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Financial Administration

Autonomous Ordinance of Kaohsiung Municipal Treasury

This Autonomous Ordinance of Kaohsiung Municipal Treasury was set forth in May 1980 after the reorganization of the City. The Ordinance had been amended many times to accommodate practical needs. Its content focuses mainly on regulating the deposits and withdrawals of public funds of various subordinate authorities and schools of the City Government at the Municipal Treasury and the ways to handle their revenue and expenditure, for the security of the public treasury. The Bank of Kaohsiung is now the agent bank for the city's Municipal Treasury.
  • May 15, 1980 Promulgated per Order 69-Kao-Shi-Fu-Tsai-5-Tzu No. 1070.

  • October 12, 1984 Amended per Order 73-Kao-Shi-Fu-Tsai-1-Tzu No. 28159.

  • June 20, 1988 Amended per Order 77-Kao-Shi-Fu-1-Tzu No. 15975.

  • March 14, 1996 Article 3 amended and Paragraph 2 of Article 9 added per Order 85-Kao-Shi-Fu-Tsai-1-Tzu No. 5388.

  • May 27, 1997 Amendment of Article 8, Article 14, Article 21, Article 23 and addition of Article 21-1 adopted in the 46th regular meeting of the 5th session, the 4th Kaohsiung City Council.
    Filed for future reference per Letter Tai-86-Tsai No. 44761 on November 19, 1997 by Executive Yuan.

  • December 15, 1997 (Vol. 22, Winter) Amended per Order 86-Kao-Shi-Tsai-Fu-1-Tzu No. 456545.

  • June 3, 1998 Amendment of Article 20 adopted in the 46th regular meeting of the 7th session, the 4th Kaohsiung City Council.
    Filed for future reference per Letter Tai-87-Tsai No. 41221 on August 20, 1998 by Executive Yuan.

  • September 28, 1998 (Vol. 26, Fall) Amended per Order 87-Kao-Shi-Fu-Tsai-1-Tzu No. 31060.

  • October 25, 2000 (Vol. 8, Winter) Amended per Order 89-Kao-Shi-Fu-Tsai-1-Tzu No. 37946.

  • February 12, 2001 Amended per Order 91-Kao-Shi-Fu-Tsai-1-Tzu No. 2225.

  • December 1, 2003 (Gazette Vol. 8, Winter) Amended per Order 92-Kao-Shi-Fu-Tsai-1-Tzu No. 61807.

  • June30, 2005(Gazette Vol. 26, Summer) Amended and passed in the 29th regular meeting of the 5th session, the 6th Kaohsiung City Council.

  • Febuary 16, 2006(Gazette Vol. 14. Spring) Amended of Article 1 and Article 5 adopted in the 2nd meeting of the 22nd extraordinary session, the 6th Kaohsiung City Council. 

  • July 19, 2007(Gazette Vol. 6, Fall) Amended and passed in the 40th regular meeting of the 1st session, the 7th Kaohsiung City Council.

     Chapter 1 General Principles
    • Article 1 
      This Autonomous Ordinance is instituted for the purposes of Kaohsiung municipal treasury management and relevant affairs handling.
    • Article 2 
      Kaohsiung Municipal Treasury (hereinafter referred to as the “Municipal Treasury”) is in charge of the cash, notes, securities and other properties of all subordinate authorities, schools and municipality-owned enterprises (hereinafter referred to as “all organizations”) of the City, and the competent authority is Kaohsiung City Government (hereinafter referred to as the “Government”).
    • Article 3 
      For receipts and payments, custody and transfer of cash, notes and securities, and the custody of property deeds, etc. of the Municipal Treasury, the Bank of Kaohsiung or other government-owned banks shall be the treasury agent bank. Rights and responsibilities of the treasury agent bank and the competent authority, while subject to the regulation of this Autonomous Ordinance and other relevant laws and orders, shall be set out in a contract. The contract shall be submitted to the Executive Yuan for approval before being signed.
    • Article 4 
      The head office (or branch) of the treasury agent bank shall serve as the general treasury, as appointed by the competent authority, and its other branches as branch treasuries; in areas where no branch has been set up, the agent bank may, with consent of the competent authority, assign other banks to act as agent branch treasuries, and may entrust other financial institutions to collect taxes and other revenue on its behalf.
      The assignment and entrusting as mentioned in the foregoing paragraph shall be done by means of a contract of attorney, which shall be reported to the competent authority for review and reference.
    • Article 5 
      Receipts and payments, custody and transfer of cash, notes and securities, and custody of property deeds, etc. of all organizations shall be handled by the treasury agent bank and must not be handled by the organizations or other financial institutions through commissioning, unless otherwise stipulated in this Autonomous Ordinance or approved by the municipal treasury competent authority.

     Chapter 2 Management of revenue
    • Article 6
      For all of the following revenues, all organizations may collect and keep them on their own after reporting to the competent authority and obtaining approval, and turn them in to the Municipal Treasury at prescribed time: 
      1. Sporadic income.
      2. Income that is more convenient to be kept where it is received.
      All revenues in the foregoing paragraph shall be deposited to the respective organization's account at the Municipal Treasury before 3:00pm of the same day if received before noon; and before noon the next day if received after noon. Deposit must be made to the Municipal Treasury account within five days at the latest, and no appropriation or embezzlement is allowed.
      Under special circumstances, the revenue-earning organization or its superior authority may apply for an extension of custodial period by providing detailed description of the facts, and consulting the competent authority for approval.
    • Article 7 
      The treasury agent bank shall treat all incoming cash and maturing notes and securities as deposits.
    • Article 8 
      Deposits mentioned in the foregoing article are classified as follows:
      1. Municipal treasury deposit: Revenue of all organizations, except those belonging to special funds or other exclusive accounts.
      2. Deposit to special fund exclusive account: Refer to deposits immediately turned in as received or transferred from the municipal treasury deposit per the budget for specific use according to laws or contracts.
      3. 3. Deposit to custodial fund exclusive account: Refer to petty cash, revolving money for refund, receipts and payments on behalf of others, or deposits under temporary custody for subsequent appropriation or refund.
      4. Deposit to other public fund exclusive accounts: Refer to public funds which shall be legally deposited into an exclusive account, other than those mentioned above.
    • Article 9 
      Municipal treasury deposit shall be made to the municipal treasury account set up by the municipal treasury competent authority at the treasury agent bank. Deposits to the special fund exclusive account and custodial fund exclusive account shall be made to their respective accounts set up by various organizations at the treasury agent bank. Debits and credits to these accounts shall be made according to laws.
      The municipal treasury competent authority may, depending on actual needs of the treasury and after consulting the opinions of all competent authorities, centrally allocate and utilize the money kept at all exclusive accounts mentioned in the foregoing paragraph that is not included in the centralized payment system. Interests on deposits of the exclusive accounts shall be accrued as originally set down.
    • Article 10 
      Revenue of all organizations shall be submitted to the treasury agent bank or its entrusted financial institutions, and deposited to the municipal treasury deposit account, unless otherwise stipulated by this Autonomous Ordinance and other laws. The treasury agent bank or its entrusted institutions may dispatch staff to the revenue-earning organizations for processing the receipts when necessary.
    • Article 11 
      The treasury agent bank shall keep accounts of all revenues received on behalf of the municipal treasury by their sources per the general budget and by organizations. These accounts shall be reported to the Finance Bureau of the Government (hereinafter referred to as the Finance Bureau), the Department of Budget, Accounting and Statistics of the Government (hereinafter referred to as the Department of Budget, Accounting and Statistics) and the auditing authority on a daily basis.
      The treasury agent bank shall list details of all revenues received on behalf of the municipal treasury on a daily basis, and send the information, together with the counterfoil of receipt voucher verification, to the revenue-earning organizations. Accounts shall be counterchecked once a month, and be reported to the Finance Bureau, Department of Budget, Accounting and Statistics and the auditing authority by their sources per the general budget before the tenth day of the next month.
      All revenue-earning organizations shall prepare a list detailing items and amounts of the revenue on a monthly basis, and send it to the Finance Bureau before the tenth day of the next month.
     Chapter 3 Management of expenditure
    • Article 12 
      Expenditures of all organizations shall be paid out of the municipal treasury deposit account, unless otherwise stipulated in this Autonomous Ordinance. Payments of expenditures shall be made according to the legal purposes and conditions prescribed in the budget and the confirmed allocated budget. 
      Payments mentioned in the foregoing paragraph shall be made by the Finance Bureau or the treasury agent bank through e-technology transmission, where the payments and relevant matters shall be in accordance with the Electronic Signature Law. Relevant operational regulations are to be set down by the competent authority.
      In order to balance revenue and expenditures of the municipal treasury, the competent authority may borrow a loan for less than a year; the revenue shall be deposited in the municipal treasury deposit account, and the loan repayment shall be directly appropriated from the municipal treasury deposit account.
      In the municipal treasury deposit account administered by the general municipal treasury, when the sum of payments exceeds the total balance of the municipal treasury deposit on a particular day, and there is a situation of insufficient fund for payments, the exceeding amount shall be appropriated from the regulatory municipal treasury loan to the municipal treasury deposit account by the treasury agent bank to cover the payments. The amount shall be automatically returned once the municipal treasury deposit account has a positive balance.
    • Article 13 
      The auditing authority, Finance Bureau, and Department of Budget, Accounting and Statistics shall be informed of all payment bills and acts of all organizations approved by the competent authority. The auditing authority and Finance Bureau shall be informed of the allocated budgets of all organizations approved by the Department of Budget, Accounting and Statistics.
    • Article 14
      Payments of all organizations shall be made according to the legal purposes and conditions prescribed in the confirmed allocated budget or other relevant payment bills and acts. When fulfilling the payment obligations, the organizations shall issue a payment slip through the payment system, and the Finance Bureau shall notify the treasury agent bank of the payment. 
      For organizations not practicing centralized payments, they shall set up exclusive accounts at the treasury agent bank, and the money deposited shall be used pursuant to laws.
    • Article 15 
      Payment slips issued by all organizations shall be approved by the respective head of organizations or an authorized signatory, reviewed by the accounting officer-in-charge, and then processed by cashier to complete the digital signature procedures.
    • Article 16 
      Rated petty cash for all organizations may be obtained from the Municipal Treasury and kept on their own for legal utilization.
    • Article 17
      The treasury agent bank, as entrusted by the Finance Bureau to handle payment to all organizations, shall issue municipal treasury checks directly to the payees or use direct deposit according to the payment slips signed by the organizations. However, payments of the following items may be made directly to the respective organizations:
      1. Rated petty cash as stipulated in Article 16.
      2. Other special expenditures.
    • Article 18 
      The Finance Bureau shall inform the spending organizations when making payments for them.
      The treasury agent bank shall prepare regular reports on payments out of the municipal treasury deposit account to the Finance Bureau, Department of Budget, Accounting and Statistics and the auditing authority.
    • Article 19 
      At the end of a fiscal year, payments out of the unused balance of all organizations’ budgets shall be stopped, unless approval is obtained from the competent authority that the balance can be legally kept for covering expenditures of the next year.
      Balances of treasury funds kept by all organizations, except those approved to be kept for next year's expenditures pursuant to the foregoing paragraph, shall be stopped from utilization, and be returned to their respective accounts at the Municipal Treasury at the end of the year.
    • Article 20 
      Payments of aided and subsidized expenditures with specified usage shall be made according to Article 12 thru Article 19. For those with unspecified usage, the organizations shall issue payment slips through the payment system according to the confirmed allocated budget or other payment bills and acts, and the Finance Bureau shall inform the treasury agent bank that it shall issue municipal treasury checks or use direct deposit, and pay directly to the aided and subsidized organizations.
     Chapter 4 Handling revenue refund and expenditure callback
    • Article 21
      For revenues deposited to the municipal treasury deposit account that should be refunded in part or in full by the original revenue-earning organizations pursuant to laws or due to factual mistakes, the original revenue-earning organization shall send a request letter attaching all relevant proofs and documents after investigation to the Finance Bureau for issuance of a Municipal Treasury Revenue Refund Notice, and the refund shall be made to the original revenue-earning organization for returning to the original payer. The amount shall be deducted from the original revenue account. However, this does not apply to the following situations:
      1. Refund of taxes shall be handled by the Revenue Service Office, Kaohsiung City pursuant to the law.
      2. Approval has been obtained from the competent authority, authorizing the revenue-earning organizations to handle refund on its own using the rated revolving money for refund.
      The revolving money for refund mentioned in the foregoing paragraph may be granted by the Municipal Treasury for the organizations' own keeping. The revolving money for refund may be kept in the way stipulated by the Regulations on the Custody of Petty Cash.
      For the seal to be affixed on the Municipal Treasury Revenue Refund Notice, the rubbing of the seal pattern shall be sent to the Municipal Treasury for future verification. The same applies to replacement of the seal.
    • Article 21-1
      When the sum of refund mentioned in the foregoing article, except taxes, is within a specified amount, the original revenue-earning organizations may return the said amount under the petty cash account after investigation and verification.
      The specified amount in the foregoing paragraph shall be approved by the competent authority.
    • Article 22 
      After finishing the refund procedures, the person-in-charge of the Municipal Treasury shall affix a stamp standing for receipt and payment on each copy of the Municipal Treasury Revenue Refund Notice, send the first copy back to the original revenue-earning organization, send the second copy to the original revenue-earning organization together with accounting statement for submission to the auditing authority, and keep the third copy as accounting record.
    • Article 23 
      For revenues collected by all organizations on their own pursuant to Article 6, where refund is found necessary, the organizations may make refund out of the collected money before it is deposited to the Municipal Treasury. For revenues already deposited to the Municipal Treasury, the foregoing three articles shall apply.
      Refunds made out of the collected revenue by various organizations as mentioned in the foregoing paragraph and refunds verified and made by various organizations on their own pursuant to Article 21 and Article 21-1 shall be listed in the accounting statement.
    • Article 24
      Expenditures and advanced payments within the budget that are paid by the Municipal Treasury, for which stipulation is made in the laws or the expense is reduced or the budgeted payment in advance becomes unnecessary, shall be called back in part or in full. The original spending organization shall fill in the Municipal Treasury Payment Callback Notice, which shall be given to the payer for returning the payment to the Municipal Treasury.
    • Article 25 
      After receiving the returned payment stated in the foregoing article and verifying the amount with that listed on the Municipal Treasury Payment Callback Notice, the person-in-charge of the Municipal Treasury shall affix a stamp standing for receipt and payment on each copy of the notice, return the first copy to the payer, send the second copy to the original spending organization, and keep the third copy as accounting record. The person-in-charge of the Municipal Treasury shall enter the refund information into the payment system to deduct the amount in the original expenditure account.
    • Article 26 
      For self-kept outlaying funds pursuant to Article 16, returnable payments shall be collected by the spending organization itself from the payee, and be listed in the accounting statement.
      Where there is an outstanding balance of the self-kept outlaying funds mentioned in the foregoing paragraph at the end of a year, the spending organization shall fill in the Municipal Treasury Payment Callback Notice and submit it together with the returnable money to the Municipal Treasury.
    • Article 27 
      Original payees may, if received money that need to be returned, return the money directly to the Municipal Treasury, even without the Municipal Treasury Payment Callback Notice issued by the spending organizations. A written document stating the returned amount, name of the original dispensing organization, date of collection and purpose of the money shall be submitted to the Municipal Treasury for verification. The Municipal Treasury shall fill in the payment callback notice for the payee and record the money in the treasury’s account.
      For the money returned by payees directly to the Municipal Treasury as mentioned in the foregoing paragraph, if the fiscal year and the account to which it belongs are unknown, and for which the Municipal Treasury has no way to fill in a payment callback notice, a payment submission form may be filled in and the money may be recorded as “temporary receipts” in the account. The original spending organization shall be informed to submit a complementary Municipal Treasury Payment Callback Notice, for correcting the account.
    • Article 28
      Revenue refunds shall be accounted for under the original revenue account. Expenditure callback attributable to the same year's spending shall be deducted from the original expenditure account, but for previous year's expenditure, a payment submission form shall be filled in to call back the expenditure under previous year's account for repayment to the Municipal Treasury.
     Chapter 5 Supplementary provisions
    • Article 29
      The maximum amount stipulated in Article 6 and Article 16 and other restrictive conditions shall be set down by the competent authority and reported to the Department of Budget, Accounting and Statistics and the auditing authority.
    • Article 30 
      Operational Guidelines for Centralized e-Payment of Municipal Treasury as well as Directions for Entrusting Treasury Agent Banks with Issuance of Municipal Treasury Checks shall be set down by the competent authority.
    • Article 31 
      (Deleted)
    • Article 32
      The treasury agent bank shall prepare a daily list of cashed checks, and report the cashed total to the Finance Bureau, Department of Budget, Accounting and Statistics, and the auditing authority together with the revenue report mentioned in Article 11.
    • Article 33
      For the special fund exclusive accounts or custodial fund exclusive accounts set up by all organizations, the treasury agent bank shall inform the respective organizations of the receipts and expenditures on a monthly basis, and inform the respective organizations and the Finance Bureau of the closing balance of the previous month before the tenth day of each month.
    • Article 34 
      When paying for various organizations, the Finance Bureau shall regularly inform the respective organizations of the expenditure account, the amount and the balance, and the expenditures shall be listed by their administration category, department and project account, and reported regularly to the Department of Budget, Accounting and Statistics and the auditing authority. The cumulative payments, cumulative cashed amount as at the end of previous month and payments and cashed amount of the previous month of all accounts shall be reported to the Department of Budget, Accounting and Statistics and the auditing authority on a periodical basis.
    • Article 35 
      The Finance Bureau is responsible for accounting affairs of the Municipal Treasury and centralized payment; the treasury agent bank is responsible for the accounting affairs of the general municipal treasury.
    • Article 36 
      The competent authority may dispatch staff to inspect the operation of Municipal Treasury businesses administered by the treasury agent bank.
    • Article 37 
      For cash, notes, securities, receipts and payments and custodies of all organizations legally handled not through the treasury agent bank, the accounting statements shall be sent to the competent authority for examination. The competent authority may also send staff to audit such operations.
    • Article 38 
      The competent authority and the treasury agent bank shall keep important contracts about the Government’s property deeds, creditor’s rights, and liabilities, as well as other important notes and securities in their custody properly, which shall be classified and numbered, and kept with detailed description. A duplicate copy shall be transcribed or a photo shall be taken when necessary.
    • Article 39
      The treasury agent bank shall bear compensation liability when payments are made in violation of laws or contracts, which leads to loss of the Municipal Treasury. The treasury agent bank shall bear compensation liability when there is loss of treasury funds in respect of all revenues collected by the treasury agent bank on the municipal treasury’s behalf, or in respect of revenues collected by other entrusted financial institutions pursuant to Article 4.
    • Article 40 
      Those who sign for issuance of municipal treasury checks or take receipts and dispense payments or make receipt and payment orders in violation of this Autonomous Ordinance shall compensate for the loss of Municipal Treasury, besides being punished according to laws.
    • Article 41 
      This Autonomous Ordinance is put into force on the date of promulgation.