TSA Implementation in Nepal Under SPFM Project

TSA Unit, FCGO

outline of presentation

TSA component under SPFM project Financial status major achievements current affairs challenges and way forward

Financing under SPFM Project

Component 1:

Implementation of Treasury Single Account (TSA) System

Sub Component :

1.1 Providing support for up-grading the

technological infrastructure to set up the

Core Treasury System

1.2 Providing support for further

enhancement of the information systems as

presently configured.

1.3 Technical Maintenance and support for

the Systems

1.4 Provide support for rolling out the TSA

to the remaining districts

1.5 Training

Budget & Expenditure Status

Total budget for the componentGoN US $ 1.0 mMDTF US $ 2.8 mTotal US $ 3.8 m

Total Expenditure: NRs.(up to FY 2068/69) Central level :54,239,232.00District level :42,255,954.10Total :96,495,177.10(equivalent in US$ 1,109,140)

Budget & Expenditure Status.....cont.

Budget approved for FY 2012/13: NRs

Recurrent : 17,500,000.00

Capital : 62,850,000.00

Total : 80,350,000.00

Additional Budget proposed to MOF

Recurrent : 42,100,000.00

Grand total : 122,450,000.00

(Equivalent US$ : 1,407,471.26)

Budget & Expenditure Status.....cont.

Budget & Expenditure Status.....cont.

Major Achievements

• TSA Rolled out in 60 Districts( covering more than 97 % transactions of receipts and 95 % of payments);

• Aggregate fiscal position is known daily(60 districts)

• Approximately 3,400 SUs out of a total of 4,500 SUs have been covered under TSA

• Approximately 12,517 out of 14,000 bank accounts have been closed

Major Achievements........cont.

• All 60 Districts have been connected with FCGO through Online system

• Out of 60 Districts, 20 Districts have been connected through Optical Fiber and rest of Districts have connected through ADSL line.

• Data Center (DC)having two high-configured servers with required accessories established in FCGO

• Data Recovery (DR) Center having one high-configured server with required accessories established in GIDC

Major Achievements........cont.• Approximately 3,760 employees including office chiefs, account chiefs, bank and DTCOs staffs have been oriented and trained.

• In comparison with FY 2009/10, in FY 2010/11, GoN paid approximately NRs 20 million less to the NEPAL RATRA BANK as bank commission.

• Hardware facilities have been upgraded.

Major Achievements........cont.

• DTCO staffs are better aware of the professional aspects

• Improved Fiscal discipline in DTCO and SU

• SU’s work simplified

• Ad hoc query and tailor made reports will be possible to generate

• Cash requirement forecast data is available

Current Affairs• Rolled out in 15 Districts from the next

FY 2070/71

• Installation of devices for digital

security in DR Center

• 38 TSA districts has been monitored and

it's results are found to be encouraging

• Performance based pay for DTCO staff is

under consideration in MOF

• Directives for financing on TSA is drafted

and to be ready for implementation

Challenges and Way Forward

• Total public sector data not available

• Capacity needs to be strengthened

• SU- level computerization still awaited

• Bank reconciliation needs strengthening (banks doing govt.transactions have no compatible software with TSA System)

Challenges and Way Forward ...cont.• Transactions other than budget book are not mapped

• e-Payments not possible due to lack of system and digital signatures

• core functionality of TSA is still ahead

• Failure of Power Supply( Increasing load shading up to 14 hours in a day)

• Interface with banks and SUs is needed

Thank you !