No. 8 (55) / 2002

Mikhail Beskhmelnitsyn
(p. 3)

Report on the audit of the situation in and the development of the Metallurgical complex (Ferrous metallurgy) in 1998-2000 and its impact on the forming of the Federal Budget of the Russian Federation.

Audited entities: OAO "Severstal" (the city of Cherepovets), OAO "Metchel" (the city of Chelyabinsk), OAO "Stoylenski GOK" (the city of Stary Oskol), OAO "Kostomukshski GOK" (the city of Kostomuksha).

The audit has established:

• the peak reduction in Russia's metallurgical production in the period of 1991-2000 points to 1998;

• some positive trends came off stage during the last two years;

• an output increase of all types of production in the branch was reached in 1999-2000;

• insignificant investments into Ferrous metallurgy account for restrained reconstruction of the branch;

• a strategic direction for the development of the Ferrous metallurgy complex is deemed to be an increased competitiveness of its products.

Vladislav Ignatov
(p.39)

Report on the audit of the lawfullness of possession and effectiveness of use of the state property of "Klyazma Resort".

The audit has established:

• the effects of "Klyazma Resort" turned over to the Rent Union "Metrovagonmash" in 1992 are federal property;

• the privatization of the said effects has not been proved;

• ZAO "Metrovagonmash" is in lawful possession and use of the state effects of "Klyazma Resort" whereupon it entered into possession of the said effects on the basis of the Decree of the President of the Russian Federation of February 16, 1992, № 147;

• the use of the effects of "Klyazma Resort" during the period they were in possession of ZAO "Metrovagonmash" was in accordance with their designation and aims;

• an indefinite legal status of the state effects of "Klyazma Resort" in 1992-2001 originates from poor executive discipline and inadequacy shown by RF State Effects Ministry's executives while considering the managing of "Klyazma Resort".

The RF State Effects Ministry has been suggested to take measures to correct the drawbacks established by the audit.

Mikhail Surkov
(p. 62)

Report on the audit of the disbursement of Federal Budget funds allocated in 2001 to maintain the State Fire Fighting Service of the Ministry of Interior of the Russian Federation.

The audit has established:

• relevant measures were taken to finance the activity of the Service;

• federally financed units of the Service possessed transportation with the milage and in-use duration surpassing the delivery terms by 1,5 - 2 times. This caused delays in fire units arrivals as well as in fighting fires;

• unefficient disbursement of federal funds in the amount of Rbl 3015,3 thousands allocated to the Training center of the State Fire Fighting Service Department of the Main Interior Affairs Department of Moscow region. The center proved to function as an educative institution without state license;

• a payment of Rbl 30356,8 thousands as fringe benefits to Ministry of Interior of the Russian Federation officers without relevant changes in the Ministry's Order of March, 31, 1995, № 130.

Mikhail Surkov
(p. 77)

Report on the audit of the disbursement of federal budget funds allocated to the Special Construction Organization of Russia (Spetsstroy) and the use of Federal property in the Head Office of Spetsstroy and its territorial departments №№ 5,6,8

The audit has established:

• the Spetsstroy units carried out the construction work in the amount of Rbl 7212,6 mln in 2001, that is 2 times as much as in 2000;

• Russia's Spetsstroy arrears before budgets of all levels and state extrabudget funds as of January 1, 2002 amounted to Rbl 819,2 mln, with Rbl 328,4 mln being a debt to the Federal Budget;

• in 2001, the construction complex enterprises surpassed overhead expenses by Rbl 22,7 mln which caused a decreased profit;

• in 2000-2001, the Federal Budget did not receive a full-size rent payment inflow with Rbl 24,9 mln outstanding caused by the failure to sign complementary agreements to treaties agreed upon earlier;

• as of January 1, 2002, debit arrears of enterprises amounted to Rbl 2411 mln with the increment being 1,3 times as much as the level of 2000. The credit arrears amounted to Rbl 3419 mln (an increase of 1,2 times as to the level of 2000).

Ivan Dakhov
(p. 89)

Report on the audit of efficiency and purposefulness of the disbursement of Federal funds allocated to Russia's Federal Service of Land-serveying and Cartography (Roskartographia) and its subordinate plant (the city of Omsk) in 2000-2001.

The audit has established:

• the statute of the Omsk map-printing plant contradicts the main provisions of the RF Civil Code;

• in 2000, State Land-serveying Supervision Service inspections diverted funds originating from their business activity to effect wage increments over the federally envisaged rate;

• they also transferred funds in the amount of 5% of the revenue originating from the said activity to the Roskartographia development fund;

• a number of research and development agreements signed by Roskartographia in 2001 envisaging drawing of Federal funds were executed on a non-competitive basis;

• Federal Budget funds allocated to Roskartographia for production purposes and delivery of topography, land-serveying and cartography equipment for federal use on a state contract basis were diverted for maintenance of enterprises (upgrading and building of production structures, reconstruction of a heating station and so on) and social sphere (transfer of dwelling units to the municipality, maintenance of hostels and of a recreation center) and for production of a specialized magazine, a newspaper and reference literature.

Sergei Ryabukhin
(p. 112)

Follow-up report on the audit of the full-size and timely terms of wage payments to employees in the budget sphere of the Russian Federation since December 1, 2001 pursuant to the Federal Law of 25.10. 2001 № 139-FZ "On tariff wage of the first degree of Consolidated tariff scheme for labour payments to employees of the budget sphere organizations".

Audited entities: Finance Ministry of the Russian Federation, Labour and Social development Ministry of the Russian Federation, the Government of the Republic of Adygeya, the Government of the Republic of North Osetia-Alania, the Government of the Republic of Saha (Yakutia), the Administration of Vladimir, Tver, Bryansk, Ryazan, Kemerovo and Voronezh regions, the Administration of Krasnoyarsk region.

The audit has established:

• measures taken by the Government of the Russian Federation and administrations of RF Constituent Regions to increase the wages in the budget sphere are insufficient;

• the Labour ministry, from the outset, proceeded not from the real needs of the regions to aquire financial reserves for a wage increase, but from the surplus funds provided for in the Federal Budget. The amount of Rbl 13072 mln provided for added reserves to increase the tariff wages is not sufficient for Constituent Region's budgets;

• with the Second Part of the Tax Code in operation, the income holes have not been fully reimbursed by the Finance Ministry while forming the 2002 Federal Budget. This causes deficient funds for wage and other on-going payments in the amount of Rbl 24-27 bln.

Vladimir Panskov
(p. 133)

Report on a thematical audit of the work assignment procedure of Russia's Tax and Collections Ministry to guide the budget provisions for mobilizing tax proceeds to 2002 Federal Budget till territorial tax authorities.

The audit has established:

• the projected tax revenues as contained in the Federal Law "On the Federal Budget for the year 2001" were not sufficiently expedient causing the Government of the Russian Federation to initiate correctives to increase the quarterly assignments for Russia's Tax and Collections Ministry which in turn were addressed to Ministry's Directorates in RF Constituent Regions;

• a reason for this negative situation is that there is no basic federal level documentary guidance setting terms for on-going projection of budget provisions under sections of taxes and collections with regard to specifics of economy functioning in RF Constituent Regions;

• the assignment for the Ministry to mobilize taxes and collections to the Federal Budget in the first quarter of 2002 fixed by the Government of the Russian Federation December 27, 2001, in the amount of Rbl 240,7 bln (less consolidated social tax) was fulfilled in the amount of Rbl 232 bln, that is 96,4% only.

The Collegium decided to forward an Information letter to the Government of the Russian Federation containing Accounts Chamber's conclusions on an arrangement scheme to collect taxes in the regions on a full-scale base.

Vladimir Panskov, Sergei Ryabukhin
(p. 144)

Report on the audit of the expediency of rendering tax privileges in the territory of the city of Baykonur (Republic of Khazahstan) and the use of Federal Budget dotations in 2000-2001 to maintain the infrastructure of the City of Baykonur for financing the expenditures not covered by own financial funds, for subventions and local budget.

The audited entities: the Administration of the city of Baykonur, the Inspection of the Tax and Collections Ministry of the Russian Federation for the city and cosmodrome "Baykonur".

The audit has established:

• tax privileges and investment agreements with organizations registered in the city of Baykonur which were signed by the Head of Administration contradict the Law of the Russian Federation;

• with the tax privileges zone being in presence, drawbacks in the Law in operation, the failure of the Ministry of Finance and the Tax and Collections Ministry of the Russian Federation to exercise their control functions made it possible for unfair tax payers to elaborate schemes to evade taxes;

• Rbl 19,4 bln retained unlawfully by tax paying enterprises have not been transfered to the Federal Budget;

• Federal Budget's financial assistance for the city in 2000 amounted to Rbl 590897 thousands;

• the budget revenues of the city in 2001 amounted to Rbl 4129689 thousands. The 17,8 times increase as per initial budget provisions is accounted for by tax payments and non-tax revenues stemming from the city's enterprises enjoying tax privileges;

• the existence and functioning of an extrabudget reserve of the City administration do not reconcile with the articles 10, 14 and 32 of the Budget Code of the Russian Federation.

Nikolai Loktionov
(p. 185)

Report on the audit of the lawfulness of the drawing, the efficiency and the purposeful use of foreign borrowings drawn under the guarantee by the Government of the Russian Federation, in particular of the IBRD credit, to finance an Enterprises back-up project in Russia's Ministry of Finance, a non-commercial Foundation for restructuring production units and developing financial institutions, AO "STB-KART", ZAO "INKAHRAN", NKO "Consolidated settlement system" and OAO "Food plant Vologodski", the city of Kadnikov, Vologodsk region.

The audit has established:

• the IBRD loan "Enterprises back-up project" to be reimbursed by the Federal Budget amounted initially to $200 mln;

• with respect to a suggestion forwarded by the Accounts Chamber in 2001 the said loan project as part of the State foreign borrowings program for 2002 was reduced by $50 mln;

• as of February 2, 51 enterprises were being financed in the amount of $55,7 mln while the aggregated foreseen expenditures amounted to $88,8 mln;

• reimbursement to IBRD and EBRD paid by Russia's Ministry of Finance amounted to $67,54 mln.