditure commitments, and spending limits. Capture of payment data at source, with data being entered once only, and online transfer to centralized and consolidated databases. Maintenance of comprehensive and reliable centralized databases of all government financial transactions, covering the full range of financial processes from budget preparation, allocation, commitment, spending, accounting etc; provide an associated budget rules database. A comprehensive reporting system that enables reliable management reports on government financial operations to be generated in real time enabled by modern information systems and made available to all stakeholders.

KEY BENEFITS OF SPAN SUPPORTING BUDGET & TREASURY OBJECTIVES (2)

Readily accessible and complete data records of all financial operations to enable full and comprehensive audits to be conducted using electronic audit tools. Comprehensive online capabilities to Line Ministries and other agencies to enable them to submit information electronically and interrogate online centralized databases to access their information. Progressive transition to accrual based accounting systems, as mandated by the State Treasury Law. Fully automated treasury operations, reporting and accounting.

BASIC OBJECTIVES OF SPAN

Control: over the Governments budget and the assets and liabilities of government; and Reporting: comprehensive, reliable and timely information on the financial position of the Government so as to facilitate government financial management.

SPAN FUNCTIONS
1.

2.
3. 4.

5.
6. 7. 8. 9.

Budget Preparation Management of Spending Authority Commitment Management Payment Management Processing of Government Receipts Cash Management General Ledger & Chart of Accounts (CoA) Reporting Maintenance of Reference Information
9

Current Systems

RKA-KL

DIPA

SP2D

Reporting

Systems are aligned according to business functions (e.g. RKA-KL for Budget Planning and SP2D for Budget Execution) Data is owned by applications and requires manual re-entry People specialise in use of a single application There is lack of integrated reporting It is difficult to reconcile information from different systems for an 11 accurate and reliable view

SPAN AS THE FOUNDATION OF IFMIS

Reporting
Debt Management System Central/Comm ercial Bank
Financial Statements, Annual Reports, Management Reports, Stakeholder Reports

Core Accounting System

General Ledger Accounting Financial Reporting Treasury/Cash Management
Bank Reconciliation

Payroll

Human Resources

BUDGET PREPARATION ENHANCEMENT

Macro-economic Forecasts MTEF Preparation Performance-based Budgeting

Budget Cycle
Budget Preparation

Budget Allocation

Budget Commitment

Budget Execution

Pensions

Procurement

Fixed Asset Management

Stores and Inventory Management

Accounts Payable
Purchasing

Government Receipts Revenue Management

Customs and Tax Revenue

11

Audit

Audit

LEGENDS
Core Elements of SPAN
Additional Subsidiary Ledgers or Modules Feeder Systems

Audit Ledger Data and Information Flows Budget Data and Information Flows
12

SPAN WILL ALLOW INTEGRATION AND STANDARDISATION OF BUSINESS PROCESSES

Budget Planning to Budget Execution
Satker

RKA-KL

DIPA

SP2D

Reporting

The SPAN solution will be aligned according to business processes The SPAN solution will encompass and cut across organisational functions SPAN will allow many features to be accessed by different people Boundaries between applications will become blurred through automated integration with systems like MPN, Debt Management, Investment Management, Asset Management

Standardising User Interfaces and Application Interfaces will allow faster, better integration of processes across business functions.

SPAN INFRASTRUCTURE
MoF Jakarta
Lapangan Banteng/Wahidin Campus
PT Telkom Network
Internet Internet (PT Indosat)
L e a se d Line

Closed Call Group (0801, 0809, etc.)

Indonesian Banking System

Extended Jakarta MoF Campus (Frame Relay, Leased Line, Wireless, etc.)

l-in Link

Fi be

rO pt ic

Backup D ia

Data Recovery Center (Bandung)

Category 1 Satellite Offices

(high-volume traffic, i.e., Kanwil/KPPN)
up al -

Di

Di

al

-u

14
Category 2 Satellite Offices
(Intermittent traffic, i.e., LMRO/LMSU)

SPAN TIMELINE
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2008

2009

2010

2011

2012

2013

Improvement of Business Process & Financial Management

Assessment & Planning

COTS FitGap Analysis

COTS Configuration

COTS CRP

COTS Pilot

COTS Roll-Out

Change Management & Communications

Funded by World Bank 2-Stage Bidding Procurement: 1st Stage: October 05 (IFB-01/GFMRAP/2005) 2nd Stage: April 08 (IFB-02/GFMRAP/2007) 2nd Stage (re-do): October 08

15