Transcript Accountant General - Uganda Budget Information

GOU Treasury Single Account and
Decentralization of payment of Salaries
By
Accountant General’s Office
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Discussion Areas

TSA Implementation

Decentralization of payment of Salaries
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
IFMS
Other Issues of concern
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GOU TSA
 Gou
has introduced a Treasury Single Account in
central Government which will be rolled to Local
Governments
 The
modalities of its implementation in LGs will be
communicated in future.
Handling
of Salaries and Pension, Transfers to Local
Governments will not change in the medium term
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TREASURY SINGLE ACCOUNT
(TSA) CONCEPT
A unified structure of government bank accounts through
which government transacts all its receipts and payments
giving a consolidated view of government cash resources.
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Challenges of the current
Banking Arrangements
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The large number of active bank accounts.
Monitoring and reconciliation
The lack of focus on the aggregate cash position
Lack of active cash management
Dormant Accounts
Bank charges
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Consequences:
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Reliance on cash rationing for
budget/cash releases
Borrowing costs incurred whilst
substantial unremunerated balances of
public cash
Dormant Accounts pose a risk of fraud
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Decentralization of payment of
salaries
 MoFPED
and MoPS are in the final stages
of decentralizing payment of salaries for
votes on the IFMS
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Back ground of payment of
salaries
 Gou
moved from cash payments to cheques (Bank
schedules)
 Challenges
-Ghost payments (same schedule to different banks)
-Overprovision, diversions, arbitrary deductions,
“teeming and lading”, collusion with banks and issues
related with cheques.
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STP ARRANGEMENT
 Introduction
of EFT
 Centralised payrolls to ease transfer
 Opened bank account at BOU for each vote
 Changed the release process
 Created a review process by the A/O
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Benefits under STP
 Non
diversion of wage budget
 Faster
 Minimised collusion
 Easy traceability
 A/O involvement (Preliminary payroll)
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Challenges under STP
 Largely
out side IFMS ( the main payments
system)
 Neglect of ownership by votes (lack of payroll
processing follow up, no bank reconciliations,
deduction follow up)
 Bounced EFTs and follow up
 Too many transactions (Batch processing)
 Slow feed back response
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Need for change of current
process
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Synchronise the salary bank account structure with TSA
concept
Need to trace payments to individual under one payment system
Need to fully hold accountable the A/O of a vote
Opportunity to clean up the payroll
Address file transmission risks under UCS
Decommissioning of UCS
Address transmission file volume challenges under BOU
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Proposed Business Process
 Utilise
the output under IPPS
 Votes generate a table mapping Employee
IFMS number to IPPS/Computer number
forward to Treasury format and upload (One
off) for the current employees (New
employees fill the required form with IPPS/
computer number at set up)
 Set up deduction recipients (URA, NSSF, etc)
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Proposed Business Process
Monthly
 MoPS
generates Payroll information from
IPPS (extract details of IPPS No. Gross pay,
deductions, net pay)- Process can start early on
vote by vote basis
 MoPS
forwards to Treasury
 Based on the extract Treasury issues a”
virtual release” to enable A/O commit for
salaries
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Proposed Business Process
 Treasury
runs a program pick the details,
generate interface file to match
IPPS/Computer No. to Supplier No., net pay,
charge Account details
 Upload the file into IFMS
 Votes run a program to pick up information
and create invoices in their votes
 Invoices are approved and paid through the
IFMS links
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Challenges envisaged
 Incomplete
migration to IPPS for IFMS votes
 Process applies to IFMS votes (agree
arrangement for the LG votes)
 Need to budget for salaries under one
program for the time being as IPPS reports
are being realigned to departments
 Different pay dates
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IFMS Upgrade
IFMS was shutdown from 8th to 21st
October 2013
Upgrade from Oracle11i to R12 was
completed successfully
Gou plans to roll-out the IFMS under
Tier 2 to other LGs esp. Municipal
Councils
Regular reconciliation of bank
Accounts
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IFMS Upgrade
•Need
to post all transactions to GL on
a daily basis to enable timely closure of
periods (Non closure of periods was a
challange during the Upgrade)
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Other Issues of Concern
•Validation
of General Fund Accounts
at the beginning of every FY
•Monthly Reconciliation of Salary
Account ([email protected])
•Payment of unapplied EFTs
•Receipting of transfers from Treasury
to avoid Audit queries
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Other Issues of Concern
•Unapplied
EFTs (Write to MoPS after
correcting the Account details then
Mops sends a file to Treasury to effect
repayment
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Thank
you
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