No. 9 (56) / 2002

Vladislav Ignatov
(p. 3)

The report on the results of the control over the federal property using, financial and economic activities of the federal state unitary enterprise “The State Scientific Research Institute of the Civil Aviation” hereinafter referred to as the FGUP “GosNIIGA”.

The audit has established:

• the FGUP “GosNIIGA” founding papers do not meet the requirements of the Russian Federation Government Resolution, Russian Federation Civil Code, and Direction of the Russian Federation Ministry of State Property (before 2000 - the Ministry of Property Relations);
• the FGUP “GosNIIGA” subsidiary enterprises, having the form of state enterprises, have been set up according to the Russian Federation Civil Code and are acting on the basis of the rules approved by the FGUP “GosNIIGA” General Director. The expediency of setting up the subsidiary enterprises is dictated by the need to self-finance in the conditions of extremely curbed budgetary financing;
• for the last few years, the FGUP “GosNIIGA” scientific and production potential, its capability and work results have been improving due to commercial self-financing;
• the Russian Federation Ministry of Property Relations permitted to assign the state property simultaneously to the State Scientific Research Institute of the Civil Aviation and its subsidiary enterprises;
• the Russian Federation Ministry of Property Relations did not exercise proper control over the observing of regulatory requirements relating to the auction sales of aircraft and mandatory allocations to the federal budget which according to the set up regulation is 20 % of the receipts;
• the conclusion of sale contracts and receiving of payments for a great deal of aircraft had been carried out by the State Scientific Research Institute of the Civil Aviation and the federal state unitary enterprise “The Flight Center” well before the consent for sale was received from the proprietors, that is the Russian Federation Ministry of Property Relations and the Federal Aviation Service of the Russian Federation.

Aleksander Piskunov, Yuri Voronin
(p. 30)

• the existing system of medical support in the Russian Federation Armed Forces does not solve all the problems on health care and medical assistance;
• the existing financing system in the sphere of medical assistance on behalf of the military medicine institutions which is provided according to the program of medical insurance tends to numerous violations in utilizing of state assets;
• the check-up has revealed the facts of supply to the military medicine institutions and storing at medical warehouses of medical products of poor quality for the sum amounting to Rbl 13.8 mln;
• the check-up has revealed the total sum of violations in utilizing of state assets amounted to Rbl 393.4 mln.

Sergei Ryabukhin
(p. 54)

The report on the results of the control over disbursement of the federal budget means allocated to the Krasnodar Territory in 2001 and in January - February of 2002 under the section “Financial Assistance to the Budgets of Other Levels” as well as to fulfill the Resolution of the Russian Federation Government of 13 June 1996 ¹ 702 “On the Federal Target Program on the Complex Social and Economic Development of the Krasnodar Territory in 2000”.

The subsidy of the Federal Fund of Financial Support of the Constituent Members of the Russian Federation to level the budgetary financial security was remitted to the territorial budget in 2001 according to the Federal Law “On the Federal Budget for 2001”. The subsidy amounted to Rbl 2,064,146.0 thousand. In January - February of 2001, 25.6 % of the sum of the subsidy was remitted to the territorial budget. This remitted sum was used properly.

With the 99.5 % execution of the territorial budget expenditures and, as of 1 January 2001, the existing loans amounting to Rbl 109,221.1 thousand including overdue credits amounting to Rbl 26,334.4 thousand, there were facts in 2001 of granting from the territorial budget of the credits on 53 contracts amounting to Rbl 225,000.0 thousand. As of 1 February 2002, the credit balance amounted to Rbl 260,307.9 thousand including overdue credits amounted to Rbl 51,179.8 thousand, that is 19.7 % of the total debt amount.

In 2001, the amount of Rbl 205,000.0 thousand of interest-free budgetary loans was assigned to the territory’s budget. The above amount was assigned to render seasonal financial support to the agricultural commodity producers, that is to acquire fuels and lubricants and chemical weed and pest killers. As of 1 January 2002, the balance of budgetary loans received from the Federal Budget in 2001 amounted to Rbl 96,600.0 thousand. The budgetary loan balance has been prolonged till 30 September 2002.

The high indebtedness of the agricultural commodity producers before the state unitary enterprise “The Kuban Supply Fund” does not allow the regional fund to settle accounts with the territorial budget on time which impedes the territory’s budget in its turn to finance other expenditures of social value.

As of 1 January 2002, the indebtedness on monthly child benefits amounted to Rbl 485,766.0 thousand.

From 1996 to 2001 the Program’s measures in the Krasnodar Territory have been fulfilled only on 18.9 %.

Sergei Ryabukhin
(p. 79)

The report on the results of the control over the fullness and timely payment of salaries to the employees of the budgetary sphere organizations, disbursement of the Federal Budget means allocated to the Republic of North Osetia - Alania in 2001 and the elapsed period of 2002 under the section “Financial Assistance to the Budgets of Other Levels” as well as to fulfill the Resolution of the Russian Federation Government of 12 March 1996 ¹ 269 “On Approval of the Federal Target Program “Social and Economic Development of the Republic of North Osetia - Alania up to 2000”.

The audit has established:

• as of 20 April 2002, the Parliament of the Republic has not adopted the Law on the Budget for 2002;
• the Republican Government did not ensure the timely payment of the primary debt and the coupon revenue received from bonds issued for the 1996 goods credit, granted to the producers of the agricultural goods of the Republic;
• the control over raising of the rate of payment of the first class of the Joint Wage Scale of the Employees of the Budgetary Sphere Organizations, Republican Ministries and Other Agencies as well as of the Municipal Formations of the Republic has not been established;
• as a whole, the Federal target program “Social and Economic Development of the Republic of North Osetia - Alania up to 2000” has not been fulfilled;
• the lack of sufficient financial backing caused the delay in construction of the Zaramag Hydroelectric Power Plant.

Sergei Ryabukhin, Vladimir Panskov
(p. 100)

Report on the audit of the work assignment arrangement applied by tax, treasury and financial authorities and credit organizations of the Republic of Chuvashia to form and execute Federal Budget revenues and to disburse Federal Budget funds allocated under the section Financial assistance to budgets of other levels in the period of 2001 and first quarter of 2002 as well as the execution of the Federal Law “On the Federal Budget of 2001” by RF Financial Ministry’s Controlling Department in charge of the said Republic as to the expenditures under the term of the functional classification of the budget expenditures of the Russian Federation.

The audit has established:

• in 2001, the level of the tax collections inflow (tax revenues related to taxation as per declarations) amounted to 112,4 %;
• the revenues received as surplus through an increased tax collecting level amounted to Rbl 344,7 mln in first quarter of 2002;
• 50 organizations out of 222 restructured in 1999-2000 lost their right for a review of their arrears in 2000 due to violations of restructuring procedures and as many as 76 faced the same in 2001;
• credits allocated to enterprises of various forms of possession from the Republican budget in 1999-2001 are being not redeemed timely and interest is not being paid;
• RF Finance Ministry’s Controlling Department in charge of the Republic allowed a debit to build up to the amount of Rbl 159,8 thousands as of January 1, 2002.

Vladimir Panskov
(p. 142)

The report on the results of the thematic control over the accuracy of disbursement of the Federal Budget means allocated to finance the activities of the regional agencies of the Russian Federation Ministry for Taxes in the Volgograd Region in 2001 and the first quarter of 2002.

The financing of the expenditures for the regional taxation agencies in the Volgograd Region is carried out with considerable violations of the Russian Federation Budgetary Code. In 2001-2002, the estimations of the Federal Budget records, budgetary obligation limits and their changes have been brought up to the inspections of the Russian Federation Ministry of Taxes in the Volgograd Region with the violations of the set up terms and, in many cases, when the terms had expired.

The Directorate has violated the prevailing legislation and improperly disbursed the state means amounted to Rbl 13,402.6 thousand including the federal budget means amounted to Rbl 11,826.5 thousand and extra-budgetary means amounted to Rbl 1,576.1 thousand.

The Directorate has not established proper control over the timely and complete undertaking of measures relevant to the reorganization of the regional agencies of the Russian Federation Ministry for Taxes in the Volgograd Region. The Directorate and inspections have undertaken these measures with considerable violations of the order set up.

Vladimir Panskov
(p. 157)

The report on the results of the thematic control over the fullness of revenues to the Federal Budget of customs financial returns and observance of the order of appliance of the interim import (export) to the customs territory. The check-up took place at the Russian Federation State Customs Committee and different customs agencies in 2001.

The results of the above check-up have shown that placing goods under the customs regime of the interim import with complete or partial exemption from customs payments was not restricted by any advisable deadline with the obligations of the participants of the foreign economic activities being of formal character:

• the Russian Federation Government Resolution ¹ 599 “On the List of Goods Exported on the Interim Basis with Their Complete Conditional Exemption from Customs Payments and Taxation” which defines that a product could be exported for not more than 1 year’s term was adopted only on 16 August 2000;
• the Russian Federation State Customs Committee have not yet worked out the general standardizing and legal document that would set up the order of goods customs clearance and customs control;
• the applied system of statistical accounting does not make for receiving of information on payments which are due for placing goods under the regime of the interim import with partial exemption from customs payments as well as on payments which are in fact due to the Federal Budget during the financial year. This does not allow to exercise control over the fullness of charges collected by custom agencies while applying the interim export customs regime;
• the interim export regime applied to the materials being consumed during economic activities;
• at present, the simplified order of import by natural persons that are non-residents of the Russian Federation is applied in cars customs clearance. This does not ensure these cars’ taking out and leads to their illegal remaining on the Russian Federation customs territory;
• the revealed violations have led to the federal budget losses amounting to Rbl 148.6 mln and USD 46.0 mln In 2001, as a result of illicit application of exemptions from customs payments, inaction of customs agencies in charging periodical customs payments and accrued penalties the federal budget lost Rbl 1,198.7 mln.

Ivan Dakhov
(p. 176)

The report on the results of the control over disbursement of the Federal Budget means allocated to bolster the flax growing in 2000-2001.

The audit has established:

• the analysis of the fulfillment of the Federal Target Program “The Development of the Russian Flax Complex for 1996-2000” showed that the main goals of the Program had not been achieved;
• the Ministry of Agriculture of the Russian Federation disproportionately, as far as the real needs of the regions of the Russian Federation are concerned, distributed the Federal Budget means allocated to bolster the production of flax and hemp;
• the financing of measures on state sort control, strain changing, and strain renewal of flax and hemp was untimely.

Mikhail Surkov
(p. 188)

The report on the results of the control over disbursement of the Federal Budget means allocated to the internal affairs agencies in the Main Directorate of the Russian Federation Internal Affairs Ministry for the Central Federal Area (the City of Moscow), Tambov Internal Affairs Directorate (the City of Tambov), Voronezh Internal Affairs Main Directorate (the City of Voronezh), Tula Internal Affairs Directorate (the City of Tula), Ryazan Internal Affairs Directorate (the City of Ryazan), Vladimir Internal Affairs Directorate (the City of Vladimir), and Tver Internal Affairs Directorate (the City of Tver).

The audit has established:

• the requirements of the federal laws, resolutions of the Russian Federation Government, Minister of the Internal Affairs of the Russian Federation concerning the target and effective expenditure of the allocated Federal Budget means have been executed only partly. This is the main reason of the unveiled violations and drawbacks;
• the total sum of financial violations revealed during the check-ups of the internal affairs agencies amounted to Rbl 33,316 thousand.

Gennady Batanov
(p. 197)

The report on the results of the thematic control over the fullness of collection and timely remittance to the state extra budgetary funds in 2001 of the joint social tax (fee). The check-up took place at the Russian Federation Ministry for Taxes as well as in regional taxation agencies and in the agencies of the Federal Treasury of the Russian Federation Finance Ministry in the Republic of Karelia and the Orel Region.

The audit has established:

• the federal state extra budgetary funds plan figures for 2001 as far as the joint social tax is concerned were exceeded a great deal;
• the joint social tax arrears tend to increase. Totally, the joint social tax arrears, penalties and tax sanctions, as of 1 January 2001, amounted to Rbl 54,900,217 thousand. This sum totals 9.7 % of overall joint social tax proceeds in 2001;
• the restructuring of debts on insurance fees to the state extra budgetary funds as well as penalties and financial sanctions which is underway in 2000-2001 is bearing a number of drawbacks.

Mikhail Beskhmelnitsyn
(p. 219)

Analytical Note on the Situation in the Russian Ferrous Metallurgy.

The author analyzes the situation in the Russian ferrous metallurgy, development of its resource base, main technical and economic characteristics of its work, technical reconstruction and development of black metallurgy enterprises. The Auditor of the Accounts Chamber also touches upon the questions of price policy, the volume of the metallurgical production export as well as the antidumping investigations in the USA concerning the Russian steel.