CROSS-FUNCTIONAL INFORMATION SYSTEMS

Presented By: Khurram Sheraz GondalRoll #508194692

Information• Information is data placed in a meaningful and

useful context for an end user

System• A system is integration of different components

for specific objective for making some decision.

Information SystemA set of people, procedures and resources that collects, transforms, disseminates information in an organization.

Role / Importance of Information System

• Support of business operations.• Support of managerial decision-making.• Support of strategic competitive advantage.

Components/ Resources of Information System.

1. People, 2.Hardware, 3.Software,

4.Data, 5. Network Resources

TYPES OF INFORMATION SYSTEMS• Knowledge Management Systems• Expert Systems (ES)• Decision Support System (DSS)• Executive Information System(EIS)• Management Information Systems (MIS)• Transaction Processing System (TPS)• Office Automation Information System (OIS)• Management Reporting System (MRS)• Executive Support System (ESS)

Basic Types of Functional Systems

• Marketing and Sales Systems

• Manufacturing /Operations Systems

• Human Resource Systems

• Accounting Systems

• Finance Systems

Major Problems of Isolated FS

• Data duplication, • Data inconsistency,• Disjointed Processes, • Isolated decisions lead to inefficiencies,• Increased expenses

Cross functional IS

• A cross-functional information system is the third era of information systems, after calculations systems and functional systems

• Cross-functional systems were designed to integrate the activities of the entire business process

Cross functional IS

PRACTICAL STUDYAccountant General Pakistan Revenues

(AGPR)

Context of Audit and Accounts

Fundsauthorization

AuditReport

AG

P Line D

epartments

MOF/Legislature

CGAFinancial Reporting

Execution

AGPR• Is responsible for the centralised accounting

and reporting of federal transactions. • The AGPR receives accounts and reports from

the DAOs, PAOs, Federal Treasuries and SBP/NBP, and provide Annual Accounts (to the AGP) and Consolidated Monthly Accounts (to the Federal Finance Division).

AGPR• Accounting policies & procedures were not in

line with international standards• To meet the international standards of

reporting the Government launched the Project to Improve Financial Reporting and Auditing (PIFRA) in all the accounting offices.

• AGPR as a PILOT SITE – inaugurated on 20th January, 2003 by

Mr.Muhammad Younis Khan, Auditor General of Pakistan.

Application Software (SAP)

Cross Functional IS & AGPR

• For implementation PIFRA, the computerized software SAP is being used which is the world’s leading ERP. Two main areas in which the activities relating to SAP are divided are:

• FI-(Financials) • HR-(Human Resources)

SAP Financial (FI)• The FI Module integrates with other SAP Modules

such as MM (Materials Management), PP (Production Planning), SD(Sales and Distribution), PM (Plant Maintenance),and PS (Project Systems).

• The FI Module also integrates with HR(Human Resources) which includes PM(Personnel Management), Time Management, Travel Management, Payroll.Document

Main Functions of FI:• Punching of bills • Account Preparation • Accounts Compilation • Proof Reading • Transfer Entries • Vendor Creation • Vendor Updation • Training of Officers / Officials in SAP • Accounts Enquires

SAP HR Module

• The module which helps you optimize your HR processes to attract, develop and attain the right people including– Employment history – Payroll – Training – Career management – Succession planning

Check No

DateAccount

Particulars VendorDocum

entAmount

Tax

Ded

Other

Inv Amount

Inv

Ref

Cost Centr

eKPO

No Name No Rs Rs Rs Rs Name Date

1797365

20-Dec-08

A03927

Purchase of drug and medicines

30021499

Nisar Enterprises

1900135425

16,710

606

01731

6Q

Mehmood

6-Dec-08

1774573

2-Dec-08

A13001

Transport30028181

Toyota Islamabad Motors

1900123758

2,292

107

65 2464 QID0023

M.Atif26-Nov-08

1791504

21-Nov-08

A13001

Transport30021379

Rawal Autos Islamabad

1900116682

4,942

149

97 4738 QID3755

Tahir.M

19-Nov-08

1604847

27-Oct-08

A03202

Telephone and trunk call

30020985

PTCL Islamabad

1900090094

2,158

0 0 2158 QID0441

SAbbasi

22-Oct-08

1761917

7-Oct-08

A01272

Night Duty Allowance (DDO Law Justice Div)

NA NA1900059635

1,125

NA NA NANA

ID1544

A.Rehman

30-Sep-08

Level 1 Level 2 Level 3 Payment BankAccount

Payment

Date

Name Date Name Date Name DateDocume

ntDate cleared

Imtiaz S 6-Dec-08FidaBatool

18-Dec-08

Zeb20-Dec-08

1500111212

SBP NF20-Dec-08

o/s

Aurangzeb

29-Nov-08

MAshrafR

29-Nov-08

MAbid2-Dec-08

1500100128

SBP NF2-Dec-08

30-Dec-08

Zurghan20-Nov-08

ChMunir20-Nov-08

Zeb21-Nov-08

1500091020

SBP NF21-Nov-08

1-Dec-08

Sharafat25-Oct-08

Khadimah

25-Oct-08

Shafiq25-Oct-08

1500069932

SBP NF27-Oct-08

1-Nov-08

UfidShoaib

30-Sep-08

Latif30-Sep-08

MEjaz 7-Oct-081500057065

SBP NF7-Oct-08

13-Oct-08

UfidShoaib

9-Oct-08 Latif 9-Oct-08 Maroof11-Oct-08

1500059461

SBP NF11-Oct-08

22-Oct-08

SIKANDAR

13-Sep-08

KashifR16-Sep-08

Nasreen16-Sep-08

1500040038

SBP NF19-Sep-08

5-Nov-08

SIKANDAR

16-Sep-08

KASHIFR16-Sep-08

NASREENB

17-Sep-08

1500040879

SBP NF17-Sep-08

24-Sep-08

SHARAFAT

27.09.2008

KHADIMH

27.09.2008

MABID30.09.2008

1500055156

SBP NF30-Sep-08

31-Oct-08

SWOT Analysis

• StrenghtsStrenghts• Data is sufficient to the extent of budget, • Timely information of financial transactions.• Check and balance on financial transactions • Reporting of international Standards• Data and database adequately backed up

providing fault-tolerant and fail-over mechanism with onsite and offsite backup.

WeaknessesWeaknesses• The information in SAP R/3 is not reliable and can not

be utilized to generate a complete set of Financial Statements without inclusion of manual prcedures.

• SAEs other than Foreign Office and PWD are not on SAP and data is entered on monthly basis for which transactional level data is not available in the System.

• Fixed assets module is not operative. No memorendum record of fixed assets is kept in the System.

OpportunitiesOpportunities

• Improve public sector accounting and financial systems

• Provide basis for enhancing public sector accountability

• Support improved institutional capacity for economic policy-making and management

ThreatsThreats• Since no previous financial year has been closed in the

System, the data can not be relied upon. Long outstanding parked documents, unreconciled balances in clearing, control and suspense accounts shall hinder the closing process whenever it is carried out.

• There is no Disaster Recovery Planning. Also there is no alternative processing site (Hot site or Cold site) currently for AGPR.

• Project life is not available in the System nor there is any reference to PC-1 of the respective project agreement.

RECOMMNEDATIONSRECOMMNEDATIONS

• Steps need to be taken to improve input controls and to integrate various systems and modules so that reconciliations and exception reports are generated by the System. Previous years should be formally closed in the System.

• Extensive trainings of KPOs should be carried out and their performance should be monitored regularly. This will reduce the laborious task of identifying and correcting the data entry errors.

THANK YOU for LISTENING

ALLAH HAFIZ