Duties and Responsibilities

 Duties and Responsibilities

The Article 7 of the Public Finance and Expenditure Management Law (PFEML) specifies the role of the Treasury in the following terms: In order to carry out the relevant affairs, the Treasury of the Ministry of Finance shall have the following responsibilities and authorities:

  • Implementing and managing the treasury bank accounts and payment procedures, which include the Treasury Single Account and official bank accounts through defining the Treasury Single Account structure of accounts and sub accounts, and ensuring necessary cooperation for activating treasury accounts including opening and closing bank accounts.
  • Implementing financial plans.
  • Managing cash assets.
  • Implementing the budget and performing expenditure controls in accordance with revenue and expenditure plans and providing information pertaining to funds, assets and commitments, appropriations and allotments in accordance with the provisions of this law and other Treasury instructions.
  • Maintaining the Treasury General Ledger and recording transactions according to budget classification and accounting rules compliant with internationally accepted standards and principles.
  • Providing regular reports on the implementation of the State’s budget and other financial matters for the Ministry of Finance.
  • Upon the confirmation of the Ministry of Finance, issuing necessary instructions covering the relevant affairs.
  • Performing management for the debts of the state.
  • Compilation of the annual accounts of the financial operations of state including appropriation accounts and financial statements.
  • Managing and controlling the affairs related to processing of expenditures and other treasury related responsibilities in the Mustofiats of centre and provinces, performing other responsibilities delegated in accordance with provisions of this law.

 Mission Statement

                                                                             

  • The Treasury is the key government unit in charge of organization of the government financial management according to the appropriated budget. The Treasury accomplishes these tasks through custody of all public monies during the receipt and payment process. Critical tasks here are ensuring fast and efficient collection of all monies due to the government and prompt payment of the bills of the government.
  • An accounting system aids Treasury to ensure controls and information to management about the status of government finance. It also provides critical information for internal and external users on the development of the government’s financial position and collections and payments performance against the budget. External users may use government fiscal data for economic analysis and assessing government accountability. Critical management information is important for cash and debt management concentrated in the financial asset and liability management sections of the Treasury.
  • The Treasury in will ensure proper accountability during broad delegation of financial management tasks to line ministries, provincial Mustofiats, and government units countrywide taking into account the objectives of improving the efficiency of the government operations. The government financial asset and liability management matters along with the analytical functions represent another important part of the Treasury allowing it to achieve reduction of cost and increasing return on the government assets.

 Treasury Processes in brief

Specifically, the Treasury executes its tasks through:

  • Receiving from the Budget Department budget appropriations and allotments and entering these into the Treasury ledger.
  • Maintaining arrangements for collecting all government revenue on the Treasury Single Account in DAB and making arrangements with international donors to manage the grants and loans given to the Government of Afghanistan.
  • Processing payments from the Treasury Single Account in DAB and respective accounts opened in agreement with foreign donors applying adequate payment controls including the control for budget appropriations and allotments.
  • Recording all transactions into the Treasury general ledger based on Afghanistan Financial Management Information System (AFMIS) based on Free Balance government financial accountability software, applying adequate accounting controls, and producing reports from AFMIS.
  • Providing official notification to provincial Mustofiats for the allotments issued for the government units in provinces and transferring cash resources to the Mustofiat bank account to enable the necessary payments.
  • Collecting reports on revenues collected and expenditures processed in Mustofiats, posting these payment transactions to the Treasury general ledger, and exercising cash controls over the Mustofiat operations.
  • Reconciling Treasury records with the line ministries, DAB, and international donors.
  • Producing budget statements and financial statements according to the legal requirements and agreements with donors.
  • Reporting monthly and at the end of every year on the government budget performance and financial situation.
  • Managing government debt, including accounting for the debt received, disbursed, and principal, interest, and charges paid.
  • Preparing cash projections and cash plans to ensure sufficient funds for normal government payments.
  • Developing new procedures and regulations on financial management, accounting, and reporting and providing training to government officials on the procedures and financial management requirements.
  • Ensuring operation of the computer system for the government financial management information (AFMIS) to maintain government accounts.

 Reform Agenda

The Treasury focuses on the following challenges while pursuing important financial management reforms:

  • Improving payment and accounting services based on best international practices in the Treasury offices in the center and in provinces.
  • Ensuring timely and accurate budget implementation closely coordinated with the cash availability.
  • Promoting prompt settlement of all government payment obligations.
  • Ensuring timely payment of salaries to verified government employees in full amount and according to the approved budget and establishment.
  • Restructuring government financial management arrangements to ensure efficient implementation of government policies and reducing unnecessary administrative burden, while processing financial transactions.
  • Improving the relevance, reliability, timeliness, and comprehensiveness of the financial reporting based on international standards.
  • Ensuring adequate financial accountability of the managers of government units.
  • Improving the accountability for the government assets.
  • Developing and implementing policy in government banking arrangements based on the Treasury Single Account system.
  • Ensuring efficient use of government financial assets and adequate servicing of the national debt.
  • Computerizing manual processes in government financial management and ensuring normal access to the computerized accounting facilities.
  • Providing clear guidance to the financial managers of the government law, regulations, and procedures in accounting and financial management.
  • Ensuring improved financial management capacity of government units in the center and provinces.
  • Building strong and capable civil service based staff of the Treasury in the center and provinces.
  • Promoting the development of the government accounting profession.
  • Payment of Salaries For all Government Official and Contractor.