District Treasury Rollout Program
Summary [pdf] - Download to view the DTRP brief and the progressive report of the program.
Background
Section 112 of the new Organic Law on Provincial Governments and Local Level Governments makes it mandatory for the establishment of District Treasuries in the country.
The District Treasuries are the extended function of the National Government (Department of Finance) in providing accounting services relating to financial matters for the district services and the Local Level Governments, with the obligatory requirement to prepare and submit annual accounts for each Local Level Government in the country.
Under Section 102 of the Organic Law, one of the Department of Finance’s responsibilities is the installation and maintenance of a robust and responsive government financial management system to assist in executing government accounting and providing financial information requirements for and by the Government. This responsibility extends in the form of decentralized services of the National Government to the Provinces and Districts.
To support this government’s initiative, the Department of Finance together with the other stakeholders and developmental partners like the Bank of South Pacific, Post PNG and Telikom PNG have now joined hands to see vital services being delivered to our people at their footsteps. For the last thirty years the services in the districts have deteriorated and to some extent non- existent in most parts of the country that this program has so far reached.
District Treasury Establishment
There are eighteen (18) provinces (excluding NCD) and one (1) autonomous region in the country each having a Provincial Treasury head office. In the eightenn (18) provinces and one (1) we have eighty-six (86) districts. In accordance with the provisions of the Organic Law on the Provincial Government and Local-Level Government, all eighty-six (86) districts must have a District Treasury office established. Therefore, the Department of Finance is duty bound to make sure that we comply with the provisions specified in the Organic Law.
The NEC through its decision number 186/2003 directed the establishment of Treasuries in all Districts by the end of the 2004 fiscal year. However, the program could not come into reality as anticipated in 2004 due to funding and other infrastructure issues that hindered the progress.
Progressive Report of District Treasury Rollout Program
Support of Member of Parliaments, Provincial & Local Level Governments
It should be noted that the establishment of District Treasury is the responsibility of the National Government, Provincial Government and Local Level Governments. This meant that the National, Provincial and Local Level Governments are to work in partnership and have ownership over this program. The Department of Finance’s responsibility is to put in place in each District, a Financial Management system and with trained staff, while the lower level of governments were supposed to be responsible for establishment of infrastructure. Experience has shown that this has not been the case. Most District Treasury Establishment has been establishment with minimum contribution from lower level of governments.
The National Members of Parliament for respective electorates should be requested to supplement the assistance from their District Support Grants (DSG).
Provincial Governments have agreed, in principle, to work in partnership with the National Government in the roll out of District Treasuries. It is important that the Provincial and Local Level Government and its administration give priority on this program.
Skills and Capacity of District Treasury Staff
Emphasis is being placed in increasing the infrastructure and skill capacity of District staff. Department of Finance has vigorously taken capacity building of empowering of its workforce seriously since 2001. Since its inception more than ninety treasury officers have graduated from the Certificate and Diploma course in accounting at the PNG Institute of Public Administration. Further, these officers have received full membership of the Certified Practicing Accountants of PNG and the Institute of Chartered Management Accountants of PNG.
Online PNG Government Accounting Systems (PGAS)
The on-line system is a system that has terminals or computers and printers, which link a particular site either at the provincial level or at the district level to the provincial headquarters through the telephone lines. Both the modem and multiplexer talk to the provincial headquarters and allow the login banner to appear at those sites. Using this method of communication, staff of those sites or levels is able to access their respective database to process commitments, print \ reports make enquiries, print cheques and Ilpocs and use the headquarters cashbook
Stand-alone PGAS
The stand-alone system is a system that has a full set of equipment similar to those at provincial headquarters (provincial treasury office). The dial-up modem line is not hooked up to the provincial headquarters, but to ITD for daily checking and maintenance of the system. Using this system the staff at those sites or districts can process commitment, print reports, make enquiries, print cheques and reports, just the same way as those at provincial headquarters. They are only able to access and use the LLG databases on the LLG chart of accounts.