WITH DEFICIENCES OF VIEW
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The Court of Accounts of the Republic of Moldova (CoARM) presented today, November 23, within the Parliamentary Committee for the control of public finances (PFCC) the audit report on the consolidated financial reports of the Ministry of Economy and Infrastructure concluded on December 31, 2021, the audit report on the consolidated financial reports of the Ministry of Infrastructure and Regional Development concluded on December 31, 2021 and the Audit Report on the consolidated financial reports of the Ministry of Economy concluded on December 31, 2021.
As a result of the reorganization process, the Ministry of Economy and Infrastructure fully transferred, according to the provisions of the current regulatory framework, the assets managed to the Ministry of Infrastructure and Regional Development reporting at the end of the management period the balance of the balance sheet elements at the value of 0.
During the meeting, Viorel Chetraru, the CoARM’s Vice-President and the CoARM’ auditors reported on the gaps and deficiencies found in the audit and the context of issuing a qualified audit opinion.
The findings that affected the audit opinion can also be found in the basis for the qualified opinion from the Ministry of Infrastructure and Regional Development, the successor of the rights and obligations of the Ministry of Economy and Infrastructure.
The basis for the qualified opinion was determined by the fact that the Public Institution Social Investment Fund in Moldova did not reflect in the accounting records the transmission of the investments made with the aim of improving the conditions of activity in educational units to the beneficiary communities, which generated the overvaluation of fixed assets by at least 67.88 million lei and understating expenses and corrections of previous years' results by the same amount. At the same time, the financial result of the management year was distorted by approximately 55.04 million lei.
At the same time, the State Enterprise "State Administration of Roads", due to the erroneous interpretation of the Enforcement Title regarding the recognition of the foreign arbitral award and the approval of the forced execution of damages, incorrectly calculated the established interests and penalties, thus overestimating the expenses of the management period and underestimating the financial result by approximately 73.9 million lei, and the debt to the contractor was overestimated by 70.6 million lei.
Similarly, the PI Unit for the Implementation of the Housing Construction Project for the Socially Vulnerable II, did not properly record in the accounting records the transactions related to the investments of 31 social apartments in the housing complex in the city. Ialoveni, given that it was finished in 2018 and distributed to the residents. Until now, apartments are incorrectly reflected in the composition of investments in assets under construction, which generated the overvaluation of the respective group of accounts by 19.9 million lei and the undervaluation of the corrections of previous years' results by the same amount.
With reference to the results of the audit on the consolidated financial reports of the Ministry of Economy concluded on December 31, 2021, the auditors of the Court of Accounts reported the following.
As a result of the audit of the consolidated financial reports of the Ministry of Economy, the Court of Accounts issued a qualified audit opinion. The basis for the qualified audit opinion was determined by the fact that the Ministry of Economy erroneously reported the balance of financial means available to the accounts of the Organization for the Development of the Small and Medium Enterprise Sector (ODSMES), this being overestimated by 10.23 million lei. ODSMES, without the consent of the Ministry of Economy, paid the mentioned amount in advance for another external financing project, in which, according to the contractual clauses, the donor covers part of the total amount in the first phase, and the rest is to be transferred upon the completion and auditing of the project.
Also, was certified the allocation of additional financial resources in the amount of 10 million lei to the Balti Free Economic Zone, in the context of the Development Program for Local Suppliers, in the conditions where the initially established performance indicators, in relation to the financial means allocated for the corresponding stage, were not achieved. Therefore, persists the risk of not achieving the goal of the mentioned Program and the inefficient capitalization of the granted grants.
The Chairwoman of the Public Finance Control Committee, Tatiana Cunețchi, appreciated the activity of the CoARM’s auditors for performing the respective audits and for providing support to the entities concerned in terms of connecting the activities to the legal framework. Mrs. Cunețchi also emphasized the importance of timely implementation of the CoARM’s recommendations by the audited entities.
