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On January 16, 2015 the Accounting Chamber in collaboration with the Development Policy Institute held a workshop in order to discuss the format and structure of the future guidelines for the conduct of audit of local budgets. Decision of developing such guidelines was adopted by the Accounting Chamber at the beginning of 2015.
As noted by Elmira Ibraimova, the chairman of the Accounting Chamber, fiscal decentralization policy pursued by the Government of the Kyrgyz Republic, has significantly changed the principles of the budget process at the local level.
At the same time, independence and responsibility of local governments increased and introduced medium-term planning; measures were taken to transfer the administration of certain taxes to the local level, made concrete steps towards improving the instruments of budget accounting. However, the efficiency of budgetary resources usage at the local level remains low. In order to improve the efficiency of the budget process it is necessary to change the system of external audit and use updated methodological approaches. Inefficiency of public external audit was also accented by the representatives of Accounting Chamber regional divisions. They also mentioned about the consequences as foregone benefits from revenue shortfalls in local budgets.
The DPI experts Asylbek Chekirov and Nazira Tiuliundieva proposed their comments on the structure of a guideline. They made an accent on that fact that as a part of the new audit system at the local level should be auditing stages of the budget process, as well as issues of accountability and transparency of local self-governments.
In the afternoon, the participants worked in groups by the results of which they presented the future structure of guidelines, which would be put in its basis. The seminar was also attended by representatives of the Ministry of Finance and independent experts.