“Clasificaţia bugetară şi Planul de Conturi”

The Republic of Moldova
MINISTRY OF FINANCE
STATE TREASURY
Management , accounting
and reporting of externally
financed projects
2
Regulatory framework
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International agreements
Decision by Parliament on ratification of international
agreements
Public Debt Law, Law on Government Guarantees and Law
on Government On-Lending
Budget System & Budget Process Law
State Budget Law; Decisions by Local Authorities approving
annual local budgets (for a given year)
Regulation on institutional framework and mechanism for
coordinating assistance by international donor
organizations and donor countries to the Republic of
Moldova (Government Decree)
3
Externally financed projects and the budget
process

Budget planning
100%

Execution:
- through Treasury System 53.1%
- through the Banking System
46.9%

Reporting
100%
4
Budget Planning
Components of state and local budgets:
 Core component
 Special means
 Special funds
 Externally financed projects
5
Share of externally funded projects in the
budget (revenues)
Budget
components
State budget
Local budgets
MDL
mln.
USD mln.
Удел
Amount
ьный MDL mln USD mln
вес,
%
Core component
14455.4
1189.4
87.3
7034.6
578.8
93.2
Special means
1093.5
90.0
6.6
302.0
24.8
4.0
Special funds
281.3
23.1
1.7
90.8
7.5
1.2
726.8
Externally
financed projects
59.8
4.4
124.2
10.2
1.6
Total
1362.3
100
7551.6
621.3
100
Amount
16557.0
Share,
%
6
The share of externally funded projects in the
budget (expenditure)
Budget
components
State budget
Local budgets
Amount
MDL mln
USD mln
Core
component
16863.2
1387.5
Special means
1217.0
Special funds
Share ,
%
Amount
Share,
%
MDL mln
USD mln
84.2
7435.0
611.7
92.2
100.1
6.1
344.7
28.4
4.3
291.2
24.0
1.5
98.8
8.1
1.2
Externally
funded projects
1653.1
136.0
8.2
186.5
15.3
2.3
Total
20024.5
1647.6
100
8065.0
663.5
100
7
Budget Planning
State Budget Law for 2012
Article 21. – The Ministry of Finance is in the right to:
а) - upon application of key budget ministries - change
the approved state budget allocations:
- For projects funded out proceeds of foreign grants
and credit,
- as well as to use the remaining balances of monetary
resources sitting in project accounts at the beginning
of a year 8
Implementation of externally financed
projects
Budget
Externally
Financed
Projects
Treasury
System
Treasury &
Banking
Systems
Banking
Systems
State
budget
40
12
11
17
Local
budgets
бюджеты
8
8
-
-
Total
48
20
11
17
9
Rules of providing treasury system services to
externally financed projects
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Separate Bank and Treasury accounts for each donor in foreign &
local currencies
Interest on balances - in bank accounts – that are recorded to
local budgets
Expenditure for servicing bank account that are paid by state/
local budgets
Procurements made as per available contracts
Contracts registered with a local treasury
Prioritized servicing of projects
10
Providing treasury system services to
externally financed projects
Treasury
Project implementation units
of externally financed projects
Commercial
bank
Enterprises
11
Current Budget classification & Chart of Accounts
Budget classification
Treasury Chart of Accounts
Revenues
classification
412.02 “Grants for
externally financed
projects”
4681 “Foreign grants, other state budget receipts and
transfers for operations of externally financed projects”
Functional
classification
28.03 “Loans from
international financing
organizations”
8582 “External loans to the state budget from
international financing organization for operations of
externally financed projects”
Economic
classification of
expenditure
291.00 “Capital
transfers for externally
financed projects”
2681 “State budget expenditure out of proceeds of
foreign grants , foreign loans, etc. for operations of
externally financed projects”
Organizational
classification
7XX – State Budget
9XX – Local Budgets
12
Register of foreign donors
Code
Full name
Accronym
50
Council of Europe Development Bank
СЕВ
51
European Investment Bank
EIB
52
German Bank KfW
KfW
53
European Bank for Reconstruction & Development
EBRD
54
World Bank
WB
55
European Commission
EC
56
Global Fund to fight AIDS/ TB / malaria
GF
57
International Fund for Agricultural Development
IFAD
…
…
…
99
Другие доноры
13
Treasury account for the proceeds of foreign grants to
be used for externally financed projects
Has 4 parts – 15 characters/ digits
XXXX XXX XX XXXX XX
Part I – 4 digits – code of balance account from the Chart of Accounts ;
Part II – 5 digits – chapter/ paragraph of Budget Classification;
Part III – 4 digits – code of a public institution , beneficiary, that has received proceeds of
foreign grants;
Part IV – 2 digits –budget classification code (functional, organizational); foreign donor’s
code.
Example: 4681 41202 3649 01
Where, 4681 – “Foreign grants, other receipts & transfers of state budget for operations of
externally financed projects”
412.02 – “Grants for externally financed projects”
3649 – “Consolidated unit for implementing the International Fund for Agricultural
Development programs”
01- 11.05 “Activities & services in agriculture, forestry, fishery & water industry, not
attributed to other groups ”, 750 “Project of providing financial services and developing
agribusiness in rural areas”, 57 “International Fund for Agricultural Development “
14
Treasury account for proceeds of foreign loans to be
used for implementing of externally financed projects
Has 4 parts – 15 characters/ digits
XXXX XXX XX XXXX XX
Part I – 4 digits –code of balance account from the Chart of Accounts;
Part II – 5 digits – main group code/ functional classification group of budget expenditure ;
Part III – 4 digits - code of public institution, beneficiary of resources of foreign credit ;
Part IV – 2 digit – budget classification code (functional, organizational); foreign donor’s code;
Example: 8582 02803 3649 01
Where, 8582 – “Foreign loans of state budget from international financing institutions for
operations of externally financed projects”
28.03 - “Loans by foreign financing institutions”
3649 – “Consolidated unit for implementing the International Fund for Agricultural Development
programs”
01- 11.05 “Activities & services in agriculture, forestry, fishery & water industry, not ascribed to
other groups ”, 750 “Project of providing financial services and developing agribusiness in rural
areas”, 57 “International Fund for Agricultural Development”
15
Treasury expenditure account for proceeds of grants and
foreign loans used for implementing of externally financed
projects
Has 4 parts – 15 characters/ digits
XXXX XXX XX XXXX XX
Part I – 4 digits – code of balance account from the Chart of Accounts;
Part II – 5 digits – main group code/ functional classification group of budget expenditure ;
Part III – 4 digits - code of public institution, beneficiary of resources of foreign credit ;
Part IV – 2 digit – budget classification code (functional, organizational); foreign donor’s code.
Пример : 2281 29102 3649 01
где, 2281 “State budget expenditure out of proceeds of foreign grants, foreign loans, etc. receipts
for implementing operations of externally financed projects”
291.02 – “Share of foreign grants”
3649 – “Consolidated unit for implementing the International Fund for Agricultural
Development programs”
01- 11.05 “Activities & services in agriculture, forestry, fishery & water industry, not ascribed to
other groups ”, 750 “Project of providing financial services and developing agribusiness in rural
areas”, 57 “International Fund for Agricultural Development”
16
New Budget Classification and new Chart of Accounts
Budget Classification / Chart of Accounts
Economic of
Classification /
Chart of
Accounts
Program
classification
“Activity”
Grants
131120 “Current grants” from foreign governments for
externally financed projects”
131220 “Capital grants” from foreign governments for
externally financed projects”
132120 ““Current grants” from international organizations for
externally financed projects”
132220 ““Capital grants” from international organizations for
externally financed projects”
Loans
524000 “Foreign loans”
Expendit
ure
Class 2 “Expenditure”
Class 3 “Non-finance assts”
7XXXX – State Budget / Local Budgets
17
Reporting

Monthly
Ministry of
Finance
Line
Ministries
Project Implementation Units

Quarterly & annual
Project Implementation
Units
Line Ministries
Ministry of
Finance
18
Reporting
Externally financed
Projects serviced by
Treasury system
Externally financed
Projects serviced by
Banking system
On a daily basis,
statements from the
serviced bank
Reports are entered
manually into information
System of Ministry of
finance
19
Challenges
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Projects are dispersed across the Treasury &
banking systems
Reporting
Accounting
Technical capacity
Staff
20
Solutions
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Integrated management of externally financed
projects serviced by Treasury system
Implementation of an Integrated Public Finance
Management Information System (IPFMIS)
Uniform rules and methodology
Training
21