Russian Treasury Modernization Project Implementation Experience

1

Deputy Head of the Russian Treasury

S.B. GuralnikovS.B. Guralnikov

- General Information about the Federal Treasury - Main Functions and Architecture of the Federal Treasury Automated System (FTAS)- Integrated Project - Lessons learned from the development stage - Experience of the Federal Treasury Information System Implementation - Architecture of Remote Financial Documents Flow System (SUFD) and specific features of its implementation - Further development of information systems on FTAS basis

TABLE OF CONTENTSTABLE OF CONTENTS

2

General Information about the Federal TreasuryGeneral Information about the Federal Treasury

3

Overall Project Implementation Results1998 - 2002 год 1998 - 2002 год

((start of project preparationstart of project preparation))

• No Single Treasury Account• Spending units accounts opened in

commercial banks• No commitments control system• Imperfect budget classification with no

possibility to control expenditures• Budget revenues and expenditures are

accounted by independent agencies• Multiple diverse independently developed

information systems in FT offices• Significant balances on budge accounts are

not used

20122012

• Federal Treasury is one of the main financial Federal Treasury is one of the main financial management bodies in the country management bodies in the country

• Operational STAOperational STA• Unified information system has been Unified information system has been

introduced, transfer to new FTAS nearly introduced, transfer to new FTAS nearly completedcompleted

• 23 23 607607 budgets being serviced• Over 78Over 78 000 000 bank accounts• Over Over 222020 000 000 client organizations• Over 2 3Over 2 300 00000 000 certificates for electronic

signatures issued free of charged• Over Over 40 000 00040 000 000 payment transactions on

average per month• 2727..1 1 trln rubles trln rubles accounted budget revenues• 1919.6 .6 bkn rubles bkn rubles revenues from interest on

deposited budget funds

4

Main Stages of FTAS Development

Roll-out

•2007 •2008 •2009 •2010

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

•2006

Q1 Q2 Q3 Q4

DevelopmentPilot implementation

•2011

Q1 Q2 Q3 Q4

Preparation phase – difficult comprehension of the system requirements

Development – delays and debates on the system design and functionality, modification of legislation

HOWEVER : significant time required for tender preparation, selection and design paid-off by relatively painless and rapid implementation

2002-2004 – development of technical requirements and tender documentation

2004-2005 – two-stage tender

•2002 •2003 •2004 •2005

5

Main Functions and Architecture of FTASMain Functions and Architecture of FTAS

6

Oracle Hyperion

Oracle BI Publisher

Oracle Discoverer

System Modules

Electronic document flow, Client’s automated workstation, off-line local treasury office (LTO), security server

Technological platform

Cash expenditures planningBudget reporting

Oracle E-Business Suite modules:

Oracle Financials

Oracle Purchasing

Oracle Inventory

System of electronic documents exchange (SUFD)

Registration and delivery of budget dataCommitments accounting and controlReceipts processingPayments managementGeneral LedgerMaintenance of reference materials

RBMS Oracle 10g EE,

Oracle Developer Suite,

Oracle AS 10g,

Oracle Identity Mgt,

Oracle Essbase7

Project Integrity Project Integrity

8

Comprehensive approach to the system design

FTAS

New business processes Infrastructure

Information security New software

• Set of measures to improve methodological , legal and regulatory framework, training (!)

• Implementation of set of measures to ensure information security (separation of loops, hardware and software, organizational and technical measures), training (!)

• Modernization of IT infrastructure (communication system, engineer support system, operation management system, server equipment), training (!)

• Application software development and implementation, training (!)

99

PROJECT COMPONENTS INTEGRATION

Legislation Improvement Component

TR

AIN

ING

TR

AIN

ING

1010

Lessons learned at Development StageLessons learned at Development Stage

1111

Experience gained at development stage

• Important of thorough development of requirements at the tender stage• No matter how thoroughly they are described, there will be misunderstandings with the

supplier at the development stage – need for dispute resolutions mechanisms and for flexibility• Importance of expert review for documents preparation and control over supplier (Integrator) • Importance of comprehensive approach to system design – taking into consideration of all

components (role of the World Bank) • Importance of realistic planning, top-management’s expectations control (initially nonrealistic

schedule for FTAS development) • CONCEPTUAL choice – to develop the system for existing regulatory framework or to change

regulatory base for the developed system• At the design stage, it is important to clearly document all details of business processes for

common understanding of the system functionality by the client and the supplier• Planning and control of interrelated tasks deadline – the system quality will anyway depend on

the weakest element

1212

FTAS Implementation ExperienceFTAS Implementation Experience

1313

Overview of the System Implementation Activity

Implementation stages• Infrastructure preparation (communication, engineering systems, server equipment) (2006-2008); • Comprehensive application software testing (2008) and fine tuning;• Pilot implementation (4 regions) - 2009• Roll-out (5 waves) – 2010-2011.

Implementation challenges• Need to ensure continuous and high quality service for the FT clients;

• Changing legislation (moratorium only for one year);

• Transfer from decentralized system (over 2 500 data bases) to centralized one (83 regional data bases of the same structure).

1414

Importance of Planning and Integration

• Planning – work plans for each contract, each site, and each project;

• Implementation procedures, regulations – key to successful roll-out (industrial approach);

• Alignment of activity schedules for all components at each site;

• Risk analysis for each component (identification of weak elements).

Ид. Task Name Длительность Начало поплану

проекта

Окончание(прогноз)

Срок поКонтракту

Предшественники

1 Основные результаты (по стадиям 2 и 3) 414 дней Ср 25.04.07 Пн 24.11.08 НД

2 ППО готово к внедрению 0 дней Пн 17.03.08 Пн 17.03.08 НД 48

3 СИО внедрено для УФК пилотных регионов 0 дней Ср 25.04.07 Ср 25.04.07 НД 78

4 СИО внедрено для ОФК пилотных регионов 0 дней Пт 21.12.07 Пт 21.12.07 НД 82

5 ВТС внедрено для пилотных объектов 0 дней Вт 30.10.07 Вт 30.10.07 НД 96

6 Серверное оборудование установлено для пилотных регионов 0 дней Пт 21.03.08 Пт 21.03.08 НД 102

7 ППО установлено в пилотной зоне 0 дней Чт 07.08.08 Чт 07.08.08 НД 130

8 Опытная эксплуатация ППО завершена 0 дней Пн 24.11.08 Пн 24.11.08 НД 132

9

10 Подготовка к внедрению системы 790 дней Пн 23.01.06 Пн 02.02.09 НД

11 Разработка и тестирование ППО 790 дней Пн 23.01.06 Пн 02.02.09 НД

49 Закупка серверного оборудования и ПО для пилотныхрегионов

191 дней Пн 19.03.07 Пт 07.12.07 НД

57 Закупка общесистемного, офисного и антивирусного ПО 87 дней Вт 22.08.06 Ср 20.12.06 НД

58 Создание ВТС - подготовка пилотного внедрения 17 дней Пт 01.06.07 Пн 25.06.07 НД

59 Анализ результатов тестирования и уточнение характеристик ВТС 7 дней Пт 01.06.07 Пн 11.06.07 НД 29

60 Принятие решения по схемам реализации ВТС 10 дней Вт 12.06.07 Пн 25.06.07 НД 59

61 Аудит пилотных объектов и дооснащение 297 дней Чт 30.11.06 Чт 17.01.08 НД

62 Аудит документации и объектов 45 дней Чт 30.11.06 Ср 31.01.07 НД

63 Подготовка ТТ для дооснащения пилотных объектов 22 дней Чт 01.02.07 Пт 02.03.07 НД 62

64 Дооснащение объектов 230 дней Пн 05.03.07 Чт 17.01.08 НД 63

65 Объекты готовы к установке серверного оборудования 0 дней Чт 17.01.08 Чт 17.01.08 НД 64

66 Проектирование и закупка СУЭ 408 дней Пн 06.11.06 Вт 27.05.08 НД

75

76 Внедрение системы в пилотных регионах 712 дней Вт 11.07.06 Вт 31.03.09 НД

77 Внедрение СИО для пилотных объектов 311 дней Пн 16.10.06 Пт 21.12.07 НД

78 Внедрение СИО в УФК 140 дней Пн 16.10.06 Пт 27.04.07 НД

79 Внедрение СИО для УФК Ульяновска 110 дней Пн 27.11.06 Пт 27.04.07 Ср 31.01.07

80 Внедрение СИО для УФК Саратова 134 дней Пн 16.10.06 Чт 19.04.07 Вс 10.12.06

81 Внедрение СИО для УФК Самары 88 дней Пн 04.12.06 Ср 04.04.07 Пн 19.02.07

82 Внедрение СИО в ОФК 147 дней Чт 31.05.07 Пт 21.12.07 НД

83 Внедрение СИО для ОФК Ульяновского региона 124 дней Чт 31.05.07 Вт 20.11.07 Пн 30.07.07

84 Внедрение СИО для ОФК Саратовского региона 116 дней Пт 13.07.07 Пт 21.12.07 Сб 04.08.07

85 Внедрение СИО для ОФК Самарского региона 122 дней Чт 14.06.07 Пт 30.11.07 Ср 18.07.07

86 Внедрение ВТС для пилотных объектов 342 дней Вт 11.07.06 Вт 30.10.07 НД

97 Установка серверного оборудования в пилотных регионах 75 дней Пн 10.12.07 Пт 21.03.08 НД

103 Пилотное внедрение ППО 213 дней Чт 31.01.08 Пн 24.11.08 НД

133 Проектирование и пилотное внедрение СУЭ 210 дней Ср 11.06.08 Вт 31.03.09 НД

134 Обследование и проектирование 140 дней Ср 11.06.08 Вт 23.12.08 НД 74ОН+10 дней

25.04 24.11

17.03

25.04

21.12

30.10

21.03

07.08

24.11

23.01 02.02

23.01 02.02

19.03 07.12

20.12

01.06 25.06

11.06

25.06

30.11 17.01

31.01

02.03

17.01

17.01

06.11 27.05

11.07 31.03

16.10 21.12

16.10 27.04

27.04

19.04

04.04

31.05 21.12

20.11

21.12

30.11

11.07 30.10

10.12 21.03

31.01 24.11

11.06 31.03

23.12

Кв. 1 Кв. 2 Кв. 3 Кв. 4 Кв. 1 Кв. 2 Кв. 3 Кв. 4 Кв. 1 Кв. 2 Кв. 3 Кв. 4 Кв. 1 Кв. 2 Кв. 3 Кв. 4 Кв. 1 Кв. 2 Кв. 3 Кв. 4 Кв. 12006 2007 2008 2009 2010

1515

System Roll-Out

5 roll-out waves, 10-15 regions in each wave, clear roll-out schedule with identical activities set, separate team of supplier in each region working in cooperation with implementation team of regional treasury office (RTO)

• Preparatory activitis;• Installation of application SW and user’s automated workplaces;• Data entry/migration;• Training of key users;• Comprehensive testing; • Testing operational days;• Training of remaining users;• Test operations (at pilot sites);• System go live.

1616

On-line SUFD architecture and its implementation

1717

Interaction between FTAS and automated workplace “Other participant of the budget process”: SUFD, portal solution

Интернет

УБП

УБП

СЭД(офлайн)

АСФК

БД Oracle e-Business Suite

Подсистема информационного взаимодействия

СУФДПортал

18

Implementation of online SUFD

FTAS

July August September October November

3 wave19 RTO

Online SUFD

June

4 wave26 RTO

Total: 79 RTOs within 4 months. Implementation period for one wave– 1 month based on standard implementation plan.

SUFD-1 wave– 22 RTOs (including 21 RTOs of FTAS-4 wave). Completed.SUFD-2 wave– 13 RTOs. Completed.SUFD-3 wave – 19 RTOs. Completed.SUFD-4 wave – 26 RTOs (including 17 RTOs of FTAS -5 wave). Completed.

5 wave17 RTO

4 wave21 RTO

1 wave22 RTO

2 wave13 RTO

20112011

1919

Document with digital signature is received by FTAS data base and is stored there unchanged (with digital signature assigned at the client level).

Compliance with legal norms and principles upon digital signature utilization : Compliance with conformity principle : 1 user– 1 digital signatureDecrease of possibility to use several digital signatures by one employee

Documents are not stored at the workstations/servers of other participants of budget process, there is no risk of unauthorized access to information.

Connection with RTO user through safe VPN-connection. No interception of information is possible.

Increase of legal and information security with online SUFD

2020

Further development of information systems on FTAS basis

2121

Further development of information systems on FTAS basis

Key Performance Criteria

Development of information and analytical system of key performance criteria of budget execution in in the budget system of the RF

Public Procurement Portal

Development of official site for placing information about procurement of goods and services

Technological support system

Development of technological support system

Accounting for individual payments

Roll-out of the system allowing to account for each payment of individual

Integrated public finance management IS

Development and implementation of integrated public finance management information system “Electronic Budget”

2222

New opportunities, new tasks for the FT

Пользователи:•Office of the President of Russia;•Office of the Government;•Ministry of Finance;•Ministry of Regional Development;•Public Authorities;•Other external users.

• Implementation of centralized system provides new opportunities;• System of key performance indicators of budget execution– monitoring of the situation in the budget system on the basis of FTAS and other state systems.

2323

FTAS Interaction with Key Performance Indicators System

FTASFTAS

RTO -1RTO -1

FTASFTAS Interregio

nal operation deprtmnt

Interregional

operation deprtmnt

FTASFTAS

MainDeprtmnt

FT

MainDeprtmnt

FT

External Data :External Data :

●MoF●Rosstat

Учетные системы ФК

DATA STORAGE

(updated daily)

DATA STORAGE

(updated daily)

KPI multi-user system :

KPI multi-user system :

Common form:●Baseline indicators●Key indicators●Graphic display●Additional analytical

functions

Desktop● Indicators●Alerts●Pre-configured reports

Statutory reports

MDFT

MinFin

RTO

Government authorities●RF constitutent

entities●etc

Other external users

2424

Enhancement of efficiency: general approach

25

Tasks:

Ensuring common manageable work method

Reduction of functional processes costs related to functional

Streamlining organizational and staff structure

Objective:Efficient structure and efficient execution of functions/processes

Prerequisites Administrative, budget, civil service reform to improve

public administration efficiency

26

Overall logic of the system operation

Regulation Analysis of operations statistics

Model “as it is”

Statistics of operations

Structure and size

Modeling

Load optimization

Technology compliance control Контроль,

detection of bottlenecks

General efficiency analysis

27

Implementation benefits

Costs optimizationRedistribution of functions between

employees and units

Optimization of processesReduction of operations number

(exclusion of redundant operations)

Motivation enhancementEfficiency oriented, moral and

material incentives

Optimization of organizational structure and staff schedule

Restructuring of units and divisions

System for processing individual payments

RevenueAdministrator

RevenueAdministrator

Unified portal of public servicesUnified portal

of public services

Federal TreasuryFederal Treasury

Payers

Bank of RussiaBank of Russia

1. Debt accrued with unique ID

2. Information on charges

4. Payment of services with unique ID7. Information on

payment

8. Transfer of funds

9. Confirmation of paid amounts

10. Acknowledged payments and charges

11. Acknowledged payments and charges

3. Information on charges

11. Acknowledged payments and charges

Payment systems,Credit institutions

Payment systems,Credit institutions

6. Information on charges

5. Query

2828

29

Cash managementCash management PayrollHR management

PayrollHR management

Asset managementAsset management

ProcurementsProcurements

Budget allocations management

Budget allocations management

Budget commitmentsBudget commitments

Payments and revenues management

Payments and revenues managementPublic debt and aid

managementPublic debt and aid

management

Budget reports and analysis

Budget reports and analysis

Audit and controlAudit and control

Budget preparationBudget preparationPolicy development and analysis

Policy development and analysis

Web-portal publicationsWeb-portal publications

FTASFTAS

Public investmentsPublic investments Budget Execution[Treasury system FTAS]

Completion of FTAS Implementation – start for new projectsCompletion of FTAS Implementation – start for new projects

2929

Procurement planningProcurement planning Placement ordersPlacement orders Contract recordingContract recordingContract execution

ControlContract execution

Control

Budget preparationBudget preparation

Services cost planningServices cost planning

Maintenance costs calculation

Maintenance costs calculation

Development of programs/ subprograms

Development of programs/ subprograms

Debt and financial assets managementDebt and financial assets management

Control and auditControl and audit

Efficiency monitoringEfficiency monitoring

Cash planningCash planning

Cash placementCash placement

Completion of FTAS implementation– start for new projects

Accounting and reportingAccounting and reporting

Procurement managementProcurement managementBudget planningBudget planning

Cash expenditures execution and accounting

Cash expenditures execution and accounting

Delivery of budget data and tasks

Delivery of budget data and tasks

Expenditures managementExpenditures management

Accounting of revenues from non-financial assets

Accounting of revenues from non-financial assets

Efficiency monitoringEfficiency monitoring

Cash management

Cash management

Management accountingManagement accounting

AccountingAccounting

Management of non-financial assets

Management of non-financial assets

Revenue managementRevenue management

HR managementHR managementSubsidy agreement registrationSubsidy agreement registration

3030

General scheme of official site functioning in the Internet for placement of the information about state and municipal institutions

Federal Treasury

FT bodies

FT bodies

FT bodies

Official site for placing information about state (municipal) institutions (official site)

Closed loop Open loop

Reference materialsReference materials

Information placementInformation placement

Entry into Personal OfficeEntry into Personal Office

Search and reflection of information Search and reflection of information

Analytical informationAnalytical information

2

DS certificates

Reference materials,, classifiers

Information placement

Authorized representatives of the institutions

Internet users

Information on the institutionsIn conformity with Registration Procedure Information about

institutions

31

3131

Portal solutions for “Electronic budget” implementation

Unified portal of the RF budget system

Regulatory, statistical and analytical information on public finance management

Users access to functional sub-systems through “Personal Offices” system in conformity with their authorites

Open loop of the portal Closed art of the portal

Official site with information about institutionsClosed loopOpen loop

User accesses au

then

tication

an

d au

tho

rization

services

Official site on public procurementsClosed loopOpen loop

Key performance indicators information systemAnalytical loop of KPIKPI window

FTAS Portal (online SUFD)Closed loopOpen loop

WEB-services of EB upon their implementation

3232

Thank you for attention!

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