Economy

Azerbaijani Accounts Chamber marks 10th anniversary

02-11-2011 | 21:25        

  

10 years elapse since establishment of the Chamber of Accounts. Accomplishment made by the Chamber of Accounts in recent years, being an institution exercising external state financial control, have enhanced the agency’s potential even more, and have opened ample opportunities for strengthening of the material and technical basis and improvement of social protection of the staff.

The idea of establishment of the Chamber of Accounts of the Republic of Azerbaijan belongs to the national leader of the Azerbaijani people Heydar Aliyev. This idea, which was intended for the progress of independent Azerbaijan, protection of its property and state funds, set a goal to efficiently use the country’s financial resources for the welfare of the people.

Heydar Aliyev: “The work I have done since I became President of Azerbaijan aimed to protect Azerbaijan’s funds and prevent waste.”

The Chamber of Accounts, whose major function is to exercise state financial control and whose activity is based on the principles of organizational and functional independence, started operating in 2001. The Chamber of Accounts is comprised of Chairman, Deputy Chairman and 7 Auditors, who are appointed for a seven-year term by the Milli Majlis on the basis of the presentation of the Chairman of the Milli Majlis. The legal status of the Chamber was determined by the Constitution adopted in 1995. The By-Laws of the Chamber of Accounts adopted in 2002 identified the organization and regulation of the activities of the body, whose authorities were determined by the “Law on the Chamber of Accounts” that came into force in 1999. The laws on “Budget system”, “The status of the member of the Mill Majlis”, “Civil service”, the international agreements approved by the Republic of Azerbaijan also played a direct imperative role in the activity of the Chamber of Accounts. This laid the foundation of the external state financial control in the country, an important step was taken towards the establishment of the effective financial control system. Starting from 2003, increase of state expenses many times as a result of Azerbaijan’s implementation of large transnational projects, realization of regional projects and provision of the country’s economic, defense and energy security, along with efficient management of vast sums, demanded development of a rapid and reliable state financial control system. Thus, President Ilham Aliyev took financial management as one of the priority tasks in the country. this placed serious responsibility and tasks on the Chamber of Accounts. The annexes and amendments made to the Law on the Chamber of Accounts in 2008 on the initiative of President Ilham Aliyev were of great significance in strengthening the role of the Chamber in the state financial control system, considerably improved the financial provision of its employees, the Chamber acquired more actual powers and expanded its executing authorities in carrying out its functions and fighting financial irregularities. The Chamber of Accounts is conducting audit of the revenues and expenses of the State Budget and extra budgetary state funds, presents reports to the Mill Majlis about the legal irregularities revealed as a result of the control, provides opinion on the drafts of the State Budget and extra budgetary state funds, on the annual report on the execution of the State Budget and appropriate draft laws, supervises the volume, the structure, as well as the timely and targeted execution of revenue and expenditures items, of the State Budget and the budgets of extra-budgetary state funds, prepares proposals on improvement of the budget process and submits to the Mill Majlis, carries out financial examination of draft laws and the international agreements. The scope of activity of the Chamber of Accounts also includes supervising approval and execution of the State Budget, management of state property, issuance of orders with respect to such property, flow of funds generated from the privatization of state property into the State Budget and proper use of the funds allocated from the State Budget to legal entities and municipalities. Macroeconomic conditions, specifying the major parameters of the draft state budget and its execution, state budget revenues and expenditures, the outcomes of the control activities are analyzed in the recently improved reports, their role in improving the budget system and increasing transparency is viewed. At present the Chamber prefers to issue notifications to the relevant executive authorities, where control activities are being carried out. The control activities carried out by the Chamber in the recent years show that strengthening financial discipline and formation of quick control system are of great importance in reducing the risks of financial irregularities. Taking measures to reveal and prevent the cases causing corruption and abuse of power has been one of the major tasks of the Chamber of Accounts in the past 10 years. Over these years the Chamber of Accounts has enhanced its international relations. In 2002 the Chamber of Accounts was admitted to the International Organization of Supreme Audit Institutions, Asian Organization of Supreme Audit Institutions, European Organization of Supreme Audit Institutions and Supreme Audit Institutions of Members States of Organization of Economic Cooperation. Azerbaijani Chamber of Accounts, which cooperates with the CIS Council of Heads of Supreme Audit Institutions of the CIS member states, has signed bilateral cooperation agreements with nine countries, as a result of it, the Chamber of Accounts has gained international auditing experience. One of the most important events in the history of the Chamber of Accounts within the past 10 years was the inauguration of the new administrative building. The two-storey administrative building situated at 33 Khagani Street of the capital had been used for various purposes at different times. The construction of the new building started in 2008. On 21 December, 2009, President Ilham Aliyev attended the inauguration of the new building of the Chamber of Accounts. Favorable conditions have been created in the five-storey administrative building for the staff of the Chamber of Accounts.

 Ilham Aliyev: “The Chamber of Accounts is carrying out very important functions. You also play a significant role in the development of Azerbaijan’s economy. The activity of the Chamber is very important for us.”

The Chamber of Accounts, which has been holding an important position in the financial system of our country within 10 years, has taken a decent place among the bodies of state administration due to the organizational, control-audit, analytical and methodological activities, it has achieved significant success in combating financial irregularities and corruption. Strategic Development Plan has been prepared recently to strengthen the potential of the Chamber of Accounts. Measures have been taken to strengthen the logistics of the Chamber and social security of its staff. The Chamber of Accounts is a state body playing a significant role in ensuring transparency and efficiency in the budget management, activity of the executive authorities and this mission is being continued successfully.