1. Eivind Tandberg IMF PFM Advisor South East Europe Phone: +386 1 369 6186 Fax: +386 1 369 6244 etandberg@imf.org http://www.cef-see.org/intro_imf06.htm Treasury single account Benefits of TSA arrangements

2. Eivind Tandberg IMF PFM Advisor South East Europe Phone: +386 1 369 6186 Fax: +386 1 369 6244 etandberg@imf.org http://www.cef-see.org/intro_imf06.htm Multiple benefits  Cash management  Payment processing  Budget execution control  Revenue monitoring  Accounting  Internal control  Audit  Examples – Not exhaustive

3. Eivind Tandberg IMF PFM Advisor South East Europe Phone: +386 1 369 6186 Fax: +386 1 369 6244 etandberg@imf.org http://www.cef-see.org/intro_imf06.htm Cash management  All funds are in one account  Full and immediate information about inflows and outflows  Facilitates good cash planning  Optimize cash balance levels  Maximize returns on liquid assets  Minimize net budget funding costs

4. Eivind Tandberg IMF PFM Advisor South East Europe Phone: +386 1 369 6186 Fax: +386 1 369 6244 etandberg@imf.org http://www.cef-see.org/intro_imf06.htm Payment processing  All payments are made from TSA  Modern TSA – Direct bank transfers to recipients  Same day clearing  Low cost per transaction (2 – 3 cents?)  Basic TSA – Some payments through interim accounts  Overnight clearing  Still considerable savings

5. Eivind Tandberg IMF PFM Advisor South East Europe Phone: +386 1 369 6186 Fax: +386 1 369 6244 etandberg@imf.org http://www.cef-see.org/intro_imf06.htm Budget execution control  Periodic spending limits on TSA sub-accounts  Ensures that payments are kept within budget allocations and/or financial safeguards  Modern TSA: Alternative to ex- ante treasury control  Basic TSA: Supplement to direct treasury control

6. Eivind Tandberg IMF PFM Advisor South East Europe Phone: +386 1 369 6186 Fax: +386 1 369 6244 etandberg@imf.org http://www.cef-see.org/intro_imf06.htm Revenue monitoring  All revenues collected in TSA  Modern TSA: Direct deposit in TSA, information in bank codes  Basic TSA: Collection through interim accounts  Ensures speedy collection  Separates tax collection from tax payments – less corruption

7. Eivind Tandberg IMF PFM Advisor South East Europe Phone: +386 1 369 6186 Fax: +386 1 369 6244 etandberg@imf.org http://www.cef-see.org/intro_imf06.htm Accounting  TSA provides a single, complete audit trail for government cash flows  Facilitates direct reconciliation with accounting records, tax authority, etc  Automated, daily reconciliation  Enhances reliability of accounting

8. Eivind Tandberg IMF PFM Advisor South East Europe Phone: +386 1 369 6186 Fax: +386 1 369 6244 etandberg@imf.org http://www.cef-see.org/intro_imf06.htm Internal control  TSA facilitates transparent and stable financial management processes  Good basis for robust internal control framework  Monitoring of TSA provides early warning of risks and potential irregularities

9. Eivind Tandberg IMF PFM Advisor South East Europe Phone: +386 1 369 6186 Fax: +386 1 369 6244 etandberg@imf.org http://www.cef-see.org/intro_imf06.htm Audit  Audit trail mentioned  Public funds outside TSA clear indication of irregularities  Extensive cash flow projections and statistics  Basis for risk assessment and audit plans