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Auditing in Moldova
Presentation by
Ecaterina Paknehad, Member, Court of
Accounts of the Republic of Moldova
What will we cover ?
ØAbout Moldova
ØAbout the Court of Accounts
ØDevelopment of Court’s Capacity to Conduct
Performance Audits and Audits of IT
Systems
ØPilot Performance Audits and Additional
Audits
ØExamples of Impact of Performance Audits
ØQuestions?
2
WHERE IS MOLDOVA ?
3
About Moldova
Capital city – Chisinau (population 785.1 thsd
inhabitants)
Official language – Moldovan
Political system – Parliamentary Republic
5
Strategic Development of the Court of Accounts:
Switching from external control to external public audit
7
Development of Court’s Capacity to
Conduct
Performance Audits and Audits of IT
Systems
Ø 24 month WB funded Project Implemented by IBTCI:
Performance audits and audits of IT systems. Started
Oct 2008/ended Oct 2010
8
5 Pilot Performance
Audits
Oncological Institute
Implementation of New Procurement Law
Social Aid Process (requested by the European
Commission)
Primary Health Care System (requested by the
European Commission)
Assistance to Viticulture Industry
10
5 Additional Performance
Audits
Solid waste disposal (at the proposal of INTOSAI)
12
4 IT Audits performed
4 IT audits (reviewing the general controls and the
application controls)—3 of these were pilot audits;
Training materials;
IT Auditing Manual.
13
Title of 4 IT audits and quantitative
indicators are presented as follows:
14
The Court of Accounts thanks Mrs. Linda Weeks and
Mr. James Bonnell, Mr. Michael Bitz for their
dedication and effort in development of professional
capacities of auditors to conduct performance and IT
audits
15
What did we achieve?
16
Oncological Institute
Critical Health Care Institution—never been
audited.
Performance audit found serious problems with
the Institute’s systems for managing its
resources.
Audit identified areas where performance could
be improved: procurement, management of
medications, from determining the needs
through distribution and use of medications;
better utilizing inpatient department; and
obtaining information on the technical status
of medical equipment.
Nurse attempted to keep track of
medications using over 170 ledgers
18
Impact of Audit
Director and several senior staff were
replaced.
19
Implementation of New
Procurement Law
In 2008, Moldova passed a new procurement
law intended to significantly improve
public procurement process.
Ministry of Labor and Social Protection has accepted the proposals and
recommendations of the Court to improve the social aid delivery
mechanism.
Most public local authorities pay too little
attention to the problem of household wastes
Some LPA manage to find solutions!!!
(A good result achieved within a project of
private-public partnership)
Impact of the Audit on domestic solid
waste management
Ministry of Environment (MoE) highly appreciated the results
of the audit, initiating activities to implement the
recommendations.
The Government established within the MoE a section
dealing with development of national policies in the field
of waste management.
The Government decided to create an Agency of the
Environment, which will deal with tracking, monitoring
and controlling the wastes flow.
MoE developed the National Strategy on waste
management expected to be approved during 2011.
MoE revised the mechanism of allocating financial
resources.
Civil society is involved in projects related to training of PLA
representatives, producers of wastes and public at large...
Performance Audit of the
Social Aid Process
In 2008, Moldova implemented a new
mechanism for payment of social aid.
Audit was undertaken to determine whether
there are problems hindering
implementation of the new social aid
program.
Social Aid Process Audit Findings
Additional staff needed to effectively
implement the process.
Internal controls needed to be significantly
strengthened throughout the social aid
process.
Impact of the Social Aid Audit
EU accepted the Court Performance Audit as
a condition for additional assistance to this
program.
Moldova decided to separate Primary Health
Care from hospital care to ensure greater
access to health care services. Started
process in early 2008.
Audit Findings- Primary Health Care
Findings of audit on the cultural
project “Culture Caravan”
Project objectives stated in an unclear manner and without
any measurable indicators.
Objectives have not been coordinated with the Ministry of
Culture and can not be found in the Government Decision
on project implementation.
Association did not observe the ceilings of costs of cultural
activities established by the MoC and the total number of
planned activities.
Association did not provide required reports.
Association did not have documentary evidence for 30% of
expenditures. Association’s reports contained erroneous
data.
50% of the allocated funds have been used contrary to their
purpose, i.e. not for cultural activities, but for
Association’s administrative expenditures (procurement of
a car, salaries and bonuses for directors and other
personnel etc.).
Impact of the Audit on cultural
project “Culture Caravan”
The Court of Accounts referred certain
matters to the General Prosecutor’s
Office for further examination.
The Ministry of Culture initiated
development of methodological norms
for monitoring of cultural projects.
Performance Audit of Medical
Equipment
Audit was undertaken at request of the
European Commission.
Audit Findings – Medical Equipment
No strategic plans.
No standards, policies and procedures developed.
The top management does not get involved enough in the
IT management issues.
The IT-related risks are not assessed.
The existing resources are not used efficiently.
The IT staff has a high turnover rate and the institution
depends too much on too few people.
IT is designed and developed apart from other subdivisions.
Promotion of IT auditing within the state institutions and
drawing the attention of the decision-makers to the
importance of proper IT management.
The management of the Ministries responsible for IT systems
reviewed appreciated the IT audit results.
The top management understood and accepted the conclusions
related to the major IT risks.
The CoA recommendations are being implemented.
Access to Audit Reports
www.ccrm.md
Questions?
THANK YOU VERY MUCH FOR YOUR
ATTENTION !