Name of law Law amending and supplementing the law on internal audit in the public sector Name of the Bill a bill amending and supplementing the law on internal audit in the public sector adoption 01/07/2010 number/year Official Gazette 54/2010 Decree No 181

Pursuant to article 98, paragraph 4 of the Constitution of the Republic of Bulgaria

I DECLARE:

To be published in the Official Gazette the law amending and supplementing the law on internal audit in the public sector, adopted by the National Assembly of the HLI 1 July 2010.

Issued in Sofia on July 7, 2010.

The President of the Republic: Georgi Parvanov

Stamped with the State seal.

Minister of Justice: Margarita Popova

LAW

amending and supplementing the law on Assembly appointed audit in the public sector (official SG. 27 of 2006; amend., SG. 64 and 102 in 2006, issue 43, 69, 71 and 110 since 2008 and no. 42, 44, 78, 80, 82 and 99 of 2009.)

§ 1. In art. 7, para. 2 the second sentence is deleted.

§ 2. In art. 8, al. 2 the word "negotiate" is replaced by "mutually determine."

§ 3. In art. 11 the following amendments and supplements shall be made:

1. Paragraph 1 shall be amended as follows:

"(1) the internal audit in the public sector carried out by the internal audit unit, consisting of a Manager and internal auditors who are directly subordinate to the head of the organisation and its employees."

2. a new paragraph. 2:

"(2) the internal audit activity may be awarded to individuals who are not employees of the organization. Individuals must meet the requirements of art. 21, para. 1. "

3. The current paragraph. 2 it al. 3.

§ 4. In art. 12 make the following amendments and additions:

1. In paragraph 8. 1, item 3 the number "5" shall be replaced by "10".

2. in the Al. 2, after the word "risk" is added "made by the authorising officer by delegation" and add "and in municipalities".

3. a para. 3:

(3) except in the cases referred to in paragraph 1. 1 and 2 internal audit activity can be carried out by the procedure of art. 11, para. 2. "

§ 5. In art. 13 make the following amendments and additions:

1. In paragraph 8. 1 the words "and the internal auditor under art. 11, para. 1, item 2 shall be deleted and the word "implemented" is replaced by "place".

2. a new paragraph. 2:

"(2) the internal audit unit performs internal audit and in commercial companies under art. 61 of the trade law, in State-owned enterprises under art. 62, para. 3 of the commercial code and in hospitals – companies with mixed state and municipal participation in the capital, where in these organizations is not built alone unit for internal audit. "

3. The current paragraph. 2 it al. 3.

4. The current paragraph. 3 it al. and 4 shall be replaced by the following: "(4) in connection with the performance of the audit engagement for giving confidence in the internal audit of the authorising officer by delegation may carry out checks on minor authorising departments, in which the self is constructed unit for internal audit, as well as of their authorising officers of lower degree. The checks shall be carried out after written notification and coordination with management of structures and persons that will be carried out. "

5. The current paragraph. 4 it al. 5.

§ 6. In art. 14 al. 2 shall be amended as follows:

"(2) the internal audit shall be carried out in the municipalities of at least two internal auditors, including the head of internal audit."

§ 7. In art. 18 the following amendments and supplements shall be made:

1. In paragraph 8. 1, after the word "include" is added "officers and" and the words "the appropriate qualifications and experience" are replaced by "Ma", which have at least 4 years experience ".

2. a new paragraph. 2:

"(2) in the municipalities can be formed Audit Committee by decision of the Municipal Council."

3. The current paragraph. 2 it al. 3 and in her words "about his work" shall be replaced by ' within one month after its creation ".

4. a para. 4:

"(4) the rules for the work of the Audit Committee in the municipalities shall be approved by the City Council."

5. The current paragraph. 3 it al. 5 and in her words "the reports of the audit engagements" are deleted.

§ 8. In art. 19, para. 2 item 4 shall be amended as follows:

"4. to hold an" internal auditor in the public sector ", issued by the Minister of finance after successful completion of the exam in art. 53, or possess a valid international certificate of internal auditor. "

§ 9. In art. 21 the following amendments and supplements shall be made:

1. a new paragraph. 4:

"(4) the head of the internal audit unit shall be assimilated to the post of Director of administration at the appropriate level."

2. The current paragraph. 4 it al. 5, and the words "under art. 12, al. 1, item 1, 3 and 4 "shall be replaced by" referred to in art. 12, al. 1, item 1, 3 and 4 and al. 2. "

3. The current paragraph. 5 it al. 6 and in her words "para. 4 "shall be replaced by" para. 5. "

4. The current paragraph. 6 it al. 7.

§ 10. In art. 24, paragraph 4, the word "techniques" is replaced by "procedures".

§ 11. In art. 27 the following amendments and supplements shall be made:

1. The current text becomes paragraph 1 and in paragraph 1, after the words "and of the" added "President".

2. a para. 2:

"(2) the head of internal audit in the municipality shall submit the strategic and annual plan of internal audit activity for reconciliation and the City Council."

§ 12. In art. 28 is made the following changes and additions:

1. The current text becomes paragraph 1 and in it:

a) in paragraph 1 the words "and an assessment of the adequacy and effectiveness of the systems for financial management and control" shall be deleted;

b) point 2 is amended as follows:

2. report the results of the audit engagements, all cases of detected fraud indicators, the recommendations and the action taken to improve the activities of the Organization; ".

2. a para. 2:


"(2) the head of internal audit in the municipality shall submit to the City Council the reports referred to in para. 1, item 1, 3 and 4. "

§ 13. In art. 29 the following endorsements are added:

1. In paragraph 8. 3 Finally, there shall be added "or a valid international certificate of internal auditor".

2. a para. 4:

"(4) External reviews under paragraph 1. 3 shall be carried out under the conditions and in accordance with procedures specified by the Minister of finance. "

§ 14. In art. 30, para. 2 the word "after" shall be replaced by "within 14 days of".

§ 15. In art. 31, para. the words "working documents" shall be deleted.

§ 16. In art. 34, para. 4, the words "the head of the Audit Committee" shall be replaced by the words "the Chairman of the Audit Committee.

§ 17. In art. 36 after the word "commitment" is added to "giving confidence" and the words "audit approach and techniques, the type and extent of the checks ' shall be deleted.

§ 18. In art. 38 the following modifications are made:

1. In paragraph 8. 1 the word "report" is replaced by "submit".

2. paragraph 2 is replaced by the following:

"(2) for the implementation of each audit engagement for giving confidence to prepare an audit report, which includes summary, objectives and scope of the commitment, the findings, conclusions and recommendations."

§ 19. In art. 39 al. 1 shall be amended as follows:

(1) the head of the organization establishes an action plan in conjunction with the recommendations in the audit reports, which provides the head of internal audit. "

§ 20. In art. 40 following amendments and supplements shall be made:

1. In paragraph 8. 1, item 4, the Union "and" shall be replaced by a comma and add "and the action taken by the head of the organisation and the head of internal audit".

2. Paragraph 4 is replaced by the following:

"(4) the head of the internal audit unit in the organizations under art. 12, al. 1, item 1, 3 and 4 and al. 2 shall prepare and submit to the head of the organization within 20 February of the following year annual summary report on internal audit activities.

3. a new paragraph. 5:

"(5) the head of the organization sends the report under para. 4 the Minister of Finance within 28 February of the following year. "

4. The current paragraph. 5 it al. 6.

§ 21. In art. 41 item 1 shall be amended as follows:

"1. the systems audits and audits of operations on all operational programmes co-financed by the structural funds and the Cohesion Fund of the European Union, and in programs/cohesion fund ISPA and SAPARD;".

§ 22. In art. 45 the following modifications are made:

1. In paragraph 8. 1 the words "item 1 – 3" shall be replaced by "1-4" and the words "and have two years of experience in the field of internal or external audit ' shall be deleted.

2. in the Al. 2, the words "paragraphs 1 and 2" shall be replaced by "paragraph 1, 2 and 4.

§ 23. In art. 46 and al. 5 is repealed.

§ 24. In art. 51 the word "regular" shall be deleted.

§ 25. In art. 52, after the words "art. 12, al. 1, item 1, 3 and 4 "insert" and al. 2. "

§ 26. In art. 53 following amendments and supplements shall be made:

1. The current text becomes paragraph 1.

2. a para. 2:

"(2) For the examination for the issue of a certificate or duplicate certificate shall pay fees in dimensions specified with the tariff approved by the Council of Ministers."

§ 27. Art is created. 53A:

"Art. 53. The Minister of Finance shall issue an Ordinance for the conditions, modalities for carrying out external evaluations to ensure the quality of audit activity. "

§ 28. After art. 54 chapter seven is created "administrative penal provisions" with art. 55 and 56:

"Chapter seven

ADMINISTRATIVE PENAL PROVISIONS

Art. 55. (1) the failure of art. 40, para. 1 and 4 heads of internal audit shall be punishable by a fine of 200 to 600 BGN.

(2) the heads of minor authorising officers, received the annual reports on internal audit and the neizp″lnili obligation to sending them to the authorising officer by delegation within the time limit under art. 40, para. 3 shall be punishable by a fine of 200 to 1000 EUR

(3) heads of organizations received summary annual reports on internal audit and the neizp″lnili obligation to dispatch to the Minister of Finance within the time limit under art. 40, para. 5 shall be punishable by a fine of 200 to 1000 EUR

Art. 56. (1) the acts establishing the offences under art. 55 shall be drawn up by officials of the unit under art. 47, para. 2, designated by the Minister of finance.

(2) the penal provisions for offences under art. 55 shall be issued by the Minister of finance.

(3) the establishment of violations, the issue, the appeal and the implementation of the penal provisions shall be carried out under the conditions and by the procedure of the law for the administrative offences and sanctions. "

§ 29. In § 1 of the additional provision establishes that: 6

"6." valid internationally recognised certificate of internal auditor "are certificates Certified Internal Auditor (CIA) and the Certified Government Auditing Professional (CGAP), the validity of which shall be certified by the issuer of the certificates of auditors Insitute – internal, international professional organization of internal auditors."

Transitional and final provisions

§ 30. The requirement for Auditors performing specific audit activities in the funds and programmes of the European Union, for the possession of a certificate "internal auditor in the public sector" shall enter into force on 1 January 2011.

§ 31. (1) within 6 months from the entry into force of this Act the Minister of Finance issued the Ordinance under art. 53A.

(2) within 6 months from the entry into force of this law the Council of Ministers shall approve the tariff referred to in art. 53, para. 2.

§ 32. In the Customs Act (promulgated, SG. 15 of 1998; amend., SG. 89 and 153 of 1998 and 30/83 of 1999, no. 63 of 2000, 110/2001, no. 76 from 2002, no. 37 and 95 of 2003 No. 38 of 2004, no. 45, 86, 91 and 105 by 2005. , PC. 30 and 105, 2006, issue. 59 and 109 from 2007, PCs. 28, 43 and 106 in 2008 and St. 12, 32, 42, 44 and 95 of 2009.) in art. 9 para. 4 is repealed.

§ 33. In the law on the National Revenue Agency (official SG. 112 of 2002; amended by 114/2003, no. 105 in 2005, 105/2006, no. 109 (2007), no. 12, 32, 42 and 95 of 2009 and no. 15 of 2010) in art. 4 create al. 3:


"(3) the general direction and control over the activities of the Agency are carried out by the Minister of Finance appointed by him or by the Deputy Minister."

The law was adopted by 41-Otto National Assembly of 1 July 2010 and is stamped with the official seal of the National Assembly.

President of the National Assembly Tsetska Tsacheva:

5684