John Bruton
Question:69 Mr. J. Bruton asked the Taoiseach if a management information framework as recommended by the Mullarkey committee has been put in place in his Department; and if he will explain the way it works. [15130/04]
View answerTuesday, 25 May 2004
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Written answers
The objective of the management information framework, MIF, is to provide Departments with a flexible system of financial management, integrated with performance and output measurement so as to enhance efficiency, performance and accountability. MIF ensures more efficient processing of financial transactions and accounts, thereby providing better financial information. This in turn ensures better decision-making about the allocation of resources, more efficient and effective management of resources once allocated, and greater transparency in, and accountability for, the use of resources.
The Mullarkey report recommends that Secretaries General give priority to the implementation of the management information framework, MIF, in their Departments so as to improve the link between financial analysis and decision-making and so enhance the Department's ability to discharge both financial and other management responsibilities.
Work on implementation of MIF is well advanced in my Department. In accordance with the project plan for implementation of MIF, the first phase was completed in March 2001 with the finalisation of a consultancy report by Deloitte and Touche, which examined existing financial management systems and recommended a strategy for modernisation.
The second phase of the project involved the specification and selection of integrated financial systems to support financial management and control in the Department. The new financial system selected has been in operation in the Department since July 2002, making my Department one of the first three Departments to implement a new financial system under MIF. This system provides cash and accruals accounting, integrated purchase to pay modules, fixed asset accounting, management reporting, streamlined processes and work flow to increase efficiency and enhance control procedures.
Following a period to bed down the new system and associated new procedures and processes in the Department, work on the final phase is currently progressing in accordance with the MIF project plan. This involves the implementation of performance management and cost allocation systems, ongoing enhancement of management reporting and control systems and development of accruals based reports.
A performance indicator group, comprising heads of divisions, has been set up in the Department and is actively working to enhance existing performance indicators and to develop a framework of performance indicators which will enhance decision-making and provide information on the achievement of strategic objectives. This framework will be supported by the financial management system and will be closely integrated with departmental business planning activities.
The financial management system has cash and accruals capability and all financial transactions are captured on both a cash and accruals basis. Further work on accrual accounting will be advanced in accordance with the MIF project plan after the outcome of the accrual accounting pilots, which are being undertaken in a selected number of Departments.