Based on its 2025 Work Plan, the Chamber of Accounts conducted an external state financial control measure at the State Tourism Agency, covering the years 2021–2024.
Referring to the Chamber, the editorial office reports that the audit aimed to assess the compliance of state funds and state property management with legislation.
As a result of the audit, the following key deficiencies were identified:
During the execution of funds allocated from the state budget in 2021-2024, the period covered by the audit, instances were found where functions were transferred to other entities despite the allocation of necessary funds for financing the activities of the Agency's subordinate bodies.
Although the “Regulations on the State Tourism Agency of Azerbaijan” do not stipulate specialist (personnel) training for the Agency's functional activities and duties, a total of 899.5 thousand manats in budget funds were paid in 2021-2023 based on agreements concluded between Azerbaijan Tourism and Management University and IMC University of Applied Sciences Krems, Austria, for the development and implementation of the IMC Transnational program.
During the audit period, funds amounting to 330 thousand manats, covering a significant number of operations, were not spent according to the paragraphs of the functional and economic classification, in violation of the requirements of the unified budget classification.
While procurement contracts for the collection, transportation of garbage, fallen leaves, household waste, sweeping of areas, planting, pruning of trees, and other works collected in the territories of the respective 4 reserves of the Center for Reserve Management should have been carried out at the expense of those entities, the Agency paid 835.5 thousand manats during the audit period.
Despite making relevant requests for the transfer of funds to the “Azerbaijan Tourism Board” and the “Center for Reserve Management” for 2023-2024, and in the absence of corresponding approval or response to these requests, the Agency evaded the requirement to transfer all treasury account balances to a single treasury account at the end of the year by transferring a total of 18.5 million manats in budget funds to its subordinate bodies at the end of the year during the audit period.
Violating the requirements of the “Law on the Budget System,” the Agency allowed funds to be held in letter of credit accounts and, in some cases, did not return funds to the budget. Of the funds held in letter of credit accounts, 3 million 89.7 thousand manats were settled (executed) for works and services performed in 2022, 8 million 789.2 thousand manats in 2023, and of the remaining 965.4 thousand manats at the end of the year, 921.8 thousand manats were settled for works and services performed in 2024, with only 43.5 thousand manats returned to the budget.
During the years covered by the audit, the Agency's accounting department did not have a stable accounting software program; instead, the calculation of employee salaries, accounting for debtors and creditors, inventory, fixed assets, and material reserves, processing of memorial orders, and preparation of trial balances were carried out with the help of a spreadsheet program. This, in turn, created conditions for distortions in financial statements.
Audit evidence collected on a selective basis for repair and restoration works carried out during the years covered by the audit revealed that the cost of works not stipulated in the estimate was paid, additional funds were paid to the contractor by increasing the cost and volume of some works, and excessive use of state funds occurred due to several deficiencies.
During the implementation of republican-level events, existing norms and requirements were not adhered to in some cases, and the non-fulfillment of these and contractual conditions led to the excessive expenditure of state funds.
Lack of control over the execution of contractual obligations, as well as procurements related to the placement of promotional information in foreign countries, ultimately affected the effectiveness of activities in this area and limited the possibilities for timely execution of funds.