The Court of Auditors shall, in the presence of the President of the National House for social insurance, Ms. Laura Gamble; Vice President National House for social insurance, Ms. Tatiana Popa; the Chief of the main State Tax Inspectorate, Mr. Sergey Pușcuța; the head of the health care Finance Directorate and social protection in the Ministry of Finance, Ms. Marina Semeniuc; Deputy Chief of the Directorate-General of the Directorate reports to the State Treasury, Ms. Nadejda Letter; the head of the Directorate of social security policy in the Ministry of labour, social protection and family, Mrs. Nadeem Rahman, 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 dated 05.12.20081, examined the auditor's report to the Government concerning the implementation of the budget of State social insurance for the year 2015.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 Law Court of Auditors No. 261-XVI of 05.12.2008 (with subsequent amendments and additions) (hereinafter referred to as law No 261-XVI of 05.12.2008).

The Mission of the audit has been carried out in accordance with article 28 and article 31 of law No. 261-XVI of 05.12.2008 and in accordance with the audit activity of the Court of Auditors for the years 2015 and 20162, aiming assessing the activities and transactions through the prism of compliance with legislative and applicable reporting framework, with the expression of opinion by the audit.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Court 2 Decision No. 57 of 08.12.2014 "on approving the audit activity of the Court of Auditors for the year 2015" (with subsequent amendments and additions); Decision of the Court of Auditors No. 46 of 14.12.2015 "on approving the audit activity of the Court of Auditors for the year 2016".

The audit was conducted in accordance with standards of good practice and the audit3 field. In order to support the formulation of conclusions and findings, recommendations, audit samples were obtained from the National Social Insurance House (CNAS-national or House) and the main State Tax Inspectorate (hereinafter IFPS), through the application of appropriate auditing procedures.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 3 Court of Auditors Decision 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 missions, within the framework of the audit of the Court of Auditors and the Court of Auditors Decision No. 7 of 10.03.2014" With regard to the application of the guidelines on auditing (ISSAI 1000-9999) within the public audit ".

Examining the audit results and the hearing report, and explanations of persons with responsibility functions present in public sitting, the Court of Auditors has noted: the budget of State social insurance (hereinafter-BASS), according to the law of public finances and budgetary responsibility-fiscale4, is administered by the National House. Thus, the monitoring organisation holds CNAS, analysis and reporting of the performance of BASS, by coordinating with the Ministry of labour, social protection and family (hereinafter MLSPF), Ministry of Finance (hereinafter MF) and submission to the Government for review and approval.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 4 the law of public finances and budgetary-fiscal responsibility no. 181 from 25.07.2014 (hereinafter referred to as law No 181 from 25.07.2014).

In the reference year, the BASS was executed until 12.04.2015 on the basis of the provisional budget. According to law No. 73 of 12.04.20155, the budget income indicators have been established in the amount of 13691.7 URmil.lei and the expenses in the amount of 13670.6 URmil.lei, with a deficit of 50.9 URmil.lei.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 5 Law on State social insurance budget for year 2015 No. 73 of 12.04.2015.

According to the report on the performance of BASS, were collected revenue amounting to 13432.5 URmil.lei, or 1.4 percent less than the level set. Essential part the nationals own revenue realized in the amount of 9279.5 URmil.lei. At the same time, it indicates that the expenditure amount of BASS was 13490.2 URmil.lei, which is 1.3 per cent less than the amount specified. Concluding from the data reported, the financial year ended with a deficit of URmil.lei 57.7 excess with 6.8 URmil.lei level to the one specified (50.9 URmil.lei).
In accordance with the rules in vigoare6, CNAS, activity established compliance and integrity management of budgetary funds were supposed to be supervised by the Board of Directors. However, in the year 2015 it worked under conditions in which its members legal mandate expired (at 06.11.2013) 7. In the situation, the National House has pursued the activity in the absence of strategic tasks approved and prospective correspondingly. At the same time, the Board has not examined the shortcomings of National and/or application of legislation in this area, previously identified by the Court of Conturi8.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 6 art. 45 of the law nr. 489 public system from 08.07.1999 insurance; point 11 of the Statute of the National House for social insurance, approved by Government decision No. 937 from 13.11.2014 "on approval of the Statute of the National House of social insurance."
7 Composition of the Board of Trustees was approved by Government decision No. 650 from November 6, "approving the composition of the Board of Trustees of the nominal of the National House of social insurance."
8 the decision of the Court of Auditors No. 14 of 16.06.2015 "on the Government's auditor's report concerning the implementation of the budget of State social insurance for the year 2014"; The decision of the Court of Auditors No. 39 of 27.10.2015 "on the performance audit Report approval concerning the pension system in Moldova".

The results of the audit on the compliance of the Administration to the effect that the House BASS National management has conducted activities to: inform citizens on the operation of the public social insurance system; issuance of internal control in the process of recording/record of payers on BASS and declaring their bonds; reduction in overdraft, etc. Indicators reported in the budget year 2015 represents the result of the work organisation factors which hold: calculation/reporting/remittance (taxpayers); accumulation/monitoring/control of revenue (MSTI); the granting of social rights (CNAS and other authorities).
At the same time, the authorities responsible for organizing the system of planning, execution, accounting and reporting of the BASS (MLSPF, CNAS and MF) 9 have not secured the cooperation regarding the establishment of performance indicators for planning the year 2015 of this budget.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 9 Law No. 181 from 25.07.2014.

Checks on conformity audit of the Administration and management of the revenue and expenditure of the CNAS BASS reveals the existence of reservations and problems within the audited processes, as follows:-registration of the non-compliant taxpayers, BASS (violation of the term of registration at CNAS; data of discordance and "social protection" with supporting documents);
-internal control procedures within the monitoring process of the CNAS presentation by paying the mandatory reports had not provided a statement of the contributions, although they form the basis of formation of own incomes BASS (45.3% of contributors);
-lack of distinct criteria and of the supporting documents relating to the award of paying for "suspended", although some of them had the obligation of submission of the Declaration, which does not provided records of the payer status;
-taking late at the special emphasis on CNAS to bonds with high risk of neîncasare, driven by the failure of the stock STI home with appropriate National data, which may generate undue penalties calculation;
-non-compliant documentation of the process for the granting of certain benefits conditional upon the insurance and social assistance, the majority of cases being corrected during the audit mission (maternity allowance monthly allowances for increase; the child up to the age of 3 years, for insured persons);
-failure to provide communication between organs and CNAS social assistance with a view to preventing cases of granting concomitant social duties, determines the risk of counting non-compliant care allowances, and accompanying supervisors;
-the contracting of services by paying THEM to social rights, have not been provided for instruments of coercion and of service providers, the penalty for failure to comply with contractual clauses. At the same time, it has not been established, together with the financial institutions, the format and structure of the reports, which would ensure the possibility contrapunerii/reconciliation with other reports of CNAS and analytical records that would confirm the payment/refund of benefits;
-internal control image acquisition is the process of payment of social rights was inappropriate, one which has led to non-compliance with the legal provisions, including the chapter documenting procedures.

Audit reporting indicators from the report on the performance of BASS for the year 2015 shall certify:-non-exhaustive in regulating the methodological norms in force on the particularities of the reporting of refunds on accounts by CNAS service providers for payment of social benefits and beneficiaries;
neconformă10-the award of costs to other social benefits expenditure allowance effective care, surveillance and accompanying (33.5 URmil.lei).
Regarding the execution of the Court of Auditors No. 14 from 16.06.2015, it was found that CNAS and management entities concerned have undertaken a range of activities in order to execute/implement fully the requirements/recommendations.
Based on the above, pursuant to 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 report of the Audit Report to the Government concerning the implementation of the budget of State social insurance for the year 2015, part of this Judgment.
2. this Resolution and the report of the audit shall be submitted to: 2.1. The National House of social insurances and insurance is required to implement the recommendations put forward for the strengthening of internal control system in the Administration and management of BASS;
2.2. the Board of Directors of the national social insurance House for information in order to examine the results of the audit, and monitoring the implementation of recommendations;
2.3. The Ministry of labour, social protection and family, for examination in accordance with the powers, and are asked to determine: 2.3.1, together with the National House of social insurance, the relevant performance indicators for BASS, coordinate their's with the Ministry of finance in order to enhance their effectiveness and ensure compliance methodology;
2.3.2 to adjust, together with the National House for social insurance, comprehensive regulator framework that would ensure cooperation between National social security bodies, to prevent the granting of social services in conjunction with the accompanying care allowances, and surveillance;
2.3.3 to examine the possibility of the inclusion of the concept of "full state maintenance" in the law governing the field of social protection and assistance;
2.4. The Ministry of finance, for examination in accordance with the powers, and are required to take steps in: 2.4.1, together with the National Social Insurance House, bringing in consistent regulatory requirements pertaining to reporting methods of BASS;
2.5. The Moldovan Government, the authority for examination and approval, as well as the composition of the Board of Trustees of the nominal of the National House of social insurance;
2.6. The Parliamentary Committee on social protection, health and family, for information;
2.7. The Parliamentary Commission for economy, budget and finance, for documentation.
3. exclude from the monitoring procedure the Court of Auditors Decision No. 14 of 16.06.2015 "on the Government's auditor's report concerning the implementation of the budget of State social insurance for the year 2014".
4. About the execution of the requirements of subparagraphs 2.1-2.4 of this Decisions, including the implementation of the recommendations of the audit, shall inform the Court of Auditors within a period of 12 months from 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 on the Court of Auditors No. 261-XVI of 05.12.2008.

The PRESIDENT of the COURT OF AUDITORS Serafim URECHEAN