On signing an Agreement on the procedure for the formation and execution of the Budget of the Shanghai Cooperation Organization
Decree of the President of the Republic of Kazakhstan dated November 29, 2017 No. 593.
In accordance with subparagraph 1) I HEREBY DECREE paragraph 2 of Article 10 of the Law of the Republic of Kazakhstan dated May 30, 2005 "On International Treaties of the Republic of Kazakhstan":
1. To approve the attached draft Agreement on the procedure for the formation and execution of the budget of the Shanghai Cooperation Organization.
2. Bakytzhan Abdirovich Sagintayev, Prime Minister of the Republic of Kazakhstan, signed an agreement on the procedure for forming and executing the budget of the Shanghai Cooperation Organization on behalf of the Republic of Kazakhstan, authorizing amendments and additions that are not fundamental.
3. This Decree shall enter into force from the date of its signing.
President of the Republic of Kazakhstan
N. NAZARBAYEV
Approved by Decree of the President of the Republic of Kazakhstan on November 29, 2017 No. 593
Project
Agreements on the procedure for the formation and execution of the budget of the Shanghai Cooperation Organization
(* Entered into force on January 1, 2018 - Bulletin of International Treaties of the Republic of Kazakhstan, 2018, No. 3, Article 23)
The Member States of the Shanghai Cooperation Organization, hereinafter referred to as the Parties,
Guided by article 12 of the Charter of the Shanghai Cooperation Organization of June 7, 2002,
have agreed on the following:
Article 1
For the purposes of this Agreement, the following basic concepts are used:
The SCO or the Shanghai Cooperation Organization;
Member States - SCO member States;
Secretary General - Secretary General of the SCO;
The permanent bodies of the SCO are the SCO Secretariat, the SCO Regional Anti-Terrorist Structure (hereinafter referred to as the RATS) and other permanent structures established within the framework of the SCO.;
Director - Director of the RATS Executive Committee;
Advances are amounts approved by the Council of Heads of Government (Prime Ministers) of the SCO Member States (hereinafter referred to as the CST) in accordance with the size of the share contributions, which are transferred by the Member states to the SCO budget at a time and returned to the Member States in case of termination of the Organization's activities or their withdrawal from it.;
The budget (regular) is a form of formation and use of funds intended for financial support of the tasks and functions of the SCO permanent bodies. It is formed for the relevant budget year from the contributions of Member States and other income.;
Fiscal year - the period from January 1 to December 31 inclusive;
Contributions (equity) - amounts established (accrued) for the SCO member States to finance expenses related to the activities of the SCO permanent bodies in a given financial year;
Internal audit - control over the formation of expenses, identification of deviations from planned targets and standards, analysis of the causes of deviations, search for reserves of financial and economic activities and provision of necessary information to the Secretary General;
An external audit is an audit of the financial and economic activities of the SCO carried out by a person(s) or an institution appointed by the CST;
Financial control is the verification and control, both internal and external, of the procedure for drawing up, reviewing and executing the budget, as well as the replenishment, distribution and use of budgetary funds.;
Commitment - entering into contractual relations or other types of transactions involving financial responsibility of the SCO, for which appropriate permits have been obtained.;
Receipts - funds received by the SCO budget in the form of fixed (accrued) equity contributions and other income;
Other income - all types of income, with the exception of designated equity, targeted voluntary contributions and gifts in cash, as well as amounts received as a result of direct reimbursement of expenses in the current financial period and advances received;
The General Fund is an account opened for accounting of receipts and expenses for the regular budget of the Organization.;
The Working Capital Fund is an account opened to account for one-time receipts from the SCO member States in order to finance regular budget expenditures until the receipt of established contributions from the member States.;
A reserve fund is an account opened to account for cash flows in order to finance unforeseen and extraordinary expenses related to the activities of an Organization.;
A trust fund is an account opened to account for cash flows in order to finance targeted expenses related to the Organization's activities.;
Special accounts are accounts used to account for the flow of funds allocated for the implementation of certain activities and goals.
Article 2
The Organization's budget is drawn up for a period of one calendar year, which is also the fiscal year and is approved by the State Budget Committee.
The Organization's budget covers all receipts and expenses for the fiscal year to which they relate, and is formed in US dollars. Annual contributions and advances are accrued and paid in US dollars.
Article 3
The Member States shall make annual contributions to the budget of the Organization in accordance with the Annex, which is an integral part of this Agreement.
The amount of shared contributions may be changed at the suggestion of one or more Member States and with the consent of other member States, as well as in the event of a member State withdrawing from the Organization or a new state joining the SCO as a Member.
The contribution of the new SCO member State should be lower than the minimum contribution of the SCO founding States.
The changed amounts of equity contributions are approved in accordance with the procedure provided for in Article 11 of this Agreement.
Article 4
The payment of shared contributions by the member States is made separately to the accounts of the SCO permanent bodies within the approved budget.
Assessed contributions are payable in full within thirty days of receipt from the Secretary-General of notification of contributions due or by the first day of the calendar year.
If a Member State is unable to pay the due contributions in full within these deadlines, it may transfer them in stages, which it notifies the Secretary-General in advance. At the same time, during the first month of the first quarter, at least 30 percent of the total amount of mandatory (accrued) contributions must be transferred and at least 35 percent each during the first months of the second and third quarters.
If the budget of the Organization is not approved before the beginning of the financial year, Member States shall transfer monthly contributions in the amount of 1/12 of the regular budget of the previous budget year prior to the approval of the budget of the Organization.
Article 5
The Secretary General forms the draft budget for the next financial year based on the principles of reasonableness, efficiency and real needs in accordance with the proposals of the permanent SCO bodies.
The Secretary-General shall transmit the draft budget to all Member States no later than eight months before the beginning of the next financial year. The draft budget is reviewed by an Ad Hoc Working Group of Experts from the SCO Member States on Financial and Budgetary Issues and, after approval by the Council of National Coordinators of the SCO Member States (hereinafter referred to as the CPC), submitted to the CST for approval.
After the approval or revision of the budget of the CST Organization, the Secretary-General informs the Member States of the contributions and advances due.
The Secretary-General periodically provides Member States with information on the receipt of assessed contributions.
The Secretary-General shall, on the basis of this Agreement, develop financial regulations and rules and, if necessary, amend them. In agreement with the Council of People's Commissars, he submits them for approval by the CST.
The annual report on the Organization's budget performance is prepared by the Secretary General, reviewed by a Special Working Group of Experts from the SCO Member States on Financial and Budgetary Issues and, with the approval of the Council of People's Commissars, sent for approval by the CST.
The Secretary-General may delegate these powers in writing to any of his deputies.
Article 6
The Secretary General and the Director have the right, within the limits of the budget amount approved by the CST, to accept obligations and make payments during the financial year to which they relate.
The Secretary General and the Director, within 3 months after the end of the financial year, fully cover the obligations for goods and services delivered during the same financial year, as well as other remaining financial obligations.
If the budget is not approved by the CST before the beginning of the financial year, the Secretary General and the Director are authorized to make commitments and make payments on a monthly basis within 1/12 of the amount of the previous regular budget.
Article 7
A General Fund is established to account for regular budget receipts and expenditures. The source of its funds is equity contributions paid by Member States for the current financial period, other income, as well as funds provided from the Working Capital Fund established in accordance with this article.
The balances of the General Fund based on the results of the external audit are to be offset to the SCO member States that were not in arrears during the period under review, against the payment of equity contributions for the next financial year in proportion to the established scale of contributions.
A Working Capital Fund is established to cover cash needs until the receipt of the established equity contributions. The source of its funds are advances from Member States.
A Reserve Fund may be established to cover unforeseen and extraordinary expenses related to the Organization's activities. The decision on the establishment of the reserve fund, as well as the amount of funds in it and the procedure for its use are determined by the State Tax Committee on the recommendation of the Council of People's Commissars.
The Secretary General may establish trust funds and special accounts in agreement with the Council of People's Commissars. The purpose and maximum amount of funds for each trust fund and special account should be clearly defined.
The above funds and accounts are managed in accordance with the financial regulations and rules referred to in Article 5 of this Agreement.
Voluntary contributions, gifts in monetary or other form may be accepted by the Secretary General with the approval of the Council of People's Commissars and the Director with the approval of the Council of RATS and in consultation with the Secretary General in accordance with the established procedure, provided that the purpose of these funds does not contradict the goals and objectives of the Organization.
Any form of borrowing by permanent SCO bodies of funds is not allowed.
Article 8
The Secretary General, who is the chief official of the Organization, is responsible for all financial aspects of the Organization's activities and reports to the Council of People's Commissars and the CST for the proper and effective management of the Organization's financial resources in accordance with this Agreement.
The Organization provides the necessary financial control mechanism, including internal and external audits.
Article 9
Unpaid amounts of accrued annual contributions by a Member State are debts owed by that State to the Organization, which are subject to mandatory repayment.
Starting from October 1 of this year, Member States that have not paid their assessed contributions in full will have to pay interest in the amount of 0.1% per month on the amount owed.
A Member State whose outstanding amount exceeds the amount of contributions due from it for the previous fiscal year may be deprived of the right to nominate its citizens to positions in permanent SCO bodies until the arrears are fully paid off. The Council of Ministers of Foreign Affairs (hereinafter referred to as the Council of Ministers of Foreign Affairs) may decide not to apply this measure if it finds that the non-payment is caused by circumstances beyond the control of such a State.
In respect of a Member State whose arrears exceed the amount of contributions due from it for the previous two fiscal years, a decision may be taken to suspend its membership in the Organization in accordance with the procedure provided for in Article 13 of the Charter of the Shanghai Cooperation Organization. The SGG may, on the recommendation of the Council of Foreign Ministers, not resort to this measure if it finds that the non-payment is caused by circumstances beyond the control of such a State.
The financial obligations of a Member State to the Organization must be fully fulfilled regardless of the termination of membership (suspension of membership, voluntary withdrawal) of this state to the SCO.
The procedure for resolving specific issues related to the implementation of this article is determined by the financial regulations and rules referred to in Article 5 of this Agreement.
Article 10
In the event of termination of the activities of the Organization or its individual permanent bodies, the procedure for resolving related financial and property issues, including issues of repurchase and sale of the Organization's property, is determined by the CCP, taking into account the provisions of this Agreement.
The funds received from the sale of movable and immovable property, after fulfilling existing obligations, are distributed among the Member States in proportion to the amount of contributions determined for the current budget year.
In case of a shortage of funds to fulfill obligations in connection with the termination of the Organization's activities, it is covered by the Member States in proportion to the amount of contributions determined for the current budget year.
In case of withdrawal or exclusion of a Member State from the Organization, the advances transferred by that State to the Working Capital Fund are returned to it. If this State is in arrears in the payment of mandatory contributions, the amount of funds returned is reduced by the amount of this debt. The debt that cannot be repaid through advances is repaid at the expense of the State.
Article 11
Amendments and additions may be made to this Agreement by decision of the Parties, which are formalized in separate protocols that are an integral part of this Agreement.
Article 12
Disputes arising from the interpretation or application of this Agreement shall be resolved through consultations and negotiations between the Parties.
Article 13
This Agreement is temporarily applied by the States parties to the SCO Charter from January 1, 2018 and enters into force from the date of receipt by the depositary of the fourth written notification of the Parties on their completion of the internal procedures necessary for the entry into force of the Agreement.
For States that have signed this Agreement and completed domestic procedures later, it shall enter into force on the date of notification to the depositary of the completion of such procedures.
This Agreement is concluded for an indefinite period.
After the entry into force of this Agreement, it is open for accession by any State that has acceded to the Charter.
For the acceding State, this Agreement shall enter into force on the date of receipt by the depositary of the instruments of accession.
From the date of the beginning of the temporary application of this Agreement, the temporary application of the Agreement on the Procedure for the Formation and Execution of the SCO Budget dated May 29, 2003 and the Protocol on Amendments to the Agreement on the Procedure for the Formation and Execution of the SCO Budget dated November 24, 2003 shall cease.
Article 14
The SCO Secretariat is the depositary of this Agreement, which will send a certified copy to the Parties.
Committed in________ ___ _______2017 in a single copy in the Chinese and Russian languages, both texts being equally authentic.
For the Republic of India
For the Republic of Kazakhstan
For the People's Republic of China
For the Kyrgyz Republic
For the Islamic Republic of Pakistan
For the Russian Federation
For the Republic of Tajikistan
For the Republic of Uzbekistan
Annex to the Agreement on the Procedure for Forming and Executing the Budget of the Shanghai Cooperation Organization
THE SIZE OF THE CONTRIBUTIONS OF THE MEMBER STATES OF THE SHANGHAI COOPERATION ORGANIZATION
Republic of India - 5,9%
The Republic of Kazakhstan - 17.6%
People's Republic of China - 20.6%
Kyrgyz Republic - 8.8%
The Islamic Republic of Pakistan - 5,9%
Russian Federation - 20.6%
Republic of Tajikistan - 6%
The Republic of Uzbekistan - 14.6%
President
Republic of Kazakhstan
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