The Department of Finance issued Circular No. 001.2015 on 1 June 2015 providing for revised guidelines on authorized government depository banks.  This Circular covers all National Government Agencies, Government -Owned or -Controlled Corporations (GOCCs), and Local Government Units (LGUs).

As the Government’s steward of sound fiscal policy, the Department of Finance (DOF) is mandated to formulate policies that ensure the effective management of government resources.  This includes effective cash management and transparency of public funds.

One of the revisions to the guidelines is to highlight the application of the Treasury Single Account (TSA) System of the National Government as part of the Public Financial Management (PFM) Reforms Program, directing the integration and automation of the government PFM System.  The objective of the TSA system is to increase operational efficiency of spending agencies while minimizing cost of treasury operations.

Finance Secretary Cesar V. Purisima said, “The ongoing implementation of the Treasury Single Account (TSA) System is a synergistic innovation that brings together government bank accounts into a single unified structure, improving our cash management system by consolidating resources and optimizing its use.

By enabling the National Treasury to determine how much money it has in real time, the TSA allows it to make better decisions on treasury operations, reducing costs in the process. Reform in this government continues its onward march with simple but effective ideas like the TSA.”

For agencies specifically allowed by law, rules, and regulations to retain income and/or for operations and/or working balances, the deposit of government funds by National Government Agencies, GOCCs and LGUs is limited only to government financial institutions with a universal bank license and a CAMELS rating of at least “3.”  This is part of the strategic direction to strengthen the overall fiscal position of the country.

“As part of the continuing reforms being accomplished on the public finance front of governance, we believe that it is imperative for government deposits to be placed in the strongest government financial institutions. By applying this high standard, we ensure that taxpayer money is safeguarded to the fullest extent,” Purisima added.

Other changes to the guidelines are the provisions for documentary requirements, the conditions for exemption, and an emphasis on the roles of government offices in the management of government funds — the Bureau of Local Government Finance (BLGF), as the operating arm of the DOF in local finance, the Bureau of the Treasury (BTr), to cater to National Government Agencies, and the DOF, in the case of GOCCs.

The revised guidelines were a result of a series of consultations by the DOF with the BTr, BLGF, and the Bangko Sentral ng Pilipinas.

As the Government’s steward of sound fiscal policy, the Department of Finance (DOF) is mandated to formulate policies that ensure the effective management of government resources.  This includes effective cash management and transparency of public funds.

One of the revisions to the guidelines is to highlight the application of the Treasury Single Account (TSA) System of the National Government as part of the Public Financial Management (PFM) Reforms Program, directing the integration and automation of the government PFM System.  The objective of the TSA system is to increase operational efficiency of spending agencies while minimizing cost of treasury operations.

Finance Secretary Cesar V. Purisima said, “The ongoing implementation of the Treasury Single Account (TSA) System is a synergistic innovation that brings together government bank accounts into a single unified structure, improving our cash management system by consolidating resources and optimizing its use.

By enabling the National Treasury to determine how much money it has in real time, the TSA allows it to make better decisions on treasury operations, reducing costs in the process. Reform in this government continues its onward march with simple but effective ideas like the TSA.”

For agencies specifically allowed by law, rules, and regulations to retain income and/or for operations and/or working balances, the deposit of government funds by National Government Agencies, GOCCs and LGUs is limited only to government financial institutions with a universal bank license and a CAMELS rating of at least “3.”  This is part of the strategic direction to strengthen the overall fiscal position of the country.

“As part of the continuing reforms being accomplished on the public finance front of governance, we believe that it is imperative for government deposits to be placed in the strongest government financial institutions. By applying this high standard, we ensure that taxpayer money is safeguarded to the fullest extent,” Purisima added.

Other changes to the guidelines are the provisions for documentary requirements, the conditions for exemption, and an emphasis on the roles of government offices in the management of government funds — the Bureau of Local Government Finance (BLGF), as the operating arm of the DOF in local finance, the Bureau of the Treasury (BTr), to cater to National Government Agencies, and the DOF, in the case of GOCCs.

The revised guidelines were a result of a series of consultations by the DOF with the BTr, BLGF, and the Bangko Sentral ng Pilipinas.