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Increase efficiency of using budget funds

In March 2017, Nurmukhambet Abdibekov was appointed to the post of Chairman of the Accounts Committee by the President’s decree. The chief state auditor of the country told "Kazakhstankaya pravda" about the work of the department, financial discipline of the budget recipients and much more.
- Nurmukhambet Kanapievich, now you have to inspect state structures, departments, regions. How do you think, how difficult it will be?

- As the head of the supreme body of state audit, I have serious tasks, and I am going to solve them. We will work with administrators of budget programs in a constructive way: we point out violations and shortcomings, give appropriate recommendations, and they eliminate them.

- Is it necessary to intensify the work of the Accounts Committee?

- At the end of 2015, the Law "On State Audit and Financial Control" was adopted, which significantly expanded the functions of the Accounts Committee, delineated the powers of state audit and financial control bodies.

The Accounts Committee is now working in the state audit mode, restructuring its activities. We have all the necessary powers for today. The main thing is to implement them qualitatively and effectively. Whether we need structural changes or, for example, changes in legislation in the sphere of state audit, I think, time will tell.

- You run the Accounts Committee for less than a month.

- A number of audit activities have already been completed, we are summarizing the results. We have already held one meeting. The results of the rest will be discussed and presented to the general public.

In addition, preparation of the annual report of the Accounts Committee is underway. There are deadlines for submitting the report to the Parliament.

Last week, we reviewed the results of a state audit conducted in the Forestry and Wildlife Committee of the Agriculture Ministry.

Not only significant financial violations, but also shortcomings in protection, reproduction and use of forests, fauna were revealed, and gaps in legislation regulating this sphere have been identified.

The audit showed that in many respects this is the result of low qualification of employees of organizations subordinated to the Committee of Forestry and Wildlife.

I believe that all the shortcomings, gaps in legislation, insufficient skills of the executors lead to numerous financial and other violations, which were confirmed by the results of this audit event.

- You mentioned the preparation of the report for 2016. Which violations are most often made? Which areas are the most problematic?

- More than 30% of violations were committed due to non-compliance with accounting, the Budget Code, more than 40% - the sectoral legislation. At the same time, thanks to the measures taken in recent years, including the improvement of the regulatory framework, the number of violations of the legislation on public procurement and construction activities has been reduced.

Particular concern was caused by the implementation of state and government programs. Last year, the programs "Salamatty Kazakhstan", "Information Kazakhstan-2020", "Business Road map -2020", Program for development of agro-industrial complex were inspected. These are very important social programs, for which considerable budgetary resources are allocated. However, the state audit showed that there are systemic gaps in their implementation, including those associated with the selected mechanisms for their implementation.

Systemic deficiencies were revealed in such areas as education, state expertise, agriculture and water management, the fuel and energy complex and the gas sector, and transport. Numerous violations were identified when conducting auditing activities in the regions. These are the violations made in implementation of investment projects, program documents.

We will talk about these and other problems of budget execution in May in the Parliament.

- What are the tasks assigned to the Accounts Committee for the current year?

- In the Address "Third modernization of Kazakhstan: global competitiveness", the Head of State stressed that it is necessary to radically improve the efficiency of using budgetary funds.

First of all, the President instructed to check the efficiency of using the funds allocated to the three ministries: labor and social protection of the population, health, education and science. And this is not accidental, since they account for more than 40% of the republican budget, and, most importantly, the activities of these state bodies affect the interests of the daily life of the country's population.

Therefore, these instructions of the Head of State are a priority for us. The list of objects of state audit for 2017 was revised, taking into account the tasks set by the President. In March, the Accounts Committee began to audit the Ministry of Labor and Social Protection of Population, in April we will begin an audit of the ministries of health, education and science. These are large complex inspections that will last several months.

In addition, our main work is to carry out auditing activities planned in accordance with the List of State Audit Objects for 2017 in a qualitative and timely manner. This includes a number of ministries and several regions. Quasi-public sector will also be in our focus. In particular, the NWF "Samruk-Kazyna", JSC "NC" Astana EXPO-2017 ".

One of the most important events to be implemented this year is a preliminary assessment of the draft budget of the republic. This is a new function. Since last year the representative of the Accounts Committee participates as an observer in the work of the Republican Budget Commission. I think this will help prepare a qualitative conclusion and give constructive recommendations on improving budget planning.

Leonid Sokolov
11:48,8 April 2017


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