News Article

World Bank funds Government of Malawi to implement CODA financial management system

 

28 April 2003

  • Part of the World Bank’s $24 million project to improve accountability and transparency in Malawi
  • CODA system will control expenditure of Government’s $55.5 million budget, including Ministry of Health’s drugs initiative to fight HIV/AIDS
The World Bank, one of the world's largest sources of development assistance, is funding the Government of Malawi's implementation of an Integrated Financial Management and Information System (IFMIS) from financial software specialist, CODA Group. The CODA system will provide commitment accounting and allow all financial management functions to be carried out electronically, providing a transparent budgeting process across the Government’s operations. This will improve control of expenditure at the Government’s 40 departments and help to improve delivery of education, agriculture and health services, including the Ministry of Health's initiatives to fight HIV/AIDS in Malawi.

The implementation forms part of the World Bank’s $24 million Financial Management, Transparency and Accountability Project (FIMTAP) which aims to improve the use of public expenditure in Malawi to help reduce poverty. The Government of Malawi has an annual budget of 55 billion Malawian Kwachas, (approximately $55.5 million) and CODA’s IFMIS will help ensure that this is efficiently managed across all public departments. The system will automatically link planned budget and actual cash budget demands, allowing managers to better schedule expenditures to minimize cashflow problems and improve public service delivery. It will also increase accountability for managers and improve transparency to reduce corruption.

Rob Floyd is public sector management specialist at the World Bank: 'Malawi remains very poor, with significant development challenges exacerbated by high incidences of HIV/AIDS, recent severe drought and food shortages. World Bank financing will help the Government in its efforts to improve public expenditure management in order to ensure that money is used appropriately and efficiently and is delivered where it is needed most - working towards alleviating poverty and related social issues. Good financial management and transparency of information within Government is at the heart of this and that is why we are funding the implementation of new financial management systems.

'CODA-Financials is seen by IT professionals as a highly adaptable, functionally rich application that is relatively easy to implement – important in a potentially challenging environment. Over the past six to eight months, the establishment of CODA as Malawi’s IFMIS software has moved ahead with considerable success. The CODA system provides the Government with a solid technical framework to address its financial accounting and transparency issues, and eliminate corruption. The day-to-day technical support that the Government has been receiving from CODA’s reseller Unipro Enterprise Systems (UES), has been key to confirming full functionality in the pilot phase,' Rob Floyd added.

Patrick Chilambe, secretary to the treasury at the Government of Malawi, commented: 'In Malawi, budgetary resources are spread thinly, with continuing pressures to over-spend, and there is often large variation between planned and actual expenditure. We used to carry out manual budgeting which meant that it was difficult to monitor budgets and money was being lost through inefficiency and fraud. The CODA software allows budget formulation, execution and reporting to be linked in one system, which will provide us with the levels of automation, transparency and accountability we need to revolutionize our budgeting process. Better budget allocation will provide better public service delivery, including for key education, health and agricultural initiatives.'

The Government of Malawi selected CODA ahead of SAP. The system will be implemented by CODA’s South Africa-based reseller UES. The company, which has an office in Malawi, will implement and integrate its own HR and payroll solutions with the CODA system, as well as providing full after-sales support and training to Government staff to ensure the software is used optimally.

How IFMIS will work
The CODA Integrated Financial Management and Information System (IFMIS) is based on CODA-Financials and CODA-Procurement. It will allow all financial management functions to be carried out electronically, significantly improving the availability of data and reducing the opportunities for corruption and maladministration.

The Government of Malawi will be electronically linked with an integrated financial management system that provides timely and high-quality data, while also offering enhanced internal controls to improve expenditure management. The Government Wide Area Network (GWAN) will eventually span the country and provide a backbone infrastructure for IFMIS as well as Unipro's HR and payroll systems, and the Government intranet and email systems.

About the World Bank
The World Bank Group is one of the world's largest sources of development assistance. In fiscal year 2002, the institution provided more than $19.5 billion in loans to its client countries. It works in more than 100 developing economies with the primary focus of helping the poorest people and the poorest countries. More information can be found at the World Bank’s Web site: http://www.worldbank.org

About the Government of Malawi
The headquarters of the administration of the Malawi Government is situated on Capital Hill in the capital city, Lilongwe. More information can be found at the Government’s homepage: http://www.malawi.gov.mw

About UES
UES (Unipro Enterprise Systems) is an international reseller of application solution products and in addition to its own HR and payroll product, Peodesy, distributes CODA Financial products and VCS Timeless retail solutions. In Africa UES has three subsidiaries in South Africa, Malawi and Mozambique and sub distributors in most other African countries

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