georgia’s pfms model and structure of the treasury general ledger lela kurashvili february, 2012
TRANSCRIPT
THE NATIONAL TREASURY PFMS MODEL
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NBG
DEB
T M
ANAG
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TBU
DG
ET
MAN
AGEM
ENT
THE STATE TREASURY A BUDGET ORGANIZATION
THE GENERAL LEDGER
REPORTING
THE FUNCTIONAL PROCESS
THE INITIAL DOCUMENTS
THE FUNCTIONAL PROCESS
CONFIRMATION OF AGREEMENTS /
LIABILITIES
CONFIRMATION OF INVOICES /PAYMENT
ORDERS
RECORDING OF REVENUES/ PAYMENTS /
REFUNDS
PROCUREMENT / OBLIGATIONS
DEBTORS / CREDITORS / PAYMENTS
NON-MONETARY OPERATIONS, EXCEPT
ASSETS AND INVENTORY
ASSET AND INVENTORY
MANAGEMENT MODULE
HR MANAGEMENT PERSONNEL PAYROLL
BUDGET/ALLOCATIO
NS
THE ELECTRONIC
TENDER SYSTEM
AGREEMENT
GROUNDS FOR LIABILITIES, OTHER
DOCUMENTS
INVOICE
NON-MONETARY EVENTS
REPORTING
DEBT
TAXES
THE GENERAL LEDGER
$
$
$
FORE
IGN
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RNAL
RTGS
CIVI
L RE
GIS
TRY
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THE PROCUREMENT / OBLIGATION LEDGER
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• INFORMATION ABOUT AGREEMENTS WILL BE RECORDED IN COMPLIANCE WITH CPV CODES;
• MODULES FROM WHICH THIS INFORMATION WILL BE TRANSFERRED:
REMUNERATION OF EMPLOYEES“ „INTERNAL DEBT“ „FOREIGN DEBT“ „HR MANAGEMENT“
PROCUREMENT/ OBLIGATIONS
HR MANAGEMENT PERSONNEL PAYROLL
DEBT
BUDGET /DISBURSE
MENT AGREEMENT
GROUNDS FOR LIABILITIES, OTHER
DOCUMENTS$
THE ELECTRONIC
TENDER SYSTEM
FORE
IGN
INTE
RNAL
NBG
DEB
T M
ANAG
EMEN
TBU
DG
ET
MAN
AGEM
ENT
THE STATE TREASURY A BUDGET ORGANIZATION
THE GENERAL LEDGER
REPORTING
THE FUNCTIONAL PROCESS
THE INITIAL DOCUMENTS
THE FUNCTIONAL PROCESS CI
VIL
REG
ISTR
Y AG
ENCY
REVE
NU
E SE
RVIC
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AUD
IT
PRO
CURE
MEN
T AG
ENCY
THE PROCUREMENT / OBLIGATION LEDGER
• A record made in the Procurement/Obligations Ledger is a source of double entries in accounting books.
• An organization selects the type of operation using the Directory of Operations;
• The Directory ensures that the budget classification clause is selected from the Uniform System of Accounts;
• The Directory ensures that the accounting reports are made based on debit entries.
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THE OPERATIONS DIRECTORY
THE OPERATION TYPE
THE BUDGET CLASSIFICATION
CLAUSE
THE ACCOUNTING REPORT THE DEBIT ENTRY
THE PROCUREMENT / OBLIGATIONS LEDGER
5HR MANAGEMENT PERSONNEL PAYROLL
DEBT
BUDGET /DISBURSEMENT AGREEMENT
GROUNDS FOR LIABILITIES, OTHER
DOCUMENTS$
THE ELECTRONIC TENDER SYSTEMPROCUREMENT/
OBLIGATIONS
• THE SYSTEM AUTOMATICALLY REGISTERS INFORMATION IN THE PROCUREMENT / OBLIGATIONS LEDGER;
• ANY CHANGE MADE IN THE LEDGER IS AUTOMATICALLY REFLECTED IN THE ELECTRONIC DATA BASE OF THE TREASURY.
• THE OPERATIONS DIRECTORY HAS A “TREE STRUCTURE”.
FORE
IGN
INTE
RNAL
NBG
DEB
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EMEN
TBU
DG
ET
MAN
AGEM
ENT
THE STATE TREASURY A BUDGET ORGANIZATION
THE GENERAL LEDGER
REPORTING
THE FUNCTIONAL PROCESS
THE INITIAL DOCUMENTS
THE FUNCTIONAL PROCESS CI
VIL
REG
ISTR
Y AG
ENCY
REVE
NU
E SE
RVIC
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AUD
IT
PRO
CURE
MEN
T AG
ENCY
THE PROCUREMENT / OBLIGATION LEDGER
• A Typical Directory of Operations– A budget classification clause; – An Accounting Report; – A cash based or accrual operation;– Functional classification etc.
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11112121 31121 2121
Clause DebitPurchase of a transport vehicleby means of cash transfer to the supplier
Example:
THE DEBIT/CREDIT PAYMENT LEDGER
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THE ELECTRONIC TENDER SYSTEM
HR MANAGEMENT PERSONNEL PAYROLL
DEBT
BUDGET /ALLOCATIO
NSTHE
AGREEMENT
GROUNDS FOR LIABILITIES, OTHER
DOCUMENTS$
INVOICE
DEBTOR / CREDITOR PAYMENTS
INVOICE
PROCUREMENT / OBLIGATIONS
• INFORMATION ABOUT THE TYPE OF OPERATION;
• INVOICE/AGREEMENT CONDITIONS;• THE OPERATION SUB-TYPE, DEFINED
ACCORDING TO THE OPERATION SUBJECT.
FORE
IGN
INTE
RNAL
NBG
DEB
T M
ANAG
EMEN
TBU
DG
ET
MAN
AGEM
ENT
THE STATE TREASURY A BUDGET ORGANIZATION
THE GENERAL LEDGER
REPORTING
THE FUNCTIONAL PROCESS
THE INITIAL DOCUMENTS
THE FUNCTIONAL PROCESS CI
VIL
REG
ISTR
Y AG
ENCY
REVE
NU
E SE
RVIC
E
AUD
IT
PRO
CURE
MEN
T AG
ENCY
PROCUREMENT/OBLIGATIONS LEDGER
8HR MANAGEMENT PERSONNEL PAYROLL
DEBT
BUDGET /ALLOCATIO
NSTHE
AGREEMENT
GROUNDS FOR LIABILITIES, OTHER
DOCUMENTS$
THE ELECTRONIC TENDER SYSTEM
INVOICE
DEBTORS/CREDITORS PAYMENTS
INVOICE
PROCUREMENT / OBLIGATIONS
CONFIRMATION OF INVOICES /
PAYMENT ORDERS
RTGS
THE GENERAL LEDGER
FORE
IGN
INTE
RNAL
• AN ACCOUNTING ENTRY MADE BY SELECTING THE OPERATION;• ACTIVATED ONLY IF THE AMOUNT IS SPECIFIED;• IN PARALLEL, A PAYMENT ORDER IS FORMED.
NBG
DEB
T M
ANAG
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TBU
DG
ET
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THE STATE TREASURY A BUDGET ORGANIZATION
THE GENERAL LEDGER
REPORTING
THE FUNCTIONAL PROCESS
THE INITIAL DOCUMENTS
THE FUNCTIONAL PROCESS CI
VIL
REG
ISTR
Y AG
ENCY
REVE
NU
E SE
RVIC
E
AUD
IT
PRO
CURE
MEN
T AG
ENCY
PROCUREMENT/OBLIGATIONS LEDGER
9HR MANAGEMENT PERSONNEL PAYROLL
DEBT
BUDGET /ALLOCATIO
NSTHE
AGREEMENT
GROUNDS FOR LIABILITIES, OTHER
DOCUMENTS$
THE ELECTRONIC TENDER SYSTEM
INVOICE
DEBTORS/CREDITORS PAYMENTS
INVOICE
PROCUREMENT / OBLIGATIONS
CONFIRMATION OF INVOICES /
PAYMENT ORDERS
RTGS
THE GENERAL LEDGER
• A PAYMENT ORDER IS CONFIRMED BY A BUDGET ORGANIZATION BASED ON DETAILED CPV CODES;
• THE PAYMENT ORDER CONFIRMED BY THE TREASURY IS AUTOMATICALLY SENT TO RTGS.
• ACCOUNTING RECORDS MADE BASED ON THE DOUBLE ENTRY PRINCIPLE ARE AUTOMATICALLY REFLECTED IN THE GENERAL LEDGER OF THE TREASURY“
FORE
IGN
INTE
RNAL
NBG
DEB
T M
ANAG
EMEN
TBU
DG
ET
MAN
AGEM
ENT
THE STATE TREASURY A BUDGET ORGANIZATION
THE GENERAL LEDGER
REPORTING
THE FUNCTIONAL PROCESS
THE INITIAL DOCUMENTS
THE FUNCTIONAL PROCESS CI
VIL
REG
ISTR
Y AG
ENCY
REVE
NU
E SE
RVIC
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AUD
IT
PRO
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ENCY
ASSETS AND INVENTORY
10
$
DEBT
THE ASSET AND INVENTORY
MANAGEMENT MODULE
THE GENERAL LEDGER
NON-MONETARY EVENT
• Example: Transport vehicle: Mercedes, “C” class, manufactured in 2000“ - Code 0001;
FORE
IGN
INTE
RNAL
NBG
DEB
T M
ANAG
EMEN
TBU
DG
ET
MAN
AGEM
ENT
THE STATE TREASURY A BUDGET ORGANIZATION
THE GENERAL LEDGER
REPORTING
THE FUNCTIONAL PROCESS
THE INITIAL DOCUMENTS
THE FUNCTIONAL PROCESS CI
VIL
REG
ISTR
Y AG
ENCY
REVE
NU
E SE
RVIC
E
AUD
IT
PRO
CURE
MEN
T AG
ENCY• ASSETS ARE RECORDED ACCORDING TO THE IDENTIFICATION
CODES OF ANALYTICAL RECORDING (REPORT);• EACH OPERATION PERFORMED WITH ASSETS IS AUTOMATICALLY
REFLECTED IN THE MAIN LEDGER BY MEANS OF BACK LINK. • ACCEPTANCE OPERATION• ACCRUAL OF
AMORTIZATION• DEPRECIATION• MATERIAL IMPROVEMENT• CHANGE OF TYRES• REPAIR COSTS
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DEBT
$
THE GENERAL LEDGER
NON-MONETARY EVENT
NON-MONETARY OPERATIONS,
EXCEPT ASSETS AND INVENTORY
NON-MONETARY EVENT
THE GENERAL LEDGER
OTHER NON-MONETARY OPERATIONS, EXCEPT ASSETS AND INVENTORY
FORE
IGN
INTE
RNAL
NBG
DEB
T M
ANAG
EMEN
TBU
DG
ET
MAN
AGEM
ENT
THE STATE TREASURY A BUDGET ORGANIZATION
THE GENERAL LEDGER
REPORTING
THE FUNCTIONAL PROCESS
THE INITIAL DOCUMENTS
THE FUNCTIONAL PROCESS CI
VIL
REG
ISTR
Y AG
ENCY
REVE
NU
E SE
RVIC
E
AUD
IT
PRO
CURE
MEN
T AG
ENCY
• NON-MONETARY OPERATIONS• INTERNAL OPERATIONS• OTHER ECONOMIC FLOWS
ACCOUNTING OF AGGREGATED PARAMETERS
• Once at the end of each reporting period, aggregated parameters are recorded in the General Treasury Ledger as one operation: Expenses funded from income received from economic
activity of legal entities of public law; Common public payments; Direct payments made bypassing the Common Treasury
Account.
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GEORGIA’S PFMS MODEL AND STRUCTURE OF THE TREASURY GENERAL LEDGER
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Thank You for Attention!
www.mof.gewww.treasury.gov.ge
Lela KurashviliFebruary 2012