By Jackline Nabirye,
Communications Officer
Institute of Certified Public Accountants of Uganda (ICPAU)
In a bid to fortify Uganda's Public Finance Management (PFM) landscape, experts are advocating for the widespread implementation of Integrated Financial Management Information Systems (IFMIS). This call to action was articulated by CPA Aiden David Rujumba, the Commissioner for Finance Management Systems at the Ministry of Finance, Planning & Economic Development, during his presentation at the 2nd PFM conference.
IFMIS, as described by Rujumba, are comprehensive systems designed to bolster the management of public sector budgetary, financial, and accounting operations. They serve as a centralized hub for tracking public sector revenues and expenditures. By integrating budgetary, accounting, treasury, and public debt management processes.
“IFMIS not only streamline financial operations but also facilitate adherence to International Public Sector Accounting Standards” CPA Aiden David Rujumba highligted.
Rujumba highlighted Uganda's historical challenges in PFM, particularly noting the turbulent period preceding 1986 which severely impaired the country's accountability infrastructure. However, strides have been made since 2015, with the introduction of Heads of Accounts and the activation of the Fixed Asset Management module to enhance accountability and automate asset management processes.
The implementation of IFMIS facilitates real-time access to crucial financial data including revenues, expenditures, assets, and liabilities through dashboards, reports, and online inquiries. This empowers decision-makers to make informed choices, thereby enhancing service delivery. Additionally, IFMIS enables robust tracking of public funds by government officials and oversight bodies, thereby strengthening monitoring and evaluation of government programs/projects.
Key features of IFMIS highlighted by Rujumba include promoting segregation of duties, improving transaction approval hierarchies, automated alerts for critical data changes, inbuilt validation rules to prevent errors, and stringent user authentication measures. Furthermore, the incorporation of Artificial Intelligence (AI) tools and analytics aids in error detection and generates accountability reports.
Despite the evident benefits, Rujumba acknowledged the challenges encountered during IFMIS implementation. These include the need for sustained political and technical leadership support, significant financial investments, innovative change management strategies, and user-driven automation of PFM business processes.
Emphasizing the importance of structured project management, Rujumba stressed the necessity of a dedicated approach involving steering committees, project management teams, and ongoing staff training. He also underscored the need for continuous investments in system upgrades, reliable telecommunications connectivity, and stable power supply.
In conclusion, Rujumba highlighted IFMIS's pivotal role in enhancing Uganda's PFM system, fostering fiscal discipline, prioritizing resource allocation, improving public service delivery, and promoting transparency and accountability. While acknowledging the inherent complexities and challenges, he urged stakeholders to continue supporting IFMIS to consolidate and sustain its benefits.
“Investing in IFMIS is not merely about expenditure but rather about long-term savings and transparency across all entities involved in public finance management” he concluded.
Introduced in 2023 by the Institute of Certified Public Accountants of Uganda (ICPAU), the Public Finance Management (PFM) Conference brings together public sector players to share and tackle any challenges affecting optimal utilisation of public resources through innovative approaches and public financial management reforms. The goal is for accountants to leverage their financial management acumen to influence national policy formulation regarding PFM.
It attracts public sector players including accounting officers, accounting and finance professionals, auditors, policymakers, planners, economists, development partners, civil society actors, parliamentarians, and PFM consultants.
