ACCOUNTING REFORM IN THE REPUBLIC OF TAJIKISTAN Implementation

ACCOUNTING REFORM IN THE REPUBLIC OF TAJIKISTAN Implementation and training 2015 -2016 Developed and adopted: Unified Chart of Accounts 2014 -2015 Reporting 2017 - 4 National FOGST Standards were adopted 2014 - 10 National FOGST Standards were adopted 2010 - Accounting Reform Strategy for 2011 -2018 was approved 2009 - Public Financial Management Strategy for 2009 -2018 was approved Prepared by: Rustam Boboev PEMPAL, Russian Federation, Moscow (October, 23 -25 2019) 1

BUDGET CLASSIFICATION 1. Departmental Classification 2. Income Classification 3. Economic Budget Classification 4. Functional Budget Classification 5. Financial Sources Classification 6. Program Classification 7. Unified Chart of Accounts 8. Territorial Classification 2

CHART OF ACCOUNTS STRUCTURE Bookkeeping accounts in CA Code consist of six numbers: - the first number indicates the section it belongs to; - the second and the third numbers indicate the account (group); - the last three numbers refer to subsidiary account. CA includes seven sections: Chart of Accounts Code (CA Code) 1 00 000 2 00 000 3 00 000 4 00 000 5 00 000 6 00 000 7 00 000 Name Assets Liabilities Net Assets Revenues Expenses Net operating balance Off-balance-sheet accounts 3

BUDGET CLASSIFICATION INTEGRATION Revenues Government Finance Statistics Manual 2001 CA 1 Revenues 101 Tax revenues 10101 Income and profit taxes 1010101 Personal income tax 11115 411150 1010102 Profit tax 11121 411210 10102 Social taxes 1010201 Social tax (1% for state-financed entities) 1211 417110 4

BUDGET CLASSIFICATION INTEGRATION Economic Names of Budget EBC Classification articles (EBC) article 2 Expenses Employee compensati 21 on and tax payment Employee 211 compensati on 2111 Salary EBC subarticles Government Finance Statistics Manual 2001 Names of EBC subarticles 0 20000 0 21100 0 21110 CA 2111 1 Salary in cash 21111 2111 510100 2111 2 Salary in physical 21112 terms 2112 510200 2111 3 Bonus payment 21113 2111 510300 2111 4 Payment of royalties 21114 2111 510400 Other payments 5

BUDGET CLASSIFICATION INTEGRATION Example of RB budget income line: AD 12304001 FSC SC 111 0401 IC 101010102 CA 411150 411210 BUDGET 10 500, 00 5 000, 00 Example of accounting record for RB revenue recognition of paid income tax: Debit Credit 111210 223110 123110 411150 Budget Code BC 111 1010101 Note Central Committee (bank) accounting record CC Accounting record 6

BUDGET CLASSIFICATION INTEGRATION Example of budget expense line of RB state-financed entity: DC FBC PC FSC SC 11401001 01102 001003 111 0401 EBC 21111 22142 CA 510100 512420 BUDGET 1 500, 00 500. 00 Example of accounting record for education and re-education payment from RB: Debit 512420 Credit 211961 111210 512420 111253 2* 2* 211971 111253 211971 418310 BC 22142 Budget Code Note 111 CC accounting 111 records 111 Accounting 111 records in 111 statefinanced 111 entities 7

BUDGET CLASSIFICATION INTEGRATION Thank you for your attention! 8