Financial Management Information System Research Articles

The Good, the Bad, and the Missing of the “Diffusion of Innovations” Theory

A single-case study examined the complex issues in the deployment of new financial management information systems by a large public-sector university. Reflecting certain strengths (the good), weaknesses (the bad), and gaps (the missing) of the Diffusion of Innovations theory, this essay clarifies the theory in the context of Innovation and Change. The simple chain of reasoning gives structure to the data and slightly elevates the evidence gathered into episteme. The discussion presents the concepts, applies theory to context, and articulates the concept that cannot hold. Yet the DOI theory interpreted in the context is still at risk, unless the big picture of change is clear. Accordingly, the reflection suggests prospective research strategies for further development of the domain.

Financial Management Information System

The Management Information System is a concept of the last decade or two. The role of MIS in an organization can be compared to the role of heart in the body. Most of the organizations be it small or large are using computer based information system with centralized, decentralized or distributed networks connecting data flow from and to the various departments/ branches. Hence the MIS is defined as a system based on the database of the organization evolved for the purpose of providing information to the people in the organization. The development of MIS in finance can improve the system’s functions, performance and productivity. This paper includes a study of designing the Financial Management Information System (FMIS) and to show how FMIS benefits the organization by aiding the managers to achieve their goals. It facilitates them to see if the performance is on the right track, based on the existing financial database. The read-only reports are presented to the executives in Excel by pulling in the data from the Tally database using the Microsoft Office tool. The automation of watch register is an application that keeps a watch on all the receipts and payment bills and check with the budgets allotted. The user- interface developed using Visual Basic is to enter, view and delete the data. The data is stored in Oracle9i database. In this endeavor, atomizing different registers and reducing the manual work of calculations aid finance system. Thus MIS designed throws light on the importance of easy access to useful information to the executives in improvising the system performance.

ICT risk for government financial management information system

The paper deals with the development of risk management plans for the Information Technology Center of Department of Comptroller General under Ministry of Finance in Thailand. There were a total of 14 risk factors that would potentially impact the operations of the Government Financial Management Information System. The dependency on contractors, and public protests and riots were perceived to be a high risk contributor. Afterwards, the plans to help minimise or transfer risk were developed such as benchmarking, backup site, remote control centre and contractor audits. Furthermore, the discussions with the members from other public agencies and private firms were made. The international comparisons were also conducted. Finally, the implications were discussed.

Conceptual Design: A Critical Element of a Successful Government Financial Management Information System Project

This technical note describes need of conceptual design as a critical element of a government financial management information system project. Governments are increasingly turning to computerized financial management systems to help them respond to the demand for better information. This note describes the conceptual design for government financial management information systems (GFMIS), and explains why is it critical to the success of a GFMIS project. Key factors that influence the preparation of the conceptual design are discussed. The main stakeholders in the preparation of the conceptual design are also elaborated.

Effect of individual components on system's reliability

PurposeThe purpose of this study is to examine the effect of individual components' reliability on a system's reliability. The system refers to the Financial Management Information System (FMIS), the US Federal Highway Administration's (FHWA) web‐based project approval and tracking software. Its components are 61 project information fields.Design/methodology/approachThe analysis would view each highway project‐funding request as an activity with cycle‐dependent performance for which success probability can be calculated as Reliability, R. The reliability analysis of the 61 FMIS fields results in a series system with Rsys the “estimated reliability” of finding “true” values in all 61 information fields during one highway‐related project funding authorization review.FindingsOf an estimated 200 projects approved, there was previously estimated a 50 percent to 80 percent unreliability rate, while the study found an unreliability rate of approximately 80 percent.Research limitations/implicationsOwing to the nature of federal government software, data can be very difficult to acquire in this working environment, but a simple calculation was relatively successful in confirming the “estimated reliability” of finding “true” values and showing how the reliability could dramatically decrease.Originality/valueThe paper contributes to the applicability of reliability analysis to project approval software, showing the progression from estimated data to bounding the estimate using reliability theory.

World Bank Support for Public Financial Management: Conceptual Roots and Evidence of Impact

The advice provided by the Bank on improving public financial management (PFM) is influenced by debates on theory and practice in developed and developing countries. This paper touches on some of the highlights of these debates, drawing from indicative literature mainly since 1990 from scholars and practitioners. The second part of the paper discusses examples of Bank support for reform of budget planning and execution, in particular financial management information systems (FMIS), medium-term expenditure frameworks (MTEF), procurement, auditing, monitoring and evaluation, and the strengthening of key budgetary accountability institutions, like public accounts committees of the legislature and supreme audit institutions.

ASSESSING IT AS A KEY SUCCESS FACTOR FOR ACCRUAL ACCOUNTING IMPLEMENTATION IN GREEK MUNICIPALITIES

Inadequacy of Information Technology (IT) enabled solutions has constrained the implementation of accrual accounting in Greek municipalities as part of a New Public Management (NPM) initiative. In this paper we analyse the main reasons behind the failure of IT to support the accounting reform and describe how the problems of software solutions were overcome with the assistance of an IS/IT assessment model, based on the general systems theory principles. We present an IS/IT evaluation approach, which adopts a systems perspective in order to provide evaluation criteria for both functional and behavioural aspects of the IT solutions adopted to support the new accounting practices. The described approach provides empirical evidence related to the effectiveness of systems oriented thinking in devising evaluation frameworks for assessing IS/IT solutions employed to support contemporary accounting practices in Public Sector organizations. The reported work contributes to the literature (i) an IT assessment case study in Greek public sector, (ii) a novel evaluation framework suitable for both functional and behavioural aspects of financial management information systems and finally (iii) comprehensive experience from its application in Greek municipalities.

Introducing Financial Management Information Systems in Developing Countries

In the past decade, developing countries have been encouraged to reform their public expenditure management systems and have increasingly embarked on major projects to computerise their government operations. Most popular among these have been projects to computerise government accounting and payment operations, by introducing government financial management information systems (FMISs).

Mandates and technology acceptance: A tale of two enterprise technologies

Enterprise information systems are usually mandatory. However, surprisingly little research has been directed to the nature and operation of mandates in research on enterprise systems and on information technology implementation. This study takes a closer look at mandates and their role in the implementation and acceptance of enterprise technologies. Our analysis focuses on the implementation of two enterprise level systems in a major state-funded university system in the US: (1) a state-wide financial management information system that is mandated for use by a large university system; and (2) a system-wide financial and administrative information system that is designed at the university system level and mandated for the individual units of the university system. The analysis offers a deeper look at mandates and is intended to surface features not evident when mandates are regarded simply as another type of directive or order from top management. It also illuminates the politics of enterprise system implementation from the perspective of the negotiation of meaning and responsibilities.

Critical success factors for modernising public financial management information systems in Bosnia and Herzegovina

AbstractThis article identifies a number of critical factors that have contributed to the successful implementation of a public financial management information system in the Republic of Bosnia and Herzegovina (BiH). The information system, funded by USAID and implemented by Emerging Markets Group from 1999 to 2004, has revolutionised accounting practices and has contributed to a more transparent and effective public sector. This article describes the project's context and purpose, its main features, challenges and obstacles. It continues by outlining the critical success factors that have contributed to the success of the project in a challenging environment. The project was implemented in a rather unique environment since it was initiated not long after the end of the civil war and the creation of the Republic of BiH. The Republic of BiH inherited the former socialist Yugoslavian payment systems. There were no adequate public financial management systems in place, and the project team could essentially start from scratch. The project team designed and implemented an accrual accounting system, and unlike the situation in many countries, relieved the government from having to transform their financial management system from cash‐based accounting to accrual accounting. Copyright © 2005 John Wiley & Sons, Ltd.

Introducing Financial Management Information Systems in Developing Countries

In the past decade, developing countries (DCs) have been encouraged to reform their public expenditure management systems and have increasingly embarked on major projects to computerize their government operations. Most popular among these have been projects to computerize government accounting and payment operations, by introducing government financial management information systems (FMISs). This paper investigates the reason for almost universal failure to implement and sustain FMISs in DCs. It starts with a review of the received wisdom in implementing these projects, and then analyzes problems in its application in the DC context to identify key factors to explain why FMIS projects have been so problematic. Based on the identified negative factors, suggestions for addressing them are offered in the hope of improving success rates.

Introducing Financial Management Information Systems in Developing Countries

In the past decade, developing countries (DCs) have been encouraged to reform their public expenditure management systems and have increasingly embarked on major projects to computerize their government operations. Most popular among these have been projects to computerize government accounting and payment operations, by introducing government financial management information systems (FMISs). This paper investigates the reason for almost universal failure to implement and sustain FMISs in DCs. It starts with a review of the received wisdom in implementing these projects, and then analyzes problems in its application in the DC context to identify key factors to explain why FMIS projects have been so problematic. Based on the identified negative factors, suggestions for addressing them are offered in the hope of improving success rates.

Can E-Banking Services be Profitable?

Over the last few years European banks have spent billions of euros on new electronic channels. However, after some years of excitement it was clear that the banks' long-awaited sky-rocketing profits from this area would not be netted. Estonian banks have also invested in expanding and improving the IT systems and a number of new e-banking services have been developed. Until recently, most of the pricing decisions for e-bank services were made on the basis of a gut feeling as the current financial management information systems did not support such analysis. In this article the author explores the implementation techniques of Activity-Based Costing (ABC) in the banking sector on the example of an Estonian bank in order to analyze the cost structure for traditional and electronic channel transactions. The article shows how it is possible to implement ABC in banking and proves empirically that electronic channels help reduce the costs of both banks and their clients.

The Strategy of Budget System Reform in Emerging Countries

This paper examines the process of budget system reform implied by moving from traditional centralized input-oriented systems to more modern devolved performance-based systems. Based on the experience of recent attempts at this reform in emerging countries, the required sequencing of steps in this process is stressed. the strategy outlined involves a three-prong approach, requiring measures to increase the flexibility in the agency operating environment, provide more certain resourcing for spending agencies, and exert pressure on agencies to improve their performance. the paper stresses firstly, the need to progress on all three fronts simultaneously, and secondly, to base these reforms on a firm platform of agency management skills. the need to attain some basic public expenditure management thresholds in the area of restructuring the budget and its classification, improving the accounting system, developing a financial management information system, and strengthening internal financial management skills, is highlighted.

Treasury Reform in Kazakhstan: Lessons for Other Countries

Kazakhstan’s government has established a comprehensive and efficient treasury system for government revenues and expenditures, and introduced a state-of-the-art government financial management information system. Kazakhstan is among the leading BRO (Baltics, Russia, and other Former Soviet Union) countries in modernizing its budget execution system despite remaining challenges in other areas of fiscal management. The successful outcomes are related partly to the high quality of the reform process, and partly to the institutional design of the Kazakh treasury. Some design features are common for most well-functioning treasuries. Other features are related to the specific economic factors, institutional features, and financial management objectives of a transition economy, with a strong emphasis on fiscal control and financial discipline.

Improvements in billing processes and information systems increase cash collections in a public health care system.

Management information systems are an essential tool for health care managers. Denver Health, an integrated safety net institution, upgraded its financial management information system during 1997 and experienced almost an 18 percent or $23 million increase in cash collections from 1997 to 1998 and a 17 percent or over $25 million increase from 1998 to 1999. Cash collections continued to increase in 2000 with a $12.0 million (6.8%) ncrease over 1999. This article explains the information system factors that have contributed to this increase and describes the continued management efforts that are expected to continue to improve cash collections.

The construction of a public key infrastructure for healthcare information networks in Japan.

The digital signature is a key technology in the forthcoming Internet society for electronic healthcare as well as for electronic commerce. Efficient exchanges of authorized information with a digital signature in healthcare information networks require a construction of a public key infrastructure (PKI). In order to introduce a PKI to healthcare information networks in Japan, we proposed a development of a user authentication system based on a PKI for user management, user authentication and privilege management of healthcare information systems. In this paper, we describe the design of the user authentication system and its implementation. The user authentication system provides a certification authority service and a privilege management service while it is comprised of a user authentication client and user authentication serves. It is designed on a basis of an X.509 PKI and is implemented with using OpenSSL and OpenLDAP. It was incorporated into the financial information management system for the national university hospitals and has been successfully working for about one year. The hospitals plan to use it as a user authentication method for their whole healthcare information systems. One implementation of the system is free to the national university hospitals with permission of the Japanese Ministry of Education, Culture, Sports, Science and Technology. Another implementation is open to the other healthcare institutes by support of the Medical Information System Development Center (MEDIS-DC). We are moving forward to a nation-wide construction of a PKI for healthcare information networks based on it.

Reflecting on attempts to develop a financial management information system for the probation service in England and Wales: Some observations on the relationship between the claims of accounting and its practice

The practice of implementing the British Financial Management Initiative (FMI) in public sector organizations has been subjected to little detailed processual analysis. This paper seeks to provide such an analysis by examining the FMI's application in the Probation Service in England and Wales, with particular attention being given to the attempt by private sector management consultants to design a Financial Management Information System (FMIS) for the Service. In so doing, the paper can be seen as a response to calls for studies of public sector accounting in action. The case study presented highlights the contrast between the general potential and the practical achievements of such a central government initiative, whilst at the same time serving to explore, and to develop understanding of, the forces and mechanisms giving motion to accounting-based initiatives in the U.K. public sector.

Calling on the Experts: The Financial Management Initiative (FMI), Private Sector Management Consultants and the Probation Service

Abstract: This paper examines the Home Office's attempts to apply the Financial Management Initiative to the probation service in England and Wales, with particular emphasis being given to the use of private sector management consultants in the development of a Financial Management Information System (FMIS) for the Service. The details of the FMI's application are set out and the processes whereby the aims of the initiative were attenuated and deflected are identified. In consequence, the case adds support to the literature questioning the application of such initiatives in the public sector by illustrating how even the ‘experts’ cannot provide simple solutions for the complex problems facing public sector managers.

Financial Management Practices in National Libraries

The Conference of Directors of National Libraries undertook during 1989 a survey of financial management practices within national libraries. The aim was to identify and document current trends and practice in: national library funding; financial management information systems; costing and pricing; cost recovery and performance measurement, in order to provide assistance to colleagues attempting to resolve financial management issues. The major source of national library resourcing remains central governments and the general picture of funding is sombre. A majority of respondents reported charging for services both to individual users and to other libraries, although the detailed findings revealed in some national libraries a financial management infrastructure that was less developed in commercial terms than this would suggest.