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Financial audit reports of the National Integrity Authority

March 25, 2020 views 874

 

On March 25 this year, the Court of Accounts of the Republic of Moldova (CoARM) examined the financial audit reports of the National Integrity Authority, which were concluded on December 31 2019. 

The National Integrity Authority is a public authority that is independent towards other public organizations, other public or private legal persons or natural persons, which activate as a unique structure on a national level. 

The National Integrity Authority is financed throughout the state budget allocations account. The patrimony managed by NIA belongs to the state and regarding its existence and material content, at the end of the 2019, its amount reached 11,9 million lei. 

The audit team mentioned that the irregularities that had been found within the last audit missions were not found by the current audit mission and over 86% of the recommendations made by the Court of Accounts were implemented, which means that the management of the Authority, as well as the external public audit have offered a great value. Despite this, it should be mentioned that the current audit stated some irregularities linked to the unusual domains of the Authority’s activity. 

The current audit mission performed specific activities, which were never made before, regarding the assets received from the General Prosecutor’s Office, public property assets (building, 1st and 2nd floor, as well as the linked buildings) – Chisinau, 26 Mitropolit Gavriil Banulescu-Bodoni street, assets that were given for free and were renovated. 

The capital renovations were never made before, so, as a result, the risks regarding them were not identified and managed accordingly. That is why in the list of operational processes implemented and described by the Authority the processes linked to the renovation/capital investments are not included, which has generated irregularities regarding the accounting bookkeeping and the capital renovations reporting:
-    Inappropriate bookkeeping within the “Buildings” fixed assets group of the heating equipment (909 thousand lei) and of the video control system (294 thousand lei), that were installed and mounted within the capital renovation process. The fixed assets should have been registered within the “Equipment and machinery” fixed assets group;
-    Registering within the accounting bookkeeping of an increased renovation volume – with 374 thousand lei more than the spent sum of money. According to the services contract and the linked tax sheets, the overall volume of the identified, accounted and paid works summed up to 7208,3 thousand lei, but according to the protocols regarding the works the overall value (on December 31 2019) was only 6834,1 thousand lei. It should be mentioned that the indicated sum (374,2 thousand lei) represented the advanced payment given to the general entrepreneur, so the contract’s provisions were exceeded;

Another irregularity stated by the audit was:
-    The decrease of the building capital renovation’s sum with over 85,7 thousand lei, as a result of the inappropriate usage of the accounting bookkeeping regulations. As a result, the expenditure for the technique expertise of the building – 9,1 thousand lei and the one for the control regarding the capital renovation works implementation – 76,6 thousand lei were registered within the content of other expenditures. The expenditures mentioned should have been bookkept and registered within the “Building capital renovations” accounting account. 

The audit activities have shown some irregularities regarding the accounting bookkeeping of the non-material actives:
-    The inappropriate identification within the accounting bookkeeping of maintenance works linked to the Informational System “e-integritate” (920 thousand lei) that were stated as expenditures, but actually they must have been capitalized, because of their contribution to the modernization and development of the informational system and to the system’s potential. 

Taking into account the exposed irregularities and factors that determined these flaws, it is determined that the financial reports that were audited provide, regarding all the significant aspects, an accurate presentation of the compliance with the accounting and financial reporting provisions within the budgetary system.