Financial Commitments and Payments
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  • Question: What is obligation?
  • Answer: Obligation document - taking responsibility by the state on payments payable by a budgetary organization.
  • Question: What is quarterly declaration?
  • Answer: Quarterly declaration is an obligation document (annex #2) for taking specific expenses
  • Question: What expenses are taken by quarterly declaration?
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  • Question: Which obligations are submitted on the basis of a letter?
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  • Question: What is annex #6?
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  • Question: What are the cases for submission of the annex #6 to the treasury?
  • Answer: Annex #6 is submitted in any cases
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Accounting and Reporting
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  • Question: How and in what periods should stock-taking be undertaken in the budgetary organization?
  • Answer: Stock-taking in the budgetary organizations is regulated by the order №605 of the Minister of Finance of Georgia as of 23 July 2010 on approval of the “Rule for Undertaking Property, Requests and Obligations Stock-taking in Budgetary Organizations” and accordingly, the stock-taking should be undertaken in compliance with the requests stipulated by this rule.
  • Question: Which regulatory act establishes accounting balance forms and balance submission timeframes?
  • Answer: Accounting balance and balance annex forms of the organizations on the budgetary financing are approved by the order №364 of the Minister of Finance of Georgia as of 16 April 2008 on approval of “Accounting Reporting Forms of Organizations on Budgetary Financing”. Same order defines timeframes for submission of quarterly and annual reports.
  • Question: For the purpose of drafting a report by the budgetary organization which accounts should be reimbursed to the net value account at the end of the reporting period?
  • Answer: At the end of the reporting period to the net value account (5100) should be reimbursed revenue and expenditure accounts (except for the revenues and expenditure from economic activities), as well as funding and other economic flows accounts.
  • Question: Where the costs of a purposeful grant of the budgetary organization financed by the State Budget should be reflected in accounting forms
  • Answer: Sums of the purposeful grant in quarterly reporting accounts is reflected in balance annex forms – form №4-1 and form №3, whereas in the annual reporting accounts – in the form №2 and form №3, on the basis of introduction of relevant amendments to the State Budget.
  • Question: Should the budgetary organization charge depreciation on residual value or on original (historical) value of fixed assets?
  • Answer: Budgetary organization has to charge depreciation on fixed assets using straight-line method, in the framework of established norms, on the original (historical) value of assets and not on their residual balance value.
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Settlement and Reporting
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  • Question: What are timeframes for the State Treasury to prepare a report on incomings to and payables of the State Budget?
  • Answer: In 20 days period from the end of each month the State Treasury prepares the report indicating incomings, payables, changes of balance and total balance of the State Budget.
  • Question: How are sums cut down from the court decision execution fund?
  • Answer: Sums are cut down from the unified treasury account ¹200122900, by the National Execution Bureau by compulsion, on the basis of submitted to the National bank of Georgia order for collection, for benefit of physical and legal entities.
  • Question: What is the basis for reflecting in the State Budget execution report of an obligation, payment order and cash-based expenses on sums spent (spending of which is performed bypassing treasury accounts) in the framework of investment projects to be implemented through funding sources and grants received from abroad?
  • Answer: Basis for reflecting by the Treasury Service in the state budget execution report of the obligation, payment order and cash-based expenses on sums spent (spending of which is performed bypassing treasury accounts) in the framework of investment projects to be implemented through funding sources and grants received from abroad is information submitted by the organization in writing in established format on the projects implementation status and/or information submitted in writing by the Foreign Relations Department of the Ministry of Finance that is submitted to the State Treasury in 7 days period after completion of the reporting period.
  • Question: Where are monetary resources at the disposal of the State Treasury stored?
  • Answer: Monetary resources at the disposal of the State Treasury are stored on the unified account of the State Treasury, as well as on other accounts of the State Treasury.
  • Question: Does a budgetary organization have permit to open a bank account without the State Treasury consent?
  • Answer: Without consent of the State Treasury it is inadmissible to open a bank account of the budgetary organization of the central authority of Georgia. The State Treasury is authorized to cancel the permit on opening of the bank account and to close the account. The budgetary organizations ensure that all incomings received by them are fully and immediately registered on the unified account of the State Treasury, except for the non-budgetary revenues of legal entities of public law.
  • Question: How are cash transfers performed by the State Treasury?
  • Answer: In the framework of the submitted to the State Treasury daily operational financial plan of money issuance according to payment order registers electronic payment orders are developed and by means of the Real Time Gross Settlement System (RTGS) are sent to the National Bank of Georgia through which sums are transferred to commercial banks.
  • Question: To which treasury codes are returned transferred sums?
  • Answer: 1) Sums transferred in previous years are returned to the treasury code 302003460 – “Unused in previous years and returned budgetary resources.” 2) Sums paid in current year are returned to the treasury code 302009921 “Return of costs bore form the budget;” upon return cash expenses and payment order is reduced by the appropriate sum.
  • Question: Where will be transferred monetary grants/purposeful financing received by the ministries and institutions
  • Answer: Monetary grants/purposeful financing received by the ministries and institution will be transferred to the unified ¹200122900 account of the Treasury, treasury code – 302007000 “Revenue Received as Purposeful Grant”, whereas expenses bore by resources of grant/purposeful financing will be returned to the unified treasury account treasury code 302009941 “Return of Expenses Bore in the framework of Purposeful Grant.”
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Return of money paid to the budget and correction of mistakes
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  • Question: How can be returned overpayments or sums paid by mistake to the budget (except for taxes)?
  • Answer: Overpayments or sums paid by mistake are returned on the basis of written request of the payer, that should be accompanied by the written confirmation (signed by authorized person and sealed) on overpayment or erroneous entry of the sum, of the relevant executive, court or legislative authority, also other state and local self-government body that had performed services for which the sum was paid.
  • Question: How should be returned state due paid for the court proceeding?
  • Answer: Physical or legal person for benefit of whom the due is returned applies to the State Treasury by written request that should be accompanied by legally enforced court decision/sentence/order, writ of execution* and a copy of the receipt confirming payment of the sum.
  • Question: How is the sum paid by mistake to the incomings treasury code transferred to another treasury code (except for taxes)?
  • Answer: The payer applies to the State Treasury by written request on the issue of addressing the sum to the incorrect treasury code symbols and for the transfer of the sum to the correct treasury code; the request should be accompanied by the written confirmation (signed by the authorized person and sealed) on erroneous entry of the sum of the relevant executive, court or legislative authority, also other state and local self-government body that had performed services for which other incomings were paid.
  • Question: What types of sums are allocated to the unified treasury account as deposits and how?
  • Answer: To the deposit treasury code of the spending entity are transferred deposits (temporarily allocated sums) allocated for budgetary organizations subordinated to the spending entity (e.g. tender payment, earnest money in case of auctions announced by budgetary organizations, etc.) that are later directed to the budget or returned to the payer.
  • Question: How could be sums allocated as deposits returned or directed to the budget?
  • Answer: Sums allocated as deposits on the unified treasury account are returned to the payer or directed to the budget by the budgetary organization on the deposit code of which the sum is allocated, on the basis of the payment order submitted to the Treasury.
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Financial Risk Management
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  • Question: What are treasury bills and treasury notes?
  • Answer: Treasury bills and treasury notes are state securities issued by the Ministry of Finance of Georgia. State securities are issued in national currency, non-material form. Treasury bill is a discount state security that is issued with one year settlement term, with discount and will be settled with nominal price. Amount of the discount will be identified at the auction. Treasury note (bond) is a medium-term coupon state security issued by the Ministry of Finance. Treasury notes are issued with settlement term of 1 to 10 years, with repayment of the coupon once in 6 months.
  • Question: How are treasury bills and notes sold?
  • Answer: Treasury bills and treasury notes are sold through auction. The auctions are held using electronic trade system in the National Bank of Georgia. The auctions are held by multi-price method. Only commercial banks are allowed to participate in the auctions.
  • Question: How can I get information about holding an auction?
  • Answer: Not later than a week before starting each quarter the Ministry of Finance publishes emission calendar for forthcoming three months. The emission calendar includes information on dates of auctions, validity and volume of the state securities to be sold on the auction. Not later than 5 days before the auction the Ministry of Finance publishes a notification about holding the auction in media and on the website of the Ministry. Information about results of the auction is published on the day of the auction on the websites of the Ministry of Finance of Georgia, State Treasury and the National Bank of Georgia.
  • Question: What is money issuance operational financial plan?
  • Answer: Money issuance operational financial plan is a short-term planning and includes one month forecast of factual revenue collection, funding sources and expected payables. Budgetary organizations bear expenses in the framework of the approved financial plan.
  • Question: What is the basis for issuance of the loan from the State Budget?
  • Answer: The loan from the State Budget is issued on the basis of a direction of the President of Georgia or the Government of Georgia, stipulating: a) purposefulness of the loan; b) source of the loan issuance; c) the loan issuer; d) the loan receiver; e) controller of purposeful use of the loan; f) amount of the loan; g) annual interest rate for use of the loan; h) terms (timeframe) of the loan use and loan repayment; i) means of the loan security (the direction may envisage other terms necessary for purposeful and efficient use of the loan).
  • Question: Who may be the State Budget loan beneficiary?
  • Answer: The State Budget law beneficiary may be an enterprise or organization defined by the Tax Code of Georgia, or an entrepreneur entity or physical person of any legal form stipulated by the law of Georgia “On Entrepreneurship.”
  • Question: What should the loan beneficiary present in order to secure taken loan liability?
  • Answer: To secure taken loan liability the loan beneficiary may present: a) bank guarantee; b) insurance certificate of an insurance company (policy); c) own or third person’s property for the creditor’s benefit to pawn or/and load with mortgage
  • Question: What does restructuring of the loan liability mean?
  • Answer: Restructuring of the loan liability means freezing and/or delaying of overdue loan liability. Term of restructuring does not exceed 5 years (2 years - freezing, 3 years – delaying), except for a particular case (in the particular case term of restructuring is defined as not exceeding 15 years). Decision on restructuring of the overdue loan liability is made by the Government of Georgia through introduction of the Commission for investigation of restructuring reasonability of overdue tax and loan liabilities, created under the Ministry of Finance of Georgia.

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Statistics and Analysis
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