International Journal of Government Auditing – January 2012
Azerbaijan
Chamber of Accounts Marks 10th Anniversary
On November 2, 2011, the Chamber of Accounts of the Republic of Azerbaijan celebrated its 10th anniversary in a ceremony held in its administrative building in the capital city of Baku. Participants included representatives from the national Parliament, government ministries and departments, and international organizations. The heads of SAIs from Russia, Turkey, Kazakhstan, Moldova, Ukraine, and Kyrgyzstan also attended.
Heydar Asadov, Chairman of the Chamber, welcomed the participants to the ceremony, during which he and other chamber members and staff were recognized with awards from the government. Mr. Asadov expressed his sincere appreciation to the President of Azerbaijan for his support of the chamber’s activities and provided a brief summary of the chamber’s development over the past 10 years.
The constitution of Azerbaijan authorized the establishment of the Chamber of Accounts. In 1999, the law on the Chamber of Accounts was adopted, and legislation was passed in 2002 that approved the chamber’s internal regulations. In that same year, the chamber became a member of INTOSAI, EUROSAI, ASOSAI, and ECOSAI. The chamber also signed agreements on cooperation and established professional relations with other SAIs. Currently, the chamber is exploring additional cooperative agreements with similar institutions in other countries. Changes and amendments to the chamber’s authorizing legislation in 2008 strengthened its role in the system of public finance control, and the chamber gained expanded powers to carry out its functions and fight financial irregularities.
Heydar Asadov, Chairman of the Chamber of Accounts of Azerbaijan, delivered the opening address at the SAI’s 10th anniversary celebration.
The chamber has concentrated on auditing the preparation and execution of the state budget and extra-budgetary funds in state-owned and private entities, the internal controls and compliance with tax legislation of entities collecting revenue, the effective utilization of state budget and extrabudgetary funds, and the implementation of state investment programs and social services, including science, education, health, and culture. The chamber has also focused on proposing improvements to budgeted programs, eliminating gaps in legislative acts, developing regulatory and methodological documents, and improving legislation. Over the past 2 years, the chamber has sent 50 proposals to the Cabinet of Ministries. The relevant government authorities have supported most of the proposals and taken actions to implement them.
Mr. Asadov stated that the chamber has emphasized postaudits of fiscal operations and had significantly increased its audits and opinions from 41 in 2008 to 83 in 2010. The chamber has not only detected gaps, shortcomings and financial irregularities but also taken action to eliminate them, reinstate improperly spent budget funds, and punish those responsible.
The heads of other SAIs attending the anniversary celebration for the SAI of Azerbaijan gathered for an official photo.
Over the past 3 years, the Chamber of Accounts has succeeded in returning millions of Azerbaijani manats of budget monies to appropriate cash accounts, the State Budget, and the State Social Protection Fund budget. The chamber has prevented excessive, unjustified, and inefficient payments and ensured appropriate use and recording of public monies in accordance with legislation. The total amount of savings is many times more than the chamber’s operating budget.
In response to serious shortcomings identified by its audits, the chamber has also referred four cases to the Prosecutor General’s Office for further investigation, and the Tax Ministry has initiated criminal proceedings against 11 taxpayers with large arrears to the state budget. Relevant authorities have taken administrative measures against hundreds of people responsible for identified shortcomings.
Within the framework of cooperation between the Republic of Azerbaijan and the World Bank, the chamber has drafted a strategic development plan, and a grant has been received to implement it. The World Bank will also carry out a corporate and public sector accountability project.
Mr. Asadov noted that the Chamber of Accounts is currently playing an important role in managing the budget and ensuring transparency and efficiency in the activities of executive authorities. He noted that the chamber is determined to continue its successful actions to develop public auditing in the Republic of Azerbaijan.
For additional information, please contact the Chamber of Accounts:
E-mail: office@ach.gov.az
Web site: www.ach.gov.az