№ 4 (64)/2003

Summary

Vladislav Ignatov, Nikolay Loktionov

(p. 3)

Results of auditing privatization and efficiency of using federal property, production and economic potential as well as foreign trade activities of "ALROSA" Joint-Stock Company.

The purpose of the audit is to check as follows:

• legitimacy of privatization, entity and organizational structure of "ALROSA" joint-stock company;

• efficiency with which the production and economic potential of the company and federal property is used;

• efficiency of "Almazy Rossia-Sakha" joint stock company's performance.

Vladislav Ignatov

(p. 38)

On results of auditing the compliance with the RF laws in the process of privatizing joint-stock company "Tulachermet" and Dzerzhinsky Kosogorsk steel works.

The report contains facts proving that in the process of privatizing NPO "Tulachermet" and selling government shares in the joint-stock company "Tulachermet" some RF laws regulating procedures for protecting government interests in the "Kosogorsk Steel Works" were violated; it also shows examples of inefficient federal property management.

Ivan Dakhov

(p. 61)

Report on the results of auditing the targeted and efficient use of federal budget funds allocated to the Voronezh Regional Agro-Industrial Complex in 2001 and in the passed period of 2002.

The purpose of the audit was as follows:

• to check the targeted and efficient use of federal budget funds allocated to the Voronezh Regional Agro-Industrial Complex in 2001 and in the passed period of 2002. In 2001 the agro-industrial complex of the Voronezh Region overcame the tendency of reducing sowing areas for cereals and other crops, life stock decrease showed slower rates, production growth of grain and other agricultural products as well as of manufactured foodstuffs was achieved. Yet the economic position of agricultural enterprises and organizations remains to be difficult. The wear of machine and tractor stock amounted to 92 %, the period of depreciation for 85-90 % of agricultural machine has already expired, the equipment is overloaded by 2-3 times.

However, despite the growth of productivity and increase of gross agricultural produce the economic state of farms is exacerbated by the fall of prices for agricultural products against the growth of prices for manufactured goods which has a negative impact on the agricultural producers' efficiency. The situation in the Voronezh Regional Agro-Industrial Complex stabilized in 2001 and for the 9 months of 2002, some industrial and financial indicators of agricultural enterprises' performance show a positive tendency that has been, to a great extent, promoted by the government aid provided from the federal budget including supplies of a large amount of agricultural equipment on leasing conditions.

Mikhail Surkov

(p. 77)

On results of auditing the use of federal budget funds allocated for the maintenance of specialized educational institutions of the RF State Customs Committee, Russian Customs Academy.

The Russian Customs Academy was financed within the allocated limits of budget obligations in 2001 and first six months of 2002.

The federal budget funds allocated to the Russian Customs Academy were disbursed, basically, in compliance with the current laws. At the same time some violations and drawbacks were detected in the disbursement of these funds.

Vladimir Panskov

(p. 95)

On results of auditing (on a selective basis) the compliance with submissions, mandatory orders, opinions and other decisions made by the Collegium of the RF Chamber of Accounts based on the results of audits conducted by the division responsible for control over formulation and execution of federal budget funds in 2001 and first six months of 2002.

Subject of the audit was to see whether federal and regional executive authorities fully complied with submissions and other decisions made by the Collegium of the RF Chamber of Accounts related to correction of tax and budget code violations, drawbacks and neglect in the performance of regional tax and treasury authorities, financial authorities under the RF regional administrations, and also - how fully tax losses detected in the course of thematic audits were reimbursed into the budget and what measures were taken against those guilty of violating the RF tax legislation.

Vladimit Panskov

(p. 110)

Report on the results of the thematic audit conducted in the RF Ministry of Industry, Science and Technologies, in Moscow medical enterprises and institutions related to the sustainable development of the tax basis, complete and timely receipt of taxes by the federal budget.

Subject of the audit: tax basis, complete and timely receipt of taxes by the federal budget.

The audit showed as follows:

• unsatisfactory funding of federal state program "Development of Medical Industry for 1998-2000 and for the period up to 2005" and, starting from 2002, the halt of funding were major reasons for the drop of pharmaceutical production which is strategically important for Russia;

• the RF Ministry of Industry, Science and Technologies did not execute sufficient control over economic activities carried out by federal medical enterprises in the field of pharmaceutical production;

• mandatory certification of pharmaceuticals resulted in the deterioration of local producers' financial state and significant price increase;

• measures taken by the RF Government to curb the growth of prices for pharmaceuticals through state registration of limits imposed on manufacturing prices of some local and foreign producers and establishment by RF regional executive authorities of wholesale and retails markups proved to be inefficient.

Sergey Ryabukhin

(p. 131)

On results of auditing the use of federal budget funds allocated in 2001 and the passed period of 2002 for the execution of section "Financial aid to other levels of government" by the Astrakhan Region and the Closed Administrative Territorial Entity (ZATO) Znamensk of the Astrakhan Region for the purposes of funding expenditures that are not supported by their own financial resources.

The audit conducted on the performance of the Astrakhan Region administration detected as follows:

• the limit of budgetary loans granted to legal entities and approved by regional law "On the 2001 Regional Budget" exceeds the limit prescribed by the RF Budget Code;

• in the process of executing general expenditures of the 2001 regional budget the expenditures have been funded unevenly across related industries;

• with certain industries being underfinanced, some federal bodies and public organizations received funding from the regional budget;

• there is no adequate control over the use of subsidies;

• federal budget funds allocated for implementation of the Federal program of social and economic development of the Astrakhan Region were used for other than projected purposes.

The performance audit conducted in the Administration of ZATO Znamensk of the Astrakhan Region in relation to the disbursement of federal budget funds detected as follows:

• organization of the budget system and budget process in ZATO Znamensk, Astrakhan Region, does not comply with the RF Budget Code;

• subventions from the federal budget to capital investments were used for other than projected purposes;

• the salaries of municipal public servants and qualification allowances are unduly high.

Mikhail Beskhmelnitsyn, Vladislav Ignatov

(p. 156)

Reports on the results of auditing the way of funding and using the state assets within the framework of implementing the Program of railway structural reforms in the railway transport.

The purpose of the audit was to check the RF Railways Ministry's activities to comply with the RF Government's resolution № 384 "On the Program of Railways Structural Reform" of 18 May 2001.

The results of the railways reform first stage were assessed.

Nikolay Loktionov

(p. 193)

Report on results of auditing the legitimacy of getting and using foreign loans granted to public company "Sovcomflot" in 1989 against guaranties provided by the USSR Ministry of Marine Fleet to fund construction of 10 main line container carriers including settlements between the user of the loans and the federal budget.

The subject of the audit was agreements, contracts, financial, banking and other documents and compliance thereof with RF laws and regulations related to borrowing and using borrowed funds as well as formation of the RF public debt.

Alexander Piskunov

(p. 202)

Report on the results of the thematic audit conducted on the use of federal budget funds allocated for construction and purchase of housing for military men of the RF Defense Ministry and for the persons dismissed from the Armed Forces.

The purpose of the audit is to assess efficiency of using public funds allocated for provision of housing to the officers of the RF Defense Ministry, those dismissed from the military service or sent to the reserve as well as their family members.

Major reasons that did not allow to put an end to the growing number of officers without place to live and reduce considerably the number of those dismissed from the military service and having no place to live were as follows:

• insufficient funding of housing construction for officers of the RF Defense Ministry and purchasing for them housing facilities for federal budget funds;

• incomplete implementation of the federal target program "Government Housing Certificates" and establishment of imperfect procedures for implementation thereof;

• considerable reduction of the share of funds allocated for provision of housing to the officers for the business-like proceeds earned by the RF Defense Ministry;

• violations and drawbacks in disbursement of public funds allocated for the construction and purchase of housing facilities to officers;

• lack of efficiency in using the housing facilities assigned to the RF Defense Ministry.

Yury Voronin, Gennady Batanov

(p. 219)

On the status of and prospects for development of sanatorium-and-health-resort system in the Russian Federation (analytical report).

Sanatorium-and-health-resort system in Russia has traditionally been an integral part of the government policy and an important section of the public healthcare system. In the course of the audits conducted on sanatorium-and-health-resorts the RF Chamber of Accounts has looked at the provision of sanatorium-and-health-resort support to residents in 10 ministries and agencies and in the Social Insurance Fund of the Russian Federation.

Nearly each relevant Federal Law, RF President's Address, RF Government's Resolution indicates to the social importance of treatment and rehabilitation provided to the Russian population. Yet the analysis of audit materials detected some significant drawbacks:

• at the present time the RF sanatorium-and-health-resort complex does not constitute a single system of the population's rehabilitation due to the lack of the adequate legal basis;

• there is no adequate coordination on the part of the government in relation to the status and use of sanatorium-and-health-resort institutions held in the federal ownership;

• no government policy is pursued in the field of preservation and development of the country's sanatorium-and-health-resort complex, there is no concept and federal target program aimed at extension of access to and guarantee of the sanatorium-and-health-resort aid to the population.

Discontinued financing of the Social Insurance Fund for the purposes of sanatorium-and-health-resort treatment to be provided to employees and their family members from January, 1, 2003, violates the Russian citizens' constitutional rights to the health protection and will have a most negative impact on the formulation of budgets in the health resort areas.

Law "On the German Federal Chamber of Accounts" and short background of activities thereof

(p. 239)