Law On The Court Of Auditors

Original Language Title: Закон за Сметната палата

Read the untranslated law here: http://parliament.bg/bg/laws/ID/15118/

Name of the law, law on the Court of Auditors Named Bill a Bill to the Court of Auditors adopted 29/01/2015 number/year Official Gazette 12/2015 Decree No 14

On the grounds of art. 98, paragraph 4 of the Constitution of the Republic of Bulgaria

I DECLARE:

To be published in the Official Gazette, the law on the Court of Auditors, adopted by HLÌÌI National Assembly on 29 January 2015.

Issued in Sofia on 9 February 2015.

The President of the Republic: Rosen Plevneliev

Stamped with the State seal.

Minister of Justice: Hristo Ivanov

LAW

for the Court of Auditors

Chapter one

GENERAL

Subject

Art. 1. (1) this Act regulates the device functions, organisation and operation of the Court of Auditors, as well as the powers of its organs.

(2) the Court of Auditors shall control the implementation of the budget and of other public funds and activities in accordance with this law and internationally accepted audit standards.

Main task

Art. 2. the main task of the Court of Auditors is to monitor the reliability and accuracy of the financial statements of the organizations, the lawful, effective, efficient and economical management of public resources and activities, as well as to provide reliable information to the National Assembly for this.

Independence

Art. 3. the Court of Auditors is independent in the conduct of its business and is accountable to the National Assembly.

Basic principles

Art. 4. The activity of the Court of Auditors shall be carried out on the basis of the following principles:

1. the independence, objectivity and good faith;

2. the professionalism, integrity and impartiality;

3. consistency and predictability;

4. publicity and transparency;

5. trust, cooperation and constructive.

Chapter two

FUNCTIONS, STATUS AND BUDGET OF THE COURT OF AUDITORS

Types of audits

Art. 5. (1) the Court of Auditors shall carry out:

1. financial audits;

2. compliance audits;

3. audits of implementation;

4. specific audits.

(2) the Court of Auditors may carry out documentary and factual checks and other control actions in respect of ûridičes Ki persons assigned to it with special laws, only in the context of the audit activities and in accordance with this law.

Scope of audit activity

Art. 6. (1) the Court of Auditors audited:

1. the State budget;

2. the budget of the State social insurance;

3. the budget of the national health insurance fund;

4. the budgets of municipalities;

5. other budgets, adopted by the National Assembly.

(2) the Court of Auditors and audit:

1. the budgets of authorising officers with budget on Budgets under para. 1 and the management of their property;

2. the budgets of the budgetary organizations under art. 13, para. 3 and 4 of the law on public finance;

3. the appropriations provided to persons engaged in business;

4. the accounts for the funds from the European Union and other international programs and contracts under art. 8, al. 2 and 4 of the Act on public finances, including their management of the relevant authorities and end-users;

5. the budgetary costs of the Bulgarian National Bank (BNB) and their management;

6. the formation of the annual excess of revenue over expenditure of the Bulgarian National Bank, payable to the State budget, and other relationships of the Bank to the State budget;

7. the occurrence and management of the public debt, municipal debt, debt d″ržavnogarantiraniâ and the use of debt instruments;

8. the privatisation and concession of State and municipal property, as well as of the public resources and public assets to persons outside of the public sector;

9. the implementation of international agreements, treaties, conventions and other international instruments where this is provided for in the relevant international instrument or by authorized organ;

10. other public funds, assets and operations, when she was assigned by law.

(3) the Court of Auditors shall carry out audits of:

1. State-owned enterprises under art. 62, para. 3 of the commercial code;

2. companies with 50 and over 50 per cent State and/or municipal participation in capital;

3. legal persons who have obligations, guaranteed by the State, or obligations guaranteed by State and/or municipal property.

(4) the Court of Auditors shall carry out audits of the management and disposal of public assets and liabilities irrespective of the reason for this management and disposition and status of the persons who perform.

(5) the Court of Auditors shall draw up reports with opinions on the implementation of the State budget, State social insurance budget, the budget of the national health insurance fund and the budgetary costs of the BNB, which shall submit to the National Assembly.

(6) the Court of Auditors can audit and accounts for foreign funds of budgetary organizations.

An annual programme for the audit activity

Art. 7. (1) the Court of Auditors shall adopt the annual programme for the audit activity. The National Assembly may, with the decision to entrust the Court of Auditors to carry out up to 5 year audit beyond those provided for in the annual programme.

(2) the Court of Auditors shall adopt the program under para. 1 after the promulgation of the law on the State budget of the Republic of Bulgaria for the year in the Official Gazette, but no later than 31 December of the preceding year.

(3) the annual programme for the audit activity of the Court of Auditors shall be provided to the National Assembly within 7 days from its adoption or amendment.

(4) the annual programme for the audit activity of the Court of Auditors on the audit of the accounts for the funds of the European Union shall be sent to the European Court of Auditors and the European Commission for information.


Cooperation with institutions and organizations in the Republic of Bulgaria

Art. 8. (1) in the performance of its activities the Court of Auditors co-operates with:

1. State authorities in order to enhance the efficiency of the control system and combating crime and corruption;

2. professional and non-governmental organizations with the aim of exchanging good practice and professional development.

(2) Specific forms of cooperation with the institutions and organizations referred to in paragraph 1. 1 be determined by joint agreement.

Cooperation with the European Court of Auditors and other Supreme Audit institutions. Representation

Art. 9. (1) the Court of Auditors co-operates with the European Court of Auditors and the supreme audit institutions of other countries in the field of external audit, and represents the Republic of Bulgaria in international organizations of supreme audit institutions.

(2) the Court of Auditors may carry out joint audits by the European Court of Auditors on the accounts for the funds under art. 6, al. 2, item 4 and with supreme audit institutions of other countries on the implementation of the international instruments referred to in art. 6, al. 2, item 9, where this is provided for in the signed agreements.

Status

Art. 10. the Court of Auditors is a legal person of a budget based maintenance.

Budget

Art. 11. the budget of the Court of Auditors is a part of the State budget.

Chapter three

DEVICE MANAGEMENT AND ORGANISATION

Composition of the Court of Auditors

Art. 12. (1) the Court of Auditors shall consist of a Chairman, two Vice-Chairmen and two members, who are elected by the National Assembly.

(2) the President, Vice-Presidents and members shall be elected for a term of 7 years.

Chairman

Art. 13. (1) the Court of Auditors shall be managed by the President.

(2) the President shall receive a basic monthly remuneration amounting to 90 per cent of the remuneration of the Chairman of the National Assembly.

(3) the President can not be re-elected.

Vice-Presidents

Art. 14. (1) the Vice-Presidents shall be elected by the National Assembly on the proposal of the President of the Court of Auditors.

(2) the Vice-Presidents shall receive a basic monthly remuneration amounting to 90 per cent of the remuneration of the President.

(3) Deputy Presidents may be re-elected.

Members

Art. 15. (1) the National Assembly elected on the proposal of the President of the Court of Auditors, one member proposed by the Institute of certified public accountants, and a member proposed by the Institute of Auditors rešnite Assembly.

(2) the members of the Court of Auditors shall receive remuneration for participation in the session of the Court of Auditors, as determined by the rules of the device and the organisation of the activity of the Court of Auditors. The monthly payment may not exceed 50 per cent of the basic monthly remuneration of the President.

Requirements for the President, the Vice-Presidents and members

Art. 16. (1) the President, Vice-Presidents and members of the Court of Auditors are elected individuals who:

1. possess higher education with educational qualification degree "master" and professional experience in the field of audit, the administrative and financial law, financial control, finance or accounting for no less than 15 years;

2. were not organ of executive power under art. 19, para. 2-4 of the law on the Administration in the last three years preceding the election;

3. have not been convicted of a deliberate crime or are not deprived of the right line to take up a post or to exercise a profession.

(2) the President, Vice-Presidents and members cannot be related persons within the meaning of the law on the prevention and detection of conflicts of interest and to carry out an activity that is in conflict with the same law.

(3) the President and Vice-Presidents may not hold any other paid Office or to engage in other paid activity, except for international projects and programs related to the activity of the Court of Auditors, scientific, teaching or activity regulated by the law on copyright and related rights.

Election of the President, Vice-Presidents and members

Art. 17. (1) the National Assembly shall elect a President of the Court of Auditors three months before the expiry of the term of Office of the President-in-Office.

(2) within 14 days of the expiry of the term of Office of the Vice-Presidents of the Court of Auditors the Chairman makes a proposal to the National Assembly for new choices.

(3) within 14 days of the expiry of the term of Office of the members of the Court of Auditors, the Institute of Chartered Accountants, the Institute of internal auditors respectively made a proposal to the President of the Court of Auditors for the selection of a new Member. Within three days from the date of receipt of the proposal the President submit it in the National Assembly. If a member or members, proposed by both the Institute, are not elected by the National Assembly, within 7 days both Institute are bound to make other suggestions.

(4) the Chairman, Deputy Chairmen and members are elected after a public procedure.

(5) the chosen under para. 1 the President of the Court of Auditors took office on the day of the expiry of the term of Office of the person in whose place is chosen.

(6) the chosen under para. 2 and 3 persons enter into Office on the day of their election.

Oath


Art. 18. the President, Vice-Presidents and members of the Court of Auditors shall ensure that before the National Assembly the following oath: "I swear in the name of the Republic of Bulgaria to comply with the Constitution and laws of the country, to work for the implementation of the Court of Auditors entrusted functions, such as driven by the principles of independence, objectivity and fairness in carrying out the duties assigned to me by the law. I swore. "

Premature termination of authority

Art. 19. (1) the authority of the President, Vice-Presidents and members of the Court of Auditors shall be terminated by the National Assembly before the expiry of their term of Office:

1. at their written request;

2. failing to carry out their duties more than 6 months;

3. in the event of incompatibility under art. 16;

4. upon the entry into force of the Act, with established conflict of interest under the law for the prevention and detection of conflicts of interest;

5. upon death.

(2) upon termination of the authority of the President, the National Assembly fixed Vice President, to run his powers until the election of a new President.

(3) in the cases referred to in para. 1, item 2 – 4 the President makes a reasoned proposal to the National Assembly for the release of the Deputy Chairman or member.

(4) upon termination of the authority of the Vice-President the President within one month, makes a proposal to the National Assembly for the election of a new Vice President.

(5) upon termination of the authority of Member of the Court of Auditors, the Institute of Chartered Accountants, the Institute of internal auditors respectively, within one month, submit a proposal for election of a new Member.

(6) the newly elected Chairman, Vice-Chairman or a member completes the term of Office of the person in whose place is chosen.

Powers of the Court of Auditors

Art. 20. (1) the Court of Auditors, organizes, manages and controls the audit activity under this law.

(2) the Court of Auditors shall adopt its decisions by public votes and a majority of 4 votes. Abstention from voting is not allowed.

(3) the method of voting on every vote and reasoning of each voted against the Protocol and shall be published on the website of the Court of Auditors, together with the audit report.

(4) meetings shall be chaired by the President of the Court of Auditors or authorized by him Deputy President.

(5) the Court of Auditors:

1. approve the draft annual budget and report on its implementation;

2. the device shall adopt its own rules of procedure and organization of the activity of the Court of Auditors, the Court of Auditors, code of ethics, guide to the application of internationally accepted audit standards and audit activity of the Court of Auditors, rules of procedure for the selection, appointment, training, evaluation of employment performance and professional development of the employees of the Court of Auditors, strategies, policies, guidelines and other internal acts;

3. adopt the annual programme of audit activity and report on its implementation;

4. approve the audit reports, except in the cases under art. 54, para. 8, items 1 and 2;

5. approve the list of recognised certificates of Auditors;

6. carry out other powers provided for by law.

(6) the Court of Auditors led the overall audit work. The Court of Auditors performs auditing powers by the Auditors.

Powers of the President of the Court of Auditors

Art. 21. the President:

1. manage and organize the activities of the Court of Auditors, it represents in the country and abroad and is a major officer by budget in the budget of the Court of Auditors;

2. define the powers of leadership, organization and monitoring of the audit activity of the Vice-Presidents;

3. determine an alternate in the absence;

4. develop estimates and the draft budget of the Court of Auditors in accordance with the requirements of the law of public finances;

5. enter into, amend and terminate employment contracts with the employees of the Court of Auditors in accordance with the requirements of the law;

6. disclose the internationally recognised audit standards on the website of the Court of Auditors.

Powers of the Vice-Presidents of the Court of Auditors

Art. 22. (1) the Vice-Presidents:

1. guide the audit directorates;

2. plan and allocate the resources necessary for the implementation of the audit tasks from the scope of the relevant audit directorates;

3. submit for consideration and adoption at the meeting of the Court of Auditors the draft audit reports, together with the opinions on them, produced conclusions and recommendations, when it is defined in the law;

4. exercise other powers assigned to them under the law, the order and way laid down by an internal act or by order of the President of the Court of Auditors;

5. be responsible for the Organization of audit activity and its quality.

(2) in the absence of the Vice President his authority as head of the audit departments shall be exercised by the other Vice-President designated by order of the President of the Court of Auditors.

Functional and territorial organisation

Art. 23. (1) the audit activity in the Court of Auditors is organised in directorates. The Directorates may be ring-fenced departments, sectors, and exported jobs throughout the country.

(2) the Directorates are headed by directors.

(3) The Director shall be appointed a person who:

1. is there a higher education with the degree "master";

2. is there a service and/or work experience of not less than 7 years in the field of audit, financial control, finance or accounting;

3. has won a competition for the Director;


4. possesses experience as a manager not less than three years.

(4) in the absence of a Director of its powers shall be exercised by another Director designated by order of the President of the Court of Auditors.

Chapter four

RIGHTS AND OBLIGATIONS OF THE GOVERNING BODIES AND THE STAFF OF THE COURT OF AUDITORS

Governing bodies and employees of the Court of Auditors

Art. 24. (1) the governing bodies of the Court of Auditors are the President and the Vice-Presidents.

(2) Employees of the Court of Auditors are the directors of departments, heads of structural units, auditors and employees of the administration.

Rights and obligations in an employment relationship

Art. 25. (1) the employment of the staff of the Court of Auditors shall be governed by the provisions of the labour code.

(2) the governing bodies of the Court of Auditors shall have all rights under an employment relationship, except for those that are inconsistent or conflict with their legal situation or of the code of conduct of the Court of Auditors.

(3) the persons referred to in para. 1 are obliged to comply with the requirements of the code of conduct of the Court of Auditors and the application of internationally accepted audit standards and audit activity of the Court of Auditors. Failure of these requirements, the employees of the Court of Auditors shall render themselves liable to disciplinary action under the conditions and pursuant to the labour code.

Auditors

Art. 26. (1) The auditor of the Court of Auditors shall be appointed a person who is:

1. in higher education, with the title "master" and with an employment or work experience not less than three years;

2. passed the exam for the auditor of the Court of Auditors or has a certificate of Auditor;

3. won a competition for appointment in accordance with the rules of selection, appointment, training, evaluation of employment performance and professional development of the employees of the Court of Auditors.

(2) the Audit posts are: auditor, senior auditor senior auditor in the first degree, second degree, Chief Auditor. The increase in Office shall be carried out in accordance with the rules of selection, appointment, training, evaluation of employment performance and professional development of the employees of the Court of Auditors.

(3) For trainee auditor shall be appointed a person with higher education, with an educational qualification degree "master", which won the competition in accordance with the rules of selection, appointment, training, evaluation of employment performance and professional development of the employees of the Court of Auditors. Trainee auditor assists the audit activity.

(4) the Auditors carry out the audits in audit teams. Heads of audit teams shall be determined by the appropriate Vice President and responsible for vocational guidance and quality audits.

Incompatibility for job

Art. 27. (1) For employees of the Court of Auditors shall be appointed persons who have not been convicted of a deliberate crime or are not deprived of the right line to take up a post or to exercise a profession.

(2) upon the occurrence of a change in circumstances under para. 1 the persons notified in writing within 7 days the President of the Court of Auditors, which is bound to act in accordance with legal powers.

Prohibition to perform other paid post or activity

Art. 28. (1) the directors of departments, heads of structural units and the Auditors may not hold any other paid Office or to engage in other paid activity, except in international projects and programs related to the activity of the Court of Auditors, scientific, teaching or activity regulated by the law on copyright and related rights.

(2) the circumstances referred to in paragraph 1. 1 authenticate to the employer with the Declaration.

Obligation for the Declaration of the property status

Art. 29. (1) at the conclusion of the contract of the staff of the Court of Auditors are required to declare their fortune to the President of the Court of Auditors.

(2) each year until April 30, the employees of the Court of Auditors shall declare to the authority under para. 1 their fortune, as well as the resulting from the previous calendar year income from contracts for additional work of art. 111 of the labour code, income from royalties on non-labor relations, as well as employer/contractor who has paid them, and the reasons for their receipt.

Salaries

Art. 30. (1) the basic monthly remuneration of the employees of the Court of Auditors shall be determined by the President in accordance with the internal rules for the payroll and disposals in the budget for the year.

(2) the governing bodies and the staff of the Court of Auditors may receive additional remuneration for the performance in the order established by law or by decision of the Council of Ministers or the internal rules for the payroll.

Internship

Art. 31. (1) the internship of Directors of directorates, the heads of structural units, auditors and employees of the Administration in decision-making and managerial posts with the expertise gained in the relevant posts in the Court of Auditors shall be recognised for work experience when applying for recruitment to posts which require work experience.

(2) length of service to individuals with higher legal education, acquired the posts in the Court of Auditors, respecting an apprenticeship under art. 164, para. 1-7 of the law on the judiciary and in art. 8, al. 1, item 3 of the law on notaries public and notarial activity.

The right of representative clothing


Art. 32. the officers of the Court of Auditors shall be entitled to the annual representative clothing of up to three minimum wages, as funds are provided by its budget.

Honors and awards

Art. 33. the officers of the Court of Auditors may be awarded with accolades and/or with the subject or cash prizes to the amount of the basic monthly salary for the performance of certain tasks within the available funds in the budget for the year. The awards and prizes and the conditions for their award are determined by the regulation for the device and the organisation of the activity of the Court of Auditors.

Obligation of information

Art. 34. (1) the governing bodies, members and employees are obligated to protect classified information constituting State or professional secrecy, as well as commercial, banking or other secret protected by law, and not to disclose any facts and circumstances which have become known to them in or on the occasion of the performance of their duties.

(2) the persons under art. 26 on recruitment sign a declaration for the protection of the secret and the disclosure of the facts and circumstances of the Al. 1.

Training and professional qualification

Art. 35. (1) Employees of the Court of Auditors are required to participate in the training organized by the Court of Auditors to maintain and further training.

(2) the costs under paragraph 1. 1 shall be borne by the budget of the Court of Auditors.

Evaluation of labor performance. Effects

Art. 36. (1) Employees of the Court of Auditors shall be subject to an annual assessment of the performance of the employment.

(2) the evaluation of employment performance is carried out under conditions and by an order determined by the regulation for the selection, appointment, training, evaluation of employment performance and professional development of the employees of the Court of Auditors.

(3) the employment of an employee may be terminated when he received two consecutive lowest annual assessments.

Insurance

Art. 37. The governing bodies, directors, heads of structural units and Auditors must insure with "life insurance" and "accident" at the expense of the budget of the Court of Auditors.

Chapter five

AUDIT WORK. POWERS AND DUTIES OF THE ADMINISTRATIVE AUTHORITIES, DIRECTORS OF DEPARTMENTS, HEADS OF STRUCTURAL UNITS AND AUDITORS

Procurement audits

Art. 38. (1) the audits on the annual program for the audit activity is awarded with an order of the Vice-President of the Court of Auditors.

(2) the audits on the decision of the National Assembly are assigned by order of the President of the Court of Auditors.

(3) the audits shall be carried out in the audited entity and/or in the Court of Auditors under a programme approved by the Vice-President, respectively by the President in the cases referred to in para. 2.

Powers when carrying out audits

Art. 39. (1) the governing bodies of the Court of Auditors, directors of departments, heads of structural units and auditors during and in connection with the audits shall be entitled:

1. free access to the business premises and to all documents, records and assets relating to the financial management of the audited organisations, including requiring annual financial statements of companies with State and municipal participation, subject to audit, and the minutes of the meetings of their bodies;

2. to require that in certain of these time limits, certified copies of documents and other information in relation to the preliminary study and the conduct of audits, including in electronic form;

3. require oral and written explanations from the officials, including former officials, the facts that have been identified in the audits, as well as on matters related to their activities;

4. to require reports, certified copies of documents and other information from individuals, legal persons and sole proprietors outside the audited object associated with possible cases of illegal activity affecting the financial interests and property of the audited entity or the accounts for funds from the European Union;

5. to request and receive information from all the authorities in the country, as well as access to their bases of data in connection with the activity of the Court of Auditors;

6. to attend the meetings of the organs of the audited organizations and persons, if their daily line is in relation to the audit.

(2) in exercising the powers under para. 1 access to classified information shall be carried out under the conditions and by the procedure of the law for the protection of classified information.

(3) the Auditors of the Court of Auditors may require the carrying out of inventory in connection with the audits.

Obligations of managers and officials in the audited organisations

Art. 40. (1) managers and officials in the audited organizations are required to provide assistance to the persons under art. 39, para. 1 in the exercise of their powers and to provide suitable premises and technical equipment to perform audits, including the use of telecommunications.

(2) the persons referred to in para. 1 cannot rely on the State, professional, commercial, banking or other secret protected by law when carrying out of audits by the Court of Auditors.

(3) upon refusal of assistance for the exercise of powers under art. 39, including for failure to submit the required information, the President, after a written warning, disclosed the illegal behavior of the officials on the website of the Court of Auditors.


(4) upon refusal to provide information under art. 39, para. 1, item 4, the President has the right to issue an order to carry out the verification of the legal entity or sole trader in connection with refusal of information.

(5) when obstruction of the verification referred to in paragraph 1. 4 of the legal entity or sole trader from the Court of Auditors shall notify the authorities of the public prosecutor's Office.

(6) written evidence Collected in the investigation under paragraph 1. 4 are an integral part of the documentation for the audit in the organization being audited.

Liability for damage

Art. 41. The governing bodies of the Court of Auditors, directors of departments, heads of structural units and Auditors do not bear liability for the damage caused in the exercise of their powers, unless they have committed a crime or have acted intentionally.

Conflict of interest in carrying out audits

Art. 42. (1) the Auditors may engage persons who have relatives in a straight line without limits and collateral relatives up to the fourth degree inclusive by officials in the audited entity whose activity is connected with the collection or spending of budgetary and other public funds and property management under art. 6, or their spouses or unmarried couples, partnerships, as well as those who worked in the audited entity or participated in its management over the last three years, or have a private interest within the meaning of the law on the prevention and identification of conflict of interest from the current activity.

(2) the circumstances referred to in paragraph 1. 1 shall be declared in writing prior to the commencement of the audit to the Vice President.

(3) where the incompatibility under para. 1 is found in the audit process, individuals are required to make a written objection.

(4) the declarations referred to in para. 2 and arresters under para. 3 are an integral part of the documentation for the audit.

External experts

Art. 43. (1) in specific cases to verify the specific issues in audits may involve external experts and in compliance with the requirements of art. 42 and the internationally accepted audit standards.

(2) the persons referred to in para. 1 shall sign a declaration to maintain secrecy and disclosure of the facts and the circumstances under art. 34, para. 1.

Measures during the audit in the unlawful and damaging actions

Art. 44. in the process of auditing actions that create the opportunity for the unlawful collection or spending of budgetary or other public funds, as well as for damage to property of the audited entity, the responsible Vice-President on a proposal from the head of the audit team and the Director shall inform the relevant competent authority for the taking of measures to stop the action.

Preparation of a draft audit report

Art. 45. the head of the audit team shall prepare a draft of the audit report in accordance with accepted audit program and subject to the requirements of law, internationally recognised audit standards and the acts of the Court of Auditors.

Powers of Director of the Directorate. Control procedure

Art. 46. (1) the Director shall exercise control of conformity of the draft audit report with the requirements under art. 45, evaluated the evidence regarding their reliability and sufficiency to the findings, conclusions, and recommendations.

(2) in the Al. 1 the Director shall be assisted by the heads of structural units.

(3) within 30 days of the submission of the Project Director shall give a reasoned decision in writing:

1. Approves the draft audit report;

2. returns the draft audit report with guidelines for supplementation and correction of the flaws.

(4) within 7 days from the decision on para. 3, item 2, the head of the audit team sent a revised draft of the audit report to the Director for approval.

(5) upon disagreement with the instructions given, the head of the audit team makes an objection in writing to the Vice President.

(6) the Vice-President of the Court of Auditors shall examine the objection and shall decide within 7 days by reasoned written decision, which is final.

Service of the draft audit report

Art. 47. (1) the approved draft of the audit report is presented to the head of the organization being audited, as well as the former chiefs of the organisation during the period audited, not later than one month from the issuance of a decision under art. 46, para. 3, item 1.

(2) Notwithstanding the obligation of notification under paragraph 1. 1 notice of service of the approved draft of the audit report is published on the website of the Court of Auditors, as the governing body of the Court of Auditors may take other actions for the timely notification of the former heads of the audited organization.

(3) the persons referred to in para. 1 may provide written comments on the draft of the audit report, providing additional evidence and/or additional written explanations within 14 days of the service.

(4) upon the written request of the persons referred to in para. 1 the responsible Vice-President of the Court of Auditors may extend the period referred to in paragraph 1. 3 with 7 days.

(5) the Vice-President of the Court of Auditors shall draw up a reasoned conclusion on opinions on al. 3 within 14 days of receipt. Within three days from the date of manufacture, the Vice-President submitted at a session of the Court of Auditors report, opinions on al. 3, the reasoned opinion and written motivated proposals for changes to the findings, conclusions, or recommendations.


(6) upon closure of the audited organization the draft audit report is presented to the head of the successor in title. When there is no successor, the draft audit report shall be transmitted for information to the Authority took the decision to close down the organization.

Final audit report

Art. 48. (1) the Court of Auditors shall examine the draft report, together with the conclusion and opinions on art. 47, para. 5, and shall adopt by decision the final audit report on the basis of an overall assessment of the evidence, opinions and explanations as you can:

1. accept or reject in whole or in part the conclusion on art. 47, para. 5 and the proposed amendments thereto and to adopt, amend, cancel all or part findings, conclusions, assessments and recommendations in the audit report;

2. reject entirely the audit report because of persistent deficiencies and irregularities in it.

(2) where a change in the findings, conclusions and recommendations, in the audit report lead to conclusions about infringements, which are looking for a heavier responsibility, the President of the Court of Auditors shall notify the head of the audited organization.

(3) the head of the audited organization may submit additional written objection to the changes in the Al. 2 within 14 days of the service.

(4) the Court shall pronounce a final decision on its further submitted an objection under paragraph 1. 3.

Send the audit report of the audited entity

Art. 49. (1) the Court of Auditors shall transmit to the head of the organization being audited final audit report within 7 days of its adoption.

(2) when the audited organization is a secondary or lower level budget officer by the report under para. 1 is the authorising officer by delegation shall forward and with a budget for information or for the taking of concrete actions in accordance with statutory powers.

(3) the Court may submit the report and other bodies that are relevant to the audit, for information or to take appropriate action.

Control of the implementation of the recommendations

Art. 50. (1) the President of the Court of Auditors or authorized by him Vice-President organizes the implementation of timely control of the implementation of the recommendations.

(2) the head of the organization being audited is required to adopt measures for the implementation of the recommendations and to notify in writing the President of the Court of Auditors the report within a specified time limit which shall be consistent with the nature of the recommendations.

(3) failure to carry out recommendations of the Court of Auditors shall send a report with proposals for action according to the National Assembly, the Council of Ministers or of the Municipal Council.

Measures in the event of infringement of the public procurement regime of art. 51. (1) When are infringements of public procurement procedures, the audit report in the section on violations of the procedures shall be communicated to the public procurement Agency to take appropriate action.

(2) the report referred to in paragraph 1. 1 shall be forwarded within 7 days of receipt of the audit report.

Request for dismissal of the guilty person

Art. 52. With the audit report the Court of Auditors has to offer dismissal of the person who has managerial responsibility and as a consequence of his act or omission are admitted violating the law or are not fulfilled by the Court of Auditors recommendations.

A proposal to limit the costs of the audited organization

Art. 53. (1) following the adoption of the final audit report, as well as a refusal of certification of financial report the Court may propose to the Minister of finance to implement art. 107 of the Act on public finance in relation to the audited organization that violates the law or the system does not implement the recommendations to eliminate the violations.

(2) a proposal under paragraph 1. 1 cannot contain measures that lead to the suspension of the activities of the organization.

Financial audit

Art. 54. (1) the Court of Auditors carries out financial audit of:

1. annual financial statements of the organizations – primary spenders with a budget, budget organizations – minor ministries budget, exercising independent budgets pursuant to special laws;

2. annual financial statements of municipalities for which the total amount of reported expenditure budget accounts for the funds of the European Union accounts for foreign funds of the preceding year exceeds $ 10 million. BGN;

3. other financial statements, where this is provided for in law.

(2) the Court of Auditors shall carry out financial audits of the annual financial statements of municipalities for which the total amount of reported expenditure budget accounts for the funds of the European Union accounts for foreign funds for the previous year does not exceed $ 10 million. EUR, with periodicity defined by it, or on the basis of a risk assessment.

(3) financial audits shall be conducted in accordance with this law, internationally recognised audit standards and the acts of the Court of Auditors.

(4) Periodic reports on the implementation of budgets, the accounts for funds from the European Union and of the accounts for foreign funds, as well as to persons working on Al-rolls. 1 shall provide the Court of Auditors to carry out preliminary research, risk assessment and monitoring as an intermediate stage of the implementation of the financial audit of the annual financial statement.

(5) the procedure and time limits for presentation in Court of Auditors reports on al. 1 and 4 shall be established by the Minister of finance in agreement with the Court of Auditors.


(6) in the non-submission of reports or presentation after the time limit referred to in paragraph 1. 5 the President of the Court of Auditors shall notify the Minister of finance to undertake concrete actions in accordance with the laws of his powers.

(7) the award of financial audit under para. 1 shall be made by order of the responsible Vice President.

(8) the head of the audit team shall prepare a draft of the audit report and opinion on the audit conclusion for endorsement, certification, or the denial of an opinion on the expression statement, subject to the requirements of this law, internationally recognised audit standards and the acts of the Court of Auditors. Oditnoto opinion on certification of financial report can be:

1. audit opinion for certification without reservations (nemodificirano opinion);

2. the audit opinion for endorsement without reservation with the addressing (nemodificirano opinion);

3. the audit opinion for endorsement with the reserves (qualified opinion).

(9) the reasons for forming the audit opinion in financial audit are determined with internationally accepted audit standards.

(10) the draft of the audit report and opinion under paragraph 2. 8 shall be reviewed and approved by the Director of who performs the procedure of quality control by the procedure of art. 46.

(11) the draft of the audit report and opinion oditnoto are served to the head of the audited organization or persons authorised by him. The head of the organization being audited and/or persons authorised by it can provide written comments on the draft power vested audit report and audit opinion, providing additional evidence and/or additional written explanations within 14 days of the service.

(12) at the written request of the head of the organization being audited and/or persons authorised by it the responsible Vice President may extend the period referred to in paragraph 1. 11 with 7 days.

(13) the Vice-President of the Court of Auditors shall draw up a reasoned conclusion on opinions on al. 11 within 14 days of receiving them, approving a final audit report and audit opinion referred to in paragraph 1. 8, item 1 or 2. The final audit report and opinion oditnoto are sent within 7 days of the audited organization.

(14) in the case of the audit opinion for endorsement with reserves of refusing certification or a waiver of the expression of opinion, the Vice-President shall prepare a reasoned conclusion on opinions on al. 11 within 14 days of receipt. Within three days from the date of manufacture, the Vice-President submitted at a session of the Court of Auditors report, oditnoto opinion, opinions on al. 11 and reasoned conclusion. In its decision the Court of Auditors shall adopt the final audit report and audit opinion based on a comprehensive assessment of the evidence, opinions on al. 11 and the conclusion by may accept or reject in whole or in part the conclusion and suggestions made to him and to adopt, amend or repeal in whole or in part the findings, conclusions, assessments and recommendations in the audit report and the format of the audit opinion.

(15) the Court of Auditors shall transmit to the head of the organization being audited final audit report and opinion under paragraph oditnoto. 14 within 7 days of their adoption.

(16) in the event of a refusal to certify or to withdraw from the expression of an opinion, the Court of Auditors shall notify the Minister of finance, who may take the measures referred to in art. 107 of the Act on public finances. When the audit refers to the secondary officer by budget, oditnoto opinion is sent to the relevant authorising officer and major with the budget.

The application of the administrative code

Art. 55. (1) For the outstanding issues in the production of art. 38 – 54 shall apply mutatis mutandis the provisions of chapters two, five and seven of the administrative code.

(2) the final audit reports and opinions are not subject to appeal through the courts.

Reports with opinions on the reports for the implementation of the budgets

Art. 56. (1) the Council of Ministers, the National Security Institute, the national health insurance fund and the BULGARIAN NATIONAL BANK shall submit to the Court within 7 days from their approval reports respectively for the execution of the State budget, State social insurance budget, the budget of the national health insurance fund and the budgetary costs of the BNB.

(2) the Court of Auditors shall draw up reports with opinions on the reports referred to in paragraph 1. 1 not later than three months from the receipt thereof.

Notifications to the competent authorities to take measures

Art. 57. (1) subject to the availability of data for damages and irregularities in the implementation of the budgets and accounts for funds from the European Union or in the management of the property, which do not constitute a crime, the Court of Auditors shall send the audit report of the relevant competent authority to search for property or administrativnonakazatelna responsibility. The relevant authority is required within 14 days of receipt of the materials of the audit or audit report commissioned to carry out the necessary actions for accountability.

(2) the authority under para. 1 notify the President of the Court of Auditors shall, within two months of receipt of the materials of the audit or audit report on the action taken on them.

(3) the Court shall make the notifications received, as well as non-compliance with the obligation to notify.

Notification when data for crime

Art. 58. (1) subject to the availability of data for the crime the Court of Auditors shall send the audit report and the materials to him of the Prosecutor's Office.


(2) the authorities of the public prosecutor shall inform the Court of Auditors is currently of the action taken on submissions under para. 1.

(3) the Court may not make the data in the cases referred to in para. 1 pending completion of the criminal proceedings.

(4) subject to the availability of data on crime in the management of the accounts for funds from the European Union, by decision of the Court of Auditors audit materials or the audit report be sent to specialized bodies to prevent and combat fraud and corruption in the European Union.

Disclosure of audit reports

Art. 59. (1) the Court shall make audit reports that are not protected by confidentiality, including the accounts for funds from the European Union, as well as opinions on art. 56. (2) the disclosure is made through the website of the Court of Auditors.

(3) audits carried out shall not be made before the final audit report under art. 48 and article. 54, para. 13 and 14.

(4) the reports and opinions on art. 56, para. 2 shall be made after their introduction in the National Assembly.

Disclosure of other circumstances

Art. 60. the Court of Auditors announced through its website non-fulfilment of the obligations under art. 40, non-compliance with the recommendations, the refusal of dismissal under art. 52, as well as other circumstances specified by decision of the Court of Auditors.

Audit reports of the funds and programmes of the European Union and on the implementation of the international instruments

Art. 61. Reports on audits, including the audit evidence of the accounts for funds from the European Union and on the implementation of the international instruments referred to in art. 6, al. 2, item 9 shall be made available to the European Court of Auditors and the European Commission.

Chapter six

ACCOUNTABILITY AND CONTROL OVER THE ACTIVITY OF THE COURT OF AUDITORS

Tabling of reports in Parliament

Art. 62. (1) the Court of Auditors shall submit to the National Assembly:

1. reports with opinions on the reports on the implementation of the State budget, State social insurance budget, the budget of the national health insurance fund and the budgetary costs of the BNB for the previous year;

2. reports with opinions about carried out audits of budgetary systems or with significant results for the corresponding budgets and other public resources and activities;

3. audit reports for audits on the decision of the National Assembly.

(2) the National Assembly shall examine the reports referred to in para. 1, paragraphs 1 and 3, within three months of their introduction.

(3) at the request of the National Assembly or of his Commission, the Court of Auditors provides the specific audit reports.

Proposals for the consideration of audit reports

Art. 63. the Court of Auditors may make proposals to the Assembly and its committees for consideration of audit reports with important implications for improving budgetary discipline and budget management and/or other public funds and activities.

Report on the activities of the Court of Auditors

Art. 64. (1) in the period to 30 September of the current year the Court of Auditors shall submit to the National Assembly a report on its activities for the previous year.

(2) the report shall be published on the website of the Court of Auditors.

Audit of the annual financial report of the Court of Auditors

Art. 65. (1) the annual financial statement of the Court of Auditors shall be audited by an independent Commission, which include at least two registered Auditors.

(2) the size and composition of the Commission under para. 1 shall be determined by the National Assembly.

(3) the report of the Committee on the report under para. 1 shall be submitted to the National Assembly, together with a report on the activities of the Court of Auditors for the year.

(4) the President of the Court of Auditors may deliver a written opinion on the report under para. 3, which applies to it and shall be submitted to the National Assembly.

(5) the report under para. 3 shall be made public after its adoption by the National Assembly, together with the opinion referred to in paragraph 1. 4.

(6) the costs of conducting the audit referred to in paragraph 1. 1 shall be borne by the budget of the Court of Auditors.

Chapter seven

ADMINISTRATIVE PENAL PROVISIONS

Art. 66. (1) for violation of art. 40, para. 1 and 2 and art. 57, al. 2 the guilty parties are punished with a fine of 1000 to 5000 EUR

(2) in the event of a repeated offence under subsection. 1 the fine is from 2000 to 10000 EUR

(3) in the case of obstruction of the verification referred to in art. 40, para. 4 the person shall receive financial penalties representing in size from 2,000 to 10,000 BGN.

Art. 67. (1) the acts for a finding of infringement shall be drawn up by the Auditors, and the penal provisions shall be issued by the President or by an official authorized by him.

(2) Compilation of acts, the issue, the appeal and the implementation of the penal provisions shall be carried out in accordance with the law for the administrative offences and sanctions.

ADDITIONAL PROVISION

§ 1. Within the meaning of this law:

1. "audit" is the inspection which includes the gathering and analysis of financial and non-financial information to assess the management of budgetary and other public resources and activities and accountability in the audited entity in order to improve them.

2. "financial audit" is the expression of an independent audit opinion whether the annual financial report of the budget organization gives a true and fair view of its financial situation and assets in accordance with the identified common framework for financial reporting.

3. "compliance audit" is the verification of the systems for financial management and control, including internal audit and management decisions regarding the Organization, planning, management, reporting and monitoring of budgetary and other public resources and activities in the audited organization with a view to compliance with the requirements of the regulations, the internal regulations and contracts.


4. "performance audit" is the verification of the activities of planning, implementation and monitoring at all levels of Government in the audited entity in terms of their effectiveness, efficiency and economy, such as:

a) "effectiveness" is the degree of achievement of the objectives of the audited entity in the comparison of the actual and the expected results of its activity;

(b)) "efficiency" is achieving maximum results from resources used in carrying out the activities of the audited entity;

c) "economy" is the acquisition with the lowest cost of the resources required for the implementation of the operations of the audited entity in compliance with the quality requirements of resources.

5. "the Audited organization" means any organization that is subject to an audit in accordance with the requirements of this Act.

6. "Special audits" are audits carried out under the conditions and in accordance with a special law. They can be combined audits, which combine the approaches for carrying out financial audit, compliance audit and performance audit.

7. "Financial entity" is a program, activity or function within a separate audited organization or within the public sector as a whole, which are subject to audit.

8. "public funds" are funds within the meaning of § 1, item 1 of the additional provisions of the law on financial management and control in the public sector.

9. "Public assets" are public funds, as well as all assets that are State or municipal property or are subject to rights of budgetary organizations.

10. "Budgetary organizations" are all legal persons within the meaning of § 1, item 5 of the additional provisions of the law on public finance.

11. "financial control" means any form of control relating to the management of public funds and activities conducted by specialized powers and procedures, including budgetary control, financial control, control inspection tax, customs control and the like.

12. "Re" is the infringement committed within one year of the entry into force of the decree by which the offender was punished for the same offence.

13. "internationally recognised audit standards" are:

a) Auditing standards issued by the auditing standards of the international organization of supreme audit institutions (ISSAI) – INTOSAJ;

b) international standards on auditing (International Standarts on Auditing), issued by the Board of the International Federation of Accountants (International Federation of Accountants-IFAC) suitable for financial audit engagements with included additional questions specific to budgetary organizations in the public sector.

TRANSITIONAL AND FINAL PROVISIONS

§ 2. The law on the Court of Auditors (official SG. 35 from 2014; amend., SG. 40 and 98 by 2014) is repealed.

§ 3. (1) within one month from the entry into force of the law the National Assembly shall elect a Chairman, Vice-Chairmen and members of the Court of Auditors.

(2) until the election of a President elected under the revoked law for the Court of Auditors President and members carry out their duties.

§ 4. Within three months of the election of the President, Vice-Presidents and members the Court of Auditors shall adopt regulations for the device and the organisation of the activity of the Court of Auditors.

§ 5. Within one month of the adoption of the rules of the device and the organisation of the activity of the Court of Auditors to conduct a competition for appointment of Directors of directorates.

§ 6. The Court of Auditors, approve and make public acts under art. 20, para. 5, item 2, within 6 months of her election.

§ 7. Uncompleted audits and audits, in which reports are not awarded until the entry into force of the law, completed in accordance with this law.

§ 8. Incumbent acts to the Court of Auditors retained its action, without prejudice to the requirements of this Act.

§ 9. In the public procurement Act (official SG. 28 of 2004; amend., 53/2004, no. 31, 34 and 105 by 2005, issue 18, 33, and 37 79 by 2006, issue 59 (2007), no. 94, 98 and 102 by 2008, no. 24 and 82 from 2009, issue 52, 54, 97, 98 and 99 of the 2010. , PC. 19, 43, 73 and 93 from 2011, issue. 33, 38 and 82 by 2012 PCs. 15 by 2013, PCs. 35 and 40 of 2014) to create a new article. 127 in: "art. 127. (1) the acts for the establishment of offences under this law found by the Court of Auditors shall be drawn up by the Authorised Auditors within six months from the day on which the offender was found, but no later than three years from completion.

(2) the penal provisions shall be issued by the President of the Court of Auditors or by officials authorised by him.

(3) the establishment of violations, the issue, the appeal and the implementation of the penal provisions shall be carried out in accordance with the law for the administrative offences and sanctions. "

§ 10. In the social security code (promulgated, SG. 110; since 1999 decision No 5 of the Constitutional Court from 2000 – 55/2000; amend., no. 64 of 2000, issue 1, 35 and 41 of the 2001, issue 1, 10, 45, 74, 112, 119 and 120 of 2002, no. 8, 42, 67, 95, 112, and 114 from 2003. , PC. 12, 21, 38, 52, 53, 69, 70, 112 and 115 of 2004, PCs. 38, 39, 76, 102, 103, 104 and 105 of the 2005 St. 16, 30, 34, 56, 57, 59 and 68 by 2006; Corr, PCs. 76 of 2006; amend., SG. 80, 82, 95, 102 and 105, 2006, issue. 41, 52, 53, 64, 77, 97, 100, 109 and 113 of 2007, PC. 33, 43, 67, 69, 89, 102 and 109 from 2008, PCs. 23, 25, 35, 41, 42, 93, 95, 99 and 103 of 2009, PCs. 16, 19, 43, 49, 58, 59, 88, 97, 98 and 100 by 2010; Decision of the Constitutional Court No. 7 of 2011-PCs. 45 by 2011; amend., SG. 60, 77 and 100 by 2011, issue. 7, 21, 38, 40, 44, 58, 81, 89, 94 and 99 by 2012 PCs. 15, 20, 70, 98, 104, 106, 109 and 111 by 2013, PCs. 1, 19, 27, 35, 53 and 107 from 2014) in art. 108, para. 6 the words "art. 54, para. 1 "shall be replaced by" art. 57, al. 1. "


§ 11. In the law on health insurance (official SG. 70 of 1998; amend., SG. 93 and 153 of 1998, no. 62, 65, 67, 69, 110 and 113 in 1999, issue 1 and 64 in 2000, 41/2001, no. 1, 54, 74, 107, 112, 119 and 120 of 2002, no. 8, 50, 107 and 114 from 2003. , PC. 28, 38, 49, 70, 85 and 111 in 2004, PCs. 39, 45, 76, 99, 102, 103 and 105 of 2005, St. 17, 18, 30, 33, 34, 59, 80, 95 and 105, 2006, issue. 11 of 2007; Decision of the Constitutional Court No. 3 of 2007 – PCs. 26 of 2007; amend., SG. 31, 46, 53, 59, 97, 100 and 113 of 2007, PC. 37, 110 and 71 of 2008, PCs. 35, 41, 42, 93, 99 and 101 of 2009, PCs. 19, 26, 43, 49, 58, 59, 62, 96, 97, 98 and 100 by 2010, PC. 9, 60, 99 and 100 by 2011, issue. 38, 60, 94, 101 and 102 of the 2012 issue. 4, 15, 20, 23 and 106 by 2013, PCs. 1, 18, 35, 53, and 54 107 by 2014) in art. 72, para. 1 the words "art. 54, para. 1 "shall be replaced by" art. 57, al. 1. "

§ 12. In the law on publicity of the property of persons occupying high government and other posts (official SG. 38 since 2000; amend., SG. 28 and 74 of 2002, no. 8 of 2003 No. 38 of 2004, 105/2005, no. 38 and 73 from 2006, 109/2007, no. 33, 69 and 94 since 2008. , PC. 93 2009 PCs. 18 and 62 by 2010, PC. 38 by 2012, PCs. 30 and 71 by 2013) in art. 2, al. 1 item 10 shall be replaced by the following:

"10. the President, Vice-Presidents and members of the Court of Auditors;".

§ 13. The law on the prevention and the establishment of a conflict of interest (official SG. 94 of 2008; amend., SG. 10, 26 and 101 of 2009, no. 62 and 97 by 2010; 38/from 2012 and 2013 15) is hereby amended as follows:

1. In art. 3 p. 12 is replaced by the following:

"12. the President, Vice-Presidents and members of the Court of Auditors;".

2. In art. 25, para. 2, item 1 the words: "the President and the members of the Court of Auditors ' shall be replaced by" the Chairman, Vice-Chairmen and members of the Court of Auditors ".

The law was adopted by 43-Rd National Rainier sat, 29 January 2015 and is stamped with the official seal of the National Assembly.

President of the National Assembly Tsetska Tsacheva:

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