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Law No. 84 Of 18 March 2003 On The Amendment Of The Government Ordinance No. 119/1999 On Public Internal Audit And Preventive Financial Control

Original Language Title:  LEGE nr. 84 din 18 martie 2003 pentru modificarea şi completarea Ordonanţei Guvernului nr. 119/1999 privind auditul public intern şi controlul financiar preventiv

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LEGE no. 84 84 of 18 March 2003 to amend and supplement Government Ordinance no. 119/1999 on internal public audit and preventive financial control
ISSUER PARLIAMENT
Published in OFFICIAL MONITOR no. 195 195 of 26 March 2003



The Romanian Parliament adopts this law + Article 1 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 ,, amend and supplement as follows: 1. The title of the ordinance shall read as follows: " ORDINANCE on internal control and preventive financial control " 2. Article 1 shall read as follows: "" ARTICLE 1 Purpose of Order This ordinance regulates internal control and preventive financial control at public entities and with regard to the use of public funds and the administration of public assets. " 3. Article 2 shall read as follows: "" ARTICLE 2 Definitions Within the meaning of this ordinance, the following terms and expressions shall be defined as follows: a) legal commitment-any act with legal effect, resulting from or could result in an obligation on public funds or public property; b) conformity-characteristic of an operation, of acts or administrative acts produced within a public entity to correspond to the policy expressly assumed in that field by the entity concerned or by an authority superior, according to the law; c) preventive financial control-the activity by which the legality and regularity of the operations carried out on account of public funds or public patrimony are verified, before their approval; d) internal control-all forms of control exercised at the level of the public entity, including internal audit, established by the management in accordance with its objectives and legal regulations, in order to ensure the administration of funds economically, efficiently and effectively; it also includes organisational structures, methods and procedures; e) delegated controller-public official of the Ministry of Public Finance, who exercises delegated preventive financial control powers, independently, according to the present ordinance; f) commitment credit-the maximum limit of expenditure that can be committed during the budget year, within the approved limits; g) budget credit-the amount approved by the budget, representing the maximum limit until which can be ordered and make payments during the budget year for the commitments contracted during the budget year and/or from previous exercises for actions multiannual, respectively they can engage, order and make payments from the budget for the other actions; h) economicity-minimizing the cost of resources allocated to achieve the estimated results of an activity, maintaining the proper quality of these results; i) effectiveness-the degree of achievement of the objectives scheduled for each of the activities and the ratio of the projected effect to the actual result of the activity j) efficiency-maximizing the results of an activity in relation to the resources used; k) public funds-amounts allocated from the state budget, local budgets, state social insurance budget, budgets of special funds, state treasury budget, budgets of autonomous public institutions, budgets of publicly funded institutions fully or partially from the state budget, the state social insurance budget and the budgets of special funds, as the case may be, the budgets of public institutions fully financed from their own income, the budget of funds from external loans or guaranteed by the State and whose reimbursement, interest and other costs are ensure from public funds, the budget of non-reimbursable external funds, external loans contracted or guaranteed by local public administration authorities, internal loans contracted by local public administration authorities, as well as from budgets of public institutions fully or partially funded by local budgets; l) inspection-verification carried out on site, for the purpose of finding possible deviations from legality and taking measures to protect public funds and public patrimony and to repair the damage caused, as the case may be; m) public entity-public authority, public institution, company/national company, autonomous direction, commercial company in which the state or an administrative-territorial unit is a majority shareholder, with legal personality, which use/administer public funds and/or public patrimony; n) public institution-Parliament, Presidential Administration, ministries, other specialized bodies of public administration, other public authorities, autonomous public institutions, as well as institutions subordinated to them, regardless the way they are financed; o) legality-characteristic of an operation to comply with all the legal provisions applicable to it, in force at the time of its performance; p) operation-any action with financial effect on public funds or public assets, regardless of its nature; q) opportunity-characteristic of an operation to adequately serve, in given circumstances, the achievement of objectives of the assumed policies; r) authorising officer-person empowered by law or by delegation, according to the law, to order and approve operations; s) 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. The rights and obligations of the state and administrative-territorial units refer to both public and private assets of the state and administrative-territorial units; t) person designated with the exercise of own preventive financial control-person within the specialized compartments, appointed by the head of the public entity for the exercise of own preventive financial control or person who perform this award on the basis of contract, under the law; u) operation project-any document intended to carry out an operation, in the form prepared for its approval by the competent authority, according to the law; v) regularity-characteristic of an operation to comply with all aspects of the principles and procedural and methodological rules applicable to the category of operations to which it belongs. " 4. In paragraph 1 of Article 10, the letter d) shall read as follows: "" d) the ordering of expenditure; ' 5. In paragraph (1) of Article 10, the letters e ^ 1 shall be inserted after letter e)-e ^ 4) with the following contents: " e ^ 1) the establishment of public revenues, regarding the authorization and establishment of collection titles; e ^ 2) reduction, staggered or cancellation of collection titles; e ^ 3) setting up the own resources of the European Union budget, representing Romania's future contribution to this body; e ^ 4) the recovery of the advanced amounts and which subsequently became undue; " 6. Paragraph 2 of Article 10 shall read as follows: " (2) Depending on the specificity of the public entity, its leader may decide to exercise preventive financial control over other types of operations projects than those provided in par. ((1). ' 7. Article 12 shall read as follows: "" ARTICLE 12 Organisation of preventive financial control (1) The Ministry of Public Finance is the authority to coordinate and regulate preventive financial control for all public entities. (2) Preventive financial control shall be organized and exercised by competent authorities, in a unified manner, according to the provisions of this ordinance and of the normative acts issued in its application. (. Preventive financial control shall be organised and exercised in the following forms: a) own preventive financial control, to all public entities and to all operations with financial impact on public funds and public patrimony; b) delegated preventive financial control, to the main authorising officers of the state budget, to the state social insurance budget, as well as to the budget of any special fund, to the National Fund and to the funds implementation agencies community, as well as other high-risk public entities, through delegated controllers of the Ministry of Public Finance. (4) Preventive financial control will gradually integrate into the sphere of managerial responsibility, a process to be completed by the date of Romania's accession to the European Union, as the management control will ensure the elimination of risks in public funds management. The achievement of this level will be assessed by the internal public audit of the Ministry of Public Finance. " 8. Article 13 shall read as follows: "" ARTICLE 13 Organisation of own preventive financial control (1) Public entities, through their leaders, have the obligation to organize their own preventive financial control and the record of commitments within the accounting department. (2) The heads of public entities have the obligation to establish the operations projects subject to preventive financial control, according to art. 10, supporting documents and their circuit, in compliance with the legal provisions. ((3) The records of the commitments shall be organized, kept, updated and reported according to the methodological norms approved by order of the Minister of Public Finance. (4) The Ministry of Public Finance shall organize its own preventive financial control and for operations on the state treasury budget, operations on public debt and other operations specific to the Ministry of Public Finance (5) The own preventive financial control shall be exercised, by visa, by persons within the specialized compartments, designated in this regard by the head of the public entity. The act of appointment will also include the limits of competence in the exercise of preventive financial control. Persons designated to carry out this activity are other than those initiating the operation subject to the visa. ((6) The appointment, suspension, dismissal or change of personnel carrying out activities of own preventive financial control shall be made by the head of the public entity, with the consent of the superior public entity, and in the case of public entities in which the position of principal authorising officer of the state budget, the state social insurance budget or the budget of any special fund is exercised, with the consent of the Ministry of Public Finance. Persons designated with the exercise of their own preventive financial control activity must have the professional skills required by this activity. They will comply with a specific code of professional norms, developed by the Ministry of Public Finance, which will also include the conditions and uniform criteria that public entities must comply with in case of appointment, suspension, dismissal or to change the staff operating this activity. (7) By internal decision of the head of the public entity, persons appointed to carry out their own preventive financial control may benefit from an increase in labor complexity of up to 25%, applied to the monthly gross basic salary. (8) The evaluation of the activity of the person carrying out preventive financial control activities shall be done by the head of the public entity, with the consent of the public entity that endorsed the appointment, annually, by rating, based on the information contained in the reports of the internal public audit and the reports of the Court of Auditors, where appropriate. (9) The Ministry of Public Finance will develop methodological norms on the general framework of the duties and exercise of their own preventive financial control. Also, the Ministry of Public Finance will endorse specific methodological norms on the organization and exercise of its own preventive financial control, elaborated by the main authorising officers of the state budget, of the insurance budget state social, budget of any special fund, as well as for the operations of the National Fund and implementing agencies that run community funds. (10) The Ministry of Public Finance will coordinate the system of professional training of persons designated to carry out preventive financial control. " 9. Paragraph 5 of Article 14 shall read as follows: " (5) Persons in the right to exercise their own preventive financial control shall, according to the law, respond to their fault, to the legality, regularity and classification within the limits of the approved budgetary commitments, in respect of the operations for which they have granted their own preventive financial control visa. " 10. Paragraph 2 of Article 15 shall be repealed. 11. In Article 16 (3), letter a) shall read as follows: "" a) the types of operations whose projects are subject to delegated preventive financial control; " 12. Paragraph 6 of Article 16 shall read as follows: " (6) The delegated controllers shall operate at the headquarters of the public institutions to which they were appointed. Public institutions referred to in par. (2) provide the controller/controllers delegated/delegated the necessary working space and equipment, as well as the cooperation of their staff, in particular the personnel assigned to exercise their own preventive financial control, for the performance in good conditions of delegated preventive financial control tasks. '; 13. Article 17 shall read as follows: "" ARTICLE 17 Delegated preventive financial control visa (1) Operations that, according to art. 16 16 para. ((3) and (4), subject to the delegated preventive financial control, shall be subject to the approval of the authorising officer only accompanied by the delegated preventive financial control visa. (2) The delegated preventive financial control visa shall be granted or refused in writing on the typified form, and shall bear the signature and personal seal of the competent delegated controller. (3) The persons entitled to exercise the delegated preventive financial control shall respond, according to the law, to their fault, for the legality, regularity and classification within the limits of the approved commitment appropriations and budget appropriations, in respect of operations for which they granted the visa. (4) Before issuing a visa refusal, the delegated controller shall inform, in writing, of its intention to authorise the authorising officer, stating the reasons for refusal. (5) 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 on the case. For the formulation of the neutral opinion, an ad hoc commission consists of 3 members of the Corps of delegated controllers, by decision of the chief financial controller. (6) The neutral opinion shall be motivated and made in writing and shall have an advisory role, the final solution being the exclusive competence of the delegated controller, in accordance with the principle of the independent exercise of the powers of preventive financial control delegate. " 14 paragraphs 3 and 4 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. ((4) 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. (4) In exceptional cases the delegated controller has the right to extend the period provided in par. ((2) with a maximum of 5 working days, on the basis of a reference of justification which it is required to transmit immediately to the information to the chief financial controller and the authorising officer. " 15. In Article 21 (1), points a) and d) shall read as follows: " a) the exercise of delegated preventive financial control over the operations projects of the authorising officer, in accordance with the appointment order and the methodological norms approved according to this ordinance; ........................................................... d) the formulation of advisory opinions, at the request of the authorising officer in addition to which he is appointed or at the request of the Minister of Public Finance, as well as on his own initiative, in respect of conformity, economy, effectiveness the efficiency of some operations or draft normative acts. " 16. Article 21 (1), after point d), insert letter d ^ 1) with the following contents: "d ^ 1) monitoring and methodological guidance of own preventive financial control;" 17. In Article 21, paragraph 6 shall read as follows: " (6) The evaluation of the activity of the delegated controller is made annually by qualifiers, based on the information contained in the annual reports on the activity of the delegated controllers, the reports of the internal public audit structures Public and in the Court of Auditors reports. The annual ratings received by each delegate controller shall be kept for the duration of the performance of the duties by him. The Minister of Public Finance immediately dismissed the delegate controller who recorded the "insufficient" rating or, 3 times in a row, the "satisfactory" rating. " 18. Paragraph 1 of Article 23 shall read as follows: "" ARTICLE 23 The body of delegated controllers (1) The body of the delegated controllers shall be organized as a distinct compartment in the structure of the Ministry of Public Finance, at the central and territorial level, and shall include all the delegated controllers. " 19. In Article 23 (8), letter c) shall read as follows: " c) ensure the formulation of neutral opinions, according to the provisions of art. 17 17 para. ((5); ' 20. in Article 23 (8), the letter g ^ 1 shall be inserted after point g) with the following contents: "g ^ 1) elaborates the annual national report on preventive control, which it presents for debate to the Government;" 21. Article 25 shall read as follows: "" ARTICLE 25 Authorization to carry out operations for which the preventive financial control visa is refused (1) An operation for which the preventive financial control visa has been refused can be carried out by the authorising officer on his own responsibility, only if this does not exceed the approved budget credit. The authorising officer may decide to carry out the operation only on the basis of an internal decision, issued in written form, ordering the operation on its own responsibility. A copy of the internal decision shall be sent to the public internal audit department of the public entity and to the delegated controller, as appropriate. (2) In all cases where, as a result of a refusal of a preventive financial control visa, the heads of legal entities have, under the conditions provided by this ordinance, the performance of the operation on their own responsibility, the person designated to carry out the own preventive financial control is required to inform the Court of Auditors, the Ministry of Public Finance and, as the case may be, the superior hierarchical body of the public institution, only in this situation exonerated from liability. (3) For operations that are subject to the delegated preventive financial control of the Ministry of Public Finance, the refusal of the own preventive financial control visa makes the draft operation cannot be subject to delegated preventive control. In these circumstances the authorising officer will ask the delegated controller to formulate an advisory opinion. The authorising officer will consider the viewpoint of the delegated controller, expressed in the advisory opinion, and will decide under the conditions provided in par. ((1). (4) In all cases where, as a result of a refusal of a delegated preventive financial control visa, the heads of legal entities have, under the conditions provided for by this ordinance, the conduct of the operation on their own responsibility, the controller delegate is required to inform the Court of Auditors and the Ministry of Public Finance in writing. ((5) The documents concerning the projects of operations subject to preventive financial control, which have not been targeted, can only be approved with the assumption of responsibility of the authorising officer. ((6) The operations carried out on the sole responsibility of the authorising officer shall also be recorded in an off-balance-sheet account. " 22. 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) failure by the head of the public entity to organize the own preventive financial control and the record of commitments, according to the provisions of art. 13 13 para. ((1); b) 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); c) submission for approval to the authorising officer of the operations projects without a preventive financial control visa; d) exceeding the deadline provided in art. 18 18 para. ((2)-(4); e) non-compliance with 21 21 para. ((5); f) issuance of a visa refusal without motivation, according to art. 24 24 para. ((2); g) non-compliance with 25 25 para. ((2); h) non-compliance with 25 25 para. ((5); i) non-compliance with 25 25 para. ((6). ' 23. Article 33 shall read as follows: "" ARTICLE 33 Sanctioning contraventions The contraventions provided in art. 32 lit. a), b) and d)-i) shall be sanctioned with a fine of 30,000,000 lei to 50,000,000 lei, and the contravention provided in lett. c), with a fine from 10,000,000 lei to 20,000,000 lei. " 24. Article 34 shall read as follows: "" ARTICLE 34 Finding contraventions, establishing and enforcing fines, remedies, updating the level of fines (1) The finding of contraventions and the application of sanctions shall be made by: a) persons with inspection duties within the Ministry of Public Finance, for the contraventions provided in art. 32 32; b) controllers within the Corps of delegated controllers, for the contraventions provided in art. 32 lit. a) and h). (2) The level of fines provided for in art. 33 is updated by Government decision, in relation to the inflation rate. (3) Fines provided as sanctions for committing the contraventions referred to in art. 32 can be applied to both individuals and legal entities. (4) Against the minutes of finding contraventions and application of sanctions, drawn up according to the competences established in 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, is 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, approved with amendments and additions by Law no. 180/2002 ,, as amended. 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 be repealed. 26. In the order of the phrase the budget commitments shall be replaced by the term budgetary appropriations or commitment appropriations, as the case may be. + Article 2 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 preventive financial control. + Article 3 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 , 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 December 12, 2002, in compliance with the provisions of art 74 74 para. (2) of the Romanian Constitution. SENATE PRESIDENT NICOLAE VACAROIU This law was adopted by the Chamber of Deputies at its meeting on February 25, 2003, in compliance with the provisions of 74 74 para. (2) of the Romanian Constitution. CHAMBER OF DEPUTIES PRESIDENT VALER DORNEANU Bucharest, March 18, 2003. No. 84. -------