Hungarian State Treasury

The Activity of the Treasury

The principal areas of activity of the Hungarian State Treasury

budget implementation,

financial services,

investment services,

central payroll accounting,

support provided through tenders, management of claims,

financial compliance audit within the local government subsystem of public finances,

keeping records in the register of the Treasury and other registers.

National Paying Agency

central payment of pension benefits and other specified benefits, support to families, health insurance cash benefits, and other benefits referred to the payment powers of the Pension Payment Directorate

operation of the Municipality ASP system

Under its responsibilities as National Paying Agency, the Treasury:

performs the paying agency tasks related to the support financed from the CAP funds and the executive tasks related to the agricultural support financed from the national budget,

performs record-keeping as well as monitoring and data collection tasks,

and acts as an agricultural damage mitigation body and crisis insurance body related to the management of risks due to weather and other natural events affecting agricultural production.

Under its responsibilities regarding budget implementation, the Treasury:

keeps records of the appropriations of the central budget, ring-fenced state funds and the social security funds, as well as of their changes and implementation;

prepares the payment transactions regarding the use of budget appropriations;

performs the administrative, record-keeping, information-gathering, coordinating and service-providing tasks related to the preparation of the discharge procedure;

provides information on the appropriations and the implementation of the budget to the budgetary institutions, the chapters and the Ministry of Finance, and carries out periodical analyses of the budgetary developments and position;

prepares daily reports on the development of expenditure and revenue by main group, and on the position of the central budget;

performs statement preparation, accounting and reporting activities for the appropriations managed at central level, as defined by law;

on a monthly basis, collects accounting, payment and asset data from parties belonging to the central and local government subsystem of public finances for the financial administration, as well as collects the annual budget implementation reports for the monitoring of budget implementation and the preparation of the law on discharge procedure;

keeps records of the state commitments and the state claims;

projects the development of the cumulative balance of the income and expense of the accounts of Treasury participants and the accounts managed by the Treasury, participates in the management of the liquidity of the Treasury Single Account;

ensures the availability and financing of central budget support for the appropriations managed at budgetary institution and chapter level;

keeps itemised records of the commitments and claims of the budgetary institutions, as well as the consolidated commitments of the appropriations and funds under chapter or – within a certain scope – central management, the expected performance of the expenditure and revenue of the central subsystem, and the development of the debt stock of central budgetary institutions with basic budgets;

performs application, payment, clearing, control and reporting tasks related to the state support due to parent agencies of ecclesiastical, nationality self-government and non-state human service institutions;

performs the tasks related to the application for, payment and clearing of local government subsidies, and the review of the regularity of the application and use;

operates the budgetary supervision system.

Under its responsibilities regarding budget financing, the Treasury:

participates in the preparation and updating of the annual and medium-term financing plan of the budget;

may authorise the provision of liquidity facility to extra-budgetary funds and local governments.

During its activity as a financial and investment service provider, the Treasury:

manages accounts for Treasury participants and payment account holders;

performs the financial execution tasks related to the allocation of expenditure and the collection of revenue, the liquidity and appropriation coverage verifications concerning expenditure, and conducts controls regarding form and content, as well as financial audits;

ensures cash supply for Treasury participants, payment account holders and clients holding securities registration accounts with the Treasury;

operates a cashless payment system;

provides investment services and follow-on investment services within the scope of debt instruments issued by the state;

performs statement preparation, accounting and reporting activities regarding Treasury account management and clearing;

participates in tasks related to the cooperation and membership of the Hungarian State with/in international financial and development institutions, ensures that the sums to be paid periodically are paid from appropriate sources, arranges for the issuance of non-transferable, non-interest bearing notes, and the creation and execution of operations and transactions to be performed;

acts as the beneficiary in respect of any amount transferred or paid for the benefit of the Hungarian State;

performs the implementation, payment and audit tasks specified in legislation or international agreement in relation to the Structural and Cohesion Funds and, in general, the EU funds (Hungarian forint or foreign currency).

Regarding support provided through tender and during the management of claims, the Treasury:

operates the national support and monitoring system in order to monitor the support paid from the central budget through tender procedures; participates in the performance of financial execution and audit tasks in the tender system of support appropriations.

In the framework of the register of budgetary institutions:

the Treasury – based on the instruments of incorporation – keeps records in the register of budgetary institutions, similarly to the company register. A newly established central budgetary institution belonging to the Treasury circle may only open an account with the Treasury if said institution has been entered in the register of budgetary institutions;

the governing body is obliged to report any changes affecting the data of the register within the time specified in legislation for the purpose of entering said change in the register, and the Treasury will enter it in the register based on the request;

if a budgetary institution ceases to exist, the governing body submits the request for removal and the termination document to the register, and based on these, the Treasury removes the budgetary institution from the register.

In the framework of the payment of family and other social support:

the Treasury operates customer service departments in order to ensure relations with retail clients;

from 1 January 2006, the Treasury maintains a register of start-of-life allowances, and pays the allowance to children with a Start account (Baby Bond).

In the framework of centralised payroll accounting:

Centralised payroll accounting ensures the payroll accounting of individual entitlements (salary, and other benefits due based on the employment) and health insurance benefits (e.g. sickness benefit, infant care fee, i.e. CSED, child care fee, i.e. GYED, accident sickness benefit, medical leave for professional personnel of law enforcement services, etc.) of people employed by state and local government budgetary institutions, and by institutions affiliated by agreement, as well as the accounting for charges incumbent upon employers.

One of the main goals of the implementation of centralised payroll accounting is that, thanks to the payroll accounting of employees working in the public service with a system based on uniform labour, information, financing and control technology, reliable information on the individual entitlements and charges appearing as the most significant expenditure items of public finances, as well as on the number of employees is available for planning, management and reporting.

In the framework of its tasks regarding cash benefits and other benefits, the Treasury:

arranges for and participates in the performance of the planning, management, reporting and data provision tasks related to the Pension Insurance Fund and the Health Insurance Fund;

ensures the collection and verification of data required for the determination and payment of benefits, performs the tasks related to the register of social security right acquisition and the register of benefits to be paid;

performs the accounting for the coverage of benefits financed from the Pension Insurance Fund, as well as the reimbursement of operating costs related to the determination and disbursement of other benefits paid;

operates and develops the systems for pension insurance, support to families, health insurance cash benefits, travel reimbursements, social benefits and benefits for disabled persons, and ensures the collection and publication of statistical data;

performs call centre tasks related to the support to families, the disability benefits and the grant for the purchase of a car for large families, as well as travel reimbursements;

performs the tasks specified in the government decree on the grant for the purchase of a car for large families;

performs the administrative procedures related to the maternity allowance and the start-of-life allowance for young people requested for children living abroad, born abroad and having Hungarian citizenship, and children without Hungarian citizenship and having a document certifying Hungarian nationality (Magyar igazolvány);

ensures the implementation of the registration, data reconciliation, referral and data provision tasks required by the legislation related to the start-of-life allowance for young people;

participates in the preparation and implementation of international contracts, liaises with designated bodies, carries out the coordination tasks resulting from EU membership and the implementation of international conventions on social security and social policy, participates in the professional work of European Union commissions and international organisations;

Regarding cash benefits and other benefits, the Pension Payment Directorate

performs the tasks related to the central receipt of mail items referred to it, as well as the central printing and communication by post of the decisions issued with an electronic signature;

performs the tasks related to the central printing and communication by post of the decisions regarding the travel reimbursement related to health insurance;

performs the tasks related to the central payment of pensions and other benefits referred to it, support to families, health insurance cash benefits, and certain support referred to it.

In the framework of its tasks regarding the operation of the Municipality ASP system, it:

operates the Municipality ASP system, which consists of the Framework, certain specialised systems (record management system, local government municipality portal system, electronic administration portal system, including the electronic form service, management system, immovable property cadastre system, local government tax system, industrial and commercial system, system for the liquidation of succession) and support systems, as well as the Local Government Repository;

performs the technical and administrative tasks related to the connection to the Municipality ASP system, and participates in the conclusion of service contracts required for the connection;

performs client information, liaising and information provision tasks, ensures the notification of errors, requests for professional assistance and development needs via the error and claim notification application, and participates in the coordination of communication and training tasks related to services;

on the basis of legal authorisation, participates in the compilation of certain mandatory data services required for local governments, and ensures their fulfilment through specialised systems;

cooperates with all organisations participating in the operation of the Municipal ASP system and with the ministries supervising the individual systems;

ensures the receipt of data sent to the Local Government Repository, ensures the verification of the data quality, and supports government and local government decision-making by summarising data and preparing statements.