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Law No. 672 Of 19 December 2002 On Public Internal Audit

Original Language Title:  LEGE nr. 672 din 19 decembrie 2002 privind auditul public intern

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LEGE no. 672 672 of 19 December 2002 (** republished) (* updated *) on internal public audit * *) ((updated until 12 June 2012 *)
ISSUER PARLIAMENT




----------- ** **) Republicated pursuant to art. VI of Law no. 191/2011 to amend and supplement Law no. 672/2002 on the internal public audit, published in the Official Gazette of Romania, Part I, no. 780 of 3 November 2011, giving the texts a new numbering. Law no. 672/2002 on the internal public audit was published in the Official Gazette of Romania, Part I, no. 953 of 24 December 2002 and has been amended and supplemented by: - Government Ordinance no. 37/2004 for the modification and completion of the regulations on internal audit, published in the Official Gazette of Romania, Part I, no. 91 of 31 January 2004, approved by Law no. 106/2004 , published in the Official Gazette of Romania, Part I, no. 332 332 of 16 April 2004; - Government Emergency Ordinance no. 35/2009 on the regulation of financial measures in the field of personnel expenses in the budgetary sector, published in the Official Gazette of Romania, Part I, no. 249 of 14 April 2009, approved with amendments and additions by Law no. 260/2009 , published in the Official Gazette of Romania, Part I, no. 484 484 of 13 July 2009; - Law no. 329/2009 on the reorganisation of public authorities and institutions, the rationalisation of public expenditure, the support of the business environment and the observance of framework agreements with the European Commission and the International Monetary Fund, published in the Romania, Part I, no. 761 of 9 November 2009, with subsequent amendments and completions; - Framework law no. 284/2010 on the unitary salary of the personnel paid from public funds, published in the Official Gazette of Romania, Part I, no. 877 of 28 December 2010, as amended. + Chapter I General provisions + Article 1 This law regulates the organization and exercise of internal public audit in public entities. + Article 2 Within the meaning of the present law, the following terms and expressions are defined as follows: a) internal public audit-independent and objective functional activity, insurance and advice, designed to add value and improve the activities of the public entity; help the public entity to meet its objectives, through a systematic and methodical approach, assess and improve the efficiency and effectiveness of risk management, control and governance processes; b) public authority-any state body or administrative-territorial units acting, under public power, for the satisfaction of a public legitimate interest; the associative structures of the local public authorities and other legal persons governed by private law who, according to the law, have obtained public utility status and are authorized to provide a public service, under public power; c) the general professional competence framework of the internal auditor of the public sector, hereinafter referred to as the general professional competence framework-encompasses the fields and, within them, the necessary professional knowledge, skills and values the exercise of internal public audit activity in public entities and which are specified in the Occupational Standard "Internal Auditor in the Public Sector"; d) Charter of the internal public audit-official document defining the purpose, objectives, organisation, competences, responsibilities and authority of the audit structure within the public entity, scope, nature of the insurance services and advice, working methodology, rules of conduct of internal auditors and establishes the need for access to documents, goods and information, on the occasion of the audit missions carried out; e) certificate of attestation of the internal auditor of the public sector, hereinafter referred to as certificate of attestation-document issued by the Ministry of Public Finance, through the Central Harmonization Unit for the Internal Public Audit (UCAAPI), which attests the fulfilment of the conditions necessary for an internal auditor to carry out internal public audit activities in public entities; f) internal public audit compartment-generic notion on the type of basic functional structure of the internal public audit which, depending on the volume and complexity of the activities and associated risks at the level of the public entity, may be: general direction, direction, service, office or compartment with minimum 2 internal auditors, full-time employees; g) internal control-the totality of policies and procedures developed and implemented by the management of the public entity to ensure: achieving the entity's objectives in an economic, efficient and effective way; the domain, policies and decisions of management; protection of goods and information, prevention and detection of fraud and errors; the quality of accounting documents, as well as the timely provision of reliable information for management; h) internal public financial control-the entire system of internal control in the public sector, consisting of the control systems of public entities, of other structures empowered by the Government and of the central units responsible for harmonization and implementation of control and audit principles and standards; i) cooperation to ensure the internal public audit activity in local public entities-the joint exercise of internal public audit activity by several entities, one fulfilling the role of organizer, or the realization of this activity, for several local public entities, audit compartments organized at the level of public utility associative structures of the local public administration authorities, in accordance with the decisions of the local councils; the terms of the cooperation are agreed; j) acquisition of competencies-the process by which the knowledge, skills and professional values required of a person are obtained to plan and execute internal public audit missions to public entities and whose possession is confirmed by to institutions authorised by law; k) economicity-minimizing the cost of resources allocated to achieve the estimated results of an activity, maintaining the proper quality of these results; l) effectiveness-the degree of achievement of the objectives scheduled for each of the activities and the ratio between the projected effect and the actual result of the activity m) efficiency-maximizing the results of an activity in relation to the resources used; n) public entity-public authority, public institution, company/national company, autonomous direction, the commercial company in which the state or an administrative-territorial unit is a majority shareholder and which has legal personality, such as and the entity funded by more than 50% of public funds; o) public funds-amounts allocated from the state budget, local budgets, state social insurance budget, budgets of special funds, budget of the State Treasury, budgets of autonomous public institutions, funds from external credits contracted or guaranteed by the State and whose reimbursement, interest and other costs are provided from public funds and non-reimbursable external funds; p) governance-all processes and structures implemented by management for the purpose of informing, directing, directing and monitoring the activities of the public entity towards achieving its objectives; r) public institution-generic name including Parliament, Presidential Administration, ministries, other specialized bodies of public administration, other public authorities, autonomous public institutions, units administrative-territorial, respectively communes, cities, municipalities, counties, sectors and city of Bucharest, subordinate central and local public institutions, in coordination or under the authority of other public entities, regardless of how financing their activity; s) small public institution-the institution that runs an annual budget up to the level of the equivalent in lei of 100,000 euros for a period of 3 consecutive years; s) authorized institutions-higher education institutions accredited in Romania, as well as professional training providers authorized by the National Council of Qualifications and Adult Professional Training (CNCFPA); t) public patrimony-the totality of the rights and obligations of the state, administrative-territorial units or their public entities, acquired or assumed with any title; concerning both public and private assets of the state and administrative-territorial units; t) audit trail-the establishment of the information flows, duties and responsibilities related to them, as well as the archiving of the complete supporting documentation, for all stages of carrying out an action, allowing, at the same time, reconstitution of operations from the total amount to individual details and vice versa u) Occupational Standard "Internal Auditor in the public sector" approved document based on Law no. 132/1999 on the establishment, organization and functioning of the National Council of Qualifications and the Professional Training of Adults, republished, with subsequent amendments and completions, which specify the units of competence and the associated qualitative level the results of specific activities concerning the occupation of internal auditor in the public sector v) associative structures of local public authorities, hereinafter referred to as associative structures-include: Association of Communes of Romania, Association of Cities of Romania, Association of Municipalities of Romania, National Union of County Councils from Romania and other associative forms of general interest for the local public administration, established according to the law, as well as the territorial structures with their legal personality, as the case may be. + Chapter II Organisation of internal public audit + Article 3 (1) The general objective of the internal public audit in public entities is to improve their management and can be achieved, mainly by: a) insurance activities, which are objective examinations of the evidence, carried out in order to provide public entities with an independent evaluation of the risk management, control and governance processes; b) advisory activities aimed at adding value and improving governance processes in public entities, without the internal auditor taking on managerial responsibilities. (2) The scope of the internal public audit shall include all activities carried out within public entities to achieve their objectives, including the evaluation of the management control system. (3) The Ministry of Public Finance and the Chamber of Financial Auditors of Romania will develop the Common Framework with the objectives specific to the internal audit of economic entities in the public domain. + Article 4 The internal public audit is organized as follows: a) the Internal Audit Committee (CAPI); b) the Central Harmonization Unit for the Internal Public Audit (UCAAPI); c) internal audit committees; d) internal public audit compartments from public entities. + Article 5 (1) The Committee for Public Internal Audit (CAPI) is established in addition to the Central Harmonization Unit for the Internal Public Audit (UCAAPI), an advisory body, to act in order to define the strategy and improve internal public audit work in the public sector. (2) The CAPI comprises 11 members, as follows: a) President of the Chamber of Financial Auditors in Romania; b) university professors with expertise in the field of internal public audit-2 persons; c) highly qualified specialists in the field of internal public audit-3 persons; d) the general manager of UCAAPI; e) experts from other fields of activity, namely public accounting, legal, information systems-3 persons; f) a representative from the management of associative structures of local public authorities. (3) CAPI members, with the exception of the general manager of the UCAAPI, cannot be part of the structures of the Ministry of Public Finance, and the Their nomination will be determined by norms approved by Government decision *). --------- * *) See Government Decision no. 235/2003 for the approval of the Rules on the nomination of members of the Internal Audit Committee, published in the Official Gazette of Romania, Part I, no. 162 162 of 13 March 2003. ((4) The CAPI will be headed by a President-elect by a simple majority of votes from among the members of the Committee, for a period of 3 years; the President shall convene the meetings (5) The regulation on the organization and functioning of the CAPI is approved by its plenum, with a majority of half plus one of the votes. (6) The technical secretariat of the CAPI is provided by the UCAAPI. (7) CAPI members shall receive a sitting allowance equal to 20% of the level equivalent to the gross salary of the secretaries of state; the allowance shall be borne from the state budget, through the budget of the Ministry of Public Finance * *). ------------ ** **) art. 14 14 of Law no. 329/2009 on the reorganisation of public authorities and institutions, the rationalisation of public expenditure, the support of the business environment and the observance of framework agreements with the European Commission and the International Monetary Fund, published in the Romania, Part I, no. 761 of 9 November 2009, with subsequent amendments and completions, from the date of entry into force of the law until 31 December 2010, the allowance provided for in art. 5 5 para. ((7) of Law no. 672/2002 was equal to 1% of the Secretary of State's allowance. + Article 6 In achieving its objectives the CAPI has the following main tasks: a) debate the strategic development plans in the field of internal public audit and issue an opinion on the directions for its development; b) debate and issue an opinion on the normative act developed by UCAAPI in the field of internal public audit; c) debates and endorses the annual report on internal public audit activity and presents it to the Government; d) endorses the plan of internal public audit missions of national interest with multisectoral implications; e) debate and issue an opinion on internal public audit reports of national interest with multisectoral implications; f) analyze the importance of the recommendations made by internal auditors in case of divergences of opinions between the head of the public entity and internal auditors, issuing an opinion on the consequences of non-implementation of their recommendations; g) analyse the cooperation agreements between internal and external audit on the definition of concepts and the use of standards in the field, the exchange of results from the actual audit activity, as well as the joint professional training of auditors; h) endorses the appointment and revocation of the Director General of UCAAPI. + Article 7 (1) Within the Ministry of Public Finance, the Central Harmonization Unit for the Internal Public Audit (UCAAPI), structured on specialized services, is constituted under the direct subordination of the Minister of Public Finance. ((2) The UCAAPI is headed by a Director-General, appointed by the Minister of Public Finance, with the opinion of CAPI (3) The Director-General shall be a public official and must have a high professional qualification in the financial and accounting field and/or audit, with appropriate professional competence, and meet the requirements of the Code on Conduct Internal auditor's ethics. + Article 8 In achieving its objectives UCAAPI has the following main tasks: a) develop, lead and apply a unified strategy in the field of internal public audit and monitor this activity at national level; b) develop the normative framework in the field of internal public audit; c) develop and implement uniform procedures and methodologies based on international standards, including internal audit manuals; d) develop methodologies in the field of managerial risk; e) elaborate the Code on the ethical conduct of the internal auditor *); --------- * *) See Order of the Minister of Public Finance 252/2004 for the approval of the Code on ethical conduct of the internal auditor, published in the Official Gazette of Romania, Part I, no. 128 128 of 12 February 2004. f) endorses the methodological norms specific to different sectors of activity in the field of internal public audit, including the own methodological norms of internal public audit compartments organized at the level of associative structures; g) develops the system for reporting the results of the internal public audit activity and elaborates the annual report, as well as summaries, based on the reports received, including from the internal public audit compartments organized at the level of the structures associative; h) carry out internal public audit missions of national interest with multisectoral implications; i) verify compliance by internal public audit compartments, including those organized at the level of associative structures, norms, instructions, as well as the Code on the ethical conduct of the internal auditor, evaluate their activity and may initiate the necessary corrective measures, in cooperation with the head of the public entity or the associative structure concerned; j) establish the general framework of the cooperation agreement to ensure the internal public audit activity in local public entities; k) guide local public entities and associative structures in the implementation of the cooperation system to ensure internal public audit work; l) establish, under the law, for the areas of the general framework of professional skills the knowledge, skills and values that a person must hold for the exercise of internal public audit activity; m) coordinates the recruitment system in the field of internal public audit, the system of national attestation of internal auditors from public entities, as well as their continuous vocational training system; n) endorses the appointment/dismissal of heads of internal public audit compartments from public entities; o) cooperate with the Court of Auditors to ensure the complementarity of internal public audit and external public audit activities and increase their efficiency, as well as with other public authorities and institutions in Romania, in compliance with independence, functions and requirements specific to each profession; p) cooperates with public financial control authorities and organizations in other states, including the European Commission. + Article 9 (1) The central public institutions running during a budget year a budget of more than 2,000,000,000 lei shall be an internal audit committee to act in order to increase the efficiency of the internal public audit activity. (. The internal audit committee shall comprise between 5 and 7 members appointed by the head of the central public institution and shall have the following component: a) internal auditors with experience of at least 5 years, 2-3 persons; b) specialists of at least 5 years old working in the specific field of activity of the public institution or in the support areas: financial-accounting, human resources, legal, computer systems, 2-3 persons; c) the head of the internal public audit department. (3) Internal auditors nominated in par. ((2) lit. a) operate in other public institutions that are not subordinated, in coordination or under the authority of the public institution concerned. (4) Specialists nominated in par. ((2) lit. b) operate within the central public institution and do not occupy management positions. (5) The decision-making balance within the internal audit committee shall be ensured by co-opting in equal numbers the persons nominated in par. ((2) lit. a) and b). (6) The internal audit committee shall be headed by a chairman, elected by a simple majority of votes from among the members of the committee, for a term of 3 years, which may be renewed once; the head of the internal public audit department may not perform the position of President. (7) The Regulation on the organization and functioning of the internal audit committee shall be approved by its plenary, by a simple majority of the votes. (8) The technical secretariat of the internal audit committee shall be provided by the internal public audit department of the central public institution. (9) The members of the internal audit committee receive a meeting allowance established under the same conditions as the meeting allowance of the members of the Internal Audit Committee (CAPI); the allowance shall be borne from the state budget, through the budget the central public institution concerned. (10) The internal audit committee shall meet twice a year, in ordinary meetings, or whenever necessary, in extraordinary meetings, only to carry out the tasks provided in art. 10 lit. b), d) and f). (11) At the request of the head of the central public institution, the chairman of the internal audit committee will attend the management meetings at the top, in order to express the opinion of the committee on the issues (12) Public institutions with a budget of less than 2,000,000,000 lei during a budget year may constitute internal audit committees in order to increase the efficiency of the internal audit activity. + Article 10 In achieving its objectives, the internal audit committee shall have the following main tasks: a) debate and endorse the multiannual plan and the annual plan for internal public audit work; b) analyze and issue an opinion on the recommendations made by internal auditors, including those that have not been accepted by the head of the central public institution; c) endorses the Charter of Internal Public Audit; d) examine the complaints regarding the non-compliance with the Code on the ethical conduct of the internal auditor and propose to the head of the central public institution e) analyze and endorse the annual report of the internal public audit activity; f) endorses cooperation agreements with other public institutions on the exercise of internal public audit work. + Article 11 The internal public audit department shall be organized as follows: a) the head of the public institution or, in the case of other public entities, the collective management body has the obligation to ensure the organizational and functional framework necessary to conduct the internal public audit b) the local public entities that cooperate to ensure the internal public audit activity use the audit capacity of the compartment that is constituted within the organizing entity or at the level of the associative structure, as the case may be; the audit department is organized and operates according to the provisions of this law; c) repealed; --------- Lit. c) of art. 11 11 has been repealed by section 6.6. 1 1 of art. VI of EMERGENCY ORDINANCE no. 26 26 of 6 June 2012 , published in MONITORUL OFFICIAL no. 392 392 of 12 June 2012. d) to small public institutions, which are not subordinated to other public entities, the internal public audit is limited to the audit of regularity and is carried out by the internal public audit compartments of the Ministry of Public Finance; e) to central public entities whose leaders are principal authorising officers and manage a budget of up to 5,000,000 lei and did not constitute an internal public audit compartment, the audit activity is carried out by the Ministry Public Finance, through UCAAPI, on the basis of a collaboration protocol; f) the head of the subordinated public entity, respectively in coordination or under the authority of another public entity, establishes and maintains a functional internal public audit compartment, with the agreement of the superior public entity; if this agreement is not shall be given, the audit of that entity shall be carried out by the internal public audit department of the public entity which decided it. + Article 12 (1) The internal public audit department shall be distinctly subordinated to the head of the entity. (2) The head of the internal public audit department shall be appointed/deposed by the head of the associative entity/structure, with the opinion of the UCAAPI; for subordinate public entities, in coordination or under the authority of other public entities, The appointment/dismissal is made with the opinion of the superior hierarchical public entity, under the law. (3) The head of the internal public audit department is responsible for the organization and conduct of audit activities. (4) The internal public audit department shall be sized, as a number of auditors, on the basis of the volume of activity and the size of the associated risks, so as to ensure the auditing of the activities covered by the internal public audit. (5) The internal public audit department within the organizing entity, respectively from the associative structure level, is sized, as a number of auditors, so as to ensure the realization of the internal public audit activity in all entities local public contained in the cooperation agreement; the expenses occasioned by the internal public audit work carried out in cooperation system, representing personnel expenses, expenses related to taxes, contributions and other related taxes the rights of personnel granted and those with internal movements are apportioned, in a manner corresponding, on the signatory entities of the agreement, depending on the number of days/auditor provided; the other material expenses, if the parties do not agree otherwise, remain the responsibility of the organizing entity or the associative structure, as the case may be; the concrete method of settlement of expenditure shall be determined by the cooperation agreement. ((6) Abrogat. --------- Alin. ((6) of art. 12 12 has been repealed by section 6.6. 2 2 of art. VI of EMERGENCY ORDINANCE no. 26 26 of 6 June 2012 , published in MONITORUL OFFICIAL no. 392 392 of 12 June 2012. (7) The function of internal auditor is incompatible with the exercise of this function as a professional activity oriented towards profit or reward. + Article 13 The tasks of the internal public audit department are: a) develop methodological norms specific to the public entity in which it operates, with the opinion of UCAAPI, and in the case of subordinate public entities, respectively in coordination or under the authority of another public entity, with its opinion; b) develop the draft multiannual internal public audit plan, as a rule for a period of 3 years, and, on its basis, the draft annual internal public audit plan; c) perform internal public audit activities to assess whether the financial management and control systems of the public entity are transparent and comply with the rules of legality, regularity, economy, efficiency and effectiveness; d) inform the UCAAPI about the recommendations not appropriated by the head of the audited public entity, as well as their consequences; e) periodically report on the findings, conclusions and recommendations resulting from its audit activities; f) elaborates the annual report of the internal public audit activity; g) in case of identification of irregularities or possible damage, report immediately to the head of the public entity and the competent internal control structure; h) verify compliance with the rules, instructions, as well as the Code on ethical conduct within internal audit compartments of subordinate public entities, in coordination or under authority and may initiate corrective measures necessary, in cooperation with the head of the public entity concerned. + Chapter III Conduct of internal public audit + Article 14 The audit types are as follows: a) the system audit, which represents an in-depth assessment of the management and internal control systems, with the aim of establishing whether they operate economically, effectively and efficiently, to identify deficiencies and make recommendations to correct them; b) performance audit, which examines whether the criteria set for the implementation of the public entity's objectives and tasks are correct for the evaluation of the results and assess whether the results comply with the c) the audit of regularity, which represents the examination of actions on financial effects on account of public funds or public patrimony, in terms of compliance with the principle of principles, procedural and methodological rules applicable. + Article 15 (1) The internal public audit shall be carried out on all activities carried out in a public entity, including the activities of subordinate entities, in coordination or under the authority of other public entities. (2) The internal public audit department shall audit, at least every 3 years, without limitation, the following: a) financial or financial activities carried out by the public entity from the moment of establishment of commitments until the use of funds by final beneficiaries, including funds from external financing; b) payments made by budgetary and legal commitments, including from Community funds; c) the management of the patrimony, as well as the sale, pledging, concession or leasing of goods from the private domain of the state or of the administrative-territorial units; d) concession or lease of public domain assets of the state or administrative-territorial units; e) the establishment of public revenues, namely the way of authorization and establishment of debt securities, as well as the facilities granted to their collection; f) allocation of budget appropriations; g) the accounting system and its reliability; h) the decision-making system; i) the management and control systems, as well as the risks associated with such systems; j) computer systems. + Article 16 (1) The draft multiannual plan, namely the draft annual internal public audit plan shall be drawn up by the internal public audit department, based on the risk assessment associated with different structures, activities, programs/projects or operations, as well as by taking over the suggestions of the head of the public entity, through consultation with the higher hierarchical public entities, taking into account the recommendations of the Court of Accounts of Romania and of the bodies which consistently poses high risks must be audited, as a rule, annually. ((2) The projects of multiannual plans and the projects of the annual internal public audit plans of local public entities that ensure their audit activity through cooperation shall be elaborated in accordance with the provisions set out in par. ((1) and shall be centralized in the multiannual plan and in the annual audit plan of the organizing public entity, respectively of the associative structure, as the case may be. ((3) Abrogat. --------- Alin. ((3) of art. 16 16 has been repealed by section 6.6. 3 3 of art. VI of EMERGENCY ORDINANCE no. 26 26 of 6 June 2012 , published in MONITORUL OFFICIAL no. 392 392 of 12 June 2012. (4) The head of the public entity shall approve the draft internal public audit plan annually. ((5) The auditors of the internal public audit compartments shall carry out, with the approval of the head of the public entity, ad hoc audit missions, considered as exceptional internal public audit missions, not included in the annual plan, in the conditions provided in art. 17. + Article 17 In carrying out the audit missions the internal auditors carry out their work on a service order, issued by the head of the internal public audit department, which explicitly provides for the purpose, objectives, type and duration of the internal public audit, as well as the auditing team nomination. + Article 18 (1) The internal public audit compartment shall notify the structure to be audited 15 calendar days before the audit mission is triggered; the notification shall include the purpose, the main objectives and the duration of the audit mission; the notification shall be accompanied by the Charter of Internal Public Audit. (2) Internal auditors have access to all data and information, including those existing in electronic format, which they consider relevant for the purpose and objectives specified in the service order. (3) The management and execution staff of the audited structure are required to provide the requested documents and information, within the established deadlines, as well as all the support necessary to carry out in good conditions the internal public audit. (4) Internal auditors may request data, information, as well as copies of documents, certificates for conformity, from natural and legal persons in connection with the audited structure, and they are required to make them available at requested date. At the same time, internal auditors may carry out to these natural and legal persons any kind of financial and accounting rechecks related to the internal control activities to which they have been subject, which will be used for the finding of legality and the regularity of that activity. (5) The authorised representatives of the European Commission and of the European Court of Auditors shall be provided with rights similar to those laid down for internal auditors in order to protect the financial interests of the European Union; they must be empowered to do so by a written authorization stating their identity and position, and by a document indicating the object and purpose of the inspection or inspection on site. (6) Whenever the internal public audit is required by a strict expert knowledge, the head of the internal public audit department may decide on the appropriateness of the contracting of outside expertise/consultancy services public entity. + Article 19 (1) Internal auditors shall develop a draft internal public audit report at the end of each internal public audit mission; the draft internal public audit report shall reflect the overall framework, objectives, findings, conclusions and recommendations. The internal public audit report shall be accompanied by supporting documents. (2) The draft internal public audit report shall be submitted to the audited structure; it may communicate, within 15 calendar days from the receipt of the report, its views, which will be analyzed by the internal auditors. ((3) Within 10 calendar days from the reception of the points of view, the internal public audit department shall hold the conciliation meeting with the audited structure, within which the findings and conclusions shall be considered, in order to accept recommendations made. (4) The head of the internal public audit department shall transmit, as the case may be, the completed internal public audit report, for analysis and approval, together with the results of the conciliation: a) the head of the public entity that approved the mission; b) only the head of the local public entity that ensures its audit activity through cooperation, for its own internal public audit missions, and does not inform other natural or legal persons, except those provided by law, about data, facts or situations found during the missions; c) the head of the small public institution (5) After approval, the recommendations contained in the internal public audit report shall be communicated to the audited structure. (6) The audited structure shall inform the internal public audit department of the implementation of the recommendations, including a timetable thereof. The head of the internal public audit department shall inform the UCAAPI or the higher hierarchical body, as the case may be, of the recommendations that have not been endorsed; these recommendations will be accompanied by the supporting documentation. (7) The internal public audit department shall verify and report to the UCAAPI or the higher hierarchical body, as appropriate, on the progress made in implementing the recommendations. + Chapter IV Internal auditors + Article 20 (1) Internal auditors who are civil servants are recruited, subject to the legal regime on incompatibilities, have rights and obligations, in accordance with the provisions Law no. 188/1999 on the Statute of civil servants, republished, with subsequent amendments and completions, as well as with the provisions of this Law (2) The appointment or revocation of internal auditors shall be made by the head of the public entity, respectively by the collective management body, with the opinion of the head of the internal public audit department. (3) The general framework of professional competence of internal auditors in the public sector covers, according to the Occupational Standard approved for this occupation, at least the following areas: a) internal audit; b) risk management, internal control and governance; c) management; d) accounting; e) public finances; f) information technology; g) right. ((. The recognition of the professional skills acquired by the internal auditor shall be based on: a) correspondence of the subjects registered in the matrix sheets, related to university, postgraduate and graduation certificates with national recognition, granted under the law, with the fields of the general competence professional; b) for areas not found within the matrix sheets or in equivalent, the internal auditor must complete his professional training through programs organized by authorized institutions, completed by diplomas or certificates of graduation with national recognition. (. The certificate of attestation shall be issued if the following conditions are met: a) following the recognition process resulted in the fulfilment of the conditions provided in par. ((4); b) professional experience of at least one year; c) professional probity confirmed by two recommendations from internal auditors or specialists in the field, with experience of at least 5 years in public activity. (6) For internal auditors holding a certificate in internal audit issued by relevant institutions with international recognition, namely the Institute of Internal Auditors of the United States of America, the French Institute of Auditing and Control Internally, the Institute of Internal Auditors in the UK and Ireland, it is no longer necessary to meet the conditions mentioned in par. ((5) lit. a). (7) The certificate of attestation shall lose its validity when: a) the internal auditor/certified natural person has not carried out specific internal public audit activities for 5 years; b) the internal auditor/certified natural person did not attend vocational training courses in the framework of the continuing vocational training program. (8) For internal auditors who are not civil servants the selection and establishment of rights and obligations shall be made in accordance with the regulations of the public entity, as well as with the provisions of this law. (9) Natural persons, other than internal auditors, who request the attestation certificate shall be subject to the same conditions for granting, maintaining or losing the validity established for internal auditors in public entities. + Article 21 (1) Internal auditors must perform their duties objectively and independently, with professionalism and integrity, according to the provisions of this law and according to the norms and procedures specific to the internal public audit activity. (2) For their actions, undertaken in good faith in the exercise of their duties and within their limits, internal auditors cannot be sanctioned or passed in another position. (3) The internal auditors shall not disclose any data, facts or situations which they have found during the course of the performance of the internal public audit missions. (4) Internal auditors are responsible for the protection of documents relating to internal public audit carried out at a public entity. ((5) The liability for measures taken following the analysis of the recommendations presented in the audit reports belongs to the management of the public entity. (6) Internal auditors must comply with the provisions of the Code on the ethical conduct of the internal auditor. (7) Internal auditors have the obligation to improve their knowledge, skills and values in continuous professional training, including after obtaining the certificate of attestation, which is carried out by: a) participation in courses and seminars on topics related to the fields of the general framework of professional skills or those specific to the public entity; b) individual studies on topics approved by the head of the internal public audit department; c) publication of specialized materials. (8) Continuous vocational training shall be carried out within a period of at least 15 working days per year, which shall be the responsibility of the head of the internal public audit department, as well as of the management of the public entity. (9) Internal auditors have the obligation to submit reports on how to carry out continuous vocational training programs, endorsed by the head of the public entity, to the body that issued the certificate of attestation, once every 5 years, on the basis of which the maintenance/loss of validity of the attestation certificate will be + Article 22 (1) Persons who are spouses, relatives or afini up to the fourth degree including the head of the public entity may not be internal auditors within the same public entity. (2) Internal auditors may not be assigned to carry out internal public audit missions to a public structure/entity if they are spouses, relatives or afini up to the fourth degree including its leader or members of the management body collective. (3) Internal auditors must not be involved in any way in carrying out the activities they can potentially audit, nor in the development and implementation of internal control systems of public entities. (4) Internal auditors who have responsibilities for the implementation of programmes and projects financed in whole or in part by the European Union should not be involved in auditing these programmes. (5) Internal auditors should not be entrusted with internal public audit missions in the sectors of activity in which they held office or were otherwise involved; this prohibition may be lifted after the passage of a period of 3 months. years. (6) Internal auditors found in one of the situations referred to in par. ((1)-(5) are required to inform immediately, in writing, the head of the public entity and the head of the internal public audit structure. + Chapter V Contraventions and penalties + Article 23 It constitutes contraventions and is sanctioned with a fine of 3,000 lei to 5,000 lei the following facts: a) violation of the obligation to ensure the organizational and functional framework necessary to carry out internal public audit activity, according to the provisions of art. 11 lit. a); b) the violation of the obligation to develop internal public audit norms specific to the public entity, as well as their failure to appear for approval, according to the provisions of 13 lit. a); c) violation of the obligation to develop the draft internal public audit plan, according to art. 13 lit. b); d) the refusal of the execution or management personnel, involved in the audited activity, to present the documents requested on the occasion of the internal public audit missions, in accordance with the provisions of art. 18 18 para. ((3); e) non-compliance with the provisions regarding the appointment/dismissal of the head of the internal public audit department, respectively to the appointment/revocation of internal auditors, in accordance with the provisions of art. 12 12 para. ((2), respectively of art. 20 20 para. ((2). + Article 24 The finding of contraventions and the application of sanctions shall be made a) of authorized representatives of the Ministry of Public Finance, for the contraventions provided in art. 23 23; b) by the authorized representatives of the superior hierarchical body, at the level of the subordinate public entity, for the contraventions provided in art. 23 lit. a), c) and e); c) by the representatives empowered by the head of the public entity, for the contraventions provided in art. 23 lit. d). + Article 25 Contraventions provided for in art. 23 the provisions of Government Ordinance no. 2/2001 on the legal regime of contraventions, approved with amendments and additions by Law no. 180/2002 , with subsequent amendments and completions. + Chapter VI Final provisions + Article 26 Within 90 days from the date of entry into force of this Law *) the Ministry of Public Finance will develop general methodological norms regarding the exercise of internal public audit * *). + Article 27 On the date of entry into force of this Law *) art. 2 lit. c), i), k)-n), p), u), art. 6-9, 28, art. 29 29 para. ((2), art. 32 lit. a)-e), art. 34 34 para. ((1) lit. a) and b), art. 37 37 para. ((3), as well as any other provisions relating to the internal public audit of Government Ordinance no. 119/1999 on internal public audit and preventive financial control, published in the Official Gazette of Romania, Part I, no. 430 of 31 August 1999, approved with amendments and additions by Law no. 301/2002 . NOTE: We reproduce below the provisions art. II-V of Law no. 191/2011 to amend and supplement Law no. 672/2002 on the internal public audit, which were not incorporated in the republished text of the Law no. 672/2002 and which continue to apply as own provisions of the amending act: "" Art. II. -Internal audit committees set up in accordance with the provisions art. 8 8 ^ 1 * **) para. ((1) of Law no. 672/2002 on the internal public audit, as amended and supplemented, shall work from 1 January 2012. Art. III. -For the attestation of internal auditors from public entities, depending on the date of entry into force of this Law, the following transitional provisions shall apply: 1. The internal auditors in office shall obtain the certificate of attestation within 6 years from the date of entry into force of this Law; the expenses related to obtaining the attestation shall be borne by the employer, within the budget provided for professional training. 2. By exception to the provisions art. 18 18 para. ((2 ^ 2) * ***) of Law no. 672/2002 , with subsequent amendments and completions, internal auditors from public entities, at least 5 years old depending on the expiry date of the term provided for in item 1., they are recognized the possession of professional skills in internal audit and risk management, internal control and governance. 3. After the expiry of the time limit 1, internal auditors who do not hold the certificate of attestation from their fault can no longer perform and supervise internal public audit missions, and will carry out other administrative activities in the field of internal public audit or be transferred to other compartments within the entity. Art. IV. -After the deadline provided for in art. III point 1, possession of the certificate of attestation or fulfilment of the art. 18 18 para. ((2 ^ 2) * ***) of Law no. 672/2002 , with subsequent amendments and completions, as the case may be, constitute specific requirements set out in the sheets of vacancies submitted to the competition for the position of internal auditor in public entities. Art. V.-(1) General rules on the exercise of internal public audit, which will also include the advisory work carried out by internal auditors, provided by Order of the Minister of Public Finance 1.702/2005 for the approval of the Rules on the organization and exercise of the advisory activity carried out by internal auditors within public entities, shall be updated by the Ministry of Public Finance within 90 days from the date of entry into force of this law and is approved by the Government. (2) The rules on the cooperation system for ensuring the internal public audit function shall be elaborated by the Ministry of Public Finance within 90 days from the date of entry into force of this Law and shall be approved by the Government. (3) The coordination and conduct of processes of national attestation and continuous professional training of internal auditors in the public sector shall be carried out on the basis of the norms elaborated by the Ministry of Public Finance within 90 days from the date of entry into force of this law and approved by the Government. ((4) The rules on the establishment of internal audit committees shall be carried out by the Ministry of Public Finance within 90 days from the date of entry into force of this Law and shall be approved by the Government. " --------- *) The present law was published in the Official Gazette of Romania, Part I, no. 953 953 of 24 December 2002. ** **) See Order of the Minister of Public Finance 38/2003 for the approval of the General Rules on the exercise of internal public audit activity, published in the Official Gazette of Romania, Part I, no. 130 130 and No. 130 bis of 27 February 2003, as amended. ***) Art. 8 ^ 1 has become by renumbering art. 9. ****) Art. 18 para. (2 ^ 2) became by renumbering art. 20 20 para. ((4). ---------