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The Court of Accounts published the Annual Report of the audit activity

September 16, 2020 views 686


Annual Report  2019

The Court of Accounts of the Republic of Moldova (CoARM), according to the legal provisions, sent to the Parliament the Report on the formation, management and use of the financial resources and public patrimony in 2019. The Report presents the results of all the performed audits during September 2019 - September 2020. The Report presents the main audit findings, conclusions and recommendations, stated in the context of the external public audit activity aimed to improve the management of public money.

For the first time, the first part of the Report contains a structured analytical component, based on the results of all audit missions performed during the reporting period. The second part of the Report contains the summaries of the audits, with the subsequent findings and recommendations. This structure facilitates the understanding of audit findings not only at a technical level, by specialists in the field, but also by the general public.

The information, presented each year in the Annual Report of the Court of Accounts, has several objectives:

  • in a short term: providing information to the Parliament, before the stage of examination and approval of the Budget Law for the following year;
  • in a medium term: the information in the Annual Report, in addition to the information presented in the reports of all audit missions, is a support for the Public Finance Control Committee and other parliamentary committees, in the context of the performance of the parliamentary control function.

The report presents problems, irregularities and systemic dysfunctions in certain areas, such as:

  • human resources management within central public authorities in terms of ensuring the functionality of financial-accounting and internal audit services;
  • registration of patrimonial rights over lands and buildings;
  • recording within the accounting records the value of land and buildings;
  • the public procurement process;
  • capitalizing on budget revenues;
  • functionality, interconnection and interoperability of state information systems;
  • public property management throughout privatization and public-private partnerships;
  • administrative capacity of local public authorities;
  • state participation in the corporate sector (state-owned entities); etc.

The Court of Accounts continuously directs its efforts towards strengthening good governance and accountability of the audited entities. Through our reports, we offer recommendations on the application of remedial actions and improvement of the discovered situations, in order to optimize the management of public resources, based on the principles of good governance. In order to facilitate the understanding of the audit findings and to increase the impact of the activity, a new element, implemented this year, is the elaboration of a summary of the Annual Report of the Court of Accounts. The summary is a concise version of the Annual Report, which presents, in a language accessible to the general public, the main findings of the Report and it will be published in the coming days.

In the period ahead, we will focus on the extensive process of developing the Audit Program for next year. The program will be developed based on the analysis of risk areas and systemic problems, taking into account the proposals of audit topics, received from the Legislature, civil society and citizens. Prior to approval, the Program will go through an extensive public consultation process.