MOF launches guide to Treasury Single Account

Muscat: The Ministry of Finance (MOF) has launched an Introductory Guide to Treasury Single Account

As part of the efforts exerted by the Ministry of Finance (MOF) to improve cash management by developing a unified structure for all government bank accounts and collecting revenues of all Government units directly into MOF’s bank accounts. In addition to standardizing expenditure management and tracking mechanisms in accordance with the regulations and procedures stipulated in the financial law and executive bylaws, the MOF has embarked on implementing Treasury Single Account (TSA) project to enhance cash management and monitor the movement of revenue and expenditure. TSA is one of the best international practices applied in public finance management.

1. What is Treasury Single Account?

Treasury Single Account (TSA) is a unified structure of government bank accounts, where all government account balances are accumulated to show the movement of net revenues and expenses. This would lead to the optimal use of government cash resources.

2. Is TSA a single bank account?

NO Treasury Single Account (TSA) is a unified structure of government bank accounts, where all government account balances are accumulated to show the movement of net revenues and expenses. This would lead to the optimal use of government cash resources.

3 What is the significance of TSA?

Increasing the efficiency of public finance management.

Enhancing the ability to identify financing needs and reducing the cost of borrowing.

4, What are the objectives of TSA?

Establishing a centralized methodology to manage government bank accounts.

Managing cash efficiently.

Improving the quality and accuracy of financial reports.

Optimizing government funds.

5 What are the phases of TSA?

00. Phase of Developing the Regulatory Framework for TSA

01. First Pilot Phase Tax Authority and Ministry of Labour

02. Second Pilot Phase Ministry of Health, Ministry of Education and Royal Oman Police.

03. Third Phase All Civil Ministries and Government Units.

6. Is TSA limited to civil Ministries?

NO TSA will be applied to all units of the State’s administrative apparatus, taking into consideration the tasks of every entity.

7. What are Government bank accounts?

The Government bank accounts are those accounts opened by various government entities, in local or foreign banks inside or outside Oman, to manage their allocations as per the State general budget or any financial resources. However, once TSA is put in place, any Government bank account shall be opened under the name of MOF.

8. What is the role of MOF in opening government bank accounts?

Based on the Financial Law and Executive Bylaws, all Government entities are obliged to obtain a prior written approval from MOF before opening a new bank account.

9. can the government entities use collected revenue?

NO all collected revenues must be transferred to the account of MOF. In case any Government entity wants to use part of the collected revenue, then such entity shall submit a reallocation request to MOF in accordance with the MOF’’s regulations and procedures.

10 After the TSA implementation, will the government entities be allowed to open other bank accounts for expenses such as petty cash?

YES any government entity can have sub-accounts for petty cash or other requirements. However, all bank accounts must be opened under the name of MOF in accordance with specific criteria.

11. will the TsA implementation impact the budget spending decisions of the government entities?

NO TSA implementation will not affect the administration decisions related to preparing or allocating budget government entities. The existing procedures, for preparing and approval of general budget and those pertaining to spending and revenue collection, shall continue to be in force as per the Financial Law and its Bylaws.