Template for drafting a treasury law


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Template for drafting a treasury law

  1. 1. TEMPLATE FOR DRAFTING A TREASURY LAW including Single Treasury Account, Sub-national levels and Municipalities Jean-Marc Lepain Public Finance Specialist 1. General ProvisionsReference to previous legislation – Purpose and scope of the law – Validity – Entry into force –Interpretation –Definition – Treasury mission and responsibilities – Secondary Legislation /Regulation – Amendment of the law 2. Appointment and Responsibility of the Treasury Officers, Delegation of PowersAppointment and responsibilities of the Treasury General Director – Appointment andresponsibilities of other treasury officers at the national level - Appointment and responsibilities ofother treasury officers at the sub-national level – Investigation of alleged misconduct – Criminalproceedings and penalties for misuse of public money 3. Organization set-upOrganizational set-up between the national and sub-national level, central treasury/provincialtreasury, treasury/revenue organization 4. Public MoneyDefinition of public money – Receipt of public money and the Treasury Single Account– Expenditureof public money – Immunity of public money and TSA – Investment of public money and use of theinterests – Special funds - Earmarked Receipt Accounts
  2. 2. 5. Functioning of the Treasury Single AccountOwnership by the Treasury of the TSA – Responsibility of the Central Bank in maintaining the TSA –Service Contract with the Central Bank - TSA sub-account at the provincial level – Transfers andgrants - Government overdraft (the law may or may not allow Government overdraft) -Transitionalprovisions until the TSA is established and operational 6. The Treasury General Ledger SystemResponsibility for accounting principles - Accounting methodology - Maintenance of the Chart ofAccount – Relation of the Chart of Account with Budget Classification – Maintenance of a GeneralLeger by Budget Institutions – Reconciliation of Budget Institutions’ ledgers with the TreasuryGeneral Leger System - 7. Bank AccountOpening and closure of bank account inside and outside of the country. Duties of the bank account inforwarding to the Treasury balance and account statement. Duty of the Director General of theTreasury in maintaining the list of all official bank accounts inside the country and abroad and inreporting to the Minister of Finance and other authorities balances and transactions – Deposit inforeign institutions of sums in foreign currencies 8. Revenue Centralization and Collection of Public MoniesCentralization of all state revenues on the TSA – Respective responsibility of the Treasury and therevenue authorities in collecting taxes and government monies –issue of receipt for public monies –Maintenance by the Treasury of Debit Note Register at the national and sub-national level.Responsibilities for cash holdings- 9. Budget Execution and PaymentsCommitment of public money and processing- Responsibility of the Treasury on checkingappropriation and commitment before payment - Definition of payment procedures and paymentwarrants – Implementation of the centralized public service payroll – Relation of the present lawwith the procurement law –
  3. 3. 10. Government Borrowing and LendingAuthorization for borrowing and lending – Loans by the State – Recording of loans – Monitoring ofloans and debt forecasting – restructuring and restructuration of loans made by Governmententities-Comments: Article 62 of the Budget Law already covers ”Management of Foreign Debts” and Article63 “Borrowing”. 11. Issuance of Guarantees by the StateOnly the Ministry of Finance through its Treasury can issue state guarantees. 12. Management of losses and claimsClaims against the State through acts or omissions – Claims by the State against other persons –Claims by official against the State – Losses or damages though criminal acts or omissions – Lossesand omissions through vis major or other unavoidable causes – Recovery of losses and damages 13. Reporting and Financial RecordsExpenditure report – use of Treasury data by other department of the Ministry of Finance – FinalAnnual Statement – Availability of records for audits 14. Internal Control of Treasury and of other Budget Institutions and AuditResponsibilities of the Chief Internal Auditor - Internal Audit – Independent Audit – Audit of budgetinstitutions 15. Application of the law to sub-national level and municipalitiesTreasury and sub-national revenue, budget execution at sub-national and municipal levelexpenditure assignment, sub-national borrowing and lending, limits on municipal borrowing 16. Miscellaneous
  4. 4. Precious metals, gems and precious stones - Disposal of properties found – Money and propertiesheld in trust – Gifts, donations and sponsorship