The audit report on compliance in budget and public assets management
within public authorities in Cimislia on local
in the Official Gazette
Article No. 3
Court, in the presence of President Mikhail Olărescu Cimislia, former district chairman Mr Maxim Colţa, Head of the Department management of public property under the Public Property Agency Mikhail Doruc, Head of Finance Department Cimişlia District Council Ms Irina squirrel, chief State Tax Inspectorate on Cimislia Mrs Maria Burac, deputy head of the Hincesti territorial State Chancellery Ms Olga Paşcanean, chief cadastral office Cimişlia Mr Igor Comerzan, Head of territorial development Council Cimislia Mr. Vasile Tocaru, Deputy Head of Department Ms Maria Cărăuş finance, mayors: t. Cimişlia, Gheorghe Raileanu; s. Batîr, Mr. Anatolie Spînu; s. New Village, Natalia Chistol; s. Selemet, Tatiana Badan and Mr. Florin Berejan or.Cimişlia deputy mayor, guided by art. 2 (1) and Article 4 para. (1) a) of Act 261 Court -XVI of 05.12.20081, examined the budget year compliance audit report and management of public assets in local authority of Cimislia in 2014.
_______________________________________ 1 Law No 261-XVI Court of 05.12. 2008 (hereinafter - the Law No 261-XVI from 05.12.2008).
Audit mission was carried out under article 28, article 30 and article 31 of Law No 261-XVI Court of 05.12.2008 in accordance with the program of audit work of the Court of Accounts for the year 2015 aiming at verifying: compliance local authorities (hereinafter - AAPL) in Cimislia legal and regulatory framework for the budget process; consistency and credibility of fiscal projections; consistent management of revenue and expenditure; rational management of public assets.
The audit was conducted in accordance with International Standards of Supreme Audit Institutions audit, implemented by Decree No. 60 of 11.12.20132 Court. Audit evidence was obtained by examining reports on budget execution, financial statements of the audited entities, accounting records; verification of source documents; indicators and analyze meaningful data; direct observation and by analyzing the reasons people in positions of responsibility in the audited entities. It also examined the decisions of the District Council (hereinafter - CR) and district chairman provisions, acts deliberative and executive organs of administrative-territorial units (further - ATU) level I.
2 ________________________________________ Court Decision of Accounts No. 60 of 12.11.2013 "on the application of international auditing standards of the Supreme audit Institutions level 3 - ISSAI 100, ISSAI 200, ISSAI 300, ISSAI 400, in the audit of the Court of Auditors".
Having heard the report and presented the audit results and explanations of the persons officials present at the public hearing, the Court
The activities carried out by local government authorities in Cimislia, especially in terms of financial management, they are not fully complementary principles and rigors of sound economic and financial misconduct and thus admitted some irregularities. It also reveals a number of weaknesses concern inadequate institutional and decision makers within AAPL prevent and minimize adverse effects prudentiality and regularity resource management and public funds. These failures, consequently undermining the socio-economic development of UAT as a whole. Summarizing the findings set out in the audit report, the Plenary Court reveals the following.
• In the period under audit, the district did not identify AAPL and have not assessed the potential economic and financial, respectively, did not provide substantiating the fair value of the tax base, including by supporting fiscal practices conclusive support sustained financial ATU budgets (level I and level II) and for preventing the inter-relationships disproportions and inequality. Financial authority has not applied the requirements of specialist foundation projected fiscal, has not collaborated in this regard, with AAPL and tax authorities, statistical and land, as well as businesses that contribute significantly to the formation of budget revenues as a result It is reduced and the degree of responsibility assigned by the Finance Department functional-institutional duties incumbent. Not providing analytical tools and methodological shortcomings of the proposals resulted in reduction of budget revenues amount to about 0.9 mil. Lei, respectively, non-collection of revenue in local budgets amounting to up to 1.7 million.
A reserve accumulation untapped revenue in local budgets is the taxpayers' arrears, which, as of 31.12.2014 totaled 2.4 million.
• Management of budget spending was affected by some deviations from the regulator, affecting the efficiency of public funds, this being determined by non-implementation of the law on public financial control intern3. Thus, states: _____________________________________
3 Public Internal Financial Control Law nr.229 of 23.09.2010 (hereinafter - the Law no. 229 of 23.09.2010).
► improper exploitation of resources for investment and repairs and breach of current legislation on this area, which have conditioned the use and accounting of irregular financial resources totaling 2.3 mln;
► non-compliance with the statutory procedures and the principle of transparency in public procurement;
► non-compliance related financial nourishment of the children in the institution being reduced budgetary allocations for this purpose (0.1 million).
• Improper Activity makers within AAPL (level I and level II) to ensure conformity of public property management, improper management of its management, failure to strictly legal provisions and the lack of a framework for AAPL regulating the management of public assets ended with:
► failure to regular registration in the land Register has rights over immovable assets worth 193.8 mln and on land with an area of 22 800 ha ;
► inconsistent recording of transactions for the sale and lease of land, and not accounting receivables from these transactions amounted to 3.0 mln;
► failure registration regulations and the effective management of infrastructure objects located on the territory administered by the district AAPL.
• Both AAPL (founders), as well as managers of municipal showed no respect and caution on the deployment of corporate and financial management, economic management is not focused on results and efficiency of the material / financial management. As a result, the audit identified several institutional weaknesses, as expressed through:
► neelaborarea principles of economic management and results-based indicators, including cost-effectiveness in the delivery of public services;
► failure to conform to public property records submitted by the district AAPL economic management of municipal and securities totaling 124.4 mln;
► The failure by AAPL recovery measures on economic and financial situation precarious entities founded.
• improper accounting management did not ensure full extent of the principles governing the organization of accounting and record keeping and reporting financial statements under the rules laid down and found the inconsistent records of financial transactions, possession of material goods without proper accounting their value and, therefore, erroneously reported the financial statements and property.
Deviations from the legal and regulatory elucidated by the administration of resources and public funds AAPL expressed largely low degree of coordination and supervision of the implementation of internal control tools.
Based on the above, under Article 7 para. (1) a), art. 15 (2) and para. (4), Article 16 c) and Article 34 paragraph . (3) of Law No 261-XVI from 05.12.2008, the Court
1. Compliance audit report is approved in budget and public assets management in the local government of Cimislia in 2014, attached to this Decision.
2. This Decision and audit report shall be submitted:
2.1. Cimişlia District Council, district chairman, local councils and mayors of towns / villages / communes: Cimislia Batir, Gura Galbena Mihailovca, New Village, Selemet and ask:
2.1.1. ensuring the implementation of audit recommendations indicated in the audit report, to determine concrete actions to eliminate the deficiencies found and the setting of deadlines and persons responsible for implementation;
2.1.2. District Chairman, jointly with the relevant authorities to ensure timely implementation of measures on development of institutional capacity to implement the Law nr.229 of 23.09.2010, the application rigors and internal control tools;
2.2. Local councils and mayors of villages / villages: Albina, Cenac, Ciucur-Mingir, Codreni, Ecaterinovca, Gradiste, Hirtop, Ialpujeni Ivanovca Nine Javgur Lipoveni, Porumbrei, Sagaidac, Suric, Topala, Troiţcoe Valley Perjei, head of the Educational Department, Director of or.Cimişlia High School, Gymnasium in s.Batîr director for information and making recommendations attitude on voluntary compliance audit, the audit report indicated, given the presence of similar deficiencies found during UAT audited;
2.3. Hincesti territorial office of the State Chancellery and ask ensuring administrative control of AAPL activity level I and level II in accordance with the legal framework in order to smooth out irregularities and shortcomings discovered and exposed in the audit report;
2.4. State Tax Inspectorate for information and asked the State Tax Inspectorate on Cimislia: confrontation indices of institutional information system with data from the district municipalities regarding the relevance and completeness of taxable, but also enhancing voluntary compliance;
2.5. Ministry of Finance, Information and attitude making activity and tax authorities in Cimislia related to the identification and assessment of the tax base related training and mobilization of the whole budget revenues;
2.6. Government to develop mechanism and identification of financial resources to implement the legal and regulatory framework in record / cadastre / registration of public property managed by AAPL;
2.7. Moldovan parliament and parliamentary standing committees: economy, budget and finance; public administration, regional development, environment and climate change, for information.
March. It notes that during deployment audit, AAPL, public institutions and enterprises founded recorded in the accounts working on the investments and capital repairs amounting to 16.2 mln; they accounted heritage transmitted / received under management by municipal enterprises totaling 122.2 mln; regular reflected in the accounts and public institutions AAPL assets totaling 80.2 mln; they accounted securities belonging to them totaling 2.2 million.
4. Given the reiteration of the audit report annexed to this Decision, the recommendations of the previous external audits, is excluded from the monitoring regime Court Decision No. 32 of 08.08.2011 "On audit report on the 2010 budget and Cimislia management of public property ".
May. About the measures taken for the execution of subsections 2.1., 2.3. and 2.4. of this Decision will inform the Court within 12 months of its publication in the Official Gazette of the Republic of Moldova.
June. This Decision shall be published in the Official Gazette of the Republic of Moldova in accordance with article 34 par. (7) of Law No 261-XVI Court of 05.12.2008.
PRESIDENT OF THE COURT OF AUDITORS Serafim Urechean