An audit conducted by the Accounts Chamber of the Kyrgyz Republic revealed violations and discrepancies in the Ministry of Finance and its subordinate institutions totaling 133,321.8 thousand soms as a result of the budget execution review for the year 2024.
During the audit, which covered all significant stages of the budget process, numerous discrepancies with regulations were identified. At the stage of budget preparation and the drafting of relevant documents, violations were recorded amounting to 2,411.5 thousand soms, which affects the reliability of budget data.
In the area of tariff formation and pricing, violations totaling 1,925.0 thousand soms were discovered, arising from the lack of necessary legal foundations or non-compliance with established norms.
Particular attention was paid to cases of misappropriation of budget funds. In this area, the amount reached 6,891.5 thousand soms, of which 5,816.7 thousand soms were spent bypassing the Single Treasury Account, increasing the risks of opacity in the management of public finances.
Additionally, in the area of capital investments, instances of inflated costs and volumes of work, as well as incomplete contract execution, were identified, amounting to 17,570.6 thousand soms.
Significant exceedances of approved budget indicators were also found. The total amount of violations was 56,290.9 thousand soms, of which 51,604.3 thousand soms pertained to excessive reserves and calculations for material assets.
In the area of safeguarding state property, violations totaling 3,245.4 thousand soms were identified, including the absence of accounting for certain assets.
Systemic errors in accounting amounted to 43,736.6 thousand soms, including distortions in reporting of 24,900.3 thousand and unjustified advance payments of 18,662.8 thousand soms.
Violations in the process of public procurement were also identified, amounting to 1,250.3 thousand soms, including non-compliance with requirements for banking support of contracts.
As a result of the audit, the Accounts Chamber issued recommendations to address the identified violations and strengthen financial discipline. The question of holding accountable the officials responsible for these discrepancies was also proposed. The audit materials have been forwarded to the relevant authorities.
The Accounts Chamber will continue to monitor the implementation of its directives and assess the effectiveness of the measures taken, emphasizing the importance of timely rectification of violations for the rational and targeted expenditure of budget funds.
