Use of Country Systems Armenia Use of State Treasury for Designated Accounts
Dec 14, 2015
Use of Country Systems
Armenia
Use of State Treasury for Designated Accounts
Entering point• CFAA and PEFA to identify weaknesses • Consistent dialogue and assessment of on-going
improvements in Treasury• Principal agreement to advance Treasury and transfer
all DAs/SAs• Many years of sustained work by the Bank team and
Government counterparts in building capacity in government systems (including IDF grants)
The transition process (1)1. MOF confirmed in writing that
1. all the Bank recommendations are complied with, 2. the changes in Treasury procedures and software had been
completed3. the system is ready for piloting.
2. The Bank assessed those arrangements and provided recommendations addressed before piloting.
3. MOF drafted a Note describing the funds flow procedures, which was agreed with the Bank.
The transition process (2)4. Two pilot projects DAs were transferred to the
Treasury based on evidence of completion of the previous two steps.
5. Bank monitored the piloting and provided new recommendations to make the system ready for wider transfer.
6. A time-bound transition plan was developed for transfer of all the DAs/SAs.
Key Results• Online Treasury Client system is now used for all
Bank-financed projects (all payments processed within one day!)
• This system is now available for all other budget programs
• Substantial operating expense savings achieved for projects (bank fees/charges)
• Improved cash management and financial savings to the Government
• Enhanced government ownership
What is coming next?
These require broader reforms and
substantial capacity building
Budgeting
Accounting
Financial Reporting Internal
Auditing
External Auditing
Government financial management information system (GFMIS)