Court of Accounts
Republic of Moldova
On July 29, the Public Finances Control Committee (PFCC) examined two financial audit reports approved by the Court of Accounts of the Republic of Moldova (CoARM) in 2020.
Viorel Chetraru, the Vice-President of the CoARM, Vasile Moșoi, Head of the IV General Audit Department and the audit team presented the main findings and recommendations of the Audit Report on the consolidated financial reports of the Ministry of Economy and Infrastructure (MEI), concluded on 31.12.2019, approved by the Decision of the CoARM no.23 from 25.06.2020.
Annually, the Court of Accounts performs the financial audit on the reports of the ministries concerning the budgetary execution within the concluded budgetary year, including within the MEI. The performed audit stated that the consolidated financial reports, excepting the issues that influenced the expressed opinion, offer, concerning all significant aspects, an accurate and true view, which complies with the accounting and financial reporting legal framework applied in the budgetary system.
Simultaneously, according to the audit, the recommendations issued previously to MEI by the CoARM achieved only a 62% implementation level. In this context, due of the lack on implementation by the “Roads State Administration” SE of the recommendation concerning the correction and reporting of the anticipated income (linked to the receipt in 2018 of guarantees for the proper execution of contractual commitments), the income was repeatedly presented in a distorted way and the value of the consolidated financial reports concluded on 31.12.2019 was decreased with over 211,4 thousand lei. In addition, the linked financial result presented in a distorted way, increased its value unmotivated, with the same amount. In this way, the audit evidence was sufficient and relevant in order to offer a basis for the qualified opinion.
Andrei Munteanu, Member of the CoARM, Angela Curchin, Head of the Methodology and Audit Division and the audit team presented the details regarding the Audit Report on the consolidated financial reports of the Ministry of Defense (MD), concluded on 31.12.2019, approved by the CoARM’s Decision no. 27 from 30.06.2020.
We mention that the Court of Accounts expressed a qualified opinion on the consolidated financial reports of MD, concluded on 31.12.2019. The basis of the qualified opinion included several deficiencies stated by the audit. Some of them are:
• overestimation of the 721 “Financial result of the current year” group of accounts with 324 million lei due to the misrecognition of revenue amounted to 368,8 million lei and of expenditures amounted to 44,8 million lei;
• underestimation of the 723 “Correction of the results of previous years” group of accounts with over 128,21 million lei due to the fact that the Ministry misapplies the correction accounts and registers transactions linked to the period being recorded;
• overestimation of the 722 “Financial result of the institution within the previous years” group of accounts with over 195,8 million lei, due to the distortion of the current result and corrections to the results of previous years;
• underestimation of the “Terrains” group of accounts with over 73,2 million lei due to the fact that MD did not determine the recognition value of 12 terrains according to the Law no.1308 from 25.07.1997 concerning the regulatory price and the way of selling and buying land;
• overestimation of the “Fixed assets attrition” group of accounts with the amount linked to the attrition of the military technique, although it is impossible to quantify it precisely.
Also, the audit was limited and did not confirm the value of the MD’s contribution within the social capital of two state enterprises (SE) amounted to 22,9 million lei due to the fact that MD has no exhaustive list of goods transmitted to founded enterprises.
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