2007年-世界发展银行全球_Kyrgyz_Republic___Country_Fiduciary_Assessment_Update_2007_68页_4mb

Kyrgyz Republic Country Fiduciary Assessment Update (2007)

Overview

This report, prepared by the World Bank in collaboration with government officials and other donors, assesses the progress made in Public Financial Management (PFM) in the Kyrgyz Republic since the 2002 Country Procurement Assessment Report (CPAR) and the 2003 Country Financial Accountability Assessment (CFAA). It also outlines the remaining reforms and provides a roadmap for implementation.

Core Content

The report focuses on the following key areas:

• PFM Framework and Reforms
• Accounting and Reporting
• Internal Control and Internal Audit
• External Audit
• Public Procurement
• Benchmarking against International Standards

Main Points

1. PFM Reforms and Progress

• The government has made an action plan in June 2006 to reform PFM, which includes procurement, and has shown commitment to working with development partners.
• A new budget classification was introduced in January 2007, aligned with GFS 2001 principles, providing a basis for transparent and consistent reporting.
• A new chart of accounts has been developed with support from DFID and the World Bank, but it has not yet been implemented due to differing opinions among government officials.
• The Ministry of Finance has issued Order No. 109 to improve public sector accounting and reporting.
• A new Division of Methodology of Financial Reporting and Internal Audit has been created within the Ministry of Finance to support the reform process.

2. Internal Control and Internal Audit

• The internal audit function has been introduced in several line ministries, but its effectiveness has not been fully assessed.
• Significant training has been provided under the DFID program to enhance internal audit capabilities.
• A draft audit manual is being used as a basis for training, and joint audits with the Ministry of Health and the Mandatory Health Insurance Fund are ongoing.
• A legal framework for internal control and audit is still lacking, and there is a need for a robust, overarching legal structure to support the function.
• The role of the Ministry of Finance in internal audit needs clarification to avoid duplication with the Chamber of Accounts (COA).

3. External Audit

• The Chamber of Accounts (COA), the supreme audit institution, has not yet adopted international auditing standards for its operations.
• Despite improvements in the legal framework, COA primarily functions as an inspection and control body rather than an independent external audit institution.
• The independence of COA has been compromised by a constitutional amendment in November 2006, which allows the President to appoint and remove the COA chairman without parliamentary approval.
• A twinning program with the UK National Audit Office (NAO) and an IDF grant have been approved to build COA capacity and support its reform.

4. Public Procurement

• The Public Procurement Law (PPL) came into effect in May 2004, establishing a decentralized procurement system and requiring public tenders.
• The State Agency on Public Procurement and Materials Reserve (SAPPMR) is responsible for oversight, but lacks the capacity to perform its duties effectively.
• The National Procurement Training Center (NPTC), supported by the World Bank, has been established, but its sustainability is a concern.
• Implementation of the PPL has been weak, with issues such as poor tender documents, incorrect information, and lack of transparency in the complaint resolution mechanism.
• Procurement planning and contract implementation are not well-organized, leading to inefficiencies and a lack of trust from suppliers.

5. Benchmarking Against International Standards

• The Kyrgyz Republic’s public procurement system was benchmarked against four pillars: legislative and regulatory framework, institutional framework and management capacity, procurement operations and market practices, and integrity and transparency.
• The system scored 2.1 on the legislative and regulatory framework, indicating it meets an acceptable international standard.
• Institutional and management capacity scored 1.0, indicating a need for improvement.
• Procurement operations and market practices scored 0.7, showing a strong need for public-private sector partnerships and stronger internal and external controls.
• Integrity and transparency scored 1.2, highlighting the need for further strengthening.

Key Recommendations

• Implement the new chart of accounts and cash-based IPSAS to improve transparency and comparability in financial reporting.
• Centralize and automate the payroll function to ensure consistent controls and a unified pay scale.
• Clarify the role of the Ministry of Finance in internal audit to avoid duplication with COA.
• Strengthen the National Procurement Training Center and ensure its sustainability through budgetary support.
• Improve procurement planning and contract management to enhance efficiency and transparency.
• Develop a legal framework for internal control and audit to institutionalize accountability.
• Enhance the complaint resolution mechanism and ensure transparency in tender and contract award notices.
• Improve the legal framework for external audit and ensure the independence of the Chamber of Accounts.
• Establish a unified pay scale and a transparent performance management system.
• Improve bidders' trust by ensuring the quality of tender documents and technical specifications.

Conclusion

The report highlights the need for continued donor support and institutional capacity building to strengthen the Kyrgyz Republic’s PFM framework. It provides a foundation for the government to develop a capacity-building plan and for donors to assist in the implementation of remaining reforms. The ultimate goal is to ensure the integrity, transparency, and accountability of public financial management in the country.