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Federal budget audit

The complex of control, expert and analytical activities carried out in the framework of preliminary, operational and follow-up control constitute a unified system of control of the Accounts Chamber over forming and executing the federal budget and the budgets of federal extra-budgetary funds of the Russian Federation. It is substantially complemented by thematic audits and expert and analytical activities carried out in accordance with the plan of work of the Accounts Chamber, upon the instructions of the chambers of the Federal Assembly of the Russian Federation and the inquiries of the members of the Federation Council and the deputies of the State Duma.

The preliminary audit of formation of the federal budget and the budgets of federal extra-budgetary funds of the Russian Federation is carried out in accordance with Article 18 of the Federal Law “On the Accounts Chamber of the Russian Federation”, the SGA 201 government audit standard “Preliminary Audit of Federal Budget Formation”, the SFK 204 financial control standard “Preliminary Control of the Formation of Draft Budgets of Federal Extra-Budgetary Funds”.

The preliminary audit of forming the federal budget and the budgets of federal extra-budgetary funds of the Russian Federation for the next financial year and the planning period represents a range of control, expert and analytical activities geared towards checking and analyzing the validity of the indicators of draft federal budget and the budgets of federal extra-budgetary funds of the Russian Federation for the next financial year and the planning period, the availability and status of regulatory methodological framework underlying their formation. Based on the data obtained, a conclusion is prepared on the federal laws dealing with the federal budget and the budgets of federal extra-budgetary funds of the Russian Federation for the next financial year and the planning period which, subject to consideration and approval by the Collegium of the Accounts Chamber, are submitted to the chambers of the Federal Assembly of the Russian Federation.

The preliminary audit involves:

  • determination of compliance of the federal laws dealing with the federal budget and the budgets of federal extra-budgetary funds of the Russian Federation with applicable legislation;
  • determination of validity and reliability of the indicators contained in the estimates of the federal budget and the budgets of federal extra-budgetary funds of the Russian Federation;
  • appraisal of the estimates of the federal budget and the budgets of federal extra-budgetary funds of the Russian Federation as the instruments of the state’s socio-economic policies, their compliance with the provisions of the Russian President’s addresses and other program documents;
  • appraising the quality of forecasting federal budget revenue, budget spending, investment and debt policies and also the efficiency of inter-budget relations.

The Results of the Work

Operational analysis of execution and control over organization of federal budget execution is carried out in accordance with Article 19 of the Federal Law “On the Accounts Chamber of the Russian Federation” and the provisions of the SGA 202 government audit standard “Operational Analysis of the Execution and Control Over Organization of Federal Budget Execution.”

In the course of executing the federal budget, the Accounts Chamber analyzes the fullness and timeliness of revenue inflow to the federal budget, cash execution of the federal budget against the approved indicators in the federal law on the federal budget, reveals discrepancies and breaches, carries out analysis thereof, initiates proposals on elimination thereof.

The Accounts Chamber provides a quarterly operational report to the chambers of the Federal Assembly of the Russian Federation regarding the progress of federal budget execution, which contains the analysis of data concerning revenues, expenses and sources of funding the federal budget deficit. The form of operational report is approved by the State Duma in agreement with the Federation Council.

To ensure timely collection and processing of information required for the preparation by the Accounts Chamber of quarterly operational reports on the federal budget execution, appropriate financial accounting is introduced in the Russian Federation that will be mandatory for all federal bodies of executive power and organizations. The decision on specific dates of introduction and forms of such accounting is made by the Government of the Russian Federation on recommendation of the Accounts Chamber.

The findings of the operational analysis of the progress of the federal budget execution and control over the organization of the execution thereof in the current financial year are used in the planning of control, expert and analytical activities.

The operational report is drawn on the findings of operational control over federal budget execution in the current year, audits conducted by the Accounts Chamber, expenditure timetables and primary payment documents for the execution of transactions with budget funds and also the findings of reports of the Finance Ministry of Russia, the Federal Treasury, main administrators of federal budget resources and other budget process actors vested with budgetary powers.

The operational report contains details about the revenue flow into the federal budget, budget spending, sources of funding the budget deficit (surplus), information about the implementation of priority national projects, the flow resources of the Reserve Fund and the National Welfare Fund, budget appropriations from the Investment Fund of the Russian Federation, budget allocations for the formation of property of state-owned corporations. An executive summary with graphs, diagrams, schemes, and figures illustrative of both the budget execution progress and the macroeconomic situation on each reporting date is enclosed with the report.

As part of operational control the Accounts Chamber prepares conclusions in respect of bills amending the federal law about the federal budget for a given year and the planning period and also other budget legislation.


The on-going reports

Follow-up control over execution of the federal budget and budgets of federal extra-budgetary funds of the Russian Federation is effected pursuant to Article 264/9 of the Budgetary Code of the Russian Federation, Article 20 of the Federal Law "On the Accounts Chamber of the Russian Federation" and on the basis of the external public audit (control) standard SGA 203 "Follow up control of the federal budget management" and the external public audit (control) standard SGA 205 "Follow up control of the management of budgets of the public extra-budgetary funds".

Follow up control is a set of control and expert and analytical measures for checking of performance of the federal law on the federal budget and budgets of federal extra-budgetary funds of the Russian Federation in the reporting financial year. The Accounts Chamber shall carry out external audit of annual budgetary reporting of chief administrators of federal budget funds and prepare opinions on each chief administrator of federal budget funds. Opinions on each chief administrator of federal budget funds shall be submitted to the State Duma and the Federation Council.

The Accounts Chamber shall carry out external audit of the annual report on federal budget execution and prepare its opinion on the annual report on federal budget execution. The opinion on the annual report on federal budget execution shall be submitted to the State Duma and the Federation Council.

The Accounts Chamber shall check reports on execution of budgets of federal extra-budgetary funds of the Russian Federation and prepare opinions on reports on budgets execution of federal extra-budgetary funds of the Russian Federation. Decisions on reports on budget execution of federal extra-budgetary funds of the Russian Federation shall be submitted to the State Duma and the Federation Council, and also to the Government of the Russian Federation.


The Results of the Work

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