1. Evolution of Expenditure Controls
Қазақстан Республикасы Қаржы министрлігінің Қазынашылық комитеті
Treasury Committee of the Ministry of Finance of the Republic of Kazakhstan
Evolution of Expenditure Controls
Over Budget Execution and Public Procurement
Budapest 2019

2. 1. Central controls over budget appropriations
- Adopted budget breakdown:
As per the Budget Code of RK, the law on republican budget consists of:
Revenues: by categories, classes, subclasses of revenue classification;
Expenditures: by functional groups, program administrators and budget programs of functional classification.
An annual consolidated revenue and financing plan is drafted broken down by republican budget obligations and payments (monthly breakdown of budget revenues and expenditures).
In-year breakdown of budget appropriations for budget organizations:
Monthly breakdown of budget appropriations.
- Control over budgets of government agencies:
The Treasury performs operational control through its Treasury Integrated Information System (TIIS) when drafting and revising financing plans, registering GPS, effecting payments for government agencies as per budget programs, subprograms and specific Unified Budget Code to check compliance with plan codes, between financing plans of subordinate budgets and upper-level budget plans and earmarked transfers and credits remitted from/to the republican budget, check availability of funds, when effecting payments by government agencies per budget programs, subprograms and specific Unified Budget Code items.
- Flexibility of government agencies vis-à-vis earmarked appropriations:
Revision of the republican budget – based on proposals of the Government of the RK, and (or) parliament, adjustment in accordance with the legislation (reviewed by republican budget commission);
Revision of local budgets – based on proposals of local executive authorities and (or) maslikhat deputies (reviewed by the budget committee).
Central agency in charge of budget planning:
The republican budget committee on the draft revised budget prepares a draft law on additions and amendments within 10 business days and submits it to the government;
Once the law is adopted by parliament it is submitted to the President. 

3. 1. Central Controls Over Budget Appropriations
- Control over appropriations:
The Treasury performs operational TIIS control of:
Individual financing plan;
Registered civil law transactions;
Unified Budget Classification (UBC);
Full and complete filling out of forms as per the requirements of the budget legislation of the Republic of Kazakhstan.
- Controls and approaches to appropriations for budget organizations:
As per the Budget Code of RK (Article 84) budget execution is based on:
Consolidated plan for financing of obligations;
Consolidated revenues and expenditures;
Financing plan for budget program administrators;
Individual government agency financing plan.
Note:
- The Treasury Committee drafts and adopts:
A consolidated financing plan– 10 days after the adoption of the Government Resolution of the government of KR on implementation of the law on the republican budget
Notes on revising monthly expenditure limits on budget programs as per the applications of government agencies,within the limits of budget program amounts
government agencies independently revise adopted plans (for obligations and payments, individual government agency financing plans) per economic classification of expenditures and subprograms of budget programs.

4. Integrated Treasury Information System
2. Payment Controls
- Public procurement controls
Committee for Public Procurement
Treasury Committee
E-procurement
E-treasury
Integrated Treasury Information System
Public procurement is carried out:
Through e-procurement webpage;
Operated by Ministry of Finance;
Control over expenditure thresholds is carried out automatically through the webpage;
Contract is signed with client and supplier’s e-signature;
Signed contracts enter into force once registered by the Treasury (article 96 of the Budget Code) i.e. obligations are assumed once the contract is registered
The Treasury carries out:
Registration of contracts based an integrated application submitted by the client through the web (cash is committed at registration);
Payments against registered obligations (software checks for planned assignments, contract value and consistency with budget classification);
Treasury controls contracts from registration to completion (making sure obligations are within limits and payments are valid as per e-invoices):
e-invoices are generated in the e-invoice system which is also integrated with e-treasury.
Payments against contacts are effected as per contractual terms and conditions in compliance with certification documents via treasury information systems.
Special public procurement cases:
1) For law enforcement and national security purposes
2) State secret and/or confidential information defined by the government.
Rules for public procurement for special needs is set forth by the government.
Note:
Treasury integrated information system – receipt and allocation of taxes and other payments to the budget, budget expenditures, effective financial resource management by the government and local authorities and transparent government budget execution.
Treasury client information system- automation of receipt and processing of document.

5. 2. Expenditure Controls During Payments
ex ante treasury payment controls:
At the level of government entities the Treasury-Client information system generates error messages:
e.g.:
The payment should have “current” status, the period should be closed, and the date should not exceed 10 business days, invoice number is not consistent with the format, the value of the attached file МТ102 is not consistent with the invoice, etc..;
The invoice fields, supplier references, administrator, program, subprogram and relevant data must be filled out in consistency with the reference book to avoid errors;
In case of liquidity shortage.
assuming obligations when signing the contract:
Assumed obligations are captured in Form 4-12 in the TIIS instantly. The data are uploaded to the Treasury-Client information system one hour after confirmation.
Controls over obligations:
Approval
Funds are committed (4-12 ф.)
Government agencies
Contact (e-procurement)
Treasury
Checking in TIIS
Authorization
Rejection
Justified rejection of application
To the government agency

6. Automation: treasury approach to expenditures в;
3. Initiatives to revise approaches to reallocating expenditures and expenditure controls
Automation: treasury approach to expenditures в;
link between treasury systems and procurement:
Integration of treasury systems (TIIS Treasury-Client Information System (and e-procurement).
Note: a policy on inter-operability between e-procurement and Treasury-Client Information System

7. 3. Initiatives to revise approaches to reallocating expenditures and expenditure controls
automation of treasury expenditures controls:
As per the legislation of RK, treasury is empowered with cash execution of the budget.
The Treasury has the powers to perform payments and current controls which are performed at the moment of execution of documents submitted by government agencies. Based on daily consolidated data, the Treasury accumulates information on all transactions.
Software is designed in compliance with the legal and regulatory framework.
Is the Treasury measuring its performance in terms of its role during the payments stage?
The Treasury is highly effective in performing payments as all the budget cash flows go through the treasury information system with proper and prompt treasury controls. On average it takes 8 minutes to process one document.

8. Thank you!