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Home (/) / Documents (/category/documents.html) / Btr Functions Draft 6-1-15 (/documents/btr-functions-draft-6-1-15.html)

bureau of the treasury I. Bureau of the Treasury (BTr) The Bureau of the Treasury is one of four (4) bureaus under the Philippinesâ Department of Finance (http://en.wikipilipinas.org/index.php/Bureau_of_the_Treasury) The Bureau of Treasury was established on October 3, 1990 when the Philippine Commission headed by William Howard Taft enacted Act 12 creating the Bureau of Insular Treasury. Its principal function was to receive and disburse public funds, to account for the funds received and disbursed, and to supervise the banks in the country. Under Act 2657 otherwise known as the Administrative Code of 1916, as amended by Act 2711 or the Revised Administrative Code of 1918, the Bureau was renamed as âThe Bureau of the Treasury (BTr)â. It was placed under the executive control and supervision of the Department of Finance and charged, among others, with the responsibility of the safekeeping of all government funds and of the supervision and coinage of the currency. Over the years, certain functions of the Bureau of the Treasury were transferred to other offices and its organizational structure changed in response to its mandate. Later on under Executive Order 449, the BTr was reorganized. Likewise some divisions were abolished and some divisions were added. (BTr.AccountingService.ManualOfOperations.p1) Thus, It directs the formulation of policies on borrowing, investment and capital market development; the formulation of adequate operations guidelines for fiscal and financial policies; the maintenance of books of accounts of NG cash transactions; the management of NG cash resources, the collection of advances made by NG and guarantee forward cover fees due NG, the control and servicing of its public debt, both foreign or domestic; the issuance, servicing and redemption of government securities for the account of NG; the administration of the Securities Stabilization Fund; the bonding of all accountable public officials and employees; the custody of financial assets of NG, its agencies and instrumentalities; and the implementation of special laws that vest in the Bureau of Treasury the certain aspects relating to fiscal and financial administration of the government.(http://www.treasury.gov.ph/?page_id=413) a. Fiscal Agency Function The Central 1 Download (/download/link/btr-functions-draft-6-1-15) Bank acts as a banker to other banks as well as the government. It also functions as the fiscal agent for the government by holding the Treasury Deposit Account (TDA) and central governmental agency deposit accounts, and All materials on our website are shared by users. If you have any questions about copyright issues, please report (/document/report/btrundertaking the issuance, registration, redemption, and interest payment of central government bonds and treasury functions-draft-6-1-15) us to resolve them. We are always happy to assist you. bills. (http://www.cbc.gov.tw/public/Attachment/861916365671.pdf) b. Fiscal Policy vs. Monetary Policy Fiscal policy, 212 BTR FUNCTIONS DRAFT 6-1-15 measures employed by governments to stabilize the economy, specifically by manipulating the levels and allocations views by hanna-pentino of taxes and government expenditures. Fiscal measures are frequently used in tandem with monetary policy to on Dec 16, 2015 Category: Download: 0 achieve certain goals. The usual goals of both fiscal and monetary policy are to achieve or maintain full employment, Report (/document/report/btr-functionsComment: 0 DOCUMENTS to achieve or maintain a high rate of economic growth, and to stabilize prices and wages. The establishment of these draft-6-1-15) ends as proper goals of governmental economic policy and the development tools with which to achieve them are (/category/documents.html) products of the 20th century. In taxes and expenditures, fiscal policy has for its field of action matters that are Comments within governmentâs immediate control. The consequences of such actions are generally predictable: a decrease in personal taxation, for example, will lead to an increase in consumption, which will in turn have a stimulating effect on the economy. Similarly, a reduction in the tax burden on the corporate sector will stimulate investment. Steps taken to increase government spending by public works have a similar expansionary effect. Conversely, a reduction in government expenditure or an increase in tax revenues, without compensatory action, has the effect of contracting the economy.  ("Fiscal Policy".Britannica Academic Edition. n.d.. Web. 19 May 2011) The Bureau of Treasury (BTr) manages the finances of the government, by attempting to maximize revenue collected and minimize spending. The bulk of non-tax revenues comes from the BTrâs income. Under Executive Order No.449, the BTr collects revenue by Description issuing, servicing and redeeming government securities, and by controlling the Securities Stabilization Fund (which Download Btr Functions Draft 6-1-15 increases the liquidity and stabilizes the value of government securities "The New Central Bank Act (RA 7653). ("Bangko Sentral ng Pilipinas. Bangko Sentral ng Pilipinas; n.d.. Web. 20 May 2011. Web) through the purchase and sale of government bills and bonds.  ("Mandate".Bureau of the Treasury Website.Bureau of the Treasury; n.d.. Web. Transcript 16 May 2011. Web) Monetary policy, is the monitoring and control of money supply by a central bank, such as the bureau of the treasury I. Bureau of the Treasury (BTr) The Bureau of the Treasury is one of four (4) bureaus under the Bangko Sentral ng Pilipinas. This is used by the government to be able to control inflation, and stabilize currency. Philippinesâ Department of Finance (http://en.wikipilipinas.org/index.php/Bureau_of_the_Treasury) The Bureau of Monetary policy is considered to be one of the two ways at the government can influence the economy â the other Treasury was established on October 3, 1990 when the Philippine Commission headed by William Howard Taft enacted one being Fiscal Policy. Monetary policy is generally the process by which the central bank, or government controls Act 12 creating the Bureau of Insular Treasury. Its principal function was to receive and disburse public funds, to account the supply and availability of money, the cost of money, and the rate of interest. for the funds received and disbursed, and to supervise the banks in the country. Under Act 2657 otherwise known as the (http://en.wikipedia.org/wiki/Monetary_policy_of_the_Philippines#cite_note-1) Under the New Central Bank Act of Administrative Code of 1916, as amended by Act 2711 or the Revised Administrative Code of 1918, the Bureau was 1993, The Bangko Sentral ng Pilipinas or BSP performs as the central monetary authority of the Republic of renamed as âThe Bureau of the Treasury (BTr)â. It was placed under the executive control and supervision of the the Philippines. It provides policy directions in the areas of money, banking and credit and exists to supervise Department of Finance and charged, among others, with the responsibility of the safekeeping of all government funds operations of banks and exercises regulatory powers over non-bank financial institutions. It keeps aggregate and of the supervision and coinage of the currency. Over the years, certain functions of the Bureau of the Treasury were demand from growing rapidly with resulting high inflation, or from growing too slowly, resulting in transferred to other offices and its organizational structure changed in response to its mandate. Later on under high unemployment. (http://www.lawphil.net/administ/bsp/bsp.html) The primary objective of BSP's monetary policy Executive Order 449, the BTr was reorganized. Likewise some divisions were abolished and some divisions were added. is to promote price stability because it has the sole ability to influence the amount of money circulating in the (BTr.AccountingService.ManualOfOperations.p1) Thus, It directs the formulation of policies on borrowing, investment economy. In doing so, other economic goals, such as promoting financial stability and achieving broad-based, and capital market development; the formulation of adequate operations guidelines for fiscal and financial policies; the sustainable economic growth, are given consideration in policy decision-making. maintenance of books of accounts of NG cash transactions; the management of NG cash resources, the collection of (http://www.bsp.gov.ph/downloads/Publications/FAQs/targeting.pdf) II. Asset Management In line with Executive advances made by NG and guarantee forward cover fees due NG, the control and servicing of its public debt, both Order No. 449 dated October 17, 1997 âRealigning the organization of the Bureau of the Treasuryâ and in the light of foreign or domestic; the issuance, servicing and redemption of government securities for the account of NG; the the organizational changes embodied in this E.O, the Department of Budget and Management approved on 06 administration of the Securities Stabilization Fund; the bonding of all accountable public officials and employees; the February 1998 the detailed organizational structure of the BTr. The guidelines for implementing E.O no. 449 custody of financial assets of NG, its agencies and instrumentalities; and the implementation of special laws that vest in enumerate the composition of the Asset Management Service as follows: a) Receipts, Investment and Disbursement the Bureau of Treasury the certain aspects relating to fiscal and financial administration of the government. Division (RIDD), b) Cash and Cash Custodial Division (CCD), c) Fund Transfer Division (FTD) and d) Fund Validation (http://www.treasury.gov.ph/?page_id=413) a. Fiscal Agency Function The Central Bank acts as a banker to other banks Division (FVD). (BTr.AssetManagementServiceManualOfOperations.p6) In 1993, Congress passed RA 7653 as well as the government. It also functions as the fiscal agent for the government by holding the Treasury Deposit otherwise known as the New Central Bank Act, establishing an independent central monetary authority called the Account (TDA) and central governmental agency deposit accounts, and undertaking the issuance, registration, Bangko Sentral ng Pilipinas. RA 7653 provided that the Department of Finance, through the Bureau of the Treasury, redemption, and interest payment of central government bonds and treasury bills. shall assume the fiscal agency function of the then Central Bank of the Philippines within three (3) years and not (http://www.cbc.gov.tw/public/Attachment/861916365671.pdf) b. Fiscal Policy vs. Monetary Policy Fiscal policy, beyond five (5) years from its approval. Among the fiscal agency functions of the then Central Bank of the Philippines measures employed by governments to stabilize the economy, specifically by manipulating the levels and allocations of was the custody and administration of the BSF and SSF which was transferred to the Bureau of Treasury. taxes and government expenditures. Fiscal measures are frequently used in tandem with monetary policy to achieve (BTr.AssetManagementServiceManualOfOperations.p10) The key role of Asset Management is to ensure the certain goals. The usual goals of both fiscal and monetary policy are to achieve or maintain full employment, to achieve availability of funds to finance National Governmentâs budgetary requirements. Maximizes the earnings of National or maintain a high rate of economic growth, and to stabilize prices and wages. The establishment of these ends as Governmentâs fund through timely and effective investment of idle cash balances in high yielding deposits. proper goals of governmental economic policy and the development tools with which to achieve them are products of the Administers and manages effectively the special purpose funds, namely: the Bond Sinking Fund (BSF), the Securities 20th century. In taxes and expenditures, fiscal policy has for its field of action matters that are within governmentâs Stabilization Fund (SSF) and the Special Guaranty Fund (SGF). Implements the policy of zero cash balance in the immediate control. The consequences of such actions are generally predictable: a decrease in personal taxation, for Treasury Vault by depositing all collections during the day to authorized government depository bank/s (AGDBs). example, will lead to an increase in consumption, which will in turn have a stimulating effect on the economy. Similarly, a Determines the correctness of interest credited by AGDBs to TOPâs account. (http://www.treasury.gov.ph/? reduction in the tax burden on the corporate sector will stimulate investment. Steps taken to increase government page_id=621) a. Aspects of Asset Management a.1 RIDD (Receipts, Investment and Disbursement Division) The spending by public works have a similar expansionary effect. Conversely, a reduction in government expenditure or an Receipts, Investment and Disbursement Division (RIDD) was formerly known as Fiscal Mangement Division (FMD) increase in tax revenues, without compensatory action, has the effect of contracting the economy.  ("Fiscal which was tasked with analysing the fiscal transactions of the National Government (NG) by translating them into Policy".Britannica Academic Edition. n.d.. Web. 19 May 2011) The Bureau of Treasury (BTr) manages the finances of weekly/monthly cash operations report to determine the deficit and magnitude of government borrowings. As an the government, by attempting to maximize revenue collected and minimize spending. The bulk of non-tax revenues offshoot of the structural and policy changes initiated by top management, the division was reorganized to comes from the BTrâs income. Under Executive Order No.449, the BTr collects revenue by issuing, servicing and concentrate solely on the efficient management of the National Governmentâs cash resources. The reorganization redeeming government securities, and by controlling the Securities Stabilization Fund (which increases the liquidity and was done through reassignment of personnel and regrouping of various sections/units so as to ensure a more stabilizes the value of government securities "The New Central Bank Act (RA 7653). ("Bangko Sentral ng focused span of attention by separating the transacting functions from accounting and statistical as well as to Pilipinas. Bangko Sentral ng Pilipinas; n.d.. Web. 20 May 2011. Web) through the purchase and sale of government strengthen internal control. In addition and in pursuance to Republic Act 7653, the custody and administration of the bills and bonds.  ("Mandate".Bureau of the Treasury Website.Bureau of the Treasury; n.d.. Web. 16 May 2011. Web) Bond Sinking Fund (BSF) and the Securities Stabilization Fund (SSF) was transferred to the Bureau of the Treasury Monetary policy, is the monitoring and control of money supply by a central bank, such as the Bangko Sentral ng effective July 1, 1995 and these was followed by the transfer of the Special Guaranty Fund (SGF) after a year. The Pilipinas. This is used by the government to be able to control inflation, and stabilize currency. Monetary policy is function of which delegated to the FMD. In 1999, by virtue of Executive Order 449 (EO 449) the whole bureau was considered to be one of the two ways at the government can influence the economy â the other one being Fiscal Policy. reorganized and FMD was renamed Receipts, Investment and Disbursement Division (RIDD), Monetary policy is generally the process by which the central bank, or government controls the supply and availability of (BTr.AssetManagementServiceManualOfOperations.p6-7) and responsible to manages the cash resources of the money, the cost of money, and the rate of interest. National Government; prepares daily cash position of NG; determines daily free and restricted balances of NG; (http://en.wikipedia.org/wiki/Monetary_policy_of_the_Philippines#cite_note-1) Under the New Central Bank Act of 1993, invests excess funds in high-yielding interest account to maximize interest income; keeps record of maturity schedule The Bangko Sentral ng Pilipinas or BSP performs as the central monetary authority of the Republic of the Philippines. It of all placements of NG fund; monitors daily debt service requirements of NG and other disbursements; replenishes provides policy directions in the areas of money, banking and credit and exists to supervise operations of banks and daily Government Servicing Banks (GSBs) for MDS negotiated checks; monitors all receipts/collections of NG; exercises regulatory powers over non-bank financial institutions. It keeps aggregate demand from growing rapidly prepares fund transfer tickets and investment tickets and forwards said documents to FTD for execution; with resulting high inflation, or from growing too slowly, resulting in high unemployment. manages/administers the cash resources of the Bond Sinking Fund (BSF), Securities Stabilization Fund (SSF), and (http://www.lawphil.net/administ/bsp/bsp.html) The primary objective of BSP's monetary policy is to promote price the Special Guaranty Fund (SGF); prepares daily/monthly/annual schedule of assets and liabilities of BSF/SSF/SGF stability because it has the sole ability to influence the amount of money circulating in the economy. In doing so, other by sinking fund (SF) by taking into consideration the annual contribution to SF and investments; invests excess cash economic goals, such as promoting financial stability and achieving broad-based, sustainable economic growth, are of BSF, SSF and SGF in higher yielding deposits.(http://www.treasury.gov.ph/?page_id=626) a.2 FVD (Funds given consideration in policy decision-making. (http://www.bsp.gov.ph/downloads/Publications/FAQs/targeting.pdf) II. Validation Division) The Fund Validation Division (FVD) was formerly names as Treasury Accounts Reconciliation Asset Management In line with Executive Order No. 449 dated October 17, 1997 âRealigning the organization of the Division (TARD). TARDâs then main function was reconciliation of the Treasury Accounts Current â Deposits (8-70Bureau of the Treasuryâ and in the light of the organizational changes embodied in this E.O, the Department of Budget 700), Treasury Warrants Disbursements (80-70-702) TCAA Check Disbursements (8-70-703) and other and Management approved on 06 February 1998 the detailed organizational structure of the BTr. The guidelines for disbursements (8-70-709) maintained by all government bureaus, offices and agencies having financial transactions implementing E.O no. 449 enumerate the composition of the Asset Management Service as follows: a) Receipts, with the National Treasury. This division was in charge of the preparation of Treasury Statements by agency and by Investment and Disbursement Division (RIDD), b) Cash and Cash Custodial Division (CCD), c) Fund Transfer Division fund. Based on these Treasury Statements given to the agency, the concerned agency in return submits (FTD) and d) Fund Validation Division (FVD). (BTr.AssetManagementServiceManualOfOperations.p6) In 1993, Reconciliation Statement to TARD. As part of its reconciling function, it issue adjusting journal vouchers and see to it Congress passed RA 7653 otherwise known as the New Central Bank Act, establishing an independent central monetary that entries are correctly posted in the appropriate subsidiary ledger. With implementation of the Modified authority called the Bangko Sentral ng Pilipinas. RA 7653 provided that the Department of Finance, through the Bureau Disbursement System (MDS) on March 1, 1990, disbursements thru Treasury Warrants and TCAA Checks were of the Treasury, shall assume the fiscal agency function of the then Central Bank of the Philippines within three (3) years superseded by disbursements thru MDS checks hence, accounts 8-70-702 and 8-70-703 were abolished. When and not beyond five (5) years from its approval. Among the fiscal agency functions of the then Central Bank of the Department of Finance Order No. 14-94 was issued on March 24, 1994 which simplified the system of depositing the Philippines was the custody and administration of the BSF and SSF which was transferred to the Bureau of Treasury. national collections to the Treasurer of the Philippines Accounts with Authorized Government Depository Banks and (BTr.AssetManagementServiceManualOfOperations.p10) The key role of Asset Management is to ensure the availability further simplified by DOF Order No. 52-96 dated May 22, 1996, TARD was tasked to reconcile the National of funds to finance National Governmentâs budgetary requirements. Maximizes the earnings of National Governmentâs Collections credited to TOP Account with that of the BTr Regional/Provincial monitored amount of deposited fund through timely and effective investment of idle cash balances in high yielding deposits. Administers and manages collections. However, the maintenance of subsidiary ledgers for all national government agenciesâ deposits and effectively the special purpose funds, namely: the Bond Sinking Fund (BSF), the Securities Stabilization Fund (SSF) and disbursements was continuously done by the National Government Accounts Division (NGAD) per Treasury Office the Special Guaranty Fund (SGF). Implements the policy of zero cash balance in the Treasury Vault by depositing all Order No. 7-96 dated January 17, 1996. Some of the TARD personnel were transferred to NGAD and the rest were collections during the day to authorized government depository bank/s (AGDBs). Determines the correctness of interest retained at TARD. With the issuance of Executive Order No. 449 on October 17, 1997, realigning the organization of credited by AGDBs to TOPâs account. (http://www.treasury.gov.ph/?page_id=621) a. Aspects of Asset Management a.1 the Bureau, TARD was renamed Fund Validation Division (FVD) and has been one of the divisions under the Asset RIDD (Receipts, Investment and Disbursement Division) The Receipts, Investment and Disbursement Division (RIDD) Management Service. Since the main function of FVD is to validate the total cash receipt (National Collections) and was formerly known as Fiscal Mangement Division (FMD) which was tasked with analysing the fiscal transactions of the total cash disbursement (MDS), the function of then Special Clearing Division (SCD) was absorbed by FVD. Treasury National Government (NG) by translating them into weekly/monthly cash operations report to determine the deficit and Personnel Order No. 16-98 was issued on February 17, 1998 reassigning some of the personnel of SCD to FVD. magnitude of government borrowings. As an offshoot of the structural and policy changes initiated by top management, (BTr.AssetManagementServiceManualOfOperations.p9-10) Consequently, Fund Validation Division is responsible the division was reorganized to concentrate solely on the efficient management of the National Governmentâs cash with the reconciliation of the deposited collections (bank reports with BTr regional offices) by: (a) matching the report resources. The reorganization was done through reassignment of personnel and regrouping of various sections/units so of deposited collections coming from the bank and thirteen (13) BTr regional offices as to amount and value date, (b) as to ensure a more focused span of attention by separating the transacting functions from accounting and statistical as verifying the differences noted in two reports by sending letter of confirmation to the Regional/Provincial Offices, (c) well as to strengthen internal control. In addition and in pursuance to Republic Act 7653, the custody and administration sending letter to the bank to credit TOP Account on uncredited national collections, and (d) checking that interest was of the Bond Sinking Fund (BSF) and the Securities Stabilization Fund (SSF) was transferred to the Bureau of the correctly computed; age national collections from the regional reports to determine: (1) amount collected on a specific Treasury effective July 1, 1995 and these was followed by the transfer of the Special Guaranty Fund (SGF) after a year. date, (2) date and collections were deposited to authorized government depository banks (AGDBs), (3) dishonoured The function of which delegated to the FMD. In 1999, by virtue of Executive Order 449 (EO 449) the whole bureau was items debited from TOP account and inform regions concerned to collect from collecting officer/local treasurer. In reorganized and FMD was renamed Receipts, Investment and Disbursement Division (RIDD), addition, FVD receives and logs regional and AGSB reports daily; matches daily summaries of Statements of (BTr.AssetManagementServiceManualOfOperations.p6-7) and responsible to manages the cash resources of the Accounts (SAs) submitted by Government Servicing Banks against the consolidated reports of SAs submitted by BTr National Government; prepares daily cash position of NG; determines daily free and restricted balances of NG; invests Regional offices; notifies the AGSB head office concerned of discrepancy between AGSB daily report and regional excess funds in high-yielding interest account to maximize interest income; keeps record of maturity schedule of all daily consolidated report; notifies BTr regional offices on unmatched items and other discrepancies on either or both placements of NG fund; monitors daily debt service requirements of NG and other disbursements; replenishes daily reports; summarizes SAs by allotment class and regions; submits reports to the Dept. of Budget & Management Government Servicing Banks (GSBs) for MDS negotiated checks; monitors all receipts/collections of NG; prepares fund (DBM) on summarized paid MDS checks classified by agencies and by banks; monitors paid MDS check releases to transfer tickets and investment tickets and forwards said documents to FTD for execution; manages/administers the local Government units and submit to OPS; submits reports to RIDD on paid MDS checks classified by GSBs. cash resources of the Bond Sinking Fund (BSF), Securities Stabilization Fund (SSF), and the Special Guaranty Fund (http://www.treasury.gov.ph/?page_id=629) a.3 FTD (Fund Transfer Division) The Fund Transfer Division (FTD) was (SGF); prepares daily/monthly/annual schedule of assets and liabilities of BSF/SSF/SGF by sinking fund (SF) by taking previously known as Debt Servicing Division (DSD) and Backpay Division. The merging of these divisions was the into consideration the annual contribution to SF and investments; invests excess cash of BSF, SSF and SGF in higher result of the implementation of Executive Order No. 449 (EO 449) which took effect on 17 October â1997. This law yielding deposits.(http://www.treasury.gov.ph/?page_id=626) a.2 FVD (Funds Validation Division) The Fund Validation was designed to realign the organization of the Bureau of the Treasury. The Fund Transfer Division serves as the Division (FVD) was formerly names as Treasury Accounts Reconciliation Division (TARD). TARDâs then main function back office support for Receipts, Investment and Disbursement Division (RIDD) through the preparation of letters-

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