Vietnam). Secondly, in some cases line ministries have resisted such an approach, fearing that the central treasury would delay payment requests. Strategies to get around these issues are developing standards (e.g., monitoring processing times) or setting a web portal to provide basic access to the central treasury system, as was done in Indonesia, Russia, and Vietnam.

# **_Finding 12: Reliable transactions processing is fundamental to the integrity of a system. It provides the data used for financial operations and management reporting. It should thus be prioritized in the implementation process._**

3.47 **FMIS implementation can be viewed as a layered approach to process basic transaction data.** A financial operations layer is next for producing budget execution reports, determining the government bank accounts’ cash position and the ways and means position, and producing monthly financial statements. The top layer is the management and statutory reporting layer, which produces overall financial reports, audited financial statements, and statutory financial reports (figure 4).

**Figure 4. Budget execution and treasury systems: a layered implementation approach**

<!-- Start of picture text --> Overall Fiscal Reports & Audited<br>Statutory Financial Statements<br><!-- End of picture text --> <!-- Start of picture text --> Economic Management /<br>Statutory Reporting/<br>Auditing<br><!-- End of picture text --> <!-- Start of picture text --> Management/ Statutory Reporting<br>Layer<br><!-- End of picture text --> <!-- Start of picture text --> Budget Execution Reports<br>Cash Position, Ways and Means Position<br>Monthly Financial Statements<br><!-- End of picture text --> <!-- Start of picture text --> Budgetary Control<br>Accounting, Cash<br>Management<br><!-- End of picture text --> <!-- Start of picture text --> Financial Operations<br>Layer<br><!-- End of picture text --> <!-- Start of picture text --> Budget Commitment<br>Systems Modules Management Management<br>Transaction Budget Apportionments<br>Allotments, Releases<br>Data<br>Transfers, Supplementary<br>Budgets<br><!-- End of picture text --> <!-- Start of picture text --> Payments Receipts General<br>Management Management Ledger<br><!-- End of picture text --> <!-- Start of picture text --> Bank<br>Reconciliation<br><!-- End of picture text --> <!-- Start of picture text --> Bank Transaction<br>Reconciliation Processing Layer<br>Tax and non tax Receipts,<br>Bank balances<br><!-- End of picture text --> <!-- Start of picture text --> Transaction<br>Processing Layer<br><!-- End of picture text --> <!-- Start of picture text --> Commitments,<br>Purchase Orders<br>Contracts<br><!-- End of picture text --> <!-- Start of picture text --> Vendor Invoices, Goods Receipts,<br>Payment requests<br>Debt servicing payments<br>Payroll, Pension payments, Subsidies,<br>Fiscal transfers<br><!-- End of picture text --> <!-- Start of picture text --> Systems Users / Data Providers<br><!-- End of picture text --> <!-- Start of picture text --> Treasury<br><!-- End of picture text --> <!-- Start of picture text --> Line Ministries<br>&<br>Spending Units<br><!-- End of picture text --> <!-- Start of picture text --> Debt<br>Management<br>Department<br><!-- End of picture text --> <!-- Start of picture text --> Revenue<br>Agencies<br><!-- End of picture text --> <!-- Start of picture text --> External and<br>Internal Auditors<br><!-- End of picture text --> <!-- Start of picture text --> TSA Bank<br><!-- End of picture text --> <!-- Start of picture text --> Ministry of<br>Finance<br>Budget<br>Department<br><!-- End of picture text --> _Source:_ Reprinted with permission from Hashim 2014. _Note_ : TSA = treasury single account .

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