International Financial Institutions

1. International Bank for Reconstruction and Development (IBRD)

Development of governmental financial control methodology (within the Regional Fiscal Technical Assistance Project).

This sub-project provided consulting services to Russia’s Ministry of Finance and, where appropriate, the Federal Treasury and the Federal Service of Financial-Budgetary Supervision. FBK developed and/or provided expert reports on analytical and teaching materials on the legal regulation, methodology, organization and implementation of state and municipal financial control in Russia in order to ensure the legitimate, targeted and effective and transparent use of budgetary funds.

Supporting the development of strategies to conduct a comprehensive reform of and provide ongoing assistance in implementing a management system in the socio-economic sphere in Kazan and the Republic of Tatarstan as part of the IBRD project “Enhancing the Investment Attractiveness of Kazan” within the Regional Fiscal Technical Assistance Project.

The purpose of the sub-project was to assist the Government of the Republic of Tatarstan and Kazan city administration to develop a strategy and provide advice for implementing a comprehensive reform of the management system of the socio-economic sphere. FBK provided consultancy services by preparing draft laws and regulations, analytical and methodological materials and software, assessing the quality of public finance management, monitoring progress in implementation and, where necessary, making proposals to adjust the intended measures, organizing seminars, preparing publications and other action to implement the main reform directions. The Minister of Economy of the Republic Tatarstan sent a letter expressing his thanks for the results of the sub-project, which was implemented jointly with PAKK (Russia).

Developing a budget audit methodology at the regional and local levels of the budget system and a methodology for assessing compliance of the policies of the constituent parts and municipalities of the Russian Federation with standard recommendations for restructuring public finance (within the Regional Fiscal Technical Assistance Project).

• The purpose of the sub-project was to provide advisory services to develop programs for the budgetary audit of the constituent parts and municipalities of the Russian Federation, make standard recommendations that contribute to healthier finances and develop model agreements to improve the health of finances of the constituent parts and municipalities of the Russian Federation.

• As part of the sub-project, recommendations were prepared on 
 

•           • applying international experience to budgetary auditing at the sub-national level  
•           • identifying key benchmarks and indicators for assessing the management quality of public finances, which must be used within the audit at the sub-national level  
•           • developing a model and expanded audit program for financial management systems  
•           • developing general recommendations and model agreements to improve the financial health of the constituent parts and municipalities of the Russian Federation  
•           • developing a methodology for assessing compliance of the policy of the constituent parts and municipalities of the Russian Federation with standard recommendations on improving financial health and disseminating the results of operations.

• The sub-project was implemented jointly with the Institute of the Economics of the City (Russia).

Development of a methodology on applying the classification of operations in the government sector (within the Treasury Development Project).

This sub-project was directed at creating conditions for the successful and timely implementation of budget reform by creating conditions for improving the accuracy and transparency of accounting and reporting in the public sector, increasing the qualifications of staff in government financial departments in using the classification of operations of government management, and empowering the Russian Finance Ministry in the analytical use of the classification of operations in the government sector.

Consulting on Designing and Implementing an Automated System for the Federal Treasury of the Russian Federation

The project was aimed at designing and implementing an Automated System to support the operational and management processes of the Federal Treasury units. This automated system was to become the core element of public finance management and accounting operations, ensure effective control and management of public finances and lay the groundwork for effective interaction both of different federal government bodies and of budget and off-budget foundations. The project was implemented in a consortium led by Information Business Systems (Russia).

Development of a Strategy for Russian Enterprise Support during Their Transition to IFRS

The project included the development of an action plan, including procedures, an appropriate schedule and resources, necessary to support Russian enterprises during their transition to IFRS, as well as a general concept for the wider adoption of IFRS in Russia while focusing on the leading role of the securities market in this process. The project was implemented in a consortium with the International Center for Accounting Reform.

Accounting, reporting and audit at sub-national level in Russia (within the Regional Fiscal Technical Assistance Project).

The purpose of the project was to develop proposals for consistent procedures to be performed in harmonizing national accounting and reporting standards in the public sector with International Public Sector Accounting Standards (IPSAS), stimulate the development of public sector accounting and reporting systems and facilitate the preparation of sub-national public sector financial statements in accordance with the requirements of the Government Financial Statistics Manual. The project was implemented jointly with Bannock Consulting (UK) and the Economic Expert Group (Russia).

Consulting on Assisting an Assessment of the Russian Banking Sector

The project included a comprehensive analysis and assessment of how the reform process affects the banking services in Russia that are available to individuals and the real sector of the economy, as well as overall economic growth. The project was implemented in a consortium with KPMG (UK).

Review of the Strategy for the Development of the Russian Banking Sector

The overall objectives of the project were to analyze and assess compliance of the actions to implement the Strategy with its objectives and tasks and to prepare recommendations for adjusting the provisions of the Strategy to increase its efficiency. The project was implemented jointly with the Economic Expert Group (Russia).

Consulting Services on Legal and Financial Issues in Implementing IBRD Projects

The project provided consultations to Russia’s Ministry of Finance, Ministry for Economic Development and Trade, the Federal Center for Project Finance and other related project implementation units (PIUs). The aim was to help these bodies resolve problematic issues relating to the legal status of PIUs, the legal nature of project funds due to the ambiguous interpretation of the Russian legislation regulating financial and legal relations, taxation issues and bookkeeping in PIUs.

Consulting on the Development of the Financial Management System for the Pension Reform Support Project

The objective of the assignment was to present a general concept for the financial management system within the Pension Reform Support Project. FBK’s consultants developed recommendations on financial reporting for the IBRD and Russia’s Ministry of Finance.

Comparative Analysis of the Terms and Conditions of Borrowings from International Financial and Other Foreign Institutions by the Russian Federation and Other Recipient Countries, as well as Developing a Methodology for Assessing the Efficiency and Effectiveness of Borrowings from IFIs

The project was implemented in a consortium with Global Insight (US) and the Research Budgetary Center (Russia).

Comprehensive Financial Review of the Pension Fund of the Russian Federation

The objective of the project was to obtain a reliable overall picture of the financial position and results and to enhance the accounting, internal control and financial management capability of the Pension Fund of Russia (PFR). The project was implemented in a consortium with Ernst & Young (CIS) Limited (Russia).

Financial Due-Diligence of the Baikal Pulp-and-Paper Mill

The project included a restatement of the financial statements to make them understandable to international users (the IFRS elements), as well as an analysis of the company’s operational, investment and financial activities and an analysis of ecological and financial risks.

Special Audit of the Subsidy Management System of the Russian Coal Sector

The main objective of the project was to audit the management mechanism of government funds to restructure the coal sector at both federal and regional levels. FBK produced a professional opinion on the implementation of the Government’s Coal Industry Restructuring Program and other normative acts on the transfer of funds from the Government to recipients and their special application.

Audit of Public Procurement in Education and Health in the Kyrgyz Republic

The project included the audit and the evaluation of performance of public expenditures in education and health. The project consultants developed recommendations on the economic and efficient application of public expenditures for the State Commission for Public Procurement under the Government of the Kyrgyz Republic. The project was implemented jointly with Consulting & Procurement (Russia) and W. Jacobs-Audit (Kyrgyz Republic).

Audit of Financial Statements of Banks Participating in the Financial Institutions Development Project

The objective was to express a professional audit opinion on the financial statements of banks. Audit of the financial statements of organizations implementing IBRD projects in Russia.

* The objective was to express a professional audit opinion on the financial statements of organizations.

Audit of the Financial Statements of IBRD Projects in Russia, Turkmenistan and Uzbekistan

The objective was to express a professional audit opinion on the project financial statements.

Training of the Staff of the Regional Fiscal Monitoring Unit and Other Units of the Department for Inter-budgetary Relations at Russia’s Ministry of Finance.

The project included training in the form of seminars to assist the implementation of the new methods of building inter-budget relations at federal level.

2. European Bank for Reconstruction and Development (EBRD)

Verification and Audit of Gazprom

The project developed recommendations to improve financial and economic activity at Gazprom with a view to enhancing management efficiency at state-owned enterprises. The project was implemented at the request of Russia’s Ministry of State Property within the Verification and Audit of State-Owned Enterprises Program.

Verification and Audit of Russia’s Ministry of Railways

The project developed recommendations to improve financial and economic activity at the Ministry of Railways with a view to enhancing management efficiency at state-owned enterprises. The project was implemented at the request of Russia’s Ministry of State Property within the Verification and Audit of State-Owned Enterprises Program.

Presale Valuation under the Case-by-Case Privatization Program for State-Owned Foreign Trade, Printing and Bakery Supply Enterprises.

The project included the development of a privatization model, presale preparation and valuation of government-owned stakes in foreign trade, printing and bakery supply enterprises.

Creditworthiness Enhancement Program of the Komi Republic

The project was aimed at enhancing the creditworthiness of the City of Syktyvkar and the Komi Republic by improving all aspects of their financial management and planning to ensure they could meet necessary current and future expenditures. The project was implemented jointly with Consulting & Procurement (Russia) and the Research Budgetary Center (Russia).

Financial Due Diligence for AMG Kidsports, POLYROS, Structured Component Industries Company

The project aim was to provide the EBRD with a detailed overview of the fiscal position of AMG Kidsports, POLYROS, Structured Component Industries Company and its ability to implement projects being considered for EBRD financing. The project was implemented jointly with PKF (UK).

Business Reorganization for Stoilensky GOK

The project was implemented jointly with KPMG (UK). FBK experts implemented the component on Tax Optimization and Tax Planning.

Tax Audit of Concern Kalina

The project aim was to provide the EBRD with a detailed overview of the fiscal position of Concern Kalina and its compliance with applicable tax legislation.

Audit of the Financial Statements of EBRD Projects in Russia

The objective was to express a professional audit opinion on project financial statements.

3. TACIS

Implementing Accounting Reform III

The project objective was to assist Russia to implement accounting reform and switch to IFRS to improve Russia’s business and investment climate. Technical assistance was provided to Russia’s Ministry of Finance and Ministry of Agriculture. The project was implemented as part of a consortium led by PricewaterhouseCoopers Audit (Russia).

Auditing Reform in Russia

The main objectives of the Project were to bring Russian audit into compliance with International Standards on Auditing (ISA), improve the financial transparency of Russian companies to inward investors and achieve recognition of Russian audit quality abroad. The project helped develop new auditing standards and provided institutional support to Russia’s Ministry of Finance and professional associations of auditors. The project was implemented in a consortium with PKF (UK) and Helm Corporation (Northern Ireland).

Civil Service Reform (Administrative Reform-2)

The overall objectives of the project were to contribute to the creation of a merit-based, professional and accountable public administration which is respected by citizens and businesses and has a strong public service ethos, and also to assist the Presidential Executive Office of the Russian Federation and other public bodies to improve state service policies, human resource management and (re)training of civil servants. The project was implemented in a consortium led by the Nicolaas Witsen Foundation in the Netherlands.

Insolvency Phase-II: Efficiency of Insolvency Proceedings

The project improved insolvency and bankruptcy procedures to enable the restructuring of business activities and a more efficient release of assets locked in insolvent companies, permitting these resources to be mobilized and used effectively for the development of Russia’s economy. The project was implemented in a consortium with GTZ (Germany) and Schultze & Braun (Germany).

Supporting the Adoption of IFRS in the Russian Banking Sector

The project included supporting the adoption of IFRS in the Russian Banking Sector and assessing compliance with IFRS of sixteen draft rules for accounting and regulatory acts developed when implementing the TACIS project “Support for Accounting Reform in the Banking Sector”, as well as of other rules prepared by Russia’s Central Bank. The project was implemented jointly with the UK’s Crown Agents.

Audit of the Development of the Regulatory Framework for the Funded Pension Systems Project

The main objective of the Regulatory Framework for the Funded Pension Systems Project was to provide technical assistance to the Russian Government in pension reform development. FBK carried out the audit of the project’s financial statements.

4. Department for International Development of UK (DFID-UK)

Support to the Civil Service and Public Administration Reform Process in the Russian Federation

The project supported the planning, management and implementation of the Russian Government’s civil service and public administration reform programs. The main beneficiaries were Russia’s Ministry of Economic Development and Trade and Ministry of Health and Social Development, as well as the Presidential Executive Office. The project was implemented in a consortium led by the Nicolaas Witsen Foundation of the Netherlands.

Technical Assistance Facility for Russian Regional Finance Reform

The project’s objectives were to enhance the efficiency and effectiveness of Russian regional government resource allocation and utilization and introduce financial management instruments developed and improved as part of the IBRD-financed Russian Fiscal Technical Assistance Project. The project was carried out in close cooperation with Russia’s Ministry of Finance and regional administrations and implemented in a consortium with PKF in the UK.

5. Canadian International Development Agency (CIDA)

Audit of the State Policy Project

FBK’s experts carried out an audit of the project, which was implemented by the University of Calgary and the Gorbachev Foundation (UCGF) Partnership. The objective of the work was to audit disbursements of the CIDA financing provided for the special purposes of the project.

6. United Nations Educational, Scientific and Cultural Organization (UNESCO)

Audit of UNESCO Moscow Office

FBK’s experts participated in the audit of UNESCO’s Moscow Office. The audit objective was to confirm that the donor’s funds were being used for the purposes intended and that the financial statements gave a true and fair view of the project’s financial situation (receipts and disbursements).