Accounting Chamber accuses Crimea Federal Target Program leadership of unreasonably high salaries

The implementation of the federal program is ineffective, the Accounting Chamber’s management wrote in a letter on the audit results to Deputy Prime Minister Dmitry Kozak. At the same time regional executives set half-a-million ($8.5 thousand) salaries for themselves.

The Accounting Chamber has revealed inefficiency of spending of funds under the Crimea and Sevastopol development program.  Auditors noticed the difficulties in the management system of the implementation of the Federal Target Program (FTP), which leads to a low level of budget development. In particular, in 2015 23.6% of budget funds were disbursed, and in 2016 – 63%. Raising funds from extra-budgetary sources is even worse – 6% and 2.6% respectively. And this is given the fact that unreasonably inflated funds are allocated to finance the work of the organization itself for 2016 and 2017. For instance, its management received from 472 thousand ($8 thousand) to 607 thousand rubles ($10.3 thousand) in the form of salary monthly, Kommersant reports. In total, 163 million rubles ($2.7m) were allocated for the functioning of the FTP last year, and 157 million rubles ($2.6m) – in the current year.

Specific shortcomings feature a backlog in the construction of 180 objects out of 448 planned ones. The Chamber associates this with a poor level of preparation of initial data on reconstructed and newly constructed facilities, low readiness of resource providers to issue technical specifications, duration of design and survey work, and late conclusion of agreements on granting subsidies from the state budget.

Furthermore, during the audit there were some difficulties related to the lack of transparency of the system of interaction between state bodies and commercial structures, as well as the expenditure of federal funds. The report, in particular, indicates that the Ministry of Economy does not have full information on the conclusion…

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