In this section, you can learn about the the basic laws and decrees of the Government, which guide financial reporting under a grant project.
Also, you will find answers to frequently asked questions.
Answer: Any transfers of funds between approved budget categories can be made after fling a respective modification request with an SFK Program, indicating the amount of budget modification, types of expenses subject to change, and an explanation of the reasons for the change. (Annex: Request for Modification of the Grant Agreement).
Answer: Recording of expenses within the framework of grant financing must meet the accounting requirements in force in the Kyrgyz Republic. When preparing budget for the “Salaries” category, one must be guided by KR Instruction on the Procedure for Registering Payers, Paying and Recording Insurance Contributions under Compulsory State Social Insurance and Section 3. Personal Income Tax (Article 76, Article 84, Article 89 of Chapter 14) of the KR Tax Code.
Answer: Financing of the grant project is provided in Kyrgyz soms at the exchange rate on the day of transfer of funds by the Foundation.
Answer: To make settlements with grantees, SFK uses a non-cash form of payment. Settlements under grants with organizations are made as a transfer of funds to their settlement accounts specified in respective Grant Agreements (except if a special financing procedure is established for the program), payment of invoices for goods and services provided by grantees, necessary for the project, and the transfer of material assets to the grantee under an acceptance certificate.
Answer: Bank’s services shall be paid out of grant funds provided to the grantee. In the financial report, they should be included under the “Administrative and other direct costs” category.
Answer: According to the Terms and Requirements for Using an SFK Grant, a grant project cannot be financed at the expense of another grant project.
Answer: Organizations do not have to open a special bank accounts and/or a separate cash book for recording the movements of grant funds (see Terms and Requirements for Using an SFK Grant).
Answer: When purchasing equipment, you must be guided by the Rules for the Acquisition and Use of Equipment, included in Terms and Requirements for Using an SFK Grant.
Stationery and other consumables provided for by the project can be purchased at a bazaar only if they are not available in stores. When purchasing goods at a bazaar, grantees must obtain a Purchase Receipt containing the seal of the bazaar supervisor, the copy of the seller’s patent or the patent number, the validity period, indicating the district branch of the Tax Service that issued the document. The following lines must also be filled in: “Payer”, “Cash recipient”, and “Amount in words”.
Note: A write-off certificate should be made for all purchased goods and consumables.
Answer: Grant funds are spent in Kyrgyz soms, while the accrual of expenses and financial statements must use the exchange rate as on the date of transfer of funds by the Foundation.
Answer: Per diem expenses should be paid in accordance with the rate contained in the approved project budget. Grantees should also be guided by the KR Government Decree No. 635 dated October 12, 2001, which determines the daily expenses rate. The amount paid in excess of the rates specified in the Decree should be added to salaries and taxed accordingly.
Answer: No, SFK does not accept the expenses incurred in excess of the rates approved by SFK (Travel Expenses).
Answer: All payments must be made in the national currency – the Kyrgyz som.