Reorganization of the MOF Treasury System of the Republic of Moldova PEMPAL TCOP VC April 18, 2018

Presentation outline: Regulatory Framework for the Reorganization Changes in the Treasury System Structure Expanding Remote Provision of Treasury Services Benefits from the Treasury System Reorganization Issues and Challenges

Regulatory Framework for the Reorganization Strategy for Public Administration Reform for 2016-2020 (Resolution of the Government of the Republic of Moldova #911 dated July 25, 2016) Resolution of the Government of the Republic of Moldova #696 dated August 30, 2017, on reorganization of the Ministry of Finance Ordinance of the Ministry of Finance #144 dated November 27, 2017, on service areas for regional treasuries

The State Treasury Authority of MOF Cash Management Section 2. Changes in the Treasury System Structure (1) The State Treasury Directorate of the MOF (before and after) The State Treasury (General Directorate of MOF ) (41 staff) The State Treasury Authority of MOF (30 staff) Cash Management Directorate Оperations Directorate Methodology Directorate Reporting Directorate Cash Management Section Operations Section Methodology Section Reporting Section Public Sector Accounting Methodology Section State Budget Reporting Unit Cash Forecasting and Management Section Budget Execution Reporting Section Administrative Units Reporting Section Authorization Service OPEX Section Treasury System Regulation and Monitoring Section Operating Revenue Section National Public Budget Reporting Section

Territorial MOF Treasuries (before and after) 2. Changes in the Treasury System Structure (2) Territorial MOF Treasuries (before and after) 5 regional MOF Treasuries (89 staff) 38 territorial MOF Treasuries (255 staff)

The Treasury System Personnel Strength 2. Changes in the Treasury System Structure (3) The Treasury System Personnel Strength 96 80 41 33 30 30 33 28 17 13 10 4

Service Areas of MOF Regional Treasuries (RTs) 2. Changes in the Treasury System Structure (4) Service Areas of MOF Regional Treasuries (RTs) MOF-RT North - 13 districts + Beltz MOF-RT Center - 13 districts + Chisinau MOF-RT South - 4 districts + Gagauzia ATE МOF-RT Cahul - 2 districts МOF-RT Chisinau state budget - central government and budget-funded entities from neighboring districts

Expanding Remote Provision of Treasury Services entities submit payment documents electronically with e-signature electronic current account statements electronic access to relevant information, reports and statements entities submit e-statements Учреждения заключают договора с обслуживающими казначействами на электронные услуги представления платежных документов через модуль “E-docplat”.

Expanding Remote Provision of Treasury Services Automation of transactions for which MOF enters into a contract with commercial bank (“Moldova - Agroindbank” А.О.): e-transactions with cash in local currency (January 2018) e-transactions with cash in foreign exchange (testing in progress) remittances in foreign exchange (testing in progress)

Expanding Remote Provision of Treasury Services Implementation of E-Procurement Low-value public procurement (МOF, subordinate administrative bodies) – since January 1, 2018 High value public procurement – March 2018 Training – since February 2018 (ministries, agencies. Local governments) Sistemul de achiziții publice electronice este în proces de definitivare și implementare

Expanding Remote Provision of Treasury Services Green Corridor : Thermal Energy Complex Personnel expense Scholarship allowances Social benefits payable by employers Business travel expenses Grants.

Benefits from the Treasury System Reorganization Public spending optimization Fewer staff Fewer paper-based documents Lower expenditures for entities Higher wages and salaries Better quality of treasury services Faster budget execution Transparent budget execution Corruption risk reduced Сокращение необходимости учреждений приезжать в обслуживающие казначейства

Issues and Challenges Reorganization coincided with year-end closing Layoffs in territorial treasuries Lack of personnel in regional treasures Increased workload per public servant FMIS changes E-services partially available to entities Long distance to regional treasuries Training, advice, workshops