2003年-世界发展银行全球_Russian_Federation___Country_Financial_Accountability_Assessment_78页_6mb

Summary of Russian Federation Country Financial Accountability Assessment (Report No. 26839-RU)

Core Content

This report presents a comprehensive assessment of the Russian Federation's public financial accountability framework, focusing on federal-level financial management systems. It evaluates the country's budgeting, accounting, financial reporting, internal controls, and auditing processes, and provides recommendations for improving fiscal governance and accountability.

Main Purpose

The primary purpose of the Country Financial Accountability Assessment (CFAA) is to evaluate the strength of the public financial accountability framework and to identify risks associated with the use of public and international funds. It supports the World Bank in managing fiduciary risks and promotes dialogue with the government and development partners to enhance financial management capacity.

Key Areas Covered

I. Country Context

• State Structure: Russia is a federative democracy with a presidential system, a bicameral legislature, and a strong executive. The judiciary is independent, and a multi-party system is in place.
• Administrative Structure: The country has three levels of government: federal, regional (Subjects), and local (rayons). Effective fiscal management at the national level is complex due to regional diversity.
• Economic Transition: The restoration of a strong state, with reduced influence of business oligarchy, is seen as essential for long-term stability and is supported by public opinion.
• Economic Prospects: Russia's macroeconomic situation is positive due to economic growth, improved tax collection, high oil prices, and effective exchange rate policies.

II. Public Sector Budget Management

• Progress in 2001-2002:
  • Central government reduced the use of offsets.
  • Budget management improved with surplus in 2002.
  • Expenditure control and tracking of funds from the Federal Treasury were strengthened.
• Challenges:
  • Budget preparation was top-down and not based on detailed program analysis.
  • Sectoral departments had inconsistent participation in budget formulation and execution.
  • Budget classifications were not fully aligned with Government Finance Statistics (GFS).
• Recommendations:
  • Strengthen the strategy phase of budget preparation to integrate macroeconomic constraints and sectoral targets.
  • Implement a uniform, simplified budget coding structure.
  • Encourage a more participatory approach to budget planning.
  • Introduce accounting principles for entities with extra-budgetary funds.
  • Develop an institutional development program for the Ministry of Finance (MOF).
  • Amend the Chart of Accounts (COA) to reflect budget classification.
  • Expand commitment control to cover all economic expenditure classifications.
  • Replace weekly cash limits with monthly funding of established commitments.

III. Treasury System

• Soviet Legacy: The Central Bank of Russia (CBR) historically functioned as the de facto treasury.
• Modernization Efforts:
  • The Federal Treasury (FT) was established in 1992 and has been working on modernizing the system.
  • The Treasury Single Account (TSA) was introduced in 2000, aiming to centralize budget revenues and expenditures.
• Progress:
  • The TSA was adopted as part of a broader strategy for treasury development.
  • The first phase of the Treasury Development Project was completed in 2002, including the inclusion of the Ministry of Defense (MOD), customs revenues, extra-budgetary funds, and most off-budget accounts.
• Recommendations:
  • Immediate implementation of an improved expenditure monitoring system.
  • Develop a more effective cash management system.
  • Introduce a sound accounting system for government operations.

IV. Public Sector Accounting and Financial Reporting

• Accounting Practices:
  • Some Soviet-era practices remain.
  • Government accounting relies heavily on the banking system.
  • The Budget Department Accounting Unit reconciles financial records with the banking system.
• Reporting:
  • The MOF publishes aggregated budget information on a monthly and year-to-date basis.
  • Financial statements on federal budget execution are planned for quarterly and annual publication.
  • The new Budget Code mandates recording of all payment stages, enhancing transparency.
• Coverage:
  • The Federal Treasury has expanded its coverage of expenditures, improving the compilation of government finance statistics.
  • Data quality has improved, though not fully integrated with the Federal Treasury accounts.

V. Internal Controls and Internal Auditing

• Government Ministries: Internal controls are weak, and audit functions are not well developed.
• Federal Treasury: The FT has made progress in establishing internal control mechanisms.
• MOF's Control and Revision Department: This department has been working on improving internal control.
• Recommendations:
  • Develop a robust internal audit function.
  • Enhance internal controls across all government ministries.
  • Improve coordination between the MOF and the Federal Treasury.

VI. External Audit

• Legal and Institutional Framework: External audit is part of the public financial accountability framework.
• Scope and Responsibilities: External auditors are responsible for evaluating the accuracy and reliability of financial statements.
• Activities and Procedures: Audit procedures are not fully aligned with international standards.
• Dissemination of Audit Findings: Findings are not consistently shared with the public.
• Staffing and Standards: Audit staffing is limited, and audit standards need to be aligned with international norms.
• Recommendations:
  • Strengthen the legal and institutional framework for external audit.
  • Ensure audit findings are disseminated effectively.
  • Align audit standards with international best practices.

VII. Portfolio Fiduciary Considerations

• Recommendations:
  • The CFAA recommendations should be integrated into the broader Expenditure Efficiency program.
  • Fiduciary risks must be managed through institutional and procedural reforms.
  • The implementation of the TSA is critical for improving fiscal discipline.

Conclusion

The Russian Federation has made significant progress in transitioning from a centrally planned economy to a market-oriented system, particularly in the areas of budget management and treasury operations. However, challenges remain in ensuring the effectiveness of financial accountability mechanisms, including the need for stronger internal controls, improved financial reporting, and alignment with international standards. The CFAA and CIFA reports are to be examined jointly by the authorities and development partners, with a focus on institutional development, capacity building, and the integration of modern financial management systems.