Azerbaijan, Baku, Jan. 24 / Trend I.Khalilova /
The World Bank (WB) has prolonged the implementation period of the project for accountability in the public and corporate sector (CAP / SAP) of Azerbaijan within a year, until the end of 2013, the bank's Baku office told Trend.
"Project Manager Norpulad Daniyarov will visit Baku for an overview of the project on January 27," the office said. His visit will last until February 3.
Currently, several tender procedures are being conducted within the project. The bank seeks a consultant to support the Chamber in the implementation of its strategic plan for 2015. The tender subject is an 18-month contract for services in support of the introduction of performance audit, risk management, financial audits, improvement of the legal framework and regulatory framework for the Chamber as well as the development of human resources and practical trainings.
Alongside, a tender has been announced for the supply of equipment and software for the Financial and Accounting Reporting Application for Budgetary Institutions (FARABI). The contract is being considered for a six-month period.
In addition, the World Bank seeks a short term consultant for a six-month period for founding the Association of Professional Accountants of Azerbaijan (APAA). The association shall be established in the form of a non-governmental and non-profit organisation.
The total project cost of CAP/SAP is estimated at $24 million. The loan agreement for the project was signed in September 2008 and came into force on 19 December 2008.
The project is financed by a loan from the World Bank to the sum of $11 million, Japanese Fund grants PHRD ($3 million) and the Swiss State Secretariat for Economic Affairs SECO ($2 million) as well as a share of the Government of Azerbaijan ($8 million).
The project is the last stage of reforms in the accounting system in Azerbaijan launched in 2003.
The first stage of the reform, improving the legal framework in the field of accounting, is almost complete. The second phase of reform is about making available to entrepreneurs and application of standards for commercial and non-commercial enterprises. Implementation of the project will make possible the establishment of the Centre for Accounting and Auditing under the Ministry of Finance to train accountants and auditors of non-banking institutions.
The project objective is to increase the transparency of financial reporting in the public and corporate sectors.
The component on the corporate sector is expected to improve the functions of audit regulation, including strengthening the organisational structure of the Chamber of Auditors of Azerbaijan. In general, improvement of the system of external audit, creation of a programme of certification of accountants, auditors and conduct training are to be considered within the project.
Azerbaijan has already prepared 28 national standards for the commercial sector. There are 35 standards of financial reporting and auditing available in the world. Transition to IFRS for the public sector was launched in the country in January 2008.