Implementation of financial management information systems: Mongolian Ministry of Finance

Absztrakt (kivonat)

Over the last two decades, several public financial management projects have been implemented in Mongolia, with support from international financial institutions, to enhance interaction with its constituents for information sharing. Thus several ad hoc developments and deployment of computerized government financial management information systems emerged at Ministry of Finance. In recent years, efficient and effective government financial operations have discussed. Due to this, it is of high importance to integrate those independent information systems for purpose of efficient and effective. The objective of this study is therefore to investigate the current circumstances for the implementation of financial management information systems and how independent FMISs impact on the relationship between Mongolian Ministry of Finance and budget entities and its employee’s job performance. In order to achieve this objective, the thesis is based on three research questions: 1) What are the key factors that contributed to the success and failure of the previous financial management information systems projects?; 2) Does government strengthen inter-sectoral institutional collaboration through the introduction of financial management information systems, and thereby improving the quality of policy decision-making?; and 3) Do the independent financial management information systems contribute to the improved job performance of the staff of the Ministry of Finance and its tier organizations? In order to answer the research questions, a literature review, semi-structured interviews and document analysis are performed. The purpose of literature study is underpin in broader sense in government financial management information system integration; in detail; the agency theory is used to understand the behavior of different government entities at various stages of information systems implementation and integration, and how the establishment of FMIS is interpreted in agency theoretic terms, support decision making by eliminating information asymmetry between principal and agents in public sector sphere. Technology acceptance model is also central to the study of the relationship between financial management information system and end-users. This model studies how separate information systems influence public staff job performance. iv One of the key findings of the study was the existing independent FMISs can be improved through greater integration with each other while expansion of the ISs stated otherwise. Furthermore, it was found that the proper project preparation, unstable legal and political environment, poor ICT knowledge and skills, weak end-user involvement, high rate staff turnover and poor knowledge management are identified as key aspects that hinder or promote successful implementation of FMIS projects in Mongolia. In agency theory perspective, the MoF departments made good progress that strengthening inter-sectoral institutional collaboration. Nevertheless, as main purpose of FMIS is offering huge opportunities for removing many of the barriers to the communication between dispersed government entities, in practice multiple FMISs not works full potential which entails another problem. Findings from research and document review have highlighted that the FMISs supports policy decision making in the Mongolian Ministry of Finance, but could not confirm at budget entities level. Moreover, analysis reveals that FMISs do not share data with one another, and the systems have been introduced in a fragmented fashion that increases the data exchange problems, and create gaps and overlaps in function. According to the Technology Acceptance Model, the independent financial management information systems increase demands on staff time and reduce capabilities of the public staff. Finally, the Organizational Interoperability Maturity Model applied to reveal current interoperability level of Mongolian Ministry of Finance. The findings suggest that current maturity level is Collaborative (level 2). The main explanation for this is that the various departments of MOF autonomously made decision to adopt new software without any consideration of interoperable with other systems.