http://www.ewi.info/system/files/reports/Modernizing%20Municipal%20Finance%20of%20the%20Kaliningrad%

6.1. Improving the preparation and use of RRMAA in the budget process requires the following changes: 1. RRMAA should reflect the following: new budget service technologies (budget financing of services rendered by non-profit organizations, etc.); quality standards and evaluation; organizational changes, measures to train personnel and introduce innovations with matching indicators.

2. RRMAA should contain instructions regarding inter-agency coordination and risk management.

3. It would be expedient to divide the preparation of RRMAA into two stages: • The first part of reports for the period under review (reports on the implementation of measures included in RRMAA) should be submitted at the end of the first quarter along with a report on budget performance and used for evaluating the performance of ministries and agencies in the reporting period; • The full text of a report containing proposals on performance and the justification of financing should be included in the budget process when the budget is drafted.

4. Spending limits (target figures) should be communicated by the Finance Ministry to other ministries and agencies in two versions -– conservative and optimistic – so that ministries and agencies could ensure that their budget requests justify expenditures in two ways: based on current obligations and based on new obligations.

5. It is necessary to develop a procedure and identify agencies responsible for preparing (Finance Ministry and the Ministry of Economic Development and Trade) and carrying out (Government Commission) the evaluation of BPE performance on the basis of the first part of RRMAA. 41