The role of TSA consists to concentrate all Government funds on one account for its proper management. In other words, it is an instrument put in place in order to control Government finance resources and expenditures. It ensures complete, real time information on government cash resources and improves operational and appropriations control.
Implementation of zero balance drawing system which started in 2005:
. All ministries and budget agencies’ accounts are held in the National Bank of Rwanda,
. The above accounts held as sub accounts of the Main Treasury Single Account (TSA).
.At the end of each fiscal year, balances on the above accounts are transferred to the TSA as a legal requirement (Year end procedures according to the Organic Law)
This implies that all Ministries and Budget Agencies are expected to begin a new fiscal year with zero cash balance on their accounts.
The Detailed process:
· A monthlycash transfer is done to ministries & budget agencies’ bank accounts.
·The amount to transfer is based on cash flow plan approved by Treasury management committee (TMC):
·Ministries and budget agencies are allowed to issue checks, other payments up to the cash balance on their accounts.
·At the end of each business day the balance will be reduced by the value of debit transactions (out flows)
·At the end of each working day, the available balances are transferred to the STA to be returned to the budget users’ accounts in the following day.
Procedures for openning a bank account:
·Write to the Ministry of Finance and Economic Planning an official request to open a Bank account.
·Attach to the request letter, the loan agreement between the Republic of Rwanda and the donor for which the new bank account is required; the loan/grant's negotiation procedures must comply with the Government aid policy.
·Attach to the request letter, the law or cabinet decision establishing the institution if it is new;
·Examine the need to open a new bank account,
·Check whether the entity already holds an account whose operations are related to the one to be opened.
·Complete the required form from National Bank of Rwanda for opening a bank account.
Note.The closure of unused bank account requires authorization from the Ministry of Finance and Economic Planning
Treasury End of year procedures
Art. 69 of Organic Law defines end of year procedures on revenue and Expenditures
. 15th May of each fiscal year, end Commitments.
. All Commitments (OPs) to reach Treasury by 15th June
. 30th June is the final day of payment in each fiscal year.
Transferring account balances to GoR Treasury A/C
. On every 30th June, balances on all accounts are swept into a special account
. Ministries, Agencies and Districts (MDAs) are allowed to declare all checks in transit and Donor funds on this A/c
. Refunds are made to cater for such requests.
. On every 30th July, the remaining balance is transferred to GoR Treasury A/c; no more claims can be honored.
. Embassies are required to make transfers to National Treasury after receiving their first quarter transfers. They are also expected to provide their respective bank statement as at 30th June.