WITH DEFICIENCES OF VIEW
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The Court of Accounts of the Republic of Moldova (CoARM) presented today, February 23, within the Public Finance Control Committee (PFCC), the Audit Report of the financial statements, concluded on December 31, 2020 and the Compliance Audit Report of the budget process and public assets management in 2020 of the administrative territorial unit (ATU) Nisporeni (level II budget).
During the meeting, Eduard Moroșan, member of the CoARM and the CoARM’s auditors reported on the gaps and deficiencies found during the audit and the context of issuing the opposite opinion.
The opinion was determined by the following effects:
- the value of the “Buildings” account was overestimated with the total amount of 12 million lei, as a result of the wrong accounting of the built block of flats, owned by the private partner, in the amount of 12, 64 million lei, of the related land in the amount of 2,5 million lei, as well as the value of a building received on loan and its capital repair works, in a total amount of 1.17 million lei;
- the value of the “Buildings” account was decreased by the value of the construction works of 5 new objects, irregularly sent to the ATU’s (level I) balance of 1.65 million lei, the value of a building sent into use in 2018 to a public institution, of 1,6 million lei and the value reported non-compliant to the “Special Constructions” account of 1.06 million lei;
- the value of the “Transmission installations” account was undervalued by 7.39 million lei, as a result of the non-reporting of the value of 4.7 million lei related to the Șendreni-Bolțun high pressure gas pipeline, as well as 2.69 million lei reported non-compliance with the account "Capital investments in assets in progress";
- the value of the “Land” account was underestimated by 13.77 million lei due to the non-recognition of the lands with the total surface of 6.19 acres of public property and of a land with the value of 5.97 million lei transmitted in management to a founded public institution, illegally excluded from the accounting records;
- the value of the account "Other receivables of the budgetary institutions" was decreased by the total amount of 26.36 million lei, due to the registration of expenses of the financial means transferred as a financial contribution for the implementation of a project in the amount of 6.96 million lei in 2020 and in 2018-2019 in a total amount of 19.4 million lei;
- the value of the account "Shares and other forms of capital participation within the country" was decreased by the amount of 1.74 million lei, being recorded at the expense the financial means transferred to public medical institutions for the purchase of protective equipment, medical equipment and other materials necessary for the protection of personnel involved in the treatment of patients with COVID-19 virus infection.
In the context of the compliance audit of the budgetary process and the management of the public patrimony at ATU Nisporeni (level II budget) in 2020, the Court of Accounts established some deviations and irregularities, among the most significant being:
- Insufficient substantiation of the budget proposals regarding some estimated revenues led to undervaluations and overvaluations in the amount of 408.3 thousand lei and 875.8 thousand lei, respectively;
- the failure to ensure the proper monitoring and administration of the process of leasing the public domain spaces, caused the non-collection of the calculated revenues of 33 thousand lei;
- the non-application of the measures provided by the normative framework regarding the adjustment of the fee for the training in the music school, lacked the district budget of revenues in the total amount of 207.7 thousand lei;
- the income from the payment for the feeding of the students of grades V-XII was approved irregularly, by the boards of directors of the pedagogues and of the parents, although they were to be approved by the District Council.
- capital repair works in the amount of 805.7 thousand lei were executed in the absence of expert projects;
- failure to ensure the substantiation of the investment of 91.8 million lei for the object “Modernization and reconstruction of the Youth and Sports Center in Nisporeni”, which should provide information on the expected results as a result of the project implementation;
- contractual commitments for capital works in the absence of approved financial sources, of about 11 million lei;
- improper use of financial means for road infrastructure of about 1.57 million lei;
- failure to specify the annual allowances in the works contract amounting to 16.46 million lei, with a term of more than one year;
- non-compliance with the framework of regulatory procedures and transparency in the public procurement process has conditioned irregularities related to: non-elaboration and non-updating of public procurement plans for goods, works and services;
- division of the estimated value of repair works into separate procurement contracts, lack of record keeping and supervision of small value purchases, etc.;
- capital repair works amounting to about 14.4 million lei not duly transmitted to the relevant authorities;
- failure to ensure the registration in the Real Estate Register of the patrimonial rights over 5 constructions in the amount of about 4.87 million lei and the surface of the lands of 0.24 acres related to the constructions as well as of the lands afferent to the roads of 63.2 km.
The Court of Accounts informed the Parliamentary Committee about the submission of the audited entity's recommendations, which are to be implemented within the established deadlines.
Tatiana Cunețchi, president of the Public Finance Control Committee, highlighted the quality and work of the CoARM’s auditors in preparing the audit reports and drew the attention of the responsible factors within ATU Nisporeni to remedy the violations found.
