Advanced Search

Law No. 5 Of 10 July 1970 Concerning The Material And Monetary Assets Management, Organisation And Functioning Of Financial Control

Original Language Title:  LEGE nr. 5 din 10 iulie 1970 privind gospodărirea mijloacelor materiale şi băneşti, organizarea şi funcţionarea controlului financiar

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$40 per month.
LEGE no. 5 5 of 10 July 1970 on the management of material and money means, the organization and functioning of financial control
ISSUER GREAT NATIONAL ASSEMBLY
Published in OFFICIAL BULLETIN no. 80 80 of 10 July 1970



+ Chapter 1 General provisions + Article 1 The leaders of the socialist organizations bear the responsibility for organizing their entire activity and obtaining an economic efficiency in which they mobilize the entire collective of employees, taking measures for the exemplary achievement of the tasks of the plan, the continuous lifting of the quality of the products, the rigorous fulfillment of the contractual obligations, the realization of planned money accumulations, the observance of the + Article 2 The employees, each at their place of work, in double quality that they have of owners of the means of production and producers of material values, bear the responsibility for fulfilling their obligations and have the duty to bring their full contribute to the full and timely achievement of all the tasks of the organisation in which they work + Article 3 The managers from the economic, budgetary units and their higher hierarchical bodies are obliged to ensure the economic management of the material and money means and to defend the integrity of the public property, in compliance with the the legal provisions in force concerning: a) the organization of reception and self-reception activity upon receipt and delivery of materials, materials and products; b) storage, preservation and handling of existing material means in the socialist organization for the needs of production, investments or other activities, preventing their degradation, destruction, loss or wastage; and the safekeeping of money funds; c) employment or promotion of personnel on functions related to the management and control of material and monetary means, taking into account the professional training, fairness, honor and moral-political qualities of the latter; d) to regularly carry out the operations of periodic inventory of materials, materials, products and other goods in order to ascertain in the presence of their existence; e) the organization of technical-operative and accounting records and their correct and up-to-date management, in order to reflect at any time and accurately the existence and movement of material and money means; f) keeping, handling and carefully using the forms with special regime, so that the operations through which changes in the patrimony are made to be done under a strict control; g) organization of the system of guarding the places of storage of goods of any kind, their entrances and exits from the units being made under the regime of strict supervision. + Article 4 The leaders of the socialist organizations have the obligation to report periodically to the collective management bodies in the unit, as well as to the higher hierarchical bodies, the problems that arise in the execution of the economic and financial plan, in the management material and money means, as well as the results of the controls carried out and + Article 5 The activity of the leaders of the socialist organizations will be subject to systematic control by the higher hierarchical bodies, as well as from the control bodies, following the performance of their tasks, the strengthening of the spirit liability in their work, the determination of an attitude of exigency in the administration of heritage. + Article 6 Financial control may not be exercised by the person who by the nature of his work participates in the act or operation subject to control, except in cases where the legal provisions permit it. Those who have been convicted of crimes against the public property or against personal or private wealth cannot be employed or held in financial control positions. + Chapter 2 Own control of socialist organisations + Article 7 The leaders of the socialist organizations have the full responsibility for organizing the control inside the units, which will ensure their knowledge and permanent pursuit of the management of the material and money means entrusted. + Article 8 The driver, at the level of each organizational step, is obliged: -to exercise direct control over the activity of suborder compartments and unannounced in the places where the material values in the unit are preserved and circulated; -establish for each framework with a function of subordinate management the tasks of operational hierarchical control, the conditions for their exercise and their responsibilities; -to develop self-control of employees in current work on the operations they carry out; -to organize preventive financial control aimed at preventing non-compliance with the legal provisions regarding the management of material and money means; + Article 9 The control of the management activity of the patrimony aims at -respecting the legality and ensuring a rigorous order in the use of funds; -identification and mobilization of reserves; prevention, discovery and recovery of damage to the public property; -holding those guilty of violating the laws and prejudicing the obstesc property. + Article 10 Preventive financial control has the task of stopping-before performing-illegal, unreal and non-economic operations, preventing the violation of legal provisions, immobilization of funds and damage to the public property. They are subject to preventive financial control the operations from which they are born, modify or extinguish rights or patrimonial obligations between a socialist organization and other legal entities or individuals, as well as other operations that bring changes in the patrimony of the organizations, established by decision of the Council of Ministers. + Article 11 Preventive financial control is organized within the financial-accounting department at: a) ministries, other central bodies, executive committees of the popular councils, as well as the other budget units republished and local; b) the centers and other economic organizations assimilated to them, which operate on the basis of the status of c) county and inter-county units, independently of subordination; d) enterprises and other organizations operating on the principle of own economic management, independent of subordination. At the units with internal economic management the preventive financial control is organized according to the competences granted to them by the superior hierarchical body. + Article 12 At the plants, combined, groups of plants, trusts and enterprises, preventive financial control can be organized in the form of services or offices subordinated to the head of the financial-accounting department, with the exclusive task of carrying out this control. + Article 13 The preventive financial control shall be exercised by the head of the financial-accounting department and the employees subordinated to it, legally empowered. The employees referred to in the preceding paragraph shall pursue, within the framework of their duties, whether the operations subject to this control fall within the legal provisions. They also have the right to exercise preventive financial control over the economy and reality of operations. + Article 14 The head of the financial-accounting department has the obligation to refuse motivated, in writing, to target documents, if the operations are illegal or if they find that they are non-economic or unreal. If the head of the financial-accounting department refuses to visit the documents for preventive financial control, the operations will be executed only on the basis of the decision of the collective management body. In urgent situations, the head of the organization may order in writing, on his own responsibility, the operation in question. + Article 15 It shall be prohibited to accountants, managers and any other employees to execute or register operations subject to preventive financial control, if those documents are not covered by those in law to exercise this control and do not have the approval competent bodies. + Chapter 3 Internal financial control + Article 16 The internal financial control has the task to carry out the management of the fund manager on the management of the material and money means, verifying compliance with the legal norms regarding: a) the existence, integrity and preservation of goods of any kind; b) the use of materials and money; c) making receipts and payments of any kind; d) making receptions and inventory; e) employment, guarantee, obligations and responsibilities of managers; f) organization and exercise of preventive financial control; g) management of the accounting records and the reality of the data entered in balance sheets and execution accounts. In the exercise of the substantive management control, the internal financial control bodies have the right to carry out unannounced controls, alone or with the support of the militia or other organs, in warehouses, shops, construction sites, markets, on public roads and in other places where material and monetary means are kept or circulated. The objectives of the substantive management control shall be determined by the decision of the Council of Ministers. The internal financial control bodies will also be able to carry out checks of an economic-financial nature, if the tasks of the fund manager are fulfilled. + Article 17 Fund manager control shall be exercised at least once a year at all organisations and management. The ministries, other central bodies and executive committees of the county folk councils and the city of Bucharest, depending on the volume and nature of the operations, as well as the frequency of deviations, establish, with the agreement of the Ministry of Finance, criteria for verification at periods of more than one year, but not later than a date of two years, of budgetary units or management of less important material values and which are well-managed. + Article 18 Internal financial control shall be organised at: a) the ministries and other central bodies for the substantive management control of the directly subordinated economic and budgetary units, of their own management, as well as of the public organizations they subsidize or guide, established by The Ministry of Finance. At the budgetary units subordinated to the ministries or other central bodies, the internal financial control shall be organised according to the needs, for the verification of the subunits and of its own management; b) the centers and other economic organizations assimilated to them that operate on the basis of the status of the industrial plant, as well as to the county or inter-county units, for the substantive management control of subordinate units and of the Own. At enterprises and other organizations, internal financial control may be organized, as required, with the agreement of the superior hierarchical body, for the verification of subunits and its own management: c) executive committees of the county folk councils and of the city of Bucharest, for the substantive management control of subordinated economic and budgetary units, as well as of their own management. The substantive management control of the agricultural production cooperatives is exercised according to the legal norms in force. + Article 19 At commercial organizations and at units with commercial activity subordinated to ministries and other central bodies, management reviewers operate, with the task of inventory and control over management, under the conditions and at established periods by the Ministry of Finance together with central stakeholders. + Article 20 Internal financial control of the central administration of ministries, other central bodies, industrial plants and other economic units assimilated to them, county and inter-county units, enterprises and institutions subordinated to They, as well as from the executive committees of the county folk councils and the city of Bucharest, will function as a subordinate body both to the leadership of the socialist organization and to the Financial Ministry. The appointment, the change in office and the dissolution of the employment contract of the heads of the internal financial control departments shall be made by the collective management body of the respective socialist organization, with the agreement: The Ministry of Finance, in the case of ministries, other central state bodies and executive committees of the county folk councils and the city of Bucharest; Territorial control and revision directions of the Ministry of Finance, in the case of plants and other economic organizations assimilated to them, county and inter-county units, enterprises and budgetary institutions, each within their radius of activity. + Article 21 The Ministry of Finance or, as the case may be, the territorial directions of control and revision are in law, when it finds that the activity of the heads of the internal financial control compartments is not carried out in accordance with the legal provisions the agreement given to their appointment. From the date of withdrawal of the agreement, the quality of head of the internal financial control department ceases, the measure taken attracting its change from office. + Article 22 At the Ministry of Armed Forces, the State Security Council and the Ministry of Internal Affairs, the appointment, the change in office and the dissolution of the employment contract of the heads of internal financial control compartments shall be made by collective management of the organizations in which it operates, and at subordinate units, and with the agreement of the superior hierarchical organ + Article 23 The head of the internal financial control department participates in law at the meetings of the collective management body of the socialist organization in which it operates, when economic-financial and defense problems of the integrity of the property are debated obstesc. + Article 24 In order to capitalize on the control findings, the head of the internal financial control department shall submit to the management of the socialist organization in which the results of the checks carried out work, together with the measures proposed to remove the deficiencies reported and to hold accountable those who enjoyed misconduct or damaged the obstesc avut. The leaders of the socialist organizations who have ordered control and of the controlled ones are obliged, within the competence and of the legal deadlines: a) take measures, according to the legal provisions, based on the findings and proposals of the control bodies, for the removal and prevention of deviations and to follow the full and timely application of these measures; b) take measures for the application of disciplinary and contravention sanctions, as well as for the establishment of material liability, under the conditions and at the deadlines provided by the legal provisions; c) take measures to reduce, under the conditions of the legal provisions in force, tariff salaries or for the total or partial reduction of the material incentives of employees who have not fulfilled their tasks or are guilty of deviations found; d) ensure the submission to the prosecutor of the acts concluded in case of finding of facts provided by the criminal law, within the deadlines and conditions established by the legal provisions. The measures shall be taken no later than 30 days from the date of registration of the control act at the organization in order to take them, if other deadlines are not fixed by legal provisions. The leaders of socialist organizations are obliged to communicate to the bodies that ordered the verification, at the fixed deadlines, the measures taken as a result of the control and the results obtained from their application If no measures have been taken according to the legal provisions, the head of the internal financial control department shall notify the collective management body of the organization in which it operates. If this body does not take the legal measures to establish the material liability and recover the damage to the public property, the head of the internal financial control department is obliged to notify in writing, within 5 days, on the head of the higher hierarchical Heads of internal financial control compartments from socialist organizations provided for in art. 20 have the obligation in such cases to notify the Ministry of Finance. The head of the superior hierarchical body that has been notified will ensure, within no more than 15 days, the research of those reported and will take the measures provided for by the legal provisions. The Ministry of Finance will aim to resolve those notified to be made by the head of the higher hierarchical body, within the established deadline and legal numbers. + Article 25 Ministers, heads of other central bodies, chairmen of the executive committees of the county folk councils and of the city of Bucharest and the leaders of the subordinate socialist organizations, within which they organize and operate financial control, are obliged: a) ensure the organization and functioning of preventive financial control and internal financial control in accordance with the legal provisions in force; b) to ensure, within the indicators of the approved labor plan and salaries, the need for posts for internal financial control, corresponding to the fulfilment of the legal control tasks. The establishment in the nomenclature of the control functions and the salary levels is done by the bodies in law, with the consent of the Ministry of Finance; c) to frame the financial control compartments, according to the needs, with economic, technical or legal professionals, appropriate from a professional point of view, of honor and correctness; d) to periodically debate, in meetings of the collective management body, the findings of the financial control bodies, establishing, within the competence, the measures to be taken to improve the activity of the subordinate units; e) to analyze within the collective management body, at least once a year, the activity of preventive financial control and internal financial control, setting out the necessary measures to improve these activities; f) to ensure, through the heads of the financial-accounting compartments, respectively through the heads of the internal financial control compartments, the guidance and verification of the preventive financial control activity and the internal financial control, in the entire their organizational system; g) to use the internal financial control bodies only to carry out their legal duties, prohibiting their use in the execution of other tasks; h) to inform the Financial Ministry of the findings of internal financial control, under the conditions and at the deadlines set by it. + Chapter 4 Control of Ministry of Finance and Banks + Article 26 The Ministry of Finance, as a representative of the financial interests of the state, has the task to ensure the coordination and unitary orientation of financial control on all the steps of the economy, regarding the management of material and monetary means, ensure the unity of conception, action and method in this field of activity. For this purpose: a) sets out the main objectives of the financial control activity on the basis of the tasks in party and state documents and the merit of the execution of the plan and the state budget, depending on the needs of each period; b) responds to the coordination of the financial control activity at the central level and in each county and collaborates with other control bodies, aiming to avoid parallelisms and overlaps; c) develop uniform, binding methodological norms on: coordination, organization and exercise of financial control, preparation of control acts, taking measures to prevent and eliminate deviations from the provisions legal and holding those guilty to account, as well as reporting the results of the control; d) guide and verify the activity of the bodies that, according to the legal norms, exercise powers of financial control and organize the exchange of experience between them; e) ensure the unitary training of the entire internal financial control apparatus; f) organizes joint controls, in mixed teams consisting of their own bodies, banks, internal financial control and other bodies, ensuring that complex economic-financial and management checks are carried out socialist in whose activity important deficiencies are manifested. + Article 27 The Ministry of Finance exercises control over the economic and financial activity of the ministries, the other central bodies of the state administration, the executive committees of the county folk councils and the city of Bucharest, as well as the their subordinate organisations, verifying: a) the application of the economic-financial and foreign provisions of the laws, decrees and decisions of the Council of Ministers, following the observance and defence of the financial interests of the state; b) preparation and execution of financial plans; c) planning and realization of the cost price; d) the phenomena and aspects that arise in the execution of the plan and the state budget; e) foreign trade operations and service benefits, as well as any other operations resulting from rights or foreign exchange obligations; f) the realization of revenues and the performance of own expenses by the ministries, the other central bodies and the county folk councils and the Bucharest municipality. It also exercises control over cooperative and public central organizations, as well as their subordinate organizations, in terms of meeting obligations to the state budget, the use of funds received from the state, as well as compliance with financial discipline, under the law. At the same time, g) analyze the situation of damage caused to the public property, in collaboration with the other interested bodies and propose overall measures to prevent and recover damages; h) supports the financial-accounting compartments of the socialist organizations in financial and accounting problems; i) inform the party and state leadership, as well as the local bodies, of the main findings of financial control. + Article 28 The Ministry of Finance shall have the right to: a) give the socialist organizations mandatory provisions for: -the introduction into the financial or foreign exchange plans of the corresponding changes, when additional income resources or possibilities to reduce expenses are identified, resulting from non-compliance with the legal provisions; -rectification or completion of accounting balance sheets, according to the legal norms; -diminishing, under the legal provisions in force, the tariff salaries of employees who have not fulfilled their tasks; -recovery of damage to the obstesc property; -removal of any other deviations from the legal norms of an economic-financial nature. The mandatory provisions relating to the recovery of damages shall be carried out by those in law by issuing provisions of detention or other legal remedies, as the case may be; b) to suspend the execution of economic-financial measures taken by socialist organizations, when they contravene the legal provisions; c) to respect the financing in cases where it finds the illegal spending of funds in lei or in foreign currency, waste or bad management, or when the socialist organizations do not present, according to the law, the accounting accounts; d) order the blocking of funds intended to pay the money rights of the technical-administrative staff with management positions, in the amount and under the conditions provided by the rules in force, if they find deviations from the provisions legal in the management of material and money means. The body that ordered the blocking is obliged to set deadlines within which to remedy the deviations and to prevent their enjoyment in the future. If the deviations are not removed within the established deadlines, the hierarchical body superior to the one who ordered the blocking decides on the payment of the blocked e) order the blocking of foreign exchange funds when they find deviations from the law in their use; f) to apply the financial sanctions provided for by the legal provisions in case of non-compliance with financial or foreign exchange g) to take measures for the application of disciplinary sanctions to those who have enjoyed deviations from the legal provisions; h) to convene the management of the verified or hierarchical higher organizations, as the case may be, to examine the conclusions and to establish the measures to be taken as a result of the i) to use, in limited time, in the controls they organize, technical and economic frameworks from the socialist organizations, made available by their leaders; j) to participate, through its delegates, at the meetings of the governing bodies of the socialist organizations in which economic-financial or defense problems of the socialist property are analyzed. The events in connection with the measures provided for in the letters a-g inclusive, except for the mandatory provisions referring to the recovery of the damage to the public property, shall be deposited with the body that ordered them and shall be solved by the Ministry Finances. + Article 29 The tasks of the Ministry of Finance on financial control, provided for in this Law, shall be carried out through the General Directorate of Control and Territorial Control and Revision directions, as well as through other specialized bodies, namely empowered by the Ministry of Finance. The general direction of the control is led by the inspector general, who has the rank of deputy of the ministry of finance. The tasks, operating rules and powers of the management of the territorial control and revision directions shall be established by the Ministry of Finance. + Article 30 The National Bank of the Socialist Republic of Romania, the Bank for Agriculture and Food Industry *, the Investment Bank and the Romanian Foreign Trade Bank, each in its sector of activity, exercises control in the right socialist organizations laws in force, following: a) the use, according to the destination established by the plan and with maximum efficiency, of the own funds, of the borrowed ones, as well as of those made available from the budget; b) realization and payment of state revenues; c) identification and mobilization of material and monetary reserves and bringing them into the economic circuit; d) the cooperative referral of the negative phenomena that arise in the realization of the economic and financial plan; e) support socialist organizations in preventing, liquidating deficiencies and improving economic-financial activity. The control is exercised closely related to the operations that the socialist organizations routinely carry out through banks in connection with: crediting the production and circulation of goods, the execution of the state budget house, the financing, the lending and settlement of investments, issuance of funds for payment of salaries and other specific tasks provided in banks ' statutes. In exercising control, banks also have the rights provided in art. 28. The powers to exercise these rights, as well as to resolve the events, shall be established by the boards of banks. Also, the boards of banks, with the agreement of the Ministry of Finance, will adapt to the specifics of the banking inspection the methodological norms provided in art. 26 lit. c. * According to art. IV of Decree no. 94/1971, published in the Official Bulletin no. 53 of May 1, 1971, the name "Agricultural Bank" of this law was replaced by "Bank for Agriculture and Food Industry". + Chapter 5 Obligations and liabilities in the exercise of control + Article 31 At the request of the authorized bodies to carry out financial control, employees of socialist organizations are obliged: a) to present for verification the values of any kind that they manage or have in storage; b) make available the plans, notices, records, correspondence and other documents necessary for the control, in compliance with the legal provisions on the preparation, handling, circuit and preservation of state secret documents; c) give data, verbal or written information, in relation to the objectives of the control; d) issue documents in original or certified copies. In case of issuance of documents in original, leave the organization checked compliant copies, certified by its management and by the financial control body; e) give the necessary support and ensure conditions for the proper conduct of control and for the preservation of documents. + Article 32 Staff with financial control powers shall be obliged to: a) to carry out the control according to the legal provisions in force and the methodological norms elaborated by Based on the empowerment they have for checking a socialist organization, financial control bodies can consult with any other legal entities or individuals documents related to the operations of the organization subject to verification and to require the necessary information, verbally or inscribed, in relation to these operations b) to record the findings in acts of control on the basis of accurate data and facts. The control acts shall be signed by those who carried out the control, the management of the controlled organization and its other employees, as the case may be. Any objections to the findings made shall be submitted in writing until the end of the check; c) to submit to the body in law, at the established deadlines, the control documents; d) to submit to the prosecutor the acts concluded in case of finding of facts provided by the criminal law, within the deadlines and conditions established by the legal provisions, who ordered control; e) to apply, according to the legal norms, contravention sanctions for deviations from financial discipline or other contravention sanctions, for which it has competence; f) to make proposals to the competent bodies, during and as a result of the control, on the measures to be taken to prevent and eliminate the deviations found, as well as to hold those guilty accountable; g) to guide and support the controlled organs in the specialized issues that are subject to verification. + Article 33 I answer, according to the legal, disciplinary, administrative or criminal norms, as the case may be, as well as a) leaders of socialist organizations and employees subordinated to them, when they do not comply with their obligations under the provisions of this law; b) the financial control bodies, when: --does not perform the checks according to the approved control plan -enroll in the data control acts or unaccurate or unaccurate facts; -works with superficiality, unsigning the violations from the legal provisions in force found on the occasion of the control and do not establish the responsibilities according to the legal norms; -have, by interpreting or misapplying the legal provisions in force, mandatory measures that cause damage; -do not draw up and submit, within the set deadlines, to the bodies in law, the control acts; -do not take or, as the case may be, propose measures to remedy the shortcomings and deviations recorded in the control acts, to recover the damage found and to hold those guilty liable, or do not pursue the fulfilment of the established measures. + Chapter 6 Final and transitional provisions + Article 34 Within 30 days from the entry into force of this law, the internal financial control posts that pass from the organizational system of some ministries and other central bodies, to the Ministry of Finance, will be established for the directions territorial control and revision thereof. + Article 35 Ministers, heads of other central bodies, chairmen of executive committees of the county and county councils of Bucharest and heads of subordinated socialist organizations are obliged to take measures, within 6 months on the date of entry into force of this Law, for the professional examination of the entire internal financial control apparatus, including the management reviewers. Depending on the results of the examination, measures will be taken to change the function of the creators or, as the case may be, for the dissolution of the employment contract. + Article 36 The Minister of Armed Forces, Chairman of the Security Council of the State, Minister of Internal Affairs and Presidents of the Boards of Banks, each for his sector of activity will elaborate, with the agreement of the days, instructions on own control and internal financial control, applying these provisions, depending on their organization laws. + Article 37 It is recommended to cooperative organizations and other public organizations that, starting from the provisions of this law, to establish, with the support of the Ministry of Finance, appropriate regulations on the management of material means and money, organization and functioning of financial control. + Article 38 This law shall enter into force within 30 days. On the same date, any provisions contrary to this law are repealed. -------------