___________________________________________________________________________
2015/FMP/WKSP1/019 Session: 5
Modernization of Treasury System (Certain Aspects)
Submitted by: Russia
Workshop on Fiscal Management Through Transparency and Reforms
Bagac, Philippines9-10 June 2015
Modernization of Treasury
System(certain aspects)
June 2015
TREASURY OF RUSSIA
Oxana PavlyukovaDeputy Head
Federal Budget Execution Directorate
Key Outcomes of Treasury Development
FTAS project
1998 - 2002(before start)
• No single treasury account
• Budget accounts served by
commercial banks
• No obligation controls system
• Weak budget classification, no tools to
explore and track expenditures
• Revenues and expenditures
accounted independently
• Information systems developed in-
house, fragmented and overlapped
• Large account balances are not used
Nowadays
• Federal Treasury became a principal
public financial authority
• Implemented Single Treasury Account
• Unified Treasury Automation System
implemented
• 23 248 budgets being serviced in FT
• Around 48 900 accounts opened in the
Central Bank
• More than 220 000 customers
• More than 900 000 certificates for
electronic signature issued by FT (free,
only for 2014)
• More than 50 000 000 payment
transactions monthly (for 2014)
• 48.5 bln rubles of budget revenue from
interest on balance at STA (only for 2014)
Слайд 2
Complex Approach to Development FTAS
FTAS
Law and regulatory acts
development,
methodology
development, learning
Information security
policy implementation
(splitting perimeters,
networking,
learning)
Software development,
customization,
implementation, learning
IT modernization
(infrastructure, networks,
systems management,
learning)
Слайд 3
Redesigned
business
processes
Infrastructure
Information
security
New application
software
Core account
Balance accounts of the Federal Treasury Departments
STA architecture and cash flows
Budget funds Off-budget
funds
Слайд 4
Functioning of the Single Treasury Account
Single Treasury Account
RTO 1 RTO 2 RTO 3 RTO 86……..
Sovereign funds
86 Regional offices of the Federal Treasury
Daily replenishment of
regional accounts (t+1)
Consolidation of balances
on the regional accounts
(cash-concentration)
Transfers
Слайд 5
Treasury system development trend – each budget ruble is accounted in the Federal
Treasury accounts
Article 5 of the Federal Law on Federal Budget for 2015 and planned period for 2016 and
2017
(subsidies, investments, contribution to the statutory
account)
Article 5 of the Federal Law on Federal Budget for 2015 and planned period for 2016 and
2017
(advance payments under state contracts)
Consolidation of off-budget funds on the STA
Subsidies to legal entities (except
for subsidies to federal budget and
autonomous institutions, subsidies
to federal state unitary enterprises
for capital investments), budget
investments to legal entities that are
not federal state unitary enterprises,
contributions to statutory capital of
legal entities, included into the list
approved by the Government of the
Russian Federation
Amount of advance payments
envisioned by the recipients the
federal budget funds upon
conclusion of state contracts
(agreements) on delivery of goods,
services and works (except state
contracts (agreements) concluded
in accordance with the state
defense order) within their budget
commitments limits, under state
contracts (agreements) the amount
of which exceeds 1 000 000
thousand rubles
Pension Fund of the
Russian Federation;
Social Security Fund of the
Russian Federation;
Federal Statutory Health
Insurance Fund
Слайд 6
STA Cash Management
*Preconditions for high-quality forecasts :
Use of all sources of information – statistics is not enough!;
Maximum possible automation of data collection to save time for analysis;
Regular updates of forecasts by customers – use of web portal solutions;
Facilitated forms of forecasts for the customers
Слайд 7
-Placement of temporarily
available funds in STA;
-Attraction of funds in STA (future perspective)
Cash Forecasts*STA Operation
STA cash management instruments
Deposits5 - 245 days
In Russian currency-
April 2008;In foreign currency–
November 2014
Budget loans
Up to 30 days
To the RF entities -
February 2014
REPOJanuary 2015
Budget loans
up to 30 days
To municipalities – April
2015
Слайд 8
DEPO operations
Currency swaps
Overnight
Loans
Placements to bank deposit accounts
RF Budget CodeLegal framework
• RF Government Resolution
• RT Order
• General Agreement between the Russian Treasury and lending institutions
• Agreement between the Russian Treasury and stock exchanges (Moscow Stock Exchange MMVB-RTS and S.-Petersburg Stock) on information services
open or closedTypes of auctions
• open: two stages
• preliminary: private call for bids
• competition: increasing rates
• closed: private call for bids and signing of deposit agreements
Support from the Bank of Russia and close cooperation with the Russian MoF
‘privileged’ partnership
• Bank of Russia extends recommendations concerning : amounts of placements, minimal rates and terms of placement
• Information exchange with the Bank of Russia and Russian MoF : ‘coordination of strategies’
Слайд 9
Procedure for Placement of Cash
in Bank Deposit Accounts
Слайд 10
Reference:
0
10
20
30
40
50
60
2008 2009 2010 2011 2012 2013 2014 01/06/2015
Evolution of Incomes from Cash Placed in Deposit Accounts (bln Rubles)
2015 2016 2017
entitlement to a loan stipulated in the law (decision) on the respective RF entity (municipality)
ceiling is equal to 1/12 of the total budget revenues approved by the law (decision) on the budget of the respective RF entity (municipality) for the current FY
percentage is determined in the Law on the Federal Budget (at 0.1% of the annual)
maximum period of loan is 30 days (the deadline for reimbursement is 25 November of the current year)
IndicatorAmount
(mln.Rubles)
2014-2015
Size of loans:
To RF entities
To municipalities
892 243.3887 929.2
4 314.1
Size of revenues:
From RF entities
From municipalities
293.83293.7
0.130
in 2014-2015, loans were
offered to:
51 RF entities;
17 municipalities
Budget Loans to RF Entities and Municipalities
Слайд 11
As of 01.06.2015
Borrower
(represented by a relevant authority)
FTTE
Borrower’s (RF entity, municipality)
account
Signing of loan
agreement and
transfer of
funds
Order
Outline of Budget Lending Process
Reporting
Alimentation of
accounts
Слайд 12
Treasury
of
Russia
Compliance assessment:mandates of officialscompliance with the ceilings (1/12 revenues)not more than 30 days
reimbursement not later than 25 November% rate as per the Budget Lawrestrictions
Credit agreement is an Addendum
to the Budget Loan Agreement
Trading Facility(Stock Exchange, extra-Stock
Exchange)
Treasury
Of
Russia
Lending
institutions
MoF
Russia
Central Bank of
the Russian
Federation
Re
po
rtin
g
Lending institutions Treasury of Russia
1. Order to sell (limit)
2. Total orders
3. Cut-off level
4. Order to buy
5. Execution of transactions 5. Execution of
transactions
REPO Procurement / Trading Procedure
transactions transactions
Слайд 13
Note (as of 01.06.2015), mln. Rubles:
Size of placement Revenue size
236 951.00 171.30
Operation of the Single Treasury Account in
New Environment (future perspective)
Слайд 14
Single Treasury AccountConsolidation of balances (book entries) without
“physical” aggregation
…...Bank account
№30101 (FTD 1)
Treasury account
Treasury account
Bank account
30101 (FTD 86)
Treasury account
Treasury account
Bank account №30101 (FTD 2)
Treasury account
Treasury account
Sovereign funds
transfers
Information systems of the Federal Treasury
KPI system
FTASPortal of SP
(www.zakupki.gov.ru)
E-Budget
SIS SMP
Portal SMI
(www.bus.gov.ru)
FT - proprietor FT - operator
SAMS
(www.gas-u.ru)
(www.budget.gov.ru)
15Слайд 15
Functional structure of E-Budget
Reference and
master data
Budget planning Accounti
ng and reporting
Revenue manage
ment
Expenditure
management
Procurement
management
NFA manage
ment
Cash manage
ment
HR manage
ment
Financial asset and
debt managem
ent
Performance
management
Financial controls
16Слайд 16
CASH PLANNING
Single account
Limits
Monetary funds
AS FINANCIAL STATUS
Liabilities
Assets
Cash handling
INTERCONNECTION WITH OUTPUTS
Quality of
services
Quantity of
services
AS financial
status
Budget appointments controls
AS financial status
Measure outcomes
E-Budget targets
Слайд 17
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