Transcript Treasury Single Account System in Georgia Joni Babilodze Pem-Pal, Istanbul

Treasury Single Account
System in Georgia
Joni Babilodze
Pem-Pal, Istanbul
Feb 24-28, 2008
TSA System - Georgia
Basic Features of the system
• Central Treasury (CT) has one GEL denominated
account – Treasury Single Account (TSA) held at the
National Bank of Georgia.
• Special Resources no more exist in Georgia. The Budget
System Law, from January 2004, abolished them.
• Social Insurance State Fund and Road State Fund are
integrated in the State Budget.
• Regional Treasury offices have no account, but execute
all transactions trough the TSA
• Treasury Service of Georgia do not issue cash checks.
According to the new regulations, public employees keep
personal checking account in commercial banks, to
which wages, travel expenses or petty cash are
transferred.
TSA System -Georgia
since 2006
TSA System -Georgia
since 2006
. Payments Processing
1.1 The budget organization (BO) prepares payment
request (PR) based on the previously registered
commitment and submit it to the Regional Treasury
(RT), (or the Operations Department within the
Central Treasury (CT), which serves the BOs
located in Tbilisi).
1.2 RT processes PR, enters the data in the Treasury
Information system (TIS) and sends electronic
payment requests in batches to the Settlements
Center (SC) of the CT in an encrypted file.
Payments Processing (cont-d)
1.3 The SC decrypts the file and enters the data into the
TSA system, after which the Treasury Information
System (TIS) generates respective payment orders
(PO) for each payment requests.
1.4 The SC sends POs to the National Bank of Georgia
(NBG) electronically in batches (Optimum size of
the batch 40-50 payment orders). The file is
encrypted. Accounting entries are first input into the
TGL once the SC has validated the electronic
payments data and before the SC sends the POs to
the NBG for payment. The TIS carry out this input
automatically.
Payments Processing
(cont-d)
1.5 The NBG executes the POs through RTGS
and transfer funds to the commercial bank
accounts of Suppliers and individual
beneficiaries
1.6 After receipt of advice from the NBG, in
substance bank statements, as to the POs
that have been settled, the TIS debits the
TSA and generates the corresponding
accounting entries in the TGL.
Payments Processing (cont-d)
1.7 Afterwards the SC prepares statements for each RT
and inputs this data in RTs information container,
which is then uploaded in the RT information
system.
1.8 For internal transactions, whereby one BI pays tax
to the budget, the POs are processed as if they
were regular POs except that they will not be sent
by the SC to the NBG for payment.
1.9 The Settlement Center reconciles expenditure
transactions against the NBG statements on a daily
basis. RTs reconcile statements against BOs
expenditure statements on monthly bases.
Receipts Processing
2.1 Taxpayers and other Government debtors currently
make deposits of funds in commercial banks. These
deposits are coded by the debtor. “Treasury Code”
have nine digits and contain information on
Tax/receipt administering agency, district, tax/receipt
type.
2.2 The PO details are inputted by the commercial
banks into their electronic transaction processing
systems. The commercial banks transfer the funds
to the TSA at the NBG via the inter-bank settlement
system.
Receipts Processing (cont-d)
2.3 The NBG emails the encrypted bank
statement of the TSA to the Treasury
Settlement Center late in the day payments
are made. The Settlements Center decrypts
the file and checks it for any obvious errors.
2.4 After the record of the transfer of receipts in
the TSA is imported into the CT database,
the TIS automatically processes it into
accounting entries posted into a doubleentry ledger system for revenue.
Receipts Processing (cont-d)
2.5 The Treasury Settlements Center then runs the PO
data through its revenue-sharing program. This
program allocates the revenues among the 71
budgets (the central government budget and the 70
local government budgets). The TIS generates the
POs for each owners, the Settlement Center
processes these POs and send them to the NBG for
wire transfers to the local budgets bank accounts.
2.6 The Settlements Center sends to the MOF’s
Revenue Service a file of the PO data with
respective tax payments. This file is not encrypted,
but is unreadable to an unauthorized person.
Receipts Processing (cont-d)
2.7 Files of POs in respect of non-tax revenues
are sent by the Settlements Center to BIs.
2.8 Files of POs in respect of local budget
receipts are sent by the Settlements Center
to RTs.
2.9 Files of POs in respect of local budget
receipts are sent by the RTs to Local
Authorities.
Receipts Processing (cont-d)
2.10 Files of POs in respect of Tax and
Customs revenues are sent by the RTs to
Local Tax and Customs offices.
2.11 The NBG statement on receipts is
reconciled by the Settlements Center
against the data in the CT’s database using
reconciliation program the next day after the
payment is done.