Finance

Finance

Azerbaijan, World Bank hold next round of talks on financial accountability project

17 February 2009 13:32 (UTC +04:00)

BakÄ±. Nicat Mustafayev â€“ APA-Economics. The Government of Azerbaijan and the World Bank have strated the next round of negotiations on the Corporate and Public Sector Accountability Project.
The WB Office in Baku said the WB Officer for Financial Management Jan Til led a delegation to Baku for discussion.
â€œBy February 27, the mission will be discussing the project with the Ministry of Finance and with a number of organization subject to the projectâ€.
AN IBRD Specific Investment Credit will finance US$11 million of the estimated total project cost of US$24 million. The balance of US$13 million will be provided by Government counterpart finding of US$8 million; and a Japan Policy and Human Resource Development (PHRD) Co-financing Grant of US$3 million which will support embedding IFRS in PIEs. A Swiss Government/SECO Grant will extend US$2 million to finance the strengthening of public sector accountability.
There are four components to the project. The first component is the Corporate Sector Component. This component would support the corporate sector in implementing appropriate accounting standards; ensure the sustainability and transparency of these interventions through the establishment of appropriate legal and institutional frameworks; and strengthen the statutory audit function. The second component consists of Public Sector Accountability. This component aims to enhance public sector accountability through the implementation of the Governmentâ€™s public sector accounting reform strategy, being the strategy currently being drafted to implement that part of the accounting Law that requires budget organizations and off-budget state funds to prepare financial statements in accordance with National Accounting Standards for Budget Organizations which in turn are based on International Public Sector Accounting Standards.
The third component consists of strengthening accounting, auditing and financial management capacity.
This component will build long-term capacity in accounting, auditing and financial management. It will include the creation of an Azerbaijan Center for Professional Accounting, Auditing Training Education and Research (ACPATER) which will be subordinate to the Ministry of Finance, and have broad responsibility for strengthening Azerbaijan accounting, auditing and financial management capacity, including the implementation of this component. Finally the fourth component consists of project management.