Compliance Audit Report regarding management of public patrimony within the framework of public entities. Chişinău in 2014-2015



Published: 21.10.2016 in Official Gazette No. 361-367 art no: 33 the Court of Auditors, in the presence of general Mayor of Chisinau municipality. Chişinău, Dorin Chirtoacă, Chisinau, the cases Mr. Nistor Grozavu, head of the territorial Office Chisinau of the State Chancellery, Mr. Ghenadie Inamdar, head of Directorate-General for Finance of Chisinau municipal Council (hereinafter the CMC), Ms. Veronica Herța, head of Directorate-General for Architecture, town planning and Land Relations of the CMC, Mr. Ion Cadiz, head of Directorate-General for Public transportation and communication Routes to CMC, Mr. Igor Gamrețki , Chief Deputy of the Directorate-General for Economics, Economic Reforms and relations of the CMC, Mr. Vladimir Iarmicioi, Director of the UNBUILT highways Directed operation "Exdrupo", Mr Stepan Racu, head of the cadastre of the Institute "Ingeocad" SOES, Ms. Catherine Haniucova, mayors: or. Codru, Mr. Vladimir Munteanu, or. Durleşti, Ms. Eleonora Șaran. Vadul lui Voda, Mr. Iurie Onofriiciuc, Ion Șaranuț, Bubuieci, Budești com, Mrs. Nina Costiuc, Cruzești, Ms. Valentine Cdo, Mr. Patrick S. Tohatin, com. Bacioi, Mr. Vitalie Șalari, cases. Sangera, Mr. Valeriu Scodigor as well as other persons with managerial responsibility within the central public administration authorities and local offices in the city, 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 compliance audit Report management of public patrimony within the framework of public entities. Chişinău in 2014-2015.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 Law Court of Auditors No. 261-XVI of 05.12.2008 (hereinafter law No 261-XVI of 05.12.2008).

The Mission of the audit has been carried out in accordance with article 28, article 30 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 year 2016, aiming assessing the management of public patrimony, the functionality of the framework of rules and procedures for your domain that is targeted and plenitude of budgetary revenues.
The audit was conducted in accordance with the international standards of the audit2 of the Court of Auditors. The necessary samples were obtained by examination of the economic and financial situations reports, contracts with a patrimonial character, books of entities subject to audit; verification of primary documents; indicators and analysis of the information provided; direct observation, as well as familiarizing and analyzing explanations of persons with responsibility functions within the audited entities. They also examined the decisions of the deliberative bodies and provisions and executive of the administrative-territorial units (hereinafter-the UAT).
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 2 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 audit missions within the Court of Auditors".

After hearing a report presented in open court, as well as explanations of persons with managerial responsibility, the Court of Auditors has noted: the measures taken by the LOCAL GOVERNMENTS of all levels in the management of public patrimony had not met the rigors of legality, regularity and transparency in/requirement its management, thus allowing for multiple deviations or irregularities. In this respect, public audit external evidence that ignoring and/or superficial and inadequate implementation of the recommendations of the previous mission, and institutional in their nefuncționalitățile Assembly constitutes a sum of factors generators of irregularities and vulnerabilities incurred in the management of public assets overall.
Sintetizînd evaluations audit, Court of Auditors claims that: • LOCAL GOVERNMENTS were not concerned about systemic affirmation of a prudent and comprehensive administration of public property;
• AAPL has not fully assumed its functions by the owner and holder of the public heritage Plenipotentiary. Thus, were not approved → lists of heritage (us) liable to privatization and liable to put into rental or lease, concession, etc., which limited the transparency and predictability of the process of management of public patrimony;
→ Chisinau municipal Council has delayed decisions on the management of real estate, accordingly lease neoficializate relations were especially likely to supplement income, municipal budget being missed;
→ AAPL continues the practice of privatization and faulty goods award lease/rental/auction procedures being bypassed;
• local governments have not provided consistent records of public property assets, particularly land fund, and truthful reporting of financial statements and property, which is expressed through: → Register data and no irrelevance heritage municipal, which constrained economic situations of distorted reporting, including at the national level;
unordered organization management → financial accounting, reporting neveridică of information on the number of municipal enterprises (hereinafter-JV) founded and registered capital of them led to differences between various data sources (434.3 URmil.lei; URmil.lei and URmil.lei 366.4 67.9);
→ (us) and/or public heritage inventarierilor irrelevance, resulting in deformed neplenitudine situations and to financial reporting/statistical;
neidentitatea → data of accounts and municipal heritage ledger regarding housing, completed its inventory;
→ failure accounts of local public ownership of land, as well as a lack of methodological framework/irrelevance in this direction have diminished the value of the assets in the financial statements of the FAILED at least 3.7 URmlrd.lei;
• non-compliance with the legislative framework in the field of cadastrării of real estate and property reporting situations. As a result: → in the real estate registry there were no local public property assets managed by economic entities (238.9 URmil.lei) and AAPL level I (circa 69.5 URmil.lei);
→ 7 AAPL level I have shown for many years of the land cadastre, which generated neveridică data reporting land cadastre municipality level;
→ poor interaction between LOCAL GOVERNMENTS and public authorities of Central conditioning works by whether land delimitation of State and municipal property;
→ nepunctuală concern to decision makers and the lack of land delimitation programme has delayed the commencement of conditional land works in AAPL (level I);
→ non-execution of the legal framework with regard to estate inventories and delimitation of State and public ownership of property rights registration conditional upon stagnation of the real estate;
→ AAPL (level II) had not provided the identity data in different registers of the cadastral documentation, the differences being recorded about 190 ha;
• the work of decision makers within the AAPL (level I and level II) in order to ensure the regularity and legality of the Administration's management of public patrimony, and inadequate management of property resulted with: → mismanagement of public assets, income missed the municipal budget and the budgets of LOCAL GOVERNMENTS (level I) from this source being valued at approximately 307 URmil.lei;
significant gaps between → cadastral and tax matter, a fact that indicates the appearance of deformed circumstances tax base related training local budgets, as well as relevant financial reporting;
→ public revenues incurred arising from the administration of the patrimony, being formed by claims totaling approximately 69.7 URmil.lei, including arrears with its with the limitation period expired not less than 29.0 URmil.lei;
insuring property interests of → FAILED, therefore far from being stripped of immovable property, the phenomenon of becoming perpetual;
→ use of unjustified abuse of the employment/real estate local public property;
→ ensure operational processes information related to improper management of public property assets;
→ non-compliant records management and irrational public and goods transmitted in the municipal management of enterprises and public medical-sanitary institutions, neracordarea system of remuneration of the directors of the enterprises efficiency indicators;
→ significant deviations concerning the preservation and archiving of documents provided for justification and monitoring of economic transactions, etc.;

• checks on compliance with the requirements and recommendations of previous audits by the Court of Auditors stated in the reports approved by the decisions of the Court of Auditors No. 37 of 31.07.2012 and no. 35 of 28.06.20133 indicates that the management of AAPL in the municipality was not demanding the necessary fixes. Thus, the measures taken were nesistemice and punctually delivered, which has contributed to the perpetuation of a financial/operational management contraperformant, edits and in the current audit Report being noticed worsening existing problems previously.
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 3 decision of the Court of Auditors No. 37 of 31.07.2012 "Concerning the report of the audit of administrative-territorial units budgets and management of public patrimony. Chisinau in the period 2010-2011 "(hereinafter-the Decision of the Court of Auditors No. 37 of 31.07.2012) and the decision of the Court of Auditors No. 35 of 28.06.2013" on the budget and Audit Report management of public patrimony in 2012 within the administrative-territorial units in the Chisinau municipality. Chişinău "(hereinafter-the Decision of the Court of Auditors No. 35 of 28.06.2013). 

Deviations from legality and regularity are certified in the administration of the LOCAL GOVERNMENTS of resources and public funds expressed to a large extent, the low level of coordination and oversight of the implementation of internal control instruments.
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 conformity Audit Report management of public patrimony within the framework of public entities. Chişinău in 2014-2015, annexed to this decision.
2. this Resolution and the report of the audit shall be submitted to: 2.1. Chisinau municipal Council, general Mayor of Chisinau municipality. Chisinau, local councils and mayors of the city of Codru, Durlești, Vadul lui Voda Singera, and Commons: Bacioi, Bubuieci, Budești, Tohatin, Cruzești, and ensure the implementation of the recommendations is requested the audit indicated in the audit report, determining concrete actions for the purpose of elimination of deficiencies found and the setting of time limits and the persons responsible for the implementation of recommendations on the basis of the principles of financial management and control;
2.2. general Mayor of Chisinau municipality. Chisinau, for guide and ask for prompt disposition measures related to the implementation of the unequivocal law No. 229 of 23.09.2010 public internal financial control;
2.3. The local councils and mayors of cities: Cricova, Vatra and villages/municipalities: Trușeni, Matthew, stauceni, Grătiești, Ghidighici, Colonița Condrița and for information and attitude concerning voluntary compliance to the audit recommendations indicated in the audit report, given the presence of similar deficiencies found within the audit FAILED to subject;
2.4. The Agency for land Relations and cadastre, for the undertaking jointly with the public property Agency and LOCAL GOVERNMENTS in the Chisinau municipality. Neîntîrziate measures, in order to allow for the completion of the process of delimitation of the lands of the RADIUS. Chişinău in accordance with the legal framework in force;
2.5. The Agency for land Relations and Cadastre, for information, and it is recommended to adjust the classification of the indicators in the real estate registry from the land cadastre as well as documentation and examining the advisability of setting up an automated exchange of information between the real estate register and land cadastre carried out by LOCAL GOVERNMENTS;
2.6. The State Chancellery and the territorial Office Chisinau of the State Chancellery, for information purposes, and is required for administrative control of the insurance activity AAPL from mun. Chişinău, in line with the legal framework with a view to preventing violations and shortcomings noted in the audit report;
2.7. The Ministry of finance, for information, and it is recommended the development and implementation of the methodological framework with regard to the evaluation of local public property lands for the purpose of registration in the accounts of the economic assets of the administrative-territorial units;
2.8. The Prosecutor-General for review and the authority;
2.9. The Government, for autosesizare and relevance:-establishing the criteria and rules necessary for determining the areas of land related objectives;
-updating and completion of the Program of public land delimitation approved through Government decision No. 1528 from 29.12.2007, taking into consideration the provisions of law No. 296 of 21.12.2012 for modifying and completing law No. 91-XVI dated 5 April 2007 on public fields and their delimitation;
2.10. The Moldovan Parliament and parliamentary committees: Economics, budget and finance; public administration, regional development, environment and climate change, for information.
3. notes that, during the audit mission deployment, AAPL (level I and level II) and municipal enterprises: they corrected the accounts in respect of the share capital of the JOINT VENTURE in the amount of 67929.2 thou lei; analytical records have restored heritage totalling 10956.4 thousand lei; they adjusted the accounts of the estate conveyed in commodatum the total amount of 26504.4 thou lei; have regular wear and tear of fixed assets be calculated incorrectly in the amount of 3981.1 thou lei; recorded in the accounts surplus property identified by the audit team totalling 310.8 thousand lei; the goods have been duly recorded streamed management JV in the amount of 1840.7 thou lei respectively in the JOINT VENTURE accounts real estate value received from the founder of 1234.2 MDL; they received payment from the privatisation of publicly owned land in the amount of MDL 11.0; registered in Chisinau OCTOBER property rights on immovable property.
4. exclude from the monitoring procedure decisions of the Court of Auditors No. 37 of 31.07.2012 and no. 35 of 28.06.2013; No. 46 of 25.07.2014 "With regard to the compliance audit Report management of public funds by the Health Directorate of the Chisinau municipal Council, for the budget year 2013".
5. About measures taken to execute subpunctelor 2.1-2.2 and 2.4-2.7 of this Decision, it shall inform the Court of Auditors in its half-yearly period of 18 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.

The PRESIDENT of the COURT OF AUDITORS Serafim URECHEAN