National Treasury Act: Regulatory Principles and System Composition

General Act of the National Treasury

Regulatory Principles

Article I. - Cash Unit

Centralized management of public funds at each institution or agency, regardless of the funding source and its purpose, respecting the titling and registration exercise appropriate to the entity responsible for their perception.

Article II. - Cheapness

Management and disposal of public funds enabling optimal implementation and permanent monitoring, minimizing costs.

Article III. - Truth

Centralized authorizations and processing operations, assuming that the information recorded by the entity is documented and sustained by lawfully authorized and conducted administrative acts.

Article IV. - Opportunity

Perception and accreditation of public funds within the prescribed period, ensuring availability at the required time and place.

Article V. - Programming

Collection, organization, and presentation of the state and flows of public income and expenditure. Identifying in reasonable advance their likely magnitudes, according to their origin and nature, to establish proper disposal and, if applicable, quantify and evaluate seasonal financing alternatives.

Article VI. - Security

Prevention of risks and contingencies in handling and recording public fund transactions, preserving the elements contributing to their implementation and supporting documentation.

Article 1. - Scope of Law

This Act establishes the ground rules for the National Treasury's functioning, in accordance with Law No. 28 112 - Framework Law of Public Sector Financial Management.

Article 2. - Scope

2.1. All member bodies and agencies at Regional and Local Government levels are subject to this Act.

2.2. State Enterprises (Public Law, Private, and mixed with direct or indirect participation) are subject to this Act only as provided by Article 12.

Chapter II: Conformation, Definition, and Domestic Cash System

Article 3. - Definition

The National Treasury system comprises the organs, rules, procedures, techniques, and instruments for administering public funds in public sector institutions and organizations, regardless of the funding source and use.

Article 4. - Composition System

The National Treasury is composed as follows:

• a) At the central level: The National Directorate of the Ministry of Economy and Finance, the system's governing body, approves regulations, implements, and executes procedures and transactions within its powers.
• b) At the decentralized or operational level: Executing units and equivalent units in Public Sector Entities covered by this Act and their respective treasuries or offices.

Chapter III: Responsible Bodies and Powers of the National Treasury System

Article 5. - The National Treasury

The National Directorate of Treasury is led by the National Director of Public Treasury, appointed by the Minister of Finance, considering the following minimum requirements:

• a) Peruvian by birth;
• b) University degree;
• c) No criminal conviction or enforceable sentence for intentional crime;
• d) No dismissal from public office for disciplinary action; and
• e) No outstanding accounts from public sector entities.

Article 6. - Responsibilities of the National Directorate of Treasury

The National Directorate of the Treasury's exclusive functions are:

• a) Centralizing public fund availability, respecting the powers and responsibilities of executing and equivalent units in the entities that manage and record them.
• b) Executing all banking and treasury operations for the funds they manage and record.