BAKU, Azerbaijan, April 11. A compliance audit of the financial and economic activities of the Central Bank of the Republic of Azerbaijan (CBA) during 2021 and the first half of 2022 was conducted in accordance with the work plan of the Chamber of Accounts of the Republic of Azerbaijan for 2022 and the requirements of Article 21.13 of the Law "On the Chamber of Accounts", Trend reports citing the chamber.
According to the chamber, the bank's activity in forecasting income and expenses is based on a perfect legal framework, and the budget was prepared to take into account the requirements of the "Procedural rules for planning and controlling the execution of the budget in the Central Bank" and in agreement with the relevant executive authority.
The chamber also noted that the investment funds provided for in the investment budget for each year, approved by the Board of Directors of the CBA for individual years and objects, weren’t used during the corresponding year, or investment expenditures not provided for in the budget of the corresponding year were allowed.
Besides, the chamber noted that construction work began without obtaining an expert opinion on design and estimate documentation, providing the author's control over construction and calculating the probable cost of construction, as well as the fact that an operation permit act wasn't drawn up and approved.
After the completion of the construction work, documentation was drawn up in accordance with the requirements of the law.
In addition, inconsistencies were identified between the indicators of the residual amounts of expenses for the depreciation of long-term assets in accounting, the indicators of the annual financial statements as of December 31, 2021 and the Annual Special Report on the Preservation and Use of State Property.
Fixed assets in the amount of 276,400 manat ($162,590), subject to accounting in the category "Computers and equipment", were recorded in the category "Furniture and equipment", and investment costs in the amount of 103,358 manat ($60,800) for construction and installation work on the object "Construction of new administrative building of the Central Bank" weren’t included in capitalized costs.
Despite the commissioning of a new administrative building for the Sumgayit Reserve Center, depreciation expenses in the amount of 854,800 manat ($502,820) weren’t accrued during the operation.
Transfer of tax in the amount of 4,900 manat ($2,880) in connection with payment for research work under an agreement with a non-resident individual to the state budget, in nine cases - in the amount of 210,600 manat ($123,880) under agreements with non-resident legal entities, as well as VAT in the amount of 207,400 manat ($122,000) for the provision of work and services in the field of information technology under contracts with individuals, wasn’t secured.