Talk about global expansion. BearingPoint, Inc. said it has helped the Islamic Transitional State of Afghanistan to successfully install and operate the Afghanistan Financial Management Information System (AFMIS), as part of a $3.95 million contract to help the government upgrade its accounting system.

The two-year old project, financed by the World Bank, is viewed as a critical step to ensuring accountability for processing and reporting the Government’s operating budget, which is largely financed by international contributions.

“This project is an essential step in developing the governance infrastructure necessary to support the reconstruction effort in Afghanistan,” said Michael Vlaisavljevich, a managing director with BearingPoint’s International Public Services practice, in a statement. BearingPoint, formerly KPMG Consulting, Inc., is serving as the project’s program manager, responsible for the design and operation of the core accounting system for the Ministry of Finance.

In addition, the company is providing systems integration and financial management services.

The system will be implemented in two phases, with the immediate phase creating the capability of electronically recording expenditures, producing checks, and generating disbursement reports. BearingPoint will also assist the Ministry of Finance to recruit and train employees on the new system.

The project recorded its first milestone event on November 23rd, when the Treasury Department of Afghanistan successfully completed its first month of computerized operation, producing some 4,700 checks through a system designed by FreeBalance, Inc. of Ottawa, Canada.

The full system is expected to be functioning in March 2003, six months after project initiation. BearingPoint employees will continue to help maintain the system after that date.