The report on performance audit
"meets the budgeting decision
public investment criteria linked to the achievement of strategic priorities?"
in the Official Gazette
Article No. 38
Court, by Ms Loretta Handrabura, Minister of Youth and Sports; Mr Eduard Serbenco, Deputy Minister of Justice; Mr Gheorghe Postica, Deputy Minister of Culture; Mr. Mihai Vieru, vice president of the Academy of Sciences; Mr Viorel Pana, chief of the national economy and finance capital expenditures of the Ministry of Finance; Ms Mariana Covic, Head of Finance and Accounting of the Ministry of Environment; Ms Alina Rusnac, Head of Accounting and heritage of the Ministry of Health; Ms Larisa Malcoci, deputy head of the General Directorate Economy and Finance of the Ministry of Internal Affairs and other persons in positions of responsibility within the State Chancellery, the Ministry of Economy, Ministry of Labour, Social Protection and Family, Ministry of Education, Ministry of Agriculture food, guided by art. 2 (1) and Article 4 para. (1) a) of Law No 261-XVI Court of 05.12.20081, examined the performance audit report "meets the public investment budgeting decision criteria linked to the achievement of strategic priorities? ". _________________________________________
1M.O., Nr.237-240 / 864 of 31.12.2008.
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 programs of audit work of the Court of Auditors for years 20152 2014, aiming to assess systems and practices at national investment process, checking the effectiveness of public financial management and institutional decisions relevance criteria of cost-effectiveness and impact in the field.
2 _________________________________________ Court Decision No. 61 of 12.11.2013 "On approval of the Programme of audit work of the Court of Auditors for 2014", as amended and supplemented; Court Decision No. 57 of 08.12.2014 "On approval of the Programme of audit work of the Court of Auditors for 2015".
The audit was conducted in accordance with International Standards on Auditing (ISSAI 100, ISSAI 400) 3 and additional textbooks, the approach is based on determining the relevance and completeness framework of rules and procedures pertaining to institutional and financial management applied in the field. In conducting this audit, the audit team was advised by foreign experts within the Twinning Project "Strengthening and enhancing public audit in Moldova". _________________________________________
3Hotărîrea Court 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 " Court Decision No. 7 of 03.10.2014 "On the application Audit Guidelines (ISSAI 1000-9999) under the Public Audit".
The audit covered the operational activities of audited entities, their connection to international best practices in the spirit of affirmation of financial management and control. Thus, the audit mission was carried out by interviewing 23 central public authorities manageable investment of public funds financed from the state budget, of which 20 central public authorities collect evidence audit was conducted.
Examined the report submitted and having heard the results of the audit, as well as explanations of the persons officials present at the public hearing, the Court
Public finance management, as a whole, and most of the investment, in particular, does not meet the aspirations appropriate rigors and challenges related to modernizing state institutions. This finding resulting from audits on financial management and control which it exercises authority, not connected strategies (sectoral, regional, local) resources budgeted. Consequently, socio-economic development related to the building of modern infrastructure is made incoherent and non-systemic investment projects are implemented without question and without substantiation certainty on completion, the impact being determined. External audit in this context, to quantify multiple institutional weaknesses, failure to correct defective and non-adjustment entrenched phenomena which amplifies the waste of material and financial resources.
As a general observation, the Court shall retain the attention of public authorities at all levels on how improper management and investment process, namely, the existing system in which the performance of public funds is not a priority criterion. Contrary to the principles of public finance management, ministries did not show necessary concern for capacity building to develop investment budgets in line with sectoral strategies in relation to the amount of resources allocated. Moreover, the Supreme Audit Institution reiterates institutional failures obvious and pronounced slippage in capital allocation management, the impact of constituting resources of tens and hundreds of millions restrained multiple objects far from being completed.
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 Court of 05.12.2008, Court
1. Approving the performance audit report "meets the public investment budget decision-making criteria linked to the achievement of strategic priorities? 'Attached to this Decision.
2. This Decision and audit report shall be submitted nominations in point 1: 2.1
. auditate4 central public administration authorities for compliance and punctual implementation of the measures required to remedy deficiencies in the audit report elucidated; ______________________________________
4Cancelariei State; Ministry of Finance; Ministry of Agriculture; Ministry of Health; Ministry of Regional Development and Construction; Ministry of Environment; Ministry of Economy; Ministry of Education; Ministry of Justice; Ministry of Labour, Social Protection and Family; Ministry of Internal Affairs; Ministry of Culture; Ministry of Youth and Sports; National Agency for Food Safety; Land Relations and Cadastre Agency; National Bureau of Statistics; Superior Council of Magistracy; Academy of Sciences; Moldova Social Investment Fund; Millennium Challenge Account.
2.2. Ministry of Finance and require reassessment, respectively, enhancing the functions related to the investment process in a specialized structural unit;
2.3. Moldovan government for documentation and on own initiative:
• examination in open court the results of this external audit, a certified authentic assessment precarious situation;
• layout ministries, central authorities and local governments to:
- complete inventory of all public sector investment objects per total country, with qualified professional staff involvement in any decision to continue / complete respectively for determining the likely resources and / or sale of assets that do not represent the public interest;
- Review all investment projects and programs;
- Compliance with the rules according to which hiring investment plans in the annual budgeting / triennial be preceded by feasibility studies / impact correlated with the financial support available;
- Uniformity and standardization in investment in the public sector;
• the need to redefine the powers of the central and local aspects of the investment process as a whole by:
- subdivisions, re responsible for investment management at ministerial, departmental and local government;
- Reconfirmation exclusive powers of the central authority competent for consolidation and financial resources budgeted investment of domestic and foreign funds;
• support taking a prudent and efficient management of public finances on the development of an efficient and sustainable interaction policymaking process with the budget process as a whole, including in terms of public investment strategies by connecting to available financial resources and sustainable recommended in this respect:
- setting uniquely and specifically the annual budget law broken capital allocations per program, per domain, per administrative units and managed by the State Treasury;
- Extending the provisions of Regulation on public capital investment projects, approved by Government Decision nr.1029 of 12.19.2013, in the justification of the timeliness and cost-effectiveness of committed projects, regardless of funding sources, the value of investment objects and institutions / entities implementing;
2.4. Standing committees Economy, Budget and Finance, Communication and recommended jointly with other standing committees in the field, to initiate hearings of ministries and other central and local authorities on the situation in the management of investment processes, identifying solutions for resizing sector strategies / regional / local to the financial resources budgeted.
March. It warns auditees, especially the Ministry of Environment, Ministry of Youth and Sports, Ministry of Interior and Ministry of Finance, the failure to implement and / or formal requirements and implementation of previous recommendations of the Court of Auditors.
4. About the measures taken for the execution of subsections 2.1-2.2 of this Decision will inform the Court within 24 months from its publication in the Official Gazette of the Republic of Moldova, biannual information on measures taken.
May. 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.