georgia’s pfms model and structure of the treasury general ledger

GEORGIA’S PFMS MODEL AND STRUCTURE OF THE TREASURY GENERAL

LEDGER

Lela KurashviliFebruary, 2012

THE NATIONAL TREASURY PFMS MODEL

2

NBG

DEBT

M

ANAG

EMEN

TBU

DGET

M

ANAG

EMEN

TTHE STATE TREASURY A BUDGET ORGANIZATION

THE GENERAL LEDGER

REPORTING

THE FUNCTIONAL PROCESS

THE INITIAL DOCUMENTS


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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RTGS

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THE PROCUREMENT / OBLIGATION LEDGER

3

• 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


DEBT

BUDGET /DISBURSE

MENT AGREEMENT


DOCUMENTS$

THE ELECTRONIC

TENDER SYSTEM

FORE

IGN

INTE

RNAL

NBG

DEBT

M

ANAG

EMEN

TBU

DGET

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THE GENERAL LEDGER

REPORTING



THE FUNCTIONAL PROCESS CI

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• 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.

4

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


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

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DEBT

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THE GENERAL LEDGER

REPORTING




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ENCY


• A Typical Directory of Operations– A budget classification clause; – An Accounting Report; – A cash based or accrual operation;– Functional classification etc.

6

11112121 31121 2121

Clause DebitPurchase of a transport vehicleby means of cash transfer to the supplier

Example:

THE DEBIT/CREDIT PAYMENT LEDGER

7

THE ELECTRONIC TENDER SYSTEM


DEBT

BUDGET /ALLOCATIO

NSTHE

AGREEMENT


DOCUMENTS$

INVOICE

DEBTOR / CREDITOR PAYMENTS

INVOICE


• INFORMATION ABOUT THE TYPE OF OPERATION;

• INVOICE/AGREEMENT CONDITIONS;• THE OPERATION SUB-TYPE, DEFINED

ACCORDING TO THE OPERATION SUBJECT.

FORE

IGN

INTE

RNAL

NBG

DEBT

M

ANAG

EMEN

TBU

DGET

M

ANAG

EMEN


THE GENERAL LEDGER

REPORTING




VIL

REGI

STRY

AG

ENCY

REVE

NU

E SE

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AUDI

T

PRO

CURE

MEN

T AG

ENCY

PROCUREMENT/OBLIGATIONS LEDGER


DEBT

BUDGET /ALLOCATIO

NSTHE

AGREEMENT


DOCUMENTS$


INVOICE

DEBTORS/CREDITORS PAYMENTS

INVOICE


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

DEBT

M

ANAG

EMEN

TBU

DGET

M

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THE GENERAL LEDGER

REPORTING




VIL

REGI

STRY

AG

ENCY

REVE

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E SE

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PRO

CURE

MEN

T AG

ENCY

PROCUREMENT/OBLIGATIONS LEDGER


DEBT

BUDGET /ALLOCATIO

NSTHE

AGREEMENT


DOCUMENTS$


INVOICE

DEBTORS/CREDITORS PAYMENTS

INVOICE


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

DEBT

M

ANAG

EMEN

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THE GENERAL LEDGER

REPORTING




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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

DEBT

M

ANAG

EMEN

TBU

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THE GENERAL LEDGER

REPORTING




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STRY

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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

11

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

DEBT

M

ANAG

EMEN

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THE GENERAL LEDGER

REPORTING




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STRY

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• 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.

12

GEORGIA’S PFMS MODEL AND STRUCTURE OF THE TREASURY GENERAL LEDGER

13

Thank You for Attention!www.mof.ge

www.treasury.gov.ge

Lela KurashviliFebruary 2012

http://www.mof.ge/

http://www.treasury.gov.ge/

georgia’s pfms model and structure of the treasury general ledger

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