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Law No. 301 Of 17 May 2002 For The Approval Of The Government Ordinance. 119/1999 Concerning Internal Audit And Preventive Financial Control

Original Language Title:  LEGE nr. 301 din 17 mai 2002 pentru aprobarea Ordonanţei Guvernului nr. 119/1999 privind auditul intern şi controlul financiar preventiv

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LEGE no. 301 301 of 17 May 2002 for approval Government Ordinance no. 119/1999 on internal audit and preventive financial control
ISSUER PARLIAMENT
Published in OFFICIAL MONITOR no. 339 339 of 22 May 2002



The Romanian Parliament adopts this law + Article 1 Approval Government Ordinance no. 119 119 of 31 August 1999 on internal audit and preventive financial control, adopted pursuant to art. 1 lit. D. 26 26 of Law no. 140/1999 on the empowerment of the Government to issue ordinances and published in the Official Gazette of Romania, Part I, no. 430 of 31 August 1999, with the following amendments and additions: 1. The title of the ordinance shall read as follows: " ORDINANCE on internal public audit and preventive financial control " 2 2. A) of Article 2 shall read as follows: "o) inspection-verification carried out on the spot for the purpose of finding possible deviations from legality and taking measures to protect public funds and public assets and to repair the damage caused, as appropriate;" 3. Paragraph 3 of Article 7 shall read as follows: " (3) The internal public audit department shall exercise the following tasks: a) the annual certification of the balance sheet and the budget execution account; b) examining the legality, regularity and conformity of operations, identifying errors, waste, mismanagement and fraud and, on this basis, the proposal for measures and solutions to recover damages and sanction those guilty, after case; c) examination of the accounting system and its reliability, as main instrument of knowledge, management and patrimonial control and of the results obtained; d) examination of the regularity of the systems of decision-making, planning, programming, organization, coordination, tracking and control of the decision-making; e) assessment of the savings, effectiveness and efficiency with which the management and execution systems within the public institution and at the level of a program/project use the financial, human or material resources to meet the objectives and obtaining established results; f) identifying the weaknesses of the management and control systems, as well as the risks associated with such systems, programs/projects or operations and the proposal for measures to correct them and to mitigate risks, where applicable. ' 4. After paragraph 3 of Article 7, paragraphs 4 and 5 shall be inserted as follows: " (4) The internal public audit department shall be obliged to audit, without limitation, the following activities and operations: a) the opening and distribution of budgetary appropriations; b) the budgetary and legal commitments from which payment obligations, including from Community funds, derive, directly or indirectly; c) sale, pledge, concession or lease of goods from the private domain of the state or administrative-territorial units; d) the concession or rental of public domain goods of the state or administrative-territorial units; e) payments from public funds, including from funds from the European Community; f) the establishment of public revenues in connection with the authorization and establishment of debt securities, as well as the facilities granted when the debt securities are collected. (5) The activities and operations referred to in par. ((4) shall be audited at least every 3 years. " 5. After paragraph 6 of Article 8, paragraph 6 ^ 1 is inserted as follows: "(6 ^ 1) In the situations in which it was found to commit acts qualified by the law as contraventions, the minutes of finding and sanctioning the contraventions will be drawn up." 6. Paragraph 1 of Article 13 shall read as follows: "" Art. 13. -(1) Public institutions, through their heads, shall have the obligation to organize their own preventive financial control and the record of commitments within the accounting department. " 7. After paragraph 6 of Article 13, paragraph 7 is inserted as follows: "(7) The Ministry of Public Finance will develop methodological norms on the general framework of the duties and exercise of their own preventive financial control." 8. Paragraph 3 of Article 17 shall read as follows: " (3) Before issuing a visa refusal the delegated controller is required to inform him in writing, in connection with his intention, the authorising officer, stating the reasons for the refusal. If the authorising officer presents in writing arguments in favour of carrying out the operation for which the visa refusal is intended, the delegated controller may consult, before officially registering the visa refusal, the neutral opinion of other controllers financial case. Neutral opinion shall be motivated and made in writing and shall have an advisory role, the final solution being the exclusive competence of the competent delegated controller, in accordance with the principle of the independent exercise of financial control tasks. Delegated preventive In the case of neutral consultation, an adhoc committee shall be constituted by the decision of the chief financial controller. The Commission consists of 3 members of the Delegation Controllers Corps, of which 2 delegate controllers, other than those exercising the visa at the public institution from which the arguments for carrying out the operation were received, as well as the controller. chief financial officer or one of his deputies. " 9. Paragraph 3 of Article 18 shall read as follows: " (3) The period provided in par. (2) is suspended from the registration of the information provided in art. 17 17 para. ((3) until receipt of the response of the authorising officer. The suspension period shall also apply for the period necessary for the formulation of the neutral opinion, which shall not exceed 3 working days. " 10 10. The letter c) of paragraph 1 of Article 21 shall read as follows: " c) the submission of monthly reports to the Chief Financial Controller on the current situation of the commitments made, the visas granted and the situations of intentions and visa refusals, the formulation of advisory opinions as well as the issues outstanding performance of financial operations; ' 11. Paragraph 4 of Article 21 shall read as follows: " (4) The delegated controller shall exercise his or her duties independently. He can directly inform the Minister of Public Finance of the special situations arising in his activity and cannot be imposed, on any way, the granting or refusal of the delegated preventive financial control visa. " 12. After paragraph 3 of Article 22, paragraph 4 is inserted as follows: " (4) Until the application of the law on the salary of civil servants the basic salaries, bonuses and other salary rights of the delegated controllers shall be maintained at the level established prior to the entry into force of the Government Emergency Ordinance no. 160/2000 on the salary of financial controllers within the Court of Auditors, according to the provisions of par. ((2) and evaluation of individual professional performance. " 13 paragraphs 4 and 5 of Article 23 shall read as follows: " (4) The Chief Financial Controller has 2 deputies whose duties are established by order of the Minister of Public Finance, at the proposal of the Chief Financial Controller. (5) Also in the structure of the Ministry of Public Finance, in addition to the Corps of delegated controllers and subordinated to the chief financial controller, it operates a specialized direction that provides the necessary methodological and informational support in the activity The body of the delegated controllers and whose duties are established by order of the Minister of Public Finance, at the proposal of the chief financial controller. " 14. in Article 23 (8), after point b), insert letter b ^ 1) with the following contents: " b ^ 1) presents to the Minister of Public Finance, quarterly, reports on the activity of delegated controllers, the situation of intentions and visa refusals, as well as important aspects regarding the use of public funds; 15 paragraphs 1, 4, 5 and 7 of Article 25 shall read as follows: "" Art. 25. -(1) An operation for which the delegated preventive financial control visa was refused can be carried out if authorized by Government decision, at the proposal of the public institution within the central public administration in which it is exercised the function of authorising officer. At the Government meeting the chief financial controller presents the point of view of the delegated controller involved, as well as the neutral opinion. The Government shall deliver within 15 working days from the date of registration of the draft decision to the General Secretariat of the Government. The initiator of the draft decision has the obligation to transmit to the chief financial controller a copy of the draft decision and from the foundation note with their submission to the General Secretariat of the Government, in order to include the agenda of Government meetings. The chief financial controller submits to the General Secretariat of the Government, at least 3 working days before the discussion of the draft decision at the Government meeting, visa refusal and neutral opinion. ................................................................... (4) In all cases in which, as a result of a refusal of preventive financial control, the heads of legal persons referred to in art. 16 16 para. ((2), art. 30 and to art. 37 37 para. (1) have, under the conditions provided by this ordinance, the operation on their own responsibility, the chief accountant of the legal person in this situation having the obligation to inform the Ministry of Public Finance in writing and, as the case may be the upper hierarchical body of the public ((5) The documents relating to projects of operations subject to preventive financial control, which have not been targeted, cannot be approved and carried out. .............................................................. (7) Operations carried out under the provisions of par. ((6) shall also be recorded in an off-balance-sheet account. " 16. After paragraph 2 of Article 26, paragraph 2 ^ 1 is inserted as follows: " (2 ^ 1) The Ministry of Public Finance will trigger inspection in all public institutions when notified by the head of their internal public audit structure in connection with carrying out unlawful operations that have a financial control visa Delegated preventive action, resulting from an internal public audit mission. '; 17. Paragraph 7 of Article 26 shall read as follows: " (7) If following the inspection carried out there are deviations from the legality that have caused damage to public funds or public patrimony, the inspection minutes will be drawn up. An appeal may be filed against the minutes of inspection within 15 working days from the date of its communication. The appeal will be submitted to the structure that carried out the inspection. Appeals will be resolved by reasoned decision, within 30 working days from the date of registration. The decision is final. If by resolution the appeal has been rejected, the minutes of inspection becomes enforceable and will be transmitted for execution to the fiscal body in whose territorial area the objector is domiciled. An action may be taken against the decision within 15 working days of its communication, Law of Administrative Litigation no. 29/1990 ,, as amended, at the court of appeal in whose territorial area the applicant is domiciled. " 18. Paragraph 8 of Article 26 shall be repealed. 19. After paragraph 8 of Article 26, paragraph 9 is inserted as follows: "(9) In the situations in which it was found to commit acts qualified by the law as contraventions, the minutes of contravention will be drawn up." 20. Paragraph 2 of Article 28 shall read as follows: " (2) The public institution with a number of posts of less than 25, which is not subordinated to another public institution, may decide not to organize separately the internal public audit activity. The head of the public institution who decided not to organize the audit activity has the obligation to request the annual certification of the accounting balance sheet and the budget execution account by designated persons from the public services decentralized of the Ministry of Public Finance or on the basis of a contract concluded by the public institution concerned with natural or legal persons agreed according to the methodological norms approved by order of the Minister of Public Finance. " 21. Article 32 shall read as follows: "" ARTICLE 32 Contraventions It constitutes contraventions and the following facts are sanctioned, if they are not committed under such conditions as to be considered, according to the criminal law, crimes: a) violation of the obligation to have, at the level of the public institution, functional organizational structures of internal public audit, as required by art. 6 6; b) non-organization of the functional internal public audit structure within 90 days from the date of establishment of the public institution, according to the provisions of art. 6 6 para. ((1); c) approval of the balance sheet and the budget execution account without certification and certification report; d) non-elaboration of the audit plan, according to art. 8 8 para. ((1)-(3); e) refusal to present to the auditors and persons with inspection tasks the documents requested on the occasion of the audit missions and inspections, according to the provisions of art. 8 8 para. ((5) and art. 26 26 para. ((5); f) failure to fulfill the obligation, by the head of the institution, to organize the own preventive financial control and the record of commitments, according to the 13 13 para. ((1); g) non-compliance with the obligation on the establishment of operations projects subject to preventive financial control, as well as the failure to highlight commitments, according to art. 13 13 para. ((2) and (3); h) submission for approval to the authorising officer of the operations projects without a preventive financial control visa; i) exceeding the deadline provided in art. 18 18 para. ((2)-(4); j) non-compliance with 21 21 para. ((5); k) issuance of a visa refusal without motivation, according to art. 24 24 para. ((2); l) non-compliance with 25 25 para. ((5); m) non-compliance with 25 25 para. ((4); n) non-compliance with 25 25 para. ((7). ' 22. Article 33 shall read as follows: "" ARTICLE 33 Sanctioning contraventions The contraventions provided in art. 32 lit. a)-c), e)-g) and k) are sanctioned with a fine of 30,000,000 lei to 50,000,000 lei, and those provided in lett. d), h)-j) and l)-n), with a fine from 10,000,000 lei to 30,000,000 lei. " 23. The title of Article 34 shall read as follows: "" Finding contraventions, establishing and enforcing fines, remedies, updating the level of fines " 24 paragraphs 1 and 4 of Article 34 shall read as follows: "" Art. 34. -(1) The finding of contraventions and the application of sanctions shall be made by: a) auditors within the internal public audit structures of the Ministry of Public Finance, for the contraventions provided in art. 32 lit. a), b)-g), i)-l) and n); b) auditors within the internal public audit structures of each public institution, on the basis of their competence, for the contraventions provided in art. 32 lit. a), c)-h) and l)-n); c) persons with inspection duties within the Ministry of Public Finance, for the contraventions provided in art. 32 lit. e), f), h), l) and m); d) financial controllers within the Corps of delegated controllers, for the contraventions provided in art. 32 lit. f) and l). ............................................................... (4) Against the minutes of finding contraventions and application of sanctions, drawn up according to the competences established according to par. ((1), a complaint may be made within 15 days from the date of delivery or communication thereof. The complaint, accompanied by the copy of the minutes of finding the contravention, shall be submitted to the body to which the ascertaining agent belongs, according to the provisions Government Ordinance no. 2/2001 on the legal regime of contraventions. The complaint, together with the case file, shall be sent immediately to the court in whose constituency the contravention was committed. " 25. Paragraph 2 of Article 37 shall read as follows: " (2) In order to ensure the delegated preventive financial control, provided in par. (1), the regulations contained in this ordinance shall be assimilated, applicable to the public institutions provided in art. 17 17 para. ((3) and in art. 25 25 para. ((1). ' 26. Throughout the ordinance the name of the Ministry of Finance will be replaced by the name of the Ministry of Public Finance, the Minister of Finance, with the phrase of the Minister of Public Finance, and the internal audit expression, with the internal public audit expression. + Article 2 The date of entry into force of this Law shall be repealed Government Emergency Ordinance no. 225/2000 for completion Government Ordinance no. 119/1999 on internal audit and preventive financial control, published in the Official Gazette of Romania, Part I, no. 606 606 of 25 November 2000, and Law no. 486/2001 on approval Government Emergency Ordinance no. 225/2000 for completion Government Ordinance no. 119/1999 on internal audit and preventive financial control, published in the Official Gazette of Romania, Part I, no. 614 614 of 28 September 2001. + Article 3 Government Ordinance no. 119/1999 on internal audit and preventive financial control, with the amendments and completions brought by this law, will be republished in the Official Gazette of Romania, Part I, giving the texts a new numbering. This law was adopted by the Senate at the meeting of 18 April 2002, in compliance with the provisions of art. 74 74 para. (2) of the Romanian Constitution. p. SENATE PRESIDENT, DORU IOAN TARACILA This law was adopted by the Chamber of Deputies at its meeting on April 25, 2002, in compliance with the provisions of 74 74 para. (2) of the Romanian Constitution. CHAMBER OF DEPUTIES PRESIDENT VALER DORNEANU -----------