The management information framework, MIF, project is an integral part of the Government's strategic management initiative. The Mullarkey group recognised that the MIF is a complex project that will take a number of years to implement fully.
In March 2004, following a year of preparations, my Department introduced the first module of its new financial management system and, since then, the remaining modules of the system have gone live. This new system has been designed specifically to meet the requirements of the MIF, including the capacity to produce cash and accrual accounts. My immediate priority was to ensure that the transition from the old financial system to the new state of the art model could be achieved without interrupting the essential financial services and operations of my Department, its agencies and its offices. I was pleased that the preparations for the changeover had been thoroughly made and that this objective was realised. Over the coming months, there will be a period of bedding down for the new system and the staff operating it before we can begin to exploit its benefits for management.
When fully operational, the system will provide enhanced financial information on a regular and timely basis to all levels of management. Management accounts will become a regular feature of the Department's ongoing operations. Maintaining accounts on an accruals basis will improve control by providing regular information to managers of actual expenditure against budget and details of commitments entered into in advance of payment being made.
The Government's implementation timetable for MIF extends to the end of 2006. During the intervening period, my Department will introduce modern business tools that will approximate those in use in the private sector. The new financial system will facilitate the allocation of costs to programmes and provide data on financial and non-financial performance indicators. The MIF will help to provide a basis for value for money assessments of the Department's programmes. It will support the preparation of strategy statements as well as the regular monitoring of progress. Improved financial information will also improve the linkage between financial analysis and decision making. The new system will also support improved asset management by recognising, through appropriate depreciation policies, the ongoing and future cost of using capital assets.
To ensure the effectiveness of the MIF, it will be necessary to embark on a major training programme for staff of my Department to equip them to exploit the framework fully and to achieve the twin objectives of improving business planning and the efficient use of resources. Proposals are being considered at present by my officials in this regard.