Management of financial resources and public patrimony by AGEPI, discussed during the meeting of the PFCC

The Court of Accounts of the Republic of Moldova (CoARM) presented today, March 9, during the meeting of the Public Finance Control Commission (PFCC), the Compliance Audit Report of the management of public assets and public financial resources by the Intellectual Property State Agency (AGEPI ) during 2017-2019, report approved by the CoA on 22.12.2020.

The main conclusions and findings of the compliance report were presented by Viorel Chetraru - Vice President of the CoARM, Vasile Moșoi - responsible for monitoring the audit and Irina Ter-Cula, Head of the audit team.

The audit revealed that AGEPI, during the audited period, properly ensured the management of revenues, their full and compliant accumulation, the legitimate and prudent execution of expenditures, as well as the transparent and accountable management of the entrusted assets.

At the same time, some deficiencies concerning the budgetary process, some derogations and non-conformities related to the administration of the patrimony were identified, as well as some risks were noticed, which did not significantly affect the good governance of the entrusted public patrimony. In this context, the following is attested:

• The management of the intellectual property field is performed in the absence of the Strategic Development Program of the AGEPI activity on a medium term;

• From the moment of obtaining the status of central administrative authority and the modification of the financing principles of the AGEPI’s activity, its activity does not pursue the objective of obtaining economic benefits. Therefore, institutional changes entail a re-approach to the cost-based system of charging for the provided services;

• Given that AGEPI has been functioning as a central administrative authority for almost 2 years, it is noted that the system of charging for services provided under AGEPI is outdated in terms of the status of the entity obtained after the institutional reorganization and is to be be reoriented on real costs and those principles;

• In the process of planning and use of budgetary resources, AGEPI did not ensure the full capitalization of budget allocations related to expenditures in the total amount of 23.8 million lei, or about 40%. Therefore, budgetary rules and principles are to be applied in the budget planning/execution process so as to ensure the accuracy of its planning and execution, etc.

The public audit also revealed non-compliances related to the accounting registration of some patrimonial elements, which conditioned the distortion of the fair value of the managed patrimony in the acceptance of the real property rights held with possible negative impact on the decision-making process related to them.

Based on the audit findings, recommendations were made to ensure that the detected non-compliances were remedied and that the identified risks were mitigated. These refer to the management of the intellectual property field, the budgetary rules and principles, the charging system for the services provided, the remuneration of the work of the agency's management.

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