November 12, 2009Doug Hadden
Numerous speakers 3rd Global Conference on Electronic Government Procurement held at the Inter-American Development Bank in Washington DC described the need for integration. Procurement systems need to integrate with Government Resource Planning systems to enable transparency and efficiency. e-GP is a major element for GRP or Integrated Financial Management Information Systems (IFMIS)
Integration with GRP modules included:
Budget Planning integrated with e-GP to support procurement plans. Many capital expenditures operate across multiple years. These projects often require recurring expenditures including salaries and maintenance.
Budget Execution and Government Accounting integration including budgetary controls. e-GP systems need to integrate with the changing government budget, appropriation and liquidity situation. Many countries soft commit or pre-encumber funds during the tendering process for improved budget and cash management. Purchase orders, payment terms, invoicing and payments need to be integrated with the accounting system. The use of accrual accounting increases the need for integration.
Fixed Asset and Inventory items are acquired through the e-GP system. These items should automatically update asset and inventory sub-systems. Asset responsibility, depreciation method and useful life information should be automatically integrated. Inventory special handling, stores handling and other information should also be automatically integrated.