During the reporting period (September 2019 – September 2020), 20 audits of the financial reports / financial statements were performed (including BS, BASS, FAOAM and the consolidated financial statements of 9 ministries). Also, 17 compliance audits and 8 performance audits that focused on privatization, public procurement, public finance and property management by state-owned enterprises, transfers from the state budget to local budgets, and functionality, and performance of financial management IT systems were completed. During this period, 4 follow-up audits were performed.
The Summary of the Annual Report highlighted the following issues:
✅ Deficiencies in the public finance management:
- in respect to “Execution of BS, BASS and FAOAM”
- limited progress in accounting and financial reporting in the public sector
- the benefits of the internal control and audit system were not fully acknowledged
- the implementation of information technologies requires centralized efforts
✅ Shortcomings in the management of public assets, the most serious problem that persists is the inadequate valuation and non-registration of public lands and buildings.
✅ Inefficient and non-transparent participation of the state in the corporate sector. The Court of Accounts considers that the most important tool for optimizing state-owned corporate management in the national economy is not necessarily the privatization of enterprises, but, as a matter of priority, the “rethinking” of the public property management system, the selection of motivated managers, attracting domestic and foreign investments, developing modern standards in evaluation, ensuring transparency and monitoring the values under state management.
✅ Limited use of external funding, influenced by reduced absorption capacity. The account balances from projects financed from external sources (loans and / or subsidies) not used until the end of 2019 amounted to 1 150.5 million lei, being accessible to be used for the same purposes in the following budget year(s).
✅ The Court of Accounts’ contribution in the fight against fraud and corruption. During the reporting period (September 2019 – September 2020), following the assessment of fraud risks, the Court of Accounts submitted to the law enforcement bodies the materials of 18 audit missions. Based on the audit reports of 2015-2018, the law enforcement bodies investigated 23 criminal cases.
✅ Cooperation with Parliament. Starting with the second semester of 2019, the Court of Accounts strengthens professional relations with a new profile commission of the Parliament of the Republic of Moldova, the Public Finance Control Commission (CCFP).
✅ The Court of Accounts’ efforts to increase the impact of its activity. In addition to communicating the audit results to the stakeholders, the CA Reports provide recommendations on the implementation of remedial actions and improvement of the disputed situations, in order to optimize resource management based on the principles of good governance.
✅ Strengthening the sustainability of the external public audit.