Uganda: implementing an Integrated Financial Management System and the automation of the budget process

Summary

• The Implementation of the Integrated Financial Management System (IFMS) was motivated by the Ugandan Government’s desire to improve efficiency in budget preparation, execution and financial reporting.
• Since 2003, the IFMS has been extended across all 22 ministries and 25 central government agencies. The IFMS has also been implemented in 8 local Governments with plans to extend it to 6 more districts as part of the first tier  IFMS implementation. Using a lower (second) tier solution which offers less complexity, the Government intends to further extend the IFMIS to all local governments . The second tier project implementation (based on MS Navision) has recently commenced. The discussion in this note is limited to the first tier IFMS implementation     
• The implementation of the IFMS has enabled the Government to address many of the fiduciary issues faced prior to 2003. This has led to: greater expenditure control and discipline in budget management as a result of improved oversight and enforcement of internal controls; a reduction in the time taken to process payments; improvement in account reconciliation; and more accurate and reliable financial reporting.

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