Table of Contents

1.​ BACKGROUND​ 5

2.​ OVERVIEW OF CURRENT ICT SYSTEMS IN PFM​ 8

3.​ OVERVIEW OF IFMIS SCOPE AND FUNCTIONALITY​ 12

3.1.​ Scope of IFMIS​ 12

3.2.​ Users of IFMIS​ 13

The following presents an overview of the end user agencies for the IFMIS.​ 13

3.3.​ Overview of System Functionality​ 14

4.​ IMPLEMENTATION APPROACH FOR IFMIS​ 33

4.1.​ Phasing Plan for implementation of PFM Functions in IFMIS​ 33

4.2.​ Phasing of system implementation for Government Agencies​ 33

5.​ SCOPE OF WORK FOR THE SERVICE PROVIDER​ 36

5.1.​ IFMIS Implementation Requirements​ 37

5.1.1.​ Design, development and implementation of application software................................ 37

5.1.2.​ Capacity Building for the Stakeholders.............................................................................. 45
5.1.3.​ Data Migration........................................................................................................................50

5.2.​ IFMIS Support Services Requirements​ 51

5.2.1.​ Warranty and Maintenance Support of Application and System Software (IFMIS
Support Services)..................................................................................................................................... 52
[Link].​ Transition Management........................................................................................................ 54

6.​ IMPLEMENTATION AND PAYMENT SCHEDULE FOR IFMIS​ 55

THIS SECTION INCLUDES THE IMPLEMENTATION AND PAYMENT SCHEDULES FOR IFMIS PROJECT.​ 55

6.1.​ Implementation Schedule for IFMIS​ 55

6.2.​ Payment Milestones​ 58

1
Table 1:​ List of Acronyms
ADB Asian Development Bank
AMC Annual Maintenance Cost
APP Annual Procurement Plan
BI Business Intelligence
BoB/BoBL Bank of Bhutan Limited
BOM Bills of Materials
BRF Budget Release Forecast
CD Current Deposit
CFC Central Finance Cluster
CS-DRMS Commonwealth Secretariat Debt Recording Management System
DB Database
DCDMD Development Coordination and Debt Management Division
DMDF Department of Macro-Fiscal and Development Finance
DRC Department of Revenue and Customs
DR Disaster Recovery
DTA Department of Treasuries and Accounts
DV Disbursement Voucher
CMS Construction Management System
e-CMS (DRC) Electronic Customs Management System
e-DATS Electronic Daily Allowance & Travel System
e-GP Electronic Government Procurement
e-PEMS Electronic Public Expenditure Management System
ERP Enterprise Resource Planning
FIFO First In First Out
FRS Functional Requirement Specification
GCF Government Consolidated Fund
GIMS Government Inventory Management System
GPS Government Payroll System
GRN Goods Receipt Note
IFMIS Integrated Financial Management Information System
IT Information Technology
LC Letter of Credit
MoF Ministry of Finance
MoIT Ministry of Infrastructure and Transport
MYRB Multi Year Rolling Budget
OD Overdraft

2
OEM Original Equipment Manufacturer

PFM Public Financial Management

PLC Project Letter of Credit
PMU Project Management Unit
PO Purchase Order
PR Purchase Requisition
RCSC Royal Civil Service Commission
RMA Royal Monetary Authority
SDD System Design Document
SLA Service Level Agreement
SOE State Owned Enterprise
SRS System Requirement Specification
SSO Single Sign On
ToR Terms of Reference
TSA Treasury Single Account

3
List of Tables

Table 1: List of Acronyms​ 2

Table 2: Current ICT Systems for PFM​ 8
Table 3: Scope of IFMIS including proposed system interfaces​ 12
Table 4: Master Data Creation Requirements​ 16
Table 5: Envisaged IFMIS Features for Budget Preparation​ 17
Table 6: Envisaged IFMIS Features for Budget Management​ 20
Table 7: Envisaged IFMIS Features for Commitment Management​ 22
Table 8: Envisaged IFMIS Features for Cash Management​ 24
Table 9: Envisaged IFMIS Features for Expenditure Management​ 27
Table 10: Envisaged IFMIS Features for Receipts Management​ 30
Table 11: Envisaged IFMIS Features for Debt Management​ 31
Table 12: Key Roles & Responsibilities of IFMIS Implementation Partner​ 36
Table 12: Summary of Scope of Work for the IIP​ 37
Table 13: Detailed scope of work for IIP for IFMIS design and development​ 37
Table 14: List of training programs in scope for IIP.​ 45
Table 15: Coverage of training courses​ 45
Table 16: Scope of Services related to training requirements for IFMIS​ 48
Table 17: Data migration requirements for IFMIS​ 50
Table 18: Scope of support services for IFMIS​ 52
Table 19: IFMIS implementation schedule and deliverables​ 55
Table 20: Payment Schedule for IFMIS Application Software and IT Infrastructure​ 59
List of Figures

Figure 1: functional overview of IFMIS​ 15

Figure 2: Functional Architecture for IFMIS​ 16

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 Terms of Reference for IFMIS Implementation Partner (IIP)

1.​ Background
The Ministry of Finance (MoF), Royal Government of Bhutan (RGoB) has been
implementing various reforms for strengthening and modernization of Public Financial
Management (PFM) in the country. The modernization (or automation) journey for the PFM
commenced two decades ago and most functions in PFM have been automated to varying
degree. Following systems are currently in use for PFM catering to specific needs of PFM
functions and the stakeholders:
Multi-Year Rolling Budget (MYRB) – MRYB supports in preparation and finalization of annual
budget including its revisions (supplementary budgets, reappropriations etc.)
Electronic Public Expenditure Management System (e-PEMS) – e-PEMS supports budget
execution, particularly for managing the public expenditure. System supports the creation
and the disbursement vouchers and releasing payments for all categories of expenditure
including accounting and reporting for public expenditure. e-PEMS also has payroll module
for generation of payroll for all the government employees. System is interfaced with the IT
systems in the Bank of Bhutan to support in e-payments to the payees. With the introduction
of e-payments, a significant portion of public expenditure now is paid through electronic fund
transfer to the bank accounts of payees.
Financial Documentation (FinDocs) –the supporting documents for disbursement vouchers
are captured in FinDocs in electronic format. Softcopies of the documents are tagged to the
voucher number generated from e-PEMS.
Electronic Daily Allowance & Travel System (e-DATS) – eDATS supports in processing the
travel authorizations for the official travels of the staff in the government and is interfaced
with the e-PEMS for payments for advances and for settling the expenditure incurred during
such travels.
Meridian/ Commonwealth Secretariat Debt Recording Management System (CS-DRMS) – Is
in use for managing the public debt, particularly for the external debt. System supports
recording the details of debt instruments, accounting for funds received and repayments for
the external debt including generation of reports for debt monitoring and reporting.
The ICT systems for PFM are hosted in the Government data center being managed by the
GovTech, an autonomous agency established by the Royal Government for providing ICT
systems and infrastructure planning, coordination, implementation and maintenance across
the Government in the country.
The government implemented several other IT systems for automation of other related
functions for PFM. Some of these systems have electronic data exchange mechanisms in
place with the core IT systems in PFM as referred to above.
IT systems at Department of Revenue and Customs (DRC) – DRC has implemented several
key systems for modernization of tax and customs administration and related revenue
collection. Key systems at DRC include (a) Revenue Administration Management
Information System (RAMIS) for collection of major taxes such as income tax, sales tax etc.,
(b) Property Tax System for administration and collection of property tax, (c) Electronic
Customs Management System (e-CMS) for administration and collection of customs duties
and taxes and (d) Bhutan Integrated Revenue Management System (BIRMS) for collection
of non-tax revenues. These systems are interfaced with the banking systems to support
online payments for tax and non-tax revenues.
E-Government Procurement (e-GP): e-GP system is supporting in various public
procurement functions including creation of annual procurement plans, creation of tender

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documents through electronic bidding document creation facility in the system, publishing
bidding documents, receiving tenders/proposals, evaluation and award of contracts. e-GP is
also interfaced with MYRB and e-PEMS.
Government Inventory Management System (GIMS) – Supports recording details of assets
procure/constructed through public expenditure and tracking their allocation. GIMS is also
interfaced with the e-GP system currently.
ZESt System – The Royal Civil Service Commission has introduced the ZESt system, which
supports Human Resource Management for Government employees, for both regular and
contractual staff. The system supports recording details of staff, their qualifications,
designation, paygrade and structure, details of training and certifications, processing
payments for certain specific benefits extended to the employees etc.
Contract Management System (CMS) – System has been developed by the Ministry of
Infrastructure and Transport and supports in managing the works contracts awarded by the
Ministry. System has key features such as preparation of estimates for the work contracts,
capturing details of contracts and the contractors, monitoring the progress of the contracts,
receiving and approval of the bills from contractors and interfacing with e-PEMS for sharing
details of approved invoices. e-CMS development has been concluded recently and the
system is currently undergoing internal testing within the Ministry.
Through these modernization efforts over the years, the Government made some key
achievements in improving PFM processes, systems and institutional capacities. Some of
these achievements are as follows:
a.​ Critical functions in PFM are automated, which is supported in improving efficiency in
managing the public expenditure and revenue collections. IT systems are already in
place for budgeting, submission of monthly cash flow requirements and applying monthly
cash ceilings, processing public expenditure, revenue collections, payroll, public
procurement, inventory/asset management, debt management, contract management,
accounting and reporting etc.
b.​ A significant portion of public expenditure is currently processed and paid through
electronic payment channels with minimal dependency on cash payments, except for etc.
petty cash expenses and for expenditure needs in remote locations with minimal access
to ICT infrastructure for day-to-day expenditure needs. Cheque based payments have
been largely eliminated.
c.​ Approved payments are processed, and payment is released in near real time with
payment instructions sent to the bank every two minutes improving the speed in release
of payments.
d.​ Most of the revenue administration functions, including revenue collections, are
automated in the current environment.
e.​ Adopted Treasury Single Account (TSA) for revenue collections and public expenditure
with significant portion of public revenues pooled into treasury single account maintained
at Royal Monetary Authority (RMA) through intermediary accounts maintained in Bank of
Bhutan.
f.​ Established IT infrastructure and created good IT literacy in the finance cluster/section
staff across the country, which created a positive culture for adoption of new systems or
changes in existing IT systems.
These achievements are also complemented with a strong intent for further reforms and
modernization across the PFM lifecycle for addressing the gaps and challenges remaining in
the current environment.

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Challenges in the current ICT Systems in PFM

While several ICT systems have been introduced and most of the PFM functions have been
modernized by the Govt, certain critical gaps exist in the current environment leading to
initiation of steps for introduction of a new Integrated Financial Management Information
System (IFMIS) for the Government. Following summarizes the key gaps/challenges in the
current environment:
a.​ Existing IT systems, such as MYRB, e-PEMS etc., were developed in 2010 in Microsoft
.Net platform and system enhancements were undertaken over the years to add new
features to cater to the emerging needs of the Government for PFM. The architecture
and development approach for the systems has become redundant and adequate
documentation has not been created to support continuity in systems development and
maintenance.
b.​ While most of the PFM functions are currently automated, substantial scope exists for
process improvement and minimizing the administrative burden in managing the PFM
functions. Implementing such changes in the current environment would require
substantial enhancements to the existing systems.
c.​ Most of the PFM functions are carried out at the implementing agency level and the
current systems design and ICT enabled procedures do not include the implementing
agencies as a stakeholder/user in the business processes. This is leading to
implementing agencies relying on manual procedures and documentation for PFM. Such
manually processed and approved records are shared with the finance section/finance
cluster staff for recording the transactions in IT systems and their further processing for
release of payments to the payees. Such an environment is resulting in dependence on
manual procedures and IT enabled systems in parallel.
d.​ The integration of IT systems and automated data exchange among existing ICT
systems needs substantial improvement. Data exchange with the banking systems for
e-Payments is an exception, and most of the remaining data exchange among the
systems require manual interventions.
e.​ The ownership for maintenance and enhancements has been recently transferred from
MoF to the GovTech, an autonomous agency created by the Royal Government for ICT
systems development and maintenance across the Government. Lack of adequate
documentation and inadequate knowledge transfer to GovTech is posing constraints in
implementation of needed changes to the systems.
For addressing these critical challenges and for further improving the operational efficiencies
in managing the public finances, the Government has initiated implementation of a new
Integrated Financial Management Information System (IFMIS). The IFMIS Implementation
Partner (IIP) selected through this bidding document will support the Government in design,
development, implementation of the solution including its warranty and maintenance for the
duration defined in this bidding document.

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2.​ Overview of current ICT systems in PFM

This section provides an overview of existing ICT systems in PFM in the country. Several
initiatives have been undertaken for automation of PFM functions carried out by the
Government agencies. While such systems provided certain benefits in transaction recording
and reporting, the challenges in fragmented data, records and reporting in manual
operations continued with these systems due to parallel dependence on manual and IT
enabled operations for PFM in the Government.
IFMIS is envisaged to support RGoB in phasing out the existing disparate systems and in
implementation of a common, modern, integrated, accurate, reliable and secure information
system for PFM operations. The table below summarises the IT systems currently used by
the stakeholders for administration of PFM functions.
Table 2: Current ICT Systems for PFM

Existing IT
Brief Description
Systems

Electronic Public Electronic Public Expenditure Management System (e-PEMS) is

Expenditure supporting the government in processing all categories of public
Management expenditure and in e-payments to the recipients through interface
System with the IT systems in the Bank of Bhutan. e-PEMS also has payroll
(e-PEMS) module for generation of payroll for both regular and contractual staff
and for release of salary payments. e-PEMS has been rolled out to all
the Ministries, Dzongkhags, Gewogs, Judiciaries and autonomous
bodies across the country.
e-PEMS is a major stepping stone in modernization of Public
Financial Management in Bhutan. Following summarises the key
features supported by the e-PEMS system:
a.​ Upload budget data from MYRB to support in budget
execution for expenditure management.
b.​ Payee registration, including suppliers, employees, utility
service providers and other recipients for the public
expenditure.
c.​ Integration with the other Government IT systems (e.g. DRC
systems) and banking systems for validation of payee details.
d.​ Maintenance of bank accounts, their balances and
reconciliation, including maintenance of data on LC/PLC
accounts.
e.​ Preparation of Budget Release Forecast (BRF) and their
approval and loading LC/PLC accounts based on approved
BRF.
f.​ Preparation and approval of disbursement vouchers for all
categories of payments.
g.​ Interface with the banking systems and generation of
electronic payment instruction to the bank for release of
payments to the payees.

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Existing IT
Brief Description
Systems
h.​ Interface with the IT systems at DRC, Royal Civil Service
Commission (ZESt) and e-GP for updating and validation of
data for payees (e.g. suppliers, employees)
i.​ Capture details of employee pay structure and generation of
payroll and release of salary payments.
j.​ Accounting and reporting for public expenditure etc.
e-PEMS is a shared and centralized application and has supported in
successful adoption of electronic payments for most part of the public
expenditure.

Multi-Year The Multi-Year Rolling Budget (MYRB) system is supporting the

Rolling Budget Government agencies in submission of budget proposals, their
(MYRB) consolidation, review and approval of the budget by relevant
stakeholders and in transfer of approved budget to e-PEMS for
budget execution. MYRB also supports budget amendments
including supplementary budget allocations, reappropriations etc.
Key Features of the System:
a.​ Definition of budget calendar with specific milestones to be
achieved during each month in the budget cycle and the
responsibilities for such milestones.
b.​ Download data on programs, sub-programs, activities and
sub-activities (Annual Work Program) from the planning system.
c.​ Submit budget proposals for applicable sub-activities with needed
budget estimates for the budget year and two out years.
d.​ Submission, review and approval and consolidation of budget
proposals including their revisions based on reviews across the
levels in the Government.
e.​ Budget revisions including supplementary budget requests,
withdrawals, re-appropriations and transfers.
f.​ Month- closure for the budget.
g.​ Definition of master data and their values to support in
preparation of cost estimates for the line items in the budget
estimates
h.​ Interface with e-PEMS for uploading the approved budget data for
budget execution

FinDocs FinDocs system has been developed recently to support the field
offices in submission of softcopies for the supporting documents
needed for processing the disbursement vouchers. Such uploaded
documents are accessed by the staff in the Finance Section or the
Central Finance Cluster to verify their authenticity and completeness
for creation and processing the disbursement vouchers for
expenditure incurred by the agencies. The deposit voucher number
generated from e-PEMS is captured by the FS/CFC staff in FinDocs

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Existing IT
Brief Description
Systems
to tag the corresponding documents with the deposit voucher for
future reference.
Key Features of the System:
a.​ Upload the scanned supporting documents as needed for the
Finance Section or Central Finance Cluster staff to review the
bills submitted by the agencies and for creation of disbursement
vouchers for releasing payments for the expenditure
b.​ Minimize the need and dependency for the field offices to submit
the hard copies of the documents to the staff in finance
section/CFC for processing the bills and the disbursement
vouchers
c.​ Establish the link between the disbursement voucher in e-PEMS
with the documents in FinDocs based on the DV number
generated from e-PEMS, which is manually updated in FinDocs.
d.​ Minimize the cost overheads for the field offices in sending the
hard copies of the documents to the FC/CFC etc.

Following other IT systems are currently in use in PFM. However, the below systems will not
be replaced by the proposed IFMIS.
e-DATS (Electronic Daily Allowance & Travel System (e-DATS) – Supports in processing the
travel authorizations for the official travels of the staff in the government and is interfaced
with the e-PEMS for payments for advances and for settling the expenditure incurred during
such travels.
Meridian/ Commonwealth Secretariat Debt Recording Management System (CS-DRMS) – Is
in use for managing the public debt, particularly for the external debt. System supports
recording the details of debt instruments, accounting for funds received and repayments for
the external debt including generation of reports for debt monitoring and reporting.
The ICT systems for PFM are hosted in the Government data centre being managed by the
GovTech, an autonomous agency established by the Royal Government for providing ICT
systems and infrastructure planning, coordination, implementation and maintenance across
the Government in the country.
The government implemented several other IT systems for automation of other related
functions for PFM. Some of these systems have electronic data exchange mechanisms in
place with the core IT systems in PFM as referred to above.
IT systems at Department of Revenue and Customs (DRC) – DRC has implemented several
key systems for modernization of tax and customs administration and related revenue
collection. Key systems at DRC include (a) Revenue Administration Management
Information System (RAMIS) for collection of major taxes such as income tax, sales tax etc.,
(b) Property Tax System for administration and collection of property tax, (c) Electronic
Customs Management System (e-CMS) for administration and collection of customs duties
and taxes and (d) Bhutan Integrated Revenue Management System (BIRMS) for collection
of non-tax revenues. These systems are interfaced with the banking systems to support
online payments for tax and non-tax revenues.
E-Government Procurement (e-GP): e-GP system is supported in various public
procurement functions including creation of annual procurement plans, creation of tender

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documents through electronic bidding document creation facility in the system, publishing
bidding documents, receiving tenders/proposals, evaluation and award of contracts. e-GP is
also interfaced with MYRB and e-PEMS.
Government Inventory Management System (GIMS) – Supports recording details of assets
procure/constructed through public expenditure and tracking their allocation. GIMS is also
interfaced with the e-GP system currently.
ZESt System – The Royal Civil Service Commission has introduced the ZESt system, which
supports Human Resource Management for Government employees, for both regular and
contractual staff. The system supports recording details of staff, their qualifications,
designation, paygrade and structure, details of training and certifications, processing
payments for certain specific benefits extended to the employees etc.
Construction Management System (CMS) – System has been developed by the Ministry of
Infrastructure and Transport and supports in managing the works contracts awarded by the
Ministry. System has key features such as preparation of estimates for the work contracts,
capturing details of contracts and the contractors, monitoring the progress of the contracts,
receiving and approval of the bills from contractors and interfacing with e-PEMS for sharing
details of approved invoices. CMS development has been concluded recently and the
system is currently undergoing internal testing within the Ministry.

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3.​ Overview of IFMIS Scope and Functionality

This section summarizes the functional overview of the IFMIS for the RGoB including scope
of the system, functional architecture for IFMIS, key features of IFMIS and target users of the
system etc. The detailed functional requirements specifications for each of the proposed
functions are included in Annexure 1.
3.1.​ Scope of IFMIS
The RGoB intends to develop a new custom or bespoke software for modernization of the
Public Financial Management (PFM) in the country and to replace the existing IT systems
catering to various requirements in the PFM. The Intellectual Property Rights (IPR) for the
custom developed IFMIS software for Bhutan shall be exclusively with the RGoB.
The table below summarizes the overall scope of the proposed new custom/bespoke IFMIS
for RGoB. The IIP will be required to design, develop and implement the IFMIS solution
addressing the requirements from ‘a’ to ‘h’ as listed under scope of IFMIS in the table below.
Table 3: Scope of IFMIS including proposed system interfaces

Scope of IFMIS PFM functions out of scope for IFMIS

a.​ Budget Preparation a.​ Five Year National Planning (FYP)

b.​ Budget Management (revisions) b.​ Human Resource Management
c.​ Commitments Management c.​ Tax and Revenue Administration
d.​ Cash Management d.​ Debt Management
e.​ Expenditure Management e.​ Public Procurement
f.​ Payroll Management f.​ Asset Management
g.​ Revenue Accounting g.​ Audit Management
h.​ Accounting and Fiscal Reporting

System Interfaces for IFMIS

The interfaces shall be established between the IFMIS and the below systems to enable
necessary data exchange between the systems to enhance efficiency in performing the PFM
functions and in ensuring transaction integrity and completeness across PFM functions. IIP
shall be responsible for establishing such interfaces for IFMIS with all the systems referred
below.
Table 5: Interfacing IT systems for IFMIS

IT systems requiring interface with IFMIS

a.​ ZESt (RCSC) j.​ Electronic Daily Allowance and

b.​ RAMIS & BIRMS (DRC) TravelSystem (e-DATS)

c.​ Core banking system of Bank of k.​ FYP system of OCASC

Bhutan l.​ NPPF system (National Pension and
d.​ RMA IT System Provident Fund)

e.​ E-Government Procurement System m.​ Royal Insurance Corporation of Bhutan

(e-GP) n.​ National Housing Development Corporation
(NHDC)

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IT systems requiring interface with IFMIS

f.​ Construction Management System o.​ Bhutan Construction and Transport
(CMS) Authority (BCTA)
g.​ Government Inventory Management p.​ Dept of Civil Registration and Census
System (GIMS) (National ID validation)
h.​ Meridian (Debt Management q.​ Education Management Information System
System)
r.​ Government g-mail suite
i.​ Audit Information Management
System (AIMS) at RAA

3.2.​ Users of IFMIS

The following presents an overview of the end user agencies for the IFMIS.
a.​ Ministries: The Central Government has nine Ministries. Certain Ministries have finance
personnel within the Ministry Office. Certain Ministries also have regional and field offices
and the financial management requirements for such field/regional offices are catered to
by the Cluster Finance Services (CFS). Please refer to the point ‘d’ below for the details
on the role of CFS. The staff from the Government Ministries and the CFS will perform
relevant activities in IFMIS in line with their assigned role in the system.
b.​ Departments: Certain Ministries have their departments co-located under the same
building and have their physical offices set up in the same office compound of the
Ministry. However, for certain Ministries (e.g. Ministry of Finance), the Minister portfolio
office is inside the Dzong and its department offices (e.g. DTA, DPBP, DRC, DMFDF &
DPP) are located outside the Dzong. The Departments will have relevant staff as users
of IFMIS, in addition to the finance personnel in CFS supporting the departments in
processing financial management transactions.
c.​ Field Offices or Regional offices: The finance services for the field or the regional
offices of the Ministries are catered to by the Cluster Finance Services. In addition to
such staff in CFS, the relevant staff from the field and regional offices will also have
access to IFMIS to perform their assigned tasks in IFMIS.
d.​ Dzongkhag (districts, no: 20): Each dzongkhag has a Cluster Finance Service (CFS)
established within the office of the Dzongkhag headquarters.
The CFS caters to the financial management needs of all the regional offices, field
offices and the Gewog’s within the Dzongkhag. In addition to the CFS’s in each
Dzongkhag Headquarters or office, there are five additional CFS’s established to cater to

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the financial management requirements of other stakeholders. These five CFS’s are
physically located outside the offices of Dzongkhag’s.
e.​ Gewog’s (blocks, no: 205): Each Gewog has a physical office; however, finance
personnel are clustered under Dzongkhag/District Cluster Finance Services.
f.​ Municipal bodies (Thromde, no: 4): e-PEMS is currently in use at the Thromde’s for
their financial management needs and they will also have access to IFMIS once
implemented.
The IFMIS is estimated to have 1500 (max.) users from the Government. In addition to the
above, IFMIS end users will also include external stakeholders including
suppliers/contractors, representatives from the civil society requiring relevant information on
the public revenue and expenditure etc.
3.3.​ Overview of System Functionality
The diagrams in the following pages present a functional overview of the IFMIS outlining the
specific PFM functions to be supported by IFMIS and interfaces with other related
functions/systems of the Government.

Figure 1: functional overview of IFMIS

The diagram below presents the overall scope of IFMIS implementation including PFM
functions to be covered in IFMIS, the end users of the IFMIS system, connectivity options for
the users, and the systems with which necessary interfaces will be established to enable
data exchange with IFMIS. Please refer to table 5 for an exhaustive list of interfacing IT
systems for IFMIS.

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Figure 2: Functional Architecture for IFMIS

The following provides an overview of key functions to be supported by the IFMIS. Please
refer to Annexure 1 for a comprehensive list of functional requirements specifications for
IFMIS.
3.3.1.​ Creation of Master Data
Once IFMIS is implemented, the government agencies are envisaged to adopt the system in
a phased manner (Please refer to section 4 for phasing plan). It requires establishment of
common data sets for use across all the functions of the system and by all the users. IFMIS
shall support in creation and maintenance of master data as referred to in the Table below.
The list of requirements in table below on master data requirements are illustrative only and
the system should support in creation and maintenance of master data as required for all
functions and modules covered in IFMIS implementation. The system shall also support in
implementing necessary authorizations and controls to ensure that master data creation and
any further changes are approved by the designated personnel.
Table 4: Master Data Creation Requirements

S. Creation of Master Data

N

1.​ Budget classification codes

2.​ Chart of accounts

3.​ Government Ministries, agencies, agencies and SoEs

4.​ Local government bodies (Dzongkhags, Gewogs, Thromdes)

5.​ Third parties including Banks, donor agencies, creditors.

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S. Creation of Master Data

N

6.​ Locations (cities, districts, towns.)

7.​ Taxes, charges, duties and applicable rates

8.​ Source of funds/funding type

9.​ Program/Sub-Program/activities and sub-activities as included in the Five-Year Plan

(FYP)

10.​ Allowances, their mapping to employee grades and applicable rates etc

3.3.2.​ Budget Preparation

The budget preparation module shall support the stakeholders in capturing the
macro-economic assumptions governing the budget preparation and in initiation, processing
and completion of annual budgeting exercise. The budget preparation module shall enable
Department of Planning, Budget and Performance (DPBP) to initiate budget preparation
exercise (budget call and budget ceilings) and shall support agencies in preparation and
submission of medium-term budget proposals to the DPBP for their review and finalization
with the inputs from the Cabinet and the Parliament. The system shall support in capturing
the budget proposals at the field office level and in consolidation, revision and finalization of
budget proposals for the Ministries and further rolling up the Ministry budget proposals into
the national budget. The system should support necessary revisions to the budget estimates
based on reviews at various levels (Ministries, DPBP, Cabinet, Parliament etc.) for producing
approved appropriations. The outputs from budget preparation module (appropriations) shall
be transferred to the budget management module to support in preparation of annual
cash-flow projections for revenue and expenditure and in budget releases, reappropriations,
supplementary budgets etc. based on the needs of the agencies and as approved by the
concerned. System functionality for budget preparation shall include advanced features to
simplify and reduce the efforts of the agencies in preparation and finalization of the budget
proposals.
The table below captures the summary of transactions, which shall be supported by the
system for budget preparation.
Table 5: Envisaged IFMIS Features for Budget Preparation

S. Features to be provided by the system for Budget Preparation

N

Basic Features needed for budget preparation

1.​ Upload the five-year plan (FYP) data including programs, sub-programs, activities,
sub-activities, approved outlay at program, sector and Ministry/agency level, KPIs
and their targets including updating data in IFMIS based on changes to FYP data in
the national planning system.

2.​ Initiation of budget preparation exercise including definition of budget preparation

calendar, formats and ceilings for agencies.

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 Terms of Reference for IFMIS Implementation Partner (IIP)

S. Features to be provided by the system for Budget Preparation

N

3.​ Capturing the calendar of events for budget preparation exercise and monitoring
the compliance of the agencies to the prescribed schedule.

4.​ Categorization of budget heads into centrally estimated and agency estimated
budget heads and facility for agencies to review centrally estimated budget heads
and request for changes needed for the same

5.​ Preparation and finalization of budget proposals at agencies including consolidation

of budget proposals for Ministries based on the budget proposals of various
administrative units within the Ministries and agencies.

6.​ Aggregation of budget proposals from the Ministries and agencies and generation
of consolidated draft budget for National Government

7.​ Modifications to the draft budget proposal including version management (based on
changes made at different level of reviews)

8.​ Variance analysis of the budget proposals prepared by the agencies with the
ceilings at the agency and the whole of government level

9.​ Variance analysis with the previous year’s budgets and allocations

10.​ Generation of budget summary and draft budget appropriation bill

11.​ Capture feedback and supporting documents from cabinet and the parliament
during review and finalization of the budget

12.​ Printing of budget book

Advanced features needed for budget preparation

13.​ Auto-population of relevant forms/formats of the budget proposal based on the data
already existing in the system (actuals for the past year, estimates and actuals for
current year) and the data received from the other systems as referred in page 16.

14.​ Auto-computation of budget estimates for personal services components based on

the data from the ZESt system and relevant formulae for estimating such
expenditure items

15.​ Auto-computation of social and other benefits related budget for the benefits
provided by the Government to the citizens through maintenance of relevant master
data and data for the beneficiaries (e.g. student stipend)

16.​ Categorization of recurrent expenditure items to inflation indexed (Yes/No) and

preparation of draft budget for recurrent expenditure items based on past/current
year actuals and the inflation indexation parameters defined by the Government
(and configured in the system).

17.​ Interface with the contracts data master in expenditure management module and
auto-populate the budget requirements for ongoing projects and related contracts

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S. Features to be provided by the system for Budget Preparation

N

18.​ Support in centralized budget preparation for select budget items and their review
and finalization by the DPBP and the respective agencies

19.​ Auto-generate the debt servicing related budget estimates based on the data from
Meridian

20.​ Auto-generate the draft revenue estimates based on prior years revenue actuals
and the assumptions for revenue estimates configured for the budget year

21.​ Auto-adjustment of budget proposals for all the agencies based on the common
adjustments decided during review/budget finalization.

22.​ Data capture from users only once or from other existing data sources and
auto-population of relevant forms as may be needed at summary/aggregate level

Data inputs and outputs for Budget Preparation

The table below presents an overview of inputs into budget preparation module based on the
data available within IFMIS and related external systems and outputs from the budget
preparation function, which forms an input into other functions performed within IFMIS and to
the external systems.
Table 3: Data inputs and outputs for budget preparation function in IFMIS​

IFMIS Modules/
Data Exchange Requirements with Budget preparation
External Systems

The data on the five-year plan including the approved list of

programs, sub-programs, activities and sub-activities, approved
outlay at the sector, ministry, agencies, local government bodies,
National Planning
key performance indicators (outcomes and outputs and their
System (FYP)
targets) shall be uploaded into Budget preparation module to
enable respective agencies to prepare and submit the budget
estimates for their assigned programs and sub-programs.

The data existing in the system on the budgets and actuals for the
past years, budget estimates, revised estimates and actuals YTD
for the current year shall be auto populated in the budget proposal
Budget Management
for the budget year. Once the budget is prepared and approved, the
approved estimates are transferred to the budget management
module to support the commencement of budget execution.

Data on the ongoing capital expenditure (contracts) shall be auto

populated based on data for existing contracts /projects recorded in
Commitments & the system, which have payment milestones due for the budget
Expenditure year. Data on the ongoing projects, planned payments (schedules)
Management for the budget year, and other commitments data recorded in the
system shall form an input for auto-population of relevant data in
budget preparation module.

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 Terms of Reference for IFMIS Implementation Partner (IIP)

IFMIS Modules/
Data Exchange Requirements with Budget preparation
External Systems

Data on the receipts for the current (YTD) and the past years (as
Revenue Accounting base line) shall be auto populated into the relevant formats for
revenue estimates in the budget preparation module.

The data maintained in ZESt on the staff (both contractual and

regular) including the total number of positions for the government
ZESt
agencies, filled positions, their salary costs and benefits shall form
an input into the budget preparation exercise.

The data on debt servicing requirements for loans, government

securities and other liabilities as recorded in Meridian/CS-DRMS for
Meridian/CS-DRMS
the budget and outyears shall be auto-populated in the draft budget
proposal in the budget preparation module.

3.3.3.​ Budget Management

The IFMIS budget management module shall support recording the budget estimates
(General Appropriations) finalized in the budget preparation module and in commencement
of budget execution activities. The system shall support in maintaining the complete trail of
approved appropriations, allocations/releases, budget amendments and budget balances for
each agency, program/sub-program/ activity/ sub-activity level and at an aggregate level for
the whole of government. In case of delays in approval of the budgets, the budget
management function will also support recording interim appropriations (based on last year’s
appropriations or the estimates as determined by the government).

Table 6: Envisaged IFMIS Features for Budget Management

1.​ Recording/uploading general appropriations from the budget preparation module

2.​ Budget allocations and releases to the ministry’s/agencies/ operating units

3.​ Submission of budget amendment requests including (re-appropriations,

supplementary budgets, withdrawals and transfers) by agencies

4.​ Processing and approval of budget amendment requests

5.​ Maintain the data on updated/current version of budget appropriations

6.​ Share the data on the current version of budget appropriations, commitments, budget
balances etc. with other systems (e-GP etc.)

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 Terms of Reference for IFMIS Implementation Partner (IIP)

Data inputs and outputs for Budget Management

The table below presents an overview of inputs into the budget management module based
on the data available within IFMIS and related external systems and outputs from the budget
management module, which forms as an input into other functions performed within IFMIS
and to the external systems.
Table 4: Data inputs and outputs for budget preparation function in IFMIS​

IFMIS Modules/
Data Exchange Requirements with Budget preparation
External Systems

The approved version of the budget appropriations is transferred

Budget from the budget preparation module to the budget management
Preparation module to support the commencement of budget execution
activities.

The commitment management module shall refer to the updated

budget balances in the budget management module for initiation
and processing the fund commitment requests related to the
contracts and other expenditure categories earmarked for
Commitment
commitment of funds. Once the commitment requests are approved
Management
through the commitments management module, the corresponding
funds shall be blocked in the budget management module for
respective budget codes to disallow their utilization for any other
expenditure needs.

The data from the budget management module shall form the basis
for preparation/updating the annual and monthly cashflow flow
Cash Management
projections for the expenditure and revenues and in finalizing the
monthly cash ceilings for the respective agencies.

The data in the budget management module shall form the basis for
incurring the expenditure and for processing the payments for all
Expenditure expenditure categories. Based on the expenditure processed
Management through expenditure management module, the budget balances for
respective budget heads shall be kept updated and current in the
budget management module.

The data in the budget management module shall form the basis for
Revenue tracking the revenue collections progress with the budgeted
Accounting revenue estimates and in generation of reports for YTD revenue
collection performance in comparison with the revenue estimates.

The data from the budget management module shall form the basis
Accounting and for booking the expenditure and the revenue and in tracking the
Reporting expenditure and revenue progress in comparison with the budget
estimates and in performance gap/variance analysis.

National Planning Provide updated and current budget estimates data, either through
System, e-GP and on demand data access or data refresh, from IFMIS to other
Zest, CMS systems such as e-GP, and National Planning System to support in
Systems maintaining current budget balances data in respective systems.
Similarly, update the budget estimates and balances in IFMIS based
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 Terms of Reference for IFMIS Implementation Partner (IIP)

IFMIS Modules/
Data Exchange Requirements with Budget preparation
External Systems
on data received from external systems (e-GP for contractual
commitments, NPS for any changes in approved outlay, Zest for
any changes in employee data and related benefits.

3.3.4.​ Commitment Management

Commitment Management module in IFMIS shall support in managing the expenditure
controls more efficiently to minimize the expenditure arrears, and to forecast and manage
the cash resources efficiently. System shall support in specifying the expenditure heads that
require commitment of funds prior to incurring the expenditure, recording the commitments
for such expenditure heads, and in updating the budget balances under respective budget
heads based on recorded commitments. The commitments management function shall
support in managing the following categories of commitments:
a.​ In-Year commitments: Recording the commitments for expenditure expected to be
incurred within the year. Such examples include commitment for the contracts to be
issued and concluded within the year. Commitment of funds for such contracts shall be
performed prior to initiation of the contract (soft commitment, based on estimated value
of contract) and update such commitment values based on actual value of the contract.
For such commitment values, the budget balances should be updated to allow initiation
of procurement or signing the contracts within the remaining budget balances (net off
committed budget already).
b.​ Multi-year commitments: Recording the commitments in the system for multi-year
contracts including breakdown of contractual expenditure for each year in the contract.
For the approved multi-year commitments and signed contracts, the system shall support
populating budget estimates during preparation of budget estimates for the following
years and in the medium term.
System shall support in configuring commitment control requirements for each category or
sub-category of budget heads and in managing the commitment of funds and managing the
budget balances based on such configuration.
The table below captures the summary of transactions, which shall be supported by the
system for commitment management.
Table 7: Envisaged IFMIS Features for Commitment Management

S. Features to be provided by the system for Commitment Management

N

1.​ Configuration support for specifying the specific categories and sub-categories of
expenditure heads that require commitment of funds prior to incurring the
expenditure

2.​ Configuration support for specifying the levels of commitment (one or two stage
commitments) for each category of expenditure

3.​ Recording the commitments depending on the configuration in the system for
respective expenditure heads and in blocking the budget balances depending on
the committed expenditure

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 Terms of Reference for IFMIS Implementation Partner (IIP)

S. Features to be provided by the system for Commitment Management

N

4.​ Interfacing with other systems such as e-GP, CMS etc to enable two-way data
exchange in managing the commitments. For e-GP, IFMIS shall provide data on
commitments recorded in the system to enable initiation of the procurement or in
award of the contract in the system only for committed expenditure.

5.​ Update the budget and commitment balances in IFMIS based on values of
contracts awarded through the e-GP system and for the contracts recorded in CMS
by the Ministry of Infrastructure and Transport.

6.​ Recording multi-year commitments for the committed multi-year expenditure

requirements (e.g. multi-year contracts) and in preparation of annual and
medium-term budget ceilings and estimates considering the committed
expenditure.

7.​ Capturing the amendments to the commitments including their validation with the
budget balances and updating the budget balances based on revised
commitments

8.​ Ensuring expenditure for budget heads with corresponding commitments within the
committed expenditure values etc.

Data inputs and outputs for Commitment Management

The table below presents an overview of inputs into commitment management module
based on the data available within IFMIS and related external systems and outputs from the
commitment management function, which forms an input into other functions performed
within IFMIS and to the external systems.
Table 5: Data inputs and outputs for commitment management function in IFMIS​

IFMIS Modules/
Data Exchange Requirements with Budget preparation
External Systems

The updated budget balances from the budget management module

shall form the basis for recording or updating commitments. For
recording new commitments or for revising the existing, system shall
Budget verify the sufficiency of budget balances for respective budget heads,
Management failing which system shall restrict the users in recording and
approving the commitments. The budget balances in budget
management module shall also be revised based on the new or
revised commitments.

Recording new contracts or revising existing contracts data in the

expenditure management module shall be allowed only for if
corresponding commitments exist in the system. The value of
Expenditure contracts and related payments shall be restricted within the funds
Management committed for each contract. Any changes made to the contracts
(e.g. terminating the contract or amendment to the contract values
etc) shall be adjusted accordingly in commitments recorded for
respective budget codes.

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 Terms of Reference for IFMIS Implementation Partner (IIP)

IFMIS Modules/
Data Exchange Requirements with Budget preparation
External Systems

The commitment data shall form a key input for recording or revising
Cash Management the cashflow projections for the year and for the respective periods
during the year.

The data on contracts awarded shall result in automatic commitment

funds in IFMIS and initiation of new procurements/contracts through
e-GP for corresponding budget head shall be allowed only within the
available budget balances net off funds already committed for that
E-GP, CMS etc. budget head. Similarly, any contract recorded in CMS shall
automatically commit the funds in IFMIS for respective budget code
and recording any new contract in CMS shall be allowed only if
budget balance exist in the budget code net-off funds already
committed.

3.3.5.​ Cash Management

The Cash Management function in IFMIS shall support the Government in (i) effective
planning and management of cash resources to address the expenditure needs, (ii)
managing the cash surplus/deficit requirements to minimize the cost of borrowings and to
maximize the returns on the idle cash balances. The Cash management module shall
support in progressing from responding to the daily cash flow needs to proper planning and
managing the cash resources for improving the overall fiscal management for the
government. System shall support following key functions for the Government in cash
management:
a.​ Interfacing with respective modules within IFMIS and with other external systems to
obtain data on expenditure needs and revenue inflows to support in preparation and
management of cashflow projections at the whole of government level.
b.​ Preparation of annual, quarterly and monthly cashflow projections for revenues and
expenditure for agencies and the entire government
c.​ Approval of quarterly and monthly cash ceilings for the agencies.
d.​ Processing the release of payments for approved bills and invoices
e.​ Managing the data on bank accounts, their balances and daily reconciliation of bank
statements
f.​ Estimating the borrowing needs for various periods within the year with reasonable
accuracy etc.
The table below summarizes the key functions to be supported by Cash Management
function of IFMIS to support the asset management division in BTr in effectively performing
the cash management function.
Table 8: Envisaged IFMIS Features for Cash Management

S. Features to be provided by the system for Cash Management

N

Basic Features needed for Cash Management

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 Terms of Reference for IFMIS Implementation Partner (IIP)

S. Features to be provided by the system for Cash Management

N

1.​ Support agencies in preparation and finalization of draft cashflow plans and their
consolidation at Ministry level.

2.​ Central adjustments for cashflow projections by the DTA for all agencies

3.​ Finalizing the annual and quarterly cashflow projections and approval of cashflow
ceilings for each agency on a quarterly/monthly basis depending on the system
configuration for period (quarterly/monthly) for cashflow ceilings

4.​ Bank account data management including master data creation for banks, their
branches, bank accounts and mapping the respective accounts for corresponding
budget heads for receipts/payments

5.​ Generate payment instruction to the bank, with one to one or one to many
payments, including specific list of payees, their bank account information and
amounts to be transferred along with the summary of payment instruction (total
amount, total number of payees etc)

6.​ Receive daily electronic bank statements and reconcile the opening bank balance,
payment instructions issued during the day, closing balances and address any gaps
thereof.

7.​ Reconciliation of revenue collection data (summary) from revenue accounting

module with the funds received into the bank accounts daily

Advanced features needed for cash management

8.​ Configuration of budget heads and business logic/formulas for auto-generation of

cash flows (e.g. equal distribution, %’s from prior year data, formula-based
projections, data sources maintained in IFMIS/other systems etc)

9.​ Auto-generation of draft cashflow plans for agencies for expenditure and revenue
estimates as per predefined configuration for each budget head for auto-generation
of cash flows

10.​ Auto-generation of draft cashflow plans for debt based on predefined schedules of
receipts and debt servicing, as per data from meridian and other data captured in
IFMIS for other debt instruments

11.​ Auto-generation trends in cashflow projection requirements for expenditure with %’s
of total budget needed for each month and for each agency/ministry, variance from
prior year expenditure for the same period etc

12.​ Variance between cash-inflows, outflows, cash surplus/deficit for each period in the
year

13.​ Maintain queue or list of approved payments (bills) from stakeholders based on
First – In – First – Out Principle for release of payment instructions to the bank
based on cash available in the Bank and/or OD limits configured in the system.

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S. Features to be provided by the system for Cash Management

N

14.​ Facility to override the system generated payment queue with remarks for
overriding the queue, approvals in the workflow and related audit trail

The diagram below provides an overview of recommended (illustrative at this stage) IFMIS
functionality to support payments processing based on fund availability with the Government.
Figure 8: Illustrative model for release of payments for expenditure through cash
management

Data inputs and outputs for Cash Management

The table below presents an overview of inputs into cash management module based on the
data available within IFMIS and related external systems and outputs from the cash
management module, which forms as an input into other functions performed within IFMIS
and to the external systems.

IFMIS Modules/
Data Exchange Requirements with Budget preparation
External Systems

The data from the budget management module shall form the basis
Budget for key activities in cash management module including preparation
Management of cashflow requirements projections, their revision and for
processing the payments under various expenditure heads.

The commitments approved in the commitment management

module shall form input into preparation and revision of cash flow
Commitments projections for the agencies. Any revisions in commitments for
Management expenditure shall be approved based on validation with the
approved cashflow plans and quarterly/ monthly cash ceilings for
the agencies.

The data captured in expenditure management module, particularly

for the contracts and their payment schedules, shall form a key
input for preparation of cash flow projections and in finalization of
Expenditure
cash ceilings for the quarter/month. The approved cash ceilings for
Management
the quarter/month shall form the basis for processing the
expenditure and for approval of bills for payment for respective
month/quarter.

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 Terms of Reference for IFMIS Implementation Partner (IIP)

The reconciled revenue collections data from revenue accounting

module shall form the basis for tracking the performance of revenue
Revenue collections vis-à-vis the cash flow projections planned in cash
Accounting management module and for recalibrating the revenue inflows for
future periods based on revenue collection performance for the
YTD.

The receivables (from loans and grants) and the debt servicing
Meridian schedule data from Meridian will form a key input into generation of
cash flow projections for the expenditure.

The payment instructions shall be generated from the cash

management module to the RMA for fund transfer from TSA to BoB
account for downward release of payments from BoB to the payees
Banking Systems and in issuing payment instructions to the BoB with list of payees
at RMA and BoB and corresponding amounts for payment release through BoB. The
TSA cash balances data from RMA shall form input into generation
of payment advise to the RMA and to the BoB, including generation
of request for OD as applicable.

3.3.6.​ Expenditure Management

The expenditure management module in IFMIS shall support in processing expenditure and
payment instructions for all categories of public expenditure. Among the key changes to be
introduced by the IFMIS is in expenditure management function i.e. to extend the bill
creation and processing functionality to the staff in agencies minimizing the administrative
burden for the staff in Finance section/ central finance cluster in receiving the manually
processed bills and capturing such manual bills data into IFMIS. System shall support in
following key functions:
a.​ Recording the details of contracts/POs signed by the agencies including related payment
schedules
b.​ Recording and processing the invoices from suppliers/ contractors for
goods/works/services rendered to the agencies
c.​ Processing salary and other related payments and benefits for the staff
d.​ Processing the debt service repayments due for the period
e.​ Processing the payments for recurrent expenditure
f.​ Processing the payments fund transfers to local government bodies and SoEs
g.​ Integration with IT systems at banks (RMA and BoB) for release of payments through
Electronic Fund Transfer (EFT)
h.​ To support in application of necessary controls for bill processing and approval as
prescribed in the government rules
i.​ Capture supporting documents for bill processing etc.
Table 9: Envisaged IFMIS Features for Expenditure Management

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S. Features to be provided by the system for Expenditure Management

N

Payments Processing for Suppliers/Contractors

1.​ Registration of suppliers as payees

2.​ Recording purchase orders/ contracts and their payment schedules, including
interface with e-GP for receiving data on awarded contracts

3.​ Updating contracts data including variations to the contract values, payment
schedules

4.​ Supplier self-services functionality to allow e-submission (by supplier) of bills for
supply of goods/works/services and for agencies for recording bills received from
suppliers

5.​ Interface with CMS for receiving the data on bills approved in CMS for works
contracts and receiving Goods Received Notes (GRN) from GIMS

6.​ Processing of bills and authorizations for payment including reversal of payment
authorizations (if applicable) by agencies

7.​ Transfer data on approved bills for payment to the cash management module

8.​ Updating the budget, commitment and contract balances based on approved bills
for payment.

9.​ Revision of payment schedules for contracts for any delays in contracts execution

Employee Payroll/Benefits Payment Processing

10.​ Maintain data for government employees as needed for payroll generation including
interface with Zest for receiving changes to the pay components and the
employees.

11.​ Capturing business rules and formulae for auto-generation of monthly payroll

12.​ Support agencies in updating data for staff to support in payroll generation

13.​ Payroll generation and transfer of payment instructions to the cash management
module for transfer of salary payments

Debt Servicing

14.​ Recording debt servicing schedule for the financial year

15.​ Processing debt servicing transactions

16.​ Transfer payment instructions to the cash management module for releasing
payments to donors/creditors

Other key features

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 Terms of Reference for IFMIS Implementation Partner (IIP)

S. Features to be provided by the system for Expenditure Management

N

17.​ Capture billing information from utility service providers for all agencies across the
country and support in centralized payments for utility bills based on approved
budget for respective agencies

18.​ Data synchronization with cash management module to capture confirmations on

payments released to the payees

19.​ Support in processing release of funds for other categories of expenditure.

Data inputs and outputs for Expenditure Management

The table below presents an overview of inputs into expenditure management module based
on the data available within IFMIS and related external systems and outputs from the
expenditure management module, which forms as an input into other functions performed
within IFMIS and to the external systems.

Table 7: Data inputs and outputs for expenditure management function in IFMIS

IFMIS Modules/
Data Exchange Requirements with Budget preparation
External Systems

The data from the budget management module shall form the basis
for tracking the budget availability for processing and releasing the
Budget
payments for respective budget heads. The budget balances in the
Management
budget management module shall be updated based on approved
bills in the expenditure management module.

The data from the commitment management module shall form the
basis for processing the contractor and other related expenditure
Commitments categories with corresponding funds committed through the
Management commitment management module. The commitment balances shall
be updated based on approved bills in the expenditure management
module.

The list of approved bills/payment transactions shall be transferred to

the cash management module for processing release of payments to
Cash Management the payees. Payment transaction reference numbers from the cash
management module shall be shared with the expenditure
management module for further tracking purposes.

The debt servicing schedule data from Meridian will form an input into
Meridian the expenditure management module for processing the debt
servicing payments.

The data on employees, their pay components and related revisions

shall be transferred from Zest to the Expenditure management
ZESt
module to maintain master data for employees as needed for payroll
generation.

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 Terms of Reference for IFMIS Implementation Partner (IIP)

IFMIS Modules/
Data Exchange Requirements with Budget preparation
External Systems

CMS implemented by MoIT will support in receiving the bills from

contractors for work contracts and data on approved bills from CMS
will be received into IFMIS for processing and release of payments.
CMS and GIMS
Similarly, for goods received and accepted through GIMS, IFMIS will
receive GRN (Goods Receipt Note) to support in creating bills and
release of payments for such goods.

3.3.7.​ Revenue Accounting

Majority of the Government revenues are currently administered and collected by the DRC
through a network of the banking arrangements and the electronic payment facilities
provided to the taxpayers. DRC has established IT systems for revenue administration
including interface with the banking IT systems to receive data on daily collections and their
reconciliation with the receivables data in DRC IT systems.
While DRC IT systems will continue to support in tax administration and revenue collections,
including their reconciliation with the banks, IFMIS will support in revenue accounting at an
aggregate level to support in revenue reporting, cashflow forecasting and cash management
and in budgeting revenue estimates for the following years. IFMIS shall support in following
key functions for revenue accounting:
Table 10: Envisaged IFMIS Features for Receipts Management

S. Features to be provided by the system for Revenue Accounting Module

N

1.​ Maintain master data for all revenue heads, agencies collecting such revenues,
their collection channels etc

2.​ Interface with DRC IT system to receive data on daily receipts, at an aggregate
level, for each revenue category

3.​ Interface with banking system for receiving data on daily recollections for each
revenue category at an aggregate level

4.​ Reconciliation of revenue collection data at total revenue per day, revenue
collection per revenue head etc as reported by the DRC and the banks

5.​ Validation of reconciled revenue collection details between DRC and the banks with
the cash inflows as reflected in the bank statements

6.​ Support in recoding refundable deposits and other cash inflows (proceeds from
loans, grants from donors, dividends from SOEs etc)

7.​ Revenue reporting as per stakeholder needs etc.

Data inputs and outputs for Revenue Accounting

The table below presents an overview of inputs into the revenue accounting module based
on the data available within IFMIS and related external systems and outputs from the
revenue accounting module, which forms as an input into other functions performed within
IFMIS and to the external systems.

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Table 8: Data inputs and outputs for revenue accounting function in IFMIS​

IFMIS Modules/
Data Exchange Requirements with Budget preparation
External Systems

The banks assigned for collection of government tax receipts,

including RMA that will host TSA and collecting other receipts, shall
establish interface with IFMIS to share the data on the daily revenue
IT Systems at collections. Such data from banks shall include total receipts per
BoB, RMA and day for each revenue head and the overall revenue collections per
other banks day. In addition, the banks shall also share electronic bank
statement with the IFMIS, through cash management module, to
support in reconciling the total revenue collections data with the
cash inflows into the bank account of the Government.

DRC shall establish an interface with IFMIS to share the data on the
daily revenue collections. Such data from DRC shall include total
IT Systems at revenue collections per day for each revenue head and the overall
DRC revenue collections per day. Such data received from the banks
shall be reconciled with the revenue collections data received from
the bank (s) and the cash-receipts into the bank account.

The data on summary of daily revenue collections, per revenue

head, shall be shared with the cash management module to support
Cash Management in comparing the revenue collection performance with the planned
cash inflows, gap analysis and for planning decisions needed for
managing any cash surplus/deficit.

The data on receipts from the donors/creditors is recorded and

processed in IFMIS. Such data on receipts from donors/creditors is
also updated in the debt management systems to support in debt
Meridian
servicing planning, forecasting and analysis. Such receipts data
shall be shared between IFMIS and Meridian to ensure consistency
on donor receipts data across both the systems.

3.3.8.​ Debt Management

Debt management and debt servicing for external and domestic debt, except for T-Bills, are
managed by the Development Coordination and Debt Management Division (DCDMD) in the
Department of Macro-Fiscal and Development Finance (DMFDF), MoF. DCDMD has been
using CS-DRMS for debt recording and management for domestic and external debt and
currently is in transition to Meridian, a latest web-based version of debt recording and
management system from the Commonwealth Secretariat. The Department of Treasury and
Accounts (DTA) manages the debt servicing for T-Bills and the debt servicing data for T-Bills
is managed through the excel sheets and is not currently recorded in the Meridian. The debt
servicing activities are carried out by the Back Office (BO) in the DCDMD. The debt
servicing schedules are maintained in Meridian and are monitored by the back office for
initiation of repayments as per schedule.
In the context of IFMIS coverage for Debt Management, RGoB will continue to use the
existing systems (Meridian) to manage the debt portfolios for loans and government
securities including capturing details of all debt instruments, related repayment schedules,

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 Terms of Reference for IFMIS Implementation Partner (IIP)

changes to debt instruments data and to conduct debt sustainability analysis and reporting
etc.
While the existing systems are envisaged to support in the above debt management
functions, IFMIS is envisaged to support RGoB in (i) capturing necessary data from Meridian
to support in preparation of budget estimates, cashflow projections, recording the receipts
from donors/creditors (towards loans/grants/securities), processing the debt servicing
requirements for the interest and principal amounts etc.
The table below summarizes the key functions to be supported by the IFMIS for debt
management related operations.
Table 11: Envisaged IFMIS Features for Debt Management

S. Features to be provided by the system for Debt Management

N

1.​ Capturing the data of donors, creditors and debt instruments to support in recording
the receipts from donors/creditors, in processing the debt servicing requirements
etc.

2.​ Establishing interface with Meridian to capture and update (i) master data, (ii) debt
servicing requirements, (iii) receipts and repayment details

3.​ Capturing the schedule of receipts (loans, grants), debt servicing

requirements/schedule (principal and interest) for domestic and foreign debt,
including assumed and contingent liabilities, on a medium-term basis (three years
horizon) to support in preparation and updating budget estimates and cash flow
projections

4.​ Updating schedule of receipts and debt servicing based on changes to

implementation schedules of programs/projects

5.​ Commitment of funds for debt servicing based on the debt servicing schedule
updated and maintained in IFMIS

6.​ Updating the commitments data for debt servicing requirements data based on
changes to the debt servicing requirements

7.​ Recording and processing the loan/grant disbursement requests by the DCDMD

8.​ Recording the receipts from borrowings (loans/grants/securities)

9.​ Processing the debt servicing requirements and issuing payment instructions to the
bank (BoB/RMA)

10.​ Reconciliation of receipts (from government securities/loans/grants)/payments (debt

servicing) data updated in the system with the electronic bank statements received
from the bank and posting necessary adjustments.

3.3.9.​ Accounting and Reporting

The IFMIS shall support accounting and reporting requirements for Government of Bhutan in
line Finance and Accounting Manual of the Government. Government currently is following
cash basis accounting and intends to migrate to an accrual-based accounting in near future.

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 Terms of Reference for IFMIS Implementation Partner (IIP)

The design of GL and accounting framework in IFMIS shall support both cash basis and
accrual-based accounting and reporting.
3.3.10.​ Audit Management
IFMIS shall provide sufficient data to support the auditors of the Royal Audit Authority (RAA)
of RGoB in conducting the audit for financial transactions performed by the agencies. The
system shall support the implementation of necessary controls to ensure transaction integrity
across the lifecycle of transactions performed in the system. The RAA has established an
Audit Information Management System (AIMS) to support in managing the lifecycle of audits
and for capturing the audit observations and decisions from the audit. IFMIS shall include an
interface with the AIMS to support in tagging the specific transactions with audit observations
and for recording details of audit decisions for such transactions including data capture for
any audit recoveries from the employees or contractors or other related stakeholders.

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4.​ Implementation Approach for IFMIS

This section discusses the implementation approach for IFMIS including phasing
requirements for PFM functions and agencies to be covered in system implementation. The
project plan to be submitted by the bidders should take the implementation approach and
timelines indicated in this section into consideration.
4.1.​ Phasing Plan for implementation of PFM Functions in IFMIS
IFMIS system development for all the modules shall be performed in parallel and shall be
completed as per the timelines indicated in section 6. While system development for all the
modules is expected to be done in parallel, system adoption by the national government
agencies is planned in a phased manner.
Table 9: Proposed modules for IFMIS Phase 1 Launch

Scope of IFMIS System Interfaces

a.​ Budget Management a.​ ZEST (RCSC)

b.​ Commitments Management b.​ Bank of Bhutan IT System
c.​ Cash Management (Part 1) c.​ RMA IT System
d.​ Expenditure Management d.​ E-Government Procurement System (e-GP)
e.​ Payroll Management e.​ Construction Management System (CMS)
f.​ Accounting and Fiscal f.​ Government Inventory Management System
Reporting (GIMS)
g.​ Meridian (Debt Management System)

Table 10: Proposed modules for IFMIS Phase 2 Launch

Scope of IFMIS System Interfaces for IFMIS

a.​ Budget Preparation a.​ RAMIS (DRC)

b.​ Cash Management (Part 2) b.​ Audit Information Management System (AIMS) at
RAA
c.​ Revenue Accounting
d.​ Accounting and Fiscal
Reporting (Part 2)

Please refer to Table 5 for an exhaustive list of interfaces required for IFMIS with the other
systems in the Government. Apart from the interfaces listed in table 9, all other interfaces for
IFMIS shall be established in phase 2 of the project implementation.
4.2.​ Phasing of system implementation for Government Agencies
Rollout of new IFMIS for all the government agencies, despite extensive testing and quality
assurance procedures, could pose severe challenges in case of any unforeseen
developments during its implementation and rollout. It is also critical to pilot the system
functionality to verify the adequacy, comprehensiveness and the completeness of the system
prior to its rollout across the Government. Upon completion of the system stabilisation period
successfully and addressing the gaps identified during this stage, the system shall be rolled
out to all the users across the Government. Following summarises the proposed approach
for rollout of IFMIS for the stakeholders:

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a.​ The e-PEMS system is currently utilized by the Finance staff across the Ministries,
Districts, Thromde’s, Judiciary bodies, Defence, Medical services, Embassies, missions
and consulates. The total number of such users include approx. 600.
b.​ IFMIS phase 1 functionality shall be launched for all the existing users at the same time.
Upon successful system testing, certification and training of the end users (600), MoF,
RGoB shall provide system access to all such users with the test data for trial run of the
system for 4-6 weeks. During such a period, the system shall be provided with the test
data to the users for familiarizing them with the system functionality and to perform test
transactions in the system to verify system functionality. During such a period, apart from
the end user training, the end users shall be provided with the user manuals and the
videos for guiding the users in utilizing the system functionality. Issues reported by the
users during such trial runs shall be addressed before the cut-off date for production
go-live of the system.
c.​ Prior to the cut-off date for production go-live of the system, data migration activities shall
be completed for migrating the required data to IFMIS including migration of necessary
transaction records from e-PEMS and MYRB as required for IFMIS go live.
d.​ For the data that does not exist in the current environment (e-PEMS, MYRB), specific
user ids should be provided to all the agencies during the trial run for capturing the data
needed for IFMIS (e.g. data on contracts, their current balances etc which is currently not
available in e-PEMS). During the trial run phase, agencies should be provided with two
categories of user ids. One for the test and trail run purposes and other for capturing the
data needed for the production instance of IFMIS. For the data digitized by the end users
during this phase, as needed for the production environment, the system implementation
partner shall perform data quality assessment and shall provide necessary reports
(online in IFMIS) for the agencies to address the gaps in the digitized data.
e.​ Prior to the production go-live, necessary reports shall be made available for the
agencies to verify the data in the IFMIS production instance with the data/records in
e-PEMS, MYRB or in other systems or manual records. Each agency should provide a
sign-off upon review and certification of the reports available in the system and any gaps
in the data shall be addressed by the agency in collaboration with the central support
team established for IFMIS.
f.​ Upon Production go-live, e-PEMS shall be decommissioned and shall be kept as a
standby for use for any major unforeseen issues with the IFMIS. During this phase,
necessary data exchange mechanisms shall be implemented between IFMIS and
e-PEMS by the IFMIS implementation partner to update e-PEMS database daily to
support in switchover to e-PEMS for any unforeseen conditions.
g.​ Upon successful production usage and stabilization of the system for a minimum three to
four months and upon resolving issues and blockers in the system functionality, the
RGoB shall initiate measures for rolling out the system functionality to the end users in
the Ministries and agencies. Such end users in the Ministries and agencies shall include
the staff in the HR section, users currently involved in approval of transactions which
result in financial aspects (e.g. approval of contracts, approval of bills, preparation of
payroll, updating the data for staff which impact the payroll etc). Such users currently are
not provided access to e-PEMS and they are performing the financial management
transactions through manual procedures. Post IFMIS implementation, it is envisaged to
eliminate or reduce the manual procedures at the agencies resulting in automation of
PFM procedures from the transaction initiation at source till completion of the transaction.
During this phase, system access shall also be made available to the external users
such as suppliers or contractors to enable them in online submission of bills/invoices for
their contracts.

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h.​ Depending on the system implementation progress and stabilization, the phase 2
modules of IFMIS (e.g. budget preparation) shall be launched in time for initiation of
budget preparation for the following financial year. Phase 2 modules shall be launched
upon successful system stabilization for phase 1 modules.
i.​ Following summarizes the proposed phasing plan for IFMIS rollout for the agencies:
a.​ System testing and certification by the designated user group from the IFMIS
including technical testing and certification by GovTech or agency designated for
this purpose.
b.​ Extend system access to the existing e-PEMS users for trial run/test transactions
for 4-6 weeks along with system support for digitizing the data needed for IFMIS
that is currently not available in e-PEMS, MYRB or other IT systems
c.​ Resolution of issues in trial run, data migration and production go-live of phase 1
functionality for all existing e-PEMS users at the same time.
d.​ Production system stabilization for 3-4 months, resolution of any issues in
production go-live and system stabilization
e.​ Launch system access to other users in the Government agencies for capturing all
financial transactions in IFMIS at source including system launch for external users
(e.g. suppliers)
f.​ Launch phase 2 modules upon successful launch of phase 1 functionality and in the
interim continue the use of MYRB for budget preparation related activities.

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5.​ Scope of Work for the Service Provider

The implementation approach and plan for IFMIS shall ensure project economy and
sustainability as crucial factors throughout the project lifecycle. After a careful evaluation of
specific goods and services required for IFMIS, certain activities during the project
implementation lifecycle are carved out for designating the national firms/resources for
undertaking such activities and to blend such firm (s)/resources with the IFMIS
implementation partner selected through this procurement to ensure handholding such
national resources and to build their capacity from the inception of the project
implementation.
The table below summarizes the specific responsibilities proposed for the IFMIS
Implementation Partner (IIP) and the activities earmarked for the national firm (s) and
resources. Such national firm (s)/resources shall be onboarded by the Government through
separate contracts. In addition, all the bidders are encouraged to partner with the local firms
to incorporate the national experts/resources, as appropriate, into their team structure.
However, the overall responsibility for delivering the activities listed in the table below and
the other activities and deliverables designated for the IIP shall rest solely with the IIP.
Table 12: Key Roles & Responsibilities of IFMIS Implementation Partner

National
IFMIS Services and Goods Requirements IIP Firm/​
Resources
Project Management for system development and
✓
maintenance
Establish development, test and training instance needed for
✓
the system
System design & development ✓
Provide system software needed for IFMIS for development
✓
and test instances
Sizing of infrastructure and system software required for the
✓
production instance
System testing ✓
Development of system technical documentation ✓
Development of user and training manuals ✓
Development of end user training videos in the local language
✓
and English
Conduct the Train the Trainer programs ✓
End user training ✓
Data migration ✓
System integration with other systems ✓
System implementation & go-live support ✓
Stakeholder awareness building and sensitization ✓
Level 1 Helpdesk ✓

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 Terms of Reference for IFMIS Implementation Partner (IIP)

National
IFMIS Services and Goods Requirements IIP Firm/​
Resources
Level 2 and Level 3 support for system maintenance and issue
✓
resolution
Software change management and enhancements ✓
Train the designated national personnel on technical
maintenance of the system including on application stack,
✓
development, enhancements, source code and technical
documentation

This section provides the scope of work for the IFMIS Implementation Partner (IIP) during
the lifecycle of the project. In summary, the scope of services to be provided by the IIP
includes following:
Table 13: Summary of Scope of Work for the IIP

Scope of Work Coverage

IFMIS Implementation a.​ Design, development and implementation of application

Requirements software
b.​ IT Infrastructure sizing for IFMIS
c.​ Capacity Building for IFMIS
d.​ Data Migration

IFMIS Support Services a.​ Warranty and Maintenance Support of Application and
Requirements System Software

5.1.​ IFMIS Implementation Requirements

This section discusses the scope of services to be provided by the IIP during the
implementation phase of IFMIS.
5.1.1.​ Design, development and implementation of application software
The table below includes the scope of work for IIP for design and implementation of
application and system software for IFMIS.
Table 14: Detailed scope of work for IIP for IFMIS design and development

Milestone Scope of work for IIP

Activity #1: Bidder must include in their Bids a Preliminary Project Plan
containing sufficient details on work breakdown structure,
Project Planning
sequencing and time frame for every activity for implementation
phase of IFMIS. The plan must include the proposed staffing
plan including numbers, roles, and responsibilities of team
members. The plan must have a practical phasing of the IFMIS
design, development, testing, implementation and roll out
including project milestones and performance indicators that
may be used to monitor progress, and specific deliverables to
be submitted to the RGoB. The plan must also include:

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Milestone Scope of work for IIP

●​ the project management tool to be used (project
management software or other tool(s)).
●​ project communication plan
●​ project schedule, by item and start and end dates.
●​ risk management plan.
●​ work breakdown structure.
●​ schedule of project review etc.
The preliminary plan submitted in the bid shall be further
strengthened and finalized by the IIP upon commencement of
the engagement. The IIP need to submit a comprehensive
project plan and project management approach to RGoB within
four weeks from signing the agreement for the project based on
discussions with the RGoB.

Outputs at this activity:

1.​ Detailed project plan
2.​ Project management approach document

Activity #2: For the functional scope of IFMIS, the IIP shall perform the
following key activities:
Systems Requirement
Study for IFMIS ●​ Detailed as-is process study including review of existing
acts and regulations of RGoB, stakeholder consultations for
understanding the detailed business processes, conducting
management interviews and workshops for identification of
key issues and challenges in the current environment,
validation of as-is study outputs and observations and
finalization of as-is study report. The IIP shall be provided
with the recent reports available on current processes and
related assessment. However, IIP is responsible for
conducting its comprehensive study to ensure
completeness of requirements gathering and design for
IFMIS.
●​ Detailed assessment of current business processes
adopted by the stakeholders for PFM functions covered
under IFMIS, to identify the redundant, non-value-added
activities and other critical areas which are impacting the
operational effectiveness and performance of Government
of Bhutan.
●​ Detailed assessment of current forms and formats used by
the stakeholders for performing the PFM functions and
transactions proposed to be covered under IFMIS to
identify the redundant and unused information captured
currently and to identify the redundant forms/formats used
in current environment
●​ Reengineering the business processes, using the best
practices-based business process reengineering (BPR)
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Milestone Scope of work for IIP

principles and guidelines, to eliminate the process
deficiencies identified during the as-is process assessment
●​ Application of best practices for Government financial
management and administration in reengineering the
business processes of PFM stakeholders
●​ Reengineering the application forms used by PFM
stakeholders to eliminate the redundant and unused
information captured now and to eliminate the redundant
forms/formats as applicable
●​ Conducting the workshops to present the recommendations
on to-be processes and to-be forms/ formats recommended
for PFM stakeholders
●​ Preparation of to-be process maps based on the
reengineered business processes and inputs gathered
during the validation workshops
●​ Study the system integration/ interfacing requirements to
and from IFMIS with the other related ICT systems
implemented within and outside RGoB and finalization of
system integration requirements in consensus with RGoB.
●​ Finalization of target operating model, to-be report and
sign-off from RGoB on the to-be report.
IIP shall ensure that its team has experts in public finance
including fiscal planning, budgeting, treasury and cash
management operations, expenditure and receipts
management, debt management, accounting, auditing and
reporting for providing best practice inputs in to-be process
design.
It is to be noted that RGoB may deploy an independent team of
experts (both internal and external) who will work in close
coordination with IIP in identification of process improvement
opportunities and IIP shall take cognizance of such
recommendations from the RGoB team in finalizing the to-be
processes and system requirements.

Outputs at this activity:

3.​ As-Is study report for functions and services related to Government financial
management including the gaps and challenges identified in the current environment
covering processes and forms of RGoB.
4.​ Workshops for As-Is validation and to-be process validation
5.​ To-be report detailing the recommendations on reengineering the current business
processes, forms and formats, to-be process (including IT enabled process points)
maps for identified functions and services, functional requirements etc.

Activity #3: ●​ During the functional design, the IIP shall perform the
functional prototyping, including the user interface design
System Design for IFMIS
and workflows, using a prototyping tool for every screen in

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Milestone Scope of work for IIP

the system and such prototype shall be presented for
validation and signed-off by the Government. The
prototyping shall be performed by a well-recognized tool
that should enable intuitive UI/UX design for the screens for
all the processes included in the scope of IFMIS. Such a
prototype should also support workflow-based transition for
the transactions to provide near real application experience
for the functional team designated by the Government for
providing sign-off on the system design.
●​ Preparation of system requirements specifications for
IFMIS based on the signed-off to-be process report (in case
of bespoke development approach for IFMIS) and the
approved prototypes.
●​ Obtaining sign-off on the requirements specifications
report/gap analysis report and the prototypes from the
RGoB.
●​ Perform detailed system design for IFMIS. The system
architecture, design and development for IFMIS shall be
based on micro-services-based architecture.
●​ Consultations with RGoB on SDD report, incorporate the
feedback and finalization of the SDD report.
●​ All the deliverables submitted by the IIP shall also include
editable version of all artefacts.

Outputs at this activity:

6.​ System Requirements Specifications for IFMIS based on the approved to-be process
report including system integration/interfacing requirements
7.​ System Design Document (SDD) for IFMIS

Activity #5: ●​ IFMIS shall be hosted in the Government data and the
disaster recovery centres. The network and security
IT Infrastructure sizing
infrastructure required for IFMIS shall be provided by the
for IFMIS
RGoB through the existing shared infrastructure in the data
centre and DR site. However, exclusive server and storage
infrastructure shall be implemented for the IFMIS collocated
in the data centre and the DR sites of RGoB.
●​ Upon completion of detailed system requirements study,
system architecture and design for IFMIS, the IIP shall
undertake IT infrastructure sizing for the production and DR
instance for IFMIS. IIP shall submit a detailed IT
infrastructure assessment report for IFMIS capturing the
recommended specifications for server and data storage
infrastructure and related system software requirements for
IFMIS. Such a report shall include a comprehensive bill of
material and specifications for the server and storage
infrastructure, related system software including

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 Terms of Reference for IFMIS Implementation Partner (IIP)

Milestone Scope of work for IIP

assumptions and justification for the recommended
infrastructure.
●​ IIP shall ensure that the recommended specifications are
OEM neutral and shall also support RGoB in responding to
any clarifications sought by the bidders on the BOM and
specifications during procurement of IT infrastructure for
IFMIS.

Outputs at this activity:

8.​ IT Infrastructure Requirements Report for IFMIS

Activity #4: ●​ The IIP shall provide necessary hardware and system
software as needed for development of the software as per
System Development
signed-off System Requirements Specifications. For
development of IFMIS, the IIP shall adopt open-source
tools and technologies, to the extent feasible, for
components such as workflow engine, business rules
management, user activity logging (audit tracking), user
authentication and access control management etc. The
development approach should minimize the hard coding
and shall leverage configurable tools to minimize the
development effort during the IFMIS development and
maintenance. The tools proposed for IFMIS shall have an
established track record in similar environments and should
have sustainable support arrangements for the foreseeable
future.
●​ The IIP shall perform the development of the proposed
solution based on the functional, system requirement
specifications and designs finalized for the IFMIS.
●​ The IIP shall also supply and implement a source code
management tool, which shall be handed over to the RGoB
post implementation of IFMIS.
●​ The IPR for the custom developed IFMIS software for
Bhutan shall be exclusively with the RGoB.
●​ The source code shall include configuration level changes
related to various modules

Outputs at this activity:

9.​ Development of solution for the IFMIS
10.​Source code and other related outputs/artefacts for the software

Activity #5: ●​ The IIP shall design the software testing strategy including
traceability matrix, test cases and conduct testing of various
Software Testing
components of the software developed for IFMIS project.
The software testing shall include full system testing
including functional (e.g. unit, integration testing) and

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Milestone Scope of work for IIP

non-functional (e.g. integration, performance, security and
stress testing) etc.
●​ The IIP shall obtain the sign-off from RGoB on the testing
approach and plan. The IIP shall perform the testing of the
solution based on the approved test plan, document the
results and shall fix the issues identified during the testing.
●​ The IIP shall arrange to deploy necessary infrastructure
and tools for conducting testing including integration,
performance, security and stress testing and shall also
provide outputs of such tools to RGoB for verification
purposes.
●​ Similarly, the IIP shall supply and implement necessary
tools for tracking the bugs/issues/gaps identified during the
testing. The tools to be utilized by IIP should be included as
part of its proposal/bid and shall ensure that such proposed
tools have established track record in similar conditions.
●​ Though RGoB is required to provide formal approval for the
test plan, it is the ultimate responsibility of IIP to ensure that
the product delivered by IIP meets all the requirements of
the IFMIS signed-off with the RGoB.
●​ The responsibility of testing the system lies with IIP. RGoB
may also engage a third-party quality assurance service
provider to perform independent verification and validation
of solution delivered by the IIP to assess the solution
across various dimensions such as functionality, security,
scalability, integration performance etc. The acceptance
testing by the RGoB, or any third party identified by the
RGoB is for ensuring that systems provided by IIP meets
the IFMIS requirements.
●​ IIP shall provide and ensure all the necessary support to
the RGoB or any third party in conducting the acceptance
testing including providing access to system, sharing
necessary project documentation, testing strategy, test
cases developed for the IFMIS, test results, action taken
report on issues identified during testing and relevant
corrective actions taken etc., including access to the test
instance established by the IIP for the IFMIS.
●​ IIP shall address all the gaps identified during the
acceptance testing, which will be revalidated by the third
party/ RGoB. IIP shall deliver an error free solution upon
addressing all the identified gaps and shall submit an action
taken report for the issues reported during UAT.

Outputs at this activity:

11.​Test strategy, test plans, test cases
12.​Test results for testing carried out by IIP

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Milestone Scope of work for IIP

13.​Action Taken report on issues identified during the acceptance testing and relevant
corrective actions.
14.​Fully tested, error free version of the software for IFMIS including updated source code
and related artefacts for an error free version of the application software for IFMIS

Activity #8: ●​ The IIP shall prepare/update the documents including that
of as-is and to-be reports, functional requirements
Documentation
specifications, systems requirement specifications, system
design documents, test cases and results, technical and
administration manuals, operations/maintenance manual
etc. as per applicable standards.
●​ The IIP shall obtain the sign-off from RGoB for all the
documents submitted for IFMIS and shall make necessary
changes as recommended by RGoB before submitting the
final version of the documents.
●​ During the entire lifecycle of the project, IIP shall ensure
that the project documents are kept up to date.

Activity #9: ●​ IIP is required to perform all the necessary tasks to

implement IFMIS and to make the system ready for
Implementation of IFMIS
commencement of system usage by the users covered in
trial run and in phase 1 and phase 2 of the system
implementation.
●​ The IT infrastructure solution provider shall provide the
installed infrastructure up to the operating system level
including supply of all other system software as required for
production and DR instances. IIP shall be responsible for
installation and configuration of all other components,
system software and application software for the production
and DR instance of IFMIS. Installation of data backup
management solution shall be the responsibility of the IT
infrastructure solution provider in coordination with the IIP.
●​ During the trail run, IIP shall support in extending the
system access to the existing e-PEMS users for trial
run/test transactions for 4-6 weeks along with system
support for digitizing the data needed for IFMIS that is
currently not available in e-PEMS, MYRB or other IT
systems. IIP shall provide necessary support to ensure that
the system is available for all the users during the trial run
phase and all the issues highlighted by the end users are
addressed in a timely manner. For the data digitized by the
users during the trial run phase, as needed for the
production environment, shall be migrated by the IIP into
the production environment after necessary data validation
and testing.

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Milestone Scope of work for IIP

●​ For creation of system users and their profiles and roles in
the system, IIP shall provide excel based templates for the
agencies to provide the details of users, their
roles/privileges needed in the IFMIS, applicable workflow
etc... and based on such data received from the agencies,
IIP shall configure the workflow for such users in the
system.
●​ The system shall be declared as ‘Live’ upon completion of
the trial run phase, upon migration of all the data needed
for production use and upon completion of all activities
needed for production launch successfully. The operations
and maintenance phase for IFMIS shall commence upon
RGoB declaring the IFMIS system as ‘live’ through a formal
document issued from the Government to the IIP. The
Government will not use the system in the production
environment for its financial management functions without
issuing the ‘Go-Live’ certificate to the IIP.
●​ Upon go-live, the system shall be utilized by the existing
e-PEMS users for 3-4 months (system stabilization period).
IIP shall be responsible for resolving all the issues identified
during the system stabilization period. Any system
enhancements or functionality change requests submitted
by the users shall be handled through the software change
management procedures agreed between RGoB and the
IIP.
●​ Upon successful completion of the system stabilization
phase and upon resolution of critical issues identified during
the system stabilization phase, IFMIS access shall be
extended to the users in the Ministries, Departments,
Agencies, suppliers etc. (system rollout).
●​ IIP shall prepare a detailed plan for rollout of the System, in
consultation with RGoB, for all other agencies. The plan
shall address sequencing of the agencies for rollout,
activities and timelines, roles and responsibilities etc.
●​ During rollout, IIP shall be responsible for the following
minimum activities:
a.​ Preparation of necessary templates and documents to
obtain information required from the agencies to
support in system rollout for respective agencies
b.​ Conduct workshops and system walkthrough for select
staff from the agencies on system functionality and
migration strategy (including details needed as per
prepared templates)
c.​ Coordinate with the agencies for obtaining the filled-up
templates with the data required for system
configuration for respective agencies

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Milestone Scope of work for IIP

d.​ System configuration and workflow customization
based on requirements provided by the agencies
e.​ Configuration of users and authorizations
f.​ Data migration for agencies covered in rollout phase
g.​ IIP shall be responsible for addressing any issues or
gaps identified by the agencies during the rollout phase
●​ While the system development activities may be carried out
by the IIP in the interim, the phase 2 modules shall be
launched for the end users only upon successful
stabilization of phase 1 modules. Approach discussed in
this document for phase 1 modules shall also be followed
for phase 2 modules and the responsibilities for IIP remain
the same for both the phases.

Outputs at this activity:

15.​System go-live for Phase 1 and Phase 2
16.​IFMIS Rollout Strategy
17.​Templates needed for obtaining information from agencies for system rollout
18.​System configuration and implementation for agencies covered in rollout phase
19.​Workshops on system rollout for staff identified for support in system rollout
20.​System rollout for agencies covered in rollout phase including system rollout completion
report for each agency
21.​Issue Log and Action Taken Report

5.1.2.​ Capacity Building for the Stakeholders

This section discusses the scope of services to be provided by IIP for building necessary
capacities in the stakeholders during the project implementation lifecycle to support in
usage, operations and maintenance of IFMIS application software and associated IT
infrastructure for development, test and training instances. The table below lists the training
programs for development and delivery by the IIP.
Table 15: List of training programs in scope for IIP.

S.
Training Course
N

1.​ Power User/ Functional Training on IFMIS Application and its functions

2.​ Technical training on IFMIS application software

3.​ Training of Trainers Program for IFMIS Functionality and Usage for each category
of users

4.​ Information Security Management for IFMIS Software

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 Terms of Reference for IFMIS Implementation Partner (IIP)

S.
Training Course
N

5.​ DB Administration

In addition to the above training programs, the designated staff from the Government shall
work along with the maintenance and support staff of IIP deployed for IFMIS. IIP shall
continue the capacity building and handholding activities for such designated staff to enable
them to take over maintenance and support for IFMIS upon conclusion of the contract for IIP.
The training programs and related activities from IIP shall ensure that necessary skills are
imparted to the designated staff to enable them in taking over maintenance and support
functions post conclusion of IIP’s contract. For technical training programs (e.g. [Link] 2, 4
and 5 in the table above), IIP shall plan building the capacity of RGoB staff in a phased
manner through a series of training programs in such areas.
The table below discusses the broad coverage of training programs courses to be conducted
by IIP.
Table 16: Coverage of training courses

S.
Training Program Brief Overview
N

1.​ Power User/ RGoB will create a Core Functional Team for each module to
Functional Training be implemented under IFMIS, which shall be responsible for
on IFMIS coordinating with IIP during requirements study, finalization of
Application and its functional requirements, system design, system development,
functions system implementation, training and post go-live support. IIP
shall be responsible for complete knowledge transfer on
respective modules of IFMIS to core functional team and shall
conduct training program covering following minimum areas:
a.​ Features and functionality of the module
b.​ Business process and workflows
c.​ Configuration and implementation of the module
d.​ Inputs to and outputs from module
e.​ Implementation of the module including necessary
configuration as applicable for the module
f.​ Creation of users, workflows, allocation of user
rights/authorizations
g.​ Creation and generation of reports
h.​ Managing the interfaces relevant for the module etc.

2.​ Technical training Similar to the core functional team, RGoB will identify a core
on IFMIS technical team (IFMIS Technical Team) for the software, which
application software will focus and coordinate with IIP on the technical aspects
(non-functional) of the system such as application installation,
configuration, administration etc.

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S.
Training Program Brief Overview
N
The technical training program on IFMIS software should
focus on building necessary capacities for the IFMIS technical
team and should cover following minimum areas:
a.​ Technical features and specifications of the product
b.​ Installation of the product and related tools/services
c.​ Configuration of the system and related tools
d.​ Administration of the system including performance
management, security management etc.
e.​ Data management and system backup/restore operations
f.​ User administration including creation of users, allocation
of user rights etc.

3.​ Train the Trainer The user base for IFMIS will be in the few thousands and it
Program for IFMIS will be difficult for IIP or the core functional team to undertake
Functionality and training programs for all the users. Considering this, a team of
Usage trainers will be identified from the agency who shall be
provided with detailed training on IFMIS and its functionality.
Such trainers (who participated in the Training of Trainer
Program) will plan and conduct training sessions for the users
in respective agencies.
Train the Trainer programs shall be conducted for each
module/function covered under IFMIS implementation and
each program shall cover the following minimum areas:
a.​ Scope of system implementation for respective functions
b.​ Key changes made to the current business processes
c.​ Business processes implemented in the system for
respective function (to-be processes)
d.​ Process flows, transactions, system features
e.​ Generation of reports
f.​ Do’s and don’ts in the system
g.​ How to plan and conduct the training programs for their
agencies etc.
The participants should be provided by IIP with the standard
training material, user manuals, training manuals, handouts
etc to support in conducting the training programs for the staff
in their agencies.
Training program and content for train the trainer programs
shall be customized for each category of stakeholder based
on their specific role and transactions that will be performed in
IFMIS.

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S.
Training Program Brief Overview
N

4.​ Information Security This training program shall be conducted for the technical
Management for team identified by RGoB for coordinating with IIP on
IFMIS Software operations and maintenance of IFMIS software and shall
cover the following minimum areas:
a.​ Information Security risks for IFMIS
b.​ Approach for information security management
c.​ Security and controls management in IFMIS
d.​ Standard measures for addressing information security
risks
e.​ SOPs for addressing risks
f.​ Need for security audit, scope and timing of the audit
g.​ Continuous monitoring and management of information
security etc.

5.​ DB Administration The training program on DB administration shall be conducted

by the IIP for the team identified by RGoB for coordination
with IIP on database installation, configuration, maintenance
and related support operations. The training program shall
focus on following minimum areas:
a.​ Installation
b.​ Configuration
c.​ Database creation and database management
d.​ DB design and data model implemented for IFMIS
e.​ Performance monitoring and management
f.​ Security management
g.​ Scalability and availability management
h.​ Data backup, restoration and related operations etc.

Following summarizes the responsibilities of IIP and RGoB on infrastructure and logistics
requirements for conducting the training programs.

RGoB RGoB shall be responsible for providing the following infrastructure and logistics
support for training programs:
●​ Training venue and facility
●​ Training infrastructure including projector, screen, flip charts, workstations for
training participants and other supporting material needed for the program
●​ Transportation, boarding and lodging facilities for the participants
●​ Food and snacks during the training program

IIP IIP shall be responsible for providing the following infrastructure and logistics
support for training programs:
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●​ Training instance including server, application and system software with fully
loaded software and tools to facilitate in training program. Such system shall
support in conducting at 4-5 training programs in parallel without any
performance and availability issues and IIP shall accordingly design and
implement the training instance to address this requirement
●​ Development of training material and providing training material in soft and
hard copies (except for the end user training programs, which shall be
developed by the RGoB) for the participants for training programs conducted
by IIP.
●​ All the training programs shall be conducted in either Thimphu or in Paro
locations in the country. Accordingly, the cost for conducting the training
programs by the IIP shall take this into consideration as no additional costs
shall be paid for conducting the training programs in regions.
●​ Transportation, boarding and lodging expenses for trainers
●​ Each training program shall be conducted by at least two experienced
trainers.

[Link].​ Scope of work and deliverables for IIP for Conducting Capacity Building
Programs
The table below presents the scope of services related training programs to be conducted by
IIP for IFMIS.
Table 17: Scope of Services related to training requirements for IFMIS

Scope of work Description

Activity #1 The list of training programs and their broad coverage is provided in
the earlier pages. During the implementation phase, the IIP shall
Preparation of
prepare a detailed training plan including training program, detailed
Training Plan for
training curriculum, delivery methods, schedules and locations for
IFMIS
training, roles and responsibilities for conducting the training
programs covering training requirements across the project phases.
The training instructors proposed and deployed by the IIP should
have relevant experience in their specific areas.

Deliverables:
1.​ Training Plan for IFMIS

Activity #2 The training programs shall be developed and conducted in the

English Language. All training programs shall be instructor led and
Development of
following minimum training material shall be provided by IIP for each
Training Material
participant in the training program:
●​ Course content in hardcopy and softcopy
●​ Participant handouts/handbook
For train the trainer programs, in addition to the above material, IIP is
required to provide following additional material to the participants:

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Scope of work Description

●​ Trainer handbook, detailing the guidance and instructions on
conducting respective programs.
All the training material developed by IIP shall be made available for
registered and authorized users in the IFMIS portal.

Deliverables:
2.​ Training material for IFMIS for training programs within the scope of IIP

Activity #3 IIP shall be responsible for conducting the training programs

mentioned in the earlier pages across the project implementation
Conduct training
lifecycle. IIP may be asked to conduct additional programs for each
programs
training course as per emerging needs of the project.
For each training program conducted by IIP, a training completion
report shall be prepared and submitted to RGoB covering the details
and schedule of training program, list of participants, findings from
training program etc.
Based on the initial training programs conducted by IIP and feedback
received from the participants, the training material shall be updated
and submitted by IIP to RGoB addressing the feedback/concerns
identified by the participants, if any.

Deliverables:
3.​ Training completion report for each training program
4.​ Updated Training Material

Activity #4 IIP shall provide clarifications support on a continuous basis for

training programs conducted by the trainers from train the trainer
Clarifications
programs. Such support may cover providing necessary clarifications
support during
to the trainers on course content, coverage, functional and technical
rollout of training
aspects delivered through the training course etc.
programs

Deliverables:
5.​ Clarifications and advisory support for rollout of training programs

5.1.3.​ Data Migration

This section discusses the scope of work for IIP for data digitization and migration for IFMIS.
Table 18: Data migration requirements for IFMIS

Scope of work Description

Activity #1 Based on the approved SRS, IIP shall undertake an assessment of

data digitization requirements for each module and shall prepare a
Development of
data digitization and migration strategy capturing the specific data
Data Digitization
elements needed for IFMIS, data quality criteria for data elements
required for IFMIS, source data for each data element, data

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Scope of work Description

and Migration conversion and migration plan, roles and responsibilities of
Strategy stakeholders etc.

Deliverables:
1.​ Data digitization and migration strategy

Activity #2 For the data, which need to be digitized for IFMIS, the IIP is required
to provide necessary templates for RGoB for providing such data by
Development of
the agencies. The templates shall be developed in MS Excel or
templates for data
similar tools to enable the agencies to provide the data, and such
preparation
templates shall include inbuilt controls to ensure that complete and
appropriate data is captured by the agencies.
For the data available in the existing information systems, IIP shall
design and develop the system procedures for data mapping,
conversion and migration from existing systems to the IFMIS.

Deliverables:
2.​ Templates for preparation of data by the government agencies
3.​ System procedures for migration of data from existing systems to the IFMIS

Activity #3 For data to be digitized for IFMIS, the IIP shall coordinate with the
respective resources identified by the agencies for obtaining the
Coordinate with
filled-up templates for data. IIP shall prepare and submit status
agencies for
reports to RGoB on submission of filled up data formats by the
obtaining data
agencies. Any delays in receiving the filled-up data formats shall be
escalated by the IIP to RGoB in a timely manner through status and
escalation reports.

Deliverables:
4.​ Status Reports
5.​ Escalation Reports for delays in receipt of filled up data formats

Activity #4 For the filled-up data formats provided by the agencies, the IIP shall
perform data quality assessment using necessary tools and scripts
Data Quality
to validate the digitized data against the defined data quality criteria
Assessment and
for respective modules. IIP shall prepare/generate a report on
Reports
data/records not complying with the defined data quality criteria and
shall submit the same to the respective agency for corrections.

Deliverables:
6.​ Data Quality Assessment Reports

Activity #5 Upon completion of data quality assessment and necessary

corrections in data by respective agencies, the IIP shall perform data
Data Migration
migration to the IFMIS. The data migration activity performed by IIP
shall ensure that the data is migrated completely and accurately. The
IIP shall design and implement necessary validation checks and
controls to ensure that migrated data is accurate and complete in

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Scope of work Description

comparison to the data provided by respective agencies. Based on
the data migration activities completed for each agency, the IIP will
be required to submit status reports on data migration for each
agency.

Deliverables:
7.​ Migration of updated and corrected data into IFMIS
8.​ Data migration status reports

5.2.​ IFMIS Support Services Requirements

The IIP shall provide warranty, operations and maintenance services for IFMIS solution
including application and system software provided by the IIP for a period of three years
from commencement of trial run for the IFMIS. Such support services shall commence from
the system launch for trial run for phase 1 for thirty six months or three years.. The scope of
warranty, maintenance and support services will expand based on the progress with
implementation and rollout of IFMIS.
The warranty and support for IT infrastructure provided by the IIP for the development, test
and training instances shall commence from the date of implementation of such
infrastructure and shall be valid until the end of the contract period.
The IIP should have a back-to-back arrangement with the OEMs (for all software, hardware
components and any other items supplied by IIP during the contract period) for warranties
for the entire contract period. Such agreement with all OEMs shall be transferred by the IIP
to the RGoB in the event of any extreme and unforeseen circumstances, such as the
withdrawal or termination of IIP contract from the project at any time after implementation, for
any reason whatsoever. Bidders are required to submit the documentation related to such
warranty with OEMs in their bid documents.
The level 1 helpdesk support shall be provided by the national resources (individuals or the
entity) engaged by the RGoB. Level 1 helpdesk staff shall be the first point of contact for the
users of the IFMIS through email, call or the online requests submitted to the helpdesk.
RGoB shall establish the IT infrastructure required for the helpdesk staff including the
helpdesk management system, computers, printers, local area network and access to the
IFMIS and the helpdesk management system. The nature of support services provided by
the level 1 helpdesk team will include:
a.​ Clarifications to the users on the system functionality
b.​ User administration including creation of users and changes to the user profiles and
privileges in the system as per the standard operating procedures established for this
purpose
c.​ Master data management, through the front end, including creation of new master
data or implementing amendments to the master data.
d.​ Recording the technical issues and functional enhancements/changes requested by
the end users and coordination with the IIP staff for their resolution.
All other issues, apart from the above category of issues, shall be addressed by the IIP as
part of warranty and maintenance support for IFMIS. Access to the helpdesk management
system shall be provided to the designated IIP staff for addressing level 2 and level 3 issues
reported by the users. Access to the helpdesk management system shall also be provided to

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the users to facilitate in reporting the issues related to IFMIS, which requires support from
helpdesk or IIP support team.
5.2.1.​ Warranty and Maintenance Support of Application and System Software
(IFMIS Support Services)
The IFMIS support services from IIP shall include, but not limited to, ensuring defect free
operation of the IFMIS, monitoring the application software, database and related
components for their uptime, performance and security incidents, troubleshooting and
addressing the functionality, availability and performance issues, implementing proactive
measures for minimizing any system downtime or performance degradation and
implementing the system change requests. The IIP shall ensure upkeep of the IFMIs in good
working order; perform changes and upgrades to applications as requested by the RGoB.
The IIP shall be responsible for addressing all the defects identified by the users during the
support period. The following outlines the scope for such IFMIS support services.
Table 19: Scope of support services for IFMIS

Requirement Scope

Compliance to Any upgrades/ changes to the software shall be planned accordingly

SLA by IIP for ensuring the SLA requirements.

Application The IIP shall address all the errors/bugs/gaps in the functionality
Software offered by IFMIS solution (vis-à-vis the FRS, SRS and System
Maintenance Design signed off for IFMIS) at no additional cost during the
maintenance period.
IIP shall implement necessary tools for monitoring the IFMIS
application software, database and related system components
availability, performance, security etc and address any issues
identified in the system.
RGoB shall formally communicate in writing for software changes
(functional enhancements or changes to the system functionality
agreed during the SRS sign-off stage) from time to time. Based on
such requests from RGoB, the IIP shall undertake requirements and
impact analysis, assess the efforts and timelines required for
implementation of proposed change and shall submit a formal
change request to RGoB capturing the required resources, timelines
and total man-month inputs required for implementation of the
change request. The effort estimates provided by IIP for change
request will be reviewed and finalized by RGoB in consultation with
IIP.
Based on agreed total man-month inputs required for the change
request and the blended man-month cost quoted by IIP in its
commercial proposal for software change management, the total cost
for implementation of change request shall be agreed and signed-off
between RGoB and IIP. Payment for change requests shall be made
by RGoB upon successful implementation of the change request by
the IIP and conclusion of user acceptance testing successfully by
RGoB and deployment of system enhancement on the production
environment successfully.

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Requirement Scope

Database Performance management of the database systems implemented for

Management IFMIS including continuous monitoring of the performance of the
system, ensuring system performance in line with the defined SLA
and undertaking necessary maintenance activities needed to ensure
uptime and performance of the IFMIS.

Problem Identification and resolution of application problems (e.g. system

identification and malfunctions, performance problems and data corruption etc.)
Resolution

Maintain Maintain version control and configuration information for application

configuration software and any system documentation.
information

Maintain System Maintain and update documentation of the software system. Ensure
documentation that:
a.​ Source code for the system is updated and documented at
regular intervals. (Compliance: The source code shall comply
with the attached documents, which will be subjected to change:
( Software Delivery Standards [DRAFT] )
b.​ Functional specifications for system changes/enhancements are
documented.
c.​ Application documentation is updated to reflect on-going
maintenance and enhancements including FRS and SRS/ To Be
report, in accordance with the defined standards.
d.​ User manuals and training manuals are updated to reflect
on-going changes/enhancements.
e.​ Standard practices are adopted and followed in respect of
version control and management.

[Link].​ Transition Management

a.​ At the end of the contract period or during the contract period, if any other agency is
identified or selected by RGoB for providing Operations and Maintenance Services for
IFMIS application, IIP selected through this bid is required to provide necessary
handholding and transition support to the complete satisfaction of the RGoB.
b.​ The ownership of the assets (including soft and hard components existing and procured
through this tender), at any point of time during the contract or expiry of the contract,
shall rest with the RGoB.
c.​ During the contract period, IIP shall ensure that all the documentation including policies,
procedures, asset registers, configuration documents etc. are kept up to date and all
such documentation is handed over to the RGoB during the exit management process.

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6.​ Implementation and Payment Schedule for IFMIS

This section includes the implementation and payment schedules for IFMIS projects.
6.1.​ Implementation Schedule for IFMIS
The table below presents the implementation schedule for IFMIS. The timelines for
completion, as referred in the table below, are the number of months within which the activity
or milestone should be completed by IIP. ‘T’ referred to in the table below indicates the date
of signing the Contract. ‘PM’ as referred to in the table below indicates payment milestones.
Table 20: IFMIS implementation schedule and deliverables

Timelines for
S. N Milestone Deliverables from IIP
completion

1.​ Signing the 1.​ Signed agreement. T

agreement and
2.​ Submission of Performance bank
commencement of
guarantee
services

2.​ Submission of 3.​ Detailed project plan T+1

detailed project
4.​ Project management approach document
plan (PM1)

3.​ Completion of 5.​ As-Is study report for functions and T+3
process design for services for Phase 1
IFMIS for Phase 1
6.​ To-be report detailing the
recommendations for reengineering the
current business processes, forms and
formats, to-be process maps
7.​ Workshops for As-Is validation and to-be
process validation

4.​ Sign-off on As-Is Updated Reports for deliverables listed in S. T+4

and To-Be No 3 above based on feedback provided by
Reports for IFMIS RGoB during review
(PM2)

5.​ Completion of 8.​ Prototypes for UI/UX for Phase 1 T+6

System Design for processes
IFMIS for phase 1
9.​ System Requirements Specifications for
IFMIS based on the approved to-be
process report including system
integration/interfacing requirements.
10.​System Architecture & Design Document
(SDD) for IFMIS
11.​Training Plan for IFMIS
12.​Data digitization and migration strategy
13.​IT Infrastructure sizing report for
Production and DR instance

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Timelines for
S. N Milestone Deliverables from IIP
completion

6.​ Installation of 14.​IT Infrastructure delivery & installation T+6

development and report for development, test and training
test instances for instances
IFMIS (PM3)

7.​ Sign-off on 15.​Updated Reports for deliverables listed T+8

System Design for above based on feedback provided by
IFMIS (PM 4) RGoB during review.
16.​Test strategy, test plans, test cases
17.​Templates for preparation of data by the
government agencies

8.​ Completion of 18.​Design and development of solution T + 15

System proposed for IFMIS (developed IFMIS
Development and solution submitted for UAT)
provide system for
19.​Test results for testing carried out by IIP
third party
acceptance 20.​Preliminary review report from RGoB to
testing and QA for verify whether the delivered system
Phase 1 modules. covers all the processes as signed off for
phase 1 (prior to acceptance of system
(PM5)
for UAT)

9.​ Submission of None (Deliverables for this milestone shall T + 17

third party and be responsibility of RGoB and is dependent
user acceptance on conformance of IIP’s performance against
testing reports for the above-mentioned activities and
IFMIS milestones).

10.​ Addressing the 21.​Action Taken reports on issues identified T + 19

gaps identified in during the acceptance testing and
Third party audit relevant corrective actions

11.​ Data Quality 22.​Status Reports (multiple during data T + 17

Assessment and receipt and migration stages)
Data Migration
23.​Escalation Reports for delays in receipt
of filled up data formats
24.​Data Quality Assessment Reports
(multiple during data receipt and
migration stages)
25.​Migration of updated and corrected data
into IFMIS
26.​Data migration status reports (multiple
during data receipt and migration stages)

12.​ Operational 27.​Fully tested, error free version of the T + 19

acceptance of software for IFMIS (including systems

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Timelines for
S. N Milestone Deliverables from IIP
completion
IFMIS for Phase 1 and sub-systems along with source
Modules (PM6) Code, library files, DLL’s, Setup
programs, Documentation etc.)

13.​ IFMIS Launch for 28.​System Launch for trial phase T + 19

Trail Phase

14.​ System 29.​Updated reports for the deliverables T+ 21

Stabilization listed above based on issues identified
and resolved during system stabilization
period and submitted to RGoB.
30.​Issue Log and Action Taken Report

15.​ IFMIS Go-Live for 31.​Updated reports for the deliverables T+ 21

Phase 1 (PM 7) listed above based on issues identified
and resolved during system stabilization
period and submitted to RGoB.
32.​Go-Live Certificate from RGoB
33.​Issue Log and Action Taken Report

16.​ Warranty, 34.​Warranty and AMC for the products Starting from
Maintenance and deployed by the IIP for IFMIS Go-live of
Support Services IFMIS Phase 1
35.​Post Implementation Support for IFMIS
for Phase 1 and to last until
application software and supporting
end of the
system components including issue
contract.
resolution, bug fixing etc.
36.​Performance Monitoring Reports for the
IFMIS Solution
37.​Updated system design documents,
specifications
38.​Updated source code, application
deployment files, configuration files for
entire solution
39.​Updated user manuals, administration
manuals, training manuals etc
40.​Software change logs etc

17.​ Sign-off on As-Is 41.​Same outputs as applicable for process T + 12 Months

and To-Be and functional design for Phase 1
Reports for IFMIS modules
Phase 2 (PM 8)

18.​ Completion of 42.​Same outputs as applicable for system T + 15 Months

System Design for design for phase for Phase 1 modules
Phase 2 Modules
(PM 9)

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Timelines for
S. N Milestone Deliverables from IIP
completion

19.​ Completion of 43.​Same outputs as applicable for system T + 24 Months

Development for development phase for Phase 1 modules
Phase 2 modules
(PM 10)

20.​ Completion of 44.​Same outputs as applicable for T + 26 Months

Acceptance acceptance testing and certification for
Testing and Phase 1 modules
Certification of
application
software (Phase
2) (PM 11)

21.​ Go-Live for Phase 45.​Same outputs as applicable for go-live T + 28 Months
2 Modules (PM for Phase 1 modules
12)

Key Notes for above Table:

a.​ “Go-live” is the date on which the proposed IFMIS solution is completely operational as
per the requirements specifications signed-off between the RGoB and IIP and all the
acceptance tests are successfully concluded to the satisfaction of RGoB.
b.​ It is to be noted that upon completion of Go-live and at the end of each quarter of
operations and maintenance support, IIP is required to submit all the updated system
design documents, specifications, source code, application deployment files, user
manuals, administration manuals, software change logs and all other applicable
deliverables as listed in this section and payment of fees related to these mile stones is
subject to receipt of such deliverables.
c.​ All the documents/manuals as referred to above shall be kept up to date by IIP based on
the changes to the system functionality performed during the contract period. The
revision history shall be maintained by IIP for all such changes. It may be noted that the
timeline for each milestone shown in the table above will be enforced independently,
even though some of them are inter-dependent. This will have the cascading effect of
penalties for delays in all other milestones dependent on the precedent milestone. Hence
IIP will have to be extremely careful in establishing an excellent project management
set-up.
d.​ The payment during O and M phase is also subject to successful demonstration of SLA
measurement process/reports for the SLA’s indicated in annex 2.
6.2.​ Payment Milestones
The table below details the proposed payment schedule for IFMIS project during the project
lifecycle. The % of Payment indicated in the table below is the % of the total cost towards
application software design, development, implementation, IT infrastructure supply and
implementation for development, test and training instances, and data migration related
services, including all the project expenditure excluding warranty, operations and
maintenance support for IFMIS.

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For claiming the payment associated with each payment milestone, the IIP shall complete all
the necessary activities, submit related deliverables and obtain the sign-off from the
stakeholders for completion of the activities and deliverables due up to such payment
milestone.
Table 21: Payment Schedule for IFMIS Application Software and IT Infrastructure

Payment Timelines for

% of
Milestone Milestone completion
payment
Ref (Months)

Signing the agreement, submission of

performance bank guarantee, commencement
PM 1 T+1 5%
of services and submission and acceptance of
detailed project plan

Completion of Functional Design (To-Be

PM 2 T+4 5%
design) for Phase 1

Installation of development and test instances

PM 3 T+6 2.5 %
for IFMIS

PM 4 Completion of System Design for Phase 1 T+8 5%

Completion of application development and

PM 5 T + 15 10%
provide system for UAT for Phase 1

PM 6 Operational acceptance of IFMIS for Phase 1 T + 19 12.5%

PM 7 Go-live of IFMIS for Phase 1 T + 21 15%

Completion of Functional Design (To-Be

PM 8 T + 12 5%
design) for Phase 2

PM 9 Completion of System Design for Phase 2 T + 15 5%

Completion of development and provide

PM 10 system for third party acceptance testing and T + 24 10%
QA for Phase 2

PM 11 Operational acceptance of IFMIS for Phase 2 T + 26 15%

PM 12 Go-live of IFMIS for Phase 2 T + 28 10%

For any delays in achieving the milestones above, for the reasons attributable to the IIP,
RGoB may levy a penalty up to 5% of the fee applicable for the milestone for each week of
the delay. Any foreseen delays which are discussed, documented and approved by the
RGoB may be exempted from the penalties.
For warranty, operations and maintenance services, the payment shall be made on a
quarterly basis, at the end of the quarter, subject to compliance with the service level
agreement.

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