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Federal Treasury of the Ministry of Finance of the Russian Federation

Company

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The Federal Treasury is a payment, accounting, control, information system in the field of financial activities of public legal entities

Owners:
Ministry of Finance of the Russian Federation

Assets

Assets

+ Federal Treasury of the Ministry of Finance of the Russian Federation

The Federal Treasury is the federal executive authority (federal service) performing in accordance with the legislation of the Russian Federation law-enforcement functions on ensuring execution of the federal budget, cash services of execution of budgets of a budget system of the Russian Federation, preliminary and current control of conducting transactions with means of the federal budget by the main managers, managers and receivers of means of the federal budget

Structure

The system of bodies of FC includes:

  • Central office of FC;
  • Managements of FC on the subjects of the Russian Federation;
  • Departments of managements of FC on the subjects of the Russian Federation.

Informatization

Main article: Information technologies in Federal Treasury of the Russian Federation

Information systems:

Main stages of development of Federal Treasury of the Russian Federation

2011: The Concept "Electronic budget" is approved

The order of the Government of the Russian Federation of July 20, 2011 No. 1275-r approves the Concept of creation and development of the state integrated information management system by public finance "The electronic budget".

2002: Loan of the World Bank

Point 5 of the order of the Government of the Russian Federation of June 23, 1999 No. 677 "About the Federal target program of development of bodies of Federal Treasury for 2000-2004" it was entrusted to the Ministry of Finance of the Russian Federation when forming drafts of the program of the state external loans of the Russian Federation for the corresponding years to provide financing of the Program.

It was planned that the realization of the main program actions will be enabled within the Project.

Attraction of a loan of International Bank for Reconstruction and Development (World Bank) on financing of the Project was provided by the Program of the state external loans of the Russian Federation for 2002 (Annex 24 to the Federal law of December 30, 2001 No. 194-FZ "About the federal budget for 2002") and the Program of cooperation of Russia with the World Bank for 2002 - 2004 approved by the Government of the Russian Federation on February 21, 2002.

During preparation of the Project during 1999 - 2001 7 missions of the World Bank with participation of representatives of the International Monetary Fund (IMF), including an identification mission, three preparatory, a preestimated, estimated and additional mission for refining of the scheme of loan are held.

The letter of February 28, 2002 (No. ECC10-N-2002-00137) the World Bank sent to the Ministry of Finance of the Russian Federation the invitation to negotiations and the draft agreement between the Russian Federation and International Bank for Reconstruction and Development on a loan for financing of the Project (further - the Agreement).

On March 18, 2002 the order of the Government of the Russian Federation (No. 321-r) about negotiations approved with the Ministry of Economic Development of the Russian Federation and the MFA of Russia was signed.

On March 19, 2002 directives and the structure of delegation of the Russian Federation on the negotiations which are also approved with the specified ministries were approved.

The approved protocol of negotiations was signed by the parties on March 22, 2002.

Results of negotiations with the application of the protocol and the draft agreement were provided to the Government of the Russian Federation on April 2, 2002.

Notified by the letter of April 8, 2002 the No. 1983p-P13 Government of the Russian Federation the World Bank on approval of results of negotiations.

On June 6, 2002 Council of chief executives of the World Bank approved selection of a loan.

On July 18, 2002 the Ministry of Finance of the Russian Federation for consideration in the Government of the Russian Federation submits the draft resolution of the Government of the Russian Federation "About attraction of an adaptation program loan of International Bank for Reconstruction and Development on upgrade of a treasurer system of the Russian Federation and agreement signature between the Russian Federation and International Bank for Reconstruction and Development about a loan for financing of the "Upgrade of a Treasurer System of the Russian Federation" project", approved in accordance with the established procedure with the Ministry of Economic Development of the Russian Federation, the MFA of Russia and also with the Ministry of Justice of the Russian Federation. The specified Order of the Government of the Russian Federation No. 573 is signed on July 27, 2002.

The agreement on loan No. 4662-RU for financing of the Project (further – the Loan) between the Russian Federation and IBRD was signed on July 31, 2002.

Financing of works on preparation of the Project was performed at the expense of funds of loan No. 3844-RU for development of the loan portfolio of the Russian Federation and means of a grant of the Government of Japan No. TF-025812 which was in trust management of IBRD in the amount of 497.0 thousand dollars (The order of the Government of the Russian Federation of November 30, 1999 No. 1317, the Agreement between the Russian Federation and IBRD of December 22, 1999). Means of a grant were spent completely, the grant was closed in accordance with the established procedure.

According to the agreements reached with the World Bank, financing of the Project was performed at the expense of three main sources:

(1) loan of the World Bank,

(2) the tax joint financing selected the Russian Federation for payment of the taxes and duties according to the Agreement on a loan with IBRD which are not subject to financing from a loan of IBRD and

(3) non-tax (direct) joint financing of the Project selected for accomplishment of actions within public contracts including means of the Federal target program of development of bodies of Federal Treasury for 2000 - 2004 (since 2001).

It was originally supposed that means of the Adaptation program loan of IBRD applied to financing of the interconnected, consistently implementable parts of long-term investment projects will be mastered within the Project by two tranches with a total amount of 400 million US dollars.

The first tranche of the Adaptation program loan provided (of 231 million US dollars) to provide financing of 3 principal components necessary for program implementation:

I. Technical assistance;

II. Equipment and software;

III. Education and training.

It was supposed that implementation of these components, taking into account partial formation due to non-tax joint financing of the Project from the Russian Federation of the necessary protected and disaster-proof technical infrastructure, will allow to reach defined within the approved Protocol of negotiations of key criteria of execution of actions of the first tranche (the first part) of the Adaptation program loan (in the amount of 231 million US dollars).

It was supposed that the received results will allow to allocate quickly funds of the second tranche (the second part of a loan in the amount of 169 million US dollars), and already at the expense of the second tranche (the second part) of the Adaptation program loan the Government of the Russian Federation will provide achievement of ultimate goals of the Project. Attraction of financial resources of the second tranche was planned for the period from 2006 to 2010.

Change of the scheme of financial provision of the Project regarding failure from the second tranche of the Adaptation program loan, taking into account substitution by its means of joint financing of the Russian Federation, defined postponement of closing date of the first tranche for the end of 2010. This solution also determined need of review of the purposes and indicators of results of its implementation, proceeding from financing by means of the first tranche of actions of all Project, and not just its first part. It was caused by the fact that earlier it was going to perform execution of works and, respectively, expenditure of means of the first tranche of the Adaptation program loan within 5 years.

Approved by the Ministry of Finance of the Russian Federation and the Ministry of Economic Development of the Russian Federation of change provided execution of works and, respectively, expenditure of means of the Loan within 8 years taking into account that all amount of means provided earlier within the second tranche within these years will be completely substituted with means of non-tax joint financing of the Project from the Russian Federation.

At the same time, within the second tranche of the Adaptation program loan payment for work under the contracts signed and, respectively, paid within the first tranche of this loan was provided. In this regard the Federal Treasury and IBRD significantly processed the Purchase plan on the Project, having redistributed funds of the Loan for payment of already signed long-term contracts, having saved at the same time without change the size of operating expenses (in spite of the fact that at the expense of them it was necessary to provide expenses on project management not on 5 any more, and for 8 years). At the same time Federal Treasury made the decision to finance a number of actions of the Project which were originally going to be financed at the expense of the Loan at the expense of means of non-tax joint financing of the Russian Federation.

The specified changes providing reduction of expenses on the Project at the expense of the Loan and, as a result, the increasing current expenses at the expense of means of non-tax joint financing of the Russian Federation, were entered to the Purchase plan and were annually approved by Federal Treasury with the Ministry of Finance of the Russian Federation and the Ministry of Economic Development of the Russian Federation in the order provided by Regulations on work with the projects implemented by the Russian Federation with the assistance of international financial institutions, the approved Order of the Government of the Russian Federation of January 28, 2005 No. 43. At the same time it should be noted that such non-tax joint financing of the Project by financing of public contracts within the current activity of bodies of Federal Treasury was performed in the general order of cash execution of the federal budget with inclusion of information on the made cash expenses in financial statements on the Project.

Application of the specified scheme became possible thanks to what is initial not only means of the Loan and tax joint financing, but also means of non-tax joint financing of the Russian Federation were considered as the general means of the Project. IBRD was put forward, and the Ministry of Finance of the Russian Federation and further Federal Treasury accepted a number of requirements concerning accounting treatment for expenses for the purchases financed by non-tax joint financing, – they were performed by rules, acceptable for IBRD, within, set by the legislation of the Russian Federation, joined in the financial statements on the Project sent to IBRD were audited and checked within the missions of IBRD. Application of this unique scheme provided efficiency of purchases from all sources and was one of the factors which provided a project success.

The agreement on the Loan between the Russian Federation and IBRD is signed on July 31, 2002, for total amount up to 400,000,000 US dollars, for a period of eight years. On the status the Agreement on the Loan is the international treaty.

Attraction of a loan was originally going to perform according to the adaptation program, in the volumes approved within the held negotiations - two tranches in the amount of 231 million US dollars and to 169 million US dollars respectively.

The Ministry of Finance of the Russian Federation managed to satisfy in the shortest possible time conditions of the introduction of the Loan in force thanks to what the Agreement on the Loan officially became effective on October 2, 2002 (the letter of the Director of IBRD of Russia D. Shvaytser of October 2, 2002 on adoption of the provided evidence of accomplishment of the conditions preceding entry into force of the Agreement).

According to Article II of Section 2.01 of the Agreement, the Bank provided to the borrower the Loan, equal 231,000,000 US dollars.

Initial closing date of the Loan was on December 31, 2007 or later term set to IBRD.

Attraction of the second tranche was planned for the period from 2006 to 2010.

The joint letter of April 29, 2006 No. 42-4.3-05/8 signed by the Deputy Minister of Finance of the Russian Federation S.A. Storchak and the head of Federal Treasury T.G. Nesterenko addressed to the Minister of Finance of the Russian Federation A.L. Kudrin initiated a question of approval of change of the scheme of financial provision of the Project taking into account failure from attraction of the second tranche of a loan and postponement in this regard of closing date of the first tranche for December 31, 2010.

Within implementation of the main directions of debt policy of the Government of the Russian Federation (the minutes of the Government of the Russian Federation of April 21, 2005) directed to reduction of volumes of the state external loans of the Russian Federation and also taking into account the justifications provided by Federal Treasury of April 29, 2006 No. 42-4.3-05/8, the Ministry of Finance of the Russian Federation and the Ministry of Economic Development of the Russian Federation approved failure from loan of means of the second tranche, taking into account substitution by their means of non-tax joint financing of the Russian Federation (the letter of May 29, 2006 No. 7514-KA/D13). IBRD agreed with the decision on non-use of means of the second tranche and attraction for this purpose of resources of the Russian Federation.

The Ministry of Finance of the Russian Federation addressed on June 7, 2006 to IBRD (letter No. 04-02-09/6292 addressed to Russia Director, the permanent representative of the World Bank in Moscow K. Georgieva) with the offer on entering of corresponding changes into the Agreement on the Loan.

On the appeal of the Ministry of Finance of the Russian Federation about postponement of closing date of the Loan of IBRD the letter of July 14, 2006 No. 2006-00449/ECCU1, according to Section 2.03 of the Agreement, set on December 31, 2009 new closing date of the Loan, having at the same time specified that repeatedly the question of postponement of closing date of the Loan for December 31, 2010 will be considered after carrying out mid-term evaluation of the Project.

On October 2, 2009 the Ministry of Finance of the Russian Federation sent to IBRD an inquiry for postponement of closing date of the Loan for December 31, 2010, the letter of October 30, 2009 No. 2009-00555/ECCUI IBRD announced adoption of the relevant decision.

June 22, 2010. The Federal Treasury addressed in the Ministry of Finance of the Russian Federation with an official request to initiate the procedure of prolongation of the Loan, proceeding from the carried-out assessment of the terms required for carrying out replication of the application software of the created single Automated system of Federal Treasury (further – AS FK). At the same time completion of the specified works was planned no later than January 1, 2012, and the specified term was observed, and the additional semi-annual period - till June 30, 2012 - initially was considered as reserve.

The offer of Federal Treasury on establishment as closing date of the Loan was supported on June 30, 2012 by the Ministry of Finance of the Russian Federation, the Ministry of Economic Development of the Russian Federation and it is accepted IBRD on December 24, 2010 (letter No. 2010-00719/ECCU1).

The letter of IBRD of April 3, 2012 No. 2012-00128/ECCU1 determined a grace period lasting 4 months, i.e. till October 31, 2012 on June 30, 2012. The loan was closed.

In September, 2012 the Ministry of Finance of the Russian Federation appealed to IBRD about prolongation of month, grace for about 2 periods, till December 31, 2012.

Confirmed with the letter of October 2, 2012 No. 2012-486/ECCU1 of IBRD prolongation of a grace period on the Loan till December 31, 2012.

1999

The program of development of Treasury for 2000-2004

In this regard, the Federal target program of development of bodies of Federal Treasury developed by specialists of GUFK for 2000 - 2004 (further – the Program) approved practically by all main institutes of the government of the Russian Federation and approved by the order of the Government of the Russian Federation on June 23, 1999 No. 677 became the main instrument of reforming of the Russian treasurer system.

The state customer of the Program defined the Ministry of Finance of the Russian Federation.

The development of a system of bodies of Federal Treasury necessary for increase in management efficiency and control of the state financial resources became a main objective of the Program. The program represented the long-term, rather deeply worked strategy of development for a system of execution of the federal budget in which were accurately designated:

  • purposes, tasks, terms and stages of program implementation;
  • main program actions and ways of their implementation;
  • main end results;
  • financial provision in the directions of expenses, implementation mechanisms, an order of management and control of execution of the program.

Creation, development, full-scale implementation and the organization of effective use of single information, telecommunication system of bodies of Federal Treasury taking into account security of information was one of the main tasks provided by the program.

Budget code of the Russian Federation

The Budget code of the Russian Federation (BQ of the Russian Federation) who took effect according to the Federal law of July 9, 1999 No. 159-FZ "About enforcement of the Budget code of the Russian Federation" became a serious step in formation of the legal basis of activity of bodies of Federal Treasury since January 1, 2000, except for specific provisions for which this Federal established certain conditions or other terms of enforcement by the law.

In particular, the BQ for the first time at the legislative level set the Russian Federation:

  • subject of the relations regulated by the budget legislation of the Russian Federation (the station 1 BQ of the Russian Federation);
  • structure and hierarchy of the budget legislation of the Russian Federation (Articles 2 and 3 BK of the Russian Federation);
  • ratio of the budget legislation of the Russian Federation and rules of international law (station 4 BQ of the Russian Federation);
  • operation of the budget legislation of the Russian Federation in time (the station 5 BQ of the Russian Federation);
  • principles of a budget system of the Russian Federation;
  • legal status of participants of budget process;
  • treasurer execution of budgets and the main (uniform for budgets of all levels) the principles of treasurer execution of budgets;
  • legal basis of the state financial control;
  • legal basis of an order and conditions of prosecution for violation of the budget legislation of the Russian Federation.

The budget code became the main legal act regulating key questions of treasurer execution of budgets of a budget system of the Russian Federation.

Important condition of rise in the Russian economy and ensuring further sustained economic growth was purposeful carrying out structural and institutional reforms. Considering the importance of the tasks solved by bodies of Federal Treasury in the system of economic safety of the country, development of a treasurer system became one of crucial elements of the state budget policy and all complex of reforms of the budget sphere.

Target programs became a fixed asset of implementation of structural policy of the state, active impact on production and economic processes. Federal target programs represent the complex of the research, developmental, production, social and economic, organizational and economic and other actions providing effective solution of tasks in the field of the state, economic, ecological, social and cultural development of Russia coordinated on resources, contractors and terms of implementation.

1996: Law "About Budget Classification"

Single questions of activities of treasury for execution of the federal budget were regulated by federal laws on the budget for the next financial year, the Federal law of August 15, 1996 No. 115-FZ "About budget classification of the Russian Federation" and also the legal acts of the Ministry of Finance of the Russian Federation published in pursuance of the above-stated documents. These laws and regulations were the legal basis which provided creation and development of bodies of treasury practically until recently.

1993: Refining of tasks and functions of Treasury

Further provisions and regulations of this Decree, including a task and function of treasury, were concretized by the Resolution of Council of Ministers - the Government of the Russian Federation of August 27, 1993 No. 864 "About Federal Treasury of the Russian Federation". In particular, the specified Order of the Government of the Russian Federation:

  • approved Regulations on Federal Treasury of the Russian Federation;
  • charged to the Ministry of Economics of Russia to develop the federal program of development of a system of bodies of Federal Treasury together with the Ministry of Finance of the Russian Federation.

1992: Creation of Federal Treasury of the Russian Federation

In the early nineties by the Russian Federation it was headed for carrying out reforms in different spheres: political, economic, financial, social. Serious institutional changes began to be carried out to the fields of financial accounting, a banking system, formation and budget implementation of the country.

To the middle of 1992 the Russian Federation came to a status when execution of the federal budget substantially got out of the control of the Government of the Russian Federation. Delays in transfer of taxes and fees into accounts of the Ministry of Finance of the Russian Federation, a delay in money transfer of the federal budget and submission of the reporting under the enlisted means were regulation in work of many banks including in work of the Central Bank of Russian Federation. The last, in turn, lost control over accounts of budgetary institutions which in a pursuit of profitability began to transfer them to commercial banks. Accounts of the federal budget were opened in commercial banks. There was a negative practice of offsets (cashless offsets) at payment of taxes and fees to the budget system of the Russian Federation.

The situation in economy was characterized by the following negative factors:

  • insufficient efficiency of accounting of receipt and expenditure of budgetary funds;
  • insufficient control of target use of budgetary funds;
  • duration of passing of allocated funds to the final receiver.

As a result the insufficient efficiency of mechanisms of control of expenditure of budgetary funds significantly destabilized the budget policy pursued in the country and lowered a possibility of active participation of the Government of the Russian Federation in its implementation. An objective condition of positive development of current situation in the financial sphere was acceptance of new edition of the Constitution of the Russian Federation in which functions of executive and legislative branches of the power were accurately differentiated and also the role and the place of the Bank of Russia in a financial structure of the state are defined. According to Article 114 of the Constitution, the Government of the Russian Federation provides execution of the federal budget and respectively bears responsibility for proper accomplishment of this function. The Bank of Russia, according to the legislation, cannot perform cash execution of budgets of the Russian Federation.

The decree of the President of the Russian Federation of December 8, 1992 No. 1556 "About Federal Treasury" for the purpose of effective management of income and expenses in the course of execution of the federal budget, gain of control of receipt, target use of public funds in the Russian Federation formed new financial body - the single centralized system of bodies of Federal Treasury (treasury) submitting to the Minister of Finance of the Russian Federation. As a part of the Ministry of Finance of the Russian Federation the Head department of Federal Treasury was created (further – GUFK). This Decree to bodies of treasury assigned accomplishment of the following main objectives:

  • the organization, implementation and control of execution of the federal budget, management of means on accounts of treasury;
  • regulation of the financial relations between the federal budget and public (federal) off-budget foundations, control of extrabudgetary (federal) funds;
  • implementation of short-term forecasting of volumes of the state financial resources and also operational management of these resources in the limits set for the corresponding period of the public expenditures;
  • collecting, processing and information analysis about a status of public finances, representation to federal public authorities of the reporting on financial transactions of the Government of the Russian Federation;
  • management and service together with the Central Bank of the Russian Federation of the public internal and external debt of the Russian Federation;
  • development of methodological and instructive materials, order of conducting accounting operations on the questions which are within the competence of treasury;
  • accounting of the state treasury of the Russian Federation.

Were provided to bodies of treasury by this Decree for the solution of these tasks, including, the following rights:

  • make in the ministries, departments, at the enterprises, in organizations and the organizations, in the banks and other financial credit institutions founded on any patterns of ownership, verifications of the monetary documents, bookkeeping registers, reports, plans, estimates and other documents connected with transfer, transfer and use of means of the federal budget and also to receive necessary explanations, references and data on the questions arising when checking;

  • receive from banks, other financial credit institutions of the certificate of a status of accounts of the enterprises, organizations and the organizations using means of the republican budget of the Russian Federation, the public (federal) off-budget foundations and also extrabudgetary (federal) funds;

  • demand from heads and other officials of the checked state bodies, the enterprises, organizations and the organizations of elimination of the revealed violations of an order of execution of the federal budget, to control their elimination;

  • stop account transactions of the enterprises, organizations and organizations (including banks and other financial credit institutions) using means of the republican budget of the Russian Federation, the public (federal) off-budget foundations and extrabudgetary (federal) funds in non-presentation cases (or failure to show) to bodies of treasury and to their officials of the accounting and finance documents connected with use of the specified means;

  • collect in an indisputable order from the enterprises, organizations and the organizations of the funds allocated from the republican budget of the Russian Federation, or extrabudgetary (federal) funds used not for purpose with imposing of a penalty in the amount of the operating discount rate of the Central Bank of Russian Federation.