CHAPTER ONE

INTRODUCTIONS

Historical overview of Ethiopian Government Accounting System

Accounting is mainly governed by conventional concepts and principles. These conceptual backgrounds are
very important to study the structure and operations in accounting system. As information processing system of
an organization accounting is affected by various factors such as its environment and characteristics.
Accounting provides critical information for good financial administration system of organizations.
Government money is a public resource which the government has to spend as per clear directives and
procedures. The accounting system has to control this resource through a budget control. Budget control is one
of the broad goals of the FGE accounting system and hence it employs mechanisms for budget control.

In October 2001 Ministry of Finance and Ministry of Economic Development and Cooperation were merged to
form the Ministry of Finance and Economic Development. The new Ministry determines budget ceilings for
federal ministries and agencies and for the regions.
The responsibilities of the Minister of Finance and Economic Development (MoFED), as stipulated in the
Council of Ministers Financial Regulations No 17/1997, it consists of:
 Formulating and issuing directives that detail government financial policies in all areas of government
finances.
 Developing and maintaining appropriate standards of work and conduct for application throughout
all public bodies.
 Internal auditing functions, and
 Preparing a financial plan for the country.

PUBLIC BODIES/SECTORS

The scope of government budget would depend on the level and functions of government and on the structure
of the public sector in a particular country. The public sector includes central or federal government, provincial
or regional governments, local governments, public enterprises, departmental undertakings such as railways
and post etc… in some countries, and public non profit-making institutions. The preparation of a budget at any
one level of government had to take into account transactions with other levels of government and with other
entities in the public sector.
Changes in the FGE accounting system
 The Federal government of Ethiopia (FGE) accounting system used in 1994 EC has been in service for
more than half a century. The system has been revised at various times and the revisions through time
have brought major changes in recording, summarizing and reporting of the government financial
information.
 The federal government decided that there was a need to revise the current accounting process as an
integral part of the civil service Reform. The civil service Task force, formed in the prime minister’s
office, began the revision process. Further study and implementation responsibilities were given to the
accounts Reform Team established by the ministry of finance and Economic Development (MOFED)

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  The overall strategy of the civil service Reform for accounts is to move from strictly cash control to an
emphasis on management and accountability.

Goals achieved by FGE Accounting System

The FGE accounting system achieves three goals: budget control, cash control, and accountability.
Budget control
 The ability of the accounting system to report expenditure consistent with budgetary principles
 Including accounting for commitments in the system. A commitment is an amount of budgeted funds that is
reserved for a specific future expenditure

Cash control
 Maintaining the balance of cash at bank and cash in safe in a general budget.
 Clarifying the responsibilities and duties of the cashier and the accountant for cash at bank and cash in
safe. The cashier handles cash in safe, while the accountant is assigned overall responsibility for cash
in safe and specific responsibility for the checkbook and cash at bank.
 Using an imprest system to control cash in safe. The cash in safe is periodically reimbursed, based on
vouchers, for the exact amount necessary to restore the original cash balance deposited in the bank
intact.
 Applying double entry bookkeeping techniques in the accounting system. Double entry bookkeeping
creates a set of self balancing account ledgers (general ledger). Because the account ledgers are self
balancing accounting records in a general ledger. So, cash also controls by double entry bookkeeping.
Therefore, a running cash balance in the register ledger reflects the actual cash available.
 Employing a modified cash basis of accounting when accounting for transactions, the modified cash
basis of accounting allows the accounting system to recognize revenue and expenditure consistent with
the budgetary process and financial law.

Accountability
((GASB Concepts Statement No. 1, “Objectives of Financial Reporting,” states that “ Accountability is
the cornerstone of all financial reporting in government. . . . Accountability requires
governments to answer to the citizenry—to justify the raising of public resources and the
purposes for which they are used.” The board elaborated:
‘Governmental accountability is based on the belief that the citizenry has a “right to know,” a
right to receive openly declared facts that may lead to public debate by the citizens and their
elected representatives. Financial reporting plays a major role in fulfilling government’s duty to be
publicly accountable in a democratic society’))
 Imploring a general ledger system. Each accounting unit maintains a general ledger for each source of
funds, so each unit maintains a balanced and continuous record of its responsibilities and performance.
A set of financial reports can be produced from any single general ledger or from any combination of
general ledgers.
 Creating the ability to record and report on any assets and liabilities using a cost method of valuation.
The FGE accounting system includes a simplified process for recording any assets and liabilities in a
set of registers and in a general ledger that is independent of accounting for transactions using a
modified cash basis of accounting.

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  Establishing a system of financial reporting that produces two reports for use by government and a
statement of changes in cash position for use by interested parties outside of Budget and Actual for
revenue and expenditure and a statement of Net assets.
 Every attempt is made to design a system that is consistent and clear. To permit jurisdictions some
ability to adapt the system to their capacity, the design allows implementation of the system initially for
recording other assets and liabilities using the cost method can be deferred for later implementation.

Systems and procedures for professionals working in the FGE accounting

Cashier and Accountant
In the FGE accounting system of cash control, the cashier's function and the accountant's function are distinct.
Cash consists of currency and checks. The cashier's function is to maintain and control cash in the safe. The
accountant's function is to maintain and control cash at the bank.
Only the cashier can receive currency and checks and make disbursements in currency. Daily, the cashier
should count cash on hand and reconcile ending cash on hand to the cash book.
The cash in safe is controlled by an imprest system. When cash is received as per the budget or other sources,
the cashier will:
 Issue a cash receipt,
 Segregate the cash received from cash available to disburse,
 Deposit the cash received intact in the bank as soon as practical, usually daily, and
 Surrender copies of all cash receipts and a copy of the bank deposit slip to the accountant.
In the imprest system, a balance is established for cash in safe. The accountant issues this amount of cash to
the cashier using a check. When cash is disbursed to establish the Imprest Fund, the cashier will issue a
receipt voucher. If the amount of cash in safe is to be replenished, the cashier will surrender all payment
vouchers to the accountant. The accountant will replenish the cash in safe by issuing a check to the cashier
for the total amount of the payment vouchers that are surrendered. The replenishment should return the
balance of cash in safe to the established level.
The accountant's responsibility for cash is to maintain a record of the total cash position of the entity, including
cash at the bank and cash in the safe. The accountant records cash movements that flow through the cashier
and cash movements that flow directly through the bank. Direct cash movements through the bank normally
include bank transfers and charges, checks written, and any other transactions that do not require cash
handling by the cashier.
When a PB has more than one cashier, one cashier is designated (nominated) as the main cashier. The
other cashiers are designated as assistant cashiers. Each PB is responsible for organizing assistant and
main cashiers. However, some general principles apply.
Assistant cashiers are responsible for:
 Collection of Cash
 Issuing deposit and/or receipt vouchers
 Making deposits at Bank
The main cashier is responsible for:

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  Reconciling cash and vouchers for each assistant cashier
 Depositing cash in the bank
 Disbursing cash for the proper functioning of the PB
 Managing the petty cash
To accomplish these responsibilities, most PBs with multiple cashiers are organized as follows:
Each assistant cashier:
 Collects revenue and issues receipt vouchers
 May summarize receipt vouchers on Model 16
 Sends a copy of receipt Vouchers and Model 16 to accounts
 Sends cash to main cashier
 Receives Model 64 as receipt from main cashier
The main cashier:
 Collects cash from cashiers
 Verifies cash with accounts
 Verifies the amount on receipt vouchers equals cash received
 Verifies amount for each revenue account
 Completes Model 64
 Gives the copy of Model 64 with the deposit slip to accounts
 Gives a copy of Model 64 to assistant cashiers
 Deposits cash in bank
 Attaches the deposit slip to Model 64
 Gives the copy of Model 64 with the deposit slip to accounts
The accountant:
 Receives receipt vouchers and Model 16 from assistant cashiers
 Verifies accounts and amounts on receipt vouchers
 Dispatch the documents to the main cashier
 Receives Model 64 with deposit slip attached from main cashier
 Records Model 64 in the transaction register and ledgers

1.2 FGE Chart of Accounts

A chart of accounts is a system of coding used to identify and classify financial entities and events. The
current chart of accounts, described in the Budget Reform Manual incorporates detailed codes for items of
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domestic revenue, external assistance, external loans, and items of expenditure. This unit completes the FGE
chart of accounts by adding detailed codes for transfers, assets, liabilities, letters of credit and net assets/equity.
The classification of the chart of accounts is structured in a systematic manner and facilitates the recording of
transactions and the reporting of information in accordance with the budget.
The chart of accounts treats all detailed account codes as temporary accounts and permanent accounts.
Temporary accounts are accounts that begin each year with a zero balance. Permanent accounts are detailed
account codes whose balance at the end of a year becomes the balance in the account at the beginning of the
next year. Revenue, expenditure and cash transfers are temporary account code categories. Account codes in
these categories:
 are always treated as temporary accounts, and
 begin each year with a zero balance.
Assets, liabilities and net asset/equity are permanent account code categories. Account codes in these
categories:
 are always treated as permanent accounts, and
 begin each year with the account balance as long as they had at the end of the previous year. In
other words, these accounts are not closed.
Chart of Temporary Accounts
The Budget Reform Team under the Expenditure Management and Control Sub-Program of the Civil Service
Reform designed codes in the chart of accounts for detailed coding of:
 Items of domestic revenue, external assistance and external loans using code numbers 1000 through
3,999, and
 Transfers using code numbers 4000 through 4099.
 Items of expenditure using code numbers 6,000 through 6,999.
The Budget Manual created account codes for the FGE chart of accounts as follows:
 Items of domestic revenue using account codes 1000-1999,
 External assistance using account codes 2000-2999,
 External loans using account codes 3000-3999,
 Transfers using code numbers 4000 through 4099, and
 Items of expenditure using account code 6000-6999.
Chart of Permanent Accounts
The Accounts Reform Team under the Expenditure Management and control Sub-Program of the Civil Service
Reform designed codes for detailed coding of:
 Assets using code numbers 4100 through 4999.
 Liabilities using code numbers 5000 through 5499.
 Letters of Credit using code numbers 5500 through 5599.
 Net Assets/Equity using code numbers 5600 through 5699.
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General description of these account codes is described below:
Assets: As written by different scholars at different times, Assets are resources controlled by an entity as a
result of past events and from which future economic benefits or service potential are expected to flow to the
entity. The categories of assets in the FGE accounting system are: cash and cash equivalents, receivables,
goods in transit, stocks, fixed assets, loans receivable, investments, liabilities, letters of credit, and net
assets/equity.
Cash and cash equivalents: Cash is cash on hand and cash at bank. Cash equivalents are short-term, highly
liquid investments that are readily convertible to known amount of cash and which are subject to an
insignificant risk of change in value.
Receivables: receivables are amounts owed to (given to) a government unit by another government unit, a
person, or a non-government entity except public enterprises. Salary advances to employees and advances to
suppliers are two examples of receivables commonly occurring in FGE transactions.
Goods in transit: Goods in transit are goods that are owned by the FGE but not yet in the FGE's possession.
Typically, these are goods that are purchased overseas using a letter of credit.
Stocks: Stocks are goods that are consumed in less than one year.
Fixed assets: Fixed assets are physical items that are expected to have a useful life of longer than one year and
have a certain minimum value.
Loans receivable: Loans receivable are amounts due from public enterprises over a period of time exceeding
one year.
Investments: Investments are FGE investments in public enterprises and private organizations that are held
for more than one year.
Liabilities: Liabilities are formally defined by the Institute of Public Sector Accounting standards as "present
obligations of the entity arising from past events, the settlement of which is expected to result in an outflow
from the entity of resources embodying economic benefits or service potential." Liabilities are better defined
by example. The categories of liabilities in the improved and expanded accounting system are:
 Payables. Payables are obligations to pay that are due in less than one year. Examples of FGE
payables are deposits, grace period payables, treasury bills, and retention on contracts.
 Long-term debt. Long-term debt is an obligation to pay that is due in more than one year.
Letters of Credit: A letter of credit represents a guarantee to pay suppliers with cash set aside in bank account
restricted for that purpose.

Net assets/equity: Net assets/equity is formally defined by the Institute of public sector accounting standards
as "the residual interest in the assets of the entity after deducting all its liabilities." Net assets/equity is the
balance remaining after liabilities are deducted from assets. The balance represents the equity interest of
Regional and Federal Governments.

Account code Account title

4007 Cash Transfer for Grace Period payables

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 4102 Cash at back in foreign currency and cash at bank in
Birr equivalent to Foreign Currency

4552 Building under progress: non-residential

6212 Expenditure for supplies

5001 Grace Period payables

1101 Revenue form Income tax

1.3 Ethiopian Government Budgeting System

Ethiopia has a dual budgeting system in which recurrent and capital expenditure are considered
separately. Until recently these two budgets were prepared separately by the Ministry of Finance and
the Ministry of Economic Development and Cooperation, respectively. In October 2001 these two
ministries were merged to form the Ministry of Finance and Economic Development. The new Ministry
determines budget ceilings for federal ministries and agencies and for the regions.

MoFED is the major clearing house for the preparation of the federal budget in Ethiopia, although this is done
in consultation with the various ministries that are the beneficiaries of the budget. The responsibilities of the
Minister of Finance and Economic Development, as stipulated in the Council of Ministers Financial
Regulations No 17/1997, consist of formulating and issuing directives that detail government financial policies
in all areas of government finances; developing and maintaining appropriate standards of work and conduct for
application throughout all public bodies; internal auditing functions; and pre- paring a financial plan for the
country.
Each public body needs to take the initiative to commence budget preparations before they receive the budget
call letter from Ministry of finance and economic development (MoFED) with their budget ceilings, such as
development of unit costs (where appropriate), a midyear program review, and the preparation of work plans.
Various steps are involved in the process of budgeting in Ethiopia. The first step in the process is the sending
of Budget Calls and ceiling notifications to line ministries by the MoFED. The various line ministries submit
their budget request as per the established regulations. After the budget hearing and defence process at the
MoFED, the final budget will be submitted to Parliament by the Prime Minister for approval. It is important to
distinguish between the approved budget and the annual appropriations. The budget that is approved by the
Council of Peoples Representatives is a detailed budget, i.e., by public body, sub-agency, project, expenditure
item, etc. However, the appropriations are at a more aggregate level. An appropriation is a legal mandate to
spend money out of the consolidated fund. After the Council of Peoples Representatives has approved the
budget, it is the responsibility of the civil service to implement that budget. Implementation of the approved
budget is also known as budget execution (MoFED, 2006).

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The implementation phase of the budgetary process covers not only measures for disbursing funds already
allocated but also the monitoring of how funds are spent to ensure that they are used judiciously and for the
intended purposes. It is the responsibility of Ministry of finance and economic development to inform all
public bodies of their approved budget. It uses forms to notify each public body of their approved recurrent
and capital budget respectively; and between July 8 and 15 (MoFED,2006)

Funds are dispersed to ministries each month on the basis of the allotted budget. Every Ministry is required to
submit a monthly disbursement request in which it reports the previous month’s expenditure, detailing what
was spent and how it was used, and makes a request for the next month’s allocation through a work plan. The
Ministry’s Fund Disbursement Department handles the process of fund disbursement for the ministries and
keeps records of all transactions. The budget registrar in the Disbursement Authorization Department records
the original budget, all transfers and supplementary budgets, the disbursements made and any undisbursed
allocation. Each public body is required to enter details of its approved budget onto their budget expenditure
subsidiary ledger cards for each budget institution, sub-agency, or project. The cards are used to keep track of
approved budget, budget adjustments/transfers, supplements, and commitments.
Although planning and budget processes should be thorough and attempt to anticipate needs of the next year,
not all future circumstances can be foreseen with accuracy. When the situation demands, the approved budget
can be legally adjusted during the year to adapt to unforeseen circumstances. Budget adjustments are not
desirable and can be avoided by proper planning and budgeting.

There are two types of budget adjustment permitted by law: budget transfer and budget supplement.

1, Budget Transfer- moving budgeted funds between public bodies, budget institutions, projects or items of
expenditure, without changing the total approved budget. Budget transfers between public bodies, budget
institutions, projects or items of expenditure are authorized by the Financial Administration Proclamation No.
648/2009 and the Financial Regulations No. 17/1997, subject to certain restrictions and the required level of
approval or authorization. These include:
 No transfers are permitted from other recurrent expenditure to salaries, wages or allowances;
 No transfers are permitted from the capital budget to the recurrent budget;
 All other transfers must be approved by the authority specified in Part Four of the Financial
Administration Proclamation No. 648/2009, and the Financial Regulations No. 17/1997.

On the other hand, MoFED is empowered to transfer funds within items of expenditure of the recurrent budget;
and budget from one capital project to another within a public body (FDRE, 2009).
2, Budget Supplement- the total approved budget can be increased with the approval of the Council of Peoples
Representatives on recommendation of the Council of Ministers. It is additional authority to spend beyond the
original approved budget.
During a budget year, while an approved budget is in the process of being implemented, it is possible that:
 An unforeseen or urgent need for increased expenditures arises, (e.g. a natural disaster); or
 A new project, not included in the original approved budget, is approved for commencement during the
budget year;
 Additional resources become available (e.g. from external assistance or loans) that can fund increased
total expenditures, including any new projects.

Any of these circumstances may require additional expenditures during the budget year by a public body
beyond those in the approved budget. In these situations a supplementary budget and appropriation are

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required. These are also authorized by Part Four of the Financial Administration Proclamation No. 648/2009
and the Financial Regulations No. 17/1997.
Supplementary budgets are coordinated and prepared by MoFED, based on requests or
proposals received from public bodies. Public bodies are required to prepare their
supplementary budget requests in writing and submit to MoFED Budget Department. Then,
MoFED notifies public bodies of their approved supplementary budget. Subsidiary ledger card
must be kept up to date by public bodies so as to show the correct adjusted budget and to
prevent any overspending or over commitment of funds available. MoFED coordinates the
management and control of public funds in Ethiopia. It is this Ministry that keeps the accounts
of the federal budget and prescribes regulations on financial management and control for
ministries and government agencies. In addition, ministries are required to manage and
control funds allotted to them following the central regulations and directives on financial
management set out by MoFED. The regulatory mechanisms of the budget include
requirements that:
a) Budgetary receipts be recorded in the appropriate budgetary account as prescribed in the financial
regulations and in a timely manner;
b) Collected revenue be recorded under the appropriate revenue account;
c) Expenditure only be made in compliance with the financial regulations;
d) All books of accounts be closed each month and a monthly receipt and disbursement be prepared and
submitted to MoFED at the centre and regional finance bureau in the regions;
e) Periodic financial statements be prepared and submitted to the Council of Ministers and regional executive
committees by MoFED at the centre and regional finance bureau in the regions;
f) A consolidated annual report be prepared and sent to the Council of Ministers and regional executive
committees by MoFED and regional finance bureau. MoFED can be seen to play a central role in the budgetary
process of the country. It controls the formulation and implementation of the budget of line ministries at
various levels.

During the writing of the Budget Calls, it can make changes in the budget allocation of line ministries after
review and analysis of the budget estimate submitted by the ministries. It decides the level of the budget to be
recommended to the Council of Ministers. During implementation, it has the power to disburse funds. Through
the monthly accounting reports, it scrutinizes the performance of the ministries in budget implementation, and
it can decide on the level of funding to be authorized for disbursement. It can also approve transfers and
recommend supplementary allocations.

1.3.1 Budget Ledger Card

The purpose of the budget ledger card is to maintain a continuous and updated record for each budgeted item
of expenditure by BI and source of finance with respect to:
 Approved budget
 Revised budget
 Payments received for budgeted expenditure.

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  Amount remaining to be requested.
 Commitments
 Balance in the revised budget that is not committed.
The budget ledger card is divided into two parts:
A. The top of the card contains information to identify the
 BI,
 Type of budget, and
 Item of expenditure.
 The table on the card contains detailed information about each budget transaction.
B. The Budget Section maintains a budget ledger card for each individual item of budgeted expenditure by BI and
source of finance. The appropriate budget ledger card is updated each time a transaction occurs. The Figure shows the
Budget Ledger Card;
Figure : Budget Ledger Card
Me/He 16 Page No:_____
Name of Public Body: ___________________________ Code: ________
Name of Program: ______________________________ Code: ________
Name of sub Agency: ____________________________ Code: ________
Name of Sub Program ___________________________ Code: ________
Type of Budget: ________ Code: _____
Name of Project ________________________________ Code: ________
Source of Finance _______________________________ Code: ________
(Donor/Lender_______________ Item of Expenditure: _____ Code: ____

NO Additio Balance
. n to Not
Referen Approved Budget Reduction Revised Payment Unpaid Committed
ce No. Budget to Budget Budget Received Balance
Date Descriptio Commi
n tment

(Source: MoFED&DSA Project manual, December 2002)

1.5 Basis of Accounting

A transaction is an economic event that affects the financial position of the government. The basis of
accounting is the basic set of principles and rules employed by the accounting system to determine when and
how to record transactions. The cash basis of accounting is a basis of accounting that recognizes transactions
and other events when cash is received or paid.
Although organization’s earnings and related operating activities are continuous, they are reported at specific
intervals (i.e. an accounting period or budget year) in order to provide useful information for decision-making

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on a timely basis. Some activities may begin and end during the accounting period, while others may require
two or more accounting periods for completion. Budget year for FGE is from Hamle 1 to Sene 30.
In summary, accrual accounting is based on cash flows but reports transactions and other events with cash
consequences at the time the transactions occur rather than at the time cash is received or paid. Accrual
accounting is also superior to cash-basis accounting from the standpoint of measuring financial statement
elements.
The FGE accounting system employs a modified cash basis of accounting. Modified cash basis of accounting
is a compromising basis of accounting between the two extreme bases of accounting. It adopts features from
both bases of accounting. Most transactions are recorded using cash basis of accounting and some transactions
are recorded using accrual basis of accounting. The modified cash basis of accounting in FGE means that cash
basis applies except for recognition of the following transactions:
Æ Revenue and expenditure are recognized when aid in kind is received.
Æ Expenditure is recognized:
 When payroll is processed.
 At the end of the year when a grace period payable is recognized.
 When goods are received or services are rendered if payment for the goods or services was
rendered in advance.
 When cash moves from an unrestricted to a restricted bank account to meet the requirements of
a letter of credit. When cash moves out of he restricted account, no expenditure is recognized.
Æ Intergovernmental transfers are recognized in the absence of actual cash movement.
Æ Transactions resulting from salary withholdings are recognized in the absence of actual cash
movement.
The modified cash basis of accounting is consistent with the budgeting process and produces information
useful for comparing budgeted and actual revenue and expenditure. The modified cash basis accounting system
requires the same temporary accounts as the cash basis of accounting plus the following permanent accounts:
cash and cash equivalents, receivables and payables.
The FGE accounting system employs a combination of temporary and permanent accounts. All account
balances at the end of the year may not have a zero balance. So, a process is necessary that distinguishes
temporary accounts and sets them to zero. The process of setting the balance in temporary accounts to zero is
called closing the accounts, and the process is performed by a closing entry. The closing entry is an accounting
activity that takes place at the end of each budget year. This process requires a net assets/equity account.
Asset and liability accounts other than cash, receivables, payables, and letters of credit are included in the
chart of accounts to allow institutions that have the capacity to maintain accounting records of all assets and
liabilities. These other assets and liabilities are recorded using the cost method. The cost method values assets
at their original cost and liabilities at the amount still due. Recording these other assets and liabilities is an
option for the future in the FGE accounting system.
1.7 Overview of IBEX

• To meet the government policy of implementing the accounts and budget reforms
nation wide and use the new information communications technology(ICT)
infrastructure, the government specified that the Budget Information System(BIS) /
Budget, Disbursement and Accounts(BDA) systems will be upgraded in to the Integrated
Budget Expenditure(IBEX) System.

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• Since 1998 EC.(2006 GC.) IBEX(Integrated Budget and Expenditure System)
has began it’s operation by the budget module then after the other 5 modules
added to the system i.e
 Accounts
 Accounts Consolidation
 Budget Control
 Budget Adjustment
 Disbursement

What Is IBEX ?
• It is an integrated budget and accounts financial application. That provides the
framework for core public financial management functions. It Combines what were two
previously separate applications called Budget Information System (BIS) and Budget,
Disbursement and Accounts(BDA). An upgrade of BIS/[Link] has access through a web
browser such as Internet Explorer. It deployed in two configurations:
1. Server – The distributed configurations exists as a mulit-user IBEX system that will be
installed in centralized location (usually the regional financial center) and will serve a
browsed-based application to all client that are connected to the server on LAN network
2. Standalone – Replace the non-networked installation of BIS/BDA systems

•As replacement to the BIS/BDA desktop application

– IBEX and BIS/BDA coexists
– BIS/BDA as standalone versions

The Reports of IBEX System

• The system can generate accurate and on-time report
• All IBEX modules leverage a standard reporting framework that allows for the
relatively rapid creation and addition of reports.
• All reports allow for pre-defined selection / filtering criteria which vary from report to
report.
• All reports are available in one or more of the following formats: HTML(On Screen),
Microsoft Excel, Microsoft Word, PDF (Adobe Acrobat)
• Reports will be presented to the user depending on what functional area they are
working in and their authorization level.
• IBEX greatly simplified the process of creating additional reports for any of the
modules it contains
• In Addition because of the unified (Integrated) data store, cross-functional reports that
leverage data from multiple functions can be created.

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Overview of IFMIS
The Government of the Federal Democratic Republic of Ethiopia (FDRE) recently embarked on reforming the
Public Financial Management (PFM) systems by implementing the Integrated Financial Management Information
System (IFMIS). In its second year of implementation, the IFMIS is an integrated Financial Management
Information system, that will enable the generation of accurate, accessible and timely government-wide financial
information and reports, support public bodies and regions in the development of better macro-economic and fiscal
policies and the improvement of their quality of PFM service in accordance with agreed priorities, and in the
process, contribute to the alleviation of poverty in Ethiopia.

The implementation of the IFMIS commenced in 2010 with a pilot phase covering 10 initial sites. 9 Oracle E-
Business Suite Version 12.1.1 modules have been implemented comprising the General Ledger, Accounts Payable,
Accounts Receivable, Cash Management, Public Sector Budgeting, Purchasing, Payroll, Inventory and Fixed
Assets. The system has also been interfaced with ASYCUDA (customs system) and SIGTAS in the Ethiopia
Revenue and Customs Authority. The required data centre infrastructure has been implemented along with site
infrastructure readiness works for selected sites. Training has been delivered to 700 users together with knowledge
transfer to over 80 Government staff. Change management activities have been undertaken by Government across
all the pilot sites. The pilot sites started the parallel run on 24 th December 2012 and support is planned to commence
after achieving operational acceptance.

However, the remaining Federal and Regional bodies continue to use the legacy Integrated Budgeting and
Expenditure System (IBEX) which runs on the WOREDANET, a government Wide Area Network, with most of
the budgeting, expenditure and accounting processes still largely manual. Following the success of the Pilot
Implementation, Government now intends to commence the rollout of the IFMIS across government by
prequalifying eligible bidders who shall thereafter be invited to submit bids for the IFMIS rollout implementation.

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