Development of the Treasury role and functions REPUBLIC OF SERBIA MINISTRY OF FINANCE TREASURY Development of the Treasury role and functions in modern society Slađana Jovanović Vladislav Dardić PEMPAL 2 June 2016 Chişinău

ORGANISATIONAL STRUCTURE Treasury—integral part of the Ministry of Finance Established—1 August 2005 Treasury operations—organised on a territory basis Treasury seat—Belgrade Communication network—34 subsidiaries and 110 branch offices Sector of information technologies (SIT)—within the framework of the Treasury Treasury 2

Treasury Registry of agricultural holdings Auction platform JURISDICTION Treasury Financial planning RS cash management Liquidity management Expenditure control according to annual appropriations Budgetary accounting and reporting Maintenance and improvement of the Treasury IT system Public payments Centralised personal income calculation Registry of agricultural holdings Auction platform   Treasury

PUBLIC FINANCIAL MANAGEMENT REFORM PROGRAMME 2016–2020 Improvement of the commitments control and cash management Improvement of scope and quality of reporting on budget execution Gradual and systemic move to accrual accounting Treasury

KEY CHANGES 1. Introduction of the public financial management system Considerable changes to the Treasury operations since its establishment Main drivers of change 1. Introduction of the public financial management system Inclusion of direct budget users (a view into the state of budget, financial planning, general ledger of the Republic of Serbia) 2. Broadening of the public financial management system Inclusion of indirect budget users—Ministry of Justice (250 courts and public prosecutor’s offices) 3. Income calculation of direct budget users 200 users, 30,000 employees 4. Implementation of the complete solution for income calculation for primary and secondary education Income calculation for the Ministry of Education—1760 primary and secondary schools, 130,000 employees 5. Register of cash liabilities settlement Control of commitments regarding commercial transactions 6. Trade in state securities Software solution for auctions 5

DIRECT BUDGET USERS COMMUNICATION NETWORK Communication network of direct budget users Treasury

Improvement of service quality Strategy for Treasury development Strategy for SIT development Improvement of organisational aspects of the IT sector Realisation of special significance projects Improvement of the IT sector infrastructure Treasury 7

THANK YOU FOR YOUR ATTENTION! Should you require additional information, please contact us at: sladjana.jovanovic@trezor.gov.rs vladislav.dardic@trezor.gov.rs THANK YOU FOR YOUR ATTENTION! Treasury 8