Skip to main content

Integrated Financial Management Information Systems

Integrated Financial Management Information Systems

Integrated financial management information systems (IFMIS) are computer-based systems that automate and store key financial information in large organizations like governments, multinational corporations and large nonprofit institutions. The goal of these systems is to increase access to information while decreasing long-term costs.The initial investment of time and money to implement IFMIS is high, but the improved financial transparency and information access usually offsets its initial expense.

    Features

  1. The primary features that distinguish an integrated financial management information system from other computer systems are the reduction in duplicate data entry; implementation of internal controls for transactions, reporting and information entry; and the standardization of data classifications for financial events. IFMIS can integrate accounting-related information, or larger organizational data management systems.

    2. Functions

  2. IFMIS systems function as a repository for the data and processes that surround the reporting and assurance of financial responsibility. They provide financial reports and information to management; help determine budgetary decisions; increase financial responsibility; and provide internal and external reports for auditors, investors, agencies and government organizations.

    3. Implementation

  3. Implementing an IFMIS requires mapping and defining all financial processes, documenting requirements, and outlining needed software and technology. Some commercially developed software, like PeopleSoft or SAP, can be modified for this purpose, or a system can be customized internally, depending on the organization's requirements. After a system is developed, it must be thoroughly tested and routinely evaluated to ensure financial and functional validity.

    4. Technical Efficiency

  4. Integrated financial management information systems are technically efficient. Financial data is input once, and can then be used many times for different purposes and functions. Additionally, these systems create a shared programming environment, where code can be reused and repurposed, saving time when new functions are needed. For end users, IFMIS can provide consistent presentation that reduces training requirements and potential confusion.

    5. Security

  5. IFMIS systems create one storage location for financial data and a single authentication point that allows information to be controlled and monitored. These systems also allow a central authority to regulate security access that increases overall data integrity and security. With all information in a single location, financial fraud is harder to perpetrate and easier to catch.

    6. Maintenance

  6. While a well-designed integrated financial management information system will provide for all current data and process needs of a government, organization or business, inevitable changes will require ongoing maintenance to ensure the integrity and functional use of the system. Support needs depend the type and size of the system implemented and the speed of changes.

Labels:

Comments

Post a Comment

Popular posts from this blog

Advantages and Disadvantages of EIS Advantages of EIS Easy for upper-level executives to use, extensive computer experience is not required in operations Provides timely delivery of company summary information Information that is provided is better understood Filters data for management Improves to tracking information Offers efficiency to decision makers Disadvantages of EIS System dependent Limited functionality, by design Information overload for some managers Benefits hard to quantify High implementation costs System may become slow, large, and hard to manage Need good internal processes for data management May lead to less reliable and less secure data
1 comment
Read more

Inter-Organizational Value Chain

The value chain of   a company is part of over all value chain. The over all competitive advantage of an organization is not just dependent on the quality and efficiency of the company and quality of products but also upon the that of its suppliers and wholesalers and retailers it may use. The analysis of overall supply chain is called the value system. Different parts of the value chain 1.  Supplier     2.  Firm       3.   Channel 4 .   Buyer
Post a Comment
Read more

Big-M Method and Two-Phase Method

Big-M Method The Big-M method of handling instances with artificial  variables is the “commonsense approach”. Essentially, the notion is to make the artificial variables, through their coefficients in the objective function, so costly or unprofitable that any feasible solution to the real problem would be preferred, unless the original instance possessed no feasible solutions at all. But this means that we need to assign, in the objective function, coefficients to the artificial variables that are either very small (maximization problem) or very large (minimization problem); whatever this value,let us call it Big M . In fact, this notion is an old trick in optimization in general; we  simply associate a penalty value with variables that we do not want to be part of an ultimate solution(unless such an outcome is unavoidable). Indeed, the penalty is so costly that unless any of the  respective variables' inclusion is warranted algorithmically, such variables will never be p
Post a Comment
Read more