The main irregularities ascertained by the Court of Auditors following audit missions conducted in October 2017 – September 2019 include the doubling of incomes and costs in reciprocal transfers, non-indication of buildings and land in accounting documents, inappropriate recording of state holdings in founded entities, non-recognition and inappropriate recording of debts. The information was presented by the Court’s president Veaceslav Untila in a meeting of the Parliament’s commission on economy, budget and finance that examined the Court of Auditors’ annual report on the management and utilization of public funds and property, IPN reports.
Veaceslav Untila said the Court’s audit consisted of 53 missions, 38 of which examined the financial situations, 11 missions focused on performance and four missions focused on compliance. Based on the findings and audit evidence, the Court formulated 38 opinions about the financial reports and 16 conclusions related to compliance and performance in the management of public funds. Of all the formulated opinions, six are favorable, 22 contain reservations, eight are opposing and two are cases when an audit opinion could not be stated.
“We focused mainly on the auditing of the central public authorities and subordinate institutions (226). We examined 168 local public authorities of the first and second levels and 72 state-owned and municipal enterprises, public institutions, autonomous public authorities and other recipients of public funds,” stated the Court’s president.
There were identified significant errors in the execution of the state budget, state social insurance budget and mandatory health insurance funds for 2017, opinions with reservations being formulated on these. The auditors also detected shortcomings related to the management of foreign assistance and allocated subsidies and underlined the imperfection of the recording and reporting framework in the budgetary system.
In order to improve institutional management and diminish eventual risks of misuse of public funds, the Court analyzed the errors identified in the reporting period and formulated 211 recommendations, all of these being discussed and accepted by the audited entities. However, the Court in the period issued the law enforcement agencies with materials about 13 audit missions with suspicions of fraud. There were started two criminal cases and issued three refusals to take legal action, while eight materials are being examined.
