Legal basis and declared reasons
- Section 78 of Republic Act No. 8250 directs heads of departments, bureaus, and agencies to scale down, phase out, or abolish activities no longer essential in delivering public services.
- Section 76 of Republic Act No. 8250 empowers the President to direct changes in organization and key positions in any department, bureau, or agency.
- The Bureau had assumed the national government’s fiscal agency function from the former Central Bank of the Philippines.
- The releasing of Internal Revenue Allotments to local government units had been transferred to the Department of Budget and Management.
- The Bureau had decentralized fidelity bonding of accountable officers to the regional/provincial level.
- The Bureau had moved toward full computerization and networking, including improvements in processing securities through the Automated Debt Auction.
- The reorganization is aimed at enabling the Bureau to perform its functions more effectively.
Bureau functions restated
- Section 1 assigns the Bureau the following functions:
- Assist in formulating policies on borrowing, investment, and capital market development.
- Formulate adequate operations guidelines for fiscal and financial policies.
- Assist agencies in preparing an annual program for revenue and expenditure targets, borrowing levels, and cash balances of the National Government (NG).
- Maintain books of accounts of cash transactions of the NG.
- Manage NG cash resources, collect advances made by NG, and guarantee forward cover fees due NG; control and service the public debt (foreign or domestic).
- Issue, service, and redeem government securities for the account of the NG as authorized by the President pursuant to law.
- Administer the Securities Stabilization Fund by purchase and sale in the open market of government bills and bonds to increase liquidity, stabilize security value, and promote private investment.
- Act as principal custodian of financial assets of the NG, its agencies, and instrumentalities.
- Bond all accountable public officials and employees pursuant to the Public Bonding Law and issue appropriate guidelines.
- Perform other related functions assigned by competent authorities.
Organizational structure and leadership
- Section 2 provides that the Bureau shall be composed of these organizational units:
- Office of the Treasurer of the Philippines
- Planning and Policy Subsector
- Operations Subsector
- Auxiliary Subsector
- Regional Offices
- The Bureau is headed by the Treasurer of the Philippines (TOP).
- The TOP is appointed by the President upon the recommendation of the Secretary of Finance (Section 2).
Legal, audit, and security services
- Section 2(1.1) establishes the Legal Service, which shall:
- Provide legal advice and opinions on statutes, laws, rules, and regulations affecting the Bureau.
- Act as counsel of the Bureau or the Treasurer of the Philippines in court litigation.
- Take legal action against violators of Treasury regulations.
- Handle escheat of dormant accounts with banks pursuant to existing laws.
- Conduct investigation and hearing of administrative cases filed against Treasury personnel.
- Section 2(1.2) establishes the Internal Audit and Security Service, which shall:
- Review and evaluate control procedures to ascertain the adequacy, propriety, and effectiveness of control systems.
- Audit maturing coupon payments attached to Land Bank Bonds.
- Formulate and enforce adequate security measures for Treasury officials, employees, and properties.
- Provide escort and security services to the National Cashier when withdrawing cash from the Bangko Sentral ng Pilipinas, and upon request, to other government representatives withdrawing cash from the National Treasury.
Planning and Policy Subsector
- Section 2(2) provides that the Planning and Policy Subsector is headed by a Deputy Treasurer of the Philippines.
- The Deputy Treasurer is appointed by the President upon the recommendation of the Secretary of Finance (Section 2(2)).
- Section 2(2.1) establishes the Research Service, which shall:
- Prepare annual plans and programs, in coordination with NG agencies and instrumentalities, on inflow of funds from revenues and debt sources into the Treasury.
- Formulate and recommend policies, plans, and programs for management of NG cash resources, domestic debt, and financial assets.
- Assess results of operations in relation to NG cash, debt, and financial asset policies, plans, and programs.
- Provide technical assistance and advice on management of funds, flotation of government securities, fiscal programming, debt management, and related matters.
- Conduct researches and policy studies to improve overall treasury management.
Operations Subsector
- Section 2(3) establishes the Operations Subsector, headed by a Deputy Treasurer of the Philippines appointed by the President upon the recommendation of the Secretary of Finance.
- Section 2(3.1) establishes the Asset Management Service, which shall:
- Manage effectively NG cash receipts and disbursements.
- Maximize earnings of NG funds and reduce costs through timely and proper investment of idle cash balances in high yielding interest account and prompt servicing of NG obligations.
- Administer effectively the Bond Sinking Fund (BSF) and Securities Stabilization Fund (SSF).
- Ensure that collections due the Bureau received during the day are deposited with authorized government depository banks (AGDBs) on the same day.
- Serve as custodian of NG holdings in government securities and other non-cash accounts and securities for safekeeping.
- Ensure national collections are accurately credited to the TOP’s Savings Account by AGDBs on the day the collections are received.
- Determine the correctness of interest credited by AGDBs to the TOP’s account.
- Section 2(3.2) establishes the Liability Management Service, which shall:
- Interlink revenue and expenditure operations of the government.
- Assist in policy formulation and rationalization of public borrowings and management of borrowed funds.
- Participate in programming, structuring, and timing of borrowing proposals in close coordination with the Bangko Sentral ng Pilipinas and the Department of Budget and Management.
- Assist government agencies, corporations, and financial institutions on matters pertaining to loan proceeds.
- Monitor data on availments of repayments and status of public debts.
- Maintain inventory of documents on various public sector external liabilities transferred to the NG.
Auxiliary Subsector and its services
- Section 2(4) establishes the Auxiliary Subsector, headed by a Deputy Treasurer of the Philippines appointed by the President upon the recommendation of the Secretary of Finance.
- Section 2(4.1) establishes the Accounting Service, which shall account for:
- All receipts and disbursements of the national government, including national collections and budgetary expenditures, foreign and domestic obligations, backpays, and emergency currency notes.
- Compute guarantee fees and interest on advances and prepare billings/collection statements.
- Account for liabilities transferred to the NG.
- Maintain subsidiary ledger accounts.
- Prepare financial statements and reports.
- Section 2(4.2) establishes the Administrative Service, which shall:
- Provide general housekeeping services, including procurement of supplies, materials and equipment, and maintenance of building premises, properties, and assets.
- Administer personnel management programs involving recruitment, selection, and promotion of officials and employees.
- Conduct training courses and seminars to enhance personnel benefits.
- Section 2(4.3) establishes the Management Information Systems Service, which shall:
- Provide support services to all operating units requiring computers.
Regional offices and their responsibilities
- Section 2(5) establishes Regional Offices composed of all Provincial/District Offices that report directly to the TOP.
- Regional Offices shall:
- Examine books of accounts of national collecting officers and local treasurers, including monitoring reports of provincial offices.
- Provide technical advice and support to government field representations for implementing laws, rules, and regulations governing Treasury operations.
- Recommend Fidelity Bond claims to the Treasurer of the Philippines for payment, chargeable against the Fidelity Fund.
- Consolidate daily reports on national collections and disbursements submitted by provincial offices.
Funding, redeployment, and implementation rules
- Section 3 provides that the funds needed to carry out Executive Order No. 449 shall be taken from funds available in the Bureau.
- Section 4 authorizes the TOP to redeploy officials and employees in accordance with the realigned functions prescribed.
- Section 4 requires redeployment to not result in dislocation of existing personnel and not diminish rank and compensation, and to take into account pertinent Civil Service laws and rules.
- Section 5 requires that, subject to the approval of the Secretary, the TOP shall prepare rules and regulations to ensure effective implementation.
- Section 5 requires the TOP to submit a detailed organizational structure, including functional statements and a staffing pattern, for review and approval of the Department of Budget and Management.