The Ministries of Finance of the Republic of South Ossetia and the Russian Federation signed an additional agreement on the procedure on financial assistance to the reconstruction, socio-economic development and support to balanced budget of the Republic of South Ossetia.
On 6 October, the Ministries of Finance South Ossetia and Russia have concluded Supplementary Agreement no. 1 to the Agreement on the procedure for financial assistance to the reconstruction, socio-economic development and support to balanced budget of South Ossetia. For the South Ossetian side, the document was signed by the Prime-Minister Vadim Brovtsev and for the Russian side, Deputy Finance Minister Anton Siluanov signed the agreement.
The Supplementary Agreement for the first time regulates the procedure for provision of financial assistance to South Ossetia from the Russian federal budget, and it contains mechanisms controlling the expenditure of these funds.
The sides agreed that henceforth the Audit Chamber of the Russian Federation has the right to initiate annual review on the management of funds allocated from the Federal budget to the budget of South Ossetia.
In accordance with the Supplementary Agreement, the Ministry of Finance of South Ossetia sends a quarterly report (not a monthly report, as it was before) on the funds spent to the Ministry of Finance of the RF and applies for the next quarter funding.
Moreover, after the report is submitted, the Finance Ministry of the RF will analyze both the report and a new application of the Ministry of Finance of South Ossetia. If clarifications on either the report or the application are needed, the Ministry of Finance of the RF sends an inquiry to the Ministry of Finance of South Ossetia.
If the Ministry of Finance has no comments to the report and the application, the Russian Ministry proceeds with preparing necessary documents for allocation of financial aid to South Ossetia.
The Office of the Government of South Ossetia
