Integrated Financial and Administration Systems (IFAMS) – Employee’s Provident Fund (EPF/KWSP)

Kumpulan Wang Simpanan Pekerja (KWSP) or Employees Provident Fund (EPF) is a Malaysian government agency under the Ministry of Finance. It manages the compulsory savings plan and retirement planning for legally employed workers in Malaysia.

BACKGROUND OF ENGAGEMENT

Innovation Associates was awarded implementation of Integrated Financial and Administration Systems at EPF Headquarter and pilot sites at regional offices. The project was named IFAMS (Integrated Financial Accounting Systems) and it took approximately 8 months to go live followed by 2 months of post go-live support.

SCOPE & VALUE DELIVERED

The implementation involves Business Process Re-engineering and Implementation of Change Management and SAP Financials (GL, AP, AR, CM, CO, FM, and AM & IS-RE) and Logistics (PUR, IM, & PM, PS and customised TMS) and Business Warehouse modules at EPF Headquarter and pilot sites at regional office.


Key Challenges:

The current Chart of Accounts coding structure was not designed for future growth and reporting. IA has co-designed a new Chart of Accounts designed with the key business users which is structured and scalable for growth
There were pockets of resistance to change within the organisation. This was overcome by continuous strategic communication, change management and plenty of training to the end-users

Value to the client:

  • Reduction in leakages as a result of On-Line procurement with real-time budget check and approval.
  • Faster Month-end closing due to the automation of all the relevant periodic financial and management reports by the SAP and SAP Business Warehouse system. Notes to the financial statements can now be generated by a touch of a button.
  • Perpetual Cost savings as a result of the reduction on staff overtime for each month-end closing.
  • Improved rental billing to tenants , collection and monitoring resulting from the implementation of the integrated SAP Real Estate module. All leasing space can be stored and calculated real-time resulting in a more accurate and reliable rental leasing results.
  • Better accountability of assets with asset management system and bar code tagging in place.