The Department of Internal State Audit for the Pavlodar Region of the Committee of State Audit of the Ministry of Finance of the Republic of Kazakhstan KGA MF RK (hereinafter referred to as the Department), in accordance with the competence established by the legislation of the Republic of Kazakhstan in the field of state audit, annually conducts an audit of the consolidated financial statements/financial statements of budget program administrators budget programs.
Thus, the financial statement audit division of the Department completed an audit in April of this year on compliance with the norms of the legislation of the Republic of Kazakhstan in the preparation of the 2025 consolidated financial statements/financial statements. The audit was conducted in 3 budget program administrators, including:
State Institution "Education Department of Pavlodar Region", including during audit activities, 13 subordinate institutions were covered by cross-checks;
State Institution "Healthcare Department of Pavlodar Region", including during audit activities, 1 subordinate institution was covered by a cross-check;
State Institution "Department of Energy and Housing and Communal Services of Pavlodar Region".
The audit activities conducted in the state institutions generally covered issues of the correct reflection of assets, inventories, accounting for cash flow, calculation of accounts receivable and payable, closing of revenues and expenses, full reflection of liabilities and net assets/equity, and other financial and business operations performed during the reporting period.
Based on the audit results, violations totaling 54.7 billion tenge were identified, including those subject to reimbursement to the budget in the amount of
11.1 million tenge, those subject to rectification through work performance in the amount of 190.1 thousand tenge, as well as procedural violations amounting to 54.6 billion tenge, including those requiring alignment in the amount of 54.6 billion tenge.
Thus, during the preparation of the consolidated financial statements for 2025, the Education Department of Pavlodar Region and the Healthcare Department of Pavlodar Region failed to comply with the requirements of paragraph 16 of Chapter 3 of the Order of the Acting Minister of Finance of the Republic of Kazakhstan dated May 15, 2025 No. 229 "On Approval of the Rules for the Preparation of Annual Consolidated Financial Statements by Budget Program Administrators and Local Authorized Bodies for Budget Execution" failed to ensure the completeness and reliability of reflections as of June 30, 2025, of individual transactions, the correct attribution of revenues and expenses to reporting periods, and also, the subordinate institutions failed to comply with the requirements regulated by paragraph 3 of Chapter 1 of the Order of the Acting Minister of Finance of the Republic of Kazakhstan dated May 15, 2025 No. 230 "On Approval of Forms, Frequency, and Rules for the Preparation and Submission of Financial Statements" failed to ensure the completeness and reliability of reflections as of June 30, 2025, of individual transactions, the correct attribution of revenues and expenses to reporting periods.
At the same time, the Department of Energy and Housing and Communal Services of Pavlodar Region failed to comply with the requirements regulated by paragraph 3 of Chapter 1 of the Order of the Acting Minister of Finance of the Republic of Kazakhstan dated May 15, 2025 No. 230 "On Approval of Forms, Frequency, and Rules for the Preparation and Submission of Financial Statements" failed to ensure the completeness and reliability of reflections as of June 30, 2025, of individual transactions, the correct attribution of revenues and expenses to reporting periods.
Analysis of violations identified in the institutions and their subordinate institutions showed violations of accounting discipline, non-compliance with requirements for the preparation of financial statements and consolidated financial statements, incorrect allocation to accounts in accounting, overpayment of wages and travel expenses, inconsistencies between financial statement forms, as well as inadequate performance of assigned functional duties. In this case, there is a significant risk of presenting distorted consolidated financial statements /financial statements.
The identified violations show that the preparation of consolidated financial statements/financial statements by budget program administrators is not conducted at the proper level, as the reliability and completeness of accounting data and financial statements are not fully ensured, and also when preparing consolidated financial statements, budget program administrators do not re-verify the accounting data of subordinate institutions.
In accordance with the legislation of the Republic of Kazakhstan, the Department, in accordance with paragraph 2 of Article 5 of the Law
of the Republic of Kazakhstan "On State Audit and Financial Control", applied financial control response measures.
In turn, the budget program administrators are taking exhaustive measures to eliminate and prevent such violations of the legislation of the Republic of Kazakhstan in the future.