Treasury Single Account System in Georgia

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Treasury Single Account System in Georgia

• Joni Babilodze
• Pem-Pal, Istanbul
• Feb 24-28, 2008

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TSA System - Georgia Basic Features of the
system

• Central Treasury (CT) has one GEL denominated
  account Treasury Single Account (TSA) held at
  the National Bank of Georgia.
• Special Resources no more exist in Georgia. The
  Budget System Law, from January 2004, abolished
  them.
• Social Insurance State Fund and Road State Fund
  are integrated in the State Budget.
• Regional Treasury offices have no account, but
  execute all transactions trough the TSA
• Treasury Service of Georgia do not issue cash
  checks. According to the new regulations, public
  employees keep personal checking account in
  commercial banks, to which wages, travel expenses
  or petty cash are transferred.

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TSA System -Georgia
since
2006

• TSA System -Georgia
  
  since 2006

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. Payments Processing

• 1.1 The budget organization (BO) prepares payment
  request (PR) based on the previously registered
  commitment and submit it to the Regional Treasury
  (RT), (or the Operations Department within the
  Central Treasury (CT), which serves the BOs
  located in Tbilisi).
• 1.2 RT processes PR, enters the data in the
  Treasury Information system (TIS) and sends
  electronic payment requests in batches to the
  Settlements Center (SC) of the CT in an encrypted
  file.

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Payments Processing (cont-d)

• 1.3 The SC decrypts the file and enters the data
  into the TSA system, after which the Treasury
  Information System (TIS) generates respective
  payment orders (PO) for each payment requests.
• 1.4 The SC sends POs to the National Bank of
  Georgia (NBG) electronically in batches (Optimum
  size of the batch 40-50 payment orders). The file
  is encrypted. Accounting entries are first input
  into the TGL once the SC has validated the
  electronic payments data and before the SC sends
  the POs to the NBG for payment. The TIS carry out
  this input automatically.

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Payments Processing (cont-d)

• 1.5 The NBG executes the POs through RTGS and
  transfer funds to the commercial bank accounts of
  Suppliers and individual beneficiaries
• 1.6 After receipt of advice from the NBG, in
  substance bank statements, as to the POs that
  have been settled, the TIS debits the TSA and
  generates the corresponding accounting entries in
  the TGL.

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Payments Processing (cont-d)

• 1.7 Afterwards the SC prepares statements for
  each RT and inputs this data in RTs information
  container, which is then uploaded in the RT
  information system.
• 1.8 For internal transactions, whereby one BI
  pays tax to the budget, the POs are processed as
  if they were regular POs except that they will
  not be sent by the SC to the NBG for payment.
• 1.9 The Settlement Center reconciles expenditure
  transactions against the NBG statements on a
  daily basis. RTs reconcile statements against BOs
  expenditure statements on monthly bases.

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Receipts Processing

• 2.1 Taxpayers and other Government debtors
  currently make deposits of funds in commercial
  banks. These deposits are coded by the debtor.
  Treasury Code have nine digits and contain
  information on Tax/receipt administering agency,
  district, tax/receipt type.
• 2.2 The PO details are inputted by the commercial
  banks into their electronic transaction
  processing systems. The commercial banks transfer
  the funds to the TSA at the NBG via the
  inter-bank settlement system.

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Receipts Processing (cont-d)

• 2.3 The NBG emails the encrypted bank statement
  of the TSA to the Treasury Settlement Center late
  in the day payments are made. The Settlements
  Center decrypts the file and checks it for any
  obvious errors.
• 2.4 After the record of the transfer of receipts
  in the TSA is imported into the CT database, the
  TIS automatically processes it into accounting
  entries posted into a double-entry ledger system
  for revenue.

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Receipts Processing (cont-d)

• 2.5 The Treasury Settlements Center then runs the
  PO data through its revenue-sharing program. This
  program allocates the revenues among the 71
  budgets (the central government budget and the 70
  local government budgets). The TIS generates the
  POs for each owners, the Settlement Center
  processes these POs and send them to the NBG for
  wire transfers to the local budgets bank
  accounts.
• 2.6 The Settlements Center sends to the MOFs
  Revenue Service a file of the PO data with
  respective tax payments. This file is not
  encrypted, but is unreadable to an unauthorized
  person.

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Receipts Processing (cont-d)

• 2.7 Files of POs in respect of non-tax revenues
  are sent by the Settlements Center to BIs.
• 2.8 Files of POs in respect of local budget
  receipts are sent by the Settlements Center to
  RTs.
• 2.9 Files of POs in respect of local budget
  receipts are sent by the RTs to Local Authorities.

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Receipts Processing (cont-d)

• 2.10 Files of POs in respect of Tax and Customs
  revenues are sent by the RTs to Local Tax and
  Customs offices.
• 2.11 The NBG statement on receipts is reconciled
  by the Settlements Center against the data in the
  CTs database using reconciliation program the
  next day after the payment is done.