bureau of the treasury

I. Bureau of the Treasury (BTr)

The Bureau of the Treasury is one of four (4) bureaus under the Philippines 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 The Bureau of the Treasury (BTr). 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 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 undertaking the issuance, registration, redemption, and interest payment of central government bonds and treasury bills. (http://www.cbc.gov.tw/public/Attachment/861916365671.pdf)

b. Fiscal Policy vs. Monetary Policy

Fiscal policy, measures employed by governments to stabilize the economy, specifically by manipulating the levels and allocations of taxes and government expenditures. Fiscal measures are frequently used in tandem with monetary policy to achieve certain goals. The usual goals of both fiscal and monetary policy are to achieve or maintain full employment, to achieve or maintain a high rate of economic growth, and to stabilize prices and wages. The establishment of these ends as proper goals of governmental economic policy and the development tools with which to achieve them are products of the 20th century.Intaxesand expenditures, fiscal policy has for its field of action matters that are within governments immediate control. The consequences of such actions are generally predictable: a decrease in personaltaxation, 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 BTrs income. Under Executive Order No.449, the BTr collects revenue by issuing, servicing and redeeming government securities, and by controlling the Securities Stabilization Fund (which 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. 16 May 2011. Web)Monetary policy, is the monitoring and control of money supply by a central bank, such as the Bangko Sentral ng Pilipinas. This is used by the government to be able to control inflation, and stabilize currency. Monetary policy is considered to be one of the two ways at the government can influence the economy the other one being Fiscal Policy. Monetary policy is generally the process by which the central bank, or government controls the supply and availability of money, the cost of money, and the rate of interest. (http://en.wikipedia.org/wiki/Monetary_policy_of_the_Philippines#cite_note-1) Under the New Central Bank Act of 1993, The Bangko Sentral ng Pilipinas or BSP performs as the central monetary authority of the Republic of thePhilippines. It provides policy directions in the areas of money, banking and credit and exists to supervise operations of banks and exercises regulatory powers overnon-bank financial institutions. It keepsaggregate demandfrom growing rapidly with resulting high inflation, or from growing too slowly, resulting in highunemployment. (http://www.lawphil.net/administ/bsp/bsp.html)The primary objective of BSP's monetary policy is to promote price stability because it has the sole ability to influence the amount of money circulating in the economy. In doing so, other economic goals, such as promoting financial stability and achieving broad-based, sustainable economic growth, are given consideration in policy decision-making. (http://www.bsp.gov.ph/downloads/Publications/FAQs/targeting.pdf)

II. Asset Management

In line with Executive Order No. 449 dated October 17, 1997 Realigning the organization of the Bureau of the Treasury and in the light of the organizational changes embodied in this E.O, the Department of Budget and Management approved on 06 February 1998 the detailed organizational structure of the BTr.

The guidelines for implementing E.O no. 449 enumerate the composition of the Asset Management Service as follows: a) Receipts, Investment and Disbursement Division (RIDD), b) Cash and Cash Custodial Division (CCD), c) Fund Transfer Division (FTD) and d) Fund Validation Division (FVD). (BTr.AssetManagementServiceManualOfOperations.p6)

In 1993, Congress passed RA 7653 otherwise known as the New Central Bank Act, establishing an independent central monetary authority called the Bangko Sentral ng Pilipinas. RA 7653 provided that the Department of Finance, through the Bureau of the Treasury, shall assume the fiscal agency function of the then Central Bank of the Philippines within three (3) years and not beyond five (5) years from its approval. Among the fiscal agency functions of the then Central Bank of the Philippines was the custody and administration of the BSF and SSF which was transferred to the Bureau of Treasury. (BTr.AssetManagementServiceManualOfOperations.p10)The key role of Asset Management is to ensure the availability of funds to finance National Governments budgetary requirements. Maximizes the earnings of National Governments fund through timely and effective investment of idle cash balances in high yielding deposits. Administers and manages effectively the special purpose funds, namely: the Bond Sinking Fund (BSF), the Securities Stabilization Fund (SSF) and the Special Guaranty Fund (SGF). Implements the policy of zero cash balance in the Treasury Vault by depositing all collections during the day to authorized government depository bank/s (AGDBs). Determines the correctness of interest credited by AGDBs to TOPs account. (http://www.treasury.gov.ph/?page_id=621)

a. Aspects of Asset Management

a.1RIDD (Receipts, Investment and Disbursement Division)

The Receipts, Investment and Disbursement Division (RIDD) was formerly known as Fiscal Mangement Division (FMD) which was tasked with analysing the fiscal transactions of the National Government (NG) by translating them into weekly/monthly cash operations report to determine the deficit and magnitude of government borrowings. As an offshoot of the structural and policy changes initiated by top management, the division was reorganized to concentrate solely on the efficient management of the National Governments cash resources. The reorganization was done through reassignment of personnel and regrouping of various sections/units so as to ensure a more focused span of attention by separating the transacting functions from accounting and statistical as well as to strengthen internal control. In addition and in pursuance to Republic Act 7653, the custody and administration of the Bond Sinking Fund (BSF) and the Securities Stabilization Fund (SSF) was transferred to the Bureau of the Treasury effective July 1, 1995 and these was followed by the transfer of the Special Guaranty Fund (SGF) after a year. The function of which delegated to the FMD.

In 1999, by virtue of Executive Order 449 (EO 449) the whole bureau was reorganized and FMD was renamed Receipts, Investment and Disbursement Division (RIDD), (BTr.AssetManagementServiceManualOfOperations.p6-7) and responsible to manages the cash resources of the National Government; prepares daily cash position of NG; determines daily free and restricted balances of NG; invests excess funds in high-yielding interest account to maximize interest income; keeps record of maturity schedule of all placements of NG fund; monitors daily debt service requirements of NG and other disbursements; replenishes daily Government Servicing Banks (GSBs) for MDS negotiated checks; monitors all receipts/collections of NG; prepares fund transfer tickets and investment tickets and forwards said documents to FTD for execution; manages/administers the cash resources of the Bond Sinking Fund (BSF), Securities Stabilization Fund (SSF), and the Special Guaranty Fund (SGF); prepares daily/monthly/annual schedule of assets and liabilities of BSF/SSF/SGF by sinking fund (SF) by taking into consideration the annual contribution to SF and investments; invests excess cash of BSF, SSF and SGF in higher yielding deposits.(http://www.treasury.gov.ph/?page_id=626)

a.2FVD (Funds Validation Division)

The Fund Validation Division (FVD) was formerly names as Treasury Accounts Reconciliation Division (TARD). TARDs then main function was reconciliation of the Treasury Accounts Current Deposits (8-70-700), Treasury Warrants Disbursements (80-70-702) TCAA Check Disbursements (8-70-703) and other disbursements (8-70-709) maintained by all government bureaus, offices and agencies having financial transactions with the National Treasury. This division was in charge of the preparation of Treasury Statements by agency and by fund. Based on these Treasury Statements given to the agency, the concerned agency in return submits Reconciliation Statement to TARD. As part of its reconciling function, it issue adjusting journal vouchers and see to it that entries are correctly posted in the appropriate subsidiary ledger.With implementation of the Modified Disbursement System (MDS) on March 1, 1990, disbursements thru Treasury Warrants and TCAA Checks were superseded by disbursements thru MDS checks hence, accounts 8-70-702 and 8-70-703 were abolished.When Department of Finance Order No. 14-94 was issued on March 24, 1994 which simplified the system of depositing the national collections to the Treasurer of the Philippines Accounts with Authorized Government Depository Banks and further simplified by DOF Order No. 52-96 dated May 22, 1996, TARD was tasked to reconcile the National Collections credited to TOP Account with that of the BTr Regional/Provincial monitored amount of deposited collections.However, the maintenance of subsidiary ledgers for all national government agencies deposits and disbursements was continuously done by the National Government Accounts Division (NGAD) per Treasury Office Order No. 7-96 dated January 17, 1996. Some of the TARD personnel were transferred to NGAD and the rest were retained at TARD.With the issuance of Executive Order No. 449 on October 17, 1997, realigning the organization of the Bureau, TARD was renamed Fund Validation Division (FVD) and has been one of the divisions under the Asset Management Service.Since the main function of FVD is to validate the total cash receipt (National Collections) and total cash disbursement (MDS), the function of then Special Clearing Division (SCD) was absorbed by FVD. Treasury Personnel Order No. 16-98 was issued on February 17, 1998 reassigning some of the personnel of SCD to FVD. (BTr.AssetManagementServiceManualOfOperations.p9-10)Consequently, Fund Validation Division is responsible with the reconciliation of the deposited collections (bank reports with BTr regional offices) by: (a) matching the report of deposited collections coming from the bank and thirteen (13) BTr regional offices as to amount and value date, (b) verifying the differences noted in two reports by sending letter of confirmation to the Regional/Provincial Offices, (c) sending letter to the bank to credit TOP Account on uncredited national collections, and (d) checking that interest was correctly computed; age national collections from the regional reports to determine: (1) amount collected on a specific date, (2) date and collections were deposited to authorized government depository banks (AGDBs), (3) dishonoured items debited from TOP account and inform regions concerned to collect from collecting officer/local treasurer.In addition, FVD receives and logs regional and AGSB reports daily; matches daily summaries of Statements of Accounts (SAs) submitted by Government Servicing Banks against the consolidated reports of SAs submitted by BTr Regional offices; notifies the AGSB head office concerned of discrepancy between AGSB daily report and regional daily consolidated report; notifies BTr regional offices on unmatched items and other discrepancies on either or both reports; summarizes SAs by allotment class and regions; submits reports to the Dept. of Budget & Management (DBM) on summarized paid MDS checks classified by agencies and by banks; monitors paid MDS check releases to local Government units and submit to OPS; submits reports to RIDD on paid MDS checks classified by GSBs.(http://www.treasury.gov.ph/?page_id=629)

a.3FTD (Fund Transfer Division)

The Fund Transfer Division (FTD) was previously known as Debt Servicing Division (DSD) and Backpay Division. The merging of these divisions was the result of the implementation of Executive Order No. 449 (EO 449) which took effect on 17 October 1997. This law was designed to realign the organization of the Bureau of the Treasury. The Fund Transfer Division serves as the back office support for Receipts, Investment and Disbursement Division (RIDD) through the preparation of letters-authority on a daily basis. This covers the replenishment of paid MDS checks, contributions to bond sinking fund, placement and roll-over of time deposits, transfer of funds from one AGDBs/AGSBs and from one deposit account to one particular bank thru Electronic Fund Transfer Instruction System (EFTIS). All transactions done daily are confirmed regularly with Authorized Government Depository Bank (AGDBs) back office. Prepares letter-authority covering refinancing of CB BOL accounts and servicing of foreign and domestic maturities. Processes/issues Acknowledgement Certificates of indebtedness under RA Nos. 304/897 and 369, representing back pay and emergency guerrilla currency Notes claims respectively. Prepares/processes disbursement vouchers covering budgetary support to government owned and/or controlled corporations and government financial institutions. Monitors Bond Sinking Fund investments as well as its income (by holder of the fund). (BTr.AssetManagementServiceManualOfOperations.p7)

a.4CCD (Cash and Custodial Division)

In the not so distant past, the Cash Division was considered as the face of the Bureau of the Treasury. This was so, because of the functions then of the Cash Division which were the encashment of Treasury Warrants A particularly for the salaries of teachers and military personnel and the receipt of national collections from the collecting officers of the different agencies in Metro Manila. In those times, the average cash that was being maintained in the Treasury Vault to meet the encashment requirements averaged from about P30 Million to P50 Million a day.But in the course of time, gradually, the direction of the mandate of the Bureau had changed and the functions of the Cash Division were greatly affected. The implementation of the Modified Disbursement system in 1990 was the beginning of the great change of the function of the Cash Division and this was the shift from the Treasury Warrant system to the MDS Check system of disbursement of the National Government. Sometime in 1989 and as a result of Administrative Order No. 14 and Proclamation No. 50 which approved the identification of and transfer to the National Government of certain assets and liabilities of the Development Bank of the Philippines, Philippine National Bank, Philguarantee and the National Development Company, the Cash Division was made to undertake the administration of these transferred assets from these financial institutions which consisted mainly of Land Bank bods and other government securities.In November of 1993, the functions of the Cash Receipts and Disbursement Section of the then General Services (now Facilities and Maintenance Division) were assumed by the Cash Division and the personnel of the said unit were also transferred to the Cash Division.Also, in the later part of 1993, the encashment of checks at the Cash Division of individuals particularly BTR employees was discontinued under Treasury Office Order No. 35-93 dated October 26, 1993 for reason of Risk Avoidance. In 1994, another great change happened and this was the introduction of the New Remittance System. This is the deposit of the collections of the National Collecting officers to the Authorized Government Depository Banks (AGDBs) nearest their place of assignment instead of remitting their collections at the Cash Division. As a result, in August of 1995, acceptance of deposits at the Cash Division was discontinued except for Government Owned and Controlled Corporations remitting for guarantee fees, qualifying fees, repayment, repayment of advances and other collections mandated by law to be directly remitted to the Bureau of the Treasury. (BTr.AssetManagementServiceManualOfOperations.p8)Therefor the key responsibilities of this division is to administers the receipt, custody of securities (NG ownership and for safekeeping); monitors the interest coupons of these securities credited to the account of the Treasurer of the Philippines every interest payment dates; surrenders the securities to issuer upon maturity for payment; collects and issues official receipts to government owned and controlled corporations remittances pertaining to payment of advances, guarantee fees, dividends and other collections mandated by law to be remitted directly to the Bureau of the Treasury; collects parking fees at the Ayuntamiento property; issues MDS checks for BTr disbursements (for BTr operations and equity/subsidy support to GOCCs); LBP commercial checks for trust fund and auction expenses and for payment of back pay claims under RA Nos. 304, 897 and 369; issues certification on various contributions of BTr personnel.(http://www.treasury.gov.ph/?page_id=634)

b. Bond Sinking Fund / General Fund

Bond Sinking Fund

General FundGeneral Fund is the Chief operating fund of government. Used to account for all of the resources except those required to be accounted for in another fund. (http://www.kirkwoodmo.org/mm/files/governmental-accounting.pdf)General Funds are funds available for any purpose that Congress may choose to apply, and is composed of all receipts or revenues that do not otherwise accrue to other funds. (http://pfm.gov.ph/files/uacs_manual1.pdf)

III. Liability Management

Under Section 1 of R.A 245, as amended and R.A 1000, as amended, the Secretary of Finance with the approval of the President of the Philippines and in consultation with the Monetary Board, is authorized to borrow such sums as may be necessary to meet public expenditures, through the issuance of Treasury Bills and Bonds. R.A 245 provided that the fiscal agency function of issuing Treasury Bills and Bonds shall be with the Central Bank of the Philippines.In 1993, Congress passed R.A 7653, otherwise known as the New Central Bank Act, establishing an independent central monetary authority called the Bangko Sentral ng Pilipinas. R.A 7653 provided that the Department of Finance, through the Bureau of the Treasury, shall assume, among others, the fiscal function of issuing Treasury Bills and Bonds and that all fiscal agency functions of the Central Bank of the Philippines shall be transferred to the Department of Finance within three (3) years and not yet beyond five (5) years from its approval.The Department of Finance through the Bureau of the Treasury assumed the fiscal functions of issuing Treasury Bills and Bonds effective November 20, 1995. The formal assumption of this responsibility resulted in the inauguration of two revolutionary policy and operation reforms:a. The electronic auction of gs by accredited network of Government Securities Eligible Dealers (GSEDs) and,b. The issuance of scripless or uncertified gs.A big portion of the domestic debt functions i.e, issuance, servicing and redemption of gs was absorbed by the Liability Management Service (LMS). Manpower from collapsed divisions were redeployed to this Service to form two (2) new divisions.The Securities Origination Division (SOD) was created to handle the flotation of gs in the primary market through the electronic auction and over-the-counter (OTC) mode.On November 4, 1996, BTr complimented the policy of issuing scripless gs by inaugurating an official Registry of Scripless Securities (RoSS). Given that there are no physical certificates to evidence ownership of investors, an electronic registry must exist to prove ownership and other forms of rights on scripless gs both in the primary and secondary markets. Thus, another group of redeployed personnel were banded together to form the Scripless Securities Registration Division (SSRD) under the LMS to administer the RoSS. Meanwhile, the functions of the other two (2) existing divisions in the Service, namely: the Payments Division (PD) and the Debt Monitoring and Analysis Division (DMAD) were expanded to encompass backroom operations for the origination, servicing and redemption of gs and for the monitoring and management of external debts of the NG, respectively. (BTr.LiabilityManagementServiceManualOfOperations.p9)Consequently, Liability Management undertakes functions which interlink with revenue and expenditure operations of the government; renders assistance on matters involving policy formulation and rationalization of public borrowings, management of borrowed funds; participates in the programming, structuring and timing of borrowing proposals in close coordination with the Bangko Sentral ng Pilipinas and the Department of Budget and Management; renders assistance to government agencies, corporations and financial institutions on matters pertaining to loan proceeds; monitors data on availments, repayments and status of the public debt; maintains inventory of documents on various public sector external liabilities transferred to the National Government (NG).(http://www.treasury.gov.ph/?page_id=676)

a. The Liability Management function of the Bureau of Treasury is discharged by the following divisions:

a.1Securities Origination Division (SOD)

The Securities Origination Division (SOD) is tasked with the responsibility, among others, of providing staff support to the Auction Committee (AC) in conducting the electronic auction of government securities. It is mainly responsible for operating the Automated Debt Auction Processing System (ADAPS). It is in-charge also of processing gs transactions of GSEDs, Government-Owned and Controlled Corporations (GOCCs), Tax-Exempt Institutions (TEIs) and Local Government Units (LGUs) thru the Tap Facility and Over-the-Counter Windows for gs issuance.

a.2Scripless Securities Registration Division (SSRD)

The Scripless Securities Registration Division (SSRD) is responsible for the registration of ownership and transfers of scripless gs both in the primary and secondary markets, clearing and settlement of secondary market trades of dealers and maintaining a complete repository of all the holders of scripless gs.

a.3Payments Division (PD)

The Payments Division (PD) is responsible for documenting and recording all domestic obligations of the National Government i.e., transactions in gs, the servicing, redemption, provision of sinking fund contributions on domestic debt issuances and data analysis. It likewise provides backoffice or support operations for the primary issuance of gs.

a.4Debt Monitoring and Analysis Division (DMAD)

The Debt Monitoring and Analysis Division (DMAD) is involved in the management of foreign loan obligations of the National Government, monitoring of outstanding loan availments/repayments and compliance with ceilings on direct and guaranteed obligations as required under R.A. 4860, as amended, servicing of foreign obligations and other pertinent documents concerning external debts. (BTr.LiabilityManagementServiceManualOfOperations.p10-11)

b. Registry of Scripless Securities (RoSS)

Registry of Scripless Securities (RoSS) is the official registry of absolute ownership, legal or beneficial titles or interest in GS (Treasury Bills and Treasury Bonds). Upon award of GS to a GSEDs at the auction, the securities award are electronically downloaded to the RoSS system. On issue date the Principal Securities Account of GSED are credited of the winning bids.The GS trades are entered by both parties in their respective trading terminals using their confidential identification and password and to activate the system and authorize every transfer instruction between 9:30 a.m. to 1:30 p.m. The RoSS system checks the securities in the sellers securities account and earmark these for transfer. The system then sends an electronic settlement file to BSP containing the amount to be debited and credited to the Regular Demand Deposit Account (RDDA) of the buyer and seller. Once settlement were processed, the BSP Philippine Payment and Settlement System (PhilPASS) will send back a file message that settlement were done and the RoSS system will now transfer the earmark securities from the seller securities account to the buyer securities account. A Posted message will then send back by RoSS to the system provided.Securities and cash settlement of gs transaction to the secondary market is done via DVP on a Real Time Gross trade for trade basis. Cut-off time for peso funding in the Philippine Payment and Settlement System (PhilPASS) is until 2:00 p.m. All transaction which have been unsettled after the 2:00 p.m. cut-off time will be declared failed transaction and the earmarking on the company securities at RoSS will be lifted. (http://www.treasury.gov.ph/?page_id=1430#top)

c. Automated Debt Auction Processing System (ADAPS)

Automated Debt Auction Processing System (ADAPS) is an electronic mode by which the National Government sells government securities to a network of GSEDs which are linked to the BTr through BIS every Monday for Treasury Bills and every second and fourth Tuesday for Treasury Bonds, whereby GSEDs tender their bids (both competitive and non-competitive) by keying-in the amount (minimum of P10.0 M) and yield of their choice (for a maximum of seven (7) competitive bids and one (1) non-competitive bid per tenor for any amount above P10.0 M) using a BIS terminal in the GSED office. Within seconds the bids are arrayed by the System in the terminals of the BTr. After the cut-off time of 1:00 P.M. the array is viewed by the Auction Committee which then decides on the award. The award is keyed-back to the respective terminal of GSEDs.Two days after the auction, the government securities are credited to the Securities Principal Account of the GSED in the Registry of Scripless Securities (RoSS) and the Demand Deposit Account of the GSED at Bangko Sentral ng Pilipinas is debited in favor of the Treasurer of the Philippines for the cost of the government securities awarded to the GSED concerned. This completes the trade in the primary market (from the issuer the National Government to the licensed dealers or GSEDs). This is also known as origination of GS.(http://www.treasury.gov.ph/?page_id=1430#top)

d. DMFAS

The DMFAS Programme works directly with more than 60 low- and middle-income States, whose economies account for more than $500 billion of outstanding public and public-guaranteed long-term debt, approximately 40 per cent of the total long-term debt of all developing countries. (http://unctad.org/en/Pages/GDS/Debt%20and%20Development%20Finance/Debt-Management-and-Financial-Analysis-System-(DMFAS).aspx)

IV. BTr Central Accounting Function

Directs and supervises accounting for all receipts and disbursements of the national government which include national collections and budgetary expenditures, foreign and domestic obligations, including back pay and emergency currency notes; computes guarantee fees and interest on advances and the preparation of billings/collection statements; accounts for the liabilities transferred to National Government (NG); maintains subsidiary ledger accounts; prepares financial statements/reports for submission to proper authorities.(http://www.treasury.gov.ph/?page_id=664)

a.Functions:

a.1NCAD (National Cash Accounting Division)

Accounts for all receipts and disbursements of funds of the National Government (NG); reconciles cash accounts with the Bangko Sentral ng Pilipinas and other Authorized Government Depository Banks (AGDBs); prepares the corresponding Monthly Reconciliation Statements; prepares Daily Cash Statement (showing the cash position of NG), Monthly Trial Balance and other reports required by the fiscal authorities; prepares Notice of Fund Availability of proceeds of foreign loans and grants for submission to the Department of Budget and Management and to implementing agencies.(http://www.treasury.gov.ph/?page_id=666)

a.2MAAD (Miscellaneous Accounts Accounting Division)

Accounts for the receipts and disbursements of miscellaneous accounts such as (a) collections of guarantee fee, forex cover fee, grants/donations, interest on TOP deposit accounts, NG share in Duty Free Shops, NAIAA, and PAGCOR, terminal fees, dividends, LBP remittances of land and loan amortizations of farmers-beneficiaries of CARP, proceeds from privatization of sale of military camps and sale of transferred/sequestered assets (APT/PCGG/BCDA remittances), fidelity bond premium, trust deposits for the account of PCGG, and BSF/SSF/SGF investments and disbursements, and (b) releases to GOCCs/GFIs of NG i.e. subsidy, equity, and loans outlay; monitors the following accounts/transactions and send billing letters to the concerned GOCCs/GFIs i.e. dividends, advances, interest on advances, and guarantee fee; prepares financial statements for funds 104,105,151,152,158,170 and 770 and reports regarding the abovementioned transactions as well as on NG net lending to GOCCs/GFIs and collections of interest on advances.(http://www.treasury.gov.ph/?page_id=670)

a.3NGDAD (National Government Debt Accounting Division)

Accounts for all receipts and disbursements pertaining to foreign obligations as well as liabilities transferred to NG and Bond Conversion transactions; accounts for all domestic security transactions (including expenses incurred by the Security Operations Group) and assumed liabilities of NG including redemption of Back pay, billing/collection of NG advances, and offsetting of accounts subsisting between and among government agencies/units. (http://www.treasury.gov.ph/?page_id=668)16 | Page