sap gheit iv2

Ghana Extractive Industries Transparency Initiative:

SAP Solution for Ghana

Steve Williams, Director, Corporate Social Responsibility, SAP

May 17, 2011

© 2011 SAP AG. All rights reserved. 2Confidential

Resource curse

The resource curse (Paradox of Plenty) refers to

the paradox that countries and regions with an

abundance of natural resources, specifically point-

source non-renewable resources like minerals and

fuels, tend to have less economic growth and

worse development outcomes than countries with

fewer natural resources.

From Wikipedia, the free encyclopedia

http://en.wikipedia.org/wiki/Paradox

http://en.wikipedia.org/wiki/Natural_resource

http://en.wikipedia.org/wiki/Mineral

http://en.wikipedia.org/wiki/Fuel

http://en.wikipedia.org/wiki/Economic_growth


The joint IT project for EITI implementation

Challenges:

Bringing in the oil & gas sector

Closing the gap in reporting

The IT solution:

Addresses the challenge of delayed reporting

Is a development partnership between: The Ministry of Finance on behalf of GHEITI,

SAP AG

GIZ operating on behalf of the German Federal Ministry for Economic Development

and Cooperation (BMZ)

The partnership adds a technical solution and specific managerial skills to the EITI process.

© 2011 SAP AG. All rights reserved. 4Confidential © SAP 2009 /

Scope of the EITI reporting in Ghana

Business Intelligence

Financial Reporting

Government

Institutions

District

Assemblies

http://www.impots-utiles.com/mt-static/FCKeditor/UserFiles/Image/baril_petrole_hausse_record_crise_inflation.jpg


Benefits achieved

From paper to real time web communication

Content is checked and approved before data are made available to the Office of the Ghana

EITI aggregator.


Presentation of the solutionReconciliation of payments from Extractive Industries

Industries

Extractive companies submit their payments

through the web

EITI form

Addition of comments and attached files

Financial and statistical data are entered to allow

analysis

Government entities

Public sector submit revenues received from

extractive companies


Presentation of the solution Reconciliation of payments to District Assemblies

Government entities

Declaration of payments to Local Authorities

District Assemblies

Declaration of Mineral royalties received from

the Office of the Administrator of Stool Lands

Declaration of utilization of funds


Presentation of the solutionReporting

Ghana EITI aggregator

Follows up reporting from all

the entities involved in the

process

Analyzes and reconciles data

Publishes reportings through

Excel or pdf files


Technology delivery

A powerful and flexible tailored IT solution to support

the EITI implementation in Ghana has been

installed using BFC and Extended Analytics.

The solution will optimize the publication of trustful

and transparent information to the stakeholders in

Ghana.

The solution we propose is

Easy to use

Implemented quickly

Adaptable to the other EITI countries

Business Intelligence

Financial Reporting

© 2011 SAP AG. All rights reserved. 10Confidential © SAP 2009 /

Knowledge transfer

A key aspect of the project

Local team is able to handle the tool & reporting

Done through workshops with the EITI multi-stakeholders group

One team of SAP consultant and EITI members working together all along the project

Documentation

End users specific documentation

Reporting and administrative team documentation

Maintenance documentation for IT specialists

Training

For project team at the beginning of the project

For end users before the go live

For IT specialists during installation of platform


SAP delivers Good Governance for Ghana

SAP committed to the project because the conditions were favorable to a software implementation and we were highly impressed with the maturity of the EITI process in Ghana.

IT is an essential enabler to meet the high level of governance standards that this country has set itself.

Effective IT bridges insight and action. In this case, it provides the big picture of revenue streams and payments, together with detailed information. Based on this information, the GEITI Secretariat will be in an even better position to ensure that declaration and payments are reconciled.

In concrete terms, this project will deliver really powerful benefits such as:

Effective and fast reconciliation of declarations and payments;

Quality of data with a validation process and one version of the truth;

A simple overview of revenues;

Reduced administrative overhead;

Faster reporting cycles.


What SAP stands for

© SAP

Our Purpose

SAP helps our world run better in order to create enduring prosperity for people everywhere

“SAP aims to not only help businesses run better, but help the world run better,” said Jim Hagemann Snabe, co-CEO, SAP. “The Ghana EITI project is one such project where we’repleased to bring both our software and our industry and business process expertise to help Ghana meet the global standard for transparency in the oil and mining industries.”

This project presents a unique opportunity to engage within our Corporate Social Responsibility efforts not only with a financial contribution, but also with skills and technology, and as such help the EITI process and the country of Ghana to run better.

This is a project with a potential to touch the lives of millions of people through good governance.

Our Ambition

is to deliver on this purpose by making businesses and institutions around the globe perform at a significantly higher level of efficiency and effectiveness by enabling business network transformation and closed-loop insight-to-action

© SAP AG 2009. All rights reserved. /

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