Presentation on theme: "Ministry of Finance of the Republic of Kazakhstan Treasury Committee Topic: «Integration of External Financing in the Process of Budget, Accounting and."— Presentation transcript:
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 Government Decree on “The rules of Budget administration and cash services” #220 of 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 expense of external governmental loans at a stage of implementation, 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) The Treasure Committee is serving 45 external governmental loans at the expense of republican budget, including: 12 projects – IBRD 5 projects – ADB 2 projects – JICA (Japan) 1 project – IDB 1 project – EBRD 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) Goods, work and services supplier Treasury Committee Budget Program Administrator Payment Integrated information system of treasury Summary report Request for payment The request for payment approved by Administrator (for signing) The signed request for payment The report on receipt and expenditure 5 Written extract
Chart of Special Account Disbursement Budget Program Administrator Special account in Kazakhstan commercial bank Goods, work and services supplier Treasury Committee Integrated information system of treasury Payment Summary report Expenditures reportWritten extract Request for payment Creditor Detailed monthly report 6
Chart of Redemption and Servicing Procedure for Government and State Guaranteed Debt of the Republic of Kazakhstan from the Republican Budget JSC “Central securities depositary institution” Creditor Treasury Committee Treasury department of Astana city Kazakhstan National Bank Correspondent bank of creditor 1 Invoice for payment of external loans 2 Invoice for payment of internal loans Payments of Kazakhstan external loans and services in foreign currency Request for converting foreign currency and tenge coverage of foreign currency procurement Invoice for payment in tenge and request for converting foreign currency Daily extract on expenditures Department of state loans of Kazakhstan Ministry of Finance Actual data on payments 8 5 Payments on redemption and service of internal debt of Kazakhstan Integrated information system of treasury
Treasury Committee Department of Republican Budget Reporting Head of Department Head expert (6 units) Expert (2 units) Functions Republican budget accounting 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, The rules of the budget accounting #495of November 16, 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 «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 Information on external loans disbursement in the framework of investment projects # Institution, program and subprogram code Office codeName of institution Donor Budget classification code Start of the year balance Loan receipt Loan disbursementEnd of reporting period balance А Total Budget classification code Adjusted budget for the reporting financial year Reporting year financing summary plan DisbursementThe balance of unused funds TotalOn spec. accountOn 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 Total
Accounting in Public Institutions Legislative Environment: Budget Code of the Republic of Kazakhstan of December 4, Guidelines on accounting in public institutions #30 of and Rules of budget reporting by public institutions and budget program administrators #89 of 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 : «Plans for liabilities on projects funded by external loans and relevant grants» «Special account of budget investment project on external loans» «Liabilities settlement at the account of external loans» «Disbursement on projects funded by external loans» «Project funding by external loans» «External loans»
Reporting on External Loans in Public Institutions Accounting Report on external loans Functional group_____________________ Budget program administrator__________________ Name of public institution, implementing investment project_________________ Budget program_______________________________ Subprogram_____________________________________ Periodicity: annual, quarterly__________________ Measurement unit: thousand tenge Report on grants Budget program administrator __________________ Periodicity: annual, quarterly __________________ Measurement unit: thousand tenge NameLoan #Lin e cod e Revenue or specifics code Amount TotalOn spec. accou nt Off-shore payments 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 ХХХХ ХХХХХХХХ NameLine/spec. code Relevant grants 123 Balance for the start of the year - total 010 including cash balance011 Current year receipt020 Total040 Expenditures – total050 including by specifics Balance at the end of reporting period170 including cash balance171
Verification of Accounting Data Budget accounting data on external loans of republican budget program administrators Republican budget execution data Budget accounting data on external loans of Treasury Committee
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