[kictanet] ICT Authority, not Treasury, should oversee IFMIS

Thu Jan 19 11:33:02 EAT 2017

@Daktari Siganga,
I was the ICT Director for our university for 5yrs and managed both the University Network &  ERP - but I dont say :-)
We switch between the classroom and ICT operations like that. So I kinda have both the academic and practical view of these things  
Anyway, you are right in that the IT expert(Superuser) should NOT  be a normal  'Finance' /'HR'/Procurement/ or other regualr user of the ERP.  However, the IT guys still assign these roles and privileges to the various functional users. i.e. they must grant rights to the Finance/HR/ and other Directors to execute their work within the ERP.
Different implementations (company policy) maybe that this is delegated to the various functional heads who can then subsequently grant privileges/access rights down through their departments.  
But this is NOT ideal since you lose the segregation of duties where you want the Functional heads(e.g. Finance Director) to make the access-rights requests IN WRITING, and have SOMEONE ELSE implement that request.
This is the 'control' auditors are looking for when auditing the information system later on - in terms of checks and balances. Such a control is what leads to the questions like:-a) Who within the ERP system has privileges that were not formally requested for in writing? Or b) Who within the ERP system has more privileges than what was formally requested for? c) Who within the ERP exists but has no supporting access request from the Functional head?d) etc, etc.
Even if the IT expert abused his/her superuser privileges by granting themselves some user rights within the Financial module, they will be outed by the above audit process.
Denying the IT expert the ability to grant access rights within the ERP and passing the same to the functional heads does not solve the problem of abuse. The functional heads can simply become the new kingpins. Only segregation of duty cures the problem of abuse.
But we can meet over coffee and share the pros and cons of the various  implementations :-)
walu. 

      From: waudo siganga <emailsignet at mailcan.com>
 To: Walubengo J <jwalu at yahoo.com>; KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke> 
 Sent: Thursday, January 19, 2017 10:36 AM
 Subject: Re: [kictanet] ICT Authority, not Treasury, should oversee IFMIS

#yiv1426227970 #yiv1426227970 -- body{padding:1ex;margin:0;font-family:sans-serif;font-size:small;}#yiv1426227970 a .filtered99999 {}#yiv1426227970 blockquote{margin:0;border-left:2px solid #144fae;padding-left:1em;}#yiv1426227970 blockquote blockquote{border-color:#006312;}#yiv1426227970 blockquote blockquote blockquote{border-color:#540000;}#yiv1426227970 Hi Walu - I can see from your comments that you have never worked in a finance environment. For secure setup there is no way "IT guys must then translate x, y & z function into the appropriate access levels for that accountant within the system". Simply put a person who is a trained IT expert knows too much about how the system works and therefore cannot be assigned access administration. The overall person for access admin is a "super-user" or "Chief Security Officer"or a title in that direction. This super user assigns access rights to users, such as ability to add,delete, update, edit, view, etc records. To assign these rights in practically all IT systems the super user must himself have those same rights, otherwise he/she cannot assign them to other users. A system where a super-user is an IT expert is a very weak system. The IT expert should never have ability to enter a system and change records. If you analyse the IFMIS problem you will realise that it is not a problem of IT experts infiltrating the system. It is just password misuse by ordinary users. At least I agree with you on one thing - IT expertise role and password administration must never be put in the same office. In most banks and finance environments the super-user function is undertaken by the CEO or a very senior executive who is OUTSIDE the IT function. THERE IS NO PROBLEM WITH IFMIS. The users, as is normal in any IT system, are the weakest link. It is like having pilots who are busy with corruption to fly a plane then when the plane crashes we say there was a problem with the plane. W. On Wed, Jan 18, 2017, at 02:54 PM, Walubengo J wrote:
@Dr Siganga, my comments below: >>1. Hi Walu - I do not agree with you that access administration (passwords) is a technical function. In most cases passwords just mimic authorization structures that pre-exist in a manual system.>>>Response:Yes and NO. Yes passwords and their access levels are controls that mimic the authorization levels of the manual system. However, their implementation in an ideal environment should be segregated.   E.g the finance director should say in writing: 'I need my accountant to do x, y & z function' .  The IT guys must then translate x, y & z function into the appropriate access levels for that accountant within the system.  Finance retains the administrative oversight in terms of triggering the password request and profiling the access levels desired. IT retains the technical function of implementing the same. Never put these two roles in one office. Shida mingi inajiletea. >>2. I also differ with your suggestion that it is the work of technical people to enforce, check or review system controls. That should be the function of an independent auditor.>>RESPONSE: Yes and NO.Yes, independent or external auditors (hopefully Information System Auditors) do review the  technical controls. But this is often an annual exercise. So serious organisation do not wait for a year to be told their controls were not effective. They have INTERNAL information system auditors (who are technical) to continuously  monitor/enforce that these IT controls are in place, working and/or need to be updated. Other organisation may allocate this role to the Information Security Officer, either way these are ICT technical chaps. walu. 
 From: waudo siganga <emailsignet at mailcan.com>
To: Walubengo J <jwalu at yahoo.com>; KICTAnet ICT Policy Discussions <kictanet at lists.kictanet.or.ke>
Sent: Wednesday, January 18, 2017 1:55 PM
Subject: Re: [kictanet] ICT Authority, not Treasury, should oversee IFMIS #yiv1426227970 #yiv1426227970 Hi Walu - I do not agree with you that access administration (passwords) is a technical function. In most cases passwords just mimic authorization structures that pre-exist in a manual system. It is very important that the access of technical people to a system, especially a financial one, be as inhibited as possible. Those who access the system should only be capable of doing the functions they would perform in a manual system. To enhance security of the system, access administration should be overseen by a most senior person who is NOT trained to do technical work on the system. I also differ with your suggestion that it is the work of technical people to enforce, check or review system controls. That should be the function of an independent auditor. Overall I think there is much misunderstanding about IFMIS. The problem is not technical; it is administrative. Specifically access administration (passwords). W. On Wed, Jan 18, 2017, at 01:06 PM, Walubengo J via kictanet wrote:
Grace B via kictanet <kictanet at lists.kictanet.or.ke> wrote>>>Second, the problem with IFMIS, it appears is a lack of commitment to simple values such as integrity and prudent stewardship of public funds. What guarantee wold we have that ICTA would be different from Treasury?  >>Segregation of duties solves this.  Treasury continues being the Process owner, but surrenders the Technical leadership of the system/ERP to ICT Authority. So if it is a case of passwords and their use, expiry amongst other technical issues, we know it is ICT Authority to manage (and take blame). It is often a confusing and thin line. The line between Administrative and Technical authority.   But you can look at it in terms of the President's Security detail.   The President maybe the (Administrative) boss of his security detail, but the President can never tell his security detail HOW to guard him or what weapons to use or how many guards he needs, where to position them etc.  These are TECHNICAL issues that the President cannot and should never pretend to be dictating on since they lie squarely within the NIS/Inspector General domain. The moment NIS start taking technical instructions from the President, is the moment our security system will collapse. If we get this seperation of authority right, we solve the IFMIS puzzle. walu.  From: Grace B via kictanet <kictanet at lists.kictanet.or.ke>
To: jwalu at yahoo.com
Cc: Grace B <nmutungu at gmail.com>
Sent: Wednesday, January 18, 2017 7:11 AM
Subject: Re: [kictanet] ICT Authority, not Treasury, should oversee IFMIS Interesting discussion. There are those who would look at IFMIS as a public finance management issue as opposed to an ICT one but this is not really count when giving management mandate to either Treasury or ICTA as long as the objectives of PFM (Article 201 of Katiba) are met. One of the issues voiced about IFMIS since devolution/new Constitution has been the problems experienced by county governments and other independent organs eg commissions in accessing funds in a timely manner. (We assume that Executive has not had too many problems assessing funds and may have indeed been facilitating leakage) One issue with transferring the responsibility of maintaining IFMIS to ICTA, it seems would be that there could be few differences between ICTA and Treasury. First, both are Executive institutions that may support devolved and independent structures in line with the soft policy direction of the government of the day. Second, the problem with IFMIS, it appears is a lack of commitment to simple values such as integrity and prudent stewardship of public funds. What guarantee wold we have that ICTA would be different from Treasury?  Regards 2017-01-18 5:54 GMT+03:00 Ali Hussein via kictanet <kictanet at lists.kictanet.or.ke>:
Barrack We are saying the same thing really.. Let's assume that the ICTA is the ICT Department of the Government (which I doubt it is equipped to execute that mandate) then 'managing' here really means providing support to the system.  I think it's time the Government considers the role of Chief Information Officer to really manage the strategic thrust of all ICT initiatives across ministries. The CIO can then be held accountable for overall efficiency and security of all Government ICT Systems. This CIO needs to report directly to the Chief Executive Officer (President) of the country. Now, that person could be seconded or be a part of the ICTA with a doted line responsibility to the CS, MOICT... Ultimately the overall responsibility of how well our Government ICT Systems work lies squarely on the CEO's desk. Look no further.
 Ali HusseinPrincipalHussein & Associates+254 0713 601113  Twitter: @AliHKassimSkype: abu-jomoLinkedIn: http://ke.linkedin. com/in/alihkassim"We are what we repeatedly do. Excellence, therefore, is not an act but a habit."  ~ Aristotle  Sent from my iPad
On 17 Jan 2017, at 11:27 PM, Barrack Otieno via kictanet <kictanet at lists.kictanet.or.ke > wrote:

Hi Ali,

ERP grew from MRP (Material Resource Planning which was a means of
planning and allocating resources in Factories. The difference between
the two is that MRP's were stand alone systems whereas ERP's are
modular and have more functionality. From an evolution perspective ,
it would be ideal to manage IFMIS from Ministry of Finance since they
are the custodians of the treasury and normally allocate resources
through the budgeting process. From a Project Management perspective,
it would be ideal to manage IFMIS from ICTA since it is the
specialized agency meant to manage government technology investments.

Regards

On 1/17/17, S.M. Muraya via kictanet <kictanet at lists.kictanet.or.ke > wrote:
Doubt Treasury economists and accountants are well placed to provide Cyber

Security :)

We need the ICT Authority to configure enterprise wide data protection

(limiting theft of passwords & access to IFMIS).

In 2016, the UN ranked the UK as # 1 in providing digital services.

https://publicadministration. un.org/egovkb/en-us/Reports/ UN-E-Government-Survey-2016

The Government Digital Service (GDS) is part of their Cabinet Office, not

their Treasury.

https://www.gov.uk/government/ publications/govuk-pay/govuk- pay

Their Treasury is consulted about the payment system  👆🏾  the GDS

continues to build.

SMM

*"Better a patient person than a warrior, one with self-control than one

who takes a city." Prov 16:32*

On Tue, Jan 17, 2017 at 9:45 PM, Ali Hussein <ali at hussein.me.ke> wrote:

I fundamentally disagree with this assertion.

First,y, the role of a CIO is to support the enterprise. I have never

heard in my life of an ERP Director. This is just adding a superfluous

layer of useless bureaucracy.

The owner of an ERP is the business with each department taking ownership

of their components:-

1. Financials - CFO

2. CRM (Commercial/marketing/sales)

3. Procurement - Procurement which sometimes comes under Finance

Etc.

The CIO takes ownership to ensure that the company is well oiled to

execute on its mandate. This in my humble opinion goes beyond ERPs and

talks to aligning the Technology Strategy with the Business Strategy. For

example in the banking sector where increasingly the more savvy banks are

taking a 'Platform Thinking' approach. This allows partners to plug into

their core technology through APIs to enable them extend capabilities and

hence offerings to their customers.

The role of a CIO has fundamentally changed to speak to the need for

using

Technology as an accelerator to successful business models.

Secondly, I don't see how the ICT Authority would be better in managing

the monster that is IFMIS. Let them first learn the basics of

communicating

effectively with the community before taking on this elephant in the

room.

*Ali Hussein*

*Principal*

*Hussein & Associates*

+254 0713 601113

Twitter: @AliHKassim

Skype: abu-jomo

LinkedIn: http://ke.linkedin.com/in/ alihkassim

"We are what we repeatedly do. Excellence, therefore, is not an act but a

habit."  ~ Aristotle

Sent from my iPad

On 17 Jan 2017, at 6:42 PM, S.M. Muraya via kictanet <

kictanet at lists.kictanet.or.ke> wrote:

Interesting comments...

ICT Authority, not Treasury, should oversee IFMIS

http://www.nation.co.ke/oped/ blogs/dot9/walubengo/2274560-

3520560-5j04aq/index.html

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