WITH DEFICIENCES OF VIEW
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The Court of Accounts of the Republic of Moldova (CoARM) presented on September 20, during the meeting of the Public Finance Control Committee, the conclusions of the audit report on the consolidated financial reports of the administrative-territorial unit (ATU) of the municipality of Chisinau concluded on December 31, 2020 (ATU/level II budget) and of the Compliance Audit Report of the budget process and the management of public patrimony during 2018-2020 within the Chisinau municipality ATU (ATU/level II budget).
The Members of the Court of Accounts, Eduard Moroșan and Sergiu Știrbu, as well as the CoARM’s auditors, responsible for the audit, reported on the gaps and deficiencies found in the activity related to the audited area of the Chisinau City Hall and subordinate entities (74 budget institutions and 94 self-management institutions).
The Court of Accounts stated that the management of the budget funds and the patrimony of the ATU of the municipality of Chisinau does not meet the rigors of the legal framework, which is affected by irregularities and deficiencies, which is expressed through the improper management and record of income, expenses and public patrimony. In this context, the CoARM mentioned that the consolidated financial reports of ATU Chisinau for the year 2020 do not present a correct and faithful picture, an adverse opinion being issued.
The adverse opinion was conditioned by the lack of effective control activities established within the budgetary process and the management of the heritage, by the insufficient responsibility of the decision-makers in the exercise of functional attributions, as well as by the non-implementation of the recommendations of the Court of Accounts. Deficiencies were also found at the level of all financial reports, the accounting balance being affected by approx. 6.08 billion lei, revenues - by 27.6 million lei and expenses - by 133.3 million lei.
39 recommendations were submitted to the municipal council and the general mayor of Chisinau (12 - financial; 27 - compliance) intended to contribute to the improvement of the situation created within the audited entities, the Court of Accounts being informed about the actions undertaken quarterly, within 12 months from the date of entry into force of the CoARM’s Decisions.
Although, the entity informs the Court of Accounts about the undertaking of some measures, such as the elaboration of draft decisions, the approval of some decisions, these measures do not confirm the remedy of the irregularities elucidated in the Audit Reports. Thus, the ex officio analysis of the information presented by Chisinau City Hall, as of 11.09.2023, shows that out of the total number of recommendations submitted, 2 recommendations are implemented, 8 recommendations - partially implemented and 29 recommendations are not implemented.
Tatiana Cunețchi, the Chairperson of the Public Finance Control Committee, appreciated the reports prepared by the CoARM and urged the concerned entities, subordinated to the municipality of Chisinau, to strengthen their efforts to strengthen financial discipline.
