LAW OF THE REPUBLIC OF MOLDOVA ON THE COURT OF ACCOUNTS
No 312-XIII dated 08.12.94
Published in the Official Gazette of the Republic of Moldova No 7/77, dated 02.02.1995
Note: the Law was republished in the Official Gazette, in a special issue dated
09.12.2005, page 4.
Note: the Law was republished anew in the Official Gazette, No 25 – 26, dated
21.02.2003, page 5.
Note: The word “collaborator” used in the wording of the Law shall be replaced with the
word “employee”, in line with Law No 1063-XV, dated 17.05.2002.
Note: See the Parliament Decree No 313-XIII dated 08.12.94 “On the implementation of
the Law on the Court of Accounts”.
The Parliament adopts this Law.
Chapter I
GENERAL
Article 1. – (1) The subject of this law refers to the basic provisions on the external
financial control carried out by the Court of Accounts.
(2) The goals of this law are:
a)
Ensuring observance of the formation, management and use of the public financial
resources;
b)
Ensuring the use of the public assets in a legal way, in line with their destination;
c)
Ensuring an economical, efficient and effective use of the public assets;
d)
Ensuring a legal governing of the Court of Accounts.
Article 2. – The terms used in this law designate the following:
Objective of the control – a precise declaration of the things a control seeks to realize
and/or the question to which the control is supposed to give an answer;
Thematic control – a control of one or more financial aspects related to the operation of
the entity subject of the control or the use of the public assets;
Policies followed by the governing programme – a set of measures meant to contribute
to the realization of a number of goals using the corresponding resources during a set period of
time;
Specific programme – use of the appropriated finances for a concrete action or a set of
coherent actions undertaken to achieve an objective or a set of well defined objectives with
respect to which there exist performance indicators and evaluation indicators of the envisaged
outcomes.
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Organisation – an efficient use of the human resources, economic structures and
processes for the realization of certain objectives;
Management policies – decrees , actions and rules, observed in monitoring, accounting
and using of human, financial and other type resources. The management policy refers to the
internal operations of the institution;
Economical approach – minimising costs of resources used in a certain activity without
an impact on the effective realization of set objectives (the quality);
Efficiency – relationship between the outcomes and resources used for the purpose;
Effectiveness – the degree to which set objectives are realized and the relationship
between the envisaged impact and the real one;
Public property – total set of ownership rights and duties belonging to the state, standing
for a closely linked totality of assets and equity valued in money, and which is managed by
assigned legal entities;
Financial revision – checking accuracy of financial statements, observance of the law
and rules relevant to the economic financial operations;
Entities subject to controls – institutions subject to controls;
Control (audit) procedures – tests, guidelines and actions to be applied during the
control (audit) process in a systematic and reasonable way;
Findings – specific aspects identified by the auditor as contributing to the realization of
the control objectives;
Pertinent control evidence – sufficient and relevant data facilitating the realization of
the control objectives. The data are highly qualitative and inspire trust and security;
Relevant control evidence – pertinent data referring to the control objectives, which are
meant to back up the findings;
Reasonable control evidence – economical, efficient and effective data from the point of
view of their cost.
Performance control (audit) – and independent evaluation or examination of the extent
to which an activity, a programme or an institution operates in an economical, efficient and
effective way;
Subsequent control - a control of an entity subject to control at the end of an economical
financial operation;
Verification control - a control of the partners of an entity subject to control with the
purpose to verify the correctness of undertaken operations;
Standard (norm) – a document establishing the minimum orientation of a control (audit)
and determining the control (audit) stages and procedures;
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External control – a control carried out by an empowered body displaying activity in
conditions of organizational and functional independence with respect to entities subject to
control.
Article 3. – (1) The Court of Account is the supreme state financial control body and
carries out its activity in line with the Constitution of the Republic of Moldova, this Law and
other legal acts regulating this area. The Court of Accounts enjoys an organizational and
functional independence.
(2) Annually, before July 15 of the year, the Court of Accounts submits a report to the
Parliament on the management of public finances during the expired budgetary execution. The
report refers to identified violations and measures undertaken for their correction. The President
of the Court of Accounts makes the presentation of the annual report during a special session of
the Parliament. The Parliament and deputies of the Parliament shall receive copies of the annual
report at least 15 days in advance to the special session of the Parliament.
(3) The Official Gazette of the Republic of Moldova publishes the annual report of the
Court of Accounts within 15 days since the presentation of the report in the special session of the
Parliament.
(4) The Court of Accounts is a legal entity and has its own stamp with the national coat
of arms on it.
(9) The Court of Accounts has its headquarters locate in the capital of the country.
Article 4. - In carrying out its external financial control the Court of Accounts observes
the following principles:
a)
b)
c)
d)
e)
f)
g)
h)
i)
Legality;
Responsibility;
Integrity;
Objectiveness and independence;
Competence;
Rigorousness;
Perseverance;
Clear disclosure of findings;
Transparency.
Article 5. – (1) The Court of Accounts approves its activity programme in an autonomous
way.
(2) Controls of the Court of Accounts are initiated ex officio and may not be suspended.
(3) Parliament decrees requesting the Court of Accounts to carry out certain controls
within its terms of reference are binding.
(4) Once in a quarter of a year, at the request of any parliamentary faction, the Court of
Accounts can make an additional control of the public funds management without a
Parliamentary decree for that. The Court of Accounts shall report to the Parliament the outcomes
of such a control within at the most 60 days since the day of the request.
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(5) No other public authority can oblige the Court of Accounts to carry out controls or
revisions.
Article 6. – (1) The Court of Accounts submits additional reports to the Parliamentary
standing commissions with findings of controls of special importance for the state requesting a
Parliament decision hereupon.
(2) At the request of a parliamentary faction, a parliamentary commission or a deputy the
Court of Accounts shall submit, within 5 days period of time, the documents, decrees and reports
with the outcomes of controls made.
(3) Decrees of the Court of Accounts of the Republic of Moldova issued based on
controls shall be published in the Official Gazette of the Republic of Moldova within 10 days
following their effectiveness. Decrees that have been appealed shall be published only when the
final ruling of the court has been made.
Article 7. – (1) The Court of Accounts shall have free access to any natural person or
legal entity’s acts, documents and information it needs to perform its control functions.
(2) All natural people and legal entities controlled by the Court of Accounts are obliged
to submit in due terms the requested acts, documents and information and ensure access to their
premises.
(3) If the Court of Accounts comes across information, which constitutes state, official,
commercial or personal secret, it is obliged to observe its confidentiality and disclose it
exclusively to the authorized agencies.
Article 8. – The Court of Accounts shall have its own budget envisaged as distinct item in
the state budget and is entitled, on a monthly basis, to draw funds from the State Treasury
account within the approved limits.
Article 9. – The organisation structure and the staffing of the Court of Accounts are
established by the Parliament at the proposal of the President of the Court of Accounts.
Article 10. – (1) The Court of Accounts may participate to the activities of respective
specialised international organisations and become member of such.
(2) The Court of Accounts may cooperate with respective specialised international
organisations and exercise on their behalf control of the management of funds provided to the
Republic of Moldova if the international treaties, conventions or other agreements stipulate this
power.
Article 11. – (1) The Court of Accounts, if necessary, may cooperate with the General
Prosecutor’s Office, interior affairs bodies and other law enforcement and control bodies. In
doing so it shall avoid interfering into their activities related to the public prosecutor’s powers,
investigation, inquiry and justice.
(2) Whenever controls identify violations, the investigation of which constitute the
responsibility of other control or law enforcement bodies, the Court of Accounts shall are
develop control acts for each separate violation and submit them to the relevant bodies obliged to
undertake measures.
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(3) The Court of Accounts is entitled to request and to use in its activity control materials
developed by other control and law enforcement bodies with respect to entities subject of control
and the latter are obliged to submit them at its first request.
Chapter II
ORGANISATION AND OPERATION OF THE COURT OF ACCOUNTS
Article 12. – The Court of Accounts shall comprise 7 members, out of which 3 shall
represent the parliamentary majority and 4 shall represent the parliamentary opposition.
Article 13. – The Court of Accounts shall be run by the President and the deputy
President of the Court.
Article 14. – The President of the Court of Accounts shall be appointed by the Parliament
for a five - year mandate with the total vote of elected deputies. The candidate shall be proposed
by the Chairman of the Parliament who makes the proposal subsequent to an obligatory
consultation with the parliament factions constituted within the law.
(2) The President of the Court of Accounts proposes candidates for the Court members at
the recommendation of the parliament factions constituted within the law. Each parliamentary
faction has the right to recommend at least 2 candidates.
(3) Members of the Court of Accounts shall be appointed by the Parliament at the
proposal of the President of the Court of Accounts for a five-year term with the total vote of
elected deputies.
(4) A person shall exercise the function of a member of the Court of Accounts for two
mandates at the most, which can be consecutive.
(5) In exercising their mandates the members of the Court of Accounts are independent
and immovable during its total term.
(6) Members of the Court of Accounts could be citizens of the Republic of Moldova with
relevant higher education in economics or law and a work experience in the last tens years
adequate for the activity of the Court of Accounts.
(7) The position of the President, the deputy President and the member of the Court of
Accounts is incompatible with any business activities, or part-time jobs with the exception of
teaching, scientific or other creative work, carried out in their spare time.
(8) Before taking the office the President, the deputy President and the members of the
Court of Accounts shall make the following swear: “I swear to faithfully serve the Republic of
Moldova, to observe the Constitution and the laws of the Republic of Moldova, to protect the
state property, democracy and the welfare of the people”.
(9) A vacancy of a member of the Court of Accounts may take place in the following
cases:
a)
b)
c)
d)
resignation;
expiration of the mandate term;
sentencing through a final court decision;
loss of citizenship of the Republic of Moldova;
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e)
f)
health reasons;
reaching the age of 65 years.
Article 15. – (1) The President of the Court of Accounts proposes the Parliament for
approval the candidate of the deputy President of the Court out of the members of the Court.
(2) The Parliament shall confirm a member of the Court in the function of the deputy
President of the Court of Accounts exclusively for the duration of his mandate of a member of
the Court of Accounts.
Article 16. – The President and the deputy President of the Court have the right to attend
the sessions of the Parliament and the Government.
Article 18. – (1) A function of an employee of the Court of Accounts is incompatible
with any other paid public or private function.
(2) The Parliament may recall the President and the members of the Court of Accounts of
their office ahead of term by majority vote of elected members of Parliament in the event of
unsatisfactory fulfilment of their official duties, violations of law or excess of their commission.
Article 19. –The employees of the Court of Accounts shall be appointed and relieved of
their functions by the President of the Court.
Article 20. – In carrying out controls the Court of Account may contract highly qualified
experts to deliver consultation and share expertise in different areas and remunerate them in
compliance with the law in force.
Chapter III
CONTROL FUNCTIONS OF THE COURT OF ACCOUNTS
Section I
General
Article 21. – (1) The Court of Accounts shall exercise control over the formation,
management and use of the public funds and the public property management. As the case may
be the Court of Accounts may seek services individual auditors or audit companies. The control
shall be carried out in line with constitutional provisions and modern accounting methods.
(2) By carrying out control the Court of Accounts is pursuing observance of laws and
implementation of the principles of rational use, expediency and efficiency in managing public
tangible assets and funds.
Article 22. – In exercising its functions the Court of Accounts shall carry out control over
the following:
a)
Formation and use of the state budget, the state social insurance budget funds, the
budgets of the territorial administrative units and the funds of compulsory medical insurance;
b)
Formation, uses and management of the special funds and the state treasury funds;
c)
Public debt formation and management, compliance with the state guarantees for
domestic and foreign loans;
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d)
The public institutions use of grants and funds allocated by the external donors for
the implementation of common programmes with the Republic of Moldova;
e)
Use of budget allocations for investment purposes, as well as subsidies and other
forms of state financial assistance;
f)
Execution, justification and efficiency of intergovernmental treaties in the
economical financial area;
g)
Process of the ownership change and privatisation of the public property;
h)
Activity of other control bodies and of the internal control bodies;
i)
Money issue, use of public loans and foreign exchange;
j)
Other activities, stipulated by organic laws to fall under the responsibility of the
Court of Accounts.
Article 23. The following shall be subject to the financial audit:
a)
Office of the Parliament, office of the President of the Republic of Moldova, the
Constitutional Court, the State Chancellery, the Supreme Court of Justice, the Economic Court,
the Prosecutor General’s Office, the National Commission of Securities, the Central Election
Commission.
b)
Specialised central public administrative authorities, other administrative
authorities, the National Bank of Moldova and the commercial banks with state shareholdings
exceeding 50 percents.
Article 24. – The Court of Accounts shall also carry out controls of the legal entities
irrespective on their ownership status and legal charter if these entities:
a)
Benefit of state guarantees on loans, subsidies and other state assistance;
b)
property;
Carry out management on a contract basis of the assets belonging to the public
c)
to the state.
Hold integral social capital or more than 50 percents of their social capital belongs
Article 25. (1) The Court of Accounts carries out subsequent controls in its office or at
site, which include financial revisions, thematic controls and performance controls (audits).
(2)) Controls carried out in the office of the Court of Accounts shall be based on
documents and information available in the Court of Accounts as well as on documents
requested in a written form by the President (deputy President) of the Court of Accounts from
the entity subject to control, or from other entity in possession of the needed documents,
irrespective on its ownership, legal and organisation status.
(3) Controls at the site shall be carried out based on a control order and a control
programme, signed by the President (deputy President) of the Court of Accounts.
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(4) In the need to confirm certain evidence, which is not totally relevant, the President
(deputy President) of the Court of Accounts shall issue decrees requesting verifying controls
over any entity subject of control.
(5) The Court of Accounts shall make comments on the draft of the state budget law, the
draft of the law on the state social insurance budget and the funds of the compulsory medical
insurance for the respective year.
Section 2
Control procedures
Article 27
(1)
The Court of Accounts shall control, either in its offices or in the field, the
financial reports submitted by the controlled entities.
(2)
The control/audit procedures and other related actions are defined by the standards
(norms), developed and adopted by the Court of Accounts in compliance with the law in force.
(3)
The Court of Accounts employees, responsible for the control procedures, shall
draft control reports (documents) on the identified financial violations and submit them to the
controlled entity for commentaries and objections.
(4)
The control reports shall be examined by the Court of Accounts in the presence of
representatives of the respective public authorities. The failure of public authorities’
representative to show up, unless they have well grounded reasons, cannot prevent the Court of
Accounts from passing the decree, if they have been notified in the stipulated way.
(5)
The Court of Accounts shall rule decrees on these reports in compliance with the
law in force. The Court of Accounts decrees represent the main method of providing the
controlled entities, their superior bodies, and the society with independent information, solutions
and guarantees on the legality, conformity and accuracy of the conducted economic and financial
transactions and drafted financial reports, as well on the economy, efficiency and effectiveness
of the use of public assets by the controlled entities. The decrees shall be clear and well
documented.
(6)
The decrees shall be concise and summarize the control results and evidence. The
draft decrees shall be developed by the heads of Court of Accounts departments (directorates) on
the base of control reports (documents), developed by controllers. They shall consist of the
following items:
a) title of the decree;
b) overview on the background of the controlled activities, including the institutional
background;
c) objectives of the controlled entity’s activity;
d) description of the methodology of evidence collection and analysis, specifying their
sources;
e) activity assessment criteria;
f) the control findings or, at least, the data deemed as relevant for the decree addressees
and users;
g) conclusions referring to the control objectives;
h) requirements and recommendations about the necessary corrective actions.
(7)
The recommendations shall be made only if the control process identifies possible
and efficient remedies for the committed violations. They shall present the main directions of the
proposed changes, avoiding a detailed description. The draft decree shall clearly stipulate the
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name of the person, who committed the violations and the name of the person, responsible for
their remediation.
(8)
The draft decree shall be examined by the Court of Accounts members together
with the control team, project authors, representatives of the controlled entity, and other people,
as decided by the President of The Court of Accounts. The Court of Accounts members can
request the opinion of independent experts (specialists) in form of consultations, conclusions, or
recommendations.
(9)
The Court of Accounts members may modify the conclusions and
recommendations stipulated in the draft decree if the controlled entity or another person submits
new evidence. The draft decision may be revised and changed substantially, if the new evidence
greatly impacts the control findings. In such a case, the new decision shall be re-examined
together with the controlled entity.
(10) The Court of Accounts decrees are official documents and shall be executed by all
public authorities and the sanctioned legal entities and individuals.
(11) The decrees passed by the Court of Accounts in relation to control reports shall be
submitted to the budget executors of the appropriate public authorities. The violations shall be
reported to competent superior body and, if needed, to the appropriate financial and legal
authorities.
(12) The heads of public authorities shall inform the Court of Accounts about the
undertaken measures in relation to the violations revealed during the control process.
Chapter IV
Other Functions of the Court of Accounts and Obligations of its Employees
Section 1
Other Functions of the Court of Accounts
Article 28 – Besides the control function, the Court of Accounts shall:
a)
develop and approve regulations and documents on the Court of Accounts internal
organization and its annual financial control programme;
b)
comment on the draft state budget, draft state social insurance budget, and draft
compulsory health insurance funds;
c)
change its internal organization, in compliance with the law in force and within
its legal competence and budgetary constraints;
d)
discuss and submit its own draft budget as to integrate it into the state budget;
e)
appoint heads of departments;
f)
evaluate and analyze the activity reports of the Court directorates on a periodical
basis;
g)
demand penalization of people responsible for violating the use of public financial
resources and request compensation of the country damages after providing the involved people
with the opportunity to ground their position and justify their actions related to the violations
revealed during the control;
h)
submit the revealed cases of financial violations with constituent elements of
offences to the Centre for Combating Economic Crimes and Corruption;
i)
request the dismissal of people who either committed severe law offences or
failed to comply with the law.
Article 29
The Court of Accounts shall carry out its duties having a membership of at least 5
members, and shall pass decrees on the conducted controls with the majority vote of its
members.
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Article 30
(1)
The President of the Court of Accounts shall:
a)
run and organize the activity of the Court of Accounts, manage the financial
resources according to its approved budget;
b)
represent the Court of Accounts interests in the relations with public authorities
and agencies, as well as with relevant domestic and international agencies, and guarantee stable
relationships with them;
c)
summon and chair the Court of Accounts sessions, monitor the implementation of
the adopted decrees;
d)
submit the Court of Accounts reports and comments to the Parliament;
e)
appoint and dismiss the employees of the Court of Accounts in conformity with
the law in force, including the employees engaged on a five-year individual contract;
f)
guarantee order and apply disciplinary sanctions, if needed, in compliance with
the law in force.
g)
report to the Parliament about vacancies of the Court of Accounts, approves the
list of vacancies, which will be occupied on a contest basis;
h)
establish control teams that will operate only during the implementation period of
the assigned tasks;
i)
carry out the controls requested by the Parliament, as well additional controls that
are not stipulated in the annual financial control programme of the Court of Accounts;
j)
announce and carry outs contests to occupy the vacancies of the Court of
Accounts directorates and departments;
k)
authorize the conclusion of labour and service contracts, as requested by the Court
of Accounts operation.
(2)
In the absence of the President of The Court of Accounts the duties stipulated in
paragraph (1) shall be carried out by the vice-president of the Court of Accounts.
Section 2
The Obligations of the Court of Accounts members
Article31
(1)
The Court of Accounts members shall:
a)
fulfil their obligations impartially and in compliance with the Constitution;
b)
vote for or against the Court of Accounts documents; abstaining is not allowed;
c)
report in writing to the President of the Court of Accounts about any situation that
might run against the exercised mandate;
d)
avoid any involvement in commercial advertising;
e)
not participate in any activities contradictory to the principle of independence and
dignity of the Court of Accounts membership;
f)
keep the secret of vote and consultation;
g)
submit, in compliance with the law, the income and real estate declaration.
(2)
If the Court of Accounts member breaks any of the obligations stipulated in
paragraph (1), he/she shall be dismissed.
Article32
The Court of Accounts members cannot be investigated, detained, arrested, or sanctioned
with administrative and juridical penalties, unless requested by the General Prosecutor.
Chapter V
Rights, Obligations, and Liabilities of the Court of Accounts employees
Article 33
The Court of Accounts employees have the right, on the basis of the authorization issued
by the CA President, to:
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a)
request any document or other materials related to the economic and financial
activity of the public authorities.
b)
freely enter the facilities, warehouses, shops, production halls and other places
possessed by local authorities to check the existence and use of the state owned material and
financial resources;
c)
receive written and
verbal explanations and copies of the documents related to the public authority’s activity from
the directors and other responsibles of public authorities.
d)
withdraw documents
and seal the places where documents, money and other goods of the public authorities are stored;
e)
request copies of
financial excerpts from the National Bank and other commercial banks, where the state owns a
share in the equity.
Article 34
The Court of Accounts members and employees are not allowed to:
a)
be members of political
parties or carry out public activities with a political character;
b)
reveal the state,
working, trade or individual secret.
Art 35
The Court of Accounts employees bear responsibility, in compliance with the law in
force, for misrepresentation of the control results, submission of wrong data to the Court of
Accounts or other institutions.
Chapter VI
FINAL PROVISIONS
Article 36
(1)
The Parliament,
Moldovan President, Government, ministries and departments, other public authorities, the
National Bank shall submit to the Court of Accounts, on compulsory terms, the adopted
normative acts, which refer to the operations listed in Article 22.
(2)
The public authorities
shall help the Court of Accounts officials to fulfil their tasks, assist them during the controls, and
provide them with space, transportation and communication means, depending on the control
requirements.
Article 37
The Parliament shall monitor Court of Accounts’ observance of the budget.
Article 38
Law no. 465-XII dated January 31, 1991 on the State Control Department of the Republic
of Moldova shall be annulled.
Parliament Chairman
Chisinau December 8, 1994
No. 312-XIII.
Petru LUCINSCHI
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