One of the important directions of the Public Finance Management Reform Action Plan adopted by the Ministry of Finance of Georgia is the reform of the integrated system of public finance management (PFMS). Activities to be implemented in the framework of the reform are financially supported by the World Bank and development partners in the framework of “Public Sector Finance Management Reform Support Project”.
Implementation of integrated informational system of public finances includes:
-short-term plan: improvement, simplification of bussiness-processes, modernization of the existing informational system;
-medium-term plan: introduction of integrated informational public finance management system (PFMS) – introduction of Treasury General Ledger by 2012.
Introduction of integrated informational system will ensure access to financial operations by all institutions participating in budgeting process and performance of transactions with public funds in minimum time, efficiently, with minimum risks and easily.
The aim of improvement and simplification of the existing informational system and business- processes is ensuring of transparency of payments made from the budget, increase of accountability of budget organizations, preparation of information for management for making decisions on efficient spending of financial resources and simplification and increase of efficiency of operations for the organizations, served by the Treasury.
Creation of the Treasury General Ledger is planned for 2012 and it will be maintained from January 1, 2013. The concept of the Treasury General Ledger provides for integration of transactions and records related to public finances into one system; introduction of IPSAS-based uniform account plan and existence of the balance of assets and liabilities of the government in real time. The basic book shall reflect all records based on principle of double recording, in the form of registration of primary document, confirming economic operation by budget organization, as well as in the form of registration of cash operation of the amount, written off from the uniform account of the Treasury.