MoF implements new procedure for remittances to Department of treasury and accounts

In a significant development aimed at streamlining financial operations, the Department of Treasury and Accounts (DA) under the Ministry of Finance has introduced a revised Standard Operating Procedure (SoP) for processing remittances on 5th  September, 2023.

Under the new procedure, budgetary bodies are required to follow specific guidelines when remitting funds to DA under broad head 8c. According to the Financial Rules and Regulations, 2016 (FRR, 2016), chapter 8, subsection 8.1.7(c) Payments to DTA, remittances under broad head 8c must be sent to DA, clearly specifying the Financial Information Code (FICs) for the surrender of such remittances in the remittance letter.

The previous method of emailing these remittances to DA, following the deposit of Payments to DA remittances to BFA, has now been discontinued The notification, issued by the DA, pertains specifically to remittances under broad head 8c: Payments to DTA (Department of Treasury and Accounts).

According to the notification, the alteration in the remittance process, as outlined in the SoP, is not only expected to enhance the reconciliation of Budget and Finance Accounts (BFA) but also contribute to more effective cash management within the Ministry.

Meanwhile, the notification also states that the budgetary bodies are now required to utilize a designated “Payments to DA” Google Form for initiating remittances to DA.  “This form can be accessed through the MD’s Portal on the Ministry of Finance’s official website. To assist in this transition, step-by-step instructions have been provided.” Stated the notification.

To access the newly implemented procedure for remittances to the Department of Treasury and Accounts (DA) within the MoF, users are advised to follow a series of steps. They should visit the MoF’s official website and select a specific department, which is DA, then scroll down to locate the MD’s Division Portal section, Government Account Management interface within the portal. And then Commence the process of updating the necessary information in the provided Google form labeled “Payment to DTA.”

Additionally, this proactive move by the Department of Treasury and Accounts is expected to streamline financial transactions and promote greater transparency and efficiency in the management of public funds.

Budgetary bodies and stakeholders are encouraged to adhere to the new SOP for processing remittances to DA under broad head 8c to ensure compliance with these important financial regulations.

For further details and inquiries, budgetary bodies and concerned parties are advised to refer to the attached detailed SOP accompanying the official notification, according to the notification.

Nidup Lhamo from Thimphu