Chapter 3. Procedures of the Accounts Chamber

Article 9. Types of Activity of the Accounts Chamber

In the course of performing the objectives specified in Article 2 hereof, the Accounts Chamber shall carry out control and audit, expert analytical, informational, and other types of activities, ensure a general system of control over the execution of the federal budget and federal extra-budgetary funds which provides for the following:

organization and exercise of operational control over the execution of the federal budget in a current year;

conduct of comprehensive audits and specific inspections of individual chapters and items of the federal budget and federal extra-budgetary funds;

examination of the draft federal budget, draft laws and other legislative standard acts, international treaties of the Russian Federation, federal programs and other documents concerning the budget and finances of the Russian Federation;

investigation of breaches and discrepancies in the budgetary process, preparation and submission to the Federation Council and the State Duma of proposals on the elimination thereof and on the improvement of the budget legislation as a whole;

preparation and submission to the Federation Council and the State Duma of opinions on the execution of the federal budget and federal extra- budgetary funds in an accounting year;

preparation and submission of opinions and answers to enquiries of bodies of state power of the Russian Federation.

Article 10. Organization and Planning of the Work of the Accounts Chamber

The Accounts Chamber shall base its work on annual and current plans and programs to be formulated in consideration of the necessity to ensure the comprehensive systematic control over the execution of the federal budget, proceeding from all forms of activities and areas of work of the Accounts Chamber.

Planning shall be done on the basis of technical-economic norms and rules, control and audit standards, methodological guidelines to be developed by the Accounts Chamber.

Instructions of the Federation Council and the State Duma, petitions from at least 1/5 of the deputies ( members) of the Federation Council or the State Duma shall he subject to mandatory inclusion in the plans and programs of the Accounts Chamber.

Enquires from the President of the Russian Federation, committees and commissions of the chambers of the Federal Assembly of the Russian Federation, individual deputies ( members) of the Federation Council and individual deputies of the State Duma, the Government of the Russian Federation, bodies of power of the subjects of the Russian Federation shall be subject to mandatory consideration in the course of preparation of plans and programs of the Accounts Chamber.

A draft annual plan shall be considered and ratified by the Collegium of the Accounts Chamber.

Unscheduled control measures shall be conducted on the basis of the resolutions of the Federation Council and the State Duma of the Fedeal Assembly of the Russian Federation, under a petition from at least one fifth of the deputies ( members) of the Federation Council and the State Duma, and also by decision of the Collegium of the Accounts Chamber.

Article 11. Regulations of the Accounts Chamber

Internal matters of operation of the Accounts Chamber, the division of functions among the auditors of the Accounts Chamber, the functions of and interaction between the structural units of the office thereof, the procedure of investigating cases, preparing and implementing of all types and forms of control and other measures shall be determined by the Regulations of the Accounts Chamber to be approved by the Collegium thereof.

Article 12. Scope of Control Powers of the Accounts Chamber

The control powers of the Accounts Chamber shall extend to all state bodies (including offices thereof) and institutions of the Russian Federation; to federal extra-budgetary funds.

The control powers of the Accounts Chamber shall also extend to bodies of local self-government, enterprises, organizations, banks, insurance companies and other financial and credit institutions, unions, associations and other alliances thereof regardless of types and forms of ownership, provided they receive, remit, use resources of the federal budget, use or manage the federal property, and enjoy tax, customs and other exemptions and privileges granted by federal law or federal bodies of state power.

The control powers of the Accounts Chamber shall extend to the activities of public associations, non-state funds, and other non-state non-commercial organizations to the extent of the receipt, remittance or use by them of the resources of the federal budget, use and management of the federal property, and also with regard to tax, customs or other exemptions and privileges granted thereto by the federal law or federal bodies of state power.

Article 13. Provision of Information in Response to Enquiries from the Accounts Chamber

All bodies of state power in the Russian Federation, bodies of local self-government, the Central Bank of the Russian Federation, institutions, enterprises, organizations and officials thereof regardless of the forms of ownership, shall be obliged to furnish the Accounts Chamber, in response to enquiries thereof, with information necessary for ensuring activity of the Accounts Chamber.

In conducting inspections and audits, the Accounts Chamber shall receive from inspected institutions, organizations, enterprises, banks and other credit-and-financial agencies all necessary documentation and information on questions within its terms of reference.

On demand of the Accounts Chamber, the Central Bank of the Russian Federation, commercial banks and other credit and financial institutions shall be obliged to furnish the Accounts Chamber with necessary documentary evidence of operations and states of accounts of audited objects. Other enterprises, institutions and organizations shall be obliged to submit, on demand of the Accounts Chamber, certificates and copies of documents on operations and settlements therewith.

Refusal or avoidance by officials of the aforementioned bodies, organizations, enterprises and institutions of timely provision of necessary information or documentation demanded by the Accounts Chamber, as well as submission of false information shall entail responsibility in accordance with the legislation in force.

Article 14. Operationial Control over the Execution of the Federal Budget

In the course of executing the federal budget, the Accounts Chamber shall exercise control of the fullness and promptitude of incomings, actual expenditure of budgetary allocations as against the legally approved indicators in the federal budget, reveal discrepancies and breaches, carry out analysis thereof, initiate proposals on elimination thereof.

The Accounts Chamber shall quarterly and in accordance with the established form submit to the Federal Assembly an operational report on the execution of the federal budget that shall contain actual data on the formation of income and effected disbursements as against the indicators for a preceding period, quarter which are approved by the federal law on federal budget for the current year.

The form of report shall be approved by the State Duma in agreement with the Federation Council.

To ensure timely collection and processing of information required for the preparation by the Accounts Chamber of a report on the execution of the federal budget, appropriate financial accounting shall be introduced in the Russian Federation that will be mandatory for all federal bodies of executive power, enterprises, organizations, and institutions. The decision on specific dates of introduction and forms of such accounting shall be taken by the Government of the Russian Federation on recommendation of the Accounts Chamber.

Operational control data shall be used when planning audits and checks.

Article 15. Audits and Checks

Comprehensive audits and specific checks shall be conducted at the location of inspected entities. The dates, volumes and means of conducting thereof shall be determined by the Accounts Chamber.

In the course of audits and checks, the timeliness and completeness of settlement of mutual payments between an inspected entity and the federal budget shall he verified on the basis of documentary confirmation of the legality of production and business activity, authenticity of bookkeeping and financial accounting.

A report shall be prepared based on results of an audit or check, officers of the Accounts Chamber being personally responsible for the report to be accurate.

The Accounts Chamber shall report results of audits and checks to the Federation Council and the State Duma, make them known to the heads of relevant federal bodies of executive power, institutions, enterprises, organizations.

The Accounts Chamber shall report to the Federation Council and the State Duma of the damage caused to the state, an in case of the revealed breaches of the law which entail criminal responsibily, submit the relevant materials to law enforcement bodies.

In conducting checks and audits officers of the Accounts Chamber may not interfere with the operational activity of inspected entities, nor shall they disclose their conclusions before completing a check (audit) and before formally capturing of the results thereof in the form of an act (opinion).

Officers of the Accounts Chamber and enlisted specialists can use the data obtained in the course of checks and audits solely in fulfilling the works entrusted to them by the Accounts Chamber.

Article 16. Control over the Internal and External Debt of the Russian Federation and the Use of Credit Resources

The Accounts Chamber shall exercise control over:

the management and servicing of the state internal and external debt of the Russian Federation;

the legality, rationality and effectiveness of the use of foreign credits and loans received by the Government of the Russian Federation from foreign states and financial organizations;

the effective placement of centralized financial resources extended on a pay back basis;

the granting of state credits, and the granting of free resources to foreign states and international organizations.

Article 17. Control over Federal Extra-Budgetary Funds

The Accounts Chamber shall control over the formation and effective use of federal extra-budgetary funds and currency resources that are within the purview of the Russian Federation Government.

Article 18. Control over Receipts to the Federal Budget from Managing and Disposing of the State Property

The Accounts Chamber shall exercise control over receipts to the federal budget from:

the disposing (including privatization, sale) of the state assets;

the managing of the objects of federal property.

Article 19. Control over the Banking System

The Accounts Chamber shall exercise control over:

the activity of the Russian Federation Central Bank, structural units thereof, other banks and credit and financial institutions with regard to servicing by them of the federal budget;

the servicing by the Central Bank of the Russian Federation of the state debt of the Russian Federation;

Article 20. Expert Examinations and Opinions of the Accounts Chamber

The Accounts Chamber shall carry out expert examination and produce opinions on:

the draft federal budget, the validity of income and expenditure items thereof, the size of the. state internal and external debt, and the federal budget deficit;

problems of budgetary and finance policy and on the improvement of the budgetary process in the Russian Federation;

drafts of legislative and other legal standard acts on budgetary and financial matters submitted for consideration of the State Duma;

drafts of international treaties which may entail legal consequences for the federal budget;

draft projects to be financed from the federal budget.

With regard to other matters within terms of reference thereof, the Accounts Chamber shall prepare and submit opinions or written replies on the basis of:

enquiries from the Russian Federation President;

instructions from the Federation Council or the State Duma formalized by appropriate resolutions;

enquiries from committees and commissions of the Federation Council and the State Duma;

enquiries from deputies (members) of the Federation Council and the State Duma;

enquiries from the Government of the Russian Federation;

enquiries from bodies of power of the subjects of the Russian Federation.

The Collegium of the Accounts Chamber shall decide upon the consideration of an enquiry and producing of an opinion or refusing thereof. In the event of the refusal, the Chairman of the Accounts Chamber shall return the enquiry stating grounds for the refusal.

Opinions of the Accounts Chamber may not contain political appraisals of the decisions taken by the bodies of representative and executive power of the Russian Federation on the matters within its terms of reference.

Article 21. Analysis of Results of Control Measures

The Accounts Chamber shall systematically analyze results of control measures, sum up and analyze causes and consequences of the revealed discrepancies and breaches in the process of the formation of revenues and disbursement of resources of the federal budget.

Based on the data obtained, the Accounts Chamber shall prepare and submit for consideration to the State Duma proposals on the improving of the current budgetary legislation and developing of the budgetary and financial system of the Russian Federation.

Article 22. Interaction of the Accounts Chamber with Other Control Bodies of the Russian Federation

The control bodies of the President and the Government of the Russian Federation, Federal Counter-intelligence Service, External Intelligence Service, Federal Agency of Government Communications and Information, law enforcement agencies, control bodies of the subjects of the Russian Federation, the Central Bank of the Russian Federation and internal control and audit department thereof, Ministry of Finance and control and audit department thereof, State Taxation Agency, Tax Police Department, and other state control bodies, bodies of internal control shall be obliged to render assistance to the Accounts Chamber in the activities thereof, provide the Accounts Chamber, in response to enquiries thereof, information on the results of checks and audits being conducted.

In carrying out control and inspection activity, the Accounts Chamber shall have the right within the terms of reference thereof to enlist in its measures state control bodies and representatives thereof, and to contract non-state audit services and individual specialists.

Article 23. Submissions of the Accounts Chamber

Based on results of the executed control measures, the Accounts Chamber shall deliver to bodies of state power of the Russian Federation, the heads of inspected organizations, institutions and enterprises submissions for undertaking measures on the elimination of the revealed violations, compensation to the state for the damage done and taking legal steps against the officials in fault of violating legislation of the Russian Federation and of mismanagement.

Submission of the Accounts Chamber must be considered within the term stated in a given submission or, if the time period is not set, within twenty days of the receipt thereof. The Accounts Chamber shall be promptly notified of decisions taken on the submission and measures to implement it.

The Accounts Chamber shall immediately pass on to law enforcement agencies results of an inspection or audit if it has identified in the course of said inspection or audit embezzlement of state monetary or material resources and other abuses.

Article 24. Orders of the Accounts Chamber

Should any breaches in business, financial, commercial or other activity within the inspected objects be revealed that cause direct damage to the state and, in this connection, need to be immediately eliminated, as well as in cases of deliberate or systematic non-observance of the procedure and dates for consideration of submissions of the Accounts Chamber, in cases of impeding to control measures, the Accounts Chamber shall have the right to issue mandatory orders to the management of the inspected enterprises, institutions and organizations.

Orders of the Accounts Chamber shall be signed by the Chairman or Deputy Chairman of the Accounts Chamber.

Orders to heads of federal bodies of executive power , members of the Government of the Russian Federation and to heads of the executive power bodies of the subjects of the Russian Federation shall be approved by-the Collegium of the Accounts Chamber and signed by the Chairman or Deputy Chairman of the Accounts Chamber.

In the event of repeated non-compliance or improper compliance with orders of the Accounts Chamber, the Collegium of the Accounts Chamber can, as agreed with the State Duma, take a decision to suspend all types of financial, payment and settlement operations on the accounts of the inspected enterprises, institutions and organizations.

An order can be cancelled or amended by the Collegium of the Accounts Chamber.

An order can be appealed in the court of justice.

Article 25. Special Opinions of Members of the Accounts Chamber

Reports on results of checks and audits shall be submitted for consideration of the Collegium of the Accounts Chamber by the auditors in charge of the conduct thereof. Based on this consideration, the Collegium of the Accounts Chamber shall take a decision to be signed by a chairman of a session of the Collegium of the Accounts Chamber.

A member or a group of members of the Collegium of the Accounts Chamber who disagree with a decision thereof shall be entitled to submit at three days notice to the Chairman of the Accounts Chamber a special opinion which shall be attached thereto and be subject to publication jointly with the decision of the Collegium.

It shall be a mandatory requirement that special opinions of members of the Collegium be made known during the submission of materials of checks and audits to the chambers of the Federal Assembly of the Russian Federation. If a special opinion is presented by the Chairman or Deputy Chairman of the Accounts Chamber, they shall be given the floor for co-report.

Article 26. Powers of Inspectors of the Accounts Chamber in Carrying out Audits and Checks

In performing their official duties of carrying out budgetary and financial control, inspectors of the Accounts Chamber shall be have the right to:

freely visit state bodies, organizations, institutions and enterprises, banks and other credit and financial institutions regardless of form of ownership, visit any military formations and units, enter any production, warehouse, trade and office premises, unless otherwise provided by the effective Russian Federation legislation;

seal cash boxes, cash offices and office premises, warehouses and archives, and upon identification of falsifications, forgeries, embezzlement and abuses, to impound necessary documents, leaving a certificate of impoundment and copies or a list of impounded documents;

Managers of inspected entities shall be obliged to create normal conditions for the work of inspectors of the Accounts Chamber who conduct a check or an audit, to place at their disposal necessary space, means of transport and communications, to provide inspectors with technical services and secretarial support.

Article 27. Duty to Comply with Requirements of Inspectors of the Accounts Chamber

Requirements of the Accounts Chamber inspectors related to the performance of duties thereof shall be binding on state bodies, enterprises, organizations, institutions irrespective of subordination and forms of ownership thereof.

Article 28. Responsibility of Inspectors of the Accounts Chamber

Inspectors of the Accounts Chamber shall be responsible in accordance with the legislation in force for authenticity of results of checks and audits conducted by them and submitted to state bodies or made public, and for disclosure of state or other secrets protected by law.