Department of Finance

Taipei City 03-0611001

1. Promulgated by Taipei City Government Order No.61-Fu-Mi-Fa-Tzu-40097 on August 14, 1972 , being a total of 40 articles.

2. Amended and promulgated by Taipei City Government Order No.61-Fu-Mi-Fa-Tzu-55847 on December 5, 1972 .

3. Amended and promulgated by Taipei City Government Order No.75-Fu-Fa-San-Tzu-111160 on September 8, 1986 .

4. Amended and promulgated by Taipei City Government Order No.80-Fu-Fa-San-Tzu-80066498 on September 26, 2000 .

5. Amended and promulgated by Taipei City Government Order No.81-Fu-Fa-San-Tzu-82075180 on October 8, 1993 .

6. Amended and promulgated by Taipei City Government Order No.88-Fu-Fa-San-Tzu-8800524200 on February 11, 1999 .

7. Amended by Taipei City Government Order No.91-Fu-Fa-San-Tzu-09108016400 on May 1, 2002 . (The original title was “Regulations on the Treasury of Taipei”)

Article 1 This Self-Governance Ordinance is enacted in accordance with the stipulations of Item 1, Subparagraph 2, Article 18 of Law on Local Government and Article 39 of National Treasury Law.

Unless there are provisions stipulated by other laws, the Taipei Municipal Treasury (hereinafter referred as “the Municipal Treasury”) and its administrative affairs shall be governed by the provisions set forth in this Ordinance.

Article 2 The competent authority of the Municipal Treasury is the Department of Finance (hereinafter referred as “the competent authority of the municipal treasury”), Taipei City Government (hereinafter referred as “the city government”).

Article 3 The municipal treasury shall manage and supervise the cash, negotiable instruments, securities and other properties of the City Government. The competent authority of the municipal treasury may assign a bank (hereinafter referred as “the agent bank of the municipal treasury”) to handle the cashiering, custody and transfer of cash, negotiable instruments and securities as well as the custody of deeds for properties.

The agent bank of the municipal treasury may sub-assign other financial institutions to collect taxes and other receipts on its behalf.

Article 4 The City Government and the subordinate government agencies, schools and business organizations operated by the City Government (hereinafter referred as each agency) shall appoint the agent bank of the municipal treasury to handle the cashiering, custody and transfer of cash, negotiable instruments and securities as well as the custody of deeds for properties. Unless as otherwise provided in other laws, each agency, for the aforementioned operations, is restricted to either self-manage or appoint other financial institutions to handle certain affairs on its behalf without prior consent from the competent authority of the municipal treasury.

Article 5 The cash, maturity notes and securities collected by the agent bank of the municipal treasury are deposited into accounts, unless as otherwise restricted by the provisions of this Ordinance and other laws, the rights and obligations between the agent bank of municipal treasury and the competent authority of municipal treasury are to be determined by an agreement approved by the City Government.

Article 6 There are three types of accounts for deposits stipulated in the preceding Article:

(a) M unicipal treasury deposits: refers to all receipts of each agency, however, it excludes deposits in special fund accounts or other special accounts that are not included in the collective disbursement system according to legal requirements.

(b) Special fund account deposits: refers to collections that are deposited according to the provisions of laws or agreements, or funds for specific uses transferred from municipal treasury deposits according to the budget plan; such deposits are not included in the collective disbursement system.

(c) Other special accounts deposits: Including deposits in petty cash special account for the miscellaneous expenses of operations, the collection and disbursement on behalf of a person or organization or temporary custody and special accounts for the custody of funds waiting to be disbursed or processed.

Article 7 The competent authority of the municipal treasury shall establish a municipal treasury deposit account at the agent bank of the municipal treasury to manage the deposits of the municipal treasury collectively.

The competent authority of the municipal treasury may use the balance of municipal treasury deposits to reimburse loans or engage in finance maneuvers.

Each agency shall establish a separate special account for deposits in each special fund account and another special account that is not included in the collective disbursement at the agent bank of the municipal treasury.

Considering actual needs of the municipal treasury, the deposits of the special accounts that are stipulated in the preceding paragraphs may be maneuvered and used together with the consent of each respective competent authority and with approval by the City Government; Except for the debt fund, an interest payment shall be made to an interest-bearing special account.

With the consent of the respective competent authority and approval of the City Government, the funds of special fund accounts that are not included in the collective disbursement system can be lent mutually. The Taipei City Audit Bureau, Ministry of Audit (hereinafter referred as the Audit Bureau) shall oversee matters relating to the financial maneuvers of each agency that are made according to this Ordinance.

Article 8 Unless as otherwise provided in this Ordinance and other laws, the payers make payments directly to each agency at the agent bank of the municipal treasury or financial institutions that are assigned by the agent bank; the receipts shall be deposited into the municipal treasury deposit account.

Article 9 Each agency shall temporarily take custody of the following receipts after re porting to the City Government for approval, the collections will then be remitted to the municipal treasury:

(1) Miscellaneous income.

(2) In the event that it is more convenient for the payers to pay on the spot.

The aforementioned receipts shall be remitted to the municipal treasury deposit account on the same day or prior to noon of the next day after collection, or deposited into the custodial special account of each agency. The aforementioned collection that is deposited into the custodial special account of each agency must be remitted to the municipal treasury deposit account within five business days of the date of deposit of the special accounts.

Article 10 The agent bank of municipal treasury shall categorize the collections according to the source, subject and agency categories in the general budget. The daily account statements for municipal treasury shall be presented to the Audit Bureau, the competent authority of the municipal treasury and the Department of Budgeting, Accounting and Statistics, Taipei City Government (hereinafter referred as “the Department of Budgeting, Accounting and Statistics”). In addition to this, the daily- itemized list of receipts and the notification slips of receipts vouchers shall be delivered to the recipient agencies. The accounts shall be verified monthly, the agent bank of the municipal treasury shall present the monthly account statements according to the source and subject categories in the general budget to the Audit Bureau, the competent authority of the municipal treasury and the Department of Budgeting, Accounting and Statistics before the tenth of the next month.

Article 11 The competent authority of the municipal treasury shall establish a collective disbursement agency to handle the matter of disbursement for each agency. However, this restriction is not applied to the disbursements of special funds and custodial accounts that are not included in the collective disbursement system.

Article 12 Unless as otherwise provided in t his Ordinance, the disbursement of each agency shall be paid directly from the municipal treasury deposit account. The disbursements of annual expenses shall be handled according to the budget and approved distribution budget or statutory uses and conditions prescribed in the disbursement bills.

Article 13 The Department of Budgeting, Accounting and Statistics shall notify the Audit Bureau, the compe tent authority of the municipal treasury and the collective disbursement agency after the distribution budget and disbursement bill of each agency have been approved. However, this restriction does not apply to the budgetary units of subordinate agencies or funds that do not follow the distribution budget system.

Article 14 At the time of disbursement, each agency shall issue a payment voucher to the collective disbursement agency as a notification of disbursement.

The budgetary units of subordinate agencies that are not included in the collective disbursement system, in accordance with legal requirements, shall issue checks of special fund accounts for disbursement.

For the disbursement as mentioned in the preceding first item, in the event that electronic data have been used instead, the operation of issuing payment vouchers can be handled by a link to the computer system of collective disbursement agencies or electronic data transmission and a computer record of the collective disbursement agencies will be used to produce payment vouchers.

Article 15 The head of each respective agency or the person authorized by the head to sign on the agency's behalf and the responsible treasurer shall sign and certify that the issued payment vouchers are for legal use.

Article 16 Each agency shall sign and draw an authorized petty cash from the municipal treasury deposit account; the amount to be kept and used individually. The competent authority of the municipal treasury determines the limit of authorized petty cash. However, the respective competent authority of budgetary units of subordinate agencies or funds that are not included in the collective disbursement system shall determine the respective limits of authorized petty cash.

Article 17 The competent authority of municipal treasury shall notify the Audit Bureau, Department of Budgeting, Accounting and Statistics and collective disbursement agency of the maximum amount and other restrictions as stipulated in the preceding Articles 9 and 16.

Article 18 The collective disbursement agency shall handle the disbursement of each agency according to the statutory payment vouchers issued and certified by the respective disbursement agency. After verification with the distribution budget or other related disbursement bills, the payee shall be paid directly either a treasury check being issued or by a deposit into the payee's bank account. However, this restriction does not apply to the following situations:

(a) The appropriation and return of authorized petty cash; the amount is deposited into the special petty cash account of each respective agency.

(b) Regarding the disbursement of salaries and other payments for employees of each respective agency, the employees shall be paid by means of either a deposit into the employees' respective bank accounts through transfers or else each respective agency shall appoint a designated person to collect and forward the disbursement to the employees.

(c) For other expenses that have already been deducted on behalf of or are taken back by each agency for payment on its own, each agency will collect the issued order checks with payees' titles and forward it to the payees.

(d) The disbursement of land value compensation for land expropriation, compensation for demolition and moving and processing expenses for constructions on expropriated land as well as other relevant expenses are deposited into the special account of the agent bank of the municipal treasury and disbursed on its behalf according to legal requirements.

Article 19 At the end of a fiscal year, the disbursement of each agency's budget balance that is not used shall be suspended except in the case of debt contract where duties have not yet been completed and on account of actual needs, the payment must be made according to regulations.

At the end of a fiscal year, the disbursement of expenses that is made and in the custody of each agency shall be suspended except in the case of debt contract where duties have not yet been completed or the assigned matters have not yet been completed and thus the amount can be transferred to the next fiscal year for continuous use.

Article 20 The agent bank of the municipal treasury shall uniformly print municipal treasury checks.

Article 21 The official seal of the chief of the competent authority of the municipal treasury must be printed on the municipal treasury check; the chief of the collective disbursement agency must sign the check at the time it is issued.

Article 22 The municipal treasury check may designate the area to honor the checks and the agent banks within the designated areas are in charge of honoring the aforementioned checks.

The territory of the aforementioned honor area is determined by the competent authority of the municipal treasury and clearly stipulated on the treasury check.

Article 23 The agent bank of the municipal treasury shall compile a daily statement for the honored checks and the statement shall be given to the collective disbursement agency. Every day, the total amount of honored checks, along with the receipt report as stipulated in Article 10 shall be separately presented to the Audit Bureau, the competent authority of the municipal treasury and the Department of Budgeting, Accounting and Statistics.

Article 24 According to the provisions of this Ordinance, each agency shall establish special fund account deposits or other special accounts deposits at the agent bank of the municipal treasury; the agent bank of the municipal treasury must send a monthly statement of receipts and disbursements to each agency; the agent bank of the municipal treasury shall notify the competent authority of the municipal treasury about the account balances at the end of each month prior to the tenth of each month.

Article 25 The collective disbursement agency, when handling disbursement for each agency, shall send an itemized monthly statement, including the disbursement items, amount and balance, to each respective agency. And, in accordance with the relevant regulations, the collective disbursement agency shall also send monthly statements separately, listed according to subject and agency, to the Audit Bureau, the competent authority of the municipal treasury and the Department of Budgeting, Accounting and Statistics.

Article 26 The competent authority of the municipal treasury is responsible for controlling accounting matters to the municipal treasury, the collective disbursement agency is responsible for disbursing payments for the municipal treasury and the agent bank of the municipal treasury acts for the municipal treasury in providing services to the general public.

Article 27 The Audit Bureau is responsible for the auditing of the municipal treasury.

Article 28 The competent authority over the municipal treasury shall send personnel to examine the agent bank of the municipal treasury in carrying out transactions of the municipal treasury.

Article 29 In the event that the municipal treasury incurs damages as a result of laws or violation of agreements by the agent bank of the municipal treasury in making disbursements, the agent bank of the municipal treasury is liable for indemnification. When collecting receipts on behalf of each agency or in accordance with any agency agreement whereby other financial institutions have been authorized to collect receipts on behalf of the municipal treasury the agent bank of the municipal treasury shall be jointly and severally liable for indemnification when there is a loss of the municipal treasury's funds.

Article 30 Where the agent bank of the municipal treasury is dissolved or declares bankruptcy, the municipal treasury, for the creditor's right stipulated the agency agreement, has priority in any financial claim.

Article 31 In the event that due to a violation of the provisions stipulated in this Ordinance, the municipal treasury has incurred damages where municipal treasury checks are drawn probably for receipt and payment or for ordered receipts and payments in addition to punishment according to law, compensation for such damages incurred by the municipal treasury should also be imposed.

Article 32 With regard to cash, negotiable instruments, securities, cashiering and custody matters that in accordance with law, are not handled by the agency bank of the municipal treasury, each agency shall prepare separate accounting reports and submit them to the competent authority of the municipal treasury; the competent authority of the municipal treasury shall send its personnel to perform an audit.

Article 33 The competent authority of the municipal treasury and the agent bank of the municipal treasury shall classify, number, record clearly and conserve properly the property deeds of the city government, the important contracts on creditor's rights and debts as well as the negotiable instruments and securities in its custody, if it is deemed necessary, the transcripts or photos of the aforementioned documents shall be made or taken, or the aforementioned documents shall be kept in machine-processed storage media.

Article 34 The provision of this Ordinance related to the cashiering, custody and transfer of cash, negotiable instruments and securities as well as the custody of properties deeds shall apply mutatis mutandis to Taipei City Council.

Article 35 This O rdinance shall be effective from the date of its promulgation.

(The English version is for reference only. In case of dispute, the Chinese version( 臺北市市庫自治條例)shall prevail over the English.)