The Supreme Audit Institutions of Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan held a regular joint meeting of the Collegium via videoconference.
The meeting summarized the results of the 2016 inspection of compliance by the competent authorities of the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic and the Russian Federation with the Protocol on the Procedure for Crediting and Distribution of Import Customs Duties (Other Duties, Taxes and Charges of Equivalent Effect) and their transfer to the budgets of the EAEU Member States.
According to Tatyana Golikova, Chairwoman of the Russian Accounts Chamber, giving a welcoming speech at the opening session, the Eurasian Economic Union is a successfully developing integrated entity. “We note the positive dynamics of economic growth of our countries. This year, the total GDP of the Union increased by 1.8% percent,” she said.
The head of the Russian Audit Institution also gave a high evaluation of the activities of Supreme Audit Institutions in the framework of the EAEU. “Our cooperation can be described as effective and productive. We have accumulated considerable experience in carrying out joint control activities and continue to improve our interaction. Thus, in the interests of providing prompt solution to all issues, a working group was established from among specialists of our departments directly involved in the inspections,” reported Tatyana Golikova.
The reports to the Board were made by the representatives of audit institutions of the five countries.
The parties were unanimous in their assessment of the inspection results, noting that in 2016 the competent authorities of the EAEU member countries generally ensured compliance with the procedure of distribution of import customs duties. Import duties are distributed in accordance with the established values* for each Party.
The total amount of import duties received by the budgets of the Parties in 2016 amounted to USD 9.8 billion. Compared with 2015, there has been an overall decrease in the amount of credited import duties by USD 782,7 million or 7.4%.
In 2016, the import customs duties in the Russian Federation amounted to RUB 570 billion, in the Republic of Armenia they totaled AMD 33.5 billion, in the Republic of Belarus – BYN 974,5 million, in the Republic of Kazakhstan – KZT 190,2 billion, in the Kyrgyz Republic – KGS 12.1 billion.
However, the results of the inspection indicate the persistence of a number of issues that Supreme Audit Institutions have already noted following the previous inspections.
One of them is the lack of a working system of information and technical support for the overall processes of the Union in the field of customs. The inspection has shown that, despite the adoption of the technical documents regulating information exchange between the central customs authorities using a common process of integrated information system for the foreign and mutual trade, the work on the implementation of measures provided for therein and the introduction of the overall process has not been organized. As a result, the exchange of information between the central customs authorities has not been implemented yet. As the representative of the Eurasian economic Commission, who also attended the joint meeting, explained, the information subsystems are currently being finalized and configured and the final introduction of the information process is scheduled for the end of 2018.
Moreover, the member countries have not yet adopted the Agreement regarding the procedure for conducting joint audits by the SAI on the issues of compliance with the procedure for crediting and distribution of import customs duties and their transfer to the budgets of the EAEU member states.
In addition, the inspection has once again revealed the problematic issues related to the distribution of import customs duties for which the obligation to pay arose on September 1, 2010.
In particular, in the Republic of Kazakhstan, the import duties on goods imported by organizations operating in the field of mineral resources management were being credited to a undistributable account during the period from 2014 to 2016, after September 1, 2010. Taking into account the result of consideration of the claim submitted by Kazakhstan in the EAEU Court, the competent authorities of the Republic of Kazakhstan were requested to take measures to comply with the provisions of the Protocol in respect of such import duties.
Following the meeting, the Board resolved to submit the inspection report to the governments of the Russian Federation, the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan and the Kyrgyz Republic. In addition, the inspection report will be sent to the Chambers of the Federal Assembly of the Russian Federation, Zhogorku Kenesh (the Supreme Council) of the Kyrgyz Republic and the Eurasian Economic Commission.
The delegation of the Accounts Chamber of the Russian Federation headed by Tatyana Golikova, Chairwoman of the Accounts Chamber, participated in the 70th meeting of the Governing Board of the International Organization of Supreme Audit Institutions (INTOSAI), which was held in Graz (Austria).
The event was attended by representatives of Supreme Audit Institutions from 21 countries.
In her speech at the meeting, the Chairwoman of the Accounts Chamber of the Russian Federation touched upon the issues of organizing the activities of the international audit community, noted the involvement of INTOSAI members in the discussion of proposals on priority areas of further SAI cooperation and provided information on the preparations for the XXIII International INTOSAI Congress which is scheduled to be held in Moscow in 2019.
48 audit institutions have participated in the elaboration of topic proposals for the XXIII INTOSAI Congress. Upon the results of the inter-institutional cooperation, two main topics have been chosen: “Information Technology in Public Administration Development" (topic I, the Chairman is the Supreme Audit Institution of the People’s Republic of China) and “The Role of Supreme Audit Institutions in Achieving National Priorities and Goals” (topic II, the Chairman is the Accounts Chamber of the Russian Federation).
In her speech, Tatyana Golikova noted that the exchange of good practices on innovative approaches in the field of audit contributes to achieving the main strategic goal of the organization which is updating the system of professional standards, building the capacity of national authorities and strengthening their role in the system of public administration, as well as enhancing the authority of INTOSAI community.
The Chairwoman of the Russian Accounts Chamber noted that the Chamber has currently been actively working on the organization of the XXIII INTOSAI Congress and that it plans to launch the website of the event by the end of 2017. The importance of the upcoming event is highlighted by attention from the Administration of the Russian President which has created and approved the inter-departmental Organizing Committee composed of representatives of Federal Ministries and departments.
At the end of her speech, Tatyana Golikova has drawn attention of the participants to the extensive experience of Russia in organizing large international forums and expressed confidence in the successful holding of such a significant for the global audit community event which will take place in Moscow in 2019.
The Accounts Chamber of the Russian Federation and the General Auditing Bureau of the Kingdom of Saudi Arabia signed a Memorandum of Understanding on cooperation in the field of audit.
The document was signed by Tatyana Golikova, Chaiworman of the Accounts Chamber, and Mr. Hussam bin Abdulmohsen Alangari, President of the General Auditing Bureau of the Kingdom of Saudi Arabia.
The MOU is the first bilateral document signed by the General Auditing Bureau of Saudi Arabia with a supreme audit institution of another country.
The main objective of the Memorandum is development of cooperation between the two countries in the field of financial audit and performance audit within INTOSAI and other regional organizations of which they are members. In accordance with the signed agreement, the parties will implement joint research projects and activities including conducting training programs, organizing round tables and conferences on the relevant topics of financial audit and performance audit.
During the meeting, the participants noted the significance of the first state visit to Russia of His Majesty Salman bin Abdulaziz Al Saud, King of Saudi Arabia and the Custodian of the Two Holy Mosques. This historic moment, as was the general opinion of both parties, will serve as an impetus for the development of the entire complex of interstate relations and, first and foremost, will affect trade and economic relations of Russia and Saudi Arabia.
During the meeting, participants also confirmed their readiness to exchange good practices in fields of mutual interest, including the activities of the two control agencies in the international INTOSAI community.
“We would like to invite you to cooperate in the framework of the INTOSAI Committee on Goal 3. As you know, we head two working groups on public procurement and on key national indicators, and we would like to invite the specialists of your country to participate in the work of these groups,” addressed her Saudi colleagues Tatyana Golikova.
In turn, Mr. Hussam bin Abdulmohsen Alangari expressed hope that the Accounts Chamber of the Russian Federation will head INTOSAI in 2019. “We, the General Auditing Bureau of the Kingdom of Saudi Arabia, are looking forward to this along with all of our international community – I mean the Supreme Audit Institutions. This will enable us to cooperate closely and to have the opportunity to offer our experience in this important international organization,” - said Mr. Alangari.
Following the signing of the Memorandum of Understanding, the parties exchanged kind wishes and expressed confidence in the success of further professional c
In order to provide a comprehensive assessment of the performance of the national Supreme Audit Institutions (SAIs), it is necessary to implement unified regulations and result planning procedures for the public audit and control activities. This statement was made by Tatiana Golikova, the Chairwoman of the Accounts Chamber of the Russian Federation, during her speech at the XVII Council Session of the Supreme Audit Institutions Heads from the member-countries of the Commonwealth of Independent States.
Tatiana Golikova stated that there are already international accounting and financial reporting standards in legal force, but unfortunately no approved documents for unified standards of accounting and reporting in the areas of public audit and control activities. "Mostly identical facts of audit are reflected in different ways by the auditing and controlling bodies, such as the budget expenditures and the monetary assessment of the irregularities identified," noted the Chairwoman of the Accounts Chamber.
Tatiana Golikova also mentioned to the session participants that the Accounts Chamber of the Russian Federation always submits an annual report to the national parliament, which contains, among other things, a detailed analysis of quantitative data on the key performance indicators of the supervisory institution. "In its performance report the Accounts Chamber uses the main performance indicators which can also be used as key indicators of performance for SAI," said the Chairwoman.
In the annual activities report, the Accounts Chamber first directs its attention to the increase in the total amount of reported irregularities and deficiencies during the transfers and usage of the budget as a result of monitoring and expert-analytical activities, and to the reduction of budgetary resources, with signs of untargeted and inefficient use of federal and other resources. "Just in 2016, 145.6 million RUR had been returned to the Russian budget during the control activities of the Accounts Chamber of the Russian Federation, which is 4.9 times more than in 2015," explained Tatiana Golikova.
In 2016, in accordance with range of its powers and responsibilities, the Accounts Chamber of the Russian Federation has sent out 434 submissions and prescriptions (and 352 in 2015). 131 control measure submissions have been directed to the prosecuting authorities, preliminary investigation bodies and state security agencies. As a result of the measures taken by the Public Prosecutor's Office after submissions from the Accounts Chamber, the country has recovered 142.5 million rubles. (which is 8.5 times more than in 2015). In 2016, the stance of the Accounts Chamber has been fully taken into account in the 126 final draft legal acts, and has been partly applied to the 98 final draft legal acts. Also, the control over the implementation of the audit results as well as the number of decisions taken as a result of control activities, are the criteria for evaluating the performance of the Accounts Chamber.
"If performance indicators are accepted and approved, there will be a need for a period of harmonization and their implementation." "But the main thing is to start work in this direction, and today's meeting offers an excellent opportunity to focus on advanced and forward-looking methodologies for improving performance assessment, as well as to share experiences and new ideas", summarized Tatiana Golikova.
The Council Session of SAIs Heads of the CIS member States will continue until the evening. Before the official opening ceremony, Tatiana Golikova, along with other heads of delegations, has met with the President of the Republic of Azerbaijan, Ilham Aliyev.
On September 5, 2017, on the sidelines of the XVII Council of Heads of the Supreme Audit Institutions of the CIS Member States in Baku, Tatyana Golikova, the Chairwoman of the Accounts Chamber of the Russian Federation, signed the renewed inter-institutional cooperation agreements with Leonid Anfimov, Chairman of the State Control Committee of Belarus, and Nurmukhambet Abdibekov, Chairman of the Accounts Committee for Control over Execution of the Republican Budget of the Republic of Kazakhstan.
In the course of bilateral meetings, the heads of audit institutions unanimously acknowledged prominent bilateral and multilateral cooperation. The focus of attention was holding of annual joint events in the format of the Eurasian Economic Union on distribution of customs duties, as well as external audit (control) in the EAEU bodies.
Following the meetings, the Heads of the Supreme Audit Institutions (SAIs) discussed the idea of establishing an expert group of SAI representatives from EAEU countries which will perform a task of updating the relevant methodological and regulatory framework.
Tatyana Golikova also particularly marked the lively dialogue of the Russian and Belarusian SAIs within the Union State. The cooperation between the two agencies is based on the annually updated Plan of Joint Events. The Chairwoman of the Russian Accounts Chamber proposed to her Belarusian counterpart to proceed with drafting this document for 2018.
“The diversity of formats and areas of cooperation of Supreme Audit Institutions of Russia and Belarus have necessitated the updating of the bilateral cooperation agreement”, explained Tatyana Golikova.
The cooperation of the SAIs of Russia and Kazakhstan, which has begun in 2004, also includes exchange of experience and implementation of control and expert analytical activities on issues of mutual interest.
“I am confident that the signing of the updated cooperation agreement between the Accounts Chamber and the Accounts Committee will contribute to enhancing our cooperation in a variety of formats,” - said Tatyana Golikova at the official ceremony. The Chairwoman of the Russian Accounts Chamber proposed to her colleague to consider the possibility of establishing the multi-year cooperation program that could provide for relevant seminars at the sites of the Accounts Chamber and the Accounts Committee, as well as videoconferencing.
The updated versions of the agreements provide for the exchange of information and reference materials, including standards and methodological developments in the field of external public audit, joint or concurrent control and expert analytical events and external assessment of each other’s activities.
In addition, participants expressed their interest in information analytical system of remote external state audit (control) developed and actively used by the Accounts Chamber of the Russian Federation.
The 1st meeting of the INTOSAI Working Group on Public Procurement Audit chaired by the Accounts Chamber of the Russian Federation was held in the capital of the Portuguese Republic, Lisbon.
The meeting was attended by representatives of the Supreme Audit Institutions from 12 states: Russia, Armenia, Belarus, China, Kuwait, Kyrgyzstan, Latvia, Pakistan, Portugal, Serbia, Slovenia and Thailand. The group is comprised of 17 countries.
During the opening ceremony, the President of the Supreme Audit Institution of the Portuguese Republic, Vitor Kaldiera, welcomed the participants with his opening speech.
The focus of the meeting was on issues related to the standard for public procurement audit currently in the process of development by the Working Group.
In particular, the meeting participants received a report on the initial assessment of the standard, discussed the timing and procedures required for the preparation of the draft project proposal, agreed on its structure as well as on the format for proposal submissions for its finalization, and decided on the deadline and on terms for its harmonization and approval in accordance with the INTOSAI procedures.
The main constituent documents of the Working Group were also considered and approved during the meeting: Terms of Reference and work plan for 2017-2019
In addition, new members of the WG (SAIs of Kuwait, Pakistan, Serbia and Thailand) presented their reports on their national best practice and characteristics of public procurement audits. Armenian and Portugal SAIs have also made their own presentations.
The President of the Russian Federation, Vladimir Putin, signed a Decree "On the Organizing Committee tasked with the preparation and organization of the XXIII International Congress of Supreme Audit Institutions (INCOSAI)." In accordance with the signed document, Tatiana Golikova, the Chairwoman of the Accounts Chamber of the Russian Federation has been duly appointed as a Chairwoman of the Organizing Committee tasked with the preparation and organization of the XXIII International Congress of Supreme Audit Institutions (INCOSAI). The composition of the Organizing Committee will be approved within one month.
The decision to appoint the Supreme Audit Institution (SAI) of Russia as the host for the next INCOSAI has been adopted by the participants of the XXII INCOSAI, which took place in Abu Dhabi - the capital of the United Arab Emirates, in December 2016.
During her INCOSAI speech in December 2016, the head of the Russian control agency, Tatiana Golikova had expressed her gratitude to the forum community for supporting Russia's candidature for hosting the XXIII INCOSAI. She also pointed out the high-level experience accumulated by the Accounts Chamber of the Russian Federation in organizing major international events, which without any doubt will allow it to successfully organize and host the XXIII INCOSAI in Moscow. "It is not only a great honor but also an enormous responsibility to hold this INCOSAI," noted Tatiana Golikova.
The XXIII International Congress of Supreme Audit Institutions (INCOSAI) will be held in Moscow in 2019.
For the consideration of the international auditing community the Accounts Chamber of the Russian Federation has proposed the following INCOSAI topics: " Information technology in the development and improvement of efficiency of public administration" and "the role of supreme audit institutions in achieving strategic objectives and priorities".The adopted resolution allows Russia to remain in leading positions in the Governing Board of INTOSAI for nine years, including three years (in the period 2019-2021), Russia will chair this global organization with 194 member states. The Russian leading position in this International Organization and the instruments of international audit cooperation (such as joint and parallel, controlling and expert-analytical activities) will, to a certain extent, help to promote the interests of Russia through trade, economic, scientific and technical cooperation on a bilateral and multilateral levels.
Within the framework of the official visit of the delegation of the Accounts Chamber of the Republic of Slovenia to the Accounts Chamber of the Russian Federation, the Chair of the Accounts Chamber of the Russian Federation Tatyana Golikova and the President of the Accounts Chamber of the Republic of Slovenia signed the Cooperation Agreement. This document confirms the intention of the two countries to develop cooperation in the field of state audit and is an updated version of the Memorandum of understanding on cooperation dated May 31, 2006.
During the meeting with the Slovenian colleague Tatyana Golikova noted that "the experience of auditing work with our Supreme Audit Institutions already exists." So, in 2013 - 2014 the control bodies of the two countries carried out a verification of the implementation of the Memorandum between the Governments of the Russian Federation and the Republic of Slovenia on important projects for the expansion of bilateral economic cooperation signed in Moscow on November 17, 2010. In this regard, the Chair of the Accounts Chamber, Tatyana Golikova, suggested Tomaz Vesel similar control measures to verify the implementation of joint projects of cooperation between the two states.
"We could consider the implementation of a number of intergovernmental agreements. First, we are talking about an intergovernmental agreement on the establishment and conditions of the centers of science and culture on March 22, 2011, "she said, adding that there is also an Agreement between the Government of the Russian Federation and the Government of the Republic of Slovenia on cooperation in the field of culture, science and education and an intergovernmental agreement on military graves.
"Another perspective topic of the audit is the study of issues related to the implementation of the intergovernmental agreement on cooperation in the prevention of accidents, disasters and natural disasters and the elimination of their consequences. In addition, in the sphere of experience exchange, we could work out the possibility of holding a seminar or a round table on the practice of implementing internal financial control and internal financial audit at control facilities", - said Tatyana Golikova.
The proposals of the Accounts Chamber have found a positive response among Slovenian colleagues.
In addition, the parties touched upon the issue of the activities of the Russian and Slovenian SAIs on the INTOSAI and EUROSAI lines. As Tatyana Golikova noted, "we take an active part in the work of a number of EUROSAI working groups, for many years actively supported the work of the EUROSAI Committee on Professional Standards. The Accounts Chamber of the Russian Federation has strong positions in this organization. "
In conclusion Tatyana Golikova shared with the Slovenian delegation the experience of organizing in the Accounts Chamber of the Russian Federation relations with the media and the latest innovations in the IT sphere. Tomaz Vesel suggested to share experiences in these areas.
The Chair of the Accounts Chamber of the Russian Federation Tatyana Golikova met with the President of the State Control Office of the United Arab Emirates (UAE), President of INTOSAI Harib Said Al Amimi.
During the meeting, the active development of interstate dialogue between Russia and the UAE was noted, which, in the opinion of the parties, creates a serious basis for intensifying the practical interaction of the Supreme Audit Institutions (SAIs) of the two countries.
Considering that investment cooperation is one of the most promising areas of development of economic relations between the two countries, the parties discussed the possibility of holding joint or parallel monitoring activities in the field of audit of implementation of interstate investment projects.
During the conversation, the meeting participants also confirmed readiness for the exchange of experience in areas of mutual interest, including those related to the preparation of the Accounts Chamber of the Russian Federation for the XXIII INTOSAI Congress in Moscow in 2019.
In addition, the Supreme Audit Institutions (SAI) of Russia and the UAE have agreed on further development and strengthening of interagency cooperation through international audit organizations, including within the framework of the Governing Board of INTOSAI. "I think that we need to develop and coordinate our cooperation not only at the management, but also on the working level - within the activities of the committees, subcommittees and working groups of INTOSAI," - said Tatiana Golikova.
For its part, the head of the Russian control agency invited the UAE of the United Arab Emirates to join the INTOSAI working group on public procurement auditing, which is developing a standard for auditing in this area. "I have no doubt - she said - that working together we can develop a common approach to the audit of public procurement, and your experience will make a significant contribution to the work of the group."
Based on the results of the reached agreements, the parties signed a bilateral Cooperation Agreement, which defines the bases and forms for further interagency cooperation. "I am sure that the Agreement signed today will be a key step in our bilateral cooperation, which will help to transfer the cooperation of our Institutions into action," - Tatiana Golikova said during the signing.
Within the framework of the St. Petersburg International Economic Forum, bilateral meetings of the Chair of the Accounts Chamber of the Russian Federation Tatyana Golikova with the leadership of the Supreme Audit Institutions (SAIs) of Turkey, South Africa, Slovakia and Serbia were held. During the meetings with the SAIs of Turkish and South Africa cooperation agreements were signed.
During the meeting with the Chair of the Accounts Chamber of the Republic of Turkey Mr. Seit Akhmet Bash, active development of investment cooperation between Russia and Turkey was noted, which, in the opinion of the parties, creates a serious basis for expanding the practical interaction of the Supreme Audit Institutions of the two countries.
As a first step in this direction, the parties signed a bilateral Cooperation Agreement, which defines the bases and forms for further inter-agency cooperation. In addition, in the immediate plans of the parties - the formation of a multi-year cooperation program, which will include both joint and parallel audits, as well as events to share experiences.
The main prospects for joint audit work are seen by the parties in carrying out inspections of the fulfillment of the terms of intergovernmental agreements in the energy sector - over the gas pipeline "Turkish flow". Also, the parties intend to take control of the implementation of the Medium-Term Program of Trade-Economic, Scientific-Technical and Cultural Cooperation of Russia and Turkey for 2017-2020. In addition, the possibility of carrying out control measures on the protection of the Black Sea from pollution, as well as assessing the performance of the governments of the two countries in the field of the effectiveness of immigration policy ware discussed.
"I am confident that the Agreement signed today is the first brick in the foundation of our future collaboration and reached agreements will serve to further development of mutually beneficial cooperation between the SAI of Russia and Turkey in all fields", - Tatiana Golikova noted after the meeting.
The main outcome of the meeting with the General Auditor of South Africa Kimi Makvet also was the signing of an updated version of the Cooperation Agreement, which reflects the importance of the interaction of the parties within the BRICS and directs the control agencies to practical cooperation.
"We have an opportunity to consider such areas of collaboration, such as energy, environmental protection, priority national programs in the social sphere, as well as space and military-technical cooperation", - said during the signing of the head of the Accounts Chamber of Russia.
During the meeting with the Vice-Chair of the Supreme Control Chamber of the Slovak Republic Igor Shula, the head of the Accounts Chamber of the Russian Federation noted the need for filling the bilateral relations of the Russian and Slovak SAIs with practical content. "Given the positive developments that have emerged in the trade and economic relations between Russia and Slovakia, as well as the fact that our agencies should develop vector policy, it is time to take steps towards a more practical content of our bilateral relations", - said Tatiana Golikova, addressing to her colleague.
In support of his words, the head of the the Accounts Chamber of the Russian Federation submitted to the Slovak party a project of an updated version of the Agreement on Cooperation between the Supreme Audit Institutions of Russia and Slovakia.
As it was noted during the conversation, the issues of audit of the effectiveness of budget expenditures and the implementation of national projects in the field of education, energy, road infrastructure, combating corruption and evaluating the activities of executive authorities could be the basis for joint audit work of the parties.
At a meeting with the President of the State Audit Control of the Republic of Serbia Radoslav Sretenovich the need to intensify interdepartmental interaction was noted, because, according to the mutual opinion of the parties, the potential of bilateral cooperation between the control agencies of the two countries has not yet been fully implemented.
In this regard, Tatyana Golikova suggested to her colleague to consider the possibility of signing a new version of the Cooperation Agreement, as well as to work out the issue of filling the multi-year cooperation program with practical measures.
"Promising areas for our future audit interaction could be areas such as energy, infrastructure of railways, operation of the Russian-Serbian humanitarian center and the audit of government programs in the social sphere", - said Tatiana Golikova.
The head of the Accounts Chamber of the Russian Federation also congratulated Radoslaw Sretenovich on the 10th anniversary of the State Audit Control of the Republic of Serbia, wishing the staff of the office new successes in a worthy and difficult matter of state audit.
Slide . The Title
Good afternoon, thank you for the opportunity to speak in front of such a distinguished audience. The Accounts Chamber gives a high value to the automated processes for the external state audit. To enhance efficiency, we developed and implemented information-analytical system of remote external state audit (to make this presentation sound simple I will use the term "information system").
Slide 1. Remote audit and control capabilities, the necessary legal framework and conditions for it
Remote audit allows to conduct a continuous monitoring and control of organizations - objects of audit and control activities, respectively, to deliver information about their activities and promptly respond upon the occurrence of relevant events, in contrast to frequency of information obtaining provided only on the basis of control and expert-analytical activities when visiting the objects of audit and control.
When conducting the remote audit, a part of the control actions is provided automatically in the information system in contrast to manual control during the control actions when visiting the object of control.
Most of the information, which is being operated in the activity of our inspectors, is available via the information system. It became possible thanks to the deep integration of information system with external information systems, including systems of Federal bodies of State Authorities.
In terms of integration, the Accounts Chamber is provided with full access to the data of external information systems, as well as the possibility of direct transmission of these data to the information system for further processing. Integration with external information systems is directly connected with the possibilities offered by current legislation. In this sense the Federal law "On the Accounts Chamber of the Russian Federation" provides us with a broad base, which allows obtaining information about the composition and data structures of external information systems, and implementing the connection to them with the help of specialized hardware and software systems.
However, at the present moment some of the Federal bodies of State Authorities lack information systems and technologies developed at a sufficient level, which, respectively, does not allow conducting remote audit and control of their activities. One of the ways to change the situation was the legislative amendment in the terms of granting the Accounts Chamber the authority to provide Federal Executive Authorities with the recommendations concerning the composition and procedure of forming the data of Federal state information systems.
Slide 2. The purpose and the goal of creating an information system
Information system was developed and implemented for the activities on preparation and directly conducting the state audit and control activities. The information system provides the ability to the inspection staff to search for and to obtain all the necessary information on activities of control objects, including source documents, to identify automatically the violations in their activities and to use the results of the automatically generated analysis reports.
Information system allows increasing the efficiency and validity of decision-making at the stage of formation of the inspection plans and planning of activities of the Accounts Chamber as a whole.
Slide 3. Principles and approaches required to create information system
When creating the information system we applied such a principles and approaches that were most effective in carrying out the state audit and control on the basis of remote access to external information systems.
We proceeded from the following:
1) Information system uses to the full the data directly proceeded in information systems of federal state bodies (that is, using the information system, users work with data and information in the information systems of federal state bodies);
2) Under the cooperation with federal state bodies we take measures to ensure the availability of necessary data and information required by the Accounts Chamber in information systems of federal state bodies, and made sure that they implement necessary analytics required by the Accounts Chamber;
3) The Information system of the Accounts Chamber receives data from information systems of federal state bodies (that is, the data is transferred to the Chamber of Accounts) only for the following:
- automated detection of violations;
- formation of analytics that is impossible to realize in information systems of federal state bodies (e.g.: the formation of analytics is carried out on the basis of external information systems of different state bodies).
Thus, the information system is able to provide its users with all data from the information systems of federal bodies in online mode. At the same time, the Accounts Chamber when creating an information system doesn’t to bear significant budgetary expenditures and it doesn’t take much time to implement the remote audit information system technology.
And in terms of audited entities, there are no costs to be borne by the Accounts Chamber for the remote audit.
Slide 4. Main functional capabilities of information system
The basic functional capabilities of the information system are presented on the slide. I would like to draw attention to some of its functional features.
Information system has developed a search mechanism which in addition to the standard set of tools (basic search, advanced search, search by subject headings) provides the User with the ability to use algorithms of the search of violations for automated detection of violations committed in objects of control.
So, we have developed about 80 algorithms, i.e. automated types of violations, which provide invaluable help to the inspectors when inspecting the activities of control objects. Automated detection of violations is performed without any participation of the Accounts Chamber staff. For example, the use of such algorithms in the analysis of the official site of the unified information system in the procurement area allows you within minutes to compile statistics on the systematic violations of the venues for the forthcoming inspections. At the same time, the Accounts Chamber constantly conducts activities to increase the number of types of automatically detected violations
The information system also offers Users the opportunity to use the results of the analytical reports generated by the system in automatic mode. For example, the system generates analytical reports in the field of public procurement, achievement of the targets of state programs, expenditures and revenues of the Federal budget.
The information system has the capability of comparing the data contained in the various external information systems of Federal bodies of State Authorities. This is important because the detection of discrepancies or contradictions in a potentially similar data is a sign of a breach.
Slide 5. Statistics of expansion of functional capabilities of the information system
The slide shows some figures describing the current status of the information system. In just two years of system functioning (launched in May 2015) it has managed to achieve a significant increase of indicators, which determine efficiency of information system.
So, at this point of time the information system is connected to 130 external information systems; 30 federal authority bodies provide the data required for system operation.
The work to develop the effectiveness of the information system, including the expansion of its functionality is carried out on a regular basis. Currently we are working on adding to the capabilities of the information system an option of semantic text analysis in order to search for occurring violations (it is planned that the system will have this option already at the start of 2018). Automated semantic analysis of texts in search of violations has undoubtful benefits to the activities of the Accounts Chamber, as it means a substantial optimization of business processes.
For example, the use of semantic analysis of texts of government contracts and documents for work performed will allow inspectors to automatically identify the facts of nonconformity in the composition of works that were to be performed to the actual ones.
Slide 6. Users information support
Support of information system is organized in such a way as to receive effective feedback from its Users. You can see the main points on the slide.
Due to the fact that the information system has a large amount of information obtained from external information systems; the system has 4 ways of providing information support (as shown on this slide), so the inspectors of the Accounts Chamber could use the information effectively.
Slide 7. Statistics on work results of the Accounts Chamber in 2016
The slide shows the key indicators that the Accounts Chamber has reached following the results of activity in 2016. Please pay special attention to the number of identified by us violations. So, from 4,000 violations identified by the Chamber of Accounts during inspections, 600 of them were revealed automatically using the information system and in other words were revealed through the external information system, with the help of above mentioned algorithms. The indicator shows how truly significant the contribution of the information system is to the operational activities of the Accounts Chamber.
Slide 8. Automated detection of violations
This slide provides a real example of the violation of state contract date taken from the information system and detected by the Automated Deviation Detection System during the public procurement. The system is able to provide the User with all necessary information, including electronic documents.
If we need to conduct a report based on the activities of the various Federal authorities it shall be realized through the information system by transmitting and processing information from their respective information systems.
Slide 9. Analytical reports construction
The information system, as I mentioned earlier, has a well-developed analytical component, allowing inspectors to significantly save time and rationally plan their work. I would like to draw your attention to the following aspect: The information system using analytical component generates its own interim database with all required information.
The information systems of the audited entities contain a large amount of data to which the Accounts Chamber has full access. However, sometimes for the proficient work such a comprehensive data is not required. Therefore, that interim database formed by our system can easily change configuration and adapt to current needs. This slide shows an example of a formed database with all necessary information (particularly interesting information from two sources, from the Federal Tax Service server and the Unified Budget System Portal server, which is used in the analytic report generated by the information system and saved on the server of the Accounts Chamber).
Slide 10. Process optimization for querying, receiving, and storing data
The slide shows an example of how to form analysis reports based on the data provided by the official website of the Unified Information System in the procurement area. The information system selects only data needed for the reports. The rest of the data shall be saved on the source server of the relevant public authority.
Slide 11. Storage, search and access to reports and documents
The information system also allows storage, search and display of documentation necessary for inspections. Using the system, our inspectors can find any particular document by selecting specific options in the filter for this document.
The information system provides access to tens of thousands of documents. The user sets the necessary parameters on the basis of which he is provided with the necessary documents (an example is shown on the slide). The main parameters for selecting the required documents are the following:
- the organization that formed the document;
- the organization about which information is presented in the document;
- the subject to which the document relates;
- type of document, reporting;
- level and name of the budget;
- the reporting period.
Thus, the inspector might not even know where exactly the information is saved in the external information system, but he will find and get access to it by selecting required filter options.
Slide 12. Search and access to primary data (documents)
As was mentioned earlier, through the information system the Inspectors are able to work directly with primary data from the information systems of federal state bodies. For example, users work with paysheet documents, formed during the execution of the federal budget, accounts for the supply of goods, works and services.
In other words, the information system eliminates the need for the inspectors to waste their time on sending requests for primary data from the audited entities.
Slide 13. Process optimization for querying, receiving, and storing data
Among other things, the information system addresses the challenges of optimizing the process of querying, receiving, and storing the data.
Taking into account the fact, that the Accounts Chamber now uses that information system, having full access to electronic documents posted in the information systems of federal state bodies, the process of filling out requests for information by the inspectors has become obsolete.
In doing so, it is invaluable for the Accounts Chamber to receive electronic information on the Internal Financial Audit conducted by the federal state bodies. The Internal Financial Audit report is automatically compared to the external state control indicators of the Accounts Chamber and is further analyzed and assessed in order to determine and implement subsequent remedial measures by the public authorities for improvement.
Slide 14. Algorithm of audit with the Information system
As I said before, we are looking for the ways to improve the information system on an ongoing basis. And one of the ways to modernize the system is to automatize the standards of State Auditing and Control activities adopted by the Accounts Chamber.
Since 2018, it is planned to implement the actions established by the standards of state audit and control, with the use of an information system and data processing of information systems of federal public authorities.
Slide 15. Risk-based approach to the activities with the IAS of RESA.
The information system gives the opportunity to apply a risk-oriented approach to audit activities. In other words, receiving information on certain parameters of the audited entity, the inspectors might in a more substantiated way decide on the definition of the item and the object of control.
Those parameters are the following: : (1) The number of violations by the audited entity over past periods; (2) The amount of funds allocated to the audited entity in the current period; (3) The number of violations in the area of activity during past periods; (4) The amount of funds allocated to the area of activity in the current period; (5) The number of violations detected automatically.
Slide. Thank you for your attention!
In conclusion, I would like to point out that we are focusing on the wider distribution of best audit practices, including optimal approaches to automated work processes for the external public audit body. We have formulated draft proposals for the development of international standards of remote audit and control with application of IT-technologies. The proposals were based on the analysis of our experience in development, implementation and maintenance of the Accounts Chamber Information System. The proposals were sent to the International Organization of Supreme Audit Institutions (INTOSAI), and I hope that our colleagues will find them useful.
Thank you for your attention!
Chairwoman of the Accounts Сhamber of the Russian Federation Tatyana Golikova has met with the Auditor General of the Kingdom of Norway Per-Christian Foss.
During the meeting the heads of the Supreme Audit Institutions of the two countries noted the high level of interdepartmental cooperation and reaffirmed their readiness for further development and strengthening of relations.
"For more than ten years our institutions have had a purely practical dialogue. In the years of our work together a range of control activities have been carried out in such areas as fisheries and aquatic resources of the Barents and Norwegian seas, radiation safety of the population and environmental protection from radioactive contamination" - said the head of the Accounts Chamber of Russia.
Special attention, according to the participants, deserves a five-party audit on the subject of the Arctic Council, conducted by Supreme Audit Institutions of Denmark, Norway, Russia, USA and Sweden, as well as control bodies of Russian regions.
The next step in collaboration between the two agencies, taking into consideration the urgency of the ecological safety problems for adjacent territories of the two countries, will be to hold in the future a parallel audit - "the audit of implementation by the state bodies and organizations of Russia and Norway of the agreement between the Government of the Russian Federation and the Government of the Kingdom of Norway on cooperation in the field of environmental protection dated September 3, 1992".
"Our new project will affect fields of biodiversity, cross-border cooperation and environmental pollution reduction, which are highly important for both countries. It is symbolic that the implementation of this project starts in 2017, considering this year has been proclaimed as the Year of environmental protection in Russia", - said Tatyana Golikova.
In the framework of the forthcoming audit, the parties intend to consider a range of issues, including the evaluation of the effectiveness of state bodies on: designing and maintaining special natural areas, the conservation of populations of rare species of birds and animals, including polar bears and Atlantic walruses; the implementation of measures to eliminate environmental damage and to reduce air radioactivity. This parallel audit will be conducted with the participation of the Chamber of accounts of the Arkhangelsk region.
Following the meeting, the parties signed an agreement on parallel audit, as well as the new version of the Agreement on cooperation between the Accounts Chamber of the Russian Federation and the Office of the Auditor General of the Kingdom of Norway.
"The signing of these two documents, - said Tatyana Golikova,- is an important step in our bilateral relations, showing our firm intentions to continue and further develop the level of practical cooperation, which is especially important in today's difficult economic situation. I'm sure that the upcoming collaboration will not only bring another worthy contribution to the bilateral relations between our institutions, but will also give a new impetus to the development of relations between Russia and Norway".
The meeting was attended by the Ambassador Extraordinary and Plenipotentiary of the Kingdom of Norway to the Russian Federation Leidulv Namtvedt, auditor of the Accounts Chamber of the Russian Federation Bato-Zhargal Zhambalnimbuev and the Chairman of the Chamber of accounts of the Arkhangelsk region Alexander Dementyev.
Russian tax plan could put pressure on budget and inflation: audit chief
A Russian finance ministry proposal to overhaul the tax system could create a budget shortfall and put upward pressure on inflation, Tatiana Golikova, the head of Russia's Audit Chamber, told Reuters in an interview
The ministry has proposed cutting employers' mandatory social security contributions with the aim of enticing businesses out of the shadow economy. To offset that, it proposes increasing value added tax (VAT) to 22 percent from 18 percent.
The ministry wants the combined change to take effect from 2019. But the intervention from Golikova, an influential former government minister and deputy finance minister, indicates the proposal could face resistance from some quarters in ruling circles.
Golikova, whose audit chamber is responsible for monitoring whether the government is using budget spending effectively, said the changes would force the government to increase its support for the pension fund.
The finance ministry's proposal is to cut employers' social security contributions to 22 percent of a worker's salary from their current level of 30 percent. A part of the contributions goes into the state pension fund to help keep it topped up.
The fund is already in deficit, a problem the finance ministry itself says needs to be addressed, and the drop in social security contributions will mean that less money is going into the fund, she said.
Asked if the proposed tax changes would increase the burden on the budget, Golikova said: "In this conception, in this construction, yes."
The Russian budget had to provide around 3.4 trillion rubles ($17.40 billion) to cover the Pension Fund's liabilities last year, an extra burden on a budget already straining under low tax revenues.
According to the Chamber's calculations, under the finance ministry's proposal social security payments would go down by 1.5 trillion rubles while revenues from VAT would increase by only 1.3 trillion rubles.
In the interview, Golikova said the other consequence of the proposed tax changes would be on inflation, which the central bank is seeking to get under its target of 4 percent by the end of 2017.
The finance ministry has acknowledged that the VAT increase may result in a one-off 2-percentage-point increase in inflation. Golikova said that would have far-reaching consequences for monetary policy and for ordinary people.
"This (proposal) means that a half or even more of that 4 percent (of inflation)... would be made by our own hands... This means that the central bank will have to make additional efforts to maintain the inflation level," Golikova said.
"This is a significant factor affecting social policy."
Prices rose 4.6 percent in the year to February. Upward pressure on inflation could force the central bank to keep interest rates higher for longer than it would otherwise have done, constraining an economic recovery.
Golikova said the Audit Chamber had yet to calculate how the proposal would affect economic growth. The Russian economy shrank 0.2 percent in 2016 and the economy ministry expects it to grow by 2 percent this year.
(Additional reporting and writing by Katya Golubkova; Editing by Christian Lowe and Mark Trevelyan)
By Darya Korsunskaya and Polina Nikolskaya
Published by «REUTERS», 21.03.2017
A working meeting of the Supreme Audit Institutions of Russia and Norway on joint auditing activities in the field of environmental protection as well as a roundtable for experience exchange in the areas of Social Policy and Healthcare, were held in the Accounts Chamber of the Russian Federation.
Welcoming the participants to the working meeting on behalf of Tatiana Golikova, the Chairwoman of the Accounts Chamber, the auditor of the Supreme Audit Institution of Russia, Bato-Zhargal Zhambalnimbuev, specifically noted the high level of cooperation between the supreme audit institutions of two countries. "The relations between the Supreme Audit Institutions of our countries have a long history", he stated. "In this regard, our cooperation has always been interesting, fruitful and mutually beneficial."
"Russia-Norway relations in the field of environmental protection lately have been developing very fruitfully, as evidenced by the implementation of a large number of projects in this area." "I am confident that the recommendations of the Supreme Audit Institutions of two countries based on the joint control work in this area have contributed greatly to the improvement of these relations. ," noted Bato-Zhargal Zhambalnimbuev. He also informed Norwegian colleagues that the President of the Russian Federation declared 2017 to be the Year of Ecology in Russia.
Taking into account the relevance of environmental security issues to the neighboring territories of the two countries, in 2016 the parties decided to continue interdepartmental cooperation in this area in the framework of the next joint parallel performance audits of Russia-Norway co-operation effectiveness in the field of the environmental protection.
During the working meeting, participants discussed a number of organizational issues related to the forthcoming joint work, considered a draft agreement on parallel audits, and defined its main goals and objectives.
The signing of the mentioned document and the updated version of the Cooperation Agreement between the Accounts Chamber of the Russian Federation and the Office of the Auditor General of the Kingdom of Norway, has been scheduled for April 2017 during the official visit of the Auditor General of Norway, Christian Foss, to Moscow.
At the roundtable session on Social issues a really thorough exchange of expertise occurred in two areas: Social Policy and Healthcare issues.
The role of the moderator for the Social Policy Section has been given to Olga Samarina, Director for Expert, Analytical and Control activities in the area of expenditures of the Federal Budget for Fundamental research, Physical Culture, Sport, Social Policy; of the funds of the Pension Fund of the Russian Federation; of the Social Insurance Fund of the Russian Federation. The attention of the parties has mainly centered on the implementation of the state support for families with children in Norway and Russia.
Also, a healthcare topic became the major focus of discussion. The role of the moderator for the life discussion session has been played by the Head of the Office of the Accounts Chamber, Yury Voronin. On the Russian side, the report on the structure of the healthcare system in the Russian Federation and the principles of its financing was presented by the Director for Expert, Analytical and Control activities in the area of expenditures of the Federal Budget for Healthcare, Education, Culture, Cinematography and the funds of the Federal Compulsory Medical Insurance Fund of the Accounts Chamber, Olga Krivonos.
The President of Russia, Vladimir Putin, has signed the Federal Law on amending the Federal Law “On the Accounts Chamber of the Russian Federation” and Article 28.3 of "the Code of the Russian Federation on Administrative Offenses".
The signed law clarifies and specifies certain provisions laid down by the Federal Law No. 41-FZ “On the Accounts Chamber of the Russian Federation” and the Code of Administrative Offences and is aimed to improve legislation in the area of external public audit (control). The document also will provide a unified framework for certain provisions of the Law “On the Accounts Chamber of the Russian Federation” and the provisions of the Budget Code of the Russian Federation, the latter has been updated in 2013.
Furthermore, into the list of reasons for early release of an auditor of the Accounts Chamber of the Russian Federation from his office as stated by the newly signed law was included: improper performance of official duties falling within the auditor competence; the chair of the Accounts Chamber from now on will be given the right to inform the President of the Russian Federation of such matters.
The new law gives the Accounts Chamber of the Russian Federation the authority to provide an opinion on the candidates for the post of the Chair of the local control authority and access their compliance with the requirements laid down by the Federal Law "On general principles of organization and activities of control and audit bodies of the RF subjects and municipalities."
Moreover, according to the new law, the list of objects of audit (control) of the Accounts Chamber of the Russian Federation from now one will include commercial organizations with shares (contributions) of economic associations and companies with the participation of the Russian Federation in their (share) authorized capital. The Accounts Chamber shall be empowered to carry out an external public audit (control) of the legal entities, individual entrepreneurs and natural persons such as producers of goods and services regarding their compliance with conditions of State (municipal) contracts.
During the XXII INCOSAI in Abu-Dhabi (the United Arab Emirates), the Chairwoman of the Accounts Chamber of the Russian Federation Tatiana Golikova have had a bilateral talks with the leaders and representatives of the Supreme Audit Institutions (SAI) of Hungary, Italy, Cuba, Norway, Slovakia, and the RSA.
On the bilateral meeting of the Chairwoman of Accounts Chamber of Russia and the RSA Auditor General Mr Kimi Makwetu the parties expressed mutual readiness for further development of cooperation, including parallel audits, both bilateral and with the participation of others SAIs of member-states of BRICS. One of the themes of such interaction could be the examination of energy sector. “Today, the development of energy, namely atomic and hydrocarbonic ones, seems to be the most promising direction under the given format of interaction”, underlined Tatiana Golikova, offering to take this point into consideration during the development of the framework program for collaboration of the Supreme Audit Institutions of the BRICS states with respect to the INTOSAI activity.
The Russian party also offered to examine the possibility to sign an updated Cooperation Agreement between the Supreme Audit Institutions of Russia and the RSA (2010), which is a subject to planned practical consideration.
Within the framework of the multilateral cooperation development the Chairwoman of Russian Accounts Chamber informed her South African colleagues about the intention to create a special INTOSAI group tasked with matters of informational openness of SAIs and proposed to join this project.
In his turn, the South African Auditor General noted the active collaboration of two institutions in the Working Group on Public Procurement Audit with the Working Group on KNI concerning the audit of government procurement. Also, Kimi Makwetu offered the Russian SAI to join the INTOSAI Committee on SAI potential growth, and specifically, to take part in the group activity of conducting coordinated audits.
During the meeting with the Auditor General of the Italian Accounts Chamber Mr. Claudio Galtieri, the Russian party proposed to add some practical meaning to the bilateral relations between Russian and Italian SAIs. As the first step towards this goal Tatiana Golikova offered her colleague to sign an updated version of the Italian and Russian Cooperation Agreement (2002) in consideration of their future practical interaction.
The two parties also discussed the possibility of mutual work in the framework of the EUROSAI Working Group on the Audit of Funds Allocated to Disasters and Catastrophes, and to conduct a coordinated audit of matters related to earthquake disasters. The Italian party confirmed that the next meeting of the Group will take place in Rome in March 29-31, 2017.
Moreover, the parties came to an agreement about the experience exchange in such spheres as SAI collaboration with judicial authority and fight against corruption.
During the meeting of the delegations of the SAIs if of Russia and Norway the question of forthcoming bilateral audit in the sphere of environmental protection was discussed.
In this regard Tatiana Golikova informed her Norwegian colleagues about the beginning of the priority program “Clean Country” since January, 1, 2017, and also about the fact that the next year is declared the Year of Ecology. “These themes will coincide with our planned audit”, she said.
The parties agreed that the Accounts Chamber of Russia will provide the Norwegian SAI with the results of these activities, conducted to implement this project.
Moreover, the readiness of Russia and Norway to sign an updated version of the Cooperation Agreement (2007) in April 2017 during the official visit of the Norwegian Auditor General P.K. Foss to Moscow was confirmed.
Tatiana Golikova invited the Norwegian Auditor General to participate in the International Economic Forum in Saint-Petersburg in 2017 and offered the Norwegian colleagues to join the INTOSAI Task Force on SAI Information Transparency.
The main topic of the talks between Tatiana Golikova and the Cuban Auditor General Gladys María Bejerano Portela was the question concerning the preparation of two parallel audits in the sphere of civil aviation (in 2017) and in the energy sector (in 2018).
During the meeting the Cuban party received the information about the results of the expert analytical event, conducted by the Accounts Chamber of the Russian Federation in 2016 as part of preparations for the bilateral audit of matters related to civil aviation.
As a result, the parties agreed to exchange official visits. The Cuban party also accepted Tatiana Golikova’s invitation to join the INTOSAI Task Force on SAI Information Transparency.
During the meeting with the Deputy Chairman of the Slovakian Audit Office Igor Shulay, the parties outlined the major directions of further cooperation – from experience exchange to the conduct of mutual and parallel audits.
Namely, the parties expressed readiness to share the audit information in the energy and health sectors, as well as the materials on the project planning.
It was pointed out, that the parties planned to start cooperation of two SAIs within the frame of the Working Groups on KNI and on Procurement Contract Audit.
Moreover, the Accounts Chamber invited their Slovakian colleagues to take part in the INOSAI Task Force on SAI Information Transparency and expressed readiness to provide the necessary materials.
During the meeting with the representatives of the Hungarian SAI, particular attention was paid to a discussion of the questions concerning the audit of large-scale sport projects. Hungarian supervisors were especially concerned with the methodology of conduct of such control events.
In this regard, the Hungarian party invited the Russian Accounts Chamber to take part in the Seminar, which will take place in Budapest in March 2017, to exchange experiences in the sector of audit of large-scale sport projects.
In 2019 the Accounts Chamber of the Russian Federation will host the XXIII INTOSAI Congress – the largest international forum for the audit community.
The decision to approve the Russian Supreme Audit Institution as a host for the next Congress meeting was adopted unanimously by the participants of the XXII INCOSAI, which took place from 7 to 10 December 2016 in Abu Dhabi, the United Arab Emirates.
The Chairwoman of the Accounts Chamber of the Russian Federation Tatiana Golikova in her speech thanked the participants of the forum for supporting Russia’s candidacy to be the hosting country for the XXIII INCOSAI. She noted that the accumulated experience of the Russian SAI in organizing major international events leaves no doubt about the success of the XXIII INTOSAI Congress held in Moscow. “For us it is not only a great honour, it is also a huge responsibility”, said Tatiana Golikova.
As part of the forum the Russian delegation submitted a report concerning the results of the two INTOSAI working bodies headed by the Russian SAI – Working Group on the Key National Indicators (KNI) and the Task Force on Procurement Contract Audit.
After hearing reports from the Russian party the Congress participants expressed appreciation of the results achieved.
Among the main achievements of the Task Force on Procurement Contract Audit several things were noted, the development of the Glossary and Practice Guidance on public procurement audit, and two pilot projects organized along with the supreme audit institution of Portugal, Slovenia, and Zambia. The Congress participants also supported the initiative of the Russian SAI to transform thetask force into the Working group and to continue development of the INTOSAI Public Procurement Audit Standard until the end of 2019.
The main result of the Working group activity concerning the key national indicators was the development of the KNI WhitePaper with concrete recommendations on the KNI development and usages, as well as the Guidance Document for the KNI use in SAIs activities. Currently the group plans to join INTOSAI to achieve sustainable development goals, to work out a standard for the application of the key national indicators to the SAIs activity, and to create methodological recommendations on program and project audit.
The Collegium of the Accounts Chamber of the Russian Federation chaired by Tatyana Golikova considered the findings of the expert and analytical activity entitled “Analysis of measures taken by federal executive authorities and organizations of the Russian Federation in the framework of implementation of projects to supply Russian civil aircraft, auxiliary equipment and services under the programs of modernization of the Cuban civil aviation”.
Entities to be analyzed: Ministry of Finance of the Russian Federation,Ministry of Industry and Trade of the Russian Federation,Roseksimbank JSC; Ilyushin Finance Co. JSC.
Audited period: 2014-2015 and 2016 to date.
Auditor of the Accounts Chamber Aleksandr Zhdankov made a presentation.
As it was noted at the Collegium, the cooperation between Russia and Cuba in the area of aviation industry is currently carried out through the implementation of the Program of trade, economic, scientific and technical cooperation between the Government of the Russian Federation and the Government of the Republic of Cuba for 2012-2020 signed on the basis of the results of the 10th Meeting of the Russian-Cuban Intergovernmental Commission in November 2012*.
The export of Russian aircraft and auxiliary equipment to the Republic of Cuba is ensured by the state guarantee support of the export of industrial products, which are delivered in accordance with laws and regulations of the Russian Federation currently in force.
Since 2005, the maximum amount of the state guarantee support for aircraft delivery to Cuba has exceeded $600 mln.
The total amount of long-term loans (from 10 to 14 years), secured by state guarantees of the Russian Federation and provided within the period from 2005 to 2016, amounted to 432 mln.
There were no facts of call for a guarantee in the examined period. There are no arrears on repayment of loans and payment of interest. The refund of the principal debt amount and payment of interest on loans are carried out in full, in accordance with the terms of loan agreements and on the basis of payment schedules.
As of the period of the audit, all agreements for the delivery of aircraft and equipment entered into within the period since 2014 and in 2016 to date have been fulfilled.
“Altogether, within the period from 2006 to 2016, 14 aircraft were delivered to the Republic of Cuba, including: in 2006-2013 - 3 IL-96 aircraft, 2 TU-204 passenger airplanes, 2 TU-204 air-freighters and 3 AN-158 airplanes; in 2014-2016 - 3 AN-158 airplanes (under agreements entered into in 2013) and one IL-96-300 airplane”, informed Aleksandr Zhdankov in his speech.
Besides, in the frame of cooperation in the area of helicopter machinery delivery, two Mi-17-1V helicopters were delivered to Cuba in 2016; a number of commercial proposals were also made regarding the maintenance of helicopters delivered and the delivery of repair and design documentation for their overhaul.
At the same time, the analysis showed that a number of issues of cooperation between Russia and Cuba in the area of civil aviation have not been solved yet.
In particular, a new training center in Habana, which is provided for in the Cooperation Program, has not been established yet. Taking into account difficult financial situation in Cuba, the negotiations have now been suspended. Besides, the retraining of Cuban specialists was carried out in the frame of contracts for delivery of AN-158 airplanes: the price of every plane to be delivered includes the retraining of 17 persons.
The problem of airworthiness maintenance of aircraft delivered to Cuba is still acute. The idea to establish a spare parts warehouse in Cuba, which has been discussed since 2010, has not been implemented yet.
There is another problem associated with non-compliance by the Cuban party of the timing for sending defective parts and failed units for repair (the period provided for by the Agreement is 10 days, but the actual period of sending units to repair was up to 4.5 years). Russian manufacturers, from their part, are also unable to reduce the time of repair. The manufacturing cycle duration for certain components required by the Cuban party is 120 to 270 days. Besides, it should be noted that within the audited period, the parties developed measures to timely delivery of spare parts and units, which allowed reducing the periods of sending failed parts for repair from several years to 1-3 months.
Moreover, the parties have not still agreed upon the Plan of the Program Implementation. The auditor noted that “The timing of specific projects and responsible persons have not been determined, which hinders significantly the Program implementation monitoring”.
Supreme audit institutions of Russia, Armenia, Belarus, Kazakhstan and Kirgizia held a joint Collegium meeting in the format of a videoconference.
At the meeting, which was held, for the first time, in a pentalateral format, the participants reviewed the findings of the audit of observance by authorized bodies of the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic and the Russian Federation of the Protocol on the Procedure for crediting and distributing import customs duty proceeds (other equivalent duties, taxes and levies) and their transfer to the budget revenue of the Eurasian Economic Union Member States, in 2015.
In her welcoming speech at the opening of the pentalateral Collegium meeting, the Head of the Russian control body noted that nowadays the cooperation in the frame of the Eurasian Economic Union is one of the main priorities and instruments of the member states’ economic policy. “The Union is developing steadily. Certain success has been achieved in the development of the contractual and legal framework. The signing of a new EEU Customs Code is expected soon, which will allow moving towards a unified customs regulation and raise the administration mechanisms to a totally new level,” Tatyana Golikova emphasized.
At the same time, the Chairwoman of the Accounts Chamber of the Russian Federation regretted that the Eurasian Economic Commission has not approved so far an Agreement on conducting joint control activities by audit institutions to verify the observance of the procedure for crediting and distributing import customs duty proceeds. “Due to this fact, while conducting the first pentalateral audit this year, we were forced to rely upon the tried and tested practice of such audits within the frame of the Customs Union. Undoubtedly, this solution could not be called an ideal one in view of the enhancement of integration development,” Tatyana Golikova noted.
Representatives of audit institutions of the five countries made presentations at the Collegium, with Auditor of the Accounts Chamber of the Russian Federation Sergey Shtogrin speaking on behalf of the Russian party.
The parties were unanimous in the assessment of the audit findings, stating that in 2015, the authorized bodies of the EEU Member States generally ensured the observance of the procedure for the distribution of import customs duties. Import customs duties were distributed in accordance with the rates* established for each Party.
The total amount of import customs duties credited in 2015 to the Parties’ budgets amounted to $10.6 billion.
“In comparison with 2014, the revenues of customs duties tend to decrease by $8.8 billion or 45.4%”, Auditor of the Russian audit institution Sergey Shtogrin noted in his speech.
The sum of 556.5 billion Russian rubles in the national currency was credited to the budget of the Russian Federation, 35.6 billion drams - to the budget of the Republic of Armenia, 8.6 trillion Belorussian rubles - to the budget of the Republic of Belarus, 188.5 billion tenges - to the budget of the Republic of Kazakhstan, 3.1 billion soms - to the budget of the Kyrgyz Republic.
At the same time, certain concern and weaknesses have been identified in the framework of the joint audit, including those associated with crediting of the sums of customs duties to undistributable accounts. “While the amount of revenues of such duties is to decrease from year to year, in 2015 there was a sharp increase therein. For instance, in the Republic of Kazakhstan, the sum of such revenues increased 7.7 times and amounted to 4.3 billion tenges”, Sergey Shtogrin noted.
Besides, as in the previous year, a significant portion of retained revenues in the Republic of Kazakhstan (664.7 mln tenges) is associated with the customs clearance of goods by companies whose activities are related to subsoil use and is covered by Article 372 of the Customs Code of the Customs Union**. However, according to the information received from the Eurasian Commission based on the study of this issue, the customs legislation only governs the issues associated with the payment (collection) of customs duties in respect of the goods transported across the customs border of the Eurasian Economic Union. At the same time, it does not apply to issues related to their subsequent crediting and distribution. The procedure for the crediting and distribution thereof is determined by the relevant Agreement dated May 20, 2010***, and from January 01, 2015 onwards - by the Protocol, which govern the issues in interbudgetary relations of the EEU Member States and involve the treasury aspects of interaction. To that end, starting from September 01, 2010, customs duties, including those paid by organizations acting under Article 372 of the Customs Code, shall be subject to distribution among the budgets of the EEU Member States.
Import customs duties to the amount of 22.1 mln soms have been unjustifiably credited to the undistributable account in the Kyrgyz Republic (76.8% of the total amount of revenues selected for the audit). The violation has been corrected, the specified funds were distributed in 2016.
The reports on the state budget execution for 2015 in the Republic of Armenia and Kyrgyz Republic were drawn up without regard to the rules of the Protocol in terms of completeness of recognition of the amounts of import customs duties: the sums of duties in the amount of 2.8 mln drams and 1.1 mln soms, accordingly, credited on the last business day of the calendar year were not recognized in the said reporting.
As of the time of the joint control activity, the technological documents regulating the communication in the frame of implementation of the foreign and mutual trade by means of the integrated information system, had not been approved by decision of the EEU Collegium.
Until now, there is no regulation of the mechanism to credit and distribute social protection and anti-dumping duties, where the obligation to pay them arose prior to the entry into force of the EEU Agreement, taking into account the joining of Armenia and Kyrgyzstan to the process of distribution of these duties.
According to the representative of the Eurasian Economic Commission, who was present at the joint Collegium meeting, the Eurasian Economic Commission is currently actively working on the elimination of shortcomings identified and settlement of problems. In particular, he said that the technological documents governing the communication had already been approved by the Collegium of the Eurasian Economic Commission. In the framework of improvement of the EEU Agreement provisions, the Commission has also initiated the solution of the issue regarding the procedure for crediting and distribution of social protection and anti-dumping duties, where the obligation to pay them arose prior to the entry of the Agreement into force. The unified position on this issue was approved based on the discussions. The work is currently being carried out to elaborate and approve relevant changes to the Protocol.
As for the Agreement on conducting by supreme audit institutions of the EEU Member States of joint control activities by audit institutions to verify the observance of the procedure for crediting and distributing import customs duty proceeds, the representative of the Commission informed that the draft had been sent to the Parties for approval on the national level. Besides, he expressed his hope that this important document would be signed in the nearest future.
Based on the results of the meeting, the participants of the joint Collegium adopted the decision to send the audit report to the governments of the Russian Federation, the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan and the Kyrgyz Republic. The Accounts Chamber of the Russian Federation will also send the audit report to the Chambers of the Federal Assembly of the Russian Federation and the Eurasian Economic Commission.
In conclusion, the parties once again emphasized the importance of the early signing of the Agreement, which would govern the work of supreme audit institutions in the frame of joint audits. In the opinion of the participants of the meeting, this would allow not only avoiding those difficulties which they had encountered in the course of the audit, but also improving the efficiency and the level of inter-agency cooperation.
Tatyana Golikova also invited her colleagues to sign the updated versions of bilateral Cooperation Agreements, which would comply with modern international realities, including the regulatory and legal framework of the EEU pertaining to SAIs’ interaction.
The official pages of the Accounts Chamber of the Russian Federation are already available in social media, such as Facebook, VKontakte, Twitter, and YouTube. Now, the pages in Odnoklassniki and Instagram social media have been added to the list of accounts of the country’s supreme audit institution.
The full-scale presence of the Accounts Chamber in the blogosphere will enable interested users not only to obtain information on the institution’s online activity from a convenient platform, but also to make a question and get an answer thereto or express their opinion and be heard.
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