Executive Summary
Summary of objective and scope
The Financial Management Improvement Programme (FMIP) was developed as a series
of integrated reform activities across all levels of government in PNG. The overall goals of the
reform programme were aimed at addressing a range of identified financial management
problems.
The strategic framework for the FMIP developed in 1999/2000 identified the various
reform strategies necessary to achieve the goals of the FMIP. The framework proposed
improved and enhanced information and communication systems as major IT reforms as part of
the improvement program. These included upgraded planning-budget and government
accounting systems, and new cash management, monitoring and reporting, and executive
information systems. Core to the realisation of the IT strategies was the establishment of a
reliable data communication network across PNG.
The Integrated Financial Management System (IFMS) Project was initiated by the PNG
Government to replace the incumbent financial and accounting system, PGAS, with a ‘modern’
system from the vendor TechnologyOne. This system, rebadged as IFMS, was planned to
entirely replace PGAS in all departments and provinces.
There is considerable interest in the IFMS Project (the “project”) within and outside
Government. The Parliamentary Public Accounts Committee (PAC) has particular interest in the
project and is keen to understand the current status of the project. They are also interested when
the project will be completed and the system fully rolled out across Government since the project
has been underway for 10+ years and continues to consume significant annual funding.
The objective of this audit review was to consider the key project risks relating to the
IFMS project and give broad focus to the processes and controls that management has in place
in the following areas:
- Project governance;
- Project management disciplines;
- Project finances and resourcing; and
- Rollout execution and planning
Approach to the audit
The audit review was performed taking a forward looking stance, focusing on findings
that would prove constructive to the project’s future, rather than dwell on historical issues. This
approach was in part necessary due to the limited availability of documentation relating to the
early stages of the project.
In performing the fieldwork, Project and departmental representatives were interviewed
to gain an understanding of the current status of the IFMS Project, planned activities and the
Project Controls in place.
Documentation was inspected, including (but not limited to) the following types of project
artefacts:
- Governance documentation;
- Highlight reports;
- Steering committee / board papers;
- Planning documentation;
- Deliverables and other output artefacts; and
- Project budget proposals and finance reports.