KINGSTON — Minister of Finance and the Public Service, Hon. Audley Shaw, says that the modernization of the Central Treasury Management System (CTMS) is far advanced, and a series of strategic improvements has begun.
Opening the 2011/12 Budget Debate in the House of Representatives, Thursday April 27, Mr. Shaw said this system will create a single treasury account, to better manage the cash resources of Government.
He noted that the new system will be managed by accounting codes, thus eliminating the need for hundreds of separate bank accounts, currently used to segregate Government funds, adding that the ultimate objective is for more efficient management of Government’s cash resources.
Highlighting the achievements of the new System, Mr. Shaw said a process improvement to the payroll mechanism began in January, and was improved in February.
“The improvements in the payroll has reduced the number of steps required for the funding of the payroll accounts, and the time to fund the accounts ahead of pay day has been reduced from five to two days, resulting in savings of millions of dollars,” he said.
He also said the Government’s utility payments to the National Water Commission (NWC) and the Jamaica Public Service Company (JPS) have been centralized through the Accountant General’s Department (AGD), and are working well.
“Instead of multiple cheques being made to the utility companies, the Accountant General’s Department now collates and makes the payment,” he pointed out.
He noted that the activity adds to the already centralised payments through the AGD. With debt, payroll, utilities and statutory deductions which began some six years ago, approximately 80 per cent of payments are now made through the AGD, he said.
The CTMS aims to ensure better management of public resources, by bringing the responsibility for treasury management under one agency, thereby eliminating the overlap, duplication and inefficiencies in the current system.
By CHRIS PATTERSON, JIS Reporter