Budget classification structure for Ministry of Finance Budget Allotment (BA) and Management Information System (MIS) – FY 2014

 99911 Government of Libya Ministry of Finance Budget Classification Structure For Ministry of Finance Budget Allotment (BA) And Management Information System (MIS) FY 2014 Version 1.0 Dated: December 2013 Table of Contents Contents 1. BACKGROUND ...................................................................................................................................... 3 2. DEVELOPMENT OF THE BUDGET CLASSIFICATION STRUCTURE ....................................... 3 3. PROCESSING OF FINANCIAL TRANSACTIONS ........................................................................... 3 4. DESCRIPTION OF BCS CODES FOR TRANSACTIONS............................................................... 3 4.1 FUND SEGMENT ................................................................................................................................ 4 4.2 ORGANIZATION SEGMENT ................................................................................................................ 4 4.3 LOCATION SEGMENT ........................................................................................................................ 5 4.4 PROJECT SEGMENT .......................................................................................................................... 6 4.5 ACCOUNT SEGMENT ......................................................................................................................... 6 5. DESCRIPTION OF BCS CODES FOR CROSS CLASSIFICATION PURPOSES ...................... 7 5.1 GFSM 2001 ECONOMIC CLASSIFICATION SEGMENT ..................................................................... 7 GOVERNMENT OF LIBYA BUDGET CLASSIFICATION STRUCTURE -- FY 2014 COMPLETE ... 9 GOVERNMENT OF LIBYA BUDGET CLASSIFICATION STRUCTURE -- FY 2014 BUDGET AND ALLOTMENT (ALL CHAPTERS) ................................................................................................................. 9 GOVERNMENT OF LIBYA BUDGET CLASSIFICATION STRUCTURE -- FY 2014 EXPENDITURE (CHAPTERS 1 AND 2) ................................................................................................................................. 10 GOVERNMENT OF LIBYA BUDGET CLASSIFICATION STRUCTURE -- FY 2014 EXPENDITURE (CHAPTER 3) ................................................................................................................................................. 11  Budget Classification Structure for Ministry of Finance Budget Allotment (BA) and Management Information System (MIS) – FY 2014 1. Background The Government of Libya is now embarking on a series of reforms in Public Financial Management, including the introduction of information systems for Treasury management and financial reporting. The system is based on the Bisan Enterprise Government Edition (Bisan) accounting application. This Code Book provides a description of the Budget Classification Structure (BCS) that has been configured in Bisan for the Financial Year 2014 Budget Execution. The procedures for financial management in Bisan are set out in a series of User Specific Procedures Manuals which should be read in conjunction with this publication. 2. Development of the Budget Classification Structure A budget classification structure, often referred to as a Chart of Accounts is a means of classifying an entity’s accounting data in a way that leads to better management and accountability, through clarity and transparency of operations. Major classifications of accounting data for government are revenue, expenditure, assets, liabilities and capital. Within each major classification further sub-classification occurs, e.g. expenditure may be sub-divided into accounts for salaries and wages, goods and services, other operating expenses etc. The necessary level of sub-classification depends on the nature of the accounting entity and the needs of users of the accounting information. The BCS for government financial operations has been designed to capture sources and uses of funds in sufficient detail to satisfy the reporting requirements of the Government and eventually the legislature and the public. The categories provide a structure within which the individual financial transactions are recorded in a consistent manner with a logical means of aggregating each set of related transactions. The structure determines the limit of reporting financial information because data cannot be easily reported unless the relevant category has been created in the BCS. Further discussion on the principles for developing a budget classification structure can be found in an IMF 1 Technical Guidance paper on the subject . The BCS for Budget Preparation and the Bisan MIS that reflects these and other information gathering and reporting considerations is shown in Attachment 1. A description of each Segment is in the following sections. Attachment 2 shows only the Segments that will be used in data entry for either the Budget and Allotment purposes or expenditure recording purposes in the Bisan MIS. 3. Processing of Financial Transactions In line with sound financial procedures, all financial transactions will have to conform to the BCS coding structure (see below), and the Chart of Accounts developed by the Ministry of Finance. Transactions will be identified by the source of Funds, the Organization and sub-unit involved (Spending Units), Location, and Account detailing Expenditure and Revenue by the Chapter/Item structure. The BCS also provides for inclusion of Project identification, which will be used in the future for recording Ministry of Planning Project actual expenditure. A supplementary table, outside the BCS coding structure used for transaction processing, will allow reporting of expenditures in an alternative presentations to reflect GFSM 2001 economic classifications (GFS). Sectors, Spending Units and the Budget, Treasury, and Follow-up Departments will be required to utilize the relevant codes when processing any financial transaction manually or in the Bisan MIS. 4. Description of BCS Codes for transactions Each Segment within the structure shows the “Belongs To