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Presentation of the Accounts Chamber of Kyrgystan

«Accounts Chamber as a Supreme Auditing Institution of the Kyrgyz Republic».

Main objectives and tasks of the Accounts Chamber.

The Accounts Chamber of the Kyrgyz Republic is an independent supreme body of the State audit and the state auditor of all State and municipal enterprises, organizations and establishments of the Kyrgyz Republic.

The Accounts Chamber was founded in 1996 on the basis of Control Chamber of the Kyrgyz Republic. Its organization and activity are defined by the law.

The main objective of the Accounts Chamber is to conduct audits and performance audits: to assess execution of the republican budget, formulation and execution of the local budgets, off-budget and special funds, and uses of the State and municipal property, maintenance of and compliance with the international standards of public auditing.

The Kyrgyz Republic formed the system of strategic management (Development Strategy of the country for 2007-2010) and program budgeting requirement control over the results of development.

In this connection, main efforts of the Accounts Chamber of the Kyrgyz Republic in 2008 were focused on reforming audit activities.

Its purpose was increasing potential of the Accounts Chamber, introducing performance audits, making every effort to encourage the Government to increase economic potential of the State by carrying out high quality analytical surveys and assessing the disbursement of public funds allocated for the implementation of strategic and social programs of the State. The result was enactment in October, 2008 of the Law «On Amendments and Additions into the Law “On Accounts Chamber of the Kyrgyz Republic” and “The Strategic Development Plan of the Accounts Chamber of the Kyrgyz Republic for 2009-2011”.

In brief, the following amendments are made into the Law «On Accounts Chamber of the Kyrgyz Republic»:

definitions of the public audit have been given breaking it down to 3 types (financial audits, compliance audits, performance audits);
carrying out tax and customs audits in generating the revenue part of the budget, correctness of calculation by the National Bank of revenues deducted to the republican budget;
exercising timely control in the course of the republican budget execution;
reducing the number of auditors to 3 units;
including in the powers of auditor the functions of directing areas of activity of the Accounts Chamber as well as participating in the Parliament and Government sessions;
swearing an oath to Parliament (the Chairman and auditors) and to the Council of the Accounts Chamber (employees) to enhance moral responsibility.

Quality assurance of audits is assigned to auditors and their divisions.

If an unsound audit was conducted according to auditors’ reports or certificates were received on undetected infringements, the Chairman is given the right to appoint recheck. The Development Strategy of Accounts Chamber of the Kyrgyz Republic for 2009-2011 has been accepted which provides for working out:

Concepts of the public audit development;
the plan for the Accounts Chamber to carry out an audit of the consolidated financial report of the Government;
criteria for the efficiency of activities and disbursement of funds;
methodology and instructions on carrying out financial audits and performance audits in accordance with the National standards of public audit;
constructive interaction between the Accounts Chamber and Parliament;
formats of the required reports.

The President of the Kyrgyz Republic gave an assignment to assess activities in education and public healthcare as well as in the tax and customs administration related to the execution of the revenue part of the republican budget, quality of budgeting and execution of the republican budget for 2008.

Changes in legislation have impacted the structure of the Accounts Chamber. Thus, for streamlining audit activities the Accounts Chamber set up relevant divisions in charge of major audit areas.

Organizational Structure of the Accounts Chamber.

The Accounts Chamber is composed of the Chairman and 3 Auditors elected by Parliament of the Kyrgyz Republic on representation of the President of the Kyrgyz Republic for a period of 5 years. The Accounts Chamber’s structure includes the cabinet and three territorial divisions. The Accounts Chamber supreme body is the Council consisting of seven members: the Chairman and Auditors of the Accounts Chamber, one representative of the President of the Kyrgyz Republic and two Members of Parliament. The staff (201 in total, 146 in the central office, and 55 in territorial divisions) of the Accounts Chamber is formed by the President of the Kyrgyz Republic with the consent of the profile Committee of Parliament on representation of the Chairman of the Accounts Chamber.

The management of the central office is carried out by the Head of the Cabinet of Accounts Chamber who has one deputy.

The central office consists of:

the main analytical division;
3 divisions on maintenance of activity of three auditors in corresponding areas;
main public inspectors, public inspectors, inspectors, who are assigned to a definite area for carrying out audits in entities financed from the republican budget;
independent departments in charge of legal maintenance, public service and financial and economic questions.

The management of 3 territorial divisions of the Accounts Chamber is carried out by Heads of Territorial divisions of the Accounts Chamber. In addition, the Accounts Chamber’s structure was supplemented by the Training and Administrative center with the basic function of developing standard documents and ensuring continuous training of employees of the Accounts Chamber.

International Cooperation.

According to the law «On the Accounts Chamber of the Kyrgyz Republic» the Accounts Chamber establishes and maintains international relations with government units of foreign states and their international associations engaged in public audits and conclude relevant cooperation agreements.

The Accounts Chamber is a member of INTOSAI (the International Organization of Supreme Auditing Institutions), ASOSAI (the Asian Organization of Supreme Auditing Institutions), ECOSAI (the Organization of Economic Cooperation of Supreme Auditing Institutions) and Council of heads of the Supreme Auditing Institutions of the CIS; it also maintains mutual relations with Supreme Auditing Institutions of the countries of near and far abroad.

At the 39 Board meeting of INTOSAI – members of the United Nations that took place on October, 17th, 1994 in Cairo, Egypt, the Control Chamber of the Kyrgyz Republic was admitted into this organization.

At the extraordinary Board Meeting of ASOSAI on September 29, 1995 in Cairo, Egypt, the application of the Control Chamber of the Kyrgyz Republic for membership in ASOSAI was considered and was unanimously approved.

The Accounts Chamber of the Kyrgyz Republic has been an official member of ECOSAI since 1998. The Chairman of the Accounts Chamber of the Kyrgyz Republic is a member of the ECOSAI Governing Board, along with heads of SAIs of Azerbaijan, Kazakhstan, Pakistan and Turkey Multilateral cooperation of Supreme Auditing Institutions of the state-participants of the Commonwealth of Independent States has started. In November, 2000 at the initiative of the Accounts Chamber of the Russian Federation, Moscow hosted the meeting of the Commonwealth SAI Chairmen. The most important result was recognizing, for the first time, the necessity of strengthening SAIs interaction within the CIS and setting up the Council of CIS SAIs Chairmen. Also, a performance audit of the Compulsory Medical Insurance Fund of the Kyrgyz Republic was conducted with the assistance of USAID experts.

A performance audit to check the use of foreign investments and grants issued under the government program «Pure water» was conducted as well.