Kyrgyz Republic Ministry of Finance Central Treasury Expenditure Controls During Budget Execution ____________________________________________________________________________TTCOP Plenary Session TCOP PEMPAL Plenary, Budapest, Hungary, June 5 -7, 2019 (Overall small group presentation) Roza Chokolova

Kyrgyz Republic Law Bishkek, December 26, 2018 № 112 On the Kyrgyz Republic Republican Budget for 2019 and Budget Forecast for 2020-2021 The underlying parameters for the 2019-2021 budget forecast are: Key fiscal policy guidelines of the Kyrgyz Republic for 2019-2021 adopted by Government Resolution № 397 of August 23, 2018 The economic forecast for 2019-2021 is based on: Analysis of the 2015-2017 development trends, Kyrgyz Republic medium-term socio- economic development forecast adopted by Government Resolution № 397 of August 23, 2018

Implementation would: How detailed is the adopted central budget? by economic classification at a more aggregated level of expenditures (aggregation to 3 digits, previously – to 4 digits) by agency classification by functional classification by program classification Is there a (monthly, quarterly, other) breakdown of appropriations per spending units within the year? As of 2019, an annual monthly cash plan scenario is developed which is adjusted monthly based on the previous periods’ outturn (prior to 2019 there was a quarterly breakdown) Implementation would: Enable more efficient and effective use of appropriations within the fiscal year by ministries Save time and resources by reducing the number of notifications for adjusting allotments and drafting corresponding documents Enable officers in change of sector units to better analyze and plan the budget Cut down on red tape, mitigate corruption risks among budget agents and human factor impact at headquarters Reinforce the authority of Treasury in cash planning and control

How flexible are budget organizations in revising budget appropriations? Budget Code Article 109. In the course of budget execution chief spending units (spending units) may reallocate resources for the chief spending unit (spending unit, beneficiary) within the limit of budget appropriations between economic classification of expenditures. The total volume of reallocated resources within the fiscal year may not exceed 5% of total expenditures per each chief spending unit (spending unit, beneficiary) individually. In the course of budget execution chief spending units (spending units, beneficiaries) may not reallocate resources between budget programs. Are treasury systems aligned with public procurement systems? Are there plans to develop them? Automated system «IS:Kazna. Budget (Central Treasury) and public procurement portal (Department of Public Procurement and Ministry of Finance of the Kyrgyz Republic) are integrated and capture registered contracts and cost assignments

Law of Kyrgyz Republic Bishkek, № 72 April 3, 2015 On Public Procurement The procuring agency engages in electronic procurement, inter alia, by using an e-catalog in a manner set forth by the Government of Kyrgyz Republic. Within 5 (five) days after the contract is signed by both parties, the procuring agency shall publish information on the contract on the web portal. Policy on e-procurement (adopted by Executive Order of Ministry of Finance of Kyrgyz Republic N 175-п of October 14, 2015) This Policy governs e-public procurement in Kyrgyz Republic. E-public procurement is used to purchase goods, works and services through the procurement system. Arrangements for e-procurement of goods, works and services requires registration of procuring agencies and suppliers through the web portal

Are appropriations controlled manually or with FMIS? At each stage – starting with the uploading of the payment order by budget organizations to the final step – FMIS checks availability of budget appropriations, including commitments for registered contracts through contract registration on the e-public procurement portal (zakupki.gov.kg). No authority (Ministry/Treasury/ Procurement Department) is allowed to sign contracts in excess of expenditure thresholds What level of the Chart of Accounts (budget classification) effects control over budgets of budget organizations? Reporting is provided at the level of 4 digits of the economic classification (section, category, group, item) Budget classification of the Kyrgyz Republic (Resolution of the Government of Kyrgyz Republic of January 10 , 2012 № 7 is updated annually

Does the Treasury measure its performance in terms of its role in processing payments, e.g. how long it takes to approve each stage of the payment upon receipt of the payment request? Payment requests signed with e-signatures are submitted electronically by budget organizations; in case appropriations are missing, the automatic system does not generate a payment request 9:00 - 11:30 generation of a consolidated payment request though the Interbank Clearing System 9:00 - 16:30 generation of a consolidated request through RTGS (Real Time Gross Settlements System) (budget organizations territorial divisions expenditure division of the Central Treasury Central Treasury bank services division final STA netting at the National Bank of Kyrgyz Republic

Thank you!