The Analytical Center and the National Union of Technological and Price Audit held a national conference “Banking supervision of state contracts, technological and price audit. Confluence. Problems of Regulation”.
Experts discussed a range of issues related to banking supervision as being essential if higher efficiency in execution state contracts is to be achieved. They also examined standards of public technological and price audit of large investment projects with public ownership.
“Banking supervision of contracts and technological and price audit are two mechanisms ensuring effecting spending of budgetary funds,” said the Head of the Department for Legal Expertise of the Analytical Center Marina Labozina. “Considering the existing legal regulation, both mechanisms have their respective strengths and weaknesses each”. According to Ms. Labozina, the purpose of banking supervision is to enhance both competitiveness and the transparency of banking transactions conducted as a part of the contract execution. The expert considers that the key problem now is that banking supervision is only available for contracts involving amounts in excess of 10 billion roubles. “As far as technological and price audit are concerned, here we are talking about enhancing the competitiveness and the effectiveness of budgetary expenditures, reducing the cost of the project and the construction time,” Ms. Labozina noted. The key drawback of technological and price audit lies in the absence of required legislative regulation, the expert said. She believes that a single mechanism ensuring effective spending of budgetary funds needs to be created.
The Vice President of the Bank of Moscow Svetlana Tolkacheva spoke about banking supervision of contracts. “The existing legal framework pertaining to banking supervision of contracts is not a part of the federal legislation”, Ms. Tolkacheva remarked. The Article 35 of the Federal Law No 44-FZ of 22.03.2014 and the Decree of the Russian Government No 963 dated 20.09.2014 stipulate two supervision options – a basic and an advanced one, involving the monitoring of proper use and documentary audit. “That said, not all territories comply with these documents, since the Decree No 963 is not binding,” the expert noted, adding that only one supervision option should be offered. Ms. Tolkacheva also proposed amendments to be introduced into this Decree, namely, to expand the list of bank selection criteria offering banking supervision services and to stipulate the criteria of materiality and the quantity of cooperation levels supervised by the bank.
The Board Member of the National Union of Technological and Price Audit Boris Yaryshevsky reminded that the internal technological and price audit standards for members of a non-profit partnership were approved in May 2015. According to him, audit shall be conducted by an independent auditing organization at 4 stages: investment feasibility study, design and survey documents, construction supervision and commissioning, and maintenance. The target of audit is different at each stage of the audit,” said the expert. “At the first stage the target of audit is the expediency of project implementation, at the second, it is optimization of design solutions, at the third – control over spending, and at the fourth – control over fulfillment of objectives and target performance”. Mr. Yaryshevsky also noted that there are industry-specific aspects of audit performance and decision-making depending on the customer.
At the conference experts also analysed practices of banking supervision and technological and price audit.