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The findings of the audits at the Ministry of Education and Research and the Ministry of Culture, discussed within the relevant Parliamentary Committee

  • 16.11.2022
  • 563

The Court of Accounts of the Republic of Moldova (CoARM) presented today, November 16, within the Parliamentary Committee for the Control of Public Finances (PFCC) the Audit Report on the consolidated financial reports of the Ministry of Education, Culture and Research concluded on 31 December 2021, the Audit Report on the consolidated financial statements of the Ministry of Education and Research concluded on 31 December 2021 and audit report on the consolidated financial reports of the Ministry of Culture concluded on December 31, 2021.

As a result of the restructuring of the specialized central public administration, the Ministry of Education, Culture and Research was reorganized into the Ministry of Education and Research and the Ministry of Culture.

During the meeting, the CoARM’s Member Eduard Moroșan and the CoARM’s auditors reported on the gaps and deficiencies found during the audit and the context of issuing adverse opinions.

The adverse audit opinions were determined by the deficiencies found at the level of all financial reports:

  • Ministry of Education, Culture and Research: the accounting balance was affected by 87.4 million lei, the revenues – by 0.36 million lei and the expenses – by 87.9 million lei;
  • Ministry of Education and Research: the accounting balance was affected by approx. 1569.5 million lei, the revenues - by 0.19 million lei and the expenses - by 50.4 million lei;
  • The Ministry of Culture: the accounting balance was affected by approx. 937.1 million lei, expenses – by 5.9 million lei.

The most significant deficiencies referred to:

  • the initial balances of the financial reports of the Ministry of Education, Culture and Research contain misstatements that significantly affect the financial reports of the audited period. As a result of the fact that the ministry did not correct historical errors in the amount of 4.8 billion lei, at the level of asset and liability balances, they were significantly distorted;
  • the persons responsible for governance from the Ministry of Education and Research, as well as from the Ministry of Culture, did not comply with the requirements of the Ministry of Finance on aspects related to reorganization, namely, the restructuring committee was not established in the near term, the inventory of the patrimony and the transfer of assets and liabilities was not carried out until November 30, 2021, a fact that disrupted the reorganization process and the consolidated financial reports of both ministries were significantly affected;
  • without having rights and obligations, the Ministry of Education and Research accounts for assets and liabilities with a balance sheet value of 485.2 million lei, which are managed by the Ministry of Culture, but which have not been transmitted according to the acceptance-handover documents;
  • due to the non-compliant application of the rules for the recognition and assessment of land in the public domain, the value of the "Lands" account was undervalued at the Ministry of Education and Research by 361.5 million lei, and at the Ministry of Culture by 147.1 million lei;
  • the value of the "Buildings" account was reduced at the Ministry of Education and Research in an aggregated total of 115.3 million lei, 18 scientific research institutions subordinated to the Ministry of Education, Culture and Research and the Ministry of Education and Research did not take sufficient actions to record as intangible assets the expenses incurred for scientific research. On 31.12.2021, only 45.6 million lei were capitalized, or 29.6% of the total expenses of 154 million lei, incurred for research and innovation projects. Thus, the research institutions did not ensure the accounting in 2021 as intangible assets in progress of the expenses incurred for scientific research, in the amount of 108.4 million lei;
  • at the Ministry of Education and Research, the "Capital investments in progress" account was increased due to the double record of the investments made in 7 objects with 14.5 million lei, also recorded in the accounting records of the LPA, and in 3 objects of 15.5 million lei sold by LPA; non-capitalization of the investments of 78.2 million lei made at the "Aristotel" High School; non-execution of invoiced construction works of 5.84 million lei;
  • at the Ministry of Culture, the value of cultural heritage assets was reduced by 181.6 million lei, due to the lack of measures for the accounting of monumental buildings;
  • the allocation of subsidies to support the activity of theater-concert organizations, by the Ministry of Education, Culture and Research in the amount of 104.2 million lei and the Ministry of Culture of 87.9 million lei, was carried out with non-compliance with the normative provisions and the limits set concerning the total expenses, which conditioned the bearing of the expenses over 16.5 million lei.

For good governance, the ministry has the obligation to implement the normative acts in the specific fields of activity and to monitor and adjust the public policies in the field of competence. Starting from 2019, the normative framework that regulates the size of the tariffs for services provided against payment for study fees has not been adjusted, being in force approved in 2005 and 2015, which limits institutions to self-management in the individual approval of rates for contract-based studies.

Finally, the Court of Accounts noted that, during the audit, the institutions under the Ministry of Education and Research made financial accounting corrections of 1.3 million lei, (re)registered assets of 3.5 million lei, income of 34.4 thousand lei. The Ministry of Culture made accounting corrections of 43.9 thousand lei and capitalized assets of 12 million lei.

At the same time, the Court of Accounts informed the Parliamentary Committee about the recommendations submitted to the audited entity, which are to be implemented within the established terms.

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