Transcript Kazakhstan - Eng

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, cofinancing 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
expense of external governmental loans at a
stage of implementation, including:
12 projects – IBRD
5 projects – ADB
2 projects – JICA (Japan)
1 project – IDB
1 project – EBRD
The Treasure Committee is serving 45 external
governmental loans at the expense of
republican budget, including:
16 projects – IBRD
10 projects – ADB
5 projects – IDB
5 projects – JICA (Japan)
3 projects – 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
(loan account)
3
4
Payment
Goods, work and services
supplier
Request for payment
Budget
Program
Administrator
1
The request for payment approved
by Administrator (for signing)
2
The signed request for payment
Treasury Committee
6 The report on receipt and expenditure
5
Written extract
7
Integrated
information
system
of treasury
Summary report
Chart
of Special Account Disbursement
Payment
Special account
in Kazakhstan
commercial bank
Request for payment
Goods, work and services
supplier
2
1
Written extract
3
6
Creditor
Detailed
monthly
report
Budget
Program
Administrator
Integrated
information
system
of treasury
Expenditures report
4
Summary report
5
Treasury Committee
Chart of Redemption and Servicing Procedure for Government and State Guaranteed Debt of
the Republic of Kazakhstan from the Republican Budget
1
Creditor
2
Invoice for payment
of internal loans
Invoice for payment
of external loans
Correspondent bank
of creditor
Treasury Committee
7
Actual data
on payments
Payments of Kazakhstan
external loans and services in
foreign currency
Daily extract
on expenditures
4
Kazakhstan
National Bank
6
Request for converting foreign
currency and tenge coverage of
foreign currency procurement
8
JSC “Central securities
depositary institution”
Department of state
loans of Kazakhstan
Ministry of
Finance
Invoice for payment in tenge and
3 request for converting foreign
currency
Treasury department
of Astana city
Integrated
information
system
of treasury
Payments on redemption
and service of internal debt
of Kazakhstan
5
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
and subprogram
code
Office code
Name of
institution
Donor
Budget
classification
code
Start of
the year
balance
Loan receipt
Loan disbursement
End of
reporting
period
balance
1
2
3
4
5
6
7
8
9
А
Total
Information on external loans disbursement in the framework of investment projects
Budget
classification
code
1
Total
Adjusted budget for
the reporting
financial year
2
Reporting year
financing summary
plan
3
Disbursement
Total
The balance of
unused funds
On spec. account
On off-shore payments
For the
reporting
period
From the
start of the
year
For the
reporting
period
From the
start of the
year
For the
reporting
period
From the
start of the
year
4
5
6
7
8
9
10
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
Report on grants
Functional group_____________________
Budget program administrator__________________
Name of public institution,
implementing investment project_________________
Budget program_______________________________
Subprogram_____________________________________
Periodicity: annual, quarterly__________________
Measurement unit: thousand tenge
Name
1
Balance for the start of the
year
Received from the start of the
year- total
Including (from donor) ADB
-IBRD
-EBRD
-Earmarked transfers from
republican budget
Spent since the start of the
year – total
including (by specifics)
Special account balance at the
end of the reporting period
including – foreign currency
- tenge special account
Loan #
2
Lin
e
cod
e
3
Revenue
or
specifics
code
4
010
040
Budget program administrator __________________
Periodicity: annual, quarterly __________________
Measurement unit: thousand tenge
Amount
Total
5
Line/spec.
code
Relevant grants
1
2
3
On
spec.
accou
nt
Off-shore
payments
7
Balance for the start of the year
- total
010
6
Х
including cash balance
011
Current year receipt
020
Total
040
Expenditures – total
050
Х
041
042
043
044
045
050
Name
including by specifics
Х
170
Х
171
172
Х
Х
Balance at the end of reporting period
170
including cash balance
171
Verification of Accounting Data
Budget
accounting data
on external loans
of Treasury
Committee
Budget
accounting data
on external loans
of republican
budget program
administrators
Republican
budget execution
data
Thank you for your attention!
Contacts:
a_dost @ minfin.kz
[email protected]