Vocabulary

Squandering проматывание (средств)

Infringement нарушение (законов)

Wastefulness расточительность

Investigating authorities следственные органы

To institute proceedings начинать судебное разбирательство

Erroneous ошибочный

Breaches of the law нарушение закона

Consequence последствие

Legal base юридическая база

Shortcoming недостаток

To run the country’s finances управлять государственными финансами

To single out выделять, вычленять

To divert the money away отвлекать деньги от

For personal gain для личной выгоды

Embezzlement присвоение (чужих денег, имущества)

Defalcation присвоение чужих денег, растрата

On a smaller scale в меньшем объеме

State debt государственный долг

Misdeed преступление, оплошность

To meet requirements отвечать требованиям

Vigorous emergence энергичное, быстрое появление

Exercise 12. Answer the following questions:

1. What idea was erroneous?

2. What do the results of audits and inspections reveal?

3. How do Russians account for the numerous financial infringements?

4. What infringements are most frequent in Russia?

5. Do managers ever underreport their taxable profit on Russia?

6. Is there a legally established responsibility for the misuse of budget funds?

7. What are the functions of government auditing in Russia?

8. What measures do Russian auditors take when they detect financial misdeeds?

Exercise 13. Find the Russian equivalents for the following:

1. the controlling function of the state

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2. to prove to be true

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3. an active financial control

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4. to divert money away from the state purposes

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5. lucrative deals for personal gain

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6. returnable resources

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7. to underreport taxable profit

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8. legally established responsibility

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9. an efficient system of government auditing

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10. to control money circulation

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11. the use of credit resources

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12. external and internal state debt

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13. to detect financial misdeeds

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14. to hand reports to investigating authorities

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15. to institute proceedings

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Exercise 14. Find the synonyms for the words in italics:

1. Some people believed that under market conditions…

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2. Has this idea proved to be true?

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3. It’s clear now that the idea was erroneous.

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4. How can you account for so numerous financial infringements in Russia now?

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5. What infringements are most frequent?

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6. There is no legally established responsibility for the misuse of budget funds.

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7. Well, yes, we have, but on a smaller scale.

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8. There is an efficient system of government auditing in our country.

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9. What are the functions of government auditing in Russia?

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10. Investigating authorities institute proceedings on the basis of our reports.

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11. Generally, we focus on compliance of government agencies.

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12. We are also responsible for many other things.

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Exercise 15. Translate the sentences into Russian:

1. Results of audits and inspections reveal lots of breaches of the law, misuses of public money, misappropriations and numerous cases of budget funds squandering.

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2. The situation we are having now is a consequence of a weak legal base, shortcomings in running the country’s finances, absence of a legal base for an active financial control.

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3. I mean funds allocated as returnable resources and budget resources allocated as the state support for different branches of economy.

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4. In some cases, managers underreport their taxable profit, do not disclose income in accounting documents, start business operations without licenses, avoid paying excise duties, etc.

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5. There is no legally established responsibility for the misuse of budget funds, which causes irresponsibility, wastefulness, and criminal actions on the part of senior officials and managers.

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6. Generally, we focus on compliance of government agencies, juridical persons with financial legislation of the Russian Federation, we audit execution of the federal budget and extra-budget funds, control money circulation, use of credit resources, external and internal state debt, state reserves, safe keeping and use of state property.

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7. Investigating authorities institute proceedings on the basis of our reports.

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8. We must work to improve the system of financial control in Russia because it does not fully meet the present-day requirements.

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Exercise 16. Read the article below quickly to pick out the main economic indicators. Then study the vocabulary given after it.

Australia put on “alert negative” by Fitch IBCA

Fitch IBCA, the rating agency, yesterday placed Australia’s sovereign credit rating on “alert negative” because of the adverse impact of the Asian financial crisis on the country’s external debt position. Gross and net external debt, at 232 per cent and 157 per cent of foreign exchange receipts respectively, was much higher than other similarly rated sovereigns, such as Canada, the agency said.

This coupled with falling commodity prices and the fact that more than 60 per cent of exports go to Asia, exposed Australia to adverse shifts in investor sentiment and the threat of contagion. “The most important thing that’s changed is the external economic environment, which exposes Australia’s weakness on the external debt side,” Fitch said.

The move also covered the State of Queensland, the Commonwealth Bank of Australia (guaranteed notes) and National Australia Bank, which are also rated at the sovereign ceiling. In addition, the agency said external liquidity indicators offered little cause for comfort given that more than 40 per cent of Australia’s foreign currency debt has a maturity of less than one year, with similar proportion denominated in Australian dollar.

That exposed it to “roll-over risk” and exchange rate-induced sales of local currency-denominated liabilities. Debt service liabilities exceeded liquid foreign assets by a subnational margin, raising concerns about liquidity, Fitch said.

High external debt had translated into a widening deficit on investment income, which accounted for the whole current year account deficit. Falling commodity prices and declining export volumes could push the current account deficit out further, the agency said, to 6 per cent of gross domestic product or more.