IMPLEMENTING TREASURY SINGLE ACCOUNT Department of Education Workshop CY 2014 Mid-Year Financial Reports Butuan City July 21-25, 2014

Outline I. PFM Reforms II. TSA Concept III. Benefits IV. Coverage & Stakeholders V. Electronic Transactions TSA: Tungo sa masinop at mabisang pamamahala ng pondo ni Juan

Public Financial Management Reform Improvement of Treasury Cash Management Operations Improvement of Treasury Cash Management Operations Budget Reporting and Performance Standards GIFMIS Development Liability Management Capacity Building Accounting and Auditing Reforms TSA: Tungo sa masinop at mabisang pamamahala ng pondo ni Juan

TSA consolidate cash resources reduce borrowings perceived cash shortages arising from holding so many government bank accounts fragmented system of handling receipts and payments A priority project under the Philippine Public Financial Management Reform Roadmap, the TSA is intended to enable Government to consolidate cash resources on a daily basis and reduce borrowings currently necessitated by perceived cash shortages arising from holding so many government bank accounts and a fragmented system of handling receipts and payments. Government Integrated Financial Management Information System Treasury Single Account Executive Order No. 55 (2011) mandated the implementation of the Government Integrated Financial Management Information System and the Treasury Single Account TSA: Tungo sa masinop at mabisang pamamahala ng pondo ni Juan

Concept: Treasury Single Account bank account with a set of linked accounts Treasury Single Account (TSA) refers to a bank account with a set of linked accounts through which the Government through the Treasury transacts all its receipts and disbursements. It is an account maintained by the Treasury with the Central Bank to account for (1) all receipts arising from collection of taxes, duties, fees and charges, grants and donations, proceeds of loans/borrowings, dividends, and other miscellaneous receipts intended for special purpose/s, and (2) servicing of loans/borrowings, expenses, contributions and other related expenditures. TSA: Tungo sa masinop at mabisang pamamahala ng pondo ni Juan

TSA Greater clarity of fund flows Greater transparency in public financial management Improved cash and debt management Improvement of domestic financial markets by increasing their liquidity Facilitating more accurate accounting and improved reporting Reduced transaction costs while increasing interest earned for government BENEFITS TSA: Tungo sa masinop at mabisang pamamahala ng pondo ni Juan

Coverage of TSA The TSA implementation covers the whole-of-government, with initial implementation to National Government Agencies under the Executive Department The TSA will cover all funds of the government held in bank accounts Revenue/income Extra-budgetary funds Off-budget accounts (OBA) funds Multi or Bilateral Donor funds or ODAs Cash accounts TSA: Tungo sa masinop at mabisang pamamahala ng pondo ni Juan

TSA StakeholdersTreasury Central Bank NGAsKBsTaxpayers TSA: Tungo sa masinop at mabisang pamamahala ng pondo ni Juan

Information Systems for Receipts affecting TSA BIR Electronic Filing and Payment System (electronic/online transactions) BIR Limited Bank Data Entry System (over-the-counter transactions) BOC Electronic to Mobile Customs System and BAP Payment Application Secure System v5 (PASS5) (electronic/online transactions) BTr National Collection System (over-the-counter transactions) TSA: Tungo sa masinop at mabisang pamamahala ng pondo ni Juan

Electronic Transactions to TSA collecting banks Remittance by collecting banks of tax revenue (BIR/BOC) collections to TSA is made through EFTIS government depository banks Remittance by government depository banks for non-tax revenue (all fees & charges due to NGAs) collections is made through EFTIS Reporting to Treasury by collecting banks of tax revenue collections and government depository banks for non-tax revenue collections have shifted from manual reports to electronic/online mode through the Treasury Reporting and Monitoring System (TRAMS) TSA: Tungo sa masinop at mabisang pamamahala ng pondo ni Juan

TSA PROCESS (RECEIPTS) TSA: Tungo sa masinop at mabisang pamamahala ng pondo ni Juan NCAD BTr TSA (BSP) Adjustments for *checks/**over/under remittance *Supporting docs to be submitted within 15 days ** to be completed within 5 BD from Collection Date AABs AGDBs Taxpayer NCO NLT 10am NBD Collection Viewing Facility NLT 2pm NBD TRAMS Collection Report.csv format Bank Statement Notes: NLT – Not Later Than NBD – Next Banking Day BTr PO/RO TRAMS NCS LDC & DS RIDD BTr HO FVD

Disbursement under TSA The Government implements a Modified Disbursement Scheme for all its payment obligations. 1. MDS Checks (issuance of MDS checks by NGAs to suppliers/payees for negotiation to MDS AGSB) 2. Advice to Debit Account (checkless payment, clearing & settlement) TSA: Tungo sa masinop at mabisang pamamahala ng pondo ni Juan

TSA Process (Disbursement) SupplierSpending Agency Budget Office Supplier’s Bank Govt Servicing Bank TSA: Tungo sa masinop at mabisang pamamahala ng pondo ni Juan

Maraming salamat. TSA: Tungo sa masinop at mabisang pamamahala ng pondo ni Juan