The Court of Auditors, in the presence of Minister of labour, social protection and family, Mr. Mircea Buga, President of the National House for social insurance, Mrs. Maria Borta, principal consultant of the Permanent Parliamentary Commission for economy, budget and finance, Mr. Gheorghe Cojocari, head of the social development Directorate of the State Chancellery, Mr Iurii Bucinschi, Director of the State Labour Inspectorate, Mr. Dumitru Stavila, Deputy Chief of the main State Tax Inspectorate Mr. Andrian Timotin, head of the Directorate of protection and social welfare of the Ministry of Internal Affairs, Mr. Mihai Capbătut, head of the Directorate of the Ministry of Defence's retirement, Mr. Vaidyanathan Ramaswamy, as well as other persons with managerial responsibility, 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 dated 05.12.20081, examined the performance audit Report concerning the pension system in Moldova.
Examining the audit results and the hearing report, and explanations of persons with responsible positions present in public, sitting on the Court of Auditors has noted: the State, through the system of pensions, grants financial support to persons reached the retirement age. Thus, the necessary resources to acquire, collect revenue from payment of compulsory State social security contributions, which aims to ensure a financial balance in the provision of pensions.
In recent years, the pension system in Moldova has been influenced by the tendency of some socioeconomic factors, such as the ageing population, emigration intensified able-bodied persons, etc., being affected as a result of State social insurance budget by reducing the number of taxpayers. To support the financial equilibrium of the annual budget, was allocated funds from the State budget. In addition, in order to grant pensions established by force, from the State budget are allocated annually 800.0 URmil.lei, including the Ministry of Interior, Ministry of defence, the national Anticorruption Centre, information and security service, the Department of Penitentiary Institutions and the service of protection and State guard. In the context of an increase in the resources allocated from the State budget to the pension scheme Thus, in order to cover the deficit of the State social insurance budget, activities are necessary to ensure the financial sustainability of the system.  Thus, it is necessary to encourage the formation of income contribute to this budget as well as the implementation of effective tools for monitoring and control in the collection of revenue. At the same time, within the audit mission were noted the following deficiencies and problems: • some strategic objectives have not been achieved, such as: providing a decent living, creating non-State pension funds;
• legal framework requires updates, especially the method for determining the indicators pertaining to the calculation of the pension, special conditions for the granting of pension of certain categories of citizens (retirement age, the pension, etc.);
• non-compliance with budgetary discipline and to the payment of social security contributions and, as a result, cancellation/switching off some tax bonds taxpayers based on legal norms and judicial rulings, without being compensated (968.8 URmil.lei);
• the existence of the phenomenon of undeclared work.
The manner and conditions of establishment of the National House of social insurance are covered in multiple legislative and regulatory provisions which, in some cases, are not exhaustive, which leaves room for interpretation. These conditions offer the opportunity of determining arbitrary indicators of who participates in the pension calculation, especially those of up to 01.01.1999. For this period there are no automated data relating to the indicators do, what determines the risk of fraud when presenting the documents justifying the insured income.
At the same time, the internal control system of the National Social Insurance House requires improvements in view of the description of all procedures and specific situations, levels of competence, and in particular what is the criteria for verification of certificates, which would ensure the transparency of the process.
In order to ensure the transparency of the process of granting and granting of the right of the recipient to know how to calculate the pension, and what indicators formed the basis of the determination thereof, are necessary measures and concrete activities in this regard on the part of the authorized bodies.
The granting of pensions of the Interior Ministry and Defence Ministry are carried out on the basis of the legal framework, without rules or has internal procedures to date, which would contain full details of the activities pertaining to this process. Neverificarea by the central authorities of the correctness of turnovers requested by financial institutions for the purpose of paying pensions resulted in the formation of the balances of monetary assets during the year.
At the same time, the current regulator does not establish requirements for town-planning at central level data on the number of pensioners in Moldova and expenses, making it impossible for the possession of a broad information about the pension system.
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 performance audit Report concerning the pension system in the Republic of Moldova, in accordance with the Annex.
2. this Resolution and the report of the audit shall be submitted to: 2.1. The Ministry of labour, social protection and family, for examination in accordance with the powers, and is required to: 2.1.1. to implement the recommendations set out in the audit report;
2.1.2. to examine the desirability of strengthening the unification legal norms/for all retirees, specifying the criteria and conditions for the granting of pension;
2.1.3. to draw proposals on changing/filling out the legal framework, in order to cover expenditure for the granting of pensions to insured persons who worked in enterprises subject to insolvency, whose debts have been settled;
2.1.4. to develop, jointly with the authorities of force (the Ministry of defence, Security and Intelligence Service, the Department of Penitentiary Institutions, Service of protection and State guard, Ministry of Internal Affairs, the national Anticorruption Centre) proposals:-complete the legislative-normative framework concerning the description of the notions of "seniority in civil branches related to military speciality" and "other incentive payments on a permanent basis";
-elaboration of methods for integrating the data would provide exhaustive reporting and records the number of beneficiaries and expenditure relating to the pension system in Moldova;
2.2. The Ministry of Interior, Ministry of defence, National House for social insurance, the main State Tax Inspectorate and the State Labour Inspectorate and shall require implementation of recommendations in the audit report;
2.3. Government for information, attitude and: 2.3.1. review at a meeting of the results of the audit in order to assess shortcomings and problems of MOI affects the sustainability of the pension system;
2.3.2. examination of the desirability of strengthening the capacities of the National House of social insurance, with a view to the unification of the institutional framework concerning the responsibilities of filing, reporting and evaluation of related data of the pension scheme;
2.4. The Parliament, for information and possible use in making decisions related to adjustment of the legal framework governing the pension system in Moldova.
3. notes that, during the audit mission, the following measures were undertaken: • Ministry of labour, social protection and family has developed a draft law on the modification of the time limit for granting/rejecting the pension rights from 15 to 30 days that was examined in the Government meeting;
• National Social Insurance House has submitted proposals for the amendment of the legal framework concerning unearned income compensation from the State social insurance budget following the liquidation of the operator, as well as in other situations;
• The State Labour Inspectorate has concluded a cooperation agreement with the National House of social insurances concerning access to and "social protection", for providing data on the number of employees reported related contributions and economic operators, which will streamline inspection activities relating to undeclared work;
• The main State Tax Inspectorate, State Labour Inspectorate, the General Police Inspectorate and the National Confederation of trade unions of Moldova issued a joint order on creation of multidisciplinary teams and collaboration, payers being 1208 check within 6 months of the year 2015;
• National Social Insurance House initiated the elaboration of a methodology that will contain the criteria for selecting the salary certificates to be checked;

• Ministry of Internal Affairs, in the action plan for the year 2015, has provided for the description and, where appropriate, revision of its basic processes, including financial ones;
• Ministry of defence initiated the drafting of internal regulations with the description of all steps in the process for the granting of pensions, including the calculation of seniority in employment;
• Ministry of Internal Affairs and the Ministry of defence have initiated the procedure for cooperation with the State Enterprise "Registru" with a view to updating the list of retirees to be kept in the records as pension beneficiaries.
4. About measures taken on the implementation of the requirements of subparagraphs 2.1-2.3. of this Decision and the implementation of the recommendations of the audit, shall inform the Court of Auditors on a semi-annual basis within 18 months after the date of its publication in the Official Gazette of the Republic of Moldova.
5. 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.

The PRESIDENT of the COURT OF AUDITORS Serafim URECHEAN No. 39. Chisinau, 27 October 2015.

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