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The note documents the key trends in the evolution of the role and functions of the national treasury institutions in the PEMPAL member countries, and suggests the future directions of institutional development and the related learning needs that the community could address in its future activities. The note focuses on three core functional areas of national treasuries in the region: authorization and processing of payments, cash management and forecasting, and budget and financial reporting. Use of IT in treasury operations is the fourth functional area covered, given the enabling role that digital technology plays in treasury institutional development. 

Several important trends are highlighted. First, the role of treasuries in PEMPAL countries in payment processing is changing with a focus on how digitalization can improve operations. Second, as most PEMPAL countries have broadened the scope of the TSA, further increase of treasury coverage may prove more difficult and call for a more nuanced approach tailored to each country’s context. Third, national treasuries in the region are moving from a traditional cash planning role where control over cash execution was the focus, to better serving clients by ensuring funds are available when needed by spending agencies. Fourth, PEMPAL countries are trending towards more sophisticated reporting capabilities, including compliance with accrual IPSAS and GFSM2014, along with an expanded focus on more sophisticated cross-cutting reporting requirements. Finally, the ongoing evolution of the treasury roles and functions across PEMPAL countries and the magnitude of the reforms ahead call for further capacity development in national treasury institutions. 

The note was prepared by the TCOP Resource Team and summarizes the results of discussions by the TCOP Thematic Working Group on the Evolution of Treasury Role and Functions. The analysis is based on a variety of sources, including TCOP thematic surveys on treasury structure and functions conducted in 2016 and 2022-2023, recent TCOP knowledge products, and presentations made by TCOP members at the recent thematic events.