Kyrgyz Republic : Country Financial Accountability Assessment
This report has identified the following major issues in the public sector financial accountability of the Kyrgyz Republic: 1) weak internal controls in several areas such as treasury, budget implementation, procurement, human resources, accounting...
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| Format: | Country Financial Accountability Assessment |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/03/5129558/kyrgyz-republic-country-financial-accountability-assessment http://hdl.handle.net/10986/14573 |
| Summary: | This report has identified the following
major issues in the public sector financial accountability
of the Kyrgyz Republic: 1) weak internal controls in several
areas such as treasury, budget implementation, procurement,
human resources, accounting and reporting as evidenced by
large amounts o f illegal unintended expenditures,
embezzlements and other financial offences reported by the
external auditor; 2) weak cash management as the treasury
cash rations on a day-to-day basis, which creates
uncertainty for budget institutions in implementing their
plans; 3) absence of a legal basis for internal audit in
the public sector; 4) weak capacity in the C A for carrying
out effective financial audits and focusing attention on the
basis of risk assessment; 5) weak capacity in line
ministries to undertake systematic budgeting exercise; 6)
budget monitoring is limited to monitoring of fiscal targets
as little attention is paid to assessment of program
effectiveness; 6) lack of systematic management accounting
and weak capacity in departmental management to absorb and
use management accounting data in decision making and
management processes; 7) weak capacity in the parliamentary
committees to provide effective legislative oversight over
the executive; and 8) inadequate accountability arrangements
for public enterprises. Key Recommendations offered in the
short term involve: 1) strengthening internal controls and
the treasury cash management function; 2) establishing daily
reconciliation of consolidated district treasury payment
requests; 3) reconciling daily revenue collections; and 4)
granting authority to the Chamber of Accounts (CA) to
perform interim post audits. In the long term the Government
should: 1) enact the Law on Public Sector Internal Audit and
build internal audit capacity; 2) establish effective
internal audit structures in the line ministries; 3) prepare
rules and methodology for conducting internal audits in the
public sector; 4) provide extensive training; 5) require
internal auditors to carry out detailed assessments of
internal controls; 6) require the CA to certify the year-end
financial statements of the government; 7) make the
process of appointment of the Chairman of the CA
transparent; 8) discontinue the special means provisions;
and 9) clearly define the accountability of public enterprises. |
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