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Law No. 191 Of 27 October 2011 Amending And Supplementing Law No. 672/2002 On Public Internal Audit

Original Language Title:  LEGE nr. 191 din 27 octombrie 2011 pentru modificarea şi completarea Legii nr. 672/2002 privind auditul public intern

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LEGE no. 191 191 of 27 October 2011 to amend and supplement Law no. 672/2002 on internal public audit
ISSUER PARLIAMENT
Published in OFFICIAL MONITOR no. 780 780 of 3 November 2011



The Romanian Parliament adopts this law + Article I Law no. 672/2002 on the internal public audit, published in the Official Gazette of Romania, Part I, no. 953 of 24 December 2002, as amended and supplemented, shall be amended and supplemented as follows: 1. Article 1 is amended and shall read as follows: "" Art. 1. -This law regulates the organization and exercise of internal public audit in public entities. " 2. In Article 2, letter a) is amended and shall read 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 fulfil its objectives, through a systematic and methodical approach, assess and improve the efficiency and effectiveness of risk management, control and governance processes; ". 3. In Article 2, after letter a), five new letters are inserted, letters a ^ 1)-a ^ 5), with the following contents: " a ^ 1) public authority-any state body or administrative-territorial units acting, under public power, to satisfy a legitimate public 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; a ^ 2) the general professional competence framework of the internal public sector auditor, hereinafter referred to as the general professional competence framework-comprises 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"; a ^ 3) Charter of the internal public audit-official document defining the purpose, objectives, organisation, powers, 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; a ^ 4) 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; a ^ 5) 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; ". 4. in Article 2, letters b) and c) shall be amended and shall read as follows: " b) 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; compliance with the 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; c) 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; ". 5. In Article 2, after letter c) two new letters are inserted, letters c ^ 1) and c ^ 2), with the following contents: " c ^ 1) 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 activities, for several local public entities, of 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 and conditions of the cooperation are agreed; c ^ 2) 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 authorized by law; ". 6. In Article 2, letter g) shall be amended and shall read as follows: " g) public entity-the public authority, the public institution, the national company, the autonomous direction, the commercial company to 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; '. 7. In Article 2, after letter h) a new letter, letter h ^ 1) is inserted, with the following contents: "h ^ 1) 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;". 8. In Article 2, letter i) is amended and shall read as follows: " i) 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; ". 9. In Article 2, after letter j) a new letter, letter j ^ 1) is inserted, with the following contents: "j ^ 1) 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);". 10. In Article 2, letter l) is amended and shall read as follows: "" l) the audit trail-the establishment of the information flows, duties and responsibilities relating thereto, and the way of archiving the complete supporting documentation, for all stages of an action, enabling, at the same time, the reconstruction of operations from the total amount to individual details and vice versa; " 11. In Article 2, after letter l), two new letters, letters m) and n) are inserted, with the following contents: "" m) Occupational Standard "Internal Auditor in the Public Sector"-document approved on the basis 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 n) associative structures of local public authorities, hereinafter referred to as associative structures-include the Association of Communes of Romania, the Association of Cities of Romania, the Association of Municipalities of Romania, the 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. " 12. In Article 3, paragraphs 1 and 2 shall be amended and shall read as follows: "" Art. 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. " 13. In Article 4, after letter b) a new letter, letter b ^ 1) is inserted, with the following contents: " b ^ 1) internal audit committees; '. 14. In Article 5 (2), the letter e) shall be amended and shall read as follows: "e) experts from other fields of activity, namely public accounting, legal, computer systems-3 persons;". 15. In Article 5 (2), after letter e) a new letter, letter f) is inserted, with the following contents: "f) a representative from the management of the associative structures of local public authorities." 16. In Article 7, paragraph 1 shall be amended and shall read as follows: "" Art. 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. " 17. in Article 8, letters f), g) and i) shall be amended and shall read as follows: " f) endorses the methodological norms specific to the 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; ...................................................................... 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; '. 18. In Article 8, after letter i) three new letters, letters i ^ 1)-i ^ 3) are inserted, with the following contents: "" i ^ 1) establishes the general framework of the cooperation agreement to ensure internal public audit work in local public entities; i ^ 2) guide local public entities and associative structures in the implementation of the cooperation system to ensure internal public audit work; i ^ 3) establishes, 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; ". 19. in Article 8, the letters j) and l) shall be amended and shall read as follows: " j) coordinate the recruitment system in the field of internal public audit, the system of national attestation of internal auditors in public entities, as well as their continuous vocational training system; ...................................................................... l) 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; '. 20. After Article 8, two new articles are inserted, Articles 8 ^ 1 and 8 ^ 2, with the following contents: "" Art. 8 8 ^ 1. -(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 public audit activity internally. (. 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. 8 8 ^ 2 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. Art. 8 ^ 2. -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. " 21. In Article 9, letter a) is amended and shall read 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 activity;" 22. In Article 9, after letter a) two new letters are inserted, letters a ^ 1) and a ^ 2), with the following contents: " a ^ 1) local public entities that cooperate to ensure the internal public audit activity shall 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; a ^ 2) to local public entities that have not constituted their own internal audit compartment or have not entered into cooperation to ensure internal audit activity, it can be ensured by internal auditors, individuals attested, on the basis of service contracts, according to the provisions of this law; ". 23. In Article 9, after letter b) a new letter, letter b ^ 1) is inserted, with the following contents: " b ^ 1) 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, based on a collaboration protocol; ". 24. In Article 10, paragraphs 1 and 2 shall be amended and shall read as follows: "" Art. 10. -(1) The internal public audit compartment shall be constituted distinctly under the direct subordination of 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. " 25. In Article 10, after paragraph (3), three new paragraphs are inserted, paragraphs 3 ^ 1-(3 ^ 3), with the following contents: " (3 ^ 1) The internal public audit department is 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. (3 ^ 2) 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. (3 ^ 3) The service contracts include the activities for the elaboration of the annual plans, namely the multiannual plans of the internal audit activity, the audit missions and their nature, depending on the volume of activity and the size the associated risks, so as to ensure the auditing of the activities covered by the internal public audit, as well as the number of internal auditors, taking into account the need to ensure the supervision function of the audit process internal. " 26. In Article 11, letter b) is amended and shall read as follows: "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;". 27. In Article 13, paragraph 1 shall be amended and shall read as follows: "" Art. 13. -(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. " 28. in Article 13 (2), points a) and c) shall be amended and shall read as follows: "" a) financial or financial activities carried out by the public entity at the time of the establishment of commitments until the use of funds by final beneficiaries, including funds from external financing; ...................................................................... c) the management of the patrimony, as well as the sale, pledging, concession or rental of goods from the private domain of the state or of the administrative-territorial units; ". 29. In Article 14, paragraph 1 shall be amended and shall read as follows: "" Art. 14. -(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. " 30. In Article 14, after paragraph 1, two new paragraphs are inserted, paragraphs 1 ^ 1 and 1 ^ 2, with the following contents: "" (1 ^ 1) 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. ((1 ^ 2) The projects of multiannual plans and annual internal public audit plans of local public entities where the activity is carried out on the basis of service contracts shall be elaborated in accordance with the provisions set out in par. ((1) and shall be approved by the head of the local public entity. " 31. In Article 14, paragraph 3 shall be amended and shall read as follows: "" (3) 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 exceptional internal public audit missions, not included in the annual plan, in the conditions provided in art. 15 15. " 32. In Article 16, paragraph 1 shall be amended and shall read as follows: "" Art. 16. -(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. " 33. Article 16 (2) shall be repealed. 34. In Article 17, paragraphs 2 to 4 shall be amended and shall read as follows: " (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. 35. In Article 17, after paragraph 4, a new paragraph (4 ^ 1) is inserted, with the following contents: "(4 ^ 1) After approval, the recommendations contained in the internal public audit report shall be communicated to the audited structure." 36. In Article 18, paragraph 1 shall be amended and shall read as follows: "" Art. 18. -(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. 37. In Article 18, after paragraph (2), five new paragraphs are inserted, paragraphs 2 ^ 1 to 2 ^ 5, with the following contents: " (2 ^ 1) 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. ((2 ^ 2) 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. (2 ^ 3) 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. ((2 ^ 2); 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. (2 ^ 4) For internal auditors holding a certificate in internal audit issued by relevant institutions with international recognition, respectively: Institute of Internal Auditors of the United States of America, 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. ((2 ^ 3) lit. a). (2 ^ 5) The certificate of attestation loses 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 participate in vocational training courses in the framework of the continuing vocational training program. " 38. in Article 18, after paragraph 4, a new paragraph (5) is inserted, with the following contents: "(5) 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." 39. Article 19 (7) shall be amended and shall read as follows: " (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. " 40. In Article 19, after paragraph 7, two new paragraphs are inserted, paragraphs 8 and 9, with the following contents: " (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 assessed 41. In Article 21, letter a) is amended and shall read as follows: " 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. 9 lit. a); ". 42. In Article 22, letter a) is amended and shall read as follows: " a) by authorized representatives of the Ministry of Public Finance, for the contraventions provided in art. 21 21; '. + Article II Internal audit committees set up in accordance with the provisions art. 8 ^ 1 para. ((1) of Law no. 672/2002 on the internal public audit, as amended and supplemented, shall work from 1 January 2012. + Article 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. + Article 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. + Article V (1) The 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. + Article VI Law no. 672/2002 on the internal public audit, published in the Official Gazette of Romania, Part I, no. 953 of December 24, 2002, with subsequent amendments and completions, as well as with those 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 Romanian Parliament, in compliance with the provisions of art. 75 75 and art. 76 76 para. (2) of the Romanian Constitution, republished. CHAMBER OF DEPUTIES PRESIDENT ROBERTA ALMA ANASTASE SENATE PRESIDENT MIRCEA-DAN GEOANA Bucharest, October 27, 2011. No. 191. -------