Links Between Public Procurement and Public Finance Management Information Systems in Georgia PEMPAL 2019 г.

The State Treasury – E-Treasury Development Stages e-Treasury – a convenient and easy way to effect budget payments; e-Treasury became fully operational starting from January 1, 2011; this helped to speed up transactions, and all treasury payments are now made in real time; The system provides support software for all financial transactions – all transactions are made electronically based on e-documents; The system generates accurate, timely and robust information on financial events; Introduction of the of e-Treasury resulted in savings of material and human resources; The security of the system is ensured by the Financial and Analytical Department;

Links to External Systems The financial management information system uses web services of the following reference sources and data bases: Public Procurement Agency; Budget Planning and Appropriations Management System Tax Service; Public Registry; Civil Registry;

E-Procurement The unified e-Procurement system is the official webportal for activities related to public procurement in Georgia. It provides an open, transparent and competitive environment for all the participants of the public procurement process. As per the current legislation, public procurement is mandatory for: All entities with the status of a budget organization State-owned enterprises (if the central or local government owns its shares or has a stake exceeding 50 percent)

E-Procurement The unified e-Procurement system covers any procurements (except classified procurements) conducted by all law-abiding organizations Irrespective of the contract amount Irrespective of the source of payment Budget funds Own revenues Grants and loans Reserve funds Operation of the system is ensured by the Public Procurement Agency.

Registration in the E-Procurement System Registration in the e-Procurement system is mandatory for procuring entities and contractors. The system users are: Procuring entity Contractor Resident Non-resident

Registration in the E-Procurement System Data required for the registration User type and legal form; ID code and name/title (Eng); Country, city/village, address; Telephone, fax, e-mail, webpage http:// ; Senior official’s name; Senior official’s position; Servicing bank; Servicing bank’s code; Account number

Contract Types E-tender (SPA) Consolidated tender (CON) E-procurement (GEO) E-procurement financed by donors (DEP) Competition (CNT) Grant competition (GRA) Simplified public procurement (CMR) All contracts registered with the Public Procurement Agency system receive unique ID number

Contract Statuses Announced; Bids submission started; Bids submission completed; Winner identified; Contract under preparation; Contract concluded; Ongoing contract; Executed (completed) contract ; Outstanding (uncompleted) contract;

Registration of Contracts in the State Treasury’s System Starting from 2009, budget organizations provide to the State Treasury information on processed contracts (including administrative contracts). The information also contained monthly payments schedules. The information was used for cash management purposes; Systems have been integrated since 2012, after redesign of the Treasury system and migration from Access to Web-Based system The systems of the State Treasury and of the Public Procurement Agency are integrated and support two-way communication Only contracts with the “Ongoing” status are uploaded to the State Treasury’s system;

Registration of Contracts in the State Treasury’s System When registering commitments in the e-Treasury system budget organization selects a unique contract number (within a budget holder), and the following information is automatically uploaded into the system: Contract number and date; Contractor’s ID and name; Contract amount and currency; Procurement item code and title (CPV code); Organizations do not have system access to contracts registered by other spending units

Registration of Contracts in the State Treasury’s System Budget organization shall also provide the following information in the commitment module: Payment type: current /overdue; Program code; Payment source; Budget classification code and title; Payment purpose; Payment dates by quarters (linked to budget system) As per the current legislation, the budget organization shall upload the information to the Procurement Agency system within 10 days upon the contract processing

Registration of Contracts in the State Treasury’s System Once the contract is placed to the Public Procurement Agency system, the organization shall upload the information to the e-Treasury system, otherwise payments will be impossible Integration of the systems allows to upload the following information to the Public Procurement Agency system: Payments under specific contracts Payments as per payment source Information on budget organizations’ appropriations is provided

Integration Goals and Objectives Controls between appropriations and contract amounts was added to the e-Treasury from 2019; The State Treasury has timely and as complete as possible information on annual commitments related to concluded contracts with indication of probable payment period/quarter; Organizations receive real-time information about Payments made under processed contracts; Savings of appropriations under the contracts; The need to adjust appropriations in case budget resources for new contracts are insufficient

Future Plans The Procurement Agency system has the ePLAN module where budget organizations provide information on annual appropriations by payment source. To monitor appropriations, ePLAN and eBudget could be integrated; Source documents in e-format can be downloaded from the State Treasure system to the Public Procurement Agency system; Going forward, the link between the systems will allow for a detailed and timely analysis of budget planning, procurement items, contracts execution, payments made under contracts, budget execution; Systems integration will result in savings in terms of time and human resources.

State Treasury Thank you! www.mof.ge www.treasury.gov.ge 2019