2004年-世界发展银行全球_Uzbekistan___Country_Financial_Accountability_Assessment_66页_4mb

Uzbekistan Country Financial Accountability Assessment (CFAA) Summary

Core Content

This report, prepared by the World Bank in October 2004, provides an assessment of Uzbekistan's public financial management (PFM) systems and outlines recommendations for improving financial accountability, transparency, and efficiency. It is the first CFAA in Uzbekistan and is designed to support the Government's ongoing reforms, particularly in the context of a drastic fiscal adjustment and a focus on improving public spending.

Key Information

• Currency: Uzbekistan Soum (US$ 1 = 1,015.33 Soum as of 06/10/2004)
• Government Fiscal Year: January 1 - December 31
• Report Objectives:
  1. Help the government strengthen public sector financial accountability arrangements
  2. Identify and document significant fiduciary risks in the PFM system
  3. Document existing reforms and provide additional recommendations for capacity building

Main Areas of Analysis

1. Public Sector Budget Management

• Current Issues:
  • Policy risk: Policies are not consistently implemented through the budget.
  • Budget and financial management risk: Funds are not spent according to intended use.
  • Budget fragmentation: Extra-budgetary funds account for 25% of state budget expenditure and are not subject to the same scrutiny.
  • Limited budget comprehensiveness and poor budget documentation.
• Recommendations:
  • No new extra-budgetary funds should be created.
  • Existing funds should be subject to the same rules as the main budget.
  • Merge recurrent and investment budgeting processes.
  • Improve transparency by publishing budget documentation, including assumptions and policy lines.
  • Introduce a treasury system to enhance budget execution and liquidity management.

2. Extra-Budgetary Funds

• Impact:
  • Budget and cash management issues: Extra-budgetary funds are not subject to the same oversight as the main budget.
  • Governance issues: These funds lack transparency and accountability.
• Recommendations:
  • Limit extra-budgetary funds to paid services only.
  • Amend Decree 414 to prevent budget surpluses.
  • Incorporate extra-budgetary funds into the main budget where possible.

3. Public Sector Accounting and Fiscal Reporting

• Current Issues:
  • Accounting systems are based on Soviet-era practices.
  • There is a lack of comprehensive financial reporting and transparency.
• Recommendations:
  • Begin training in public sector accounting immediately.
  • Focus on cash basis accounting in the short term, with accruals as a long-term goal.
  • Develop a phased approach to implementing International Public Sector Accounting Standards (IPSAS).

4. Revenue Administration

• Current Issues:
  • Revenue collection is inefficient and lacks transparency.
  • Tax policy is complex and may discourage compliance.
  • Commercial banks are acting as de facto tax enforcement agencies.
• Recommendations:
  • Implement proposed amendments to the Tax Code to restrict access to taxpayers' banking information.
  • Improve the quality of reporting between revenue agencies and the Ministry of Economy (MOE).

5. Internal Controls and Internal Audit

• Current Issues:
  • Internal control and audit concepts are not well understood.
  • The current system is fragmented and lacks effective monitoring.
• Recommendations:
  • Reform the Control and Revision Unit (CRU) to support a modern internal audit function.
  • Integrate internal control reforms with ongoing treasury system improvements.
  • Build capacity in the finance function across all government areas.

6. External Audit

• Current Issues:
  • Limited progress in establishing an independent external audit function.
  • The Chamber of Accounts (COA) is a small body within the President's Office.
• Recommendations:
  • Establish a legislative base for the audit function.
  • Increase transparency and disclosure of audit work.
  • Provide additional resources to the COA.
  • Enlist international support for its development.
  • Long-term goal: Provide professional opinions on the government's annual budget report based on international accounting standards.

7. Public Enterprises

• Current Issues:
  • Lack of separation between government and business.
  • Poor governance and limited transparency in financial reporting.
• Recommendations:
  • Reform the regulatory framework to separate policy and regulatory functions.
  • Privatize commercial operations to remove access to state powers.
  • Improve transparency by introducing publicly available financial reports based on international standards.

8. Capacity Building

• Current Situation:
  • Many finance officers lack formal training since the 1980s.
  • Limited access to computers and basic guidelines.
  • International developments in budgeting, accounting, and auditing are largely new to technical finance specialists.
• Recommendations:
  • Provide training in all public sector institutions, with a focus on regional and budgetary institutions.
  • Introduce new techniques into academic programs.
  • Leverage the country's high literacy and numeracy rates for reform implementation.

Development Action Matrix

The report outlines a series of proposed actions, categorized by implementation timing:

• Short Term (within one year):

  1. Improve budget transparency by publishing budget and policy documentation.
  2. Restrict extra-budgetary funds to paid services only.
  3. Implement amendment to Tax Code to limit access to banking information.
  4. Conduct pilot audits of two public enterprises' financial statements using international standards and publish results.

• Medium Term (one to three years):

  • Explore external support for internal and external audit reforms.
  • Continue capacity building in budgeting, accounting, and auditing.

• Long Term (over three years):

  • Implement accrual-based accounting and full IPSAS compliance.
  • Develop a comprehensive, independent external audit function.
  • Establish a professional internal audit department within the government.

Conclusion

The CFAA emphasizes the need for a comprehensive, transparent, and accountable public financial management system. It recognizes that reforms must be supported by institutional, economic, and political changes. The report serves as a forward-looking guide, focusing on practical and sequenced improvements, while acknowledging the capacity constraints in Uzbekistan. It also highlights the importance of international standards and codes in shaping the reform agenda.