The consolidated financial situations of the Ministry of Health, Labor and Social Protection, compiled on December 31, 2017, do not present a reliable and truthful picture, being accompanied by significant and permanent distortions at the Ministry and its subordinate institutions, shows an audit report by the Court of Auditors that was examined in a meeting on July 5, IPN reports.
The audit covered the Ministry and 28 subordinate institutions where the Ministry acts as the founder. The audit showed the significant and permanent distortions were due to a number of factors. Among these are the non-registration of the used land (34.7m lei) and other administered assets (88.3m lei), differences in the value of real estate compared with the cadastral value (36m lei), keeping of a record of property that does not work, is demolished or over which the Ministry has no rights (16.1 million lei).
Elements of the accounting balance sheet were distorted by not respecting the methodological norms for including fixed assets and materials (23.7m lei) and arrears or debts (0.1m lei) in the accounting records. Also, the value of public property was diminished because the subordinate institutions didn’t appropriately estimate the value of asserts when they came into possession of these (5.2m lei) and made mistakes when calculating the depreciation of assets and the related costs (2.5m lei). These included non-observance of the requirements and mechanisms for registering public property (21.6m lei), documentary justification of consumption by including some property in the “costs” (0.1m lei), etc.
The distortions ascertained by the Court of Auditors earlier at three institutions managed by the Ministry, which weren’t removed before the annual reporting of the financial situations, significantly affected the consolidated financial situations reported on December 31, 2017 – by 43.4 million lei. The permanent nature of the deviations and the untruthful reporting of data led to the issuing of a contrary opinion about the consolidated financial situations of the Ministry of Health, Labor and Social Protection, compiled on December 31, 2017.
