ORDER OF THE MINISTRY OF FINANCE OF THE RUSSIAN FEDERATION

of December 30, 2016 No. 822

About approval of Methodical recommendations about implementation of internal financial audit

For ensuring uniform approach to implementation by the main managers (managers) of budgetary funds, chief managers (administrators) of budget receipts, chief managers (administrators) of sources of financing of budget deficit of internal financial audit I order:

approve the enclosed Methodical recommendations about implementation of internal financial audit.

Approved by the Order of the Ministry of Finance of the Russian Federation of December 30, 2016 No. 822

Methodical recommendations about implementation of internal financial audit

I. General provisions

1. These Methodical recommendations are developed according to Article 165 of the Budget code of the Russian Federation for the purpose of ensuring single approach to the organization and carrying out budgetary funds by the main managers (managers), chief managers (administrators) of budget receipts, chief managers (administrators) of sources of financing of budget deficit (further - the chief manager (administrator) of budgetary funds) internal financial audit.

These Methodical recommendations have advisory nature and are directed to assistance to chief managers (administrators) of budgetary funds when implementing internal financial audit.

2. Subject of internal financial audit is the structural division of the chief manager (administrator) of budgetary funds authorized on implementation of internal financial audit and (or) officials of the chief manager (administrator) of budgetary funds.

3. Activities of the subject of internal financial audit are based on the principles of legality, objectivity, efficiency, independence, professional competence, and also systemacity and responsibility.

The principle of legality is expressed in strict and full implementation of the precepts of law regulating implementation of internal financial audit.

The principle of objectivity and professional competence is expressed in application by the corresponding officials and workers of set of the professional auditor knowledge, skills and other competences allowing the subject of internal financial audit to perform internal financial audit without prejudice, qualitatively and with non-admission of conflict of interest of any sort for accomplishment of the purposes and tasks facing the subject of internal financial audit.

The principle of efficiency means that internal financial audit shall proceed from need of achievement of the best (set) results of audit with use of the set (smallest) amount of the resources spent for it (financial, labor and material).

The principle of independence means lack of conditions which create threat of capability of the subject of internal financial audit without prejudice and to objectively carry out the obligations.

The principle of systemacity is that when implementing internal financial audit the revealed risks (threats) and violations are analyzed in all directions of financial and economic activities of structural divisions of the chief manager (administrators) of budgetary funds and receivers of budgetary funds subordinated to them (further - object of audit) with the set frequency for the purpose of assessment of reliability of internal financial control, confirmation of reliability of budget reports, assessment of economy and effectiveness of use of budgetary funds.

The principle of responsibility means that the subject of internal financial audit bears responsibility to the head of the chief manager (administrator) of budgetary funds for provision of complete and authentic auditor recommendations (offers), the conclusions, reports allowing in case of their ought to increase accomplishment quality of implementation of internal budget procedures.

4. The organization of internal financial audit is performed taking into account the requirements of Article 160.2-1 of the Budget code of the Russian Federation determining that internal financial audit is directed:

a) on assessment of reliability of internal financial control and preparation of recommendations about increase in its efficiency;

b) on confirmation of reliability of budget reports and compliance of procedure for conducting the budget accounting of methodology and to the standards of the budget accounting established by the Ministry of Finance of the Russian Federation;

c) on preparation of offers on increase in economy and effectiveness of use of budgetary funds.

5. During internal financial audit assessment of reliability of internal financial control, reliability of budget reports, economy and effectiveness of use of budgetary funds, including by means of implementation of audit of the transactions with assets and liabilities made by structural divisions of the chief manager (administrator) of budgetary funds, reflections of transactions with assets and liabilities in the budget accounting and budget reports of the chief manager (administrator) of budgetary funds and receivers of budgetary funds subordinated to it is carried out (further - objects of audit).

6. During assessment of reliability of internal financial control and quality of implementation of internal budget procedures results of control actions concerning transactions (actions for forming of the documents necessary for accomplishment of the internal budget procedures) connected with corruption risks are without fail analyzed.

For the purpose of these Methodical recommendations the corruption risk is understood as possibility of receipt of benefit in the form of money, values, other property, services of property nature, property rights for the officials performing the corresponding internal budget procedures (transactions) (in particular, transactions in the sphere of purchases, transactions with assets and liabilities), or the third parties consisting with them in close relationship or property.

7. For the purpose of the organization of implementation of internal financial audit heads of chief managers (administrators) of budgetary funds provide accomplishment of the following actions:

adjustment of organizational structure of the chief manager (administrator) of budgetary funds for the purpose of forming of the subject of internal financial audit according to the principles specified in Item of 3 presents of Methodical recommendations;

fixing of distribution of powers and responsibility on the organization and implementation of internal financial audit by the legal act of the chief manager (administrator) of budgetary funds, development and approval of official regulations and instructions of the employees performing internal financial audit;

inclusion in official regulations of qualification requirements to the professional knowledge and skills necessary for execution of job responsibilities of the employees organizing and performing internal financial audit.

8. Internal financial audit is performed by means of carrying out scheduled and unscheduled audit inspections. Scheduled inspections are performed according to the annual plan of internal financial audit approved by the head of the chief manager (administrator) of budgetary funds (further - the plan).

9. For the purpose of ensuring the principle of independence audit inspections will organize and perform officials who:

do not take part in the organization and accomplishment of the checked internal budget procedures of object of audit in current period;

did not take part in the organization and accomplishment of the checked internal budget procedures of object of audit during the checked period and the year preceding the checked period;

have no relationship or property with the head and other officials of the chief manager of budgetary funds, the administrator of budgetary funds organizing and performing the checked internal budget procedures;

have no other conflict of interest creating threat of capability without prejudice and to objectively carry out obligations during audit inspection.

10. The subject of internal financial audit has the right to perform preparation of the conclusions concerning justification and completeness of documents of the chief manager (administrator) of the budgetary funds allocated in the Ministry of Finance of the Russian Federation (financial body, governing body of state non-budgetary fund) for the purpose of creation and consideration of the budget statement.

11. Audit inspections are subdivided on:

a) cameral checks which are carried out in the location of the subject of internal financial audit based on provided on its information request and materials;

b) exit checks which are carried out in the location of objects of audit;

c) the combined checks which are carried out as in the location of the subject of internal financial audit, and in the location of objects of audit.

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