No. 3 (63) / 2003

Vladislav Ignatov
(p. 3)

On results of auditing the performance of Russian Federal Financial Rehabilitation and Bankruptcy Service and its regional offices in 1998-2002 relating to financial rehabilitation and prevention of bankruptcy among large state enterprises and joint-stock companies that are significant from the economic and social viewpoint and have strategic importance for national security.

The audit has been conducted using the value-for-money auditing principles. The report considers how efficiently public funds and federal property have been used by the Russian Federal Financial Rehabilitation service in discharging the functions prescribed by the Regulations of the Federal Financial Rehabilitation and Bankruptcy Service approved by the RF Government Resolution № 202 of 17 February 1998, with amendments and supplements of 4 April 2000 № 301.

The audit concentrated on the organizational structure, staffing and informational flows, and also provided assessment of how efficiently the Service executed its procedural rights in conducting bankruptcy procedures in courts.

Vladimir Panskov
(p. 19)

Results of the thematic audit conducted in the RF regional executive and tax authorities, in enterprises and organizations producing and selling alcoholic goods in relation to development of the tax basis for collection of excises on alcoholic products due to introduction of the excise warehouse procedure.

The report considers establishment of revenues in RF regional budgets with the help of excises for alcoholic products; the effect of the changed excise rates on the amount of excises received by the budget as well as on the procedures for levying excises given the introduction of excise warehouse customs procedure, on the amount of the tax basis, volume of excise receipts and relations among different level of governments. The report also assesses the effect of introducing excise warehouses on the turnover of illegal alcoholic products.

Sergei Ryabukhin, Vladimir Panskov, Sergei Shokhin,
Nikolay Loktionov, Gennady Batanov
(p. 35)

Results of the complex audit of the regional budget execution in the Magadan Region - recipient of financial aid from the federal budget for 2000-2001 and first six months of 2002.

The report discusses execution of the federal budget by the Administration of the Magadan Region, execution of the Magadan Region budget receiving financial aid from the federal budget as well as budgets of state extrabudgetary funds and separate budgetary funds. It also defines whether regulations in the field of taxation, budget formulation and execution approved by executive and legislative authorities of the Magadan Region comply with federal legislation.

The report contains examples of violations in formulation of revenue items in the budget of the Magadan Region and in execution of expenditures of the Magadan Region budget in 2000-2001 and in the first six months of 2002, execution of the budget of the extrabudgetary fund for social and economic development of the Magadan Region given specific conditions of the Special Economic Zone in 2001 and first six months of 2002.

Gennady Batanov
(p. 88)

On results of auditing timeliness and completeness of funding as well as efficiency and targeted use of federal budget funds allocated to the Federal state unitary enterprise "State Television and Radio Broadcasting Company "Culture" for the whole period of performance.

The subject of the audit:

• indicators characterizing compliance with federal laws on federal budget for the relevant year;

• legal acts and other instructive documents that substantiate operations with federal budget funds, payment and other source documents, revenue and expenditure estimates, accounting and financial reports that substantiate operations with federal budget funds.

Since the time the "Culture" channel was established (1999) and up to this moment the founders' rights and responsibilities, operational and financial relations as well as those of ownership among the founders and the editor-in-chief have not been determined. As a result the main editorial office of the "Culture" channel that was set up within the State Television and Radio Broadcasting Company for the purposes of preparing and broadcasting TV programs of the "Culture" channel did not virtually discharge the relevant functions. The top management of the company was not using federal budget funds economically. The cost of work for the preparation of outsource programs was determined arbitrarily. The accounts receivables amounted to RUR 187.8 million on January 1, 2002.

Ivan Dakhov
(p. 98)

Results of auditing targeted and rational use of federal budget funds allocated to Rosrybkolkhozsoyuz in 2002-2001 and in the passed period of 2002.

The report analyses the use of funds allocated to Rosrybkolkhozsoyuz from the federal budget. It contains examples of non-targeted and inefficient use of the funds by collective fisheries and related organizations.

Mikhail Surkov
(p. 112)

On results of auditing the targeted use of federal budgetary funds allocated for logistic and military support of the Russian Interior Ministry. The report analyses financial and technical performance of the Main Logistics Department of the Rear Service of the RF Interior Ministry, Central Joint Military Base of the RF Interior Ministry, State Unitary Enterprise "Saint-Petersburg Experimental Industrial Complex of the RF Interior Ministry" for 2001 and first six months of 2002. It contains examples of non-targeted and inefficient use of federal budget funds allocated for logistic and military support of the RF Interior Ministry.

Mikhail Surkov
(p. 131)

On results of auditing efficiency and targeted use of federal budget funds allocated in 2001 for implementation of federal target programs "Protection of RF Population against Chernobyl Accident Effects", "Children of Chernobyl", "Provision of Housing to Participants of Chernobyl Cleanup Operations" and social payments prescribed by the Federal Law "On Social Protection of Citizens Exposed to Radiation Effects due to Chernobyl Accident" in the Bryansk and Tula Regional administrations.

The audit on the disbursement of federal budget funds allocated for implementation of federal target programs detected financial violations for the amount of RUR 197.2 thousand; programs were funded irregularly; proposals made by submissions of the RF Chamber of Accounts to Governors of the Bryansk and Tula Regions by the results of previous audits were not fulfilled in the full amount; social support of citizens who suffered from the accident that was to be provided in accordance with the RF Law "On Social Protection of Citizens Exposed to Radiation Effects due to Chernobyl Accident" proved unsatisfactory because of insufficient funding.

Mikhail Beskhmelnitsyn
(p. 148)

On the audit of targeted use of federal budget funds allocated to the RF Ministry of Transportation in 1999-2001 for Federal Target Program "Revival of the Russian Merchant Fleet" (1993-2001) as well as of efficiency and targeted use of loans and other sources of financing.

Objects of audit: RF Ministry of Transport, state enterprise "General Administration of the State Principal for Implementation of the Russian Merchant Fleet Revival Program, public joint-venture "Kompaniya Ust-Luga", public joint-venture "Rosterminalugol", public joint-venture "Baltiyskiy Zavod".

Yuri Voronin
(p. 162)

International Accounting and Auditing Standards.

Fundamental changes in the world economy associated with globalization and an increasing role of international integration called for the unification of accounting, uniformity and transparency in drafting financial reports, especially in the part of generation and calculation of profits, accounting and recognition of invested capital. Accounting, reporting and auditing should be based on uniform principles and provide users with the information about assets and financial position of the entity that is understandable, comparative, significant, important and reliable, i.e. complete and based on economic approaches.

No national financial market will be able to develop in isolation from the international environment, therefore, the process of developing world standards cannot be stopped. It is also impossible for our country to remain outside the scope of international standards because they are based on the general world practice in the field of accounting, reporting and auditing, easy understanding of financial information, clear economic logics. International standards should be first of all considered as an effective instrument for entering international markets of capital, as a new complex approach to formulation of financial information.

Georgian Law "On The Audit Chamber of Georgia"
(p. 173)