with regard to the report of the audit of the financial statements of the Ministry of health and consolidated institutions subordinated 31.12.2016 drawn up at



Published: 26.05.2017 in Official Gazette No. 162-170 art No.: 8 the Court of Auditors, in the presence of the Deputy Minister of health, Ms. Liliana Iașan; Head of Cabinet of the Minister of health, Mr. Victor S; Deputy Head of accounting and the heritage Directorate of the Ministry of Health, Mr. Anatol Gudumac; the head of the Directorate, finance and budget Ministry of Health insurance, Mr. Denis Valac; the head of the health care Finance Directorate and social protection in the Ministry of Finance, Ms. Marina Semeniuc; the Director general of the national public health Centre, Mr. Iurie Pace; Chief accounting officer within the medicines and medical devices Agency, Ms. Elena Gudumac; Director of the Centre for public health in the Chisinau municipality. Bălţi, Mr. Vyacheslav Chișlari; the Director of the College of medicine. Bălţi, Mr. Andrei Sochirca; Director of the Centre of temporary placement and Rehabilitation for Children in the Chisinau municipality. Bălţi, Mr. Valeriu Slobodean; Director of the Centre of excellence in medicine and pharmacy "Raisa Pacalo", Mrs Ala M; the Executive Director of the unit for coordination, implementation and monitoring of projects in the field of health, Mr. Nicholas Jelamschi; ISS Deputy Director of the National Company for health insurance, Ms. Diana Grosu-Peter; IP prorectorului State University of medicine and pharmacy "Nicolae Testemitanu", Ms. Olga Cernețchi; the Coordinator of the project "modernization of the health sector in the Republic of Moldova, Mr. Oleg Hîncu, as well as other persons with responsible positions, being guided by article 2 para. (1) and article 4 para. (1) (a). a) of the law on the Court of Auditors No. 261-XVI from 05.12.20081, the auditor examined the consolidated accounts of the Ministry of health and subordinated institutions drawn from 31.12.2016.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1Legea Court of Auditors No. 261-XVI of 05.12.2008 (hereinafter law No 261-XVI of 05.12.2008).
  

The Mission of the audit was planned and conducted in accordance with article 28 and article 31 of law No. 261-XVI of 05.12.2008 and in accordance with the audit activity for the years 2016 and 2017, respectively, in accordance with international standards on auditing (ISSAI 100, 200 and 1000 ISSAI ISSAI-2999) 2 and good practices in the field of public audit applied by the Court of Auditors, with the aim of certifying the correctness of preparation and presentation in every aspect of the financial statements of significant, reported by the institutions audited as of 31.12.2016.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 2Hotărârea Court of Auditors No. 46 of 14.12.2015 "on approving the audit activity of the Court of Auditors for the year 2016"; Judgment of the Court of Auditors No. 47 of 05.12.2016 "on the approval of the Program audit of the Court of Auditors for the year 2017"; Judgment of the Court of Auditors No. 60 of 11.12.2013 "on the application of international standards of Supreme Audit institutions in auditing level 3-ISSAI 100, 200, 300 ISSAI ISSAI, ISSAI 400 audit missions in the framework of the Court of Auditors '; Judgment of the Court of Auditors No. 7 of 10.03.2014 "With regard to the application of the guidelines on auditing (ISSAI 1000-9999)".

By examining the results of the audit report and hearing, as well as the motives of the persons present with responsible positions in the public tender, the Court of Auditors has noted: the Ministry of health is the central body of the public administration specialist in the field of health, financed entirely from the State budget, and the Ministry is responsible for ensuring the consolidation of the financial statements of the institutions in which it has the status of founder and are financed from the State budget and/or special means in accordance with the general framework applicable to financial reporting.
At the same time, responsibility for drawing up and presentation of the financial statements with the enforcement of the general framework of financial reporting, to ensure the effective and rational use of State patrimony located in the management and implementation of a system of financial management and internal control effective returns management both the Ministry of health, and subordinated institutions.
Ministry of health of the founder of the 57 institutions financed from the State budget and/or special means and 24 institutions, non-profit, self-financing manages 2 State enterprises, the share of a company and is responsible for the administrative authority.
The Mission of the audit of the consolidated financial statements of the Ministry of health and subordinated institutions analyzed and evaluated the characteristics of accounting data provided by consolidated Ministry of health, which must give a true and fair view and correct, without having to bear significant errors, and their effects (revenues, expenses, debts, claims, etc.). Also, audit mission is one relevant in that starting January 2016, all public entities have switched to the new methodology of accounting and financial reporting in the budget system, approved by the Ministry of finance by the end of 2015.
The contents of the audit report, based on samples collected from the Ministry of health and some subordinated institutions, shows that implementation of the system of financial management and control is at an early stage, being accompanied by reservations. These circumstances have led to significant errors in the admission records and financial reporting, mismanagement of public assets by the institutions subordinated to the Ministry.
The findings presented in the report reveals that the audit identified deficiencies in the Health Ministry and subordinated institutions were influenced by a systemic institutional financial management and good governance principles, neracordat, and failure to comply with the legal-normative framework, which caused distortion of the consolidated balance sheet with 862.8 URmil.lei (53.2%) and expenditure presented in the Consolidated Report of income and expenditure with 27.8 URmil.lei (2.2%).
Thus, the consolidated financial statements of the Ministry of health and subordinated institutions were registered in the value of fixed assets distortions (138.3 URmil.lei), non-compliance with the regulatory framework. They express themselves through capital investment reporting irregular (128.1 URmil.lei) and non-conforming to the g/l accounts to fixed assets (10.2 URmil.lei).
Irresponsible management of the institutions under the Ministry, non-compliance with the legal framework, neorganizarea internal control processes in the management of public patrimony have determined:

► neîncasarea income from leasing unused spaces (0.9 URmil.lei);
► failure at the cadastre of the right of property (the value of surface URmil.lei and 38.2 17.8 thousand sq. m.);
► recording in the accounts of real estate (3.2 thousand sq. m of the 12 institutions) and plots (1.1 ha amounting to 0.9 URmil.lei by the 5 institutions);
► neajustarea the actual value of the property (building) and the related land, which has caused the recording in the accounts of their value with 7.8 URmil.lei less than the amount recorded in the cadastre and the plots with less URmil.lei 9.1;
► incorrect calculation of depreciation of fixed assets balances with initial distortion (9.9 URmil.lei) and final (2.8 URmil.lei);
► distortion value of medicinal products and sanitary materials (0.1 URmil.lei) by registering with term of validity expired, and the non-receipt of certain medications to the institution (THREAT);
► non-compliant claims (12.0 URmil.lei) by switching off the advances in the absence of primary accounting documents, as well as the accumulation of claims (URmil.lei 3.7) resulting from the provision of services in advance;
► failure and failure to report to the 31.12.2016 of the PCIU advances (23.6 URmil.lei), reflecting at the same time spending on transmission error of assets free of charge, a situation corrected, including the consolidated report in March 2017;
► neconsolidarea in financial report and other forms of participation in capital within the country (709.6 URmil.lei) due to its permitted denominations at State registration Chamber at 20 institutions whose founder is the Ministry. Thus, social capital (581.5 URmil.lei) of 20 underlying the Ministry of health, NATIONAL as well as capital investments (128.1 URmil.lei) performed by the institutions subordinated to the Ministry were not recorded and consolidated the situation in 31.12.2016.
In chapter use of public compliance with the legal-normative framework by the management of the institutions subordinated to the Ministry (THREAT and AMDM) and genial internal control on processes and sub-processes, which generated the calculation and payment of irregular and unjustified expenditures related to wages (5.3 URmil.lei). Thus, were awarded prizes (including unique prizes) and stimulating nature payments through non-compliance with the limit for salary and bonus, bonuses have been paid salary by 80% exceeded the amount of the salary of a function taking into account the bonus for seniority, additional material means provided for in the 6 monthly per year set up for the purpose of awarding and aid material as well as bonuses were calculated with stimulating character from special funds to employees who are not directly involved in the provision of payment services.
Management of educational institutions under the Ministry of health has not drafted and approved the mechanism and processes necessary for recovery in accordance of the State budget funds allocated for providing students with budgetary financing studies, which resulted in injury to budget an amount of 22.5 URmil.lei.
Those exposed have served the basis for expressing opinions contrary to the audit on the consolidated financial statements of the Ministry of health and subordinated institutions.
Regarding the financial report of the subprogramme "policies and management in the health sector in the central apparatus of the Ministry of health, with the 31.12.2016 situation, the audit expressed some reservations relating thereto, caused by the admission of the deficiencies regarding the wear and tear of fixed assets (0.2 URmil.lei).
The chapter on technical assistance Project expenses, part of the programme "modernization of the health sector" (0.2 million u.s. dollars), it was found that an entry in the accounts and reporting consistent.
With reference to the financing agreement for the implementation of the project "modernization of the health sector", the audit has determined a lack of transparency in the process of allocation of financial resources, which had caused dwindling remittances from the State budget to the Ministry of health and increase them (with URmil.lei 18.6) in relation to the National Company for health insurance (CNAM). At the same time, it noted that the indicators approved in the project are not relate with the duties of the parties involved in the implementation of, and reporting on them, why not offer circumstances and does not provide for the allocation of funds in proportion to the exhaustive effort and activities performed. These conditions could lead to future uncertain situations in the process of achieving and reporting indicators.
Concluding from the exposed, in accordance with article 7 para. (1) (a)), article 15(1) thereof. (2) and paragraphs 1 and 2. (4) article 16 c) and art. 34, para. (3) of law No. 261-XVI of 05.12.2008, Court of Auditors DECIDES: 1. to approve the Audit Report on consolidated financial statements of the Ministry of health and subordinated institutions drawn from 31.12.2016, according to the annex.
2. This decision and the report of the audit shall be submitted to: 2.1. The Ministry of health, for documentation of the results of the audit, and it requires the implementation of recommendations in the audit report;
2.2. The Ministry of finance, for examination in accordance with the powers, and is required to: 2.2.1. Organization and conduct of training in the field of financial management and internal control of public institutions;
2.2.2. drafting public institutions intended to ensure reassessment of public patrimony;
2.3. The Ministry of health, in conjunction with the National Company of medical insurance and the Ministry of finance, to ensure the development and approval of the rules on the involvement of exhaustive direct each institution in the implementation of the project "modernization of the health sector", taking into account the legal powers and responsibilities, with the completion of the delineation of the activities by the Ministry of health and the CNAC and interaction data reported result indicators, respectively, debursarea and receipt of funds credited;
2.4. the Moldovan Government, for documenting and exposure on the situation reflected in annex 6 to the report on Red Cross Society;
2.5. the Permanent Parliamentary committees for economy, budget and finance and social protection, health and family, for information;
2.6. The World Bank Office in Moldova, for documentation.
3. notes that, pending the completion of the audit mission, the Ministry of health and some subordinated institutions audited:

have corrected value (i) fixed assets, reflected in the g/l accounts non-compliant according to the characteristics set out in the regulatory framework (URmil.lei 4.6); (ii) commodity and material stocks (2.5 URmil.lei); (iii) depreciation of fixed assets (URmil.lei 7.4), and (iv) claims (23.6 URmil.lei);
evaluated (0.6 URmil.lei) and re-priced (6.1 URmil.lei) estate, and have initiated the procedure for marking and recording thereof at the cadastre;
-CEMF "Raisa Pacalo" has concluded the additional agreement to the contract of rental area, together with 186.7 m2 has been accepted by the lessee for payment of rental payment (0.16 URmil.lei), with reeșalonarea (01.05.2017-01.06.2018);
He was the Minister of Health order No. 1086 from 30.12.2016 "approving the framework Regulations for the Organization and functioning of the presatorilor of health services", which provides, including that "the establishment of the social capital of public medical-sanitary institutions Republican will be done by the Ministry of health on the basis of justified acts of ownership and public medical-sanitary institutions, municipal and district decision of the founder of social capital";
-College of medicine. Bălţi has taken measures concerning the reimbursement of costs in the case of exmatriculării/abandonment notices being sent to students who have abandoned their studies and have not raised the acts (7 students, expenses in the amount of 166.5 thousands lei).
4. exclude from the monitoring regime against the judgment of the Court of Auditors No 2 of 27.01.2017 "With regard to the report of the audit of the financial statements to 31.12.2015 subprograms" policies and management in the health sector in the central apparatus of the Ministry of health and "special health national programs concerning tobacco control activities" following the reiterării in audit report annexed to this decision recommendations implemented.
5. About the execution of the requirements of subparagraphs 2.1, 2.2 and 2.3 of this ruling on the implementation of the recommendations of the audit, shall inform the Court of Auditors within 5 months from the date of its publication in the Official Gazette of the Republic of Moldova.
6. This decision shall be published in the Official Gazette of the Republic of Moldova in accordance with article 34 para. (7) of the law No. 261-XVI of 05.12.2008.