Accounts Chamber
KYRGYZSTAN

Independence

The Accounts Chamber of Kyrgyzstan (SAI Kyrgyzstan) is established under the constitution. Head of State appoints the Head of  the SAI . The Head of the SAI can be removed by the Presidential Decree, in case of unsatisfactory fulfillment of his duties, breaches of legislation and abuse of power, on his own initiative or application of one of the chambers of the Jogorku of the Kyrgyzstan. The Head of SAI  requires specific qualifications, as prescribed in the law on the accounts chamber of the Kyrgyzstan. There is a fixed tenure of 5 years but there is no prescribed age limit.

The various conditions of service of the Head of the SAI to secure independence are:

• Special procedure for appointment
• Special procedure for removal

The relationship with other branches of the government are as follows

• The SAI annually reports to the president/ Legislative assembly and the assembly of the public representatives on
    its activities 
• The Ministry of National security, The Ministry of Internal affairs, The National Bank, the control-inspection
    department & the state custom Inspection under the Ministry of Finance, and other state controlled organs are
    obliged to render assistance to the Accounts chamber
• After the audit all materials with revealed breaches are reported to the Investigation agencies. Information on taken measures must be presented to the accounts chamber without delay by Investigating agencies.
• If orders of the SAI are not fulfilled it can stop all forms of financial, account and payment operations of the audited Institutions and Organisations
• The accounts chamber's order can be appealed to the court

Budget for SAI is outlined in the republican budget by a separate line and can come in deductions from the amount of recovered and compensated damage to the budget up to 10%. There is a mechanism to secure accountability  of the SAI.

Jurisdiction

The SAI's jurisdiction extends to following and there are no limitations imposed on this jurisdiction.

• Federal Government
• Provincial and local governments
• Bodies not owned but substantially funded by the government
• Banks whose capital forms part of the Federal, Provincial and local government and autonomous bodies substantially funded by the government
• Entities owned or controlled by Federal, Provincial and local governments and other entities owned or controlled by such government owned or controlled entities

• State joint ventures with foreign agencies and other enterprises.

• Audit of Receipt of the Government.

• Concession granted by the Government to agencies for exploitation of public resources

• Aid or grants provided by Foreign Government. 

• Audit of Government investments made in other countries as mi

SAI also has Jurisdiction over fallowing 

• Public utility/Agencies providing public services even if they are privately funded and managed.
• Regulatory bodies (e.g. Privatisation, Environment, Pollution Control, Telecom etc.)
• Agencies to whom performance and delivery of public services is contracted out.

Powers

The SAI does not have powers of requisitioning all records of the auditee departments/organisations to discharge its mandate. The SAI does not have powers to enforce or initiate enforcement action to secure access to needed records which are not produced. The SAI has power to seal, search and seize documents and other related items considered necessary for audit and inspection. It  has power to seek testimonials of the persons concerned. It can not seek co-operation of persons other than agencies subject to audit and Inspection.

The SAI has powers to instruct government investigating agencies to perform activities considered necessary. It can not re-examine its own adjudication. The SAI has powers to decide on claims of interested persons in connection with official actions, duties and behaviour of persons subject to audit and inspection. The SAI has the authority to dispense with, in whole or part, the audit of Federal, Provincial and local Governments accounts and other related matters.

The SAI has powers to take punitive action and/or impose surcharges. The SAI has the powers to access the computer systems of the auditees and download and use electronic data either in site or off site. The SAI has powers to review the development of computer systems by the auditees and suggest controls. The SAI has a role in the appointment and supervision of the other external auditors engaged by auditees for meeting the statutory requirements and it can regulate and supervise their work ,when engaged.

Audit Procedures and Functions

The SAI prescribes Financial and Compliance Audits in its scope of Audit. The methodology/ procedure for each audit conducted is shown in 40 instructions of Accounts chamber. The SAI does not discharge judicial functions. The SAI is not required to follow specific standards, practices and guidelines in conducting audit and reporting. It has its own instructions of Accounts chamber.

The SAI can consult and/or collaborate with other countries/SAIs and international organisations on matters relating to audit eg. INTOSAI, ASOSAI, ECOSAI, SAI of Russia, Kazakhstan, Ukraine, Azerbaijan and other states of commonwealth of Independency states. The SAI can engage consultants and/or obtain professional services in conducting audit. The SAI does not report on the acts that infringe upon State economic interests like mass embezzlements of state assets etc, it can only ascertain facts. The SAI  requires that any fraud or embezzlement be reported by the auditees mandatorly. It can oversee the ultimate disposal of such cases. The audit reports are discussed in the meetings of the Accounts chamber. It has a role on the disposal or the action taken on their findings. It does not presents an interim report.

The SAI can share audit reports with public and media after formal reporting. It does not have powers to amend accounts in case of financial statements. SAI does not has an advisory role.

Organisation

The SAI is constituted as a collegial multi member body (Chamber). It is a Chamber of Audit. The Accounts Chamber consists of the chairman and 12 auditors. The accounts chamber has its own working staff. Working staff of the accounts chamber are responsible for SAI's day to day functioning.

The main functions of the Accounts Chamber are:

• Organization and realization of control over performance of the republican and local budgets and also non-budget revenues; control over effectiveness and expediency of the state means expenditure and use of the state property;
• Control over legality and timeliness of motion of the republican budget means and non- budget funds in the National Bank of the Kyrgyzstan, representative banks and other financial-credit institutions of the Kyrgyzstan;
• Control over maintenance costs of the organs of the state power of the Kyrgyzstan; control over timely and complete financing of the state social programs, use of means allocated from the republican budget on liquidation of the results of natural disasters and distribution of humane aid;
• Control over use of gold reserves of the Government of the Kyrgyzstan and National bank of the Kyrgyzstan;
• Control over legal and rational conduct of privatizational process of the state property in the Kyrgyzstan;
• Control over use of credit resources and foreign investments from other countries and international financial organizations;
• Control over use of state means used for financing measures of urgent character; audit and evaluation of organs which carry out functions of financial control;
• Analysis of revealed deviations from indicators of the republican budget and non-budget funds; submission of proposals for their liquidation and also perfection of the budget process.

There are three regional inspections of the Accounts Chamber in three main regions of the republic. All of this are accountable for central office. It is empowered to engage external auditors/ agencies/ consultants as required.

Administrative functions and miscellaneous

The SAI can not expend resources budgeted independently. Budget for SAI is outlined in the republican budget by a separate line and can come in deductions from the amount of recovered and compensated damage to the budget up to 10%. It does not has full independence in forming its workplan. The activity, Structure and size of the staff is approved by the President on application of the Chairman of The Accounts Chamber. The SAI is not subject to an independent audit. The SAI is  required to submit a report on its activities to the President and to the Parliament.