Comprehensive Financial Management System (CFMS) is an enterprise level application, being designed, developed and implemented by Andhra Pradesh Centre for Financial Systems and Services (APCFSS) on behalf of the Finance Department, on the SAP S4 HANA platform. The broad outcomes envisaged from the implementation of the CFMS project include a ‘Single Source of Truth’ across the Enterprise (i.e. the State) accessible by all the stakeholders of the system, real time information availability,facilitate agility in decision making, speed and certainty of service delivery, convenience to all the Stakeholders, minimal reconciliations and improved financial discipline in the State.

“Comprehensive Financial Management System (CFMS) vision is to establish an enterprise-wide Financial Management System that enhances efficiency in financial transactions, effectiveness in control, transparency in operations, accountability at all levels, sustainability in the long run and to all stakeholders.”

The Key Objectives of CFMS are:

• Enterprise wide approach implies that the CFMS solution would be based on aholistic approach breaking the departmental barriers/ information silos tofacilitate informed decision making considering the comprehensive view ofstate of affairs.
• Effectiveness is doing the RIGHT things and in the context of the CFMS solutionit connotes result-orientation, prioritization and optimum resource utilization,control and monitoring, timeliness and policy support.
• Efficiency is doing things RIGHT and in the context of the CFMS solution itconnotes speed, accuracy, consistency and reliability, minimum manualinterface and return on investment
• Accountability refers to stakeholders taking ownership for their actions anddecisions across the value chain.
• Transparency refers to timely and accurate dissemination and disclosure ofinformation, data and decision process to the concerned stakeholders.
• Stakeholder convenience implies that the stakeholders (ministries,departments, auditors, employees, pensioners, citizens, suppliers, contractors,parties, etc.) perceive benefits in using the system.
• Sustainability of the system in the long and short term.

SCOPE

Based on the envisaged vision and objectives, the overall scope is classified into 7 broad key process areas (KPAs) - Budget Management, Revenue Management, Expenditure Management, Debt & Investment Management; Human Resources Management and Ways &Means Management. Based on this classification, high level and granular level objectives and sub-objectives identified in each of these KPAs are:

1. Improved capability of Planning and Budget Management through acollaborative approach between various divisions of the FD and other Stategovernment departments ensuring reduced budget preparation and distributioncycle time with the latest of current year’s data being considered to project forthe next year; availability of real time decision support system for budgetarycontrol and monitoring; reduction in repetitive and unproductive work includingreduction in use of paper; and control on over drawls/ fraudulent drawls.
2. Improved Revenue Management by developing a seamless system of capturingand monitoring (at an enterprise wide level) revenue targets, collections/refunds and realization on a real time basis enabling greater control overmisclassification and strengthening revenue collection mechanism byintroducing easier means of payments (e-receipts) to Government, widespreadreach and minimal reconciliation by ensuring single source of information.
3. Improved Expenditure Management that would include:
   • Real-time monitoring of all the payments with monthly/ quarterly/annual budgets;
   • 100% budget control without causing any hardship to stakeholders;
   • Single source of truth with respect to expenditure;
   • Reduction of paper/ manual work;
   • Greater control over misclassification;
   • Workflow automation with a provision to monitor physical target withfinancial progress;
   • Allocation of responsibility of expenditure control at the department level;
   • Streamlined flow of bills ensuring evenly distributedwork load across all periods;
   • Reduced tedium/ hardships in presentation/ realization of bills at the DDO level;
   • Focused pre-audit on large expenditure; and
   • Advanced authentication procedures using Adhaar based Bio-metrics and digital signature services;
   • Adequate system of monitoring of PD accounts
4. Improved Accounts Management that would include:
   • Single source of information meeting analytical requirements of all thestakeholders;
   • FD to have all possible information on State Accounts from its ownsources;
   • Minimal reconciliations amongst AG, Treasuries, State Government Departments., Banks etc.;
   • Real time availability of accounts – ensuring speedy finalization ofmonthly and annual accounts;
   • Exception / risk based audit and inspections and monitoring of draftaudit paras enabling timely and effective audit;
   • Reduction of paper/ manual work; and
   • Making available employee related debit and credit information throughmultiple delivery channels
5. Improved Debt and Investment Management that would enable availability ofcomplete information on a real time basis on debt, loans, investment andguarantees outstanding at the State/ Department/ subordinate offices and PSElevel including complete life cycle management of debt/ loans, guarantees andinvestments.
6. Improved Human Resources Management that would allow real time view into the employees of various categories and facilitate their hire to retire life cycle event management; pension management and processing of payroll.
7. Improved Ways & Means Management that would include real time decisionsupport mechanism to key functionaries of the FD including a system enablingcash flow projections and management mechanism and minimal/ timelyreconciliations.