The results of the audit of the financial reports of the administrative-territorial unit (ATU) of the city of Nisporeni concluded on December 31, 2019 and of the compliance audit on the budget process and the management of public patrimony at the ATU Nisporeni in 2019 were examined, on October 19, during the meeting of the Public Finance Control Committee (PFCC).
The findings and recommendations of the Court of Accounts of the Republic of Moldova (CoARM) were presented by the audit team, led by Eduard Moroșan, Member of the CoARM.
In the context of the financial audit, the Court of Accounts found that the Financial Reports of the administrative-territorial unit of the city of Nisporeni, concluded on December 31, 2019, do not present a true and fair view according to the applicable financial reporting framework, being issued an adverse opinion.
The adverse opinion on the financial reports was issued based on the following deficiencies:
- The undervaluation of the "Lands" account with the amount of 508.2 million lei, as a result of the non-inclusion and non-reporting in the accounting records of public property lands with a total area of 1950.9 acres;
- Lack of sufficient information related to the 140 streets (98.2 ha), not registered as record objects in the "Special constructions" account;
- The local authority did not assess and account for the natural resources related to the forest fund with a total area of 538.2 acres;
- Reduction of the value of the "Special constructions" account by the amount of 1.2 million lei due to incorrect classification and reporting as current expenses of capital expenses;
- The City Hall increased expenses by 1.4 million lei, simultaneously decreasing the account "Receivables of the budgetary institution" by the given amount, as a result of reflecting as expenses the financial contribution of the City Hall for capital expenses.
- Was admitted the increase in the value of the "Shares and other forms of capital participation within the country" account by the amount of 23.5 million lei, as a result of the non-recognition and non-accounting of the local public property technical infrastructure in the public domain, including the public water supply and sewage systems.
In the context of the compliance audit, the CoARM found that the non-compliant application of the normative provisions caused deficiencies in the estimation and planning of budget revenues and expenses, making purchases and related expenses, as well as in the registration and administration of the assets.