Some Issues of the Ministry of Finance of the Republic of Kazakhstan

Resolution No.1119 of the Republic of Kazakhstan of 28 October 2004

Pursuant to the Decree No. 1449 of 29 September 2004 of the President of the Republic of Kazakhstan “On Measures for Further Improvement of the Public Administration System of the Republic of Kazakhstan” the Government of the Republic of Kazakhstan
ENACTS:
1. To approve appended:
1) Statute on the Ministry of Finance of the Republic of Kazakhstan;
2) List of Organizations being under the authority of the Ministry of Finance of the Republic of Kazakhstan.
2. To authorize the Minister of Finance of the Republic of Kazakhstan to have five Vice Ministers
3. To declare invalid some Resolutions of the Government of the Republic of Kazakhstan according to the Appendix.
4. This Resolution enters into force from the date of signing thereof.

Approved
by Resolution No. 1119
of the Government of
the Republic of Kazakhstan
dated 28 October 2004

Statute on the Ministry of Finance of the Republic of Kazakhstan

1. General Provisions

1. The Ministry of Finance of the Republic of Kazakhstan (hereinafter referred as the “Ministry”) is a central executive body of the Republic of Kazakhstan carrying out management, and, to the extent provided for by the legislation, interbranch coordination of activities assigned to its competence.
The major tasks of the Ministry shall be:
maintenance of making and implementation of the state policy in State budget execution, customs control, tax control, internal financial control and public procurement, public regulation of manufacture and turnover of tobacco products, ethyl alcohol and alcoholic products, specific kinds of oil products, bankruptcy (except for banks and insurance (reinsurance) organizations), extrajudicial debtor liquidation proceedings, rehabilitation procedures with respect to insolvent debtors, state property management, accounting, financial reporting and auditing;
interbranch coordination and methodological management of state budget execution, budgetary accounting, customs control, tax control, internal financial control and public procurement, public regulation of manufacture and turnover of tobacco products, ethyl alcohol and alcoholic products, specific kinds of oil products, bankruptcy (except for banks and insurance (reinsurance) organizations), extrajudicial debtor liquidation proceeding, state property management, rehabilitation procedures with respect to insolvent debtors, accounting, financial reporting and auditing;
2. The Ministry has the following agencies: the Treasury Committee, the Customs Control Committee, the Tax Committee, the Financial Control and State Procurement Committee, the Insolvent Debtors Committee, the State Property and Privatization Committee.
3. The Ministry shall carry out its activities in accordance with the Constitution and laws of the Republic of Kazakhstan, Acts of the President and the Government of the Republic of Kazakhstan and other normative legal acts, as well as this Statute.
4. The Ministry is a legal entity in legal organizational form of a public institution. It shall have seals and stamps with its own name in the State language and standard forms, as well as accounts in the Treasury bodies of the Ministry under the legislation, and other accounts as provided for in the Budget Code of the Republic of Kazakhstan and the International Agreements ratified by the Republic of Kazakhstan.
The Ministry shall enter into civil law relations in its own name.
The Ministry shall be entitled to act as a party of civil law relations on behalf of the State when it is authorized to it in accordance with the legislation.
5. The Ministry’s staff number limit is approved by the Government of the Republic of Kazakhstan.
6. The legal address of the Ministry is: 33 Pobeda av., Astana 473000.
7. The full name of the Ministry is a public institution “Ministry of Finance of the Republic of Kazakhstan”.
8. This Statute shall be a constituent document of the Ministry.
9. The Ministry’s activities shall be financed only from the Republican budget.
The Ministry shall be prohibited to enter into contractual relations with business entities to perform the duties which are its functions.
If the Ministry is entitled to carry out revenue-producing activities under the legal acts, then the revenue resulted from such activities shall be transferred to the Republican budget.

2. Functions and Rights of the Ministry

10. The Ministry, in the procedure established by the legislation, performs:
1) strategic functions that provide making of the state policy in:
participation in development of draft laws on the Republican budget for the appropriate fiscal year, introduction of amendments and additions to the budget, including development of the draft resolution of the Government of the Republic of Kazakhstan on implementation of the Law on the Republican Budget for the appropriate fiscal year;
participation in development of State and other programs, strategic plans of the Republic of Kazakhstan and medium-term plans of social and economic development of the Republic of Kazakhstan, and basic macroeconomic parameters;
participation in the budget revenue forecasting and identifying the goals and priorities of state policy in state budget revenue;
analysis of legislation application practice, preparation of proposals on improvement thereof, development and preparation (or adoption) of draft normative legal acts within its competence;
development and provision of implementation of the state, branch (sectoral) programs within its competence.
2) functions that provide implementation of the state policy in:
provision of the Republican budget execution and servicing of local budgets execution;
provision of the approval and introduction of amendments to summary plans of receipts and the Republican budget financing;
provision of obtaining, utilization, registration, repayment and servicing of loans of the Government of the Republic of Kazakhstan, purchase and sales of state securities issued by it on the organized securities market, as well as performance of obligations under the state guarantees on non-state loans;
provision of rational governmental and state guaranteed borrowing, as well as public debt management;
organization of negotiation, signing of loan agreements of the Government of the Republic of Kazakhstan, issue of state securities of the Government of the Republic of Kazakhstan, granting of state guarantees on non-state loans;
carrying out of financial examination of government loan conditions, non-state loans attracted under the state guarantees, and loans of local authorities;
crediting of investment projects, state programs and other measures provided for in the Republican budget, and according to resolutions of the Government of the Republic of Kazakhstan;
preparation of documentation required for ratification of government external loan agreements;
selection by tender, as agreed with the National Bank of the Republic of Kazakhstan, of second-tier banks for servicing the government loans, non-state loans under government guarantee and the grants related to the subsequent government borrowing, initial dealers, lead managers and other partners in state securities issue;
organization and carrying out together with the authorized agent banks of work with final borrowers on recovery of funds withdrawn from the Republican budget;
preparation of draft internal credit agreements on repayment by final borrowers and second-tier banks of the government loans and the Government of the Republic of Kazakhstan share of cofinancing to the Republican budget;
ensuring of granting, servicing and control over intended use of budgetary credits out of the Republican budget funds, their accounting, monitoring and recovery;
assessment of efficiency of the Republican budgetary programs in the course of the Republican budget execution;
drawing up of statements on budget execution as well as drawing up of statistical reports on public finance and property and on formation and use of the National Fund of the Republic of Kazakhstan;
ensuring the maintenance of budgetary accounting;
develoment and improvement of budgetary accounting and, accounting and reporting in the budget system;
development of reporting forms on financial control and procedure of its drawing up and submission;
performance of functions in accounting and auditing, including in licensing of audit within its competence;
coordination of state procurement process and maintenance of control over organization and carrying out of state procurement, in accordance with the Republic of Kazakhstan Law on State Procurement;
ensuring receipt of taxes, levies and other obligatory payments to the budget and other receipts to the budget, completeness and timeliness of transfer of compulsory pension contributions and social contributions to the State Fund for Social Insurance, transfer to the National Fund of the Republic of Kazakhstan of a part of budget receipts from the primary sector entities;
ensuring public regulation of turnover and production of ethyl alcohol and alcohol production, tobacco products, particular kinds of oil products and tax control;
ensuring examination on compliance with the legislation of the Republic of Kazakhstan of activities of public financial control objects regarding execution, maintaining of records and reporting on execution of the Republican and local budgets, assessment of their execution, utilization of grants, public assets, state guaranteed loans, sales proceeds of the public institutions which remain at their disposal;
organization of work on approval and introduction of amendments into summary plans of receipts and Republican budget financing, grant of permission by the Republican budgetary programs administrator, registration of civil law transactions of public institutions, making of payments under obligations of public institutions;
provision of public control over accuracy of drawing up and approval of financing plans for public institutions financed from the Republican budget;
carrying out management of customs in the Republic of Kazakhstan and ensuring compliance with the customs and other legislation of the Republic of Kazakhstan, control over the execution of which is assigned to the customs authorities;
provision of public control over bankruptcy procedures (except for banks and insurance (reinsurance) companies), extrajudicial procedures of bankrupt liquidation, and measures on rehabilitation procedure application with respect to insolvent debtors;
organization of state property and privatization control system;
improvement of collection forms and methods for governmental reporting on public revenues;
provision within its competence of mobilization work and protection of state secrets;
coordination and provision of performance of tasks and functions by the Ministry’s agencies.
11. The Ministry is entitled to:
request and receive from public bodies, other organizations and individuals the information required to perform the functions assigned to the Ministry;
issue within its competence the normative legal acts obligatory for execution by all public bodies, other organizations and individuals;
cancel or suspend the orders, other acts of committees and public organizations which are under the authority of the Ministry of Finance;
hold, use and as provided for by the legislative acts and the Government of the Republic of Kazakhstan to dispose of public participation in joint-stock companies and other property which is in the ownership of the Republic;
perform functions of the body of public management of the Republican state enterprises which are within competence of the Ministry;
withdraw budget funds and suspend financing as provided for by the budgetary legislation;
receive from the local executive bodies summary data on the approved budget of oblasts, Astana and Almaty cities and monthly reports on the execution thereof, as well as monthly budget expenditure reports from public bodies financed from the Republican budget;
assess reasons of violation of budgetary legislation requirements of the Republic of Kazakhstan on the Republican and local budgets execution, as well as conduct feasibility and economic efficiency study;
carry out international cooperation within the competence of the Ministry.
3. Ministry’s Property
12. The Ministry holds, subject to the right of day-to-day management, separate property.
The Ministry’s property consists of the property transferred to it by the state, as well as other property, value of which is shown in the balance of the Ministry.
13. The property assigned to the Ministry shall be attributed to the Republican property.
14. The Ministry has no right to alienate at its option or otherwise dispose of the property assigned to it and property purchased at the expense of funds allocated under the financing plan as otherwise provided for by the legislative act.

4. Organization of the Ministry’s Activities

15. The Ministry and its agencies, including their territorial subdivisions, constitute an integrated system of the Ministry of Finance of the Republic of Kazakhstan.
16. The Minister is appointed and dismissed by the President of the Republic of Kazakhstan. The Minister has a deputy (deputies (Vice Ministers)). The deputy (deputies) Minister is appointed and dismissed by the Government of the Republic of Kazakhstan on presentation of the Minister.
17. The Minister organizes and supervises over the Ministry’s activities and is personally responsible for fulfilment of tasks assigned to the Ministry and performance of its functions.
18. For these purposes, the Minister:
determines the duties and terms of reference of its deputies and heads of the Ministry’s structural subdivisions;
according to the legislation and Ministry’s employee post nomenclature approved by the Minister of Finance of the Republic of Kazakhstan appoints and dismisses the Ministry’s employees, including heads of territorial bodies of its agencies other than tax and customs bodies;
in the procedure established by the legislation, imposes disciplinary sanctions on the employees of the Ministry;
signs the Ministry’s orders;
within its competence approves statutes on structural subdivisions of the Ministry;
approves structure and staff number of the Ministry within the staff number limit approved by the Government of the Republic of Kazakhstan;
represents the Ministry in all public bodies and other organizations according to the current legislation;
submits to the President of the Republic of Kazakhstan proposals on awarding special senior officer ranks to the customs bodies’ employees.
19. Decisions made by the Ministry are in the form of Orders of the Minister or an acting person.
20. The Ministry has a board which is an advisory body. The number and personal structure of the Board is approved by the Minister from amongst heads of territorial subdivisions of the Ministry.
21. Other issues on organization of the Ministry’s activities, rights and duties of the officials, competence and powers of structural subdivisions providing its activities are established by the rules of the Ministry, statutes on the structural subdivisions duly approved.

5. Reorganization and Liquidation of the Ministry

22. The Ministry is reorganized and liquidated in accordance with the legislation of the Republic of Kazakhstan.

Approved
by Resolution No. 1119
of the Government of
the Republic of Kazakhstan
dated 28 October 2004

List of Organizations which are under the Authority of the Ministry of Finance of the Republic of Kazakhstan <*>

Note. List as amended by the Resolution No. 1377 of the Government of the Republic of Kazakhstan dated 24 December 2004.

Appendix
to Resolution № 1119 of
the Government of the Republic
of Kazakhstan dated
October 28, 2004

List of Some Invalid Resolutions of the Government of the Republic of Kazakhstan

1. Resolution № 207 of the Government of the Republic of Kazakhstan dated March 6, 1999 “Issues of the Ministry of Finance of the Republic of Kazakhstan” (CPGA of the Republic of Kazakhstan, 1999, № 8, p.59).
2. Resolution № 392 of the Government of the Republic of Kazakhstan dated April 9, 1999 “On Introduction of Amendments and Additions to Some Resolutions of the Government of the Republic of Kazakhstan” (CPGA of the Republic of Kazakhstan, 1999, № 12, p.118).
3. Paragraph 3 of the Resolution № 934 of the Government of the Republic of Kazakhstan dated July 6, 1999 “On Local Financial Bodies”.
4. Paragraph 2 of Amendments to be introduced to some resolutions of the Government of the Republic of Kazakhstan approved by Resolution № 951 of the Government of the Republic of Kazakhstan dated July 9, 1999 “On Renaming of Republican State Entity “Central Computer Center of the Ministry of Finance of the Republic of Kazakhstan” (CPGA of the Republic of Kazakhstan, 1999, № 34, p.303).
5. Subparagraph 2) of Paragraph 3 of the Resolution № 1046 of the Government of the Republic of Kazakhstan dated July 23, 1999 “On Privatization of Republican State Entity “Esep”.
6. Paragraph 3 of Amendments and Additions to be introduced to some resolutions of the Government of the Republic of Kazakhstan approved by Resolution № 1093 of the Government of the Republic of Kazakhstan dated August 2, 1999 “On Introduction of Amendments an Additions to Some Resolutions of the Government of the Republic of Kazakhstan” (CPGA of the Republic of Kazakhstan, 1999, № 40, p.343).
7. Paragraph 3 of Amendments to be introduced to some resolutions of the Government of the Republic of Kazakhstan approved by Resolution № 1301 of the Government of the Republic of Kazakhstan dated September 3, 1999 “On Introduction of Amendments to Some Resolutions of the Government of the Republic of Kazakhstan” (CPGA of the Republic of Kazakhstan, 1999, № 45, p.403).
8. Resolution № 48 of the Government of the Republic of Kazakhstan dated January 11, 2000 “On Approval of Statute on the Ministry of Finance of the Republic of Kazakhstan” (CPGA of the Republic of Kazakhstan, 2000, № 2, p.20).
9. Resolution № 1880 of the Government of the Republic of Kazakhstan dated December 21, 2000 “On Introduction of Amendments to Resolution № 207 of the Government of the Republic of Kazakhstan dated March 6, 1999” (CPGA of the Republic of Kazakhstan, 2000, № 55, p.609).
10. Subparagraph 1) of Paragraph 6 of Resolution № 1127 of the Government of the Republic of Kazakhstan dated October 15, 2002 “Some Issues of the Public Property and Privatization Committee at the Ministry of Finance of the Republic of Kazakhstan” (CPGA of the Republic of Kazakhstan, 2002, № 35, p.376).
11. Paragraph 2 of Amendments and Additions to be introduced to some resolutions of the Government of the Republic of Kazakhstan approved by Resolution № 1101 of the Government of the Republic of Kazakhstan dated August 23, 2001 “On Reorganization of Republican State Entity on the basis of economic control rights “Rehabilitation Fund” at the Ministry of Finance of the Republic of Kazakhstan” (CPGA of the Republic of Kazakhstan, 2001, № 30, p.392).
12. Paragraph 1 of Resolution № 962 of the Government of the Republic of Kazakhstan dated September 3, 2002 “Some Issues of the Ministry of Finance of the Republic of Kazakhstan” (CPGA of the Republic of Kazakhstan, 2002, № 29, p.322).
13. Resolution № 144 of the Government of the Republic of Kazakhstan dated February 7, 2003 “On Introduction of Amendments to Resolution № 962 of the Government of the Republic of Kazakhstan dated September 3, 2002” (CPGA of the Republic of Kazakhstan, 2003, № 7, p.72).
14. Subparagraph 1) of Paragraph 5 of Resolution № 501 of the Government of the Republic of Kazakhstan dated May 30, 2003 “On Establishment of Joint-Stock Company “Investment Fund” (CPGA of the Republic of Kazakhstan, 2003, № 23-24, p.222).
15. Subparagraph 1) of Paragraph 1 of Resolution № 1004 of the Government of the Republic of Kazakhstan dated September 30, 2003 “On Introduction of Amendments to Some Resolutions of the Government of the Republic of Kazakhstan” (CPGA of the Republic of Kazakhstan, 2003, № 39, p.414).
16. Paragraph 1 of Amendments and Additions to be introduced to some resolutions of the Government of the Republic of Kazakhstan approved by Resolution № 1267 of the Government of the Republic of Kazakhstan dated December 18, 2003 “On Some Issues of Activities of OJSC “Eximbank Kazakhstan” and CJSC “Rehabilitation Fund” (CPGA of the Republic of Kazakhstan, 2003, № 46, p.522).
17. Paragraph 2 of Amendments and Additions to be introduced to some resolutions of the Government of the Republic of Kazakhstan approved by Resolution № 68 of the Government of the Republic of Kazakhstan dated January 22, 2004 “On Some Issues of JSCs “Investment Company: Investment Fund of Kazakhstan”, “Development Bank of Kazakhstan”, “National Innovation Fund” (CPGA of the Republic of Kazakhstan, 2004, № 2, p.34).
18. Paragraphs 3 and 12 of Amendments and Additions to be introduced to some resolutions of the Government of the Republic of Kazakhstan approved by Resolution № 695 of the Government of the Republic of Kazakhstan dated June 24, 2004 “On Renaming of Government Institutions, territorial bodies of the Treasury Committee at the Ministry of Finance of the Republic of Kazakhstan, introduction of amendments and additions and declaration invalid of some resolutions of the Government of the Republic of Kazakhstan” (CPGA of the Republic of Kazakhstan, 2004, № 25, p.328).
19. Paragraph 2 of Amendments and Additions to be introduced to some resolutions of the Government of the Republic of Kazakhstan approved by Resolution № 825 of the Government of the Republic of Kazakhstan dated August 3, 2004 “On Some Issues of Organizations being under the authority of the Ministry of Finance of the Republic of Kazakhstan and Ministry of Economy and Budget Planning” (CPGA of the Republic of Kazakhstan, 2004, № 29, p.383).