The Court of Accounts of the Republic of Moldova (CoARM), on July 1, examined the Audit Report of the consolidated financial statements of the Ministry of Internal Affairs (MIA) concluded on December 31, 2021.
The CoARM’s auditors verified the aspects related to the fields related to the management of the public patrimony, the remuneration of the work, the capital repairs of the buildings, the state reserves, etc.
During the meeting, were presented the main comments, which were the basis for issuing the qualified audit opinion:
- due to the non-valuation and non-recognition of fixed assets, three institutions subordinated to the MIA admitted the undervaluation of non-financial assets to the account groups “Buildings” and “Lands” with the amount of 80.8 million lei;
- two institutions subordinated to the MIA evaluated and accounted for 71 buildings at the market value in the amount of 20.9 million lei;
- the irregular classification of the fixed assets by 2 institutions subordinated to the Ministry of Interior, namely of the radio-communication networks, conditioned the underestimation of the balance of the group of accounts “Transmission installations” with the amount of 251.8 million lei and overestimation of the balance of the group of accounts "Machinery and equipment" by 231.9 million lei, of the group of accounts "Special constructions" with 17.7 million lei, of the group of accounts "Tools and implements, production and household inventory" with 1.1 million lei, and of the group of accounts "Stocks of circulating materials" with 1.1 million lei;
The audit also highlighted other findings, which did not influence the audit opinion:
- for the reconstruction of the swimming pool of the Central Sports Club "Dinamo" were transferred to 2 entities in advance 37.3 million lei, but the construction works in the amount of 28.7 million lei for 5 years were not sent to the institution, forming receivables as of 31.12.2021 with the nominated amount;
- The incomes reported by the Medical Service to the group of accounts “Voluntary donations” in the amount of 2.8 million lei were unjustifiably collected from the salaries of some MIA employees, the incomes and the financial result being overestimated with the nominated amount.
The audit evidence reveals that in 2021, the revenues executed amounted to 3096.2 million lei or at the level of 95.7%, the specified indicators not being achieved by 12 institutions with the amount of 137.7 million lei, the cause being the non-disbursement of external grants in the amount of 92.8 million lei, the non-capitalization of the budgetary allocations in the amount of 35.1 million lei and the non-collection of revenues from the sale of goods and services with payment in the amount of 8.9 million lei.
Eight institutions subordinated to the Ministry of Internal Affairs did not collect revenues from the location of public property and the provision of paid services, forming receivables in the amount of 10.3 million lei, including 3.1 million lei are receivables with the expired payment term.
In 2021, the personnel expenses of the MIA’s employees amounted to 2328.9 million lei, and their increase by 281.8 million lei was influenced by the increase of the reference value of the salary classes. Some institutions subordinated to the MIA admitted to exceeding the commitments assumed in relation to the specified allocations in the amount of 29.4 million lei, including 25.5 million lei in the group of accounts "Personnel expenses" and, respectively, by 3.9 million lei to the group of accounts "Social benefits". The cause of these increases was the payment of unused leave without financial coverage during the management period.
The audit identified about 5334 MIA’s employees with arrears of annual leave, who in the years 1992-2021 illegally accumulated 378.9 thousand unused leave days, which imposes legal obligations towards the staff of about 135.4 million lei, which are increasing by 17.7 million lei compared to 2020 and by 58.7 million lei compared to 2019. In one case, an employee in 2021 benefited from salary rights upon release in the amount of 945.7 thousand lei, including 529.2 thousand lei allowance for days of unused leave and 416.5 thousand lei single allowance for release.
The audit showed a high degree of staff turnover within the MIA, 1835 people were employed during the year, at the same time 2030 people were released, including 465 civil servants with special status, resigned with the right to pension, being paid salary rights upon release in the amount of 73.7 million lei, including 53.7 million lei - paid for the single allowance and 20.0 million lei compensation for unused leave.
Due to the initiation of litigations by the employees of the Ministry of Internal Affairs, the payments related to the executory documents with voluntary execution in 2021 amounted to 3.4 million lei, which conditioned the loss of the state budget with the nominated amount.
Although, some measures have been taken, the registration of public patrimony, managed by the Ministry of Internal Affairs, at the cadastral bodies remains an unresolved issue. At the end of the management period, some institutions subordinated to the Ministry of Internal Affairs did not register 379 buildings (113 thousand m2) and 69 plots of land (31.0 acres) in the cadastral bodies. One of the reasons for the non-registration of property rights over real estate by cadastral bodies is the lack of final acceptance documents for works on buildings built until the 1990s, necessary to be presented in order to register the public patrimony.
The audit warned that the risk of alienation of two plots of land, public property of the Central Sports Club "Dinamo", with a total area of 2,234 acres illegally leased for construction for a period of 10 years and 25 years, respectively, persists. In case of alienation of land, the damage calculated by the National Center of Judicial Expertise would reach 111 million lei. The physical observation on the spot reveals that the tenants continue to carry out entrepreneurial activity on the Club's lands, and their receivables for lease amounted to 438.8 thousand lei and 72.9 thousand lei, respectively.
As of 31.12.2021, the institutions subordinated to the Ministry of Internal Affairs were managing 23 projects financed from external sources in progress, stating the following:
- due to the non-collection of external grants for construction works, the delay of procurement procedures, as well as the reduced capacity to absorb public funds, some institutions did not execute the budgetary allocations in the amount of 48.7 million lei intended for “Capital investments in assets under execution”;
- the award documentation and the procurement contracts for the capital repair works of the buildings of the Integrated Law Enforcement Training Center and of the infrastructure of the “Ștefan cel Mare” Academy in the amount of 40.2 million lei were drawn up in the absence of projects and general estimates of expenditure, regularly examined;
- although, according to the objectives of the action plan for the years 2020-2021 for the acquisition of the project documentation and expertise of the nominated Center, 12.6 million lei were planned, "Stefan cel Mare" Academy contracted design services only for the reconstruction of urban systems and electric lighting with the value of works in the amount of 22.2 million lei, but in fact it contracted works in the amount of 62.4 million lei, thus not respecting the legal framework regarding the public procurement of works and the quality in constructions;
- the analysis of the value availability of state and mobilization reserves found that on 31.12.2021, these in total were completed by the Material Reserves Agency at the level of 20% of the total needs of the Nomenclature of material goods, estimated at current prices.
Finally, the Court of Accounts mentioned that, during the audit, 5 institutions subordinated to the Ministry of Internal Affairs evaluated and accounted for 51 buildings and 54 plots of land worth 101.7 million lei. The auditors identified that as a result of the financial audits, carried out by the CoARM in recent years, the institutions subordinated to the Ministry of Internal Affairs assessed and accounted for assets amounting to 1 billion and 112 million lei.