Kazakhstan Eng by T4YX2I

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									         Ministry of Finance of the Republic of Kazakhstan
                               Treasury Committee

Topic: «Integration of External Financing in the Process of Budget, Accounting
and Reporting Execution»
             EXTERNAL FINANCING IN THE PROCESS OF BUDGET EXECUTION

     LEGAL ENVIRONMENT:
1. International loan agreements ratified by the Parliament of the Republic of Kazakhstan and
international financial institutions Guidelines.
2. Budget Code of the Republic of Kazakhstan #95-IV of 4.12.2008
3. Government Decree on “The rules of Budget administration and cash services” #220 of 26.02.2009
4. Government Decree of the Republic of Kazakhstan “On Reporting on state external loans” #616 of
April 21, 2000

     The procedure of borrowing, usage, redemption and facility of government external loans is defined
by the Government of the Republic of Kazakhstan.

     Ministry of Finance Treasury Committee of the Republic of Kazakhstan:
•    Carries out financial procedures on debiting from state external loan accounts, relevant grants, co-
financing resources from the republican budget and monitors their application;
•    Performs payments from the republican budget, directed on repayment and service of republican
loan obligations.

    Statistical data on external loans is published on the Republic of Kazakhstan Ministry of Finance
web-site (www.minfin.kz).
          As of February 1, 2012 in the Kazakhstan Republic


There are 21 investment projects financed at the             The Treasure Committee is serving 45 external
    expense of external governmental loans at a                    governmental loans at the expense of
        stage of implementation, including:                            republican budget, including:




                                                                 16 projects – IBRD
   12 projects – IBRD
                                                                 10 projects – ADB
    5 projects – ADB
                                                                  5 projects – IDB
    2 projects – JICA (Japan)
                                                                  5 projects – JICA (Japan)
    1 project – IDB
                                                                  3 projects – EBRD
    1 project – EBRD
                                                                  3 projects – KfW (Germany)
                                                                  1 project – ADFD (UAE)
                                                                  1 project – KFAED (Kuwait)
                                                                  1 project – SFD (Saudi Arabia)


         Note: The projects finance at the expense of relevant grants and guaranteed by the state loan
                                           are not included in the lists
                               Chart
             of External Loan Expenditures by Means
                         Of Direct Payment



   Creditor                                                         Goods, work and services
(loan account)                      4   Payment                             supplier



     3   Request for payment



                               The request for payment approved
   Budget                 1    by Administrator (for signing)
  Program                                                             Treasury Committee
Administrator             2    The signed request for payment


                          6 The report on receipt and expenditure

                          5    Written extract

                                                                             7   Summary report

                                   Integrated
                                  information
                                     system
                                  of treasury
                                              Chart
                                of Special Account Disbursement


                                                      Payment
Special account                                                                 Goods, work and services
 in Kazakhstan                                          2                               supplier
                                Request for payment
commercial bank
                                        1

                      Written extract           Budget              Expenditures report
                                               Program
                         3                   Administrator                  4

           Detailed
    6      monthly                   Integrated           Summary report
            report
                                    information                                   Treasury Committee
                                       system                   5
                                     of treasury
Creditor
Chart of Redemption and Servicing Procedure for Government and State Guaranteed Debt of
                 the Republic of Kazakhstan from the Republican Budget

                                                      1                             2
             Creditor                      Invoice for payment               Invoice for payment             JSC “Central securities
                                              of external loans              of internal loans                depositary institution”




        Correspondent bank
             of creditor                                                                                      Department of state
                                                                                               8
                                                        Treasury Committee                                   loans of Kazakhstan
                                                                                            Actual data           Ministry of
          Payments of Kazakhstan                                                            on payments             Finance
    7     external loans and services in
          foreign currency
                                                  Daily extract              Invoice for payment in tenge and
                                                  on expenditures 4       3 request for converting foreign
                                                                             currency
            Kazakhstan
           National Bank                                   Treasury department
                                                               of Astana city

          Request for converting foreign                                                                        Payments on redemption
    6     currency and tenge coverage of                                                                        and service of internal debt   5
          foreign currency procurement                             Integrated                                   of Kazakhstan
                                                                  information
                                                                    system
                                                                   of treasury
Treasury Committee Department of Republican
            Budget Reporting


                                   Head expert
                                    (6 units)
  Head of Department
                                      Expert
                                     (2 units)



                               Republican budget
                                  accounting


      Functions

                       Reception and verification of budget
                         reporting from republic budget
                             program administrators
       Particularities of Accounting and Financial Reporting During Project
                       Management Using External Financing
    Legislative environment:
•   Budget Code of the Republic of Kazakhstan of December 4, 2008.
•   The rules of the budget accounting #495of November 16, 2009.
    The procedure of the budget accounting of republican and local budgets execution
    is defined by the Republic of Kazakhstan Ministry of Finance and the accounting
    itself is done by Treasury Committee of the Republic of Kazakhstan Ministry of
    Finance.

    The Treasury Committee of the Republic of Kazakhstan Ministry of Finance carries
    out the system of gathering, registration and generalization of information on
    requirements and obligations of the Republic of Kazakhstan in monetary terms
    regarding transactions using single treasury account, control cash accounts and
    public institutions accounts. The system is regulated by budget legislation of the
    Republic of Kazakhstan.
    The budget accounting is budget execution tracking implemented on cash basis,
    when transactions are reflected on bills with double recording according to the chart
    of accounts.
    Budget accounting is done in national currency of the Republic of Kazakhstan.
         Budget Accounting Chart of Accounts
    Accounts are grouped into seven groups of the main book and one off-balance accounts group in the
    following way:
•   1. Financial resources including Single treasury account
•   2. Funds in the National bank of the Republic of Kazakhstan (deposits)
•   3. Control cash accounts and other accounts in national currency
•   4. Accounts in foreign currency
•   5. Settlements
•   6. Receipts
•   9. Results
•   Off-balance accounts.
    To reflect the funds flow on external loans the following accounts are used:
    302 «Account on external loans», where the funds flow on external loans account is recorded.
    Receipt of funds is reflected by DB subaccount 302 and CR subaccount 610.
    Disbursement of funds is reflected by DB subaccount 510 and CR subaccount 302
    510 «Disbursement of external loans» account disbursement of external loans are recorded».
    610 «Placing funds of external loans» account receipts of external loans are recorded.

    Budget accounting data is the basis for budget reporting on budget execution.
                                              Reporting
                                on External Loans in Budget Accounting

                    Reporting on external loans
            Institution, program         Office code            Name of             Donor                Budget              Start of          Loan receipt         Loan disbursement         End of
#             and subprogram                                   institution                            classification        the year                                                         reporting
                     code                                                                                 code              balance                                                            period
                                                                                                                                                                                              balance


 А                    1                         2                  3                 4                          5               6                   7                         8                   9



            Total



     Information on external loans disbursement in the framework of investment projects

   Budget                 Adjusted budget for          Reporting year                                                      Disbursement                                                 The balance of
classification               the reporting          financing summary                                                                                                                   unused funds
    code                    financial year                 plan
                                                                                         Total                          On spec. account                On off-shore payments

                                                                              For the             From the           For the         From the            For the      From the
                                                                             reporting           start of the       reporting       start of the        reporting    start of the
                                                                               period               year              period           year               period         year

        1                         2                        3                    4                     5                6                   7               8              9                  10




Total
                                         Accounting
                                    in Public Institutions
Legislative Environment:
•    Budget Code of the Republic of Kazakhstan of December 4, 2008.
•    Guidelines on accounting in public institutions #30 of 27.01.1998 and Rules of budget reporting by public
     institutions and budget program administrators #89 of 27.02.2009.
      Accounts are grouped into seven groups of the main book and one off-balance accounts group:
•    1. Assets
•    2. Inventory
•    3. Assets of low unit cost
•    4. Production costs and others
•    5. Funds
•    6. Internal payments
•    7. Settlements
•    8. Disbursement
•    9. Financing
•    10. Funds and earmarked funds
•    11. Products sale
•    Off-balance accounts.
      To reflect the funds flow on external loans the following accounts are used :
- 099 «Plans for liabilities on projects funded by external loans and relevant grants»
- 113 «Special account of budget investment project on external loans»
- 151 «Liabilities settlement at the account of external loans»
- 204 «Disbursement on projects funded by external loans»
- 239 «Project funding by external loans»
- 249 «External loans»
                                       Reporting
                   on External Loans in Public Institutions Accounting
                                 Report on external loans
         Functional group_____________________                                                                        Report on grants
         Budget program administrator__________________
         Name of public institution,                                                     Budget program administrator __________________
         implementing investment project_________________                                         Periodicity: annual, quarterly __________________
         Budget program_______________________________                                            Measurement unit: thousand tenge
         Subprogram_____________________________________
         Periodicity: annual, quarterly__________________
         Measurement unit: thousand tenge
            Name                 Loan #   Lin   Revenue             Amount
                                          e        or                                                         Name                  Line/spec.    Relevant grants
                                          cod   specifics                                                                              code
                                          e       code      Total    On      Off-shore
                                                                    spec.    payments                            1                      2               3
                                                                    accou
                                                                      nt                  Balance for the start of the year            010
               1                   2       3       4           5     6          7         - total

Balance for the start of the              010                                   Х         including cash balance                       011
year
                                                                                          Current year receipt                         020
Received from the start of the            040      Х
year- total                                                                               Total                                        040
Including (from donor) -
                                          041                                             Expenditures – total                         050
ADB
                                          042
-IBRD
                                          043                                             including by specifics
-EBRD
                                          044                                             Balance at the end of reporting period       170
-Earmarked transfers from
republican budget
                                          045
                                          050      Х                                      including cash balance                       171
Spent since the start of the
year – total
including (by specifics)
Special account balance at the            170                                   Х
end of the reporting period
including – foreign currency
  - tenge special account                 171                                   Х
                                          172                                   Х
Verification of Accounting Data

                                     Budget
         Budget
                               accounting data
    accounting data
                               on external loans
    on external loans
                                 of republican
      of Treasury
                               budget program
       Committee
                                administrators




                    Republican
                  budget execution
                       data
Thank you for your attention!

Contacts:
a_dost @ minfin.kz
I_zhusipalieva@minfin.kz

								
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