A recommendation of a cloud-based solution for the implementation of the long-overdue Integrated Financial Management System (IFMS) project is on the table.
This came to light during a joint presentation by National Treasury, the State IT Agency (SITA) and the Department of Public Service and Administration (DPSA) before Parliament's Standing Committee on Finance (SCOF) last week.
Their presentation followed an oversight visit by SCOF to National Treasury and SITA in March, to obtain an update on the IFMS project.
Briefing SCOF, Dikeledi Lebea, chief director: IFMS at Treasury, said key among the reasons for a cloud solution is the directive by the DPSA that government departments should consider a cloud-first approach prior to implementing any on-premises solutions.
Additionally, the current implementation is based on an on-premises solution, which will not be supported beyond 2032. Resultantly, Treasury has issued a request for information (RFI) to consider the implementation of the latest technology for the project, according to Lebea.
“One of the considerations on the IFMS is the implementation of the latest technology. The software, which was procured in 2016, has advanced.
“There is an option for Treasury to implement a cloud solution and this is the basis for that RFI, so that National Treasury and the IFMS, as a project, can get more details and understand in detail what the technology entails, costs, implications and how the transition will work before we implement that technology.”
Lebea added that SITA and IFMS partners are gathering a team that will review the RFI response and then provide a recommendation.
“That recommendation will inform the procurement strategy the IFMS will embark on, to obtain an implementer. That implementer will be tasked with the implementation of the system for pilot purposes at selected departments, to test and set the system at those few departments and that will set a basis for national implementation.”
Speaking to the importance of considering cloud for IFMS, SITA MD Dr Bongani Mabaso said advances in technology, especially around cloud, have prompted a change in approach with regards to how the project was done before.
He added the main benefits being sought are scalability, cost-efficiency and high-availability.
Based on this, Mabaso told the committee the team decided that a cloud-based solution will make more sense going forward with regards to IFMS.
“The main solution being looked at from a cloud perspective is a software-as-a-service solution, which means the partner we’re looking for will do the upgrades, support (both second and third level), technical upgrades, security enhancements and underlying infrastructure. They will be partnered by SITA, to ensure that from a regulatory perspective, data residency and compliance that the service provider is compliant.
“We’ll also make sure that from a data residency perspective, the data is stored within our data centres, so that we can protect the information, recover it and rebuild the application, in the unlikely event the service provider goes under. That is the main reason why we’ve considered cloud.”
Long overdue
Approved in 2005, the IFMS project was launched in the hopes it will resolve financial system problems and replace aging and fragmented financial, supply chain, payroll and human resource management systems.
A public sector joint-initiative − led by Treasury in partnership with the DPSA and SITA − the project aims to deliver an integrated financial management system to be used throughout national and provincial government.
The project has been described as being critical to tightening financial control, eradicating corruption and improving public sector efficacy.
In 2016, enterprise software giant Oracle was appointed as service provider on the project.
The SCOF chairperson noted concerns at the lengthy amount of time it has taken to implement the IFMS project, questioning whether Treasury can point to any value, except buying a licence from Oracle.
DPSA deputy minister Dr Chana Pilane-Majake said the committee’s frustration at the long-overdue implementation is valid, stressing the need for a resolution soon.
She said the project’s implementation has been an ongoing saga under three presidents: Thabo Mbeki, Jacob Zuma and Cyril Ramaphosa.
Deployment mode
According to Lebea, the implementation and piloting are planned to be initiated in this financial year (2023/2024).
The review of the project is already in the advanced stages, with hopes of entering into that procurement process. Engagements have been held with all the relevant stakeholders, she added.
SITA’s Mabaso explained that a project management office (PMO) has been established within his office, managing the activities within the IFMS project. It will work in tandem with the PMO within National Treasury.
Furthermore, there is the consideration of putting together a team to review the technical responses within the RFI, he added. “This will be done jointly with the team from Treasury, as well as DPSA. This is to ensure the processes and technologies in the RFI are up-to task and make sense for the proposal being sought.”
Mabaso promised SITA will ensure the publishing and contracting of the tender are done appropriately and timeously.
Commenting on the implementation process, Lebea revealed negotiations with Oracle include the consideration of a cloud solution due to modernised technology. “The RFI is under way to guide the procurement strategy, with the first implementation to be on a cloud solution.”
She added Treasury is in discussions with Oracle on the payment of the current year’s licence support and maintenance fees, pending a decision on the cloud solution.
“No fees/costs were incurred in the 2022/23 financial year. Our users are receiving the support they need on the systems that are currently live in the IFMS licence estate – that has been a success to the programme and partnership that we have with the service provider, to ensure what has been a challenge in the IFMS is addressed.
“We anticipate the negotiations will be finalised in this financial year, after which implementation of the pilot system will also be initiated in the 2023/24 financial year.
“We will first start by piloting the system to ensure it is ready to be replicated throughout government. The piloting will be completed in this financial year and the rollout will follow immediately thereafter.
“We are comfortable that in this financial year, we’ll be able to start with the pilot and follow by implementation in the later stages of the year going into the next financial year.”
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