Accounting Chamber accuses Crimea Federal Target Program leadership of unreasonably high salaries

Accounting Chamber accuses Crimea Federal Target Program leadership of unreasonably high salaries

The implementation of the federal program is ineffective, the Accounting Chamber's management wrote in a letter on the audit results to Deputy Prime Minister Dmitry Kozak. At the same time regional executives set half-a-million ($8.5 thousand) salaries for themselves.

The Accounting Chamber has revealed inefficiency of spending of funds under the Crimea and Sevastopol development program.  Auditors noticed the difficulties in the management system of the implementation of the Federal Target Program (FTP), which leads to a low level of budget development. In particular, in 2015 23.6% of budget funds were disbursed, and in 2016 – 63%. Raising funds from extra-budgetary sources is even worse – 6% and 2.6% respectively. And this is given the fact that unreasonably inflated funds are allocated to finance the work of the organization itself for 2016 and 2017. For instance, its management received from 472 thousand ($8 thousand) to 607 thousand rubles ($10.3 thousand) in the form of salary monthly, Kommersant reports. In total, 163 million rubles ($2.7m) were allocated for the functioning of the FTP last year, and 157 million rubles ($2.6m) – in the current year.

Specific shortcomings feature a backlog in the construction of 180 objects out of 448 planned ones. The Chamber associates this with a poor level of preparation of initial data on reconstructed and newly constructed facilities, low readiness of resource providers to issue technical specifications, duration of design and survey work, and late conclusion of agreements on granting subsidies from the state budget.

Furthermore, during the audit there were some difficulties related to the lack of transparency of the system of interaction between state bodies and commercial structures, as well as the expenditure of federal funds. The report, in particular, indicates that the Ministry of Economy does not have full information on the conclusion and execution of contracts for construction projects and facilities financed from budgetary funds, concluded with the highest executive authorities in the Crimea and Sevastopol.

There is also a discrepancy between the new Russian region and the unified requirements for regional and municipal information systems in the sphere of procurement of goods, and works and services to ensure state and municipal needs.

Apart from the state program, the situation with the region's self-financing is no better. Thus, as of January 1, 2017, the arrears in the payment of taxes and fees to the budget of the Crimea amounted to 665 million rubles ($11.3 m), and to the budget of Sevastopol – 162.5 million rubles ($2.7m). The Accounting Chamber saw objective reasons for this as well – they lie in the fact that the Crimea has no information on taxpayers and benefit recipients and necessary data to assess the effectiveness of the provided tax breaks by their types and categories.

The Accounting Chamber sent the results of the audit to Deputy Prime Minister Dmitry Kozak, responsible for the development of the Crimea and Sevastopol in the government. According to the newspaper, the Prime Minister demanded to take "comprehensive measures to improve the efficiency of work", eliminate violations and "correct omissions" before July 1.

It may be added that since March 2014 Moscow has allocated about 470 billion rubles ($8bn) to the Crimea. The assessment is based on data on the execution of the federal budget and the budgets of the Crimea and Sevastopol.

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