Main violations of 2024: inflated costs of work, accounting issues, and misuse of budget funds
The audit conducted by the Accounts Chamber of the Kyrgyz Republic concerned the execution of the budget and the work of the Ministry of Construction, Architecture, and Housing and Communal Services, as well as its subordinate organizations for the period from January 1 to December 31, 2024.
The results of the audit revealed serious shortcomings in financial accounting, violations of budget legislation, and issues in the execution of construction works.
The main problems include:
- errors in accounting for accounts receivable;
- inflated costs and volumes of construction and installation works;
- violations in the procedure for transferring funds to the budget;
- misuse of budget funds;
- conducting operations outside the Unified Treasury Account;
- the presence of unaccounted property;
- violations in capital investments and construction projects;
- unjustified salary payments and other funds to employees.
The total amount of identified financial violations amounted to 1 billion 585 million 293.5 thousand soms.
In particular:
- incomplete and untimely transfer of funds to the budget — 15 million 955.5 thousand soms;
- incomplete transfer of mandatory payments — 4 million 467.3 thousand soms;
- misuse of funds — 85 million soms;
- operations outside the treasury account — 40 million 182.3 thousand soms;
- deficiencies in the implementation of investment projects — 7 million 65.2 thousand soms;
- inflated costs and volumes of work — 166 million 87.5 thousand soms;
- other violations in construction — 23 million 459.2 thousand soms;
- violations related to salaries — 24 million 35.2 thousand soms;
- unaccounted property — 26 million 637.3 thousand soms;
- unjustified advance payments — 7 million 791.7 thousand soms.
The largest amount of violations is related to accounts receivable and amounts to 1 billion 169 million 294.1 thousand soms.
Of this amount, 349,414.9 thousand soms are subject to recovery, of which 122 million 191.3 thousand soms have already been returned, which constitutes 35.0%.
Based on the results of the audit, recommendations and instructions were given to eliminate the identified violations, enhance financial discipline, and improve the efficiency of budget fund usage.
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