PFM Systems and Processes

Component 12: PFM Systems and Processes

Objective: Lay the foundation for the modernization and automation of GoSL PFM functions

This component seeks to make immediate changes to PFM systems, which will support future comprehensive PFM automation through development of standalone PFM systems in support of accounting, revenue collection and management, budget planning and the CBSL banking and payment functions.

The proposed interim systems will promote the development of:

    • A basic standalone and decentralized accounting systems that supports a general ledger, cash and vote book functions
    • A revenue collection/billing/management system in support of central government revenue collection and reporting activities
    • A simple budgeting system that would support the budget planning process by guiding LM in the resource allocation process; and
    • A banking and payment system that will improve the management of in-flows and out-flows of cash within the CBSL and improve the overall quality and timeliness of GoSL cash information.

The Somaliland Financial Management Information System (SLFMIS)

The overall objective of Somaliland Financial Management Information System (SLFMIS) is to provide a system with adequate audit trails to improve administrative accountability in processing transactions. Improved timeliness and accuracy of financial information will also improve timeliness and comprehensiveness of financial reports for decision making.

The initial assessment of SLFMIS was driven by the PFM Reform Strategy in order to ensure alignment with the PFM goals and objectives and to highly consider the current challenges and gaps al listed in the strategy document. As a result, the following mapping was defined between the PFM Strategic Pillars and the main components of SLFMIS:

The Government of Somaliland acknowledges the importance of the financial management information systems (SLFMIS) to support the improvement, transparency and efficiency of PFM processes, and therefore requested support from the World Bank and DFID. In response, the World Bank and DFID initiated the SLFMIS project in March 2013, and as the initial phase, consultancy services were commissioned for the analysis, design, development and implementation of bespoke ‘fit-for-purpose’ SLFMIS, including training and support of the system.