The team of the Court of Accounts of the Republic of Moldova (CoARM) presented, on February 15, during the meeting of the Public Finance Control Committee (PFCC), the institution's Annual Reports and Activity Reports for the years 2020 and 2021. The representatives of the central public authorities - entities audited by the Court of Accounts, also attended the meeting.
In his speech during the meeting, Marian Lupu, the President of the CoARM mentioned that the Annual Report of the Court of Accounts, which is presented to the Parliament on September 15 of each year, has a special value, because it includes the most pressing systemic problems and major irregularities, which require increased attention from the Government, as well as the Parliament, in the exercise of parliamentary control.
In the context of the presentation of the Annual Reports, the CoARM’s President referred to the conclusions deriving from the financial audit reports and the findings on system problems, flagged by the audit.
Thus, during the reference period, the Court of Accounts continued to draw increased attention to the performance of financial audits, because through its audits the CoARM contributes to the establishment of the system of recording financial resources and patrimony, as well as accounting reporting, which currently, according to audit findings, requires major improvements.
A fundamental aspect, signaled by the Court of Accounts, which aims at the country's European agenda, is the need to align the accounting records and financial reporting in the budget sector to the International Public Sector Accounting Standards (IPSAS). This aspect constitutes an important priority on the country's European agenda, a strategic objective, which requires strengthening the efforts of all actors involved, mentioned Marian Lupu.
Other systemic problems, discussed by the Court of Accounts’ team addressed:
- Poor management of public patrimony;
- Poor utilization of resources for public investment;
- Reduced administrative capacity to manage and use external funds, allocated through investment projects;
- The problem of low-value procurement and the fragmented implementation of electronic public procurement;
- Failure to ensure good governance of the system of fiscal and customs facilities.
In the context of the discussions regarding the impact of the institution's activity, the President of the CoARM presented the concrete results of the Court of Accounts' activity, materialized in changes to the legislation and regulatory framework, the improvement of the management of finances and public patrimony, etc. One of these examples relates to the effects of working with law enforcement. According to the 2017-2020 National Integrity and Anticorruption Strategy Implementation Evaluation Report (NIAS) 2017-2020, 52 sanctions for acts of corruption found on the basis of the information submitted by the Court of Accounts were applied during 2017-2020 and a damage of more than 5 billion of lei caused to the state was recovered, which demonstrates the impact of the CoARM’s activity, but also the efficiency of working with the authorities responsible for investigating and sanctioning corruption.
During the PFCC’s meeting, the Operational Activity Reports of the Court of Accounts for 2020 and 2021 were also heard. Petru Rotaru, Member of the CoARM presented the totals regarding the management of human and financial resources, quality assurance and the internal managerial control system, international cooperation, cooperation with interested parties, ensuring the transparency of the CoARM’s activity, as well as the findings of the international evaluation reports of the Court of Accounts, achieved in the recent years, which confirm the achievements and progress registered by the institution.
The president of the PFCC, Tatiana Cunetchi, noted the important role of the supreme audit institution for the audited entities and for the society as a whole. The Vice President of the Committee, Artur Mija highly appreciated the Reports and the activity of the CoARM, stressing the importance of solving the systemic problems identified in the audits of the Court of Accounts.
We note that, following the hearing of the Annual and Activity Reports of the Court of Accounts for the years 2020 and 2021, the PFCC has developed hearing reports in which it requests the audited government authorities to implement the audit recommendations within the terms set by the Court of Accounts and to report on the actions undertaken. Also, the PFCC will submit the proposal for the hearing of the CoARM’s Reports in the plenary session of the Parliament.