Moldova Republic of : Audit of the consolidated financial statements of the Ministry of Justice.
The objective of the external public audit was to provide reasonable assurance that the consolidated financial statements of the MoJ at 31.12.2017 are prepared and presented in accordance with the applicable financial reporting framework, presenting a true and fair view of the financial statements, lacking material misstatement due to fraud or error, with an opinion on the financial statements.
The Ministry of Justice is the central specialized body of public administration that ensures the implementation of governmental policy in the areas of activity entrusted to it, and in terms of financial management, management is responsible for the preparation and fair presentation of financial statements in accordance with the applicable financial reporting framework and the implementation of the internal control system.
In 2017, the MJ (Central Office and Subordinate Administrative Authorities) administered public financial resources in total amounting to MDL 627.8 million, including expenditures - 498.6 million lei and non-financial assets - 129.2 million lei .
The external public audit has audited the expenditures and non-financial assets of the central body of the Ministry of Justice and 4 subordinate administrative authorities (National Penitentiary Administration (ANP), National Probation Inspectorate (INP), National Center of Judicial Expertise (NCEJ) Legal Information (ICJ) amounting to MDL 556.4 million, which represents 88.6% of the total public financial resources managed by the MoJ.
In the audits, the audit found that the consolidated financial statements did not present a true and fair view, accompanied by significant distortions, both within the central body of the Ministry and in the subordinate entities, namely:
The MJ Central Unit increased irregular expenditure by 2017 in the amount of 6.0 million lei, following the cancellation of the non-financial asset (computer network), which affected the financial statements;
The National Probation Inspectorate incorrectly classified and attributed the expenditures for the modernization of the computer programs (77.1 thousand lei) and the costs of installing the air conditioners (44.4 thousand lei), which, according to the methodological norms, were to be reflected in the increase of the value of the mentioned assets;
They were not evaluated by the Ministry of Justice and recorded in the accounting records of 17 buildings (constructions) with a total area of ??1462.2 m 2 , fact that significantly affected the actual presentation of the patrimonial situation;
The value of the fixed assets by ANP was not increased by RON 7.4 million, as a result of the reconstruction of some buildings made during the period 2013-2016, being reflected in the bookkeeping as capital investments under execution;
Incorrect classification and attribution in the bookkeeping of non-financial assets in the amount of MDL 2.3 million (AC of MJ). Analogously, the INP incorrectly reflected in the accounting records in 7 cases the non-financial assets amounting to RON 0.2 million;
The inventory process was carried out by the audited entities with some deviations from the regulatory framework, the audit establishing deficiencies in the organization, development and reporting of the inventory results;
Also, the audit reveals some deficiencies in the functioning of the accounting software within the MJ AC, with deviations between the Registry data on the calculation of the fixed assets' consumption (89.4 million lei) and the balance sheet data as at 31.12.2017 (93.5 million) in the amount of MDL 4.1 million;
The procurement process has been affected by a number of non-conformities, which have not had an impact on spending reporting. In this context, the non-publication of the notice of intention and the annual procurement plan by the Central Office of the Ministry of Justice and the National Probation Inspectorate respectively. Incomplete planning of the estimated value of some public procurement (MJ AC), failure to secure the submission at the time of signing 5 procurement contracts by the successful tenderers of the performance guarantee of the contract in a total amount of 1.1 million lei ), as well as other issues related to this area;
The failure and non-use by the Ministry of Justice of 6 informational systems totaling 13.1 million MDL, reflected in the bookkeeping as intangible assets, the depreciation of these assets being not calculated; At the same time, it is noted that the purchase of these systems was carried out with the non-observance of the consecutive life processes of the information systems, as well as the lack of approval of the operating regulations;
Insufficient monitoring by the Ministry of Justice of the process of construction and reconstruction of penitentiaries under the Government Action Plan for the years 2016-2018, which influences the delay in the timely execution of the requirements for improving the conditions of detention.
The deficiencies and problems identified by the external public audit had an impact on the consolidated financial statements of the Ministry of Justice, drawn up on 31 December 2017, which were affected by the total amount of MDL 16.2 million.
The audit noted that, until the audit engagement was completed, some audited entities undertook a series of measures to remedy the identified situations.
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|Date:||Jul 28, 2018|
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