Document Type: 
Document Number (FOIA) /ESDN (CREST): 
Release Decision: 
Original Classification: 
Document Page Count: 
Document Creation Date: 
December 22, 2016
Document Release Date: 
September 8, 2011
Sequence Number: 
Case Number: 
Publication Date: 
August 23, 1952
Content Type: 
PDF icon CIA-RDP80-00809A000700080065-0.pdf1.79 MB
Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0 t- f.: A:~Sif?t`ATit?iJ ~fi'fFtt~lYaD CEMRAL~I T'ELU~ AI .E :'w}E.PSCY REPORT IltFGAMbTYr~y Pt'YUl~! :c'~?R~EC~PE ~OCUMEW'~3 C~6t -Z6-Dl!7 ?RfikDCAS'.'8 BCD N0. lt01A1 r'UBLiSHEtl Book DATE DiST. ,yt' ? ~ tAug 195 19r'~+~"itE PE.THUSHz'D Yrotatly gie,g~, . ^ NG. J1 ?AGES 21 DATE' Pt6~'tlSHE? l,Ji~CUAGE ~ESt Rtveu ' Ca~ab S:iPFLEMENT Tn REPORT N0. sw66inr6oxnrn 1000Y611M rn~ela 161 gmnt,ars6t 67. 1#. 00010 01P7A 000106 t1i ?041'JO M 1III1D0061t 06i p 0: i. G, 11.001 OO.Y ~:: /i07006101M0000 iM 06060TOR lft 1.10I10f1 to Y11.1ML^W M W OM70tl6i1B! 1i000N n i R 06R. '.dC~IRG[ai p 11x0 OfOt d lOOOgL1F0? STAT STAT FOp Cole~sot Ga? ClIDCSOSLIYBAE : ?~r i~xs~r 2. 'to determine .causes o! fo~fu].lillment o! the plan aced factors tiaich lad to ezce?diag the place, taod to study the elSecta oa ~.he eeomaiy. tmthority, am! yeaz? o! publicatioa. Formtn rolerrta9 to ere illoetrated in the origiaal, aireil- atrle Sa C7A. x. FOTt COTiTROL am P1.aia Fvz.rzlu,t~rr Tha ttmeSn purposes far the control o! plea !u~liilment are: ' Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0 am tcatr a o! plaa fuli'111ateat. The title page to the boot is i~isaissg, 'Elms premtxttiag 3deirtilYeation txt the title, issuing.. 3. Ta coad~t po'liticai mmd ecoaosic annlyuee o! #8eee !actors and Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0 ar~nsaision Control oY plea Yulfillmeat is the planning unit is carried out by (a) the chi3t of l~YD planning wait au3 leediag.officiala at all levels wicnin the plou- aing unit (production manager, shop foramen, and others); (b) workers srithiu the pinaalag tmiC; (e) plannin;, organs; aa3 the plea eoatrol organ Curreucy Control and "Chozraachot" The purpose cf currency caatrol is t~ follov up on the fulfillment of the 6coG6eic piah, to discover deficieuciea; and to facilitate their removal. It consists of checking fulfillment of plerwed sasi?meata and economy measures as emrloved by each unit and ehova by the turnover of liquid Besets is their accounts. "Chozraschot" from tun Ruaeiea "Shozraschet," self'-auP3lciency] is a socialist diethod of planned msaegement, under vhic8 an enterprise must not ez- pend say more fuuss than ere nec~eesay for the fulfillment of the plea. This Frorkerfl '~acome interested in la;.?rrinr~ costa. They coatina~lly bard Chair eYforts toward makin3 the enterprise more profltable and provi32ng the atatr, with a etoaete;ry surplus with which production cau be ezptnded, chile, at the sane tip, than fulfill all assignments of the plan end exceed them where necea:eary, F71nce costs of supplies, products, wages, etc., are fixed, nn enterprise can become aoro profitable oaly by boosting output, incx~eaeiag productivity, reducing its own azpeaass, sad speeding up t^nr-over. Ft, at the same time, the enterprise has oaiy such funds at ito disposal ae correspond ezactly to the reeui~ts of its acti-+l.ties, it is possible to achieve financial control by xesna of the croon, anfl thus to sup~rvlee the course of plan tuitillmeat. Ia chozrae.:hot, therefore, bank control is net up oo thaL a direct r:Iatitia- ship can be:~tnintained between tL~e value of production and the funds received to curry it out. The course of fulfillment of the plan is thus reflected by the tuttizover, by the state of the financial assets of an enterprise, by the amount of teaes paid, mac+ by the euter~u''s accumulated Yvntls. Control by means at the groan ie hosed on the fact that the whole process 02 ezpaasion of socialist production (i.e., the vhols coarse of f'zttillment oS the g1Rn) can be expressed in money sad that the control can be carried oat as follo;vs: i. iIP aID ea$erprivv (oui,6ry: ioc v` u2y cuuucvi), tusvu~y`a mu ---tiu~5 systsa which nrovifles the basis for supervision of the fulfillment of the enter- prise's budget land thus acts also as a coatr0l of the actual tultillmeat of the enke+x'Fr1ae's productior plan. 2. In a ~iaancial inetitutioa (bank currency control), where the turnover Sa accounts shows the tulfillmeat of the planned assignments (receipts, euper- viaion over deiiveaY and sales eontracta) and also the fulfillauat of the tinan- cia]; p].axi aa, farezsmple, the payment of tares (general and profits taws), gtwrits, smortizatiene, etc. j. Ia the financial relationship with the state and with the Ihmd of the "?'~-~ a,,..,.~? :.d. 10, tari,?~ rcccipce or tae national budget sad of the leitioaalised i~koaoay PUnd. Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0 STAT A,l:e agethcd of financing enterprieea, that So, the naaner of proviF,ing the aeas;.al raqulred for ?hhe fulfillment of plc+~n>;e~. aasignmentb, ie orgeatsed .accord- . ing to the reQtt'irsarant:t of cutreacy control asui choaraschot. This method of finOneirag askae it poaaib'le to control the fulYil]mant of the plea in individual etr~ergria4s as yell ae iti the Whale economy. the i'lasmcisl control of enterprises is crsrie8 out by moneta-y instit+xtoa ~irieh rzpregent nearly the entiro erternal financial contacb of the enterprise, `Bn{:erprieee are not allowed to nettle their mutual business directly but must 21o ao through the psopcr eatablisbaent by cu3aas of transfers on their eacaunta. Rhs't~.:,i~ pti:~poae of currency canstroi in to limit the amocmt o4 mcuey at tho diagaasl of enterprises to only the exact ssount nec~asSry to fulfill the aesigsxed tasks. Operating e:peasea of enterprises are returned is the form of pprofits. if profitu feei2 tc,. compensate 9perating ezpenditnrea and planned mccs~>,j7atioa of -the enteapz-ise, owl to ncnfulfillnent of 8r~y part of the plan, t?Yes?anterpriae rims into financial difficulties wh].ch must be corrected? An easy loan at thin point tmcld defeat the aim of control. 'tbe quslitq sad eztent of inlfillment of the plan are ezpreaeed especially by (1) receipts sad their relatiaa to ezpeaiitures; (2) deductions (payment of taxes, Satereet, wind at&urtisations )Prose actually earned surpluses, excluding 2oaaa; arai (3) prompt payae~ of in4nt~es and o`..her financial obligations, pen- aitlea, and fuss for the nonfalfill~nt of errcneova fulfillment of delivery of purchase contracts. Tf the financial plan is not being fulfilled, it is a sign that the pro- duetioa and requirewents plan is also Zagging. 3t is the teak of asonatary con- trol to dram attention to these fellurea and to cause necessary steps to be taken to correct thorn. Bo that the financial fulfillment of the plan may properly reflect the actual.progress of .the production and requirements plan,. it is necessary tmait credit be used only is accordance with norms a`A only for e_*.sblish~ i,n the Pinancisl plan itself. dll facts and figures eeEablished fYOm supervi.aion of the plan and con- tiauova checking of its enecutton should be evalimted and brought i.ate pre_ sgectiva Dy analysis of plan fulYtllseeat. ~ factory amd enterprise, the plwnar works out tho analysis oY the fug fillment of the in coaperetion Frith the other rompoaenta; in the central' (9r Oblast) directorate, the section Ikea its ana]ysia in confuaetian r-ith the Control division (or section), sad in the pertinent mini:try (coaaaiaaioa in,Slavakls~), planning groups cork out the analysis of the fulfillment of the Alan in cooperation with the plan control department and other getups of the tlaistry or comatssion. 'file fYnal analysis of these planning unite it then presented by the .p16NLftig:QY:OYp_ of the 32avak L?metaNne r.:.?~ _~w~_~..~se~_ _._.e,.a~ -a a~ ..o _...-.,..~ SPQ j8iov~ensky Planovaci Grad, Blovailc Planning Office ,and by the planning .~? t?tiup of the ministry to the SIIP (Statni brad Planovaci, State Planning Oltice). Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0 STAT Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0 A~eaciea far Suycrviaion of Plan Fulfil:.aent Plamniag agencies follotr the f?ifillrenS of planned tseka. both in the planaing 'snit and ih indivldunl uutta {shops, urork sites, etc.j, on t'~e basis of regorta and econasic as well as nccountina documents and records. They rexk out dad compile reviere of the fulY3lLnest oY the plan end eaalyze the fulf.llrraut of the plan, The reciprocal relationship between agencies Por control of plan fu14i11- ?emt and thn planning agencies ie expresasd by the requirement For Hoch close ccapxratian th^t t$at etae3s in the may of coc:pletinE zhe plan ~riil be record, and pianni~ siethada and the plea tti~2 be improved through experience acquired 3a supervising plain fulfillment. Audit of piss fulfill:;~nt means that supervision vll] be carried out on the apot:by a superior or a person empotrered to do so by the appropxiatc agency. The purposr, of this audlt is to check the correctnes.a of planning and atatl~sticsl figures, of the analysis of plan fulfillment, and of other pertiueet facts relatins to it, ao well other circumc+tsncen which ray affect plan f;iL- fil)sent. It ie neces?ary to audit the activities of the 8aaaaing, planning, anti. iri= faswr:ion egeaeleo of the unit being investigated. AtYiits sill take place syatamatically cad whenever the need occurs. , Control sections pregare s vorkine plan for each Quarter of thn year, sith ' special attention to bottlenecks in the economic plan. In the aorkiag glen, it is particularly neceaaary to indi.ate t~hich rlanming-unite are to be aub- ~xted to audit and to set time l1?its for thew. ratiams. .ftt least a month before the beginning of each quarter. the central~oblest) directorates sill ioreard the av81t plain to the pertinent uiinistr~' (or commission), which will aup- plemenL 4t with kra~ sudits end self initiated audits. The commission scads the complRte glen fcr Slovakia to the pertSnent ministry 3 seeks before .the' beginsllnEg of the quarter. Tho minietry them drswm up the p'.aa far avclits of unitrc for the echoic of Czeceaoalovakia. The ministry nay be require8 ;io pYicleat this plan for npprovsl to the 3~, a$ould the need arise. 8honld nets conditions or new aeeignmente arise, the aunt plan veil]. be nuppleuum4ed or 'changed accordingly et the eupReetion ad lover organs or in accordaace with the regnirameats of supervisory agencies. petsiled sudite are carried out vrhanever it is necessary to co~uct a minute investigation of soma eztrkordinary circumstance connected with the fulfillment of the.plan, particularly iP it endsngers plan fv1fi11~m~. Audits within plam*iing unite are carried out by: (1} the central (oblast} Airectorate vtithin the loser planning unite under its supervision; {2) the aypropriate (or commission; wit$in the central (gblast} directorates and loser planning units under its urisdiction; f3) the Ministry of Finance {Cosmiasion for Finance Ia Slovakia, as yell as financial i.nstitu~tlons under its ~nxiadiction; and (k) the SLR (SPU) nt x71 leeels. Avdit of p].aaaimg units is conducted by authorized agencies, with the aid of specisiista~whez.m necessary. Under na circumsteneee say it be conducted by ~ ..s+loyes of the unit being andlted. For more eatenaive cad more tharaogh audl'Exng, special co~issiaas ~ b.-ir.~; or~ised. Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0 STAT Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0 Bafom an Bud'., is bsgun, a xorklag plan is ~xo:hed out, lix ng the p~r- ~ae of the aperatYon, p :-;.a of the pla3 and aectoro of activl.t?o be ~itad~, name ~ iadiv?dua38 tfiw are to take pari is the ~{, queatiane to be,~7.arifl.e8, ~d the and ending dates of the audit. On com_rlgti~; a*ex+rE is to ~ mar =:.'::.-:;-. vas iollawiag are to ba noted: anuses Por nonfalfi].lmeat oP the pleat or of the pasta of it elti+ch mere investigated, fauiteand deficiencies in lti].an fulfillment, names of persona reaponoible for these dePiciencioa or vto did sot fuLtil3. their esaigcnenta, and aug3astioss for the remural of establ:ehcd arras and deficiencies. Far his orrs information, a resort oP the inspe^,t1 r~.a.~~r, ; to be euhrritted to the leader of the unit ~ti.ct has been inspected. Raporte an audits conducted by the c~atral (oblast) 3lrectarates are to *.;e sent to tte p~,-ti~~nt miniQaiy (or cc~.soian). ;,o;,vi=t? on sudita in tae lcroer plenaia,3 units conducted by the appropMato ministry (grcamzisaic+n)ortheMinisty oP lrinance (or the Cammissioa for Finance) ere to be sent Eo the eentrai (ob7ast) directorate for information. The ea~isalon is Slovakia Benda all reports to . i?ie eozresponding ministry. The coutral breach of the SUp ~8y requtre that in- a ti n ' pec o sports rx submitted to it at say stage. Ia the interest of aasuriog the asaiaaments es individ?~1 enterprise_ is +-h2 b:.a1,o;.d to eecura the co~p~r~- tion of persons acquainted with the situatlun in the kra;, the sathori.sed rep- resentative of the 8'!~ is to be?informed of audits is hie teazitory and !a to receive one copy of the report. ~etdite of kroa -planne3 units end, on xcasi.on, aP centrally planned uinits vre also ~crr`ent of sasigsmea~s of nensral importance. %n lra~s they carry out control, especially in battlenecke and also waere, in asaigameats of national imporL?anec, aha actttsl d^viatioa from the pZenn*_8 goals i9 c,2rked]y a~,n-?ent o`nd en.rie~:ra the 2u1- f117abat of other arsigaments of natiana7. importance. Ftsthertore, they carry out control is special cases at the Bisection of the SUP plea control depertme~. B'ktey mtlst be.providefl with all aeccasetry p]eaning rand atatiatica] information a'botitt p]sn fulfilment, Sa addition to econoxic nnfl technical data on the vPar]c >of all. the planning coaponenta, as call es directives, memarandt, and other mster!ll tar the esecution of their datlee. '"`_:. SFS2 rapreteen'tati*rci prepare regular monthly reports bf thels activities awfl, in inapartant asses, subedit special reports to the 8DP plea co>rtrol de- parLreent. Where drfacts are Youafl, they simultaneously reco5aen3 uethods fur "~ their reaoval. . there necsesaxy, represeutativea of the ~eeP coordiaste contro;, iv. the krre,+,s so +.hat no duplicetior. vi71 stied and so that no es,:ctora vxll be vithout contrc,l. -All agencies, both flepartmental end obltat, are retguix~ed to provide the BLIP official xith duplicate copies of the results o2 audits conducted in all saxtora of tho economy. SUP repxrosentatives are is contact with oPPiclalY of the krt,~~s planning aer-rice and are to be provided, to the eztent of their stethor3.tq, with as mueb information and advice as ie necessary and agpl.icab]ee 1n their Mork; veherever aecasaery, they. euaq regexest the aid of J~iV afficep. ? Rn? affict?~a suaeraiete nJetn control in the diractoratea of enterprises iII DasiC 1ndlestTy, 64818t them 131 the1P NOrk, 8nfl give tflem lnatructlons a000E'd- ing to gill plan control department directives. Ert~,j Coordinating Catastssioa 'ffie spacial duty of the coordinating commiesiona for control of plan 3tt1- fil]sst:nt is {1) current coordination of the control aspects of the plan in such a samnar as to assure the systerts~tic caatrol of all parts and to eiitttinate d~liraticm on sn oblaett scale; nod (~) coordination of all- activities,for the lnlfilltrsnt of the ylan, e4 they any duplication, overlapping, or splitting of ` acti'-3tiee can be prevented arA fall effort concentrated on the etr~n points aY T~ia piss uad its eotaleneceua. Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0 STAT Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0 ~'---~ _-------_-ya ~~..%.....=oi, i~rae rrrnr, material tarnished by the ~1. st4,cs1 'a!ficn sad Prdm findings msde in fal7.oviug up ,plan fu7, t i,.fteY eaa~yting the reoults of plan fulfillment, the k,-a~ coorflia,~ating era~9rfiaoa aakan ovggeationE ~o the IsxaJ a encies ~ d g aa sossstimeq ra;,uesta the ~~ of~L89~80p plan control dapartmaat, psrti.^~urly vhea the auggmationa reach ~y~ iiawide of the kra,~ ~.f:ice~s jurisdiction. A :?:rrt drsvn uF oa the`oceedings Pad ~eEisicaa wade in the council of tfie kro~ eoordinat- frsg cotsn6sion Se seat to the 6bT play control department through the local 9?~ repxs4ntati re. ~9 ~Goatra~cnciee The $kp canny cut anperrieion by means of planning boards, loran statioticsl dffiaie,:end audit commissions. 7~e-~O takes part in the audit of the central3y loane8 it l p un s, a ong with }`ahtPail ~acies and agencies of the ministry; or it can be ?natnacted'te do ep''by the kra~ coordinating commission. In centrally planned units vrhere the BHV taaa compil d th ' e e kra j budjtet, its 9n'a+~o take part is controlling the fn14111meat of plan xequireavnts; >bYa~~B bomrtl Of the 88V. Hbr this ?.'' "'6""" ... w.v ass is Fsci ~,~ purpose, it campilea s quarterly plan. g26ivning;hacr8 alec+ soapilcs sc~iannue'1 ana7ysna, as sell as a report 'ern-::?0.a A.7N77~~a ..~,.au- _t-'- -'-- ~ .. .. ~~ of the eecnomy cYthin the kra~. This economic analysis ineladea both Claesit3catioa of Reports All,Yepe~rts sad aaalysee gre classified confidential or secret. Nhoa~e re- e?n14a ~T 'h$? ,plan in Loper units ore nuhliLehpa_ only ,~.r,.v,.+.,...~....Y. _d, ...... n3`Ohia,the presrxibed time limit, Anyone falling in this duty is subject to 6 ;.fide.'ot'ap to 10(?}OOO crarna or imprSeonnent for not more then 3 mantha. If by,;his actions,.tha ps~on hsd endan?ered, re'esYIIed, or ?sde difficult the . ' pro gresn or:ths~axacution o, the vhole economic plan in an espacially.iap~rtaat ~t~tt, La'e liable to a penal$y of nP to 280,000 crovaa or imprisonment for' vn .te;6 ,snncl~r_ .r ~.........~ .w .,w~as~u+S~ Staten-B~a$fetieal 0ftiee) xithin 16 dayro otter the sad of the qumrter. Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0 STAT Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0 of a time limit, avid then only on the suggestion o: snperior agencies, SR s;,rord- asnce with the special instructions of the ?iYP. it reports ere not presente~?1 ~n tine, the superior agencies ehou7d reroamend tKthitL`'t3te time liffita, even Nhen a report is ovtrdue from some eutorpriao or '3he agencies euperiox to the cnterpriees (centra_ directoretra. kra~ fn- legvl prosecution to -che appropriate nntioaal committee. It those steps are nct~%~usn by the superior agencies, the bank will take them. 1~tlter~elea-snd Forms ,; arrange tor. their printing sad mQ.iling. in s~.-ea!ffiBaee.r~ith the regnlrementet of enterprises corder their control; altor approval by the B~, t3.e proposed farms will be sent to the Std, which will Rdslysia is an important part of monthly, ~.iartcrly, and annual xeports plan tulfilLnaat. It meat: 1. ` 8valvate reported reenlte of plan Pulfil.lx~eat. 2. :: Point out ahortcomiaga in plan fulfillment. ,4'. fiat deaaures ?I:aksd by the planning unit or proposed by it in order plea wa0'aPPecteff by orgpoiautional ehawges, ehaugeo in the prodnetioa prc+grae, chamges'ia prices ~ w-~ee; emd slag provide n cor~parlaan between a report ua~t`teo by smch faEtors acd the ciarent reenlts. 7_ _.:.,eerm.t,. fn2t]7nent of ~.tem :a?eductien n]nn vi~th the reauiresentjs vies 6. 8hc!v tlh~s effect on the fnltillaeak of the financial plan ~sde by efforts of.workers to laser production ca~ta by tightenigg of noz~e, co8petition, euggestbae'tar ibryroviceaeats, and efforts towwcd s speedier turnover of fiords, etc. Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0 Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0 Aaelysis 'x111 refle4t tha amount of attzn+,ivn that uoa xctualiy &evoted ~-ob~ds;itn suoID'ertoetrs. 3t ie im4wrtnat tc poiut out xhat meesurea were tek!n to exaedite zhe turnover oP nuvnlies. Prry 5lork_ fur the 1~~2 Plan Ia the ifl4erest oP perfecting planning procedure for~monetary,cinulation. t$e 5eneral managements oP natiaanl industrial enter;+siaeo in the Your minig'riaa concerned sill prepare th:. tollouiag by the en8 cP February 1951 1. A proposal for perfecting the proeedura cf planning monetary Mrcu;s- tion ntd the circulation fund, to be sent tr the respective miniatrieb concerned, as yell e4 t11e ltlnistry of 1+~-asses, thF Stan F,axd[, ftnd the tinencinl depeirt- meat end matrriale-supply degartsient of the Sffi. 2. A list of seasonal supplie?, to be cent to the napective xiiaiatry and ~o floe State Sane. Control is these anEerprise? is carried cut on the basis of (1} control rltYOStivsa; said (2) analysis of plan fulfillmeac. m4nageneats present theirs in e. single copy only) to the central office oP ?.ho Cseahoslovalc Insurance Snterpriae, ss Po).lous: yeceipta fForm x 9). anaaalzy Ac simnel yearly budgrt listing the assets cad liabilities, as pe27 es,inco~ sad outgo {Form K 10), cad ea annual coapsretiva sanlymis mheet (Form S ll}. Ra annual budge! for iasaranee ?eserves {Form x 12). Annwl timanciel indexes of plan fulfillment (Porn x 13-I}. Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0 STAT Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0 thin x~gou y, bath itrr current ezpenaeo and eagitcil iaveatmenta; and a method of ovaluai~ing aoROS with rasped `.a plea tultil]reent. An gnalysia of the caumea for she fulfill.dent, aonf~slfillment, oc exceeding o3' tTae plan, which x111 clcasify these cesueer either: as pea-msnent, tee~roiisry, or nceit?ental, atstirtg at the esme tine hax pertain veriYied d5.ds,- $Lnpa fram the production crud requirements plans became evident. Enumeration of leaporhant previsions which the planning unit bean `??kea or which it shou7.d have taken wi''in the limits of Its authority; earl the: poaaib111ttee for the rt:movsl of such d~.viations na npgaar vadeai.rable. A propaaal Por neceeau.~y mesaurea to be taken by a hider .;on- tra121ng agency. An analysis oY rho Yu1fi11mCnti~ot the mamis supply plan. ln, veri3icatica of dav~los..?.-?'` 1 tr.:~.:da, ~^iL'h caution. in re io goasible difiicnltiea to be eneoim cud oth3: rectors bearing o;i he fnlPillment of the plan. . ,. -..: bs ?,,.,~. During annual control of t5ut tinsncial plan, the~~iin~yt eaf unused risBc capital is shops, tbsi ire, the ditfereaee bet*reen expected and.actnsl. ilau-ageR. YPspectad dsaegee_are calculated on a beats of indexes demoting the ratio art congeasated Ana to the rota]. amount insured. fihesa indexes play sa iategr~al paFt is Bolding the insurance elan for 1951 (Farm 3a. Rha sobillsing fnnetions of the financial pl..n and currency control give tnd :ihea eacertion of conslant`gressure by mesas of the credit.eystem for.mobiYita- tiaa:,i-rl~:'ascr~lerating turgover cabital 20 ohortea the production c9claan3l. rsduae ' .'.l~! ? tiressure mast be aharn in a better, more ecoaoaical ful3illn~CUt of it>oecutiaa of Control a pYppl~=s fir`wneial i~~itu`doa, t]?e glsnnlrg unit is alloyed to ba is touch 'sitEr oailT ana such agency. of regalar reports et t;w planni.rg un:ta with regni~d 'y plea tulfillmenti as ~~'__~',`.:~ ~._. v: ;:,~:.~ w~ ~ c~a...."ison xith the tiaaacial Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0 STAT Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0 plea; acd nudi,tiag and atai;istlcel reports of the finnncie.l status, drawn up by .tt,. ~~_ ,.~.r or i'r =up_rvisi:.c ~;_nclc_, ~iwh ~aay t?- .- -ate .ar ?Y`~? ,esisei,na~rian by the banking institution. ~;wa?,ttne Tnat~t~rtlmw~ Usy FinaaoiRl Plan All betnkia~c ins~tlt,rtinna ~uBt present (1n addit2en to sgeciel reports~oa ~nctiv2tioa tMrs-ii fultillsent of the f9nr3ncial au^ investvert glen): (1) a gxt.~t2rly projection and budget s~.,etemeat; oa@ (2) the annual anaiy2i6 she^_t for 1851, cons~ittiag of t2ze annual budget and the onnr?1 ori.ratioaal statcwent. All baakin~+ institutions mast prepare sad present to the 843 a eaa^,...,-nti~? atxtement of tatal? of bath luarterly sad annual budgets, cs weL 4p ~,e:ratioral stetisme~e. Audit for Financial Purses Pl.nanad audits are caadnc:ted by the sugarvising egenc,:aa, as wall as by the audit agencies of t)re Ministry of Finance and the naricasi co?ittees, or ed?t ~:onducted jointly. Bank officials at the people~e bsn; institutlons syy alas ba called nn to cauduct these audits. 'Ybe ezteat of audits may be deeidad accur8iag to the cire~n`+8cea of ?the cape. ~ese audits acs coffiucted bq agencies superior to the enterprises to be inspected, as yell as by control a~easies of the Ministry at Fioanca~and by banking inati:utiona, ar faintly bq tkeae e~gasaies. Control of 3'lan Fulfillment for Financing f/yerstionr The operational goal a:P this eoatrol is to accelerate *he ttffrnves of liquid aaseta end, thrau~ constant effort by rineacial institnrions, to ea- couricge thrift ?o as to laser expenaee iund the cae~h requirements of enterprises. Zrni. task is accoatplished bq (1) controlled flilfillment of the credit plain of Lhe Czechoslovak &tate Bank; ar~d (2) controlled Pultillment of the.fimancing Baaio Directives for Crodit Coat:ol In carrying nut control sad extending operational credit, the banking lnatitutioae arc guided by the fo3lovin8 basic directives: 1. They map proviu~e opernti@nai c'~'.iit otilo Par played actiwlty) SAd only to those enterprises which tul.fill their 2inanciel plena on tlme and repay l~4ne aitnviit having used them to cover dericiencies arising iron non- Sulfiltatant aC parts of the plan, from irosen assets such nn ercesoive supplies, ixivos:aeats,.:ioective aeeounts of clients and suppliers, o: from noniuitil'..s~tt Of the acoteanlati:az ?:.QII. ~; 2. '!'bteY aaaure that the plan o! accumstlatim within the eater- . prise is fulfilled an time auui that deposits to rr~rve accounts, ta;aa, and emarkizsriiia be lade pxcmpl~iy. This is to bx 3one from actval'sccumulatSan. (.o., frog the ere~eaa pro3Yta attar Mduerion of oparetfag costs) and vitdi- ant:lnoraaeing the prodcxtion credit. - 11 - RE8TRI09SD Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0 STAT Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0 a. Penalty perceatago raL?ea ar fined. Car.:cAlstion of outstanding lcnna. Ca~s~.tioa or curs.,:il~.:~t o? pravio:::ly;.3 crai?t. accarilaace with this directives of '`he Ministry o: FSnsnce. According to the 'cYrcnmetiesces af.$he csao, the beak will make vas of the following eaIICtiuns: reM+ywmdt'st t3te-psopar time is eusuirod by ttaa SYmte Bank, which, visa supervises over-ell`:acc~~mting an3 finance in entnrprlses by ~u+e of legal sanctions is Ry'!p'Lea:~oS:CaIIGIaGtID ao3 oy 2v.+.~ ~ 'L~ galariee fpsYY'oila eaa xdgn "owdgetsJ a~sd ,ai'teo (bY ar~,~n#e of iavaicec). 's2itt6 of :cred~,t6 anei xeacrvee, the State bank will este'olieh the follotviti[t Ta atireagr~n loc?~nc credit limits and to he closely iIIPoraed abo:it the Y'.< Ylsting credit 11mLtatiane. RsB7CttE6~ '~ r.;~. .~ Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0 oas,t~a;ltU.ltl7.t~tt o4,sts,crea~c pzan Si~osm a iw~ anc preseax sc *.o was u~lr sad t3~ra sCsyy:ot Fiaeace YitL s Bstailed.aealyreir, as reli as pitk etwte- me~.tmm ~u8'. 1) credit ezteaied ~wepazt_ting-the operational from the inveatmisnt 3AttiL~tiioas (on-Ftu>a It 15). 'Both rrepasts as?e alto seat to the 8qe. bpsl~tioasl credit wili prenaat reyorta to the State Beak tbrongh proper . ehe~ommeis.'teitg ! Qetsil@',. eaalyeiJ of the following; E 7fhelt Y,stpo~ant eorxactive aexeures lrere ?txken by the bacikirg ia- etiRutiqu aiod trbat :effget''thsae. toad. oII reducing the smoimt of operotionsl ersgti6 on'CwA'r"e1St iaeentosies,'on tie ecconnta Of yugpliea, clieata, etc. STAT Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0 3? i~'L'at eerio~ insta~aa oP nonfu1fi11ffient of tho plea, indicated by ';$~3, "?"?"'` "` ''? ?~4 ?~~' mnime=, were reported to higher anthoritiea, With proposela.four concrG'.,e r-rmcdial meaeuree. Coatrol'of Ph?Ltillmeni; 04 InvastmenL Plan 'lie ?-`~~ ?? ' 1~~~== -.._---1 ~~ invsatment ca ital i t p e o assure the gfeatraut pus,~ibl~ eccnomy, ae Well ae planai;~g and financial dieclpi9.n_ in asa!Siag iaveetmeata, i.e., to eseure tbnt: 1. Capital all?4`.ied in the fineaclsl planet for fa~eetmeat eua sctualiq need for that purpose, an3 that investments made the enterpriae~e oua aurplue are madA according to current regulatioaa; i.o.., aonatruction iaveatmeata are *?o be made eithin a month after the end of e+~$;plaaalag month during aaastructioa, and investments sat used for 'building puzpoeea sae tc be mnfle eithin a month after the cad of the planaing month duYing Which 'the iaeestment o;i.ginated. 2. Finsaciag of implexuied investments iB uq~de lnpossible 1a anq form vheteoevez, 3. Inveetmeate are completed at the leasd poaelble coat find within the planned time limit, Ageacier Seporting on Investment Control T'he fiasneisl control of the inv.-atmwn4 ,~i.,, ,Q ,..~,v ___. ~_ ~~ _ - ..,.s,, .,r .wrpug[i Tia6 AII- 'Ceratdi?ry of the FE1H (Found Zn+e~'odaeaseho IIaepcdtsratvi, 8atioaalised Ecanom3. ~'cmd):. ---, -- -~~, ono cu~.ruw you Oy vsuQ 4ssi'?eks. si+t~h't*:s fiaaa::ieg and e:R,:trol cif Siveataiente, aTe guided lgE:directivee of the Iavsst^ant Bank. ?.. ~, . ay~a .o vxc ~ ~ ~ rue IYLCx 11mAat of the "calve 8laa for financing investments; cad (.e) the diepositian of in- "'rta,er d t ` o s ecc i e r&1ng to ecanomic'esetora and typed of enterprise, i(efhods of Control aiau~cu4 vx rdda~ plan fOr in'oestneatA financed brth by itself sad by the poople , denting iastftutioas as.follave? - -- rrw?a-o .ave. aa~ow i~e~L ?c^. ?Inntf. . Accounts o! the TLH Ore ales considered es investment accouate; sad pnbiiv ed- `..ainieirre~t3ondayvei~r a+. ...e......~t w+~ o-- aa- --~-' _.-- .. - '~. By consistently demaafliiag that procedure by rigidl3? follaeed, both as to the transfer of vi;iaiue type? of laveetsente sad fas~ individual payments, 3. On the bwia of resular c+satrol reports presented by the planning units. 4.,,By seiaspection of building sites sad audits conducted Dy ag~n`s of '~1fie Iavestaeat Hank; ConetroctAOa,~aterp~~ses) and co?ucsl. construction ante nee, it mast bs .tateC irLether i t 2~c . t e expendi ure coroere (1) mai.rtenaace; ( onstr~utfoa ia- v+tiotma:aco {in n!Lieh cane it ie aecesaarg to put the number of the in at t ve mn aeeeuut an the inroir~ or L31 a Letrev.ut,.w.~t.. a~ - _ -- _ ,, s. ~....:.:r. -- ~ ~ .__ w ~--~ =or=~aan-erYA xoim6aci boiler insulation etc. 13 - aassi~IC~n Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0 STAT Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0 Z1se Zave~stment Hack ie responsible for the pra~r functicning oY financial supexviaion of invest~nt3 3tithin the enterprice sectors and of coustruction icvest~ents thrnt~hout the nation ~-ad is guided by the fallowing directives: Paymante fns inve;atve^ata onset core from the irevsatme~t. ___..~?a r_,_~,..,, ~=_- -' ~. a?ngie x:i.aeact:at 2matitutlo7u~ as foliose; 1. In national and c.,tamuursl enterprises, only from the Sn.veataent account reai~+`sined is the Tnveatmeat Beak or its branches. 2. ZZi the ease of all other investors oP the enterprise sector, only from yna investment account maintained at either the Investment Bank or the p_ople~s bslk3ng 3natitutioas. 3. 7n construction lnves~aents of the public ar7ministration, only frog the lavsst?esrt account carried vit?i the Inreetnent Bank; and in the cane of 611 other types of inveata?enta of the public administt~fation, from minor accauntn at the gtate Treasury. the bu3get of the enterprise; sad (2) ell approved chnng2e in expenditures re reported to the Dank. banks hsadliag inves??meats shell require that (1) the investment eapendi- tare~ included Sa the ylan be in agreement with the e~penaea provided for by Doct??ntation of incateanta Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0 '4r1P rt+~'t !'ram construction investors, stating what portion at the 811otted icveisteeent reaains unclassified through incompletion and what hin- sIIs~aees,ii say, have seises is the vork. 'fhe banks s111 check oa the ultiuate use of the outl6y deeQed necessary elssrifyiag.t~ as ceastre~cttoa and noaconatruction prnseata (pleased sad px'apmrsiory operations); thane Rre fnrthor subdivided into property lnvoet- meats,,aCLaP.'din$ t0 ieise, as tall as other nonconstructioa investments, im- port. iavestseats, sad special investments 1n agriculture and forestry pra,ecta; i+_+!ast-9ednt~ abroad cad ottser in.aguLwr investrnta are cles9lfied eonordi:D t the-individual investors. 7Pha basks can maintain such records end carry oat tba te:sk of olssaification o2 investb.rnts only if invoices are sub?itted; this 1C especially trne in the case of naaconstrwtion investments within the cotmtry. accosding to pres6?ribed procedure. '17ie banicm Peep records of sli invostxoate made throughout the stets, Investors see regnirefl is aotl.fy the beak on completion of any constructittf~ "gs~ro~eci sad aro to lfst ell labor. sad supplies applied therc+to. Such noti.?ica- -tide amsx be sent bq the end of the month is vhich the project vas completed: iiYes~d caking their quarterly reports, investors are also r. ~uirad to ez- plaia agy:disctvs,~0acies bestwaea various uconnta of Gass 9 (inclndiag in- v~estaents im aoasCxtution evade by themselcas and the amounts of the inwetment aeGOUnt used daring .that particular pl.6natng nrsiod): The bank may re- sort to legwY: aaaetions in cases where investorsrhava unduly delayed investsents. STAT Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0 nmvu rloni;n, or as ones ae necessary, ?on the basin of th? results of finaa~?I.aI control, the beak notifies tSe ?',JP and the Minist:ica of Technology end Finance of any unPavor&bl.e developments vhic:~ may have occurred sad pointe out concrete sits~tions wtslch migkt endanger the fulfillment of the iraveatme!st r.]an, Coustructi~~a Invectmenta saa][s haadlinre construction investments ass permitted to finance only construction for t+hich all the preceribed papers and documents hnc~ been presented to it by she investor, such as the fol.lolring: 1. kn iaveatmea? statement or ether planning dccumxLta which prove that the construction is asx investment Tinted in the p].en Yor construction invest- ments, a roved by the government fcr the planning year foi~ that particular branch ~ the economy. 2. A pro3ect approval with a detailed lict oP conntrL..tion end labor coats, prel.imiam;y c?lcvlations crtth e schedule oK coxiRtructian, eupp2y sgrre- meats, and, is some cases, labor coutractaw The Aiinistry of Finance, in agree- men; frith the BUP, may a11w ezceptions to thin, 3= Funds for construction inveatsventa are provided by the hynka only as the basis of original invoices (or certified e?piea) or, where the invectm~at to S: 3C :-.;,, tva ant@ryriee~e ova capital, oa tan basis of iatrrdepnrtmeatal invcsicee within the enterprise. Coastructioa investments from .the enterpriae~s Diva capital are activated monthly. k. The banks conduct an exgminntion an the basis of the apezgotianal' accounting oP the construction enterprises to aeceriais whether or oat the funds expended were used for piaaaed construction work (i.e., for conatruc- $Son with an investment authorizatinnl and to ascertain 'whether or not rec_ orris of the opexstians of th. corstructica enterprise srs iu agreement with the investment documents {yearly sad quarterly budge::s, reeorde o? buflain6 casts of 2a~h ^.oaetractlon project, time achedulcs, quarterly Aro- dlaatioa plans of coristructlon, monthly reports on fulfillment of the plea, monthly reports of operational accounting made in each construction area, cosies of records of CG:.atruCtian work, and labor and production plans). 1$e banks issue inatSllr_r_an_t_a arnnrAinn +.. +_~._ . ' .r.. ~vtya vat ~l t11G fYi'6, which progress is to be noted on the Snstallmar:t :record. Constrnctirm.anter- prisae are retluired to inform the Investment bank of any additional under- taking op the day xork Sa begun, with d~~..-31~ sa to vhesthsr it ie maintenance roor?1? acv construction, or of a noncanetructioa-investment nature. In re- portia~ the beginning of a acv project, the enterprise moat indicate When thr r:rhk wee orderefl en3 what probable and permioaible ezception Carnes padtr consideration; it moat also be indicated it the construction was not ordered to be coppleted. In these caeca, the banks reader payment, ns approved by the investor, for labor, assembling, and other work, according to.tdle prices given Sn the approved budgets and contrast agreements. The Investment Bank moat determ::ie (1) appropriate?expenditnrea, accord- ing to the~aectors of construction, comperi.aia taese with ~ i!-+_=- ,-al~;;;A_ " ~; -~ ~~r ecti:a~l expoases in each of the sectors oP construction. It vil?1 co~~ate tL!s operational accounting with payments made sad other records. -15- xasTalcTl+~l Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0 STAT Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0 Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0 Ia nonconetzl~tion iavestmenta, the banks determine the cornctness of daxa rnn?tn1.+:~t is r6::2i 6 6i Rayaenta made according to eg:eemeata end issues I~sonly for thasa~ii:-?at?enta incllnied is tho iaveota~at plan. Iavaatora az,e regcCred to submit to the banks copies of all contrncte mado Gy them in conducting investments. Ia issuing psy~nta on iarestmeat purchosea, the betake acs to receive the ariglt:al invoices (purchase orderr); there invoatcuznta involve enterprise, tt receirs t~ euterprise~a interrlepart9ental invt~icea. 14ci:ronetructioa Inveatlaenta ~fnrcem~nt 1?i ' tRu s of the Stxrka AccArdi~ to circ::2~atancan, the ba-TiC9 na.y use legal i.eens mentionNd above cad may order caseation of pnywenta Yoe :in!u._ing inves~menta. Tn serious cases, mere payments of irvastraenta have been stopped, the YnveAtm~-nt Rauk notifies the Mlniatry of Finsace, env other m?nistry concerned, sad the SUP in quarterly reports to those organizations. 'Po facilitate control of the fulfillwent of the plan, the Tnvestmeat Sauk hen at its disposal the following, 1. 79te Etate Investment Plea. 2.' ldeporte cram the ministries showin hoe th i , g e avestmmt sm+a credited to tlmn'~ere alirtted according to the 11staG central ageaciee anal basic plan- aing waits, u le~sll as to the H!", so that the amounts Salroated are specified is detail as to indivldval ia:estors (enterprises j. At the Eery time, !a~ veatas'a xith inveetmeai allocat?,ona under the aura of 1J0,00p crulras (n~u:h ae htadicra3p'ts, sa~7.1 cooperatives, private edterprise) are listed is toned nlmmbera. Also similarly listed are ineestora financed Psom vne national budget. 3? SSQi.Yar reports frr~m the SAV, concerning investmert soma designed for ~+vestsisnta planned by the kra,~ sad classified accord{?a +c economic seeress and vr~uLas. - BLottld any chengee be made in the divlslon of allotted investment sums, the Iavsgtaent Beak is to be noti4'ied. Eusmarg of P' of Invcsteent *~ly? In accordance with tae raporte of the Investment Beak on the fnlfillaeat ~oY tlm plan .?or fiasacing lavestiaeats, tho.Minietry of Finance is to compile a rtviev o4 ~ natioavide fiaaacial fulfillme~ of the luvcstment plea, tA1rh inveet,~nts classified according to (1) pro,~ecta (Planning and preparatory opsr+atioao); (2) construction work; (3) inve~tma:nta not need for actual coastruc- tioa; .'these are farther subdi.vlldsd as large pa?petrty iavestseata, other pr.v by agencies ~iic1~ Kandla budget lands (disbursing agencies; nstioaal committetes,.'etc.) trithtn the area of their authority. CtYttrol is carried oat ealpbcfally by the accoe~ating office. 'ffie?accounting oftise is required to (1) examine the data contained in all doa~enta ? pertainin;r to state receipts and eYpeaaiturea, sot onlg for accuracy aa$ foi~Yrllty, but also, efiere poosible, for proper sathoriastioa of ezpenditure~; .cntl (~.q *efvae to render payment when obsectiona occur; a notice ahauld.tbcsa ba foreeaded to the svbordiaate agency, accompanied by the documents rvbaitted sad a atuteseat-of the reason for resection. ' Follosi~g rvch resection, eettlemeat will be rendered only on l~re~a- tioa- of a vrittea order irau the chsir:an of the disbursing ag~sncy, (tl~n' chsi.r- ri@p of tlie'.aatiaz"..1 camas!tee } . ? The msi;ter must Abe cot^red one 'special rec- ord end..~i cl0ring the accomit, the case meet ba r..yortzd (if m astional co~it~tee` co~erned, report is medr. through the inte~ii,ary of r fiaaf}cirl boarit): (1) to the nvparior office of the dirburrinp rgeacyor, (2} if the? suspended accolmt rnriginrated is a kras national cosmittee, to the minirtry concerned or the Ministry of Flosses; or, (3? if the euspeaded a: count originated is a cen- tral ~aacy, to the Ministry of Irinsnre sod to the Supreme Accounting.CantPOl Otfic s. _ pp _ RRS'JitiCT? Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0 STAT Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0 ,3 STAT '$a~zp4 ma[:,BR.~:..~,:fSL n6'by crt ewYBt~ rcTa-rri of fv~rther raepoasibili$iee ~ ~ ~iabti5g andi-t ea9 adoxst'[ng tweaswrsa to ensrr~ that the ru:tval purpa~: P!~ ~'"fGa1f~.ltiti:8~ ~.S i2S~liRYE4~ . Sanitized Copy Approved for Release 2011/09/14 :CIA-RDP80-00809A000700080065-0