Law On The Court Of Auditors

Original Language Title: Закон за Сметната палата

Read the untranslated law here: http://parliament.bg/bg/laws/ID/14775/

Name of the law, law on the Court of Auditors Named Bill a Bill to the Court of Auditors adopted 15/04/2014 number/year Official Gazette 35/2014 Decree No 77

On the grounds of art. 101, para. 3 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 HLIÌ National Assembly on 28 March 2014, readmitted on April 15, 2014.

Issued in Sofia on April 17, 2014.

The President of the Republic: Rosen Plevneliev

Stamped with the State seal.

Minister of Justice: Zinaida Zlatanova

LAW

for the Court of Auditors

Chapter one

GENERAL

Subject

Art. 1. (1) this Act regulates the device functions, powers and organization of the activity of the Court of Auditors.

(2) the Court of Auditors carried out an external audit of the budget and of other public funds and activities in accordance with this law and internationally accepted audit standards.

(3) the Court of Auditors is a legal person of a budget based maintenance.

Main task

Art. 2. the main task of the Court of Auditors is to monitor the reliability and accuracy of the financial statements of budgetary establishments, the legal, economical, effective and efficient management of public funds and activities, and to submit to the National Assembly a reliable and objective information about 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 Court of Auditors carries out its functions on the basis of the following principles:

1. independence, legality, 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

THE STATUS AND POWERS OF THE COURT OF AUDITORS

Composition of the Court of Auditors

Art. 5. (1) the Court of Auditors is a collective body, which consists of 9 members, including the Chairman. The Chairman and the members shall be elected and removed by the National Assembly for a period of 7 years. The President can not be re-elected.

(2) The Chairman and members are elected individuals who:

1. have a higher economic or legal education with educational qualification degree "master" and professional experience in law, finance, financial control, auditing or accounting for no less than 15 years for the President and 10 years for members of the Court of Auditors;

2. have not been members of the Government, heads of the central or local authority 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.

(3) the Chairman and members can be persons who each other are:

1. the spouses or in de facto cohabitation;

2. the relatives without limits and collateral relatives up to the fourth degree inclusive;

3. persons associated within the meaning of the law on the prevention and the establishment of a conflict of interest.

(4) the Chairman and the 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. "

Election of the President and members

Art. 6. (1) the National Assembly shall elect a President of the Court of Auditors within three months before the expiry of the term of Office of the President-in-Office.

(2) within 14 days of his election, the President makes a proposal to the National Assembly for the election of members of the Court of Auditors. The National Assembly shall elect the members of the Court of Auditors within 14 days from the receipt of the proposal.

(3) the chosen under para. 1 and 2, the Chairman and members of the Court of Auditors enter into Office on the day of the expiry of the term of Office of the persons whose place are selected.

(4) the chosen under para. 1 and 2, the President and members of the Court of Auditors shall be released of them occupied posts and cease the activities that are incompatible with their status, until the day of taking office.

(5) the Chairman and the members of the Court of Auditors shall continue to exercise their powers until the inauguration of their successors.

(6) the Chairman and the members of the Court of Auditors may not hold any other paid Office or to engage in other paid activity, except scientific, teaching or activity regulated by the law on copyright and related rights.

(7) within 14 days of taking office, the President and the members of the Court of Auditors take action to release from the performance of other paid post and for the termination of another paid activity.

Remuneration of the Chairman and the members art. 7. (1) the President shall receive a basic monthly remuneration amounting to 90 per cent of the remuneration of the Chairman of the National Assembly.

(2) members receive a basic monthly remuneration at a rate 90 per cent of the remuneration of the President.

Early termination of the powers of art. 8. (1) the authority of the President and members of the National Assembly shall end before the expiry of their term of Office:

1. at their written request;

2. failing to carry out their duties for a period longer than six months;


3. When you are convicted of an indictable offence intentionally or through the courts are deprived of the right to hold office;

4. due to incompatibility under art. 5, al. 2 and 3, occurred after the selection;

5. 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;

6. in case of a serious violation of the law or the ethical code of the Court of Auditors;

7. upon death.

(2) upon termination of the authority of the President, the National Assembly shall designate a member of the Court of Auditors to perform his duties until the election of a new President.

(3) in the cases referred to in para. 1, item 2-5 the President makes a reasoned proposal to the National Assembly for the release of the relevant article.

(4) in the cases referred to in para. 1 6 the Court of Auditors make a reasoned proposal to the National Assembly. The proposal of the Court of Auditors shall be adopted by a two-thirds majority of the members voting as not participating in this article or the President of the Court of Auditors, for the reason for the termination.

(5) upon termination of the authority in the cases referred to in para. 1, 2-6, the President or a member of the Court of Auditors established by its decision made within 14 days a proposal for the election of a new President or member.

(6) the President-elect or completes the mandate of one of whose place is selected.

Powers of the Court of Auditors

Art. 9. (1) the Court of Auditors as a collective body organizes, manages and controls the audit activity under this law.

(2) the Court of Auditors shall adopt their decisions on meetings attended by at least 5 of its members. Decisions shall be taken by a majority of more than half of all members.

(3) the meetings shall be chaired by the President of the Court of Auditors. In the absence of the Chairman, meetings shall be chaired by a member of the Court of Auditors, which it replaces.

(4) the Court of Auditors shall have the following powers:

1. adopts the 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, code of ethics for employees in the Court of Auditors, 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 Auditors and employees, strategies, policies, guidelines and other internal acts;

3. approve the organisational structure of the Court of Auditors determines audit and heads of divisions at the proposal of the President of the Court of Auditors;

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

5. prepare a report on the activities of the Court of Auditors and shall submit it to the National Assembly for adoption;

6. adopt rules, terms and conditions for carrying out the examination on the appointment of Auditors the Court of Auditors.

(5) the decisions referred to in paragraph 1. 4, item 2 shall be adopted by a 2/3 majority of all the members of the Court of Auditors.

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

Powers of the President art. 10. the President:

1. manage and organize the activities of the Court and represent it in the country and abroad;

2. proposes that the Court of Auditors, the distribution of the audit divisions between members of the Court of Auditors;

3. determine an alternate in the absence;

4. exercise the powers of the high officer by budget;

5. enter into, amend and terminate employment contracts with the staff of Auditors and the Court of Auditors.

Applicability of the labour code

Art. 11. The Chairman and the members of the Court of Auditors shall have all rights under an employment relationship, except for those that are inconsistent or conflict with their legal position.

Chapter three

FUNCTIONS AND ACTIVITIES OF THE COURT OF AUDITORS

Types of audits

Art. 12. (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 legal 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. 13. (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 Bulgarian Academy of Sciences, public high schools, the Bulgarian national radio and Bulgarian national television;

3. the appropriations provided to persons engaged in business;

4. the resources of the funds and programmes of the European Union, including their management of the relevant authorities and end-users;

5. the budgetary costs of the Bulgarian National Bank 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 more than 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 Bulgarian National Bank, which presented in the National Assembly.

An annual programme for the audit activity

Art. 14. (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 publication of the State budget of the Republic of Bulgaria for the year in the Official Gazette, but no later than 31 January of the following 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 resources of the funds and programmes of the European Union shall be sent to the European Court of Auditors and the European Commission for information.

Budget of the Court of Auditors

Art. 15. (1) the Court of Auditors shall draw up a draft of its annual budget, which it shall submit to the Treasury Department for inclusion in the draft law on the State budget for the respective year.

(2) the Council of Ministers may not amended the draft budget of the Court of Auditors, but merely expresses an opinion on it in front of the National Assembly.

(3) the Court of Auditors has an independent budget, which is part of the State budget.

(4) the officer by the budget of the Court of Auditors is the President of the Court of Auditors.

Cooperation with institutions in the Republic of Bulgaria

Art. 16. (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. 17. (1) the Court of Auditors shall co-operate 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 of the funds under art. 13, para. 2, item 4 and with supreme audit institutions of other countries on the implementation of the international instruments referred to in art. 13, para. 2, item 9, where this is provided for in the signed agreements.

Organization of the activity of the Court of Auditors

Art. 18. (1) the activity of the Court of Auditors is organised into spaces.

(2) the Board shall establish the functional principle.

(3) the number and scope of the activities of the boards shall be determined by decision of the Court of Auditors.

(4) the Board may carry structural units.

Manual of the audit departments

Art. 19. (1) the Board shall be governed by the members of the Court of Auditors, which are defined with its decision on a proposal from the President. A member of the Court of Auditors could run only one compartment.

(2) the powers of the Member of the Court of Auditors as the head of the Department shall be laid down in this law and exercised on the order and manner laid down in the rules for the device and the organisation of the activity of the Court of Auditors and the internal acts governing the audit activity.

Powers of the members of the Court of Auditors as heads of departments

Art. 20. (1) the members of the Court of Auditors: 1. guide the audit divisions;

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

3. submit for consideration and adoption at the meeting of the Court of Auditors, audit reports, together with the opinions on them, produced conclusions and recommendations for improving the operations of the audited projects;

4. exercise other powers assigned to them under the law, the order and way laid down by an internal act or an 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 a member of the Court of Auditors its powers as head of the Department shall be exercised by another Member of the Court of Auditors appointed by order of the President.

Chapter four

RIGHTS AND OBLIGATIONS OF THE STAFF OF THE COURT OF AUDITORS

Employees of the Court of Auditors

Art. 21. (1) Employees of the Court of Auditors are Auditors and employees of the administration.

(2) the Court of Auditors performs auditing powers by the Auditors.


(3) the employees of the Administration serve the audit and administrative activity of the Court of Auditors.

Rights and obligations in an employment relationship

Art. 22. (1) the employment of the staff of the Court of Auditors shall be governed by the provisions of the labour code.

(2) Employees are required to comply with the requirements of the code of conduct of officers in the Court of Auditors and the application of internationally accepted audit standards and audit activity of the Court of Auditors. Failure of these requirements of the employees of the Court of Auditors may be imposed disciplinary sanctions under the conditions and in accordance with the procedure laid down in the labour code.

Auditors

Art. 23. (1) The auditor of the Court of Auditors shall be appointed:

1. in higher education, educational qualification degree "master" and work experience of not less than three years after the acquisition of qualifications "master", and 2. won a competition for appointment in accordance with the rules of selection, appointment, training, evaluation of employment performance and professional development of the staff of Auditors and the Court of Auditors, and

3. has passed the exam for auditor at the Court of Auditors in accordance with the rules, terms and conditions for carrying out the examination on the appointment of Auditors the Court of Auditors or has a certificate of Auditor.

(2) the Audit posts are auditor, senior auditor senior auditor in the first degree, second degree, Chief Auditor and head of structural unit in the Audit Department. 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 staff of Auditors and the Court of Auditors.

(3) For trainee auditor shall be appointed a person with higher education, 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 staff of Auditors and 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 relevant head of Department and responsible for vocational guidance and quality audits.

Incompatibility for job

Art. 24. (1) For employees of the Court of Auditors shall be appointed persons who have not been convicted of a deliberate crime and are not judicially deprived of the right to hold office or pursue a profession.

(2) upon the occurrence of a change in circumstances under para. 1 persons are obliged to inform in writing within 7 days the President is obliged to take action in accordance with the laws of his powers.

Internship

Art. 25. (1) the internship of Auditors and employees of the administration of management and expert jobs shall be recognized for 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. 26. the officers of the Court of Auditors shall be entitled to represent clothing per year, as funds are provided for it by its budget. The amount and type of clothing annually, the representative shall be determined by decision of the Court of Auditors.

Additional workers in the Court of Auditors

Art. 27. the officers of the Court of Auditors shall be entitled to additional paid annual leave to 12 working days for the performance of his duties outside office hours. The specific amount of the additional paid annual leave is determined by the President of the Court of Auditors on a proposal from the relevant head of Department or head of structural unit to the administration of the Court of Auditors.

Honors and awards

Art. 28. (1) Employees of the Court of Auditors may be awarded only once with honors and with slides 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.

(2) 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.

A ban on carrying out a paid activity

Art. 29. (1) the Auditors may not hold any other paid Office or to engage in other paid activity, except scientific, activity as an educator in an educational establishment or activity regulated by the law on copyright and related rights.

(2) the circumstances referred to in paragraph 1. 1 authenticate in writing to the President of the Court of Auditors with a declaration following an audit office or in the event of a change in circumstances.

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) Employees 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 with the internal rules for the payroll.

Obligation of information


Art. 31. (1) the Chairman, members and staff of the Court of Auditors have a duty 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 Chairman, members and staff of the Court of Auditors shall sign a declaration to maintain secrecy and disclosure of the facts and circumstances under para. 1. declarations shall be signed on the day of the inauguration.

Training and professional qualification

Art. 32. (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. Consequences of art. 33. (1) Employees of the Court of Auditors shall be subject to an annual assessment of employment performance.

(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 employees.

(3) the employment of an employee may be terminated without notice, when he received two consecutive lowest annual assessments.

Insurance

Art. 34. From the budget of the Court of Auditors must insure themselves with insurance "life" and "accident" President, members, auditors and trainee Auditors of the Court of Auditors.

Chapter five

AUDIT WORK. POWERS OF HEADS OF DEPARTMENTS AND AUDITORS

Procurement audits

Art. 35. (1) the audits on the annual program for the audit activity is awarded with an order of the head of Department.

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

(3) the audits shall be carried out in the audited entity and/or at the premises of the Court of Auditors on the programme, approved by the head of Department, respectively, by the President, in the cases referred to in para. 2.

Methodology for carrying out of audit activity

Art. 36. (1) the audits shall be carried out in accordance with the manual on the application of internationally accepted audit standards and audit activity of the Court of Auditors and the other adopted by decision of the Court of Auditors audit methodology.

(2) the acts referred to in paragraph 1. 1 shall be published on the website of the Court of Auditors.

Powers when carrying out audits

Art. 37. (1) the heads of departments 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 resources of the funds and programmes of 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. 38. (1) managers and officials in the audited organizations are obliged to assist the heads of departments and Auditors 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 to provide information under art. 37 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.

(4) in case of obstruction of the verification referred to in paragraph 1. 3 of the legal entity or sole trader from the Court of Auditors shall notify the authorities of the public prosecutor's Office.

(5) written evidence Collected in the investigation under paragraph 1. 3 and the notification under paragraph 1. 4 are an integral part of the documentation for the audit in the organization being audited.

Liability for damage

Art. 39. the Chairperson, the members of the Court of Auditors 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.


Incompatibility and conflict of interest in carrying out audits

Art. 40. (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. 13, or are 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 disclosure 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 audit to the 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. 41. (1) in specific cases to verify the specific issues in audits may involve external experts and subject to incompatibility under art. 40, para. 1 and the internationally accepted audit standards.

(2) upon conclusion of the contract the persons referred to in para. 1 shall sign a declaration to maintain secrecy and disclosure of the facts and the circumstances under art. 31, para. 1.

Measures during the audit in the unlawful and damaging actions

Art. 42. 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 head of the Division, on the proposal of the head of the audit team shall notify in writing the competent authority to take measures to stop the action.

Preparation of a draft audit report

Art. 43. (1) within 14 days of the completion of the audit, 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 the law and internationally accepted audit standards.

(2) the audit report under para. 1 includes its findings and evaluations, supported by audit evidence and recommendations for improving the operations of the audited entity.

Powers to the head of the Department

Art. 44. (1) the head of the Department exercise control of conformity of the draft audit report with accepted audit program and internationally accepted audit standards. The rights and duties of the head of the Department for the control of the quality of the audit reports shall be defined in the Handbook for the application of international auditing standards and audit activity of the Court of Auditors.

(2) in the exercise of control of compliance referred to in paragraph 1. 1 (quality control) head of the Department may return the draft audit report with instructions for follow-up and to set a deadline for elimination of deficiencies.

(3) upon disagreement with the guidelines referred to in para. 2 the head of the audit team makes an objection in writing to the Court of Auditors.

(4) the Court of Auditors shall examine the objection and shall decide by reasoned written decision, which is final.

Service of the draft audit report

Art. 45. (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, within 30 days after the completion of the audit.

(2) Notwithstanding the obligation for service on the audit report under para. 1, the service is published on the website of the Court of Auditors, as the relevant authority of the Court of Auditors may take other actions for the timely notification of the former heads of the audited organization.

(3) the head of the organization being audited, as well as the former chiefs of the organisation during the period audited, can give written observations on the draft audit report, providing additional evidence and/or additional written explanations within 14 days of the service.

(4) upon the written request of the head of the audited entity or the former leaders of the organisation during the period audited, the head of the Department may extend the time limit referred to in paragraph 1. 3 with 7 days.

(5) the head of Department shall prepare a reasoned conclusion on objections under para. 3 within 14 days of receipt and submit them for adoption to the Court of Auditors, together with the audit report.

(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 the organization.

Final audit report

Art. 46. (1) the Court of Auditors on a proposal from the head of the Department, on the basis of an overall assessment of the evidence and of the objections and explanations of the persons under art. 45, if any, can:

1. accept the full audit report;

2. accept or reject in whole or in part the conclusion on art. 45, para. 5 and the proposed amendments thereto and as a result, to adopt, amend, cancel all or part findings, conclusions, assessments and recommendations in the audit report;

3. reject the full audit report because of persistent deficiencies and irregularities in it.

(2) when changes in the audit report lead to conclusions about infringements, which are looking for a heavier responsibility, the President shall inform, in writing, the head of the audited organization.


(3) the head of the audited entity may submit a written objection to further changes in the findings, assessments and conclusions on the Al. 2 within 14 days of receipt of the notification.

(4) the Court shall decide on the final additional objection under paragraph 1. 3.

(5) the decision of the Court of Auditors are not subject to appeal.

Send the audit report of the audited entity

Art. 47. (1) the President shall forward to the head of the organization being audited final audit report within 7 days of its issue.

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

Control of the implementation of the recommendations

Art. 48. (1) the head of the Department organize the implementation of timely control of the implementation of the recommendations and regularly inform the Court of Auditors.

(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 Manager of the Department within the time limit set out in the final audit report period. The deadline for implementation of the recommendations must be consistent with the nature of the recommendations.

(3) in the event of the President's recommendations shall send a report with proposals for appropriate action by the National Assembly, the Council or Municipal Council.

Measures for violations of the procedure of public procurement

Art. 49. (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 and the Agency for State financial inspection within 7 days of receipt of the audit report for taking appropriate action.

(2) audit reports referred to in paragraph 1. 1 adopted by the decision of the Court of Auditors, shall constitute an official document on the basis of which the authorities of the State Inspection Agency financial administrative-penal proceedings form. If necessary, the authorities of the State Inspection Agency financial may collect evidence in accordance with art. 13 of the law on State financial inspection, without requiring the award of financial inspection of the same object.

A proposal to limit the costs of the audited organization

Art. 50. (1) After the issuance 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.

The application of the administrative code

Art. 51. For the outstanding issues in the production of art. 36 – 47 shall apply the provisions of the administrative code.

Financial audit

Art. 52. (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;

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

(2) financial audits shall be conducted in accordance with this Act, the acts for its implementation and internationally accepted audit standards.

(3) Periodic reports on the implementation of the budgets of the persons referred to in para. 1 shall provide the Court of Auditors to carry out the control, risk assessment and preliminary investigation in connection with the audits.

(4) the time limit for the submission to the Court of Auditors of the accounts under para. 1 shall be determined by the Minister of finance in agreement with the Court of Auditors.

(5) for failure to submit, or on presentation after the time limit referred to in paragraph 1. 4 or a refusal to certify the accounts under para. 1 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.

(6) the award of financial audit under para. 1 shall be made by order of the head of Department.

(7) the head of the audit team prepares an audit report and opinion on the audit conclusion for certification or for denial of certification of the relevant report. Oditnoto opinion on certification of financial report can be:

1. audit opinion for certification without reservations;

2. the audit opinion for certification without reservations by reversing the attention;

3. the audit opinion for endorsement with the reserves;

4. audit opinion to refuse endorsement.

(8) the reasons for forming the audit opinion in financial audit are governed by internationally accepted audit standards.

(9) the report and the opinion referred to in paragraph 1. 7 shall be reviewed and approved by the relevant head of Department.

(10) the Court of Auditors shall adopt the audit reports and opinions.

(11) the report and opinion oditnoto are served to the head of the organisation concerned.


(12) in the case of refusal of certification of financial statement the President of 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.

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

Art. 53. (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 for the implementation reports to the State budget, State social insurance budget, the budget of the national health insurance fund and the budgetary costs of the Bulgarian National Bank.

(2) the Court of Auditors shall draw up reports with opinions on the reports referred to in paragraph 1. 1 within three months of receiving them.

Notifications to the competent authorities to take measures

Art. 54. (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 President shall forward 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 inform the President within two months of receipt of the materials of the audit or audit report on the measures taken and the actions on them.

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

Notifications when data for crime

Art. 55. (1) subject to the availability of data for a crime the President sends 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 resources of the funds and programmes of 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. 56. (1) the Court shall make audit reports that are not protected by confidentiality, including the funds and programmes of the European Union, as well as opinions on art. 53.

(2) the disclosure is made through the website of the Court of Auditors or by any other appropriate means determined by the President.

(3) audits carried out shall not be made before the final report under art. 46.

(4) the reports and opinions on art. 53, para. 2 shall be made after their introduction in the National Assembly.

Disclosure of other circumstances

Art. 57. the President shall disclose a breach of obligations under art. 38, non-compliance with the recommendations, as well as other circumstances specified by him.

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

Art. 58. Reports of audits, including the audit evidence of funds of funds and programmes of the European Union and on the implementation of the international instruments referred to in art. 13, para. 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. 59. (1) the President of 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 Bulgarian National Bank 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 by a decision of the National Assembly;

4. proposals for amendments to the legislation in force, backed up by findings and lessons learned from audits carried out.

(2) 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. 60. the Court of Auditors may make proposals to the National Assembly and its specialized 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. 61. (1) in the period to 30 September of the current year the President of the Court of Auditors shall submit to the National Assembly a report on the activities of the previous year.

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

(3) the report under para. 1 is considered by the National Assembly.

Audit of the annual financial report of the Court of Auditors

Art. 62. (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 Commission on the annual financial report of the Court of Auditors is represented in 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 presented in 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. 63. (1) for violation of art. 38, para. 1 and 2 and art. 54 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. 38, para. 3 the person liable shall receive financial penalties representing in size from 2,000 to 10,000 BGN.

(4) the fines and pecuniary penalties under para. 1, 2 and 3 shall be entered in the revenue of the State budget.

Art. 64. (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 PROVISIONS

§ 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 independent opinion whether the enterprise's annual financial report 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:

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.

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 establishments.

10. "Financial undertaking" means any organisation within the meaning of § 1, item 1 of the additional provisions of the accounting Act.

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-IF AC), suitable for financial audit engagements with included additional questions specific to enterprises in the public sector.

TRANSITIONAL AND FINAL PROVISIONS

§ 2. This law repeals the law on the Court of Auditors (official SG. 98 of 2010; amend. 1/99 and from 2011 and 15 by 2013).

§ 3. (1) within one month from the entry into force of the law the National Assembly shall elect a Chairperson 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 Vice-Presidents.

§ 4. The credentials of the members of the Advisory Board of the Court of Auditors shall be terminated from the date of entry into force of the law.

§ 5. Within one month of the election of the Chairman and members of the Court's organizational structure is brought into conformity with the requirements of the law.


§ 6. Within 6 months from the election of the Chairman and members, the Court of Auditors shall adopt the Guide for the application of international auditing standards and audit activity of the Court of Auditors.

§ 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. Pre-existing regulations adopted under the revoked law for the Court of Auditors shall have effect, in so far as they do not conflict with 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 and St. 15 of 2013) art. 127 shall be repealed.

§ 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, 18 and 27 of 2014) in art. 108, para. 6 the words "art. 55, para. 1 "shall be replaced by" art. 54, para. 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 and 18 of 2014) in art. 72, para. 1 the words "art. 55, para. 1 "shall be replaced by" art. 54, para. 1. "

The law was adopted by the 42nd National Assembly on 28 March 2014 and on April 15, 2014 and is stamped with the official seal of the National Assembly.

President of the National Assembly: Mihail Mikov

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