The Treasury Function &Treasury Single Account (TSA) Course

Course Title:     The Treasury Function & Treasury Single Account (TSA)Training.

                            TSA as an Instrument of Financial Prudence and Management:

Government banking arrangements are an important factor for efficient management and control of government’s cash resources. Such banking arrangements should be designed to minimize the cost of government borrowing and maximize the opportunity cost of cash resources. This requires ensuring that all cash received is available for carrying out government’s expenditure programs and making payments in a timely fashion. Many emerging market and low-income countries have fragmented systems for handling government receipts and payments. In these countries, the ministry of finance/treasury lacks

a unified view and centralized control over government’s cash resources. As a result, this cash lies idle for extended periods in numerous bank accounts held by spending agencies while the government continues to borrow to execute its budget.

A government lacking effective control over its cash resources can pay for its institutional deficiencies in multiple ways. First, idle cash balances in bank accounts often fail to earn market-related remuneration. Second, the government, being unaware of these resources, incurs unnecessary borrowing costs on raising funds to cover a perceived cash shortage. Third, idle government cash balances in the commercial banking sector are not idle for the banks themselves, and can be used to extend credit. Draining this extra liquidity through open market operations also imposes costs on the central bank. This hands-on course endeavors to critically look at the Treasury function and the Treasury Single Account concept (TSA). 

Training Modules

• The role of the treasury
• Budget execution and expenditure control
• Cash management and link to debt management

Concept, Coverage, and Design TSA

• Definition and Key Features
• Main Objectives and Benefits
• Custody of the TSA
• TSA Coverage
• TSA Structure
• Transaction Processing under a TSA System

Receipts, Payments, and Accounting Processes under a TSA System

• Revenue Collection
• Payment Disbursement
• Accounting Through a Treasury Ledger System
• Cash and Liquidity Management

Establishing the TSA

• Design
• Preconditions
• Implementation Issues

Best Practices in the design & implementation of TSA

Way forward After the Training

Participants will develop a work plan through the help of facilitators that stipulates application of skills acquired in improving their organizations. ASPM will monitor implementation progress after the training.  

Training Evaluation:

Participants will undertake a simple assessment before the training to gauge knowledge and skills and another assessment will be done after the training in-order to demonstrate knowledge gained through the training.