Treasury Performance Monitoring Republic of Armenia

Legislation (regulating procedures and timelines for funding budget expenditures) The Law of the Republic of Armenia “On the Treasury System”; The Law of the Republic of Armenia “On the Budget System of the Republic of Armenia “ (GoA Resolution No. 48, dated 18.01.2002 “On Approval of the Procedures for the Execution of National and Municipal Budgets of the Republic of Armenia “); The Law of the Republic of Armenia “On the National Budget of the Republic of Armenia for 2018 “ (GoA Resolution No. 1717, dated 27.12.2017 “On Measures to Ensure Execution of the National Budget of the Republic of Armenia for 2018"); The Law of the Republic of Armenia “On Procurement"; Labor Code of the Republic of Armenia; The Law of the Republic of Armenia “On Public Pension Provision for Citizens of the Republic of Armenia"

Treasury Objectives Organize the work on finance management and funding expenditures of the Republic of Armenia and its municipalities; Organize execution of the national and municipal budgets in accordance with the procedures established by the legislation of the Republic of Armenia; Organize methodological support for regulation of relations pertaining to execution of the national and municipal budgets; Organize crediting the funds of the Republic of Armenia and municipalities to the single treasury account and execute their expenditures through this account; Ensure normative regulation of relations pertaining to drafting, submitting and summarizing public institutions’ reports on their financial activities and establishing accounting standards in the budget sector; Exercise preliminary control over payments of public institutions made in the course of executing the national and municipal budgets;

Treasury Objectives Organize servicing cash flows of the Republic of Armenia and municipalities; Accounting transactions of public entities’ extrabudgetary funds (accounts); Receive financial statements on transactions involving funds of the national and municipal budgets, extrabudgetary funds, verification, summarizing and providing data reflected therein; Account capitalization of commodity loans and grants provided to Armenia by foreign states and international organizations; coordination and control (monitoring) of related functions; Service commitments to the Republic of Armenia established by the Government of the Republic of Armenia.

Treasury Information Systems “Treasury Business Day” The IS was developed and implemented in the RA Treasury system in 1998. In 2005, the TBD IS was upgraded and expanded. In January 2014, databases of the Treasury and 44 MKO were unified in a single database (MKO were dissolved). “Client-Treasury” Treasury account management IS was developed and implemented in the RA Treasury system in 2010. The system enables electronic filling and submission of estimates of expenditures, contract summaries and timelines (deadlines) of payments, budgetary funding requests, invoices, tax invoices, budget and financial commitments, transfer orders and other documents, as well as provides opportunities to view accounts, create balances and references in real time.

Integrated Information Systems “ARMEPS” Public Procurement electronic system RA Ministry of Finance “Taxpayer-3” Electronic reporting system RA Committee for Public Revenues “AP- Enterprise” Electronic Salary Calculating System Armenian Software Co.

BI Expenditure Funding Diagram ARMEPS Chief controllers of appropriations Treasury (ODK) Central Bank Taxpayer-3 Commercial Banks Budget institutions AP-Enterprise

PI-22. Budget Expenditure Arrears Component 22.1 Expenditure arrears As of now there are now arrears due to high level of national budget revenue collection, as well as legislatively established prerequisites for funding budget institutions’ expenditure commitments. In particular, budget institutions may not assume expenditure commitments without identifying the source of funding. Component 22.2 Monitoring Expenditure Arrears A monitoring system is in place that enables provision of information on the number and value of contracts signed by ministries and agencies, advance payment amounts, amounts paid, as well as on financial liabilities and debts (when an expenditure commitment has not been paid for over a month). However, as of now the Treasury does not monitor public non-profit organizations. Accounts of public nonprofit organizations are slated to be transferred from commercial banks to the treasury no earlier than in January 2019.

Self-assessment PI-22. Expenditure Arrears Self assessment for 22.1 Expenditure Arrears 2015, 2016, and 2017 - А 22.2 Expenditure arrears monitoring 2015, 2016, and 2017 - B Self assessment for PI-22 2015, 2016, 2017 - B+

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