INTRODUCTORY NOTE - Tribunal de Contas

Portuguese
Court of Auditors
ANNUAL REPORT
2008
MAY 2009
1
Tribunal de Contas

Technical Information Form
Direction
Guilherme d’Oliveira Martins
President of the Court of Audit
General Coordination
José F. F. Tavares
Director-General
Technical Coordination
Eleonora Pais de Almeida
Auditor-Coordinator (Planning and
Consultancy Department)
Tecnical Team
Conceição Ventura
Auditor Chief
Maria Estrela Leitão
Higher Technical Staff (PCD)
Sónia Fernandes
Higher Verifier Technical Staff (PCD)
Paulo Andrez
Higher Technical Staff (PCD)
Computer Support
João Carlos Cardoso
Director (Information Technology System
Department)
Binding Book
Afonso Rebelo
Operational Assistent (Financial and
Economic Management Department)
Augusto Santos
Technical Assistent (PCD)
Participation of the various areas in the preparation of the report:
COURT
Vice- President Counsellor
Carlos Alberto Morais Antunes
Counsellor Judges
(by order of precedence for 2009)
Carlos Manuel Botelheiro Moreno
João Alexandre Gonçalves de Figueiredo
Manuel Henrique de Freitas Pereira
Raul Jorge Correia Esteves
António Manuel Fonseca da Silva
Eurico Manuel Pereira Lopes
Nuno Manuel Lobo Ferreira
Manuel Roberto Mota Botelho
José Manuel Monteiro da Silva
João Manuel Ferreira Dias
Helena Maria Ferreira Lopes
António Manuel dos Santos Soares
António Augusto Santos Carvalho
Helena Maria Abreu Lopes
José Luís Pinto Almeida
António José Avérous Mira Crespo
Alberto Fernandes Brás
PUBLIC PROSECUTION SERVICE
Assistants of the Attorney General
António Lima Cluny
Daciano Farinha Pinto
Jorge da Cruz Leal
Orlando Ventura da Silva
Maria Joana Marques Vidal
2
SUPPORT SERVICES
Deputy General Directors
Márcia da Conceição Cardoso Vala
Fernando Flor de Lima
Ana Mafalda Morbey Affonso
Auditors-Coordinators/Office Directors/Auditors-Heads/Heads
of Division
and other staff in charge
Abílio Pereira de Matos
Alberto Miguel Pestana
Alexandra Rocha Pinto
Ana Luísa Fraga
Ana Luísa Nunes
Ana Maria Bento
Ana Paula Valente
António Afonso Arruda
António Botelho Sousa
António Costa e Silva
António de Freitas Cardoso
António Manuel Garcia
António Marques MArta
António Marques Rosário
António Sousa e Menezes
Carlos Augusto Cabral
Carlos Maurício Bedo
Cristina Maria Cardoso
Francisco José Albuquerque
Francisco Bianchi Moledo
Fernando Morais Fraga
Helena Cristina Santos
Helena Cruz Fernandes
Isabel Cacheira Relvas
Jaime Gamboa Cabral
João Carlos Cardoso
João José Medeiros
João Oliveira Camilo
José Alves Carpinteiro
José Manuel Costa
Judite Cavaleiro Paixão
Júlia Maria Serrano
BFLnor Corte-Real Amaral
Luis Filipe Simões
Luís Manuel Rosa
Maria Augusta Alvito
Maria Conceição Antunes
Maria da Conceição Lopes
Maria da Luz Faria
Maria Luísa Bispo
Maria Gabriela Ramos
Maria Isabel Viegas
Maria José Sobral Sousa
Maria Odete Cardoso Pereira
Maria Susana Ferreira da Silva
Nuno Zibaia da Conceição
Patricia Ferreira Silva
Rogério Vieira Luís
Rui Fernandes Rodrigues
Salvador Lopes de Jesus

INTRODUCTORY NOTE
3
Tribunal de Contas
The Court of Auditors, the national body carrying out the mission of external control of public finance,
presents its activity, among other means, trough the Annual Report.
The 2008 year was the first part of the triennial cycle of planning, aiming the quality and effectiveness
strengthening of the financial control, focusing it in the great cash flows, high risk areas and innovation
domains of public management. The presented results state the contributions for that purpose.
During 2008, over 1400 entities, covering the a priori, the concomitant and the successive controls and
the effectiveness of the responsibility, were subject to some type of control by the Court of Auditors.
Considering the functioning of the Court, it should be emphasized the assessment of the execution of
the 2007 State Budget on its whole, presented in the Opinion on the State Budget Account, including
that of the Social Security, of the same year, as well as the preparation of the Opinions on the 2006
Autonomous Regions Accounts.
There has been a strong increase in the number of concomitant control audits, carried out mainly to
seal approved contracts amendments of public Works. This is a direct and prominent consequence of
the amendments resulted from the Act 48/2006, of 29 August.
As far as the qualitative aspect is concerned, the Court control action also intends to produce an
pedagogical effect. Thus more than punishing, it consists in preventing, evaluating and recommending
improvements. Within this context, its observations, conclusions and recommendations production – in
the Opinion on the General State Account, in the audit report, in the endorsed accounts and in the
seal approval processes –, and its immediate provision to Parliament, Government, to the involved
entities and to citizens, is an indispensable contribute to a better management of the public money
and assets.
Therefore, the benefits of the external control occur, firstly, from the improvements introduced in the
public services with recommendations issued within the scope of its control actions. It should be noted
that in 2008, the Court issued 1229 recommendations.
In addition, the Court existence as an external financial control body constitutes, in itself, a deterrent
element of inadequate behaviours in the spending of public money. And its action, recommending improvements
and preventing or punishing illegalities, also affords a multiplying effect and reflects the
proposed betterments to the verified acts in future actions.
With a view to improve its own accountability, the Court is also interested in the progress, in a systematic
and gradual way, of the evaluation of its actions impact. Consequently, there was an increase of
the Courts recommendations follow-up audits, having been identified savings in the public funds of
11,5 million Euros.
It should be pointed out that, in 2008, it was created by the Act 54/08, of 4 September, the Council for
the Prevention of Corruption (CPC), independent administrative entity, acting next to the Court, whose
exclusive mission is the prevention of corruption. Within this context, the Court itself has been
strengthening its performance in the fight against fraud and corruption.

This Report was approved at the General Plenary Sitting of the Court of Auditors, during the 25 th May
2009 session, as determined in no. 2 of article 43 and in sub-paragraph b) of article 75 of Act no.
98/97. Under the terms of the Act, this Report is published in Series II of the Official Journal (OF) (article
9 of Act no. 98/97), and is also available on the INTERNET, on the Court’s web page
(www.tcontas.pt).
The Counsellor President
(Guilherme d’ Oliveira Martins)
4

CONTENTS
5
Tribunal de Contas
MAIN RESULTS ........................................................................................................... 7
1. THE COURT OF AUDITORS .................................................................................. 9
1.1. JURISDICTION AND POWERS ................................................................................ 9
1.2. STRUCTURE ..................................................................................................... 9
1.3. MAIN ADDRESSEES OF ITS ACTS ...................................................................... 9
2. ACTIVITY RESULTS ............................................................................................. 10
2.1. DELIBERATIONS AND DECISIONS ............................................................................... 11
2.2. A PRIORI FINANCIAL CONTROL .................................................................................. 12
2.3. CONCOMITANT FINANCIAL CONTROL............................................................................ 18
2.4. SUCCESSIVE FINANCIAL CONTROL............................................................................... 21
2.5. ENFORCEMENT OF FINANCIAL LIABILITIES ........................................................................
3. ACTIVITY OF THE PUBLIC PROSECUTION SERVICE AT THE PCA ................ 44
4. RELATIONS WITH OTHER NATIONAL BODIES AND INSTITUTIONS .............. 45
4.1. PRESIDENT OF THE REPUBLIC, PARLIAMENT (“ASSEMBLY OF THE REPUBLIC”), GOVERN-
MENT, LEGISLATIVE ASSEMBLIES OF THE AUTONOMOUS REGIONS AND REGIONAL GOVERN-
MENTS ............................................................................................................................45
4.2. INTERNAL CONTROL BODIES........................................................................................... 46
4.3. OTHER INSTITUTIONS .................................................................................................... 46
4.4. THE MEDIA ............................................................................................................... 46
5. COMMUNITY AND INTERNATIONAL RELATIONS .............................................. 47
5.1. COMMUNITY RELATIONS ...................................................................................................47
5.2. INTERNATIONAL RELATIONS ..............................................................................................48
6. RESOURCES USED .............................................................................................. 51
6.1. HUMAN RESOURCES ...................................................................................................... 51
6.2. FINANCIAL RESOURCES ................................................................................................. 53
6.3. INFORMATION SYSTEMS AND TECHNOLOGY .................................................................... 55
ANNEX I - Concomitant control - Audits finished in 2008 .................................................... 57
ANEXO II - Successive Control – Audits finished in 2008 ................................................ 60
SIGLA .................................................................................................................................... 68

MAIN RESULTS
The following results were particularly important during 2008:
Within the scope of the concomitant and a priori control:
7
Tribunal de Contas
. A priori control of 1787 acts, contracts and other documents generating expenses correspond
to total expenses of 5,7 thousand million Euros. These acts were sent by 770 entities.
. More transparent contracts and even, in some situations, with reduction of the financial
charges assumed by the respective entities, as the result of devolution of seal approval
processes for a fuller preliminary instruction or doubts clarification (there were 2349 devolutions).
. It was prevented the spending, not according to binding Acts, without budgetary suitability or
surpassing the legal limits of indebtedness, corresponding to 68 acts and contracts to which
it was refused the seal approval, of 631,5 million Euros (11,1% of the global expenditure
submitted to the seal approval). This Court action had a deterrent effect for the future proceedings
regarding similar illegalities and contracts..
. 55 audits of concomitant control, identifying the irregular expense that amounted to 19, 2
million and issuing the observations and recommendations considered pertinent in each
case.
The most relevant irregularities detected are related with the object of the contracts additions,
as well as with its grounds, because they do not result from undue circumstances; with
the delay in the delivery to the Court of the approved contracts additions within the first 15
days of its implementation; and with the lack of a prior appropriation note in the expenses authorization
and in the record of the commitments before third party.
As far as the successive control is concerned:
Mission – It controls the legality and the regularity of the
public revenues and expenditure, rules on the accounts
which the Act has ordered to be submitted to it, gives opinion
on the General State Account and on the Autonomous Regions
Accounts, assesses the sound financial management
and enforces liability for financial offences.
. Opinion on the 2007 General State Account, including that of the Social Security, and Opinions
on the 2006 Autonomous Regions Accounts.
. Opinions on the 2007 Accounts of the Assembly of the Republic and of the Azores and Madeira
Legislative Assemblies.
. 93 audits: 51 directed towards the strengthening of the quality, timeliness and effectiveness
of the Court financial control (achievement of Strategic Objective 1); and 42 aiming the enhancement
of the financial control focused in the large financial flows, in areas of greatest risk
and of innovative management of public resources (SO 2). Over 135 entities were covered
by successive control auditing (including 22 of the State Owned Company Sector).

. Due to the enlargement of the Court remit, irregularities in public expenses detected in the
audits carried out totalled over 1288 million Euros. Within this amount, it should be stressed
the several situations, such as: overhang payments, carried out through specific treasury operations,
undue accounting of funds inflated the operational results; high level of appropriations,
in all the Marine projects, in 2006 and 2007, that had overestimated the budgetary expenditure
with impact on the transparency of the public accounts and of the each year General
State Account deficit. The Court recommended the correction of the detected irregularities.
. In the course of the accomplished audits and as a result of the Court action, some proceedings
were rectified and the situations considered illegal were regularized, by the involved entities
initiative.
. Throughout the follow up of the recommendations compliance issued by the Court, public
funds savings were indentified totalled 11,5 million Euros, resulting essentially from the
HRALVT credits related with the Hospital Fernando Fonseca billing of the prescription medicine,
diagnostic and therapy aid, which were deducted to the twelfth payments from January
to May 2008.
. Internal verification of 467 accounts, related to 371 entities, corresponding to a financial
value of 39.546 thousand million Euros. 9 of these accounts were refused ratification.
. In the ambit of the internal verification of accounts, it was also identified irregular expense
of about 178 million Euros, whose irregularities have a very different nature: balance brought
forward certified with reserve because it was not possible confirm the regularization of all operations
in passage; loans raised in former managements which were not reflected in the expenditure
and revenue account; and the existence of situations where the appropriations and
commitments were carried out after the bill date.
Within the sphere of financial liabilities enforcement
Vision – It is an institution that assists the citizens upon
which they rely. It promotes a more effective and efficient
management of the available public resources and
instigates an integrity, competence, accountability and
transparence culture.
. During the enforcement of financial liabilities, recoveries were ordered and fines were
imposed totalling about € 180 646.
8

1. THE COURT OF AUDITORS
1.1. JURISDICTION AND POWERS
Tribunal de Contas
Under the terms of the Constitution and Act, the Court of Auditors is the body for the external control of
public finances. It is independent in relation to the other sovereign bodies and all other entities.
Its mission is as follows:
� Inspection of the legality and regularity of public revenue and expense;
� Judgement of the accounts that must be submitted to it by Act;
� Deliver an Opinion on the General State Account (GSA) and Autonomous Region accounts;
� Assessment of financial management; and
� Enforcement of liability for financial infractions.
The Court has competencies with respect to a priori control, concomitant control and successive
control and competency with respect to the enforcement of financial liabilities. It also has, accessorily,
regulatory and consultative competencies.
The Court’s action is carried out with the concession or refusal of prior approval to the cases subjected
to it, through the verification of the accounts of the entities subject to their rendering and through the
undertaking of audits, both during the period of execution of expenses, and after the closure of the
financial year. The Court also gives opinions on the GSA and on the Autonomous Regions Accounts.
Its jurisdiction implies that all entities administering or using public money, especially services and
bodies within the Public Administration, including public companies, as well as private Act entities that
manage public monies are subject to control by the Court. At the end of 2008, the following entities
active were subject to the Court’s control: 12 121 entities at Headquarters, 628 entities are in the
Regional Chamber of Azores and 328 in the Regional Chamber of Madeira.
1.2. STRUCTURE
In order to exercise its functions, the Court has 19 Counsellor Judges (1 of them is the President)
integrated in three specialized chambers at its Headquarters – 1 st , 2 nd and 3 rd Chambers – two
chambers of generic competence in the Autonomous Regions of Azores and Madeira, with the respective
Technical and Instrumental Support Services.
The Public Prosecution Service has a seat at the Court, represented at the Court’s Headquarters by
the Attorney General of the Republic (AGR), who can delegate its functions to one or more assistant
attorneys-general, and in the Regional Chambers to the magistrate designated for this effect by the
AGR.
1.3. MAIN ADDRESSEES OF THE RESULTS
The main addressees of the results of the Court’s activity are:
� The Citizens who expect the Court to safeguard and ensure that public resources are applied
exclusively for the benefit of public interests;
� The President of the Republic to whom the Act orders to send the Court Annual Report;
� The Assembly of the Republic, especially regarding the Opinion on the General State Account
and audit reports;
� The Legislative Assemblies of the Autonomous Regions, namely in relation to the Opinions
on the Regions Accounts produced by the Court Regional Chambers;
9

� The persons responsible for the entities audited and bodies supervising or superintending
them, regarding the respective audit reports with the recommendations formulated by the
Court;
� The entities producers of acts and contracts, regarding the decisions of prior approval concession
and refusal.
2. ACTIVITY RESULTS
The Court and its Support Services activity was directed to the accomplishment of the following strategic
objectives (SO) approved for the triennial 2008-2010:
• Strengthen the quality, timeliness and effectiveness of the Court technical and jurisdictional financial
control (SO 1);
• Intensify the financial control centred on large financial flows, areas of greater risk and areas
of innovative public management and reinforce the pedagogical guidance and the enforcement
of financial liability (SO 2);
• Promote, in a systematic and gradual way, the assessment of the Court control actions impact
(SO 3).
In order to fulfil these objectives, the Opinions on GSA and on the Autonomous Regions Accounts
were delivered, 1787 prior control acts and contracts were controlled, 148 audits and external verification
of accounts (93 of successive control and 55 of concomitant control) were accomplished and 467
accounts were verified internally.
During the exercise of its financial control functions, the Court formulates recommendations to the
competent bodies, and can do so at all and any instance, with the exception of the 3 rd Chamber. The
General Plenary Sitting formulates recommendations on the Opinion on the General State Account;
the 1 st Chamber does so within the context of a priori or concomitant control; the 2 nd Chamber does so
in the exercise of concomitant or successive control and the Regional Chambers of Azores and Madeira
do so within all the above-mentioned contexts.
The recommendations fundamentally seek to suppress deficiencies, avoid future illegalities, improve
the accountability of accounts and contribute to enhanced public management – more efficient, economic,
effective and transparent – with the ultimate purpose being to contribute to the improved use of
public money.
In points 2.3 and 2.4, it is pointed out some of the most relevant recommendations, issued by the
Court in 2008 and, also, the recommendations whose compliance was known in this year. There
should be as well underlined that the Act 48/2006, of 29 August, amendments introduced to the Organization
and Procedural Act of the Court (OPLC) have clarified the Court recommendations juridical
system.
10

No. of recommendations issued in 2008
2.1. DELIBERATIONS AND DECISIONS
11
HQ ARC MRC TOTAL
In the Opinions on the GSA and ARA 81 26 25 132
In Seal Approval cases 173 15 11 199
In concomitant control audits 56 17 16 89
In successive control audits 395 103 16 514
In internal verification of accounts 213 81 1 295
Total 918 242 69 1229
Tribunal de Contas
The Court deliberations and decisions are given in General Plenary Sitting, in Plenary Sittings, in subchamber
sittings and in daily seal approval sessions, at the Headquarters, and in weekly ordinary session,
at the Regional Chambers.
In 2008, the General Plenary Sitting of the Court of Auditors, in which all the Counsellor
Judges take part, including those of the Regional Chambers, during the 9 sessions held, assessed
and approved the Opinions on the 2007 General State Account and Assembly of the Republic
Account, the 2007 Annual Report, the Action Plan and the Court Budget projects (Headquarters
and Regional Chambers) for 2009. In this year, it should be also emphasized, the Vice-President
Counsellor’s election, the appointment of the Counsellor for the Informatics Commission and the appointment
of two new judges in the Chambers.
The Standing Committee, presided over by the Court President and comprising of the Vice-
President and a Judge of each Chamber, met during 6 sessions, and approved the project of the 2007
Annual Report, the Introductory General Part of the 2009 Action Plan and proposals of the judges’ appointment
in the Chambers.
The 1 st Chamber, in addition to the daily sessions for the prior approval, met during 56 sessions,
gave 20 judgements and approved 3 resolutions, and 47 audit reports of the concomitant control.
In Sub-chamber sittings comprised of three Counsellor Judges, 168 judgements. In daily sessions
of prior approval, 960 numbered decisions were given.
The 1 st Chamber also imposed fines of € 7 296, according to the article 66 of the OPLC. It were also
paid, prior to the judgment, fines foreseen in the article 65 of the same Act of € 57 368.
The 2 nd Chamber, in 33 sessions in Plenary sittings, approved, in addition to the 2009 inspection
programme, 7 resolutions, 1 instruction, 57 audit reports, 1 external verification of accounts report
and 7 internal verification of accounts reports. It ratified the internal verification of 366 accounts.
It were imposed fines of € 20 160 within the article 66 of the mentioned Act. It were also paid,
prior to the judgment, fines foreseen in the article 65 of the same Act of € 39 082.
The 3 rd Chamber, in 17 sessions – 8 in Plenary sittings and 9 in judgement of 1 st instance –, gave 9
judgements (1 on a ordinary appeal of fine deriving from the 1 st Chamber, 6 of appeal of financial liabilities
judgement procedures, 1 of an appeal of accounts judgment and 1 of a RCM appeal) and 6
sentences (4 of accounts judgment, 1 of de financial liabilities judgment and also ordered the extinction
of the instance due to voluntary payment in 1 procedure by one defendant).

Regarding the cases of financial liability (Headquarters – 3 rd Chamber), the recovery of € 23 585 was
ordered resulting from undue payments. Fines valued at € 15 079 were imposed and one of them was
voluntarily paid of € 1153.
In the Regional Chamber of Azores (RCA), there were 20 ordinary sessions, 1 special collective
session related to the approval of the Opinion on the 2006 Account of the Autonomous Region of
Azores and of the Opinion on the 2007 Account of the Legislative Assembly of the Autonomous
Region, and 100 prior approval sessions. Regarding the decisions, 18 audit reports (5 of concomitant
control and 13 of successive control), 30 reports of internal verification of accounts were approved
and 160 decisions were taken related to prior approval cases. In the RCA, fines valued at €
3409 were imposed according to the article 66 of the mentioned Act, within the scope of the prior and
successive controls, according to the article 66 of the OPLC. It were also paid, before the judgment,
fines foreseen in the article 65 of the same Act of € 10 695.
In the Regional Chamber of Madeira (RCM) 2 special collective sessions, 16 ordinary sessions
and 44 daily sessions of prior approval were held. 2 deliberations related to the Opinions on the 2006
Autonomous Region of Madeira Account and 2007 account of the Legislative Assembly of the
Autonomous Region, 18 numbered decisions related to prior approval cases, 70 ratifications
(and refusals of ratification) of accounts were given, 11 audit reports (3 of concomitant control and 8
of successive control) and 2 reports of external verification of accounts and 1 report of internal
verification of account were approved. Regarding financial liability cases, the Court held 15 judgment
sessions and gave 5 sentences, having imposed sanctions valued at € 2823.
2.2. PRIOR FINANCIAL CONTROL
The 1st Chamber of the Court at Headquarters and RCA and RCM is responsible for a priori financial
control, exercised through the concession or refusal of the Prior approval to acts and contracts,
under the terms of the Act. This consists in the examination of the financial legality of the acts,
contracts and other instruments generating expenses or representing (direct or indirect) financial liabilities
typified in the Act.
For the effects of a priori control, 2095 new cases were admitted to the Court (Headquarters and
Regional Chambers) in 2008 which corresponds to an increase of 11% in relation to 2007.
1787 cases were subject to control, related to acts and contracts sent by 770 entities of the Central
and Local Administration and of the Autonomous Regions and of the State Owned Companies Sector,
corresponding to expenses valued at 5.7 thousand million Euros (Tables 1 and 5).
12

2500
2000
1500
1000
500
0
Table 1
Procedural movement of the Prior approval in 2008
Seal approval cases and types of decision
13
Tribunal de Contas
* Includes the compliance ratifications
** Concession of prior approval in the acts, contracts and other documents subject to a priori control, 30
days after admission to the Court, without its decision.
Graphic 1
Procedural movement of the Prior approval in 2008 and 2007
Admitted in
the years
Returned on
The entities
Request and
cancelled
HQ
Returned not
subject to prior
approval
* Includes the compliance ratifications
Regional Chambers
1ª Chamber Azores Madeira
Prior approval
refused
TOTAL
Transferred from 2007 73 13 20 106
Entered in 2008 1 800 167 128 2 095
Total for the analysis in 2008 1 873 180 148 2 201
Returned under the entity request and
Cancelled 33 2 35
Returned not subject to prior approval 175 14 4 193
Refused the prior approval 44 1 23 68
Prior approved* 1 420 159 100 1 679
Tacit prior approval ** 40 40
Total ended in 2008 1 712 176 127 2 015
Transferred to 2009 161 4 21 186
Prior approved*
In 2008, from the total cases concluded, 1719 were prior approved, 68 were refused the Prior approval
and 40 were Tacitly Prior Approved.
The refusal of the Prior approval to acts and contracts by the Court was mainly due to the following
reasons:
. False representation of the legal clauses which would allow using the private treaty in the awarding of
services;
2008
2007

. Reiteration in the use of the industrial or trademarks in the bill of quantities - article 65, points 5 and 6, of
the Decree-Act 59/99, of 2 March;
. Omission of the advertising of tenders in the OJEU, when it was compulsory;
. Supply, by the contracting entity, of tender pieces copies at prices higher than its real cost, infringing the
point 4 article 62 of the Decree-Act 59/99, of 2 March;
. Solicitation to the competing bidders of a basis project without being a work demanding technical complexity
or specialization, violating thus the point 4 article 62 of the Decree-Act 59/99, of 2 March. These
entities are backsliding in such illegality;
. Reiteration in demanding requisites - qualifications, in the public Works tender procedures regulations,
higher than the legally defined, regarding the authorizations of the building contractor’s registrations;
. Amendments to the Tender Document clauses, in addition to the infringement of the article 38 of the
Regulative Decree 10/2003, of 28 April, and of the article 42 of the Decree-Act 197/99, of 8 June, having
as consequence the violation of the principles of legality, transparency, competition and stability, preview
in the article 7, point 1, articles 8, 10 and 14 of the last legal document;
. Contracting, without legal basis, insurances in the areas of health/group, of life/group, and of personal accident,
which implies the assumption of expenses with a private social protection system, together with a
public system with identical covering for the municipality officers;
. Settling of sub criteria and of different relative weightings, after the prescribed period for the submission of
tender. Thus, violating the laid down in articles 66, point 1, paragraph e) and 100, numbers 1 and 2 of Decree
Act 59/99, of 2 March, and of point 21 of the invitation to tender-type program approved by the Ordinance
104/2001, of 21 of February, infringing also the article 94, pint 1 of the DL 197/99, of 8 June;
. Contracting the entity without holding the permission legally required for the implementation of the services
inserted in the supply object;
. Infringement of the legislation applicable in the use of loan funds - Act 67-A/2007, of 31 st December, and
the Act 2/2007, of 15 January;
. Reiterated illegal conduct which was object of former recommendation of the Court of Auditors.
During this year, 2349 processes were also returned (2091 at Headquarters, 138 at the RCA and
120 at the RCM) for instruction complements and doubts clarification and 2317cases were reopened
(2043 at Headquarters, 154 at the RCA and 120 at the RCM).
The returning of cases enabled, to a significant extent, the suppression of the illegalities and irregularities
detected, conducting, also, in some cases, to the assumed charges reduction by the
respective entities and, consequently, the concession of the Prior approval to the acts and contracts.
Table 2
Prior approval cases in 2008, by type of decision and procedure
Types of decision
Work -
Contracts
Acquis.
Property
14
Type of procedure
Supplies-
Financial
nature
Provision
of services
Refused the Prior Approval 18 22 19 6 3 68
Prior approved
With compliance ratification
Prior approved in daily session
906
193
571
74
31
43
248
134
111
254
254
122
48
67
75
4
71
1 679
410
1 117
Without recommendations 0
With recommendations
Tacitly prior approved
142
15 1
3
2 10
7
5 7
152
40
Total 939 75 272 283 133 85 1 787
Other
TOTAL

15
Tribunal de Contas
Of the total amount of cases submitted for the Prior approval, approximately 50% are cases concerning
works contracts, 30% are cases with a financial nature and supply of goods cases, 7%
supply of services and the remainder corresponding to the acquisition of property or representing
other charges and responsibilities (see Table 2).
Graphic 2
Regarding its distribution by Public Administration levels (Table 3 and Graph 2), the majority, approximately
65%, come from Local Administration entities, approximately 19% Central Administration
entities, 10% State Owned Companies Sector (SOCS) and 6% Autonomous Region entities
(Azores and Madeira).
750
500
250
0
N
U
M
B
E
R
O
F
P
R
O
C
E
D
U
R
E
S
N.º de processos
1 000
800
600
400
200
0
Table 3
Origin of the cases submitted for the Prior approval in 2008
Administration
Central
Administration
Pub.Work
Contracts
Acquis.
Property
Supplies
Graphic 3
Regional Adm. Local Adm. SOCS
Type of procedure TOTAL
Financial Provision
Nature Of services Others %
Central Administration 89 2 141 2 84 16 334 18,7%
Regional Administration 52 15 43 5 115 6,4%
Local . Administration
679 56 42 280 40 63 1 160 64,9%
State Owned Comp. Sector 119 2 46 1 9 1 178 10,0%
Total ended 939 75 272 283 133 85 1 787 100,0%
Public Work Contracts
Acquisition of property
Supplies
Financial Nature
Provision of services
Others

Regarding its evolution, the number of cases of prior approval has slightly increased in 2008 comparatively
to 2007, as indicated in Table 4 and Graph 4
Tacitly prior approved
Prior approved
Refused the prior
approval
Table 4
Evolution in number of cases of prior approval
Types of decision
40
30
50
68
46
82
Graphic 4
0 500 1 000 1 500 2 000 2 500
Number of cases
Refusal of the Prior approval implies that the expense of the respective act or contract be blocked,
wholly or in part. In 2008, the total value of contracts refused the prior approval came to 631.5 million
Euros, corresponding to approximately 11,1% of the value of cases subject to the Prior approval. See
Table 5, which also presents this information for 2006 and 2007. Furthermore, the biggest impracticable
expense volume is attributed to contracts of financial nature sent by the Local Authorities, treated
by Headquarters, and to supplies of the Regional Administration of Madeira, treated by the RCM.
Of the entities subject to a priori control by the Court of Auditors, the following submitted cases for the
Prior approval: 782 in 2006, 766 in 2007 and 770 in 2008 (Table 5).
16
Years
2006 2007 Var % 2008 Var %
Refused the Prior Approval 89 46 -48,3% 68 47,8%
Prior Approved 2 065 1 660 -19,6% 1 679 1,1%
Tacitly Prior Approved 50 30 -40,0% 40 33,3%
Total ended 2 204 1 736 -21,2% 1 787 2,9%
1 679
1 660
3 143
2008
2007
2006

HQ and
RCA
RCM
. Indication of industrial or trademarks on quantity bills;
17
Tribunal de Contas
Table 5
Evolution in expenses subject to the Prior approval impracticable from 2006 a 2008
Number
Number of
of cases
entities
involved
2006 2007
Expenses
involved
Expense of refused
Cases
Number
cases
No.
of entities
involved
Expenses
involved
Expense of refused
cases
(amounts: in million Euros
HQ 1 959 704 2 887 356 73 921 2,6% 1 507 672 2 467 952 89 060 3,6% 1 504 669 4 934 595 547 746 11,1%
RC 142 56 199 379 12 600 6,3% 109 57 1 451 076 16 435 1,1% 160 63 228 919 425 0,2%
RC 103 22 136 118 4 882 3,6% 120 37 312 808 1 294 0,4% 123 38 548 468 83 364 15,2%
Total 2 204 782 3 222 852 91 403 2,8% 1 736 766 4 231 835 106 789 2,5% 1 787 770 5 711 982 631 535 11,1%
When exercising a priori control, and when faced with the illegality that alters or can alter the respective
financial result, the Court may concede the Prior approval with recommendations to the
services and bodies in the sense of suppressing or avoiding such illegalities in the future (in 2008, 152
cases were prior approved with recommendations – 126 at Headquarters, 11 at the RCA and 15 at
the RCM).
The following main illegalities were detected, among others (some were already detected in the refusal
of the prior approval), in the contracts submitted for the Prior approval to the Court in 2008 and
which resulted in the prior approval with recommendations:
. Disregard for the minimum period prescribed for the presentation of proposals, violating point 2 of article
83.º of the DL 59/99, of 2 March;
. Inappropriate advertising in tender procedures and in clarifications;
. Infringement of point 1 of article 60.º of the DL 59/99, of 2 March, because there were no appointments,
proceedings by proceedings and nominally, of the members of the respective tender advisory committees;
. Illegal exclusion of competitors during the phase of opening and analysis of proposals, violating articles
57 and 94 of DL 59/99, of 2 March;
. Consideration of the information pertaining to the technical and financial capacity of competitors during
the evaluation phase of the proposals, violating point 3 of article 100 of DL. 59/99, of 2 March and point 3
of article 55 of DL 197/99, of 8 June;
. Inadequate statement of reasons for the report of the technical and financial capacity analysis, as well as
for the report of the proposals analysis, violating article 98, point 5, and article 100, point 2, of the DL
59/99, of 2 March;
. Awarding made without respecting the previously established weighting factors in the tender pieces that
the contracting entity bounded itself;
. Non autonomization of the item regarding the assembling and dismantling of the constructional plant, disregarding
point 3 of article 24 of the DL 59/99, of 2 March;
. Assessment of the technical and financial capacity of the competing bidders disregarding for the indicators
of the general liquidity and financial autonomy and the respective reference values foreseen by the
applicable Ordinance;
. Indication, in the proceedings pieces, of industrial or trademarks, regarding assets to be incorporated in
the tender public works.
In general, most situations were characterized by a high level of compliance for the recommendations
formulated by the Court during controls conducted in previous years.
However, in 2008, the prior approval was refused to 5 contracts, at the Headquarters, due to noncompliance
with the former years’ recommendations:
No.
cases
No.
of entities
involved
2008
Expenses
involved
Expense of refused
cases

. Supply, by the contracting entity, of tender pieces with prices higher than its true cost;
. Requirement of the contractor registration.
Also at the RCM, there were 5 cases of recommendations non compliance, which has determined the
prior approval refusal to the respective contracts.
Ordinary Appeals
The final decisions regarding refusal, concession and exemption from the Prior approval, as well as
the final decisions related to the fees calculated by the Court, including those given by the Regional
Chambers, can be contested through appeal to the plenary sitting of the 1 st Chamber – ordinary
appeal.
Table 6
Ordinary appeals – movement of cases in 2008
Ordinary appeals and
type of decision
Headquarters
1 st Origin
Regional Chambers
Chamber Azores Madeira
Carried over from 2007 7 1 8
Distributed in 2008 28 1 8 37
Total for judgment in 2008 35 1 9 45
Preliminary dismissal
Judged well-founded 1 1 2
Judged ill-founded 17 3 20
Other situations 2 2
Total decisions in 2008 20
With this aim in view, in 2008, 37 appeals were lodged (8 more than in 2007) and 24 judgements
were given in ordinary appeal cases brought forth due to a priori control activity. Of these, 2 appeals
were considered well-founded, repealing the contested judgment, and 20 ill-founded, confirming
the contested judgement. Two appeals were preliminary dismissed and other of the appeals terminated
due to other motives. See Table 6.
The majority of the appeals resulted from public works and supply cases – see the following table (table
7).
18
TOTAL
4 24
Carried over to 2009 15 1 5 21

Table 7
Ordinary appeals – decisions by type of procedure in 2008
Type of decision
Preliminary dismissal
Public workscontracts
Acquis.
of property
2.3. CONCOMITANT FINANCIAL CONTROL
19
Supplies Financial
Nature
Tribunal de Contas
Concomitant control, of the competence of the 1 st Chamber, is exercised through audits of administrative
procedures related to acts which imply personnel expenses and to contracts which should not be
sent for a priori control by Act, as well as the execution of prior approved contracts, and to financial
activity before the closure of the respective management, of the competence of the 2 nd Chamber, in
addition to both of the above being of the competence of the Regional Chambers.
Following the entry into force of Act no. 48/2006, of 29 th August, which altered Act 98/97, the additional
contracts to prior approved contracts became exempt from a priori control. Nevertheless, they may
raise the accomplishment of concomitant audits. According to the same Act, the mandatory nature of
the delivery of these contracts to the Court should occur within the period of 15 days from the beginning
of its starting date, and the Court, within the scope of their analysis, may determine the accomplishment
of audits to them
In 2008, 833 additional contracts were admitted to the Court of Auditors, with the overall value of €
83 026 222, at the Headquarters; 65 with a value of € 10 533 036, at the RCA; and 18 with a value of
€ 5 302 512, at the RCM. Within the context of their analysis, the Court determined the undertaking
of 35 new audits (32 at headquarters, 2 at RCA and 1 at RCM), involving Central, Local and Regional
Administration entities.
Concomitant control, by focusing on the procedures in progress, simultaneously behaves in a preventive
and educational perspective. It allows that the acts and contracts be sent for a priori control
when illegalities are detected in the respective cases.
The audit reports of the concomitant control may also result in the verification of the respective account
and in enforcement of financial responsibilities procedure.
In 2008, 55 selective audits within the concomitant control were concluded with the approval of
the respective report (47 at Headquarters, of which 40 were carried over from former years, 5 at the Regional
Chamber of Azores and 3 at the Regional Chamber of Madeira, one of which was of recommendations
follow-up). 87% of those audits were undertaken to additional contracts. In the Annex I,
there is a list of these audits, as well as some of the main observations and recommendations issued
within the scope of them.
Other
Judged well-founded 1 1 2
Judged ill-founded 7 6 4 3 20
Other situations 2 2
Total decisions in 2008 9
Type of procedure
Total
7 5 3 24

Table 8
Concomitant Audits in 2008
Carried over
from
former years
Initiated
Headquarters 64 33 47 6 44
Regional Chamber of Azores 4 4 5
Regional Chamber of Madeira 2 6 3
TOTAL 70 43 55 6 52
Of the audits conducted by the 1 st Chamber, the Court found additional contracts whose Works were
not legally considered as “additional Works” according to article 26 of the DL 59/99, of 2 March. Thus,
not being possible private treaty, it was left out the previous proceedings legally appropriated based
on the contract value (the tendering procedure or restricted procedure with notice publication), in terms
of the paragraph a) of point 2 of article 48 of the mentioned clauses.
In tackling it, the Court recommended rigour in the preparation and control of the public Works projects
and the accomplishment of the legal constraints that rule the public Works contracts, namely articles
14, 26 and 4 of DL 59/99, of 2 March, and, at present article 370 and subsequent of the Public
Contracts Code (PCC).
In regard to RCA, it is worth mentioning the audit to the Directorate Regional of Culture and Independent
Entities – 2007 personnel procedures, which aimed the verification of the legality and
regularity of acts practiced in invitation to tender for the entering and promotion of officials, as well as
in proceedings connected with rendering service contracts with natural persons. It covered the Directorate
Regional of Culture – Central Services, the Regional Cultural Action Fund, the Public Library
and the Ponta Delgada Regional Archive.
Within the ambit of this work, the Court noted that: dependant work was improperly executed through
rendering services contracts, in the piecework modality; in the purchase of cleaning services there
were neglected the pre-contractual obligations based on the correspondent value; budgetary information
was not given in proceedings regarding invitation to tender entrance, access tendering invitations
and purchase of services; and in the proceedings connected with promotions the budgetary information
was based on the difference between the current expense regarding the remuneration obtained in
the source category and the expense correspondent to the destination remuneration (remunerative
growth value), which did not emphasize all expenses.
In the sight of this, the Court recommended that: the personnel recruitment to fulfil the permanent
labour requirements (dependant work) should not be accomplished by the award of services rendering
contracts; regarding the purchase of services it should be executed the adequate pre-contractual
procedure based on the estimated value of contract; and in personnel recruitment cases, regarding
the use of the spending appropriations, it should be indicated their adequate provisions and be
registered the respective phase (captivation of the appropriation aiming the expenditure execution).
Additionally, the audit carried out to the Municipality of Machico, following-up the recommendations
issued in a 2005 report and concluded that 79% of the 19 recommendations were complied. Notwithstanding,
the Court found that the Municipality did not adopt remedial measures tending to abandon
illegal practices in the commitment of expenditure and underwrite the assets, persisting in the expendi-
20
Concluded
with approved
report
Extinct /
shelved
cases
To be carried
over for
next year
3
5

21
Tribunal de Contas
ture splitting during the award of services. Thus, the Court reiterated the recommendations previously
issued falling on the same matters.
Within the sphere of concomitant control, the Court inferred irregularities amounting 19,21 million of Euros,
resulting essentially from: the object of the additional contracts to the initial contracts, as well as their grounding
do not enable it to consider that they are in whole or in part additional work; non-observance of the consignment
to the Court of additional to prior approved contracts in 15 days time-limit counting from its implementation
beginning; disregard for the previous provision by the expenditure authorization and of the registration
of the commitments undertaken before third parties; and the awarding of services in the margin of the
legal framework which guides the commitment of public expenditure.
Recommendations compliance – Activity Impact
In relation to the recommendations issued in the approved reports of this area, whose compliance
was known in 2008, it is worth mentioning, amongst others, the following:
� Accounting exemption, by the Madeira University (UMa), of the undertaken commitments after the appropriate
previous provision information has been drawn up in the expenditure authorization document, performing,
thus, the settled in article 45, no. 1, of the Budgetary Framework Act - BFL, and in article 13 of the Decree-
Act 155/92, of 28 of July;
� Compliance, by the UMa, of the prescribed in articles 15 and 16 of the University Teaching Career Statute
(SUTC), either as to assistant lecturer, as to visiting professor;
� Compliance, by the Municipality of Porto Moniz, of the foreseen by point 2.6.1. of National Plan of Accounts
for Local Authorities- NPALA, in view of the commitment and registering of the expenditure provision
phase, indicating the adopted measures for the effect;
� Verification, by the Municipality of Porto Moniz, of the taxpayers’ situation before the social welfare or social
security institutions, as it is determined in the article 11, no. 1, of the DL no. 411/91, of 17 October;
� Implementation, by the Municipality of Porto Moniz, of the regime established by the DL no. 197/99, of 8
June, concretely, as to the statement of reasons for resorting to the private treaty based upon the article 86,
no. 1, paragraph d), to the accomplishment of the awarding procedures required by Act based on the estimated
value of the contract to be concluded, and to the expenditure and proceedings authorization by the empowered
entity;
� Compliance, by the Regional Secretary for the Social Affairs, of the incompatibility regime applicable to
the members of the Madeira Regional Government, as it is consecrated in the DL no. 196/93, of 27 May.
2.4. SUCCESSIVE FINANCIAL CONTROL
Successive control, competence of the 2 nd Chamber and Regional Chambers, is exercised after the
financial year or management has ended and the annual accounts have been prepared.
One of the main forms of successive control consists in the assessment of the implementation of the
State Budget (SB) and occurs through the preparation of the Opinion on the General State Account
(GSA), including Social Security, whose approval is the responsibility of the General Plenary Sitting of
the Court (in the Regional Chambers, the Opinion is prepared on the respective Autonomous Region
account, approved by a Special Collective which meets at the headquarters of each Regional Chamber
for this effect).
Given that the Opinions on the General State Account and Autonomous Region accounts are an important
part of the Court’s activity, this has been assumed for the three-year period 2008-2010 as
one of its strategic priorities: Continue with efforts to reformulate the Opinions on the General
State Account and accounts of the Autonomous Regions, namely regarding public finances sus-

tainability and articulation between Public and National Accounting. The Opinion, preceding the analysis
and assessment of the GSA, presents the economic and financial background of the budget implementation,
at national and international levels, as well as an assessment of the sustainability issues
resulting from State financial activity.
During the preparation of the Opinion, the Court assesses the State’s financial activity in the areas of
revenue, expenses, liquidity, use of public money and assets, including financial flows with the European
Union (EU) and between the State Budget and State Owned Companies Sector.
Successive control competence is also exercised through the:
� carrying out of audits on the legality, regularity, appropriate accountability, sound financial management,
performance and internal control systems and on any other nature based on certain
acts, procedures and partial or overall financial management aspects or on horizontal issues;
� external verification of accounts (EVA) of Public Administrative Sector (PAS) entities aimed at
establishing the numeric statement of the operations, and may evaluate the internal control systems
and examine the legality, efficiency and effectiveness of financial management;
� internal verification of accounts of the PAS entities, which consists in the analysis and crosschecking
of the accounts, only for the numeric statement of the operations included in the management’s
debit and credit, indicating the opening and closing balances.
The successive control comprises all the domains of the Public Sector activity, either the PAS or the
SOCS, as well as the spending of public money by the Private Sector.
In the course of 2008, the Court of Auditors has maintained the attention to the fight against fraud
and corruption, namely throughout the verification of the existence and reliability of the internal control
systems of the audited entities. It is of particular interest as for this domain potentiality, the audit to
the Pharmacies billing internal control system and the audit to the control system of the incurred operations
within the ambit of the building heritage – 2007.
Summary of the activity developed
During 2008, the Opinions on the 2007 General State Account and 2006 Autonomous Region
accounts were concluded by the Headquarters and Regional Chambers, as well as the opinions on
the 2007 accounts of the Assembly of the Republic and Legislative Assemblies of the Autonomous
Regions; 90 audits 1 (69 at Headquarters, 13 at the RCA and 8 at the RCM) were carried out within
various areas of action; the external verification of 3 accounts (1 at Headquarters and 2 at the
RCM) was made; and there were 467 internal verification of accounts, of which 458 were ratified
(359 at Headquarters, 29 at the RCA and 70 at the RCM) and 9 were refused ratification (7 at Headquarters
and 1 at RCA and 1 at the RCM). In the Annex II, there is a list of the conclude audits, as well
as some of the main observations and recommendations issued by the Court in the same ambit.
The following graphs present the distribution of the audits and EVA concluded by areas of action and
typology
1 See List of audits carried out at the end of point 2.4, most of which are presented on the PCA Internet web page:
www.tcontas.pt
22

PAS -Local
Administration
40
35
30
25
20
15
10
Analysis of the Activity
5
0
Graph 5
Audits and EVA concluded in 2008, by areas of action
SOCS - State
11
12
6
SOCS - Local
Administration
Graph 6
Audits and EVA concluded in 2008, by typology
3
21
Project or System-based Financial Horizontal Comprehensive Op. or
programme
results
6
Opinion 2006 AAR
PAS - State
51
SOCS - State Owned Companies Sector
PAS - Public Administrative Sector
3
23
1 Opinion 2007 GSA
15
Selective EVA
Tribunal de Contas
The activity carried out is analyzed by reference to: audit results and verifications of accounts, within
the context of the preparation of the Opinions on the General State Account and Autonomous Region
accounts, as well as within the Public Administrative Sector and State Owned Companies Sector.
GENERAL STATE ACCOUNT (GSA) AND ACCOUNTS OF AUTONOMOUS REGION
(AAR)
The Opinion on the 2007 GSA, which includes the Opinion on the Social Security Account, was
prepared in 2008 and approved in the General Plenary of 19 th December 2008. The Opinions on the
2006 Autonomous Region accounts of Azores and Madeira were approved by the Special Collective
established in no. 1 of article 42 of OPLCA, respectively in the sessions of 13 June and 12 March
2008.
10
5
39
3

In the Opinion on the 2007 General State Account, the Court of Auditors presented the conclusion of
an action about the Identification of the State main creditors, in 31 December 2007, concerning
the supply of goods and services and characterization of the respective debts (non financial debts).
The debt reported by the debtor public entities, with reference to 31 December 2007 and above € 5
thousand per creditor, was of 2 006,7 million Euros, corresponding to an decrease of 13,3 million
Euros (19%) regarding the same 2006 period. However, the entities attached to the Ministry of Health
registered the bigger rise of 41,3 million Euros, though lesser than in the former year.
Of the 7457 State creditors nominally identified, after the creditor entities confirmation, the list of the
49 entities to which the State owed, by the referenced date, amounts above € 5 million Euros for
supply of goods and services was divulged.
The Government, recognizing that the payments delays regarding the commercial transactions are
susceptible of generate negative repercussions on the economic agents’ activity, has strengthened the
warranty of the payment to the State creditors, by creating a programme of "extraordinary regularization
of capital debt to suppliers ". Thus, the Court expects that the situation, next year, will be
different in relation to the conclusions enhanced in the last GSA Opinions.
During the preparatory work of the Opinion on the 2007 General State Account, 15 selective audits
were concluded at Headquarters, specifically oriented for the Opinion. Of these, 7 also had an
approved autonomous report.
Amongst the remainders, the following audit, of particular interest in the area of expense control, was
carried out to the financial assistance granted by the National Authority for Civil Protection, in
2007.
Within the same context, the Court observed that from 1989 to 1999 were celebrated protocols between
the National Service for Fire, now National Authority for Civil Protection, and several humanitarian
associations for fire, intending to contract communication operators in order to ensure that organization
functioning. Generically, the protocols contemplated that staff, selected by the National Service
for Fire, concluded contracts with the humanitarian associations for fire. The correspondent costs (including
administrative expenditure) are afforded by the mentioned entity. In a similar way, in 2005, the
National Service for Fire /National Authority for Civil Protection concluded protocols with the humanitarian
associations for fire, in order to contract the necessary staff to integrate the aerial centres and in
2007 to create two special companies for fire.
This atypical regime which has been addressed for the satisfaction of the staff necessity, not predicted
by the management staff, never was the ideal solution, neither the more economic. Uncharacterize,
also, that authority budgetary implementation and, thus, the General State Account, including in the
economic classification "04 – Current transfers" expenses that, in its essence, are staff remunerations.
As a result of these conclusions, the Court recommended the Government that clarified this staff juridical
framework, so that the economic classification of the expenditure, now current transfers for private
institutions, may be classified as staff costs.
In addition to the transferred sums to the humanitarian associations for fire, regarding the mentioned
staff remuneration, there were observed control failures, namely, lack of documentation essential to
the control of that staff expenses, errors and slips, as well as the payments of amounts as a way of
covering the administrative expenditure that exceeded the foreseen in the protocols. The indicated
lack of documentation affects significantly the control exercised by the National Authority for Civil Protection,
and for that reason the Court considered that the protocols must contemplate sanctions for
those associations whenever there is a reiterated non compliance.
As far as the revenue control is concerned, the audit to the public revenue collecting by collaborator
entities (Banks, Portugal Post-Office – PPO, Inter-banking Services Society – ISS and Registration
and Notaries Institute), that meant to assess to what extent collaborator entities comply with the com-
24

25
Tribunal de Contas
mitted contractually with the State, regarding the rendering collection information and the deadlines
compliance, as well as, the control implemented by the State Treasury manager and if there is not
compliance, the appropriate sanctions are being applied.
The analysis focused on three aspects essential to the control of the rendering conditions of the collection
service, namely, the collection costs, the deadlines for the collection information rendering and the
deadlines for the collected funds transfer.
The main observations indicated that the State Treasury manager’s control (Institute for the Treasury
and Public Credit Management – IGCP) on the collection service costs by the collaborator entities was
insufficient and untimely and that the deadlines compliance for transferring funds collected by the collaborator
entities to the Treasury current account, in the Bank of Portugal, was not regular neither
timely.
The Court recommended the State Treasury manager’s control on the collection service costs by the
collaborator entities and on the deadlines compliance for transferring funds by the collaborator entities
to the Treasury current account, in the Bank of Portugal should be performed in a effective and timely
way.
Apart from the audits, the preparatory work for the Opinion on the GSA also consisted in the undertaking
of 21 internal analysis actions related to various areas, such as: budgetary amendments;
global expenses; public debt; financial flows between the SB and SOCS and between the European
Union and Portugal; financial assets; cash operations; building heritage; tax exemptions or reductions
and account closure operations.
The audits carried out within the scope of the control of the (CADIEP) Central Administration Development
Investment and Expenses Program, Communitarian Funds, Social Security and Health
contributed for the preparation of the Opinion on the GSA, which includes the Opinion on the Social
Security Account.
For the preparation of the Opinion on the 2006 account of the Autonomous Region of Azores, 1
selective audit and 17 internal analysis actions were undertaken investigating various issues. The
Opinion on the 2007 account of the Legislative Assembly of the Autonomous Region of Azores
was also prepared.
For the Opinion on the 2006 account of the Autonomous Region of Madeira 1 system-based audit
and 7 internal analysis actions. The Opinion on the 2007 account of the Legislative Assembly
of Madeira was also prepared.
In preparatory work for the GSA Opinion and ARA Opinions, the Court establishes the amount of the irregularities
detected. Without being exhaustive, it could be asserted that the amount of the detected irregularities
reaches 609,4 million Euros, resulting, mostly, from payments incurred according to articles 108 and 109 of
the 2007 BFL. Those payments were not estimated and had been incurred through Treasury specific operations,
and overvaluation of communitarian revenues due to systematic overbooking.
Recommendations Compliance – Activity Impact
Some of the Court recommendations issued in previous years or in 2008, within the scope of the GSA
Opinion, whose compliance the Court was notified in 2008, are listed below:
� Definition, by the Directorate Regional of Education of Lisbon and Tagus Valley (DRELVT), of a set of rules
that contributed for a greater uniformity in granting financial assistance;

� Within mass media ambit, alteration in the payment method of the specific incentives, putting an end to the
preceding situation in which the beneficiaries did not furnish proof of the conceded assistance;
� Attribution of the authorization for the purchase and exchange offering of public debt securities to Government,
and not to IGCP, IP (see BSL for 2009).
� Realization of the operations of GSA closing by DGB in the capacity of responsible entity for the establishment
of those operations, for the budgetary implementation control, for the GSA coordination and centralization
of the respective accounting;
� Critical Appreciation of the data clearance of the declaration form 32 and of the Annex H of the declaration
form 3 of the Personal Income Tax, in order to assure the reliability of the given information;
� Timely remittance to the Directorate General of Customs of the follow-up and verification reports from the
entities responsible for the contractual investment projects management;
� As for the Building Heritage, distinction, within the sphere of the classification of expenditure, between the
building acquisition and maintenance or repair.
Follow-up of the Budgetary Implementation
According to the article 36 of the OPLCA, the Court has followed-up the budgetary implementation
by preparing interim reports. Thus, fulfilling that mission, it took place the continuity of the follow-up of
the State Budget implementation (expenditure and revenue) and of the Social Security Budget implementation,
for 2007 and for 2008, having been prepared 3 reports concerning Social Security (3rd
2007 quarter, year 2007, 1st quarters of 2008) and 1 regarding the revenue implementation.
As a result of the Social Security Budget implementation follow-up, it should be pointed the following
conclusion: the investments that have been carried out within the sphere of the Social Security
Financial nformation System (SSFIS), despite the high resources involved (material and human),
throughout a long period of extended time, do not enable the follow-up and analysis of the consolidated
budgetary implementation of the SS system, from the SSFIS, with the appropriate coherence,
quality, time relevance and reliability. On the other hand, even if there are improvements in relation to
the SSFIS operability, the financial data, essential for the preparation of those reports, are still obtained
from extra-accounting maps manually set by SSFMI and not directly from the SSFIS data. This
process is, therefore, provisional and little reliable, not allowing the PCA to validate them.
PUBLIC ADMINISTRATIVE SECTOR
CADIEP, RADIEP and Community Funds and economic functions (agriculture, environment,
public works and transports)
Within the area of control of the investment and development expenses of the Central Administration
(CADIEP) and Regional Administration (RADIEP), community funds and economic
functions audits (2 financial and 6 of programme or projects) and 1 project report of Follow-up of
the CADIEP implementation, by the Headquarters, and 4 audits (2 selective and 2 system-based
audits) by the Regional Chamber of Azores (RCA) were carried out.
The Court, at the Headquarters, followed-up 7 audits carried out by the European Court of Auditors
(ECA) and accomplished several actions regarding the preparation of other audits to be performed
by the ECA.
Amongst the audits carried out, the following is of particular interest: audit to the CADIEP Budgetary
Programme "P001 – Information Society and e-Government ", with the objective of assessing the
economy, efficiency and effectiveness of public monies, as well as the regularity and legality of the
procedures underlying its implementation.
26

27
Tribunal de Contas
It was noted that, in the course of nine years on the conclusion of the Procurement Public Contracts,
the initial object of the contract has been displaced before the fast and profound technical evolution of
the covered products and services, while, on the other hand, public market kept narrow to the contracted
suppliers, granting its holders priority. This situation created an oligopoly and significant competition
restrictions concerning State provision.
For that reason, the Court has recommended that it has to be encouraged competitiveness in contracting
informatics goods and services supplies, stimulated competition and enhanced savings, and
simultaneously it has to be provided the termination of the Procurement Public Contracts concluded
as the result of public tendering procedure opening in 1 of April 1998.
It should also be pointed out that the Unity for the Innovation and Knowledge Mission (UMIC) collects
statistic information on Innovation and Knowledge society through inquiry operations, which allow
it to follow the Programme indicators at a macro level, but does not enable a more detailed followup,
making impracticable the economy, efficiency and effectiveness assessment of the expenditure
commitment. If the Programme indicators are not, mostly, related with the established objectives for
each project, it is not possible to conclude on how their implementation has contributed for the accomplishment
of the fixed objectives. Consequently, the results of the projects investments will be different
from the action effects and external factors. Therefore, the Court recommended the definition,
for the programme, of objectives and indicators that enable the verification of its implementation degree
and evaluate the economy, efficiency and effectiveness of the committed expenses.
Of underlined interest is the audit to the Programme Contract of Touristic Promotion – DRT/ATA,
performed by RCA, whose objective was to verify the programme contract implementation regarding
the execution of the Azores promotion plan as quality touristic destiny, during the period between
01/01/2006 and 31/03/2007. This programme involved the attribution of a financial assistance, from
the Regional Administration, to ATA, amounting € 5 150 000,00. The audit covered the Directorate
Regional for Tourism (DRT) and the Azores Tourism Association (ATA).
The Court verified that, despite the former recommendation, the DRT does not possess a reliable follow-up
and examination system of the public monies performance, which enable to certify expenditure
covered by programme contracts. However, when organizing the application process, as well as during
the programme contract implementation, the regime foreseen by RLD 30/2006/A, of 8 August was
not always applied. The documents and the registrations referred to the expenses contemplated in the
sample did not reveal irregularities materially relevant. Nevertheless, it was noted that, in the precontractual
proceedings, ATA has resorted systematically to private treaty.
So, the Court recommended the full compliance of the legal clauses regulating the procedure of the
Programme contracts application and implementation, foreseen by the RLD no. 30/2006/A, of 8 August,
the implementation of a control system able to follow-up effectively the Programme contracts
execution and the commitment of the programme contract procedure and coming into force terms coincide
with the beginning of the execution actions.
Within the sphere of the CADIEP, RADIEP and Community Funds and economic functions, there
detected irregularities amounting 130 million euros, which had basically to do with the infringement of the
public contracts rules, namely, the disregard for pre-contractual proceedings legally required, the sub-factors
establishment for the award criterion not demanded in the procedure programme, the use of tender evaluation
factors that respected to the bidder’s evaluation, the expenditure splitting and expenditure authorization for an
entity without jurisdiction and also undue payments.

Recommendation Compliance – Activity impact
In 2008, within the scope of the Works of CADIEP, RADIEP and Community Funds and economic
functions, the following recommendations, among others, were complied:
� Compliance, by HIMT – Harbour Institute For The Maritime Transports, P. I., of the established in the
STR, approved by the DL no. 191/99, of 5 June, as for the importance of the own revenues daily collected be
deposited in DGT accounts and all payments incurred by the withdrawal of those accounts, and the determined
in the budgetary implementation decree-Acts, in relation to the delivery in the State Coffers of the earnings
yield with deposits in the commercial bank;
� Implementation, by the National Institute for Civil Aviation, of a control system for the contributive situation,
before the Social Security, of the payments addressee, in the terms of article 17 of the DL no. 411/91, of
17 October;
� Control, by the Portugal Roads, plc, of the bank guaranties and of the immediate deposit of the discounts
applied in the payments addressed to the given bail reinforcement;
� Sensitization, by the Management Authority for the Culture Management Programme, of the public addressee
who have used the exclusively national assistance provisions to pay expenditure to be co-financed, in
order to ensure corrective accounting movements after the financing. Therefore, the GSA and the Programme
registers accounting information will be more coherent;
� Accounting of the EU financial assistance and transfer exclusively by third parties accounts, without influencing
the results;
� Compliance, by the High Speed Rail Project, Plc (RAVE,Plc), with the communitarian rules relative to the
respect for competition principle for the public contracts award, in all procedure, namely, in those involving
communitarian financing, according to the article 7 of the Regulation (CE) no. 2236/95, of the Council, of 18 of
September;
� Adoption, by the Board of Directors of the Directorate General of the Road Safety (DGV) of measures
that push on the established circuit of own revenue collection between the DGV and the DRA;
� Elaboration and implementation, by the NCEL, of a Procedures Manual, in order to clarify, uniform and surpass
the detected problems regarding the compliance of accounting proceedings and of the public expenditure
commitment and public procurement regimes, and sensitization of the entities for the importance of
complying the applicable legislation on this matter;
� Adoption, by the Strategic Planning and International Relations Office (SPIRO) and RAVE, Plc, of measures
tending to ensure the regular, complete and updated information concerning the physical and financial
component of the Project “High Speed Rail Project”, integrated in the Measure “Integration of the Territory
Structuring Corridors in the Trans-European Transport Network”, of the Programme “CADIEP-Transports”,
the processing of the information regarding the planning, management, implementation and control of the
CADIEP projects promotes the coherence and its registration is appropriated and timely;
� Taking of measures tending to confirm that the managers and the coordinator entities of the CADIEP Programmes
register timely and completely the information and, a forteriori, analyze it adequately and timely.
In this area, the impact of the Court activity represented, also, in the compliance of the Treasury Unit principle
by the IPTM through the account opening, from 2006, in the Treasury and the subsequent delivery in the
State coffers of 201 469 Euros, concerning interests obtained in the commercial bank, in 2004.
General Functions of Sovereignty
Within the context of the General Functions of Sovereignty, by the Headquarters, 8 audits (1 financial,
7 integrated) were carried out, one of which resulted in the 2007 Opinion of the Parliament
account, 1 EVA, 2 preliminary studies to control actions and 1 instrumental action regarding the
identification of the main State creditors. The Regional Chamber of Azores (RCA) undertook 1 selective
audit and the Opinion on the Regional Legislative Assembly account. The Regional Chamber of
Madeira (RCM) concluded 2 audits (1 financial and 1 selective). Of these, the financial resulted in the
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Opinion on the Regional Legislative Assembly Account, and 2 EVA to the 2006 and 2007 Regional
Government Treasury Accounts.
Within this domain, it should be enhanced the audit to the Inspectorate-General of the Justice Department
(IGSJ), carried out on the request of the Assembly of the Republic, according to the point 4
of the article 62 of the BFL, which aimed the assessment of the coordination and articulation level between
the IGSJ and the strategic control bodies of the ICS – Internal Control System State of the Financial
Administration, the verification of the corrective actions implemented as a result of the internal
audit and the appreciation of the IGSJ management within the scope of its audit, inspection and control
functions.
The IGSJ integrates the ICS sector-based control, as a member of the respective Coordinator Council,
and participates in the four Specialized Sections activities. The Court has noted that the audit execution
degree, in 2007, approximates the average settled in relation to the whole of the ICS members.
However, there were verified criteria diverging between the IGSJ and the Coordinator Council as to
the concluded actions calculation.
The Court also concluded that, following the internal audit which identified a set of fragilities in the internal
control system, specifically, in the areas of available funds, capital assets and staff, the IGSJ
implemented, immediately, several corrective measures. Consequently, the Court recommended the
accomplishment of the remaining measures, namely, the conclusion and implementation of the Internal
Proceedings Manual and of the Inspection Proceeding Regulation.
It was as well observed that, though the indicators are insufficient, there is a 10% increase in 2007 and
of 22% in 2008 in the IGSJ efficiency. Comparing the ratio of the concluded control actions with the
planned ones changed from 37,5% in 2007 to 80% in 2008. Notwithstanding the progress meanwhile
introduced in the activity indicators, the Court recommended the improvement in its gathering and
treatment, especially as to programmed and used resources in order to confer greater reliability to the
produced information.
Irregularities valued at € 113 million Euros were detected in this area, mainly due to high balances, in 2006
and 2007, in all Marine projects which have overvalued the budgetary expenditure. Consequently,
there was a high impact in the transparency of the public accounts and in each year GSA deficit.
Recommendations Compliance – Impact of the activity
Concerning the issued recommendations, it should be underlined that the Court was notified in 2008
of the following recommendations compliance:
� Recovery, in the State coffers, and amounts unduly received by the Lisbon and Oporto Office of the
Directors of Juridical Consult;
� Implementation, by the MJ, of a new computer application which would contribute to fill in the deficiencies
in the “Regime of access to Act and to the Courts”;
� Adoption of some corrective measures (e.g. Revenue and Expenditure Account with the CADIEP appropriations
and of the functioning budget, legal Framework for certain collected revenues and uniform standards for
the assets inventory) by the External Peripheral Service of the MNE as the result of former recommendations.

As outcome of the Court recommendations accomplishment, there were savings amounting to 21 thousand
Euros which corresponds to the recovery, in the State coffers, of amounts unduly received by the
Directors of the Juridical Consultation Offices of Lisboa and Porto.
Science, Innovation, Higher and Other Education, Culture and Sports
Within the area of Science, Innovation and Other Education, Culture and Sports, 9 audits (5 financial,
2 horizontal, 1 selective and 1 operational audits were carried out at the Headquarters. It was
also prepared a summary report of the audits regarding the acquisition of goods and services in four
universities. The RCA accomplished 3 combined audits and the RCM 1 selective audit.
Of the performed audits, it should be enhanced financial audit to Higher Technology Institute (IST)
which aimed to:
. Assess the reliability if the Internal Control System (ICS) and analyze the rendering accounts
documents, checking if they represent in a truly and appropriated manner the correspondent financial
situation and budgetary implementation;
. Verify the legality and regularity of the administrative proceedings and the integrity of the accounting
records within the areas of:
o Revenue – goods and services selling;
o Personnel – assignment of premiums and supplements;
o Available assets, acquisition of goods and services, debt to suppliers;
. Assess the procedure of preparing the State assets register and inventory.
The Court found that illegal expenditures were authorized and carried out illegal and undue payments
for the allowances of pay supplements to non-teaching staff, to members of the management and staff
manager, and payment of prizes to staff of the ADISTAR-Association for Development of IST. It also
observed the principle of unit of the Treasury in respect of funds transferred from SB and balances
provides managements of those funds. Yet detected accounting adjustments, no documents regarding
expenditure on the allocation of payments / vouchers, in projects awarded in 1999 and 2001.
Within this audit, the Court advised, the immediate cessation of payment of additional remuneration
payments to non-teaching staff, the members of the management and staff manager, and compliance
with the principle of Unity of the State Treasury, with respect to credits transferred OE and sales management
from those appropriations, and the use of figures and repayment of advances to suppliers
only set out by Act.
It highlighted, too, the audit performed by the RCA Primary School integrated with secondary education
of Population and Scholar Fund, following the order to report on internal verification of accounts,
which was to verify the origin of the differences found in opening balances and closure of accounts
for 2005 and 2006. It was also designed to evaluate the internal control system, analyzing financial
statements, certifying the accounts for 2007 Management and appreciate the issues raised. As
a result thereof, the Court concluded that the accounts have been prepared in accordance with the
NPA-E, but the process did not comply in full, the instructions of the PCA. The account of the school,
2007, opened with a different balance carried over from the old, and ended with a balance of divergent
accounts. Those responsible have ensured that the adjustment would be made in the management of
2008. The process of inventory of assets was not completed, jeopardizing the integrity of the information
contained in the financial statements. The financial statements contain errors and omissions that
affect their reliability, and not provide the actual financial position. In light of the Court recommended
verified compliance with the instructions of the PCA as the transmission of documents and their compliance,
which is reflected in account management in 2008 to correct the balance, as guaranteed by
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the directors of PSSEP, and the outcome of an inventory of assets, giving effect to the provisions of
Act and enabling the full implementation of the NPA-E.
The main irregularities detected correspond to approximately 43.5 million of irregular expenditure, most
significantly on non-delivery and non-interest deposit of all available cash in the DGT, the authorization of expenses
or payments without delegation of powers to purposes at the expenses and payments relating to illegal
recruitment through foundations.
Recommendations Compliance – Impact of the activity
� Termination of hiring of staff through the Association of Universities of Lisbon (ADUL);
� At the level of available:
. Compliance with the principle of unity of the state treasury;
. Accounting registration of all bank accounts, and
. Closure of large number of bank accounts;
� Open tender procedure under the contracts continued in order to obtain better offers and better serve the public
interest;
� Compliance with the procedures set out in Decree 197/99 of 08 June in respect of acquisition of goods and
services, avoiding even when legally possible, the direct, that stimulates competition and thus to obtain the
best price;
� Compliance with the legal provisions concerning the hiring of staff through the provision of services and review
of all contracts unnamed;
� Timely payment to suppliers under the conditions employed in order to prevent the flow of interest.
In this area, as a result of the recommendations of the Court, there was a saving of 49.5 thousand Euros corresponding
to recovery the State coffers made in the course of the audit of overpayments by the DRE Alentejo
in the implementation of two contracts association, a sponsorship and a simple.
Health
In areas of Health, at Headquarters, 5 audits were completed (1 financial systems 1, 1 operational or
results-oriented and 3) and 1 monitoring report on economic and financial situation of the NHS in
2007. Were also completed 2 audits conducted by the RCA.
Of the audits completed notes to place the control system of billing Pharmacies, year 2007, which
was aimed at mapping and evaluating the internal control system at the level of funding with the State
or on prescribed medication pharmacies to beneficiaries of the National Health Service (NHS) is not
covered by health subsystem, both in product control and self monitoring of diabetic disease and
pharmaceutical care provided by these pharmacies under the Program for the Control of Diabetes
Mellitus.
The Court concluded that the HRA, as regards the validation of billing for drugs sends the by pharmacies
comply with the deadlines established by Act for payment, however, most pharmacies do not
comply with the deadline for the submission to HRA banknotes credit or debit adjustments arising on
the securities have not been validated. In situations where pharmacies were not sent timely, credit
notes, the HRA paid the full amount of the invoice without the existence of legal and documentary
support for this payment. Thus, recommended that efforts to enable the legal regime governing the
payment system for pharmacies, from the State on the sale price to the public (PVP) of medicines to
establish with clarity the consequences arising from the fact that pharmacies do not meet the obligations
to which they are linked with accession to that payment system, in particular for non-timely submission
of credit notes.

The Court also noted that the Checking Medicine Bill System (CMBS) does not validate or recorded
relevant information, namely, identifying the number of recipient of NHS prescription drugs in situations
where the assignment does not coincide with the prescription drugs listed in the revenue returned
to pharmacies and credit notes or debit cards issued by pharmacies. And yet, the information
system did not only allow the payment of the amount validated by the HRA in the case of pharmacies
do not send credit notes or debit card on time. In the face of the Court recommended the inclusion in
the system, the number of recipients of prescription drugs and credit notes and debit cards issued by
pharmacies and amendment of the information system to allow payment only, the validated value of
the share State of medicines, if not send credit notes and / or debit card, the periods prescribed by
pharmacies
As part of the audits conducted in the area of Health, is noted, as the amounts of irregularities detected, a
value of EUR 20.5 million resulting primarily from a breach of the principle of unity of the state treasury (cash
deposited in commercial banks), from payments made by HRA regarding corrections whose credit notes have
not they had been sent by pharmacies and also the value of products controlled diabetes, dispensed by
pharmacies, pending reimbursement by the health subsystems to HRA.
Recommendations Compliance – Impact of the activity
Are as follows:
� Publication of Order No. 615/2008, of 11 July, on access to health care, in particular air appointments at
health centres, first hospital consultation and coordination between these entities, and contains the " Manual
of the Surgery inscriptions Management";
� Publication of the Order No. 1529/2008 of 26 December, setting the maximum response time guarantees
for access to health care for the various types of benefits to non-cia Emergency Corps, in particular, for surgeries
NHS;
� Publication of "Manual of Best Practice for Reintegration (1 Booklet) - Theoretical Framework", by PIDA,
PI;
� Significant increase in 2008, the number of enforcement actions, the health conventional authorities
(233%) and its coverage ratio (45%), to ensure the effectiveness of the control system established and to
minimize expense the occurrence of breaches of the rules on the organization and functioning and quality of
service in the area of treatment;
� In the performance of the Contract Management HASSG, PLC, the full deduction of credits HRALVT reported
for the years 2004 and 2005, thus benefiting from the deduction established in the contract.
The amounts saved to taxpayers as a result of the Court's work in this area amounted to 11.378 million
Euros, resulting primarily from the implementation of discounts for staff at the Hospital Fernando Fonseca,
Management Company, PLC (HASSG, SA) for the CGA and deduction payment of the twelfth of January
to May 2008 the claims of HRA Lisbon and Tagus Valley related to billing, to HASSG, prescription drugs,
diagnostic aids and treatment, 2004 and 2005
In this area, the effects of the operations of the Court resulted also in the correction of irregularities that
took place, it should be noted in the course of their audit (Audit Control System Billing Pharmacy, year
2007), and quantified at 3.25 million Euros. The adjustments referred to surrounding part of the value established
in commemoration of credit notes which were issued by the HRA, and the amount that was outstanding
for reimbursement from the HRA by the subsystems.
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Social Security, Work/Employment and Professional Training
33
Tribunal de Contas
In the area of Social Security, Work / Employment and Professional Training, in addition to the draft
Opinion, were completed by Headquarters 4 audits (3 financial and 1 selective).
It highlighted the audit of systems for collecting contributions and contributions and relationship
with collaborating institutions in their collection, which was designed to assess, in particular, risks
and controls in place, computing facilities, the processing system of contributions and contributions of
Social Security.
As part of this, the Court found that the level of information management of organizations involved in
the SS (ERSS), the information in the system Identification and Qualification (IDQ) was not always up
to date and were not uniform set of transmission protocols / receiving information to / from external
entities (ISS, PPO, Banking and DGT). In view of that recommended the use of a form in admissions
/ layoff with serial number, which implements a procedure for amending the same, the entry in the IDQ
information which is pending and the standardization of protocols.
The Court found that the absence of a protocol with the Directorate-General of the Treasury (DGT),
which defines and regulates transfer process payments of contributions made by public entities that
are part of RAFE and the state treasury only hampers the process of registration these credits, current
account (in System Management Activity - GC) and allows for errors to determine their registration
"clarification". It recommended that consideration be given to concluding a Protocol with government
agencies and particularly with the DGT (which works only as a recipient of contributions) in the same
terms of agreements with other Collaborating Entities for sending and receiving information on the collection
of contributions and social security contributions
The Court observed the non-integration of applications of the National Pensions (CNP) in the national
structure of social security, which prevents to some extent, the use of the advantages inherent interconnectivity
between systems, forcing the process timing (daily) between them in order to update data
identification and classification system in the IDQ. It Recommended by the social security integration
in the national structure of SISS, systems for the processing of pensions so that all current processes
of sync in either direction, may be completely eliminated.
It should be noted that the amount of irregularities detected as a result of actions by the Court in this business
area amounted to some 2.08 million Euros resulting mainly from contributions SS (SSR) and the IRS,
the amounts deducted paid workers, are not matched in the accounts of the FGS, or delivered to the authorities
(IGFSS and State), understated its Financial Statements, both in terms of expenditure, both in the
debt of others.
Recommendations Compliance– Impact of the activity
Following the analysis in place of Opinion on the 2007 SS account and according to information provided
by the institutions identified below some of the recommendations made by the Court in previous
years and in that year have been implemented, highlighting the following:
� For the Institute for the Financial Management of Social Security (SSFMI):
. Preparation and inclusion in the SSA 2007, Maps of the XXVII-A - Movements and balances in the
treasury of the social security system and XXVII-B - Movements and balances in the cash boxes of
the social security system;
. Write-off receivables derived from improper accounting for the profit coming from the assignment
of VAT;
. Reclassification of receivables criteria for current liabilities and provisioning for doubtful debts to
taxpayers;

. Integration in the Annex and / or SSA Analytical Report, 2007 of the corresponding explanatory
notes on the vas-variations extraordinary and significant occurred in the Retained Earnings account
and the specification and / or justification of the relevant facts that make up the accounts Accruals
and deferrals;
� For the Institute of Social Security , PI (ISS, IP):
. Provisioning for doubtful debts;
. Transfer of ownership of the contracts for water and light of the various properties for the entities to
whom the premises were sold under the Management Agreements or any other figure;
. Reorganization of services to address the issues related to segregation of duties;
. Emission standards for swift action on taxpayers with existing agreements to reduce the average
time for a termination of the agreements in default;
� Implementation by DGSS of measures to ensure compliance with the procedures established for foreign
travel;
� Repeal by DGB, Circular 1314, Series A, 23/12/2004, which established the accounting for output VAT and
the deductible VAT as operating outside the budget, through Circular 1345, Series A, 6/01/2009, which it now
guidance on the accounting of those values should consider those amounts as, respectively, budgetary revenue
and expenditure;
� Development, the Institute of Computing, a methodology to ensure the prohibition of netting of the mixed aggregate
balance of all institutions in the world of SS;
� Implementation, the Vocational Training Centre for the Crystal Sector and the Vocational Training Centre of
Electronic Industry, procedures that allowed the establishment of net income and its disclosure in the financial
statements for 2007;
� Organization and preparing cases for the Fund of the Personal Mobile Lisbon and Porto, with supporting
documentation to the subsidy to the beneficiaries, through the Special Fund
In this area, as an implementation impact of the Court recommendations issued within the scope of the audit
to the Social Security debtors (non tax payers), there was savings of 87,3 Thousand Euros corresponding
to current assets recovery.
Local Administration
In the area of Local Government were completed at Headquarters, 7 audits and 1 preliminary study
the check. The RCA were performed 3 targeted audits. Were also carried out by SPC, 2 audits (1 financial,
1 selective).
In this context refers to the financial audit to the Municipality of Vila Real (MVR) with the following
objectives: to verify the legality and regularity of the administrative and accounting records, assess the
reliability of the internal control system implemented, to assess whether the financial statements reflect
faithfully the revenue and expenditure, and its financial position, whether documents management estimates
have been prepared in accordance with the applicable legal regulations and to analyze the
type of institutional, technical and financial relations between the MVR and businesses municipal.
As part of this the Court noted that the study of technical and economic feasibility that led to the creation
of companies in the municipality had limitations in terms of forecasts and the lack of comparative
studies that attest to the viability of the organizational model company type option expense for the
maintenance of municipal services, even if restructured. It noted that the work carried out by in adjusting
to their subject and the statutory guidelines set by the municipality, but that for various areas they
were being simultaneously carried out by CMVR services and businesses, creating duplication of services
and structures and increased costs of involvement. Moreover, it was also observed that substantial
business activity was financed by program contracts that have not established objectively and
quantified the amount of public contribution and assumed objectives. The Municipality did not have a
accountability of costs or an organized inventory system.
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Tribunal de Contas
Based on the observed, the Court recommended the adequacy within the prescribed period, the
statutes of the MS Legal status of local government and observance of legal norms regarding support /
financial transfers granted to companies, to take steps to control the implementation of subsidies assigned,
which meets the Regulations of the ICS in order to observe the provisions of paragraph 2.9 of
OPAPLA and is implementing a perpetual inventory system and stock accounts.
In this area, is about 47.07 million Euro expense corresponding to the main irregularities detected, mainly
due to not accounting registration of fixed assets, including real estate, and these buildings and other structures,
for which not carried out to determine the underlying value of the land, to register the appropriate account.
Recommendations Compliance– Impact of the activity
The recommendations implemented by the audited entities, members of local authorities, this path is
the following:
� Abandonment of the practice of recruitment through the provision of services as a way to address ongoing
needs of the entity and, where appropriate, adequate justification of the use of services;
� Compliance with the existing legal regulations, in particular:
. In the recruitment / appointment of retired staff;
. Transfers of financial assets to the parish councils of the county, particularly in regard to the need
for prior conclusion of the Protocols of delegation;
. Financial transfers to local companies under contract programs;
. In publicizing the transfers;
� A posteriori control of the subsidies;
� Compliance with rules forward in preparing the proposed budget, combining the criteria and budget sheet, to
ensure greater safety and soundness of the accounts statements.
STATE OWNED COMPANIES SECTOR
State Owned Companies Sector and Operation and Staff Expenditure of the Central
Administration
In the field of Business and Public Sector Personnel and Functioning of central government
were carried out by Headquarters, 9 audits (2 operational audits, 1 of which follow-up of the issued
recommendations, 4 horizontal, 3 of which integrated into a thematic and 3 selective audits), 1 study
preliminary to the control action and 1 study on issues relating to the State Owned Companies Sector.
The Court concluded in 2008, 3 of the selected projects (Rossio Tunnel, Terreiro do Paço Tunnel
and Casa da Música) of the horizontal audit on the theme of "Overruns in Public Works", which
covers 5 projects. The audit's main goal is the establishment of the underlying causes of slippages
occurred in those projects identified and resulted in relevant higher costs, well beyond initial estimates.
On these projects, the Court generally concluded that:
. As a rule, investments in public infrastructure were not preceded by studies of cost-benefit (value
for money), including an indication of the anticipated rate of use of infrastructure and the likely
impacts on the development or conversion the region concerned;

. In all the infrastructure was not taken into account the initial investment required for its implementation,
noting the absence of maintenance contracts needed to evaluate the cost of the life cycle
of the project ("whole life costing") perspective of overall cost;
. The lack of guidelines on good practices to be followed in the planning, implementation, monitoring
and evaluation of projects, has led to the repeated commission of errors and failures gra-ves
in the management of public enterprises, with significant impacts on the public purse;
. Overall, the procurement procedures adopted and always gave transparency to the choices
made, or allowed the proper functioning of the rules of the market to enable the achievement of
the most economically advantageous tender;
. The total investment in these enterprises amounted to 248.6 million Euros, financed by the State
of PIDDAC, EU funds (ERDF), capital of the landowners, marginal contribution of Local Government
and bank credit, with this inherent financial charges
. Taken together, it appears that all the works cost more than expected, and the financial dimension
of the deviation varied between 19% and 228%. On average, public works cost more than
123.6% of the initially budgeted, which demonstrates the unreliability of estimates. The most
prominent example is the House of Music, with the difference stood at 77.2 million Euros (228%);
. The overall additional costs amounted to EUR 110.2 million and represented 44.3% of the total
cost of 3 projects, equivalent to building, from scratch, at least two of the 5 analyzed works;
. The most significant charges were recorded in the contracts, for the amount to 99.3 million due to
additional works and the least errors and omissions, and the work that has the highest percentage
was the Casa da Música, i.e., a purpose built;
. The final cost of the works found in the order of 199.7 million Euros, an increase over the initial
contract of about 99.3 million Euros, and the size of the deviation varies between 24.9% and
295.5 %
. The lack of quality projects, changes and systematic reviews made by the developer during implementation,
poor planning and implementation deficiencies in supervision are the main causes
of slippage occurred.
The Court chose not to make recommendations in these audits vertical slippage in public works of
reference for understanding the most appropriate, efficient and effective to do so only in its future horizontal
and comprehensive report, which condenses the main findings common to the five vertical audits.
In the area of State Owned Company Sector, there were measurable financial impact on the value of 321.2
million Euros, relating to audit the group Águas de Portugal, SGPS, PLC(Report No. 23/08), of which 85%
to account for misuse of funds, overestimate the results of operations and the use of the waters of Portugal
as an instrument of foreign policy of the Portuguese Government that resulted in a negative economic impact.
Recommendations Compliance – Impact of the activity
Some of the recommendations that the Court made in audit reports within the scope of the SOCS, the
public-private partnerships and regulatory authorities, whose compliance was notified in 2008:
� Dynamization at the State level, the production of regular and systematic reports on the SOCS, as
a corollary of closer monitoring by the public shareholder protection, both in terms scheduled, both
in economic and financial terms;
� Intensification by the shareholder, of the monitoring of companies that owns and thereby exercising
fully the duties devolving upon him, of which, inter alia, the definition of strategic guidelines pre-
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Tribunal de Contas
cise and clear, and explicitly and formally, with clear objectives and quantified targets, carried by
the General Assembly, coinciding with the temporal extension of the mandates of the directors and
reviewed annually;
� Adoption by the Public Shareholders of the follow-up measures of good corporate governance for
their company, in the manner disclosed by the Commission of Securities Market, as in this direction
are also studies from the EU institutions in towards the adoption of codes of corporate governance
by companies from member countries, and also the OECD;
� Approval of a package of legislation aimed at the SOCS has reinforced, clarify and specify the
State's obligations as a shareholder and an umbrella, and the role of public managers, the rules of
financial management and control mechanisms (see Report accompanying the proposed State
Budget for 2009, Chapter II - Reforms in Public Finance and Fiscal consolidation since 2005).
� Proof of return of the amount of VAT paid to SC Braga, SAD, the Municipality of Braga (Report No.
37/05-2 nd C);
� In all new concession agreements (since 2007) is already shaped the rule of sharing of financial
benefits, in terms of recommendation of the PCA (Report No. 10/08-2 nd C);
� Preparation for Portugal Highways for all sub concessions launched from November 2007, early in
the tender of a comprehensive risk matrix, which are clearly identified the types of risk, its context
and entity identification who should be allocated, and then proceed to implement the recommended
by the ECA in its Report No. 10/08-2 nd C;
� Release by the Institute of Road Infa-structures (InIR) in June 2008, of an international public tender
for the development of a users satisfaction survey recommended by the Court, which held between
21/11/08 and 5/1/09, pending, for now, the results (Report No. 10/08-2 nd C).
State Owned Companies Sector for the Autonomous Regions
Under the Public Sector Enterprise of the Autonomous Regions have been completed 2 audits
conducted by the SPC.
It highlights the audit to Finance Development Corporation and the company "Madeira Business
Park, PLC- 2006 which was aimed at assessing the indebtedness of the companies and enterprise"
Madeira Business Park, SA, and the ability funded projects generate revenue to meet debt service.
The Court found that although improvements in capacity utilization of funds for the implementation of
investment projects of social nature, has been one of the justifications for the establishment of Development
Societies, the amount of funding from the MOPMAR represented at the end 2006, only 6% of
the total value of the asset. Also found that the debt servicing of loans by the end of 2007
€ 515 million) will require between 2008 and 2032, a financial outlay estimated at € 867 million (of
which € 352 million are related to finance charges), referring to the 2018 peak of the finance of around
€ 59 million.
Between 2004 and 2006, the ratios of financial independence and solvency of the entities in question
are very low or even negative, reflecting the high-capitalization and the expressive weight of debt
compared to equity. In 3 of 5 companies current ratio is below 1, indicating that the usable funds fail to
cover short-term debt.
In the face of the Court recommended the updating of EVE (Feasibility Studies) projects developed
taking into account the new portfolio of investments and adjustments resulting from the experience of
the first years of operation of the oldest projects in order to support the formulation of solutions to economic
and financial balance of companies. It also recommended, given the size of investments and
impacts of government companies in these regional public finances, which are made to monitor the
performance of investment portfolios through regular monitoring reports to prepare and submit to

RCMTC (jointly with the accountability ). And to better benefit from the incentive measures for investment.
State Owned Municipal Companies Sector
In the field of control of the Municipal Public Enterprise were completed at Headquarters, 3 audits
(1 and 2 oriented operating or capital gains).
The auditing the Company's Industrial Vendas Novas Industrial Park Company - Urbanization,
Management and Training, Plc. (VNIPC) focused on the business, form and ownership structure
VNIPC as well as on financial relations with the Municipality of Vendas Novas.
The action aimed at verifying and analyzing the origin and evolution of VNIPC with regard to:
. Existence of pre-feasibility studies;
. Legality of the subsistence of the company, in the form of commercial company, after a period of
adjustment provided for in article 42 of Act No 58/98 of 18 August;
. Application to the society of the legal regime established by Act 53-F/2006 of 29 December;
. Pursuit of their business scope, applying the model predicted and appropriateness to the objectives
pursued;
. Investigation of the regularity of the definition of remuneration of the members of the Board and of
any evidence of accumulation of functions;
. Relations between the Municipality and VNIPC New Sales, the legal and economic-financial;
. Evaluation of Internal Control System implemented in the area of business entity, and
. Economic and financial information of the company.
The Court found that: the award of infrastructure projects of 2. Phase II - North West was not preceded
by a tender procedure, thereby breaching the provisions of DL 59/99, of March 2, applicable to
municipal enterprises, the pricing for the sale of lots is not supported by a regulation to ensure fairness
and equality granted to every potential customer of the industrial park, the company failed to adapt its
statutes in accordance with the expressed determination of the article 48, 53-F/2006 of Act of 29/12,
the internal control system and some information systems have several shortcomings.
In light of this shared: the compliance with current legislation on the award of works, to create the rules
of sale of the lots indicating the criteria for setting their prices, according to the good management
practices recommended and the establishment of a strategy to obtain a balanced (cf. article 31 of Act
53-F/2006, 29 December), towards the financial sustainability of medium to long term the company
and the adoption of standards and internal control procedures, appropriate to the size of the company,
and compliance with legal requirements established by paragraph 5 of article 35 of the CIVA documentary
about the media.
In this area, the amount of the main deficiencies was approximately 1.38 million Euros mainly due to incorrect
accounting classification of costs associated with infrastructure plots.
38

INTERNAL VERIFICATION OF ACCOUNTS
Table 10
39
Tribunal de Contas
As mentioned, successive control is also exercised through the internal verification of ac-counts. The
accounts may be audited by the Court and not subject to external verification can be verified by internal
Support Services and subject to approval of the Court.
Accounts can also be exempt from being sent to the Court under the Act, subject to the registration of
their financial data. For these accounts, entities need only submit the documents specified in instructions
of the Court to enable it to monitor compliance with its resolutions and to establish and maintain
permanent procedures of the entities subject to control.
During the year 2008, considering the set out in the 2 nd Chamber Resolutions 3/07 and 4/07, 22 November,
6/03, 18 December, and Plenary General Resolutions 1/07 and 2/07, 19 December, with 467
verified accounts. Of these, 458 were ratified (359 at Headquarters on 29 RCA and 70 in RCM) and
9 were refused approval (7 Headquarters, 1 RCA and 1 in the RCM). The accounts are related to 371
entities, corresponding to a financial volume of about 39 547 million Euros (36 214 million for the
headquarters, 1791 million in the RCA and 1540 million by the RCM). The Court further validates the
financial data and documentation sent by the entities obliged to accountability and exempted this year,
the shipment of months-but.
Of the 458 bills approved, 121 were considered in the formulation of recommendations (82 at Headquarters,
24 in the RCA and 15 in the RCM) has been set a deadline for authorities to correct the
situations identified irregular.
Administration
Ratified
Accounts
Table 9
Internal Verification of Accounts in 2008
Headquarters and Regional Chambers
Refused
ratification
Entities
involved
No. %
Of which
with
recommendations
No. % No. %
Financial Vol.
Thousand of
Euros
Central Adm. 261 57% 15 2 152 41% 32 359 970 82%
Local Adm. 122 27% 77 5 56% 143 39% 4 485 669 11%
Regional Adm. 75 16% 29 2 22% 76 20% 2 701 295 6,8%
Total 458 100% 121 9 78% 371 100% 39 546 934 100%
The accounts approved, 57% are related to Central Administration entities, and representing 82% of
the total financial volume controlled, 27% of Local Government entities and representing 11% of the
financial volume controlled and the remaining 16% are related to entities of the Regional Administration
corresponds to them 6.8% of the controlled financial volume.
The data for the accounts submitted for ratification in 2008, distributed by Headquarters and Regional
Offices are listed in the Table below.
%

Administration
Internal Verification of Accounts in 2008
N. ratified
accounts
Refused
Ratification
(no.)
Headquarters 359 7 246 36 214 943
RCA 29 1 55 1 791 570
RCM 70 1 70 1 540 421
Total 458 9 371 39 546 934
The reasons that led to the approval of the accounts do not have, among others, the following:
. Borrowing in previous years (short, medium and long term), as well as advances of funds, which
were not reflected in the account management;
. Presence of revenues and expenses not provided for in the budget "differing, the first, from the
corresponding value kept in the account management;
. The account management, as well as being presented in a way not sanctioned by the instructions
applicable, did not give a proper image of the transactions during the run or the opening
balances and closing;
. Material misstatements that reveal the existence of substantial errors (accounting-tion, legality
and regularity) in the underlying transactions, and to verify the non-observance of the recommendations
on the issue have been repeatedly submitted by the services;
. Difference between the listing of borrowing by a Municipality and the value recorded in the accounts
as a result of improper accounting in line, the use of bank loan;
. Failure of the accrual of interest on borrowings;
. Existence of situations where required and commitments were made after the date of invoice;
. Most goods were not being repaid, and those that were used to define rates of in-house manual
of procedures, contrary to that recommended in NPALA;
. Provisions for customers, taxpayers and users doubtful of poorly estimated;
. Existence of rights to receive that by default, are not reflected in the accounts;
. No consistency between the documents and financial statements, such as the accounts in a
credit institution and the accounting of the missing body.
40
No. entities
involved
Financial Vol.
(Thousand Euros)
Under the internal verification of accounts, the amount of the main deficiencies was approximately 178 million
mainly resulting from the balance to the next management have been certified with reservations is not
possible to confirm the settlement of all transactions which are transit, borrowed in previous years which were
not reflected in account management and the existence of situations where required and appointments were
made after the date of invoice.

ANALYSIS OF DENOUNCEMENTS
41
Tribunal de Contas
Denunciations and complaints received at the Court are considered and, where that may contain factualness
relevant representations are made as deemed necessary.
In 2008, 63 denunciations (55 at Headquarters and in 8 RCM) entered the Court, 44 on the bodies of
the Central Administration bodies of the 14 Local Government and 5 on the management of companies
in the State Owned Companies Sector. 147 cases were concluded at Headquarters and in 8
RCM and are under review at Headquarters, 137.
2.5. ENFORCEMENT OF FINANCIAL LIABILITIES
Changes in the Act of Organization and Procedure of the PCA (Act No. 98/97 of 26 August - OPLCA)
introduced by Act No. 48/2006 of 29 August, 1 st and 2 nd Chambers and the Regional Chambers,
were able to apply the fines provided for in Article 66 (procedural fines) streamlining of the judicial
activity of the 3 rd Chamber in cases of financial responsibility.
It is now possible to those Chambers and as to the offenses referred to in Article 65 of the OPLCA, to
relieve the financial liability for financial infringement punishable by a fine only when:
. If there is sufficient evidence that the failure was but charged by way of negligence;
. There has been no Court former recommendation or of any other internal control body to the
audited entity to correct the irregularity of the procedure followed;
. It has been the first time that the Court or an internal control body have criticized the author
for their practice.
Accordingly, in 2008, were implemented by 1st and 2nd Chambers and fines for RCA in the following
Table (19 by 1 st Chamber, 32 by 2 nd Chamber and 14 for RCA), part of which were subject of voluntary
payment. Thus, there is a large increase in the number of fines imposed pursuant to article 66
OPLCA of over 2007, having gone from 25 to 65 cases.
Table 11
Fines imposed according to article 66.– 1 st and 2 nd Chambers and Regional Chambers
Within the scope of the prior control
Within the scope of the concomitant control
Within the scope of the successive control
No. cases
No. of
defendants
Amounts (in
Euros)
10 10 4 416
13 13 4 689
42 42 21 760
Total 65 65 30 865
Fines provided for in article 65 were undergone voluntary payment in the previous phase of the
trial liquidated by the minimum as foreseen in the law. Most of them were liquidated through the
Public Prosecutor Service notification. The number of cases in this situation increased significantly
relative to 2007 (from 10 to 32 cases and 37 to 116 defendants).

Table 12
Fines imposed according to article 65
Voluntary payment – 1 st and 2 nd Chambers and Regional Chambers
Within the scope of the prior control
Within the scope of the concomitant control
Within the scope of the successive control
It was also made of the responsibility penalty in 61 cases - 48 for 1. Chamber, 6 and 7 for RCA by
RCM (an increase of 226% compared to 2007), distributed among the types of control as following
Table.
Table 13
Within the scope of the prior control
19
Within the scope of the concomitant control 39
Within the scope of the successive control 3
Total 61
The enforcement of financial responsibility lies with the 3 rd Chamber at Headquarters and Regional
Chambers of Azores and Madeira. Cases are judged on 1 st Instance, by a single judge, who, in the
Regional Chambers, is the judge of the Regional Chamber to which the case has not been distributed.
Decisions delivered in 1 st instance may be appealed to the plenary of 3 rd Chamber, in which the author
of the contested decision is not involved.
The procedures for enforcing financial liabilities are established based on reports of control actions
of the Court (held by 1 st and 2 nd Chambers and the Regional Chambers) or the internal control bodies
and the entities entitled to the application of actions in this matter, when facts constituting evidencing
financial responsibility.
Before the amendments to OPLCA, consecrated in the Act No. 48/2006 of 29 August, it was responsibility
of the Public Prosecutor to request, before the 3 rd Chamber and the Regional Chambers, the trial
procedures for enforcing financial liability. With these changes has been extended legitimacy to the
claim of gross measures of financial responsibility to senior management, oversight and supervision
on those concerned, and the bodies of internal control. This legitimacy is always subsidiary to
the prosecutors, which led to the publication of Order No. 41/06-GP, 16 November, the President of
the PCA, which determines the publication of the list of cases ordered filed by the PP and notification
of their orders to those organs.
The financial responsibility may take the form of financial responsibility and liability reintegratory punishment.
42
No. cases
No. of
Defendants
1 1 1 018
17 76 57 700
14 39 48 427
Total 32 116 107 145
No. of cases
Amounts (in
Euros)

43
Tribunal de Contas
Reintegratory financial liability is intended to ensure a return to the State Treasury for public funds,
subject to, inter alia, misuse, overpayment, or failure to collect revenue under the Act has, essentially,
the task of reconstituting the financial situation that would exist if the such behavior had not occurred.
The financial liability of sanctionatory is reflected in the application of a penalty, a fine, offenders of
certain behaviour typified in the Act (legal procedure or financial obligations of collaboration with the
ECA in carrying out its functions oversight -- art 65 and 66 of OPLCA) and seeks to suppress and prevent
the breach in public funding.
This allows the classification of financial responsibility as separate species against other species of
liability (civil and criminal) is the nature of the standards - procedural or substantive nature of financial
- and a judicial organ that effectively, the Court of Auditors.
In 2008, procedures for enforcement of financial liabilities to behave in accordance with 3 rd Chamber
and Regional Chambers (13 carried over from 2007 and 12 recorded in 2008 - 4 at Headquarters,
the RCA 2 and 6 in the RCM), were extinguished their procedures in 4 cases by voluntary payment
and other reasons, at Headquarters, and 10 were tried and were given sentences in 4 cases, 1 and 3
at the Headquarters in RCM, and acquittals in 6, 4 and 2 at the headquarters in the RCM
Types of procedure
Table 14
Enforcement of financial liabilities in 2008
3 rd Chamber and Regional Chambers
Closed-end before
the judgement
Voluntary.
payment
Other
situations
Condemnatory
Sentence
Judged
Acquital
Sentence
Judgment of accounts 1 3
Judgment of financial liabilities 1 2 3 3
Art 59 and 60 of Act 98/97 1 1 3
Art 65 of Act Lei 98/97 1 3
Fine 1
Total 1 3 4 6
Conversion of
recovery by fine
payment
As a result of these processes were ordered restitutions amounting to € 23 584.56 for undue payments
at Headquarters, and were fined in the amount of € 17 898 (15 075 at Headquarters and in
2823 the RCM). A fine in the amount of € 1153 was also paid voluntarily before trial, at Headquarters.
The 3 rd Chamber in plenary held 5 regular procedures (4 of financial responsibility and 1 fine for 1 st
Chamber), and the judgments come to consider their unfounded 5 resources.

3. ACTIVITY OF THE PUBLIC PROSECUTION SERVICE AT THE PCA
At the Court sits on the Public Prosecution Service (PPS), which is represented at Headquarters
Wanted pain-General's Office, which, using powers of delegation, is represented today by three Deputy
Attorneys General, in each of the Regional Chambers is represented by the magistrates appointed
for that purpose by the Attorney General's Office.
Under article 29 OPLCA of the PPS operates automatically and in accordance with the rules of procedure
in 1 st and 3 rd Chambers and the Regional Chambers, and can attend sessions of the 2 nd Chamber.
As provided for in article 57, it must apply before the 3 rd Chamber and the Regional Chambers, the
trial procedures for enforcement of financial liabilities on the basis of evidence of offenses contained
in the reports of the inspections carried out by 1 st and 2 nd Chambers and the Regional Chambers,
as well as reports received from the internal control bodies. This power is not, however, exclusively
of their competence, since the amendments to OPLCA enshrined in Act No. 48/2006, dated 29
August, also enabled, though subsidiary, the management, control or governing bodies on the
concerned parties, as well as the internal control bodies to require the trial of cases of enforcing financial
liability.
Thus, the PPS is notified of all audit reports and external verification of accounts approved to
where them to consider facts constituting financial responsibility, they eventually triggered the court
procedures. The PPS can de-develop the additional inquiries it deems appropriate which relate to the
facts contained in the reports sent to it. This competence is derived specifically informed of changes to
OPLCA enshrined in Act No. 48/2006 of 29 August.
After changes to OPLCA, introduced by Act No. 48/2006 of 29 August, the PPS has to notify possibly
responsible for failure financial penalties, enabling them to complete this stage, the voluntary
payment of fines and the amounts to be taken back, which to occur, leading to the extinction of
whether the penalty and / or reintegratory cleared checks in the Court of Auditors or the internal control
bodies. As mentioned in the section on fines which fall under the Article 65. Shall voluntarily and
paid prior to the trial stage, their number increased greatly compared to 2007.
During the year 2008, according to data from the Court Registry and the Regional Chambers, were
reported to the PPS 309 reports - 160 at Headquarters, 63 and 86 in the RCA in the SPC. For most of
the reports from headquarters, the order of the PPS was to not require court proceedings (108). In
RCM most orders were to consider "non-viability of elements proba-discriminatory and factual" (80).
Most of the orders of PPS in the RCA reports is contained in "other situations" (61). The PPS claimed
trial in 4 reports at Headquarters in the CAR 2 and 7 in the SPC.
44

45
Tribunal de Contas
4. RELATIONS WITH OTHER NATIONAL BODIES AND INSTITU-
TIONS
4.1. PRESIDENT OF THE REPUBLIC, PARLIAMENT (“ASSEMBLY OF THE RE-
PUBLIC”), GOVERNMENT, LEGISLATIVE ASSEMBLIES OF THE AUTONO-
MOUS REGIONS AND REGIONAL GOVERNMENTS
Under the Act, the Court of Auditors (ECA) informed the President on the outcome of its activities, in
particular on the findings of its monitoring.
The Assembly of the Republic (AR) is also the privileged activity of the Court of Auditors with regard to
the Opinion on the General State Account, and the reports of monitoring and auditing.
Thus, in accordance with Article 107 of the Constitution, the implementation of the budget is reviewed
by the Court and the Assembly of the Republic, which preceded the Court's opinion, assesses and
approves the General Accounts of the State, including the Social Security Social. Similarly, Article 36
of and 56, no. of paragraph 7 b) the BFL state that the Assembly may request the Court of Auditors
reports on the interim results of the review the Budget of the State, throughout the year, and any clarifications
needed to assess the state budget and the Opinion on the General State Account.
Under paragraph 4 of article 11 OPLCA of the Court may also be requested by the Parliament (the
President or the draftsmen of audits) to communicate information, reports or opinions stop-related their
financial control functions.
On 10 January 2008, the President of the Court was delivered to the President of the Stop-ion on the
General State Account 2006 of the Action Plan of the Court of Auditors for 2008 and the Exhibition
Catalogue "Accounts with History".
On 12 February 2008, the Court, through its President and four rapporteurs Judges, has presented the
Opinion on the General State Account of the 2006 at the Parliamentary Committee on Budget and
Finance of the Assembly of the Republic. The opinion had been delivered in the AR in December 21.
On 22 December, was submitted to the President of the Assembly of the Opinion on the General
State Account 2007.
On 12 March the President of PCA delivered to the President of the Legislative Assembly of the
Autonomous Region of Madeira Opinion on account of the region, for the year 2006. Then in October,
he delivered the Opinion on behalf of the Legislative Assembly for the year 2007.
On 13 June the President of the PCA gave the President of the Legislative Assembly of the
Azores Opinion on account of their region, covering the year 2006.
On 24 June the President of the PCA was heard in the discussion of the Draft Act on the Council for
the Prevention of Corruption at the Commission for Constitutional Affairs, Rights, Freedoms and
Guarantees des, the Assembly of the Republic.
Also the request of the RA, under the provisions of paragraph 4 of article 62 of the Budgetary Framework
Act, held an audit of the General Inspectorate of Justice Services (Report No 2 / 2009).
During the year were sent to Parliament 3 reports for monitoring the implementation of the budget of
Social Security and one for monitoring the implementation of the budget of State revenue.
In addition to the audit reports cited above were also sent to Parliament, including its Committees, and
the government, other Audit Reports, approved by the Court.

In the Legislative Assembly of the Azores, as well as the regional government, were sent by e-mail, all
reports of audits carried out by the Azores Regional Chamber of the Court.
4.2. INTERNAL CONTROL BODIES
Under article 12 of the Act of Organization and Procedure of the Court of Auditors, the organs of internal
control - particularly Inspections-General and other entities to control or audit of services and public
administration bodies - are subject to a duty to collaboration with the Court of Auditors. In fulfilling
this responsibility, they should communicate their CT programs and multi-annual activity reports and
their implementation, and refer the reports of their actions, they contain matter relevant to the action of
the Court.
In 2008, the Court received 57 reports of various organs of internal control (53 at Headquarters
and in the CAR 4), namely, the General Inspectorate of Internal Administration, the General Inspectorate
of Education, the Inspectorate General of Finance and Inspector-General of Local Government,
with 37 bodies on the Central Government and 20 of the Local Government. Has completed the analysis
of 188 reports (186 at Headquarters and in the 2 RCA), some of which carried over from 2007 and
was sent 18 prosecutors for possible effects of gross financial liabilities.
Were held working meetings with the Inspector-General of Local Government and with the controllers
of the financial area of the Ministry of Interior.
4.3. OTHER INSTITUTIONS
Following the protocols of cooperation established in 2006 with several universities, the presiding
judge made several speeches / lectures / classes on themes within the powers and role of Court, particularly
in the School of Economics and Management, School Act University of Lisbon, Institute of
Social Sciences and policies. University students were received before the Court on study visit. They
were also offered Journals of the Court of Auditors to universities.
In 2008, signed a cooperation protocol between the Court and the Superior Institute of Military Studies.
It should be noted, for example, that the President of the Court presided and moderated a session of
the International Conference "Portugal and the European Union and the U.S. - New Perspectives in
the Context of Economic Globalization on the theme" Sustainable Development Public Finance and
Social Security on both sides of the Atlantic - That social contract for a new generation? "organized by
the Institute of Finance and Economic Act Tax Act School, University of Lisbon.
The President made the PCA also interventions in secondary schools to the powers and role of the
Court of Auditors.
4.4. THE MEDIA
In order to inform citizens about the results of its monitoring activity of the proper use of public funds,
the Court, pursuant to paragraph 4 of article 9 of the OPLCA, publishes its acts through the media and
the Internet.
Official documents (Judgments, Sentences, Statements and Audit Reports), after notification of interested
parties, but also press releases, statements, interviews, statements and explanations, offering
the Court a Centre for Social Communication res-sible by ensure the necessary contacts.
46

47
Tribunal de Contas
This disclosure is also a means of, first, to report on what the Court is doing with the resources available
to them and, secondly, to encourage saving practices of public resources and a new management
culture based the requirement, the accuracy and quality.
During the year 2008 were disclosed in the Opinion on the General State Account 2007, the Stop-ion
on the Accounts of the Azores and Madeira, 2006, the Reports on the accounts of the Assembly and
the Legislative Assemblies of Autonomous Regions, 2007, 88 Reports of Audit (Headquarters and Regional
Chambers of Azores and Madeira), 17 Reports on Internal Verification of Audit Chamber of
Azores and 3 Reports Monitoring Budget Execution and Social Security Report of 1 Monitoring of Public-Private
Partnerships in the Health
Were issued 27 news releases, which refer, for example, those relating to: the Con-gress of EURO-
SAI, chaired by Portugal in Poland and made their presentation of the Court "Accounts with History" in
the Congress Centre Customs, Port, and System Accountability Services and Public electronically.
16 interviews were given by the President of the Court, the media, which stated: Antena 1, TSF, Jornal
de Noticias and Diario de Noticias on "Court of Auditors and extent contrary fatalism of the slippage in
public works; the Weekly entitled "We must dramatically reduce the risks of corruption in the great
works and combat cartelization and slippage; Vision of the" More dramatic than it solves, it should go
to the roots of corruption."
The documents disclosed originated in 9947 news broadcast by the media, and 3895 in press, 2345 in
media (radio and television) and 3707 on the Internet, which corresponds to 828 news monthly averages.
The media that broadcast a larger number of reports on the Court were: The News Journal, the
Public and SIC Notícias.
5. COMMUNITY AND INTERNATIONAL RELATIONS
The external actions taken by the Court at Community level, under the International Organizations to
which the Court of Auditors and belongs in the field of bilateral relations with similar institutions, which
involved members of the Court and managers and technicians of its Ser -Support services are of
paramount importance for the enrichment and strengthening the capacity of the Court. First, the
participation in the formulation and discussion of important normative documents and / or advisors in
the field of audit and financial control, but also because they result in the development of joint actions
with the Court of Auditors (ECA), the exchange of ideas and experience in international organizations
and in special cooperation with similar institutions of the CPSC.
5.1. COMMUNITY RELATIONS
In the area of community relations, consultations have been two meetings of the Liaison Officers, as
well as the annual meeting of the Contact Committee of Presidents of SAIs of the European Union.
Under its mandate, the PCA participated in meetings of the Working Group on the Management and
Control of the Structural Funds III, which drew up the final consolidated report on the analysis is
carried out in parallel by the SAI members of this working group on the topic Performance of programmes
in the areas of employment and the environment.
At the annual meeting of the Contact Committee, held in Luxembourg, it was discussed several topics,
such as the following: The fiscal reform in the EU, the revised Lisbon Strategy 2008-2010 and the
results of parallel audit in management and control of the Structural Funds.
The Portuguese Court of Auditors has also participated in the 8th. Meeting of the Working Group on
VAT, which was formed as a forum to exchange experiences on the role of public auditors in combating
fraud involving VAT in the EU, as well as a means to acquaint the participants with the various

mechanisms and procedures implemented in each country to prevent and detect cases of tax evasion
and fraud.
As regards the role of PCA as the national interlocutor of the European Court of Auditors, highlights
the participation, during 2008, 7 audits under the control of the using the various funds.
Note that the PCA participated between October 2007 and December 2008, the international team
formed at the invitation of the ECA, representatives of SAIs of Austria, Canada, Norway, Portugal, to
conduct a peer review to European Court of Auditors.
The peer review was to assess the extent to which the EC has the mandate to audit according to international
standards (INTOSAI and IFAC), the rules that he himself approved and going with the internationally
accepted best practices. PCA participated in December in Luxembourg at the meeting of
presentation of the final report.
With regard to visits and travel, it is mentioned the trip to Lisbon, a delegation of the European Court of
Auditors, led by its President, with the aim of introducing the charge of the Portuguese Government to
the ECA's annual report for the year 2007
5.2. INTERNATIONAL RELATIONS
A) Relations with the Courts of Auditors of the CPSC
Under the Community of Portuguese Speaking Countries (CPSC), it is noted in the field of multilateral
relations:
. The performance in May in Oporto, the Fifth General Assembly of the Organization of
Supreme Audit Institutions of the CPSC (CPSC OISC), whose organization was in
charge of PCA, which was attended by the SAIs of Angola, Brazil , Cape Verde, Guinea-
Bissau, Mozambique, Portugal and Sao Tome and Principe, and the SAI of Macau and
East Timor participated as observers.
This meeting was discussed the issue impacts the activity of the audit, approved the Strategic
Plan 2008-2010 OISC CPSC and decided to create a working group to implement the
Plan of Operations.
. The presence in Brasilia, the Portuguese Court of Auditors, the Technical Meeting on Government
Auditing, organized by the Court of Accounts, Brazil, in the organization of the
SAI of the CPSC.
. The movement, the Court of Cape Verde, an Audit Coordinator for a meeting of the Working
Group to implement the Operational Plan of OISC CPSC, created in the V General
Assembly.
. The performance in Portuguese CA, a meeting of the Board of the OISC CPSC, which
had as main objective the preparation of the next General Assembly of the Organization to
be held in 2010 and meeting of the Working Group responsible for preparing the draft
Operating Plan 2008-2010.
. The holding of a joint audit by the Court of Portugal and the Tribunal of Audit Guinea-
Bissau, conducted with the Executive Secretariat of the Community of Portuguese
Speaking Countries, with a view to giving its opinion on the financial statements of the
Fund and the Special Operations Budget, both for the financial year 2007.
With bilateral approach, there have been several initiatives, such as the following:
48

49
Tribunal de Contas
. The visit of a delegation from the Court of the Municipality of Rio de Janeiro, headed
by its President, the Portuguese Court of Auditors, as a result of which was signed a cooperation
protocol for the exchange of experience and knowledge in the field control functions.
. The study visit of the Portuguese Court of Auditors of an Auditor of the Court of the
State of Bahia, which falls in the cooperation under the Protocol of Cooperation, concluded
between the two courts.
. A visit to the Azores Regional Chamber of the Court's two delegations of the Court of
Cape Verde in order to know your organization and its operation, the first being led by its
President.
. At the request of the Assembly of the Republic of Mozambique, the delegation visited
her to become aware of the relationship of the Court with the Portuguese Assembly of the
Republic of Portugal and the Administrative Tribunal of Mozambique.
. The participation of the Portuguese Court of Auditors, the Commemorative Seminar 7 th anniversary
of the Court of Angola, and its representative moderate the theme The State
General Account and its importance and presented a communication on the audit and a
priori post of public works of national reconstruction.
. The visit at the invitation, the Court of Angola, 3 technicians Portuguese Court of Auditors,
to make contact with their experiences in training and file.
. The participation of the Portuguese Court of Auditors, at the invitation of President of the
Court of Cape Verde, the Parliamentary Forum IV Tax System - Challenges of Development,
a joint initiative of the National Assembly and the Court of Cape Verde, which had
place in the city of Praia.
B) Other International Relations
The Portuguese Court of Auditors is a member of other international organizations, including the IN-
TOSAI (International Organization of Supreme Audit Institutions), whose Board incorporated until
2007, the EUROSAI (European Organization of Supreme Audit Institutions), that the PCA President
has, since the Seventh Congress, performed the task of 1 st Vice-President of EURORAI (European
Organization of Regional Audit Institutions) and OLACEFS (Organization of Latin American and Caribbean
Supreme Audit Institutions), which is an accessory member.
The Court participated in the year 2008, the activity of these organizations, noted the following events:
Within the sphere of INTOSAI
. The meeting of the Working Group on Transparency and accountability, established within
the Commission on Professional Standards.
Within the sphere of EUROSAI
. The meeting of the Working Group on Information Technology (EUROSAI IT Working
Group - Subgroup2), held in Ljubljana and aims to analyze the report of the activities undertaken,
as well as decide on all the work to be presented in the next Congress of EU-
ROSAI.
. The VII Congress of EUROSAI, held in Krakow, where they were treated the following
subjects: A system of quality audit in the management of SAI; Audit's social programs in
Education, and Audit of social programs in the area of professional integration of disabled
people. The Portuguese Court of Auditors presented a written contribution on the first topic.
. The President of the Court presided over the Portuguese 2. Session of Congress and a
Judge Adviser chaired the Working Group on the second theme. At the beginning and end

of the Congress were held meetings of the Board, respectively, for preparation and implementation
of the resolutions of Congress.
. This congress approved the application of the Court of Portugal to the organization of the
Eighth Congress of EUROSAI 2011, by which, under the Statutes of EUROSAI, the President
of the Court of Auditors shall perform the office of 1st Vice President.
. The sixteenth meeting in Moscow, the Training Committee of EUROSAI, which was formally
constituted in 2000, the XXII meeting of the Governing Board of EUROSAI.
. The seminar on the theme Understanding COBIT in support of an audit of IT governance,
organized by the Training Committee and the Working Group on Information Technology
(IT) of EUROSAI, held in Tallinn, Estonia, and that was to promote the use of COBIT
methodology in assessing the management of IT processes in the specific context of electronic
government, in its auditing and financial performance.
. The seminar on Management of the IAS, which was held in Berlin.
Within the sphere of OLACEFS
. The Court has participated in Bogota, Colombia, in the XVIII General Assembly OL-
ACEFS, regional groups of INTOSAI, as a contributing member (according to the new
Statute, a member attached), which addressed the topics: The Control of EFS regarding
procedures for linking public sector entities and the private sector, the intellectual capital of
SAIS, and quality management services in the SAIS. PCA submitted written contributions
on the first and third themes.
As part of the General Assembly also held a seminar on management and combating corruption,
and was presented with information about the activities of the INTOSAI Working on
the Fight Against International Corruption and Money Laundering.
Supreme Audit Institutions of the Financial NATO Countries - Annual Meeting in Brussels for consideration
and discussion of the Report of Activities 2007 IBAN - International Board of Auditors for
NATO.
The Portuguese Court of Auditors has received a delegation from the Council of Europe, for discussion
and exchange of information on the Local Finance Act, and a delegation from the OECD, to collect
information on the Portuguese budgetary process.
The Portuguese Court of Auditors participated also in Maastricht (Netherlands), paragraph 64. Congress
of the International Institute of Public Finance (IIPF), which had the theme of Demographics
and pensions, and in Kuala Lumpur, Malaysia, at the XVI International Congress Files on the theme
Archives, Governance and Development: Mapping Future Society.
In the framework of bilateral cooperation, there are the visits to the PCA, the President of the Court
of Slovenia and a delegation of the Court of Ukraine, to learn about the organization, operation and
activities of the Portuguese Court of Auditors.
The latter move led to the conclusion of a Protocol of Cooperation between the audit Portuguese and
Ukrainian, with a view to enhance cooperation in various areas.
PCA also received a delegation from the Democratic Republic of Timor-Leste, headed by the Minister
of Justice, for signing a Memorandum of Understanding with a view to developing closer relations
and cooperation in the production of legislation, training of Timorese and technical and legal assistance,
with the aim of creating the Municipality of Accounts Timor-Leste to be fed into the High Administrative,
Tax and Audit.
And also received a visiting delegation of the National Assembly of Serbia, headed by its President,
for discussion and exchange of information on the relationship between the audit and the respective
national parliaments, and a delegation from the Ministry of Finance of Turkey to learn about the Por-
50

51
Tribunal de Contas
tuguese experience in such matters as the structure and functioning of the Ministry of Finance and
Public Administration, the preparation of the General State Account, the accrual accounting and the
preparation of National Accounts in the Public Administrations.
Involvement of the Portuguese Court of Auditors, in Cetinje, at the invitation of the Court of Montenegro,
at the Workshop on Public relations and communications strategies of SAI's, and in Tunis at the
invitation of President of the Court of Accounts of Tunisia, the Colloquium commemorating the 40 th
Anniversary of this Court, and the President of the PCA made a statement on the recent evolution of
the Portuguese Court of Auditors.
It should be noted, though, the participation of a delegation of the Portuguese Court, headed by its
President, University of Montpellier, in the Symposium on Reform of the financial procedures of the
courts and the European Convention on Human Rights, has issued a communication on the theme of
the symposium.
The Portuguese Court of Auditors, as auditor of the accounts of the Western European Union
(WEU), has audited the accounts of 2007 of the WEU Assembly and the Secretariat, 2007, in this case
jointly with the SAIs of the Netherlands and the Court of Spain.
The Court also continued to integrate the Audit Committee of the European Space Agency, the tenassumed
the presidency in 2008.
6. RESOURCES USED
6.1. HUMAN RESOURCES
At the end of 2008, the Court had 19 Counsellor Judges, including the Counsellor President, and
their Support Services to 564 staff on duty (482 at Headquarters, 42 in the Regional Chamber of
the Azores and 40 at the Regional Chamber of Madeira). Of these, 244 fell within the special body
of control.
Of the 19 Counsellor Judges, 17 had functions at Headquarters (President, 4 assigned to 1 st Chamber,
9 to 2 nd Chamber, and 3 to 3 rd Chamber) and 1 in each of the Regional Chambers of Azores and
Madeira.
As shown in Table below, the number of staff on duty has been declining.
Table 15
Evolution in the number of Support Services permanent staff
2006 2007 2008
Headquarters 493 496 482
Regional Chamber of Azores
44 40 42
Regional Chamber of Madeira 42 40 40
Total 579 576 564

The breakdown by professional groups is presented in the following graph:
Technical, technical assistance
Act official
9%
Graph 7
Permanent staff by professional groups – Support Services
Administrative,
oper. and aux.
25%
Informatics
Technology
4%
Presid. Cab.
1%
Higher tech. Staff
14%
The index of technical sophistication in the widest sense (ratio advanced technical staff + technical
staff + technical vocational / total employees), for all the support services, including those of the
Regional Chambers, is 74.82%.
The Court also, when the specificity of the audit recommends, hiring outside experts. In 2008, experts
were hired to carry out a study of macro-economic framework to integrate the opinion on the
General State Account 2007 and consultants to opine on audits of consulting fees in the sector Emprize
of the State and the Office Funds Management Security Capitalization.
Since your main personal appeal, the Court invests in the development of their potential, providing
them with training, consolidating and updating of knowledge, organized by the Court itself or by
other bodies.
Thus, in 2008, there were 107 training sites (organized by the Court and its premises - 80 at Headquarters,
13 and 14 in the RCA RCM), with an average participation of about 23 people per share.
Besides these, there was also participation in 78 external operations (38 operations attended by
staff from Headquarters, 10 personnel of the RCA and 30 staff SPC) comprising courses, seminars,
conferences, meetings or seminars.
In all measures, internal and external, there were 2645 participations. The actions organized by the
Court had the participation of 17 persons from the outside.
The Court provides also training to judges, officials and technicians from other SAIs. In 2008 he received
in stage 10 participants of the Court of Cape Verde.
52
Managers
10%
Special Body
36%

Table 16
Training in 2008 – Headquarters and Regional Chambers
No. of
actions
53
Tribunal de Contas
The number of entries in training has increased (19% from 2007 to 2008) and the number of hours
spent in training as well (9% increase from 2007 to 2008).
In terms of spending on education (direct costs - payments to trainers and training abroad) they represent
0.44% of total expenditure.
For trainers, the Court relies on the academic faculty and specialists from training institutions and consultancy,
but also the staff of the Court itself. In 2008, similar to what happened in 2007, the Court
held that an action had the trainers an auditor of the National Audit Office (NAO) of the United Kingdom.
The training covered the following areas: auditing, accounting, Act, finance, management, IT, European
Union, and Organizational Development. Integrate these activities, conferences on various topics
of interest to the Court.
Court employees (directors and others) are active also as trainers in external actions, while public
and private organizations have requested the Court.
Accordingly, in 2008, there were 54 interventions that form the seat of the Court, in 50 activities organized
by other bodies, corresponding to a total of 442 hours of training given.
6.2. FINANCIAL RESOURCES
No. hours
of
actions
No. of
participations
No. hours
Used in
training
Total cost
(Euros)
Internal (HQ and RC) 107 1 002 2 480 19 231 90 210
External 78 1 239 165 2 208 20 375
Total 185 2 241 2 645 21 439 110 585
Actual expenditure of the Court of Auditors in 2008 was of 24 862 644 Euros (21 521 999 Euros at
Headquarters, 1 734 458 Euros at the Regional Chamber of Azores and the 1 606 187 Euros at the
Regional Chamber of Madeira).
Its structure by financing sources is shown in Graph 8, and 77% of which was financed by the State
Budget and 23% by the Court Coffers.

Graph 8
Expenses by financing source
SB -
Operations
77,1%
€ 19 170 172
Revenues from the Court Treasury come, chiefly, from fees charged by the Court.
In terms of economic classification, the breakdown of expenditure is given in Table 17, emphasizing
that 87% of that for expenses of staff (85% in 2007).
Table 17
Expense structure by economic classification
(In Euros)
Economic Classification
Headquarters RCA RCM
Valor
Total
%
Operational Budget 21 521 999 1 734 458 1 606 187 24 862 644 100%
Personnel Expenses 18 658 237 1 586 355 1 382 048 21 626 640 87%
Current Goods and Services 2 656 267 126 707 167 752 2 950 726 12%
Capital Goods 207 495 21 396 56 387 - 285 278 1%
The distribution of expenditure by activity is given in Table 18.
Table 18
Expense structure by activities in 2008
Activities Headquarters RCA RCM
The expense of the Court (Headquarters and Regional Chambers) has evolved from 2006 to 2008,
according to Table 19.
54
€ 5 692 472
Coffers of
the Court
22,9%
Total 21 521 999 1 734 458 1 606 187 24 862 644 100%
(In Euros)
Value %
Financial Control and enforcement of
financial liabilities 13 235 056 1 166 663 957 499 15 359 218 62%
Development and resources management 8 286 943 567 795 648 688 9 503 426 38%
Total
Total 21 521 999 1 734 458 1 606 187 24 862 644 100%

Table 19
Evolution of the expenses from 2006 to 2008, by economic classification
Economic classification of expenses
55
Tribunal de Contas
Regarding the evolution of expenditure by financing source, the trend was shown in Table below.
Table 20
Evolution of the expenses from 2006 to 2008, by financing sources
Financing sources
The development of expenditure distributed by Headquarters and Regional Chambers is reported
in Table
Table 21
Evolution of expenses from 2006 to 2008, by Headquarters and Regional Chambers
Headquarters/RC
2006
2007
((In Euros)
2008
Amount Amount Variation Amount
Personnel expenses 21 124 602 21 372 477 1% 21 626 640 1%
Current goods and services 2 880 552 3 117 036 8% 2 950 726 -5%
Capital Goods 366 857 508 123 39% 285 278 -44%
Goods and Services - CADIEP 46 222
Total 24 418 233 24 997 636 2,4% 24 862 644 -0,5%
2006
(In Euros)
2007 2008
Amount Amount Variation Amount Variation
Coffers 6 916 669 6 292 946 -9% 5 692 472 -10%
State Budget * 17 501 564 18 704 690 7% 19 170 172 2%
Total
* Includes Chap. 50 - CADIEP
24 418 233 24 997 636 2,4% 24 862 644 -0,5%
2006
2007
(In Euros)
2008
Amount Amount variation Amount variation
Headquarters 21 014 604 21 437 322 2% 21 521 999 0%
Azores Regional Chamber 1 742 846 1 690 619 -3% 1 734 458 3%
Madeira Regional Chamber 1 660 784 1 869 695 13% 1 606 187 -14%
Total 24 418 234 24 997 636 2,4% 24 862 644 -0,5%

6.3. INFORMATION SYSTEMS AND TECHNOLOGY
In the context of the relationship of the Court of Auditors for the entities under their jurisdiction and
control, and as a result of the previous developments in 2008 is possible at the Headquarters of the
PCA, using the application of accounting electronically to all entities that, by Act, implement the
PNPA sector. Thus, were delivered through this system, 84 management accounts.
Also this year, began on an experimental basis in the CAR, accountability by electronics, and was invited
to participate in the project five pilot entity distinct natures: the Legislative Assembly of the
Azores; Health Centre Vila do Porto; Primary School integrated with secondary education of Ginetes;
Municipality of Ponta Delgada; Fund the Regional Land Transport.
Began also work on planning and project development facilities "TCJURE - Legal Information" and
"Electronic Document Collection", to integrate the external portal of the Court of Auditors and permanent
interconnection with the systems of "Modernization of incoming mail and electronic file
"and" Accountability of the Offices of the State electronically.
At the subsystem level, electronic archiving, developed the internal testing phase-integrated modules
for registration of mail and document management area of oversight precede and.
There was also the start of the testing phase of the computerized system of the audit process, which
was based on Volume II of the Audit Manual of Procedures and the Court's accounts of what is expected
and might be a tool systematizing the work of auditing.
In the restructuring of the support application to the Information System Planning and Evaluation
Management and coherent integration with the global evaluation began Theoretical and empirical
specification of requirements and definition of work schedules.
In terms of technological infrastructure, it was being updated to follow the natural evolution of computing
environments.
56

ANNEX I
Concomitant control - Audits finished in 2008 2
57
Tribunal de Contas
Audit subject No. of report
Municipality of Paços de Ferreira, within the scope of the public Works contract of "Requalification
of ER 209"
Municipality of Vila Franca de Xira, within the scope of the public Works of "Construction of the
Infant recreation Centre / ATL - Arcena/Bom Sucesso, in Alverca of Ribatejo"
Municipality of Arruda dos Vinhos, within the scope of the public Works "Construction of the Health
Centre of Arruda
Municipality of Lousada, within the scope of the public Works "Construction of the Junction highway
of Vila de Lousada to EM562 (Access of the Industrial Zone of Lustosa to the Section of
A11/IP9 and A42/IC25)"
Municipality of St.º Tirso, within the scope of public Works of "Road Rehabilitation of the National
Road EN209-2"
Municipality of Aljezur, within the scope of the public Works contract of "Construction of the municipal
swimming pools"
Harbour Institute For The Maritime Transports, P. I., within the scope of the public Works "Works
necessary for the improvement of the accessibilities and the safety conditions of the Barra do
Douro"
Municipality of Paredes de Coura
Municipality of Vila Franca de Xira, in the ambit of the public Works of the "Construction of the
Neo-Realism Museum - Vila Franca de Xira"
Polytechnic Institute of Lisboa, in the ambit of the public Works of the "Construction of the Building
7 - ISEL"
Municipality of Aguiar da Beira, in the ambit of the public Works of the "Construction of the football
field, seats and Support Building ", within the same Municipality
Municipality of Sintra, in the ambit of the public Works of the "Construction of the Communitarian
Centre and outward appearance in the Alto do Forte, Serra das Minas”
Municipality of Crato, in the ambit of the public Works "Municipal uncovered swimming pools of
Crato"
Municipality of Vila Franca de Xira, in the ambit of the public Works of the "Construction of the
Urban Park of the Forte da Casa - Phase II"
Municipality of Montemor-o-Velho in the ambit of the public Works of the "Construction of the Ex
E.N. 341 from Km 30,050 to Km 37,023"
Municipality of Amadora, in the ambit of the public Works for the "Requalification of the Scholar
park of Brandoa/EB1, Childhood Centre- ATL"
Municipality of Vila Verde, in the ambit of the public Works for the "Requalification of the Council
House "
Portuguese Institute for Drugs and Addiction, PI, in the ambit of the public Works of the "Construction
of Drug withdraw Unit of the Reception Centre for Drug addicts of the Algarve Leeward "
Municipality of Gondomar, in the ambit of the public Works of the "Conception/Construction of the
Gondomar all-purpose pavilion”
Municipality of Viana do Alentejo, in the ambit of the public Works of the “Viana Movie Theatre
Remodelling”
2 Some of the audit reports are available at the Court of Auditors Webpage: www.tcontas.pt
49/08-1 st C
48/08-1 st C
47/08-1 st C
46/08-1 st C
45/08-1 st C
44/08-1 st C
43/08-1 st C
42/08-1 st C
41/08-1 st C
40/08-1 st C
39/08-1 st C
38/08-1 st C
37/08-1 st C
36/08-1 st C
35/08-1 st C
34/08-1 st C
33/08-1 st C
32/08-1 st C
31/08-1 st C
30/08-1 st C

Municipality of Torres Novas, in the ambit of the public Works of the "Construction of the Torres
Novas Municipal Library”
Municipality of Albergaria-a-Velha
Municipality of Ourém
Municipality of Barrancos, in the ambit of the public Works of the "Construction of the Barrancos
Fairs and Exhibitions Park”
Municipality of Matosinhos, in the ambit of the public Works of the "Construction of the Sport Zone
of Lavra"
Municipality of Torres Vedras, in the ambit of the public Works of the "Construction of the west
variant Avenue – 2 nd Phase "
Municipality of Porto de Mós, in the ambit of the public Works of the "National Highway 362 Rehabilitation"
Municipality of Torres Vedras
Municipality of Pombal, in the ambit of the public Works of the "Repair and preservation National
highway EN327-1”
Municipality of Sintra, in the ambit of the public Works for the "Construction of the Living Science
Centres, Street railway Terminal, Housing building, Administrative support in the Ribeira de Sintra"
Municipality of Cartaxo, in the ambit of the public Works for the "Construction of the Municipal
Sport and Recreation House – 2 nd Phase (seats, Bathing-place and bancadas, balneários e iluminação)
Municipality of Albergaria-a-Velha, in the ambit of the public Works for the "Sewage network of the
São João de Loure and Alquerubim Parishes - Phase B"
Municipality of Setúbal, in the ambit of the public Works for the "Recovery of the slum Dois de Abril”
Municipality of Portimão, in the ambit of the public Works for the “Palácio Sárrea - Cultural Forum"
Municipality of Coruche, in the ambit of the public Works for the "Requalification of the riverside
Zone of Coruche”
Municipality of Lagos, in the ambit of the public Works for the "Construction of the municipal pavilion
and swimming pool and external outward appearance "
Municipality of Vila do Conde, in the ambit of the public Works contract for the "Restructuring and
Expansion of the S. Sebastião House – Municipal Archive/Memory Centre"
Municipality of Lisboa, in the ambit of the 1 st additional to the public Works contract no. 6/DCV/02 –
Rego Tunnel and Road network of access
Municipality of Faro, in the ambit of the 7 th to 9 th additional to the public Works contract for the
”construction of the Faro Municipal Theatre”
Galveias Parish, in the scope of the public Works for the "Conception and construction of the
Galveias swimming pools.”
Municipality of S. João da Pesqueira, in the ambit of the public Works for the "Sports and Recreate
Park of the Mata do Cabo – 1 st Phase – Swimming Pool and Camping”
Municipality of Mangualde, in the ambit of the public Works for the "Construction of the "Rehabilitation
of the Municipal Highway 595”
Municipality of Paredes, in the ambit of the public Works for the "Conception/Construction of the
sportive pavilion of Lordelo "
Portugal Highways, in the sphere of the public Works "EN - 17, rehabilitation between the Ponte da
Mucela and Catraia dos Poços"
58
29/08-1 st C
28/08-1 st C
27/08-1 st C
26/08-1 st C
25/08-1 st C
24/08-1 st C
23/08-1 st C
22/08-1 st C
21/08-1 st C
20/08-1 st C
19/08-1 st C
18/08-1 st C
17/08-1 st C
16/08-1 st C
15/08-1 st C
14/08-1 st C
13/08-1 st C
12/08-1 st C
11/08-1 st C
10/08-1 st C
09/08-1 st C
08/08-1 st C
07/08-1 st C
06/08-1 st C

Loures Municipal Services of Wastewater, within the sphere of the public Works for the "Water
supply network to Loures - Conception/Construction of the do Loures reservoir and execution of
the sections of distributer tubing "
Municipality of Fundão, within the sphere of the public Works "Casa da Moagem”
Municipality of Portalegre, in the ambit of the public Works "Recuperation/rehabilitation of the Portalegre
Royal Woolen Factory”
Additional to prior approved contracts (Responsibility for sending the approved contracts additional
to the Court of Auditors) – Regional Administration
Municipality of Ribeira Grande – personnel procedures
Public Works of the implementation of the water supplier system to the farm and cattle raising, in
the municipality of Vila do Porto - IROA (procedure of prior control no. 172/2002, 158/2003,
124/2004 e 114/2005)
Public Works contract for the construction of the Pico island abattoir
Directorate Regional for Culture and dependent services – personnel procedure
Compliance assessment of the recommendations made to the Manchico Municipality (Rel. No.
22/05)
Regional Secretariat for Social Affairs (2007), in the ambit of the contracts not subject to prior control
MAR Municipalities, in the scope of Public Contracts – public Works – administrative indebtedness
deriving from (not assumed and not paid expenses)
59
Tribunal de Contas
05/08-1 st C
04/08-1 st C
03/08-1 st C
16/08-RCA
11/08-RCA
10/08-RCA
08/08-RCA
02/08-RCA
09/08-RCM
04/08-RCM
03/08-RCM
Concomitant control – Main observations (OBS) and recommendations (REC)
OBS. Been carried out more by entering into an additional contract, whose value corresponds to 24.99 percent of the value
of the award, having as basis the occurrence of unpredictable changes in the market situation of livestock and meat
were not established by the developer ;
REC. Have fulfilled the requirements to which the conclusion of additional contracts to perform work more, in particular,
their need was the result of unforeseen circumstances for the works and meet the deadline set out in paragraph 2 of
Article 47 . of the OPLCA for submission to the Court, of additional public works contracts that may have been targeted;
OBS. Failure to comply with the provisions of Article 47, Paragraph 2, the OPLCA in 3 of the 12 additional contracts in that
sample of 36 contracts involved;
REC. Refer to RCA all contracts related to contracts, whatever their designation and evaluation of its contents;
OBS. Default under the prior control No 114/2005 of information likely to mislead the Court into error in its decision on the
financial value of the contract;
REC. Instruct the monitoring procedures with all relevant information available and should be submitted in accordance with
Acts and regulations, including those relating to determining the financial value of the contract or the total public expenditure;
OBS. Breach of the phase of no place in the prior authorization of expenditure and the recording of commitments to third
parties;
REC. To assure prior budgetary provisions of the expenditure and the recording of commitments, in compliance with the
provisions of paragraphs 2.6.1 and 2.3.4.2, al. d) NPALA.

ANEXO II
Successive Control – Audits finished in 2008 3
AREA /Audit Subject No. of report
GENERAL STATE ACCOUNT AND AUTONOMOUS REGIONS
Financial assistance by the Office for the Media (ex-Institute for the Media)
Financial assistance, in 2007, by the Directorate Regional of Education of Lisboa and Vale do Tejo
(DRELVT)
60
45/08-2 nd C
41/08-2 nd C
Financial assistance by the National Authority for Civil Protection, in 2007 33/08-2 nd C
Attachment proceedings accomplished by the Directorate-General of Customs 56/08-2 nd C
Control system for the operations accomplished in the ambit of the State Building Heritage - 2007 5 2/08-2 nd C
Cobrança de receitas públicas por entidades colaboradoras 34/08- 2 nd C
State creditors in the area of the Ministry of Finance – interest rebate 16/08-2 nd C
Internal Control System in the ambit of the Direct Regional Administration – circuit survey 08/08-RCM
Commitments made and not paid a)
Accounts Consolidation of the public administrative sector a)
Debt duties a)
Public debt management operations a)
Assumption of passive liabilities and regularization of liabilities a)
Guaranteed Debt a)
Operations reflecting the financial sheets of State a)
Operations reflecting the financial sheets of FSA a)
ADMINISTRATIVE PUBLIC SECTOR
CADIEP AND RADIEP, Communitarian Funds and economic Functions (agriculture,
environment, public Works and transports)
Institute of the Vine and Wine, I.P. (IVV) – Revenue and Expenditure Account of 2006 5/09-2 nd C
Budgetary Programme PO19 – Environment and regional planning 3/09-2 nd C
Programme “Information Society and Electronic Government”, of the CADIEP 54/08-2 nd C
Construction and Real Estate, PI (InCI, IP) – 2006 Expenditure and Revenue account – financial
audit
50/08-2 nd C
Operational Programme for the Public Administration - POAP 49/08-2 nd C
Operational Programme PESCA (MARE) 44/08-2 nd C
Financial Institute for the Regional Development, IP – Technical Assistance Programme Measures
- QCA III, Cohesion Fund II and QREN
Projects of the CADIEP of the CP – Portuguese Railways, E.P., integrated in the Measure 005 –
“Security, Quality and efficiency of the Transport System” of the Budgetary Programme 024 –
“Transports"
43/08-2 nd C
42/08-2 nd C
Regional Directorate for the Environment 17/08-RCA
SIDEP – Premium Subsystem 05/08-RCA
Programme Contract for the Touristic Promotion Development – DRT/ATA 03/08-RCA
Follow-up of the Implementation of the Investments Azores Regional Plan 01/08-RCA
3 The most of the reports is available at the internet page of the PCA: www.tcontas.pt

General Functions of Sovereignty
Opinion on the Parliament account– financial audit
Inspection-General of the Justice Services
Non financial debts of the National Directorate of the Public Police Force - PSP (2006 and 2007)
Recommendations Follow-up in the ambit of the audit to the "Financing of the Regime of Access to
Act and Courts – Management and Control Systems "
National Strategy for Nature Conservation and Biodiversity
Public Investment of Equipment for Armed Forces in the ambit of the Military Programming Act –
Marine Investments
61
Tribunal de Contas
Parecer AL
02/09-2 nd C
57/08-2 nd C
47/08-2 nd C
36/08-2 nd C
31/08-2 nd C
Re-housing Programmes – National Institute for Housing 21/08-2 nd C
External Peripheral Services of the Foreign Affairs Ministry – Computerization and initiatives taken
as a result of former recommendations
External Verification of the PCA Account – Headquarters, 2007 expenditure and revenue account
ALRAA Services Activity and Management
Legislative Assembly of Madeira, 2007 account
Utilization of the parliamentary subventions carried out by the Legislative Assembly of Madeira in
2006
Treasury Account of the Madeira Regional Government - 2007
Treasury Account of the Madeira Regional Government - 2006
Science, Innovation and Higher Education, Education, Culture and Sports
Inspection-General of Education
Social Action Services of University Technologic of Lisboa (2006 expenditure and revenue account)
National Theatre of S. João, E.P.E.
Higher Technology Institute (2006 expenditure and revenue account)
Social Action Services of University of Coimbra (2006 expenditure and revenue account)
Acquisitions of goods and services, 2005 expenditure and revenue account - University of Algarve,
University of Beira Interior, University of Évora, University of Trás-os-Montes and Alto
Douro
Acquisitions of goods and services, 2005 expenditure and revenue account - University do Évora
Acquisitions of goods and services, 2005 expenditure and revenue account – University of Algarve
Rectory of New University of Lisboa (2006 expenditure and revenue account) – financial audit
DREALE – Directorate Regional of Education of Alentejo (2005 expenditure and revenue account)
Primary School integrated with secondary education of Povoação and Scholar Fund, Azores
Secondary School Vitorino Nemésio and Scholar Fund, Azores
Primary School integrated with secondary education of Água de Pau and Scholar Fund
03/08-2 nd C
VEC 1/08-2 nd C
06/08-RCA
10/08-RCM
05/08-RCM
VEC 11/08-RCM
VEC 1/08-RCM
04/09-2 nd C
55/08-2 nd C
51/08-2 nd C
38/08-2 nd C
30/08-2 nd C
RS1/08- 2 nd C
20/08-2 nd C
19/08-2 nd C
08/08-2 nd C
07/08-2 nd C
18/08- RCA
09/08- RCA
04/08- RCA
Financial assistance to the Private Teaching Institutions 13/08-RCM
Health
Implementation of the management Contract of the HFF - Hospital Fernando da Fonseca
(Amadora-Sintra) – Performance audit
Hospital of Faro, EPE – Identification of the main creditors and characterization of the respective
debts
46/08-2 nd C
40/08-2 nd C

Hospital Garcia da Orta, EPE – Identification of the main creditors and characterization of the respective
debts
62
39/08-2 nd C
Control System for the Pharmacy Billing 35/08-2 nd C
Hospital Centre of Setúbal, EPE 27/08-2 nd C
Project of the New Hospital of Cascais in PPP 06/08-2 nd C
Hospital of Horta (2006 expenditure and revenue account) 14/08-RCA
Hospital of Santo Espírito of Angra do Heroísmo (2006 expenditure and revenue account) 12/08-RCA
Social Security, Labour/Employment and Professional Training
Inspection-General of Ministry for Labour and Solidarity 01/09-2 nd C
Systems for collecting contributions and allotments and relationship with collaborating institutions
in their collection
53/08-2 nd C
Wage Guarantee Fund (WGF), 2006 expenditure and revenue account, financial audit 25/08-2 nd C
Professional Training Centre for Fisheries Sector (FORPESCAS), financial audit 24/08-2 nd C
LOCAL AUTHORITIES
Municipality of Óbidos - 2004/2005 expenditure and revenue accounts 28/08-2 nd C
Parish Council of Carvoeira - 2005 and 2006 expenditure and revenue accounts 17/08-2 nd C
Parish Council of Gavião (Vila Nova de Famalicão) – 2006 expenditure and revenue account
Study Centre and local Authority training - 2004 and 2005 expenditure and revenue accounts
Municipality of Vila Nova de Famalicão - 2006 expenditure and revenue account
Municipality of Vila Real - expenditure and revenue accounts 2005 and 2006 – financial audit
Parish Council of São Martinho do Porto - expenditure and revenue accounts 2003/2004
Municipality of Velas, Azores
Full time support in judicial proceedings to the Municipality of Santa Cruz das Flores President and
to the Town Councillor
Municipality of Vila do Porto
Municipality of Funchal within the scope of the factuality indicating eventual recovery financial liability
mentioned in the Report of the Inspection Administrative and Financial to the 2003 and
2004 expenditure and revenue accounts
Funchal Municipality Parish Council Within the scope of the transfer and other support means -
2006
STATE OWNED COMPANIES SECTOR (SOCS)
SOCS and Operation and Staff Expenditure of the Central Administration
Debits and medium-term for payment of the commercial transactions of the SOCS (Management
thematic)
15/08-2 nd C
14/08-2 nd C
12/08-2 nd C
11/08-2 nd C
04/08-2 nd C
15/08-RCA
13/08-RCA
07/08-RCA
12/08-RCM
07/08-RCM
48/08-2 nd C
Public Works Slippage – Third vertical report – Music House 37/08-2 nd C
Recommendations Follow-up within the scope of the State Owned Companies Sector and good
governance practices
32/08-2 nd C
Consultancy Expenses of the Central Administration 29/08-2 nd C
AdP – Portugal Waters, SGPS, PLC – 2003 to 2006 Expenditure and revenue accounts 23/08-2 nd C
Public Works Slippage – Blue Line - Terreiro do Paço Tunnel/ Santa Apolónia – Second Vertical
report
22/08-2 nd C

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Tribunal de Contas
Summary of The Regulation Theme 18/08-2 nd C
Management of the Public-Private Partnership Management - road concessions 10/08-2 nd C
Public Works Slippage – Rehabilitation of the Rossio Tunnel– First vertical report 5/08-2 nd C
SOCS for the Autonomous Regions
Financing of the Development companies and of the Madeira Business Parks Company, Plc -
2006
06/08-RCM
Investments and Water Management, PLC – 2006 02/08-RCM
State Owned Municipal Companies Sector
Follow-up to the EMSUAS – Municipal company of Alcácer do Sal Urban Services, MC recommendations
(Rel. 4/05)
26/08-2 nd C
PISOESTE (Inert Park and Western Services) – Ex-PICMAO recommendations compliance 13/08-2 nd C
Vendas Novas Industrial Park Company- performance audit 09/08-2 nd C
a) Action without autonomous report, developed in the ambit of the GSA Opinion.
RS – Summary Report
Successive Contol – Follow-up Reports in 2008
AREA/FOLLOW-UP SUBJECT
Follow-up of the Budgetary Implementation
Follow-up of the implementation of Social Security Budget – January to March 2008
No. of report
3/08-AEOSS
Follow-up of the implementation of Social Security Budget - January to December 2007 2/08-AEOSS
Follow-up of the implementation of Social Security Budget - January to September 2007 1/08-AEOSS
Follow-up of the implementation of State Revenue – January to June 2008 1/08-AEORE
Health
Follow-up of the Economic and financial situation of NHS in 2007
01/08- ASEFNHS
- 2 nd C
Successive Control – Main observations (OBS) and recommendations (REC)
GENERAL STATE ACCOUNT (GSA) AND AUTONOMOUS REGIONS ACCOUNTS (ARA)
OBS. No relief from all the tax-the GSA, existing taxes to which it is not given any value, and for those in which the quantification
is carried out, this is either incomplete, not including, in particular, all types of benefits or is insufficiently down
by not taking into account the classifier of tax benefits or state standards and legal instruments that grant the benefits.
REC. Assess the tax expenditure to fully detailing the amounts recorded in the report of the GSA, and working to improve
the quality of forecasting methods.
OBS. Accounting for revenue, amounting to 902, 2 million (in 2005 were 801, 6 million), without a corresponding cash register,
in breach of the conditions laid down in paragraph 2 of Article 2. Of Decree Regional Legislative (RLD) No
33/2004/A of 25 August.
REC. Overhauling the current system of "treasuries", standardizing and providing the documentation needed to confirm the
values recorded in income (see paragraph 33/2004-A RLD, 25 August).
OBS. Transfer in 2005, the AAR for SATA Air Azores part of the funds from the privatization of the Electricity of the Azores
(EDA) (21, 5 million) for incorporation into the capital. Despite Security Council Resolution 121/2005 of 21 July of the

Governing Council, the company has not carried out in the years 2005 and 2006, no increase in capital, leaving as a
result, the region with a net asset, one before future capital subscriptions, in that amount.
REC. Affect the revenue of the share capital of Public Enterprises in particular in view of the CPR and the Framework Act of
Privatization, the Government should provide the adjustment of transfers to the SATA Air Azores.
OBS. Lack of uniform criteria in reporting on the maps of the GSA concerning financial aid and compensation paid to individuals,
which will come from the fact that the BFL not define the term "private", which has no direct correspondence
in the current classifier economic costs.
REC. In AR, clarify the content of the statements mentioned in paragraphs b) and c) of paragraph 2 of Article 76. Of BFL.
OBS. Weather in the State Budget Act for 2007, the deduction of interest income resulting from the application of operations
over the state treasury, expenditure on interest payments by the State, which came to pass, contrary to BFL,
which does not provide such an exception to the rule of no compensation.
REC. In the AR, not to include in future Acts OE rules to this type of compensation.
OBS. Insufficient information available in the account of DAF to determine the contribution of DAF in the establishment of
SPA Deficit (General Government), according to ESA 95 (European System of National Accounts and Regional) for
the purpose of compliance with Article 104. of the EU Treaty and the Community Regulations (EC) Nos 1466/97 and
1467/97, both of 7 July 1997 relating to the SGP (Stability and Growth Pact).
REC. Appear on behalf of CEOS information to determine the contribution of DAF to calculate the deficit of the SPA, according
to ESA 95.
OBS. Assumption of liabilities and regularization of responsibilities arising from past situations, involving the liquidation of
452,1 million Euros, illegally, outside of OE, for specific operations of the Treasury. In 2007, there were also spent
11.6 million Euros, the Portuguese Carbon Fund, mainly in financial assets, without having been recorded in the GSA.
These events call into question the reliability of the GSA, to prevent that this reflects, in full, public expenditure, given
that, following successive recommendations of the Court, this illegal practice is corrected from the State Budget Act
for 2008.
ADMINISTRATIVE PUBLIC SECTOR
CADIEP and RADIEP, community funds and economic functions (agriculture, environment,
public Works and transports)
OBS. Inclusion, the Office of Construction and Property, IP (INCI, IP), Account 2006, charges and payments pertaining
to the budgetary management of the following year, which affected the balance of management at least 429.962
million Euros, in violation of annuality principle enshrined in Article 4 of the BFL;
REC. Respect the deadlines for making payments of expenditure under the budget implementation decrees, noting an
annual principle enshrined in BFL;
OBS. Non compliance, of the InCI, in the implementation of the State Treasury Regime (STR), approved by Decree-Law
No. 191/99, of 5 June (Article 2, paragraph 2). The Institute moved and presented certificates of balances and
reconciliations for 8 bank accounts, of which 6 in the Caixa Geral de Depósitos and the remainder in IGCP, IP;
REC. Fully comply with the STR, approved by Decree No. 191/99, of 5 June, and the INCI, IP undertake, in partnership
with the IGCP, IP, for the accounts held at commercial banks are strictly necessary, respect, only to situations requiring
that operation are not provided by this institute. These situations, waste should be properly justified
General Functions of Sovereignty
OBS. Significant reduction in the availability of funds for the completion of capital expenditure under the Act of Military
Program (RMP) under the blocking of funds to cover charges for "preparation and Operations Forces Training (expenses),
changing the structural program ing in reflection with the achievement of objectives;
REC. The Government, review the way in supporting the current costs, eliminating the high cativações and transfers of
funds allocated for the MPL, leading to reduced implementation of projects and an accumulation of high sales;
OBS. Incurring debts by NDPPS worth 31 and 36 million respectively in 2006 and 2007, resulting from recurrent shortages
of funds and of the OE, despite the repeated use of extra budgetary reinforcements, the NDPPS has able to
sustain the payment of all claims;
64

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Tribunal de Contas
REC. In the NDPPS, implement measures to enhance the reliability of the information produced and take the necessary
measures to stabilize the debt;
OBS. Lack of assessment for the implementation of the National Strategy for Nature Conservation and Biodiversity
(transversal nature) and its revision is unknown whether the guidelines governing the financing of their activities by
2010;
REC. Making a strategic assessment of the NSNCB in order to evaluate if the undertaken activities contribution to the
improvement of the nature and biodiversity conservation status in Portugal.
Science, Innovation and Higher Education, Education, Culture and Sports
OBS. Payments in the amount of 3 million, in advance, no legal provision empowering;
REC. Rely on the figures for reimbursement and advances to suppliers only under the Act;
OBS. Identification, in the procedure of granting by the SRE to the private institution of learning, of investment incentives,
the weaknesses, which reflect the absence of documentary evidence of the analysis prior to the disbursement
of funds, as well as the absence of essential elements to the investigation of their processes, not having been
shown, in most cases, in assessing the amount of aid granted was behind the criteria set out in the Regulations
apply, corresponding generally assigned values to the amounts requested by the recipient;
REC. Intensify Efforts to address the implementation of an effective internal control, including the issue of standards and
/ or internal guidelines and regulatory procedures for granting, monitoring and supervision of financial support to
private schools, and also by promoting a clear definition and identification of circuits, as well as the players and
managers involved in this field;
OBS. Illegal payment of about 1.3 million workers under the CIT, for their fixed-term contracts have been transformed
into permanent contracts.
Health
OBS. Failure of the Setúbal Hospital Centre, EPE (SHC, EPE) of the principle of unity of the state treasury, approved by
Decree No. 191/99 of 5 June;
REC. Comply with the principle of unity of the state treasury, upon the transfer of cash and cash equivalents of SHC,
EPE accounts for the IGCP, IP;
OBS. Superiority of Passive SHC, EPE, mostly short term, in relation to their assets, resulting in financial losses (deficit
Treasury) financed largely by debt providers;
REC. Taking initiatives leading to economic and financial balance;
OBS. Presentation at Hospital Garcia da Orta, EPE (HGO, EPE), difficulties in meeting their commitments with suppliers,
with average payment to suppliers more than one year;
REC. Implement an action plan leading to a reduction in average payment;
OBS. No disclosure of factoring companies in the financial statements of HGO, EPE;
REC. Adopt measures to control debts to suppliers to enable the accounting records properly updated the claims of factoring
companies.
Social Security, Labour/Employment and Professional Training
Within the scope of the Opinion on the Social Security account (SS)
OBS. As regards expenditure designated "Management", lack of budgetary control in terms of number of required and
commitment to the appropriations allocated in the maps legally provided for each system / subsystem. In practice,
changes in the budget those costs, when spread on the maps that embody the legal OSS, are mere arithmetic exercises
designed to give legal cover to those appropriations and maps that often occur when the costs are now implemented
to comply with the basic Act of social security.
REC. Reconcile the legal provisions which establish the procedures for budgeting, financing and economic classification
of revenue and expenditure;
Within the scope of financial audits

OBS. No publication of the decree of the Ministers of Finance and the area of employment setting the terms on which
financing is assured of the Wage Guarantee Fund (WGF) by employers (part of the contribution rate) and the state;
REC. The Secretaries of State and Finance and Labor and Social Security, provide for regulating the financing by the
state, the WGF in accordance with the stipulations of Article No. 321 of Act No. 35/2004 of 29 July;
OBS. No relief to the accounts of WGF, the deductions of contributions to the SS (single social rate - SSR) and the IRS
the amounts paid to employees or taking them to the authorities (SSFMI and State), influencing the whole process
derives from the preparation of the initial budget of WGF to the presentation of the financial statements, which are
undervalued both in terms of expenditure or the level of debt to third;
REC. The Ministry of Labor and Social Solidarity, define procedures to comply with the WGF established by legislation in
force as to surrender to authorities of the amount deducted and withheld from the payments made to employees;
Local Authorities
OBS. Lack of monitoring and control of the use made of financial assistance;
REC. Establish ways of monitoring and enforcement of financial support and enforcement of the rules on advertising of
the same;
OBS. Poor monitoring and supervision of the municipal undertakings by the municipal bodies.
REC. Monitor and supervise effectively the activities of municipal enterprises, and it is appropriate that their accounts
incorporate the process of accountability of the Municipalities;
OBS. Improper accounting registration of subsidies for investment.
REC. Recognizing the right perception of the funds associated with grants for investments on the level of implementation
of expenditure that they Support the aim and not the date of conclusion of the relevant contracts;
OBS. Failure to comply with Acts relating to registration and monitoring of commitments with a focus on future budgets;
REC. Record the multi-year accounts in proper budgetary control;
OBS. Identification of weaknesses in internal control system, particularly in the areas of processing revenue from the
provision of water and the assets, not subject to ongoing monitoring and evaluation by the executive;
REC. Adopt accounting procedures and control system provided in the internal control standard, the application should
be monitored and continuously evaluated by the executive.
STATE OWNED COMPANIES SECTOR
SOCS and Staff and Operating expenditure of the Central Administration
OBS. Deficits in the tariff of the Portugal Water (ADP), SGPS, SA, noting that most of the tariffs on some multi-municipal
systems are offered significantly below cost, hence the urgency of restructuring the sector, which already, in fact,
started with the second Strategic Plan for Water Supply and Wastewater (SPWSWT) II;
REC. Implementation of measures for the restructuring of the AdP, SGPS, SA, giving it a solid economic and financial
sustainability to enable it to implement successfully the task which the government attributed to him, in particular
SPWSWT II;
OBS. Reversing the economic and financial situation of the AdP, SGPS, SA, with its net profits by 2005, given the positive
effect of Community funds received, but negative results in 2006 as a result of losses arising from the international
business unit;
REC. To promote greater efficiency and self-sustainability of economic and financial companies of the AdP, SGPS, SA,
in general, and the companies that formed the area of service vehicles, in particular;
OBS. Assumption, the 20 companies audited in the audit of the accounts receivable to an average payment of Public
Enterprises, in 2007, the total debts of 17.48 billion, accounting for 17 percent of total spending from the budget to
that year. The average payment of these companies were found to be generally above the agreed deadlines with
suppliers in different ways. As a result, paid interest in 2007, which totaled about 604.3 million;
REC. audited entities redefine and improve administrative procedures relating to payment to suppliers and the state,
provide more timely payment of debts to public enterprises, including compensation.
66

State Owned Municipal Companies Sector
OBS. Deficiencies in the system of internal control;
REC. Implementation of standards and internal control procedures;
67
Tribunal de Contas
OBS. Lack of proper tender procedure for the award of contracts, in breach of the provisions of DL 59/99, 2 / 03;
REC. Compliance with legislation on the award of public works

SIGLA
AAR Azores Autonomous Region
ADIST Development Association of the Higher Technology Institute
AdP, SGPS, Plc, Portugal Water, SGPS, Plc
ADUL Lisboa University Association
AG Attorney General
AR Assembly of the Republic
ATA Azores Tourism Association
CADIEP Central Administration Development Investment and Expenses Program
PCC Public Contracts Code
SHC, EPE Setúbal Hospital Centre, EPE
Municipality
CMBS Checking Medicine Bill System
CPC Corruption Prevention Council
CPF Carbon Portuguese Fund
CPSC Community of the Portuguese Speaking Countries
CPR Constitution of the Portuguese Republic
DGB Directorate-General for the Budget
DGSS Directorate-General for the Social Security
DGT Directorate-General for Treasury
DL Decree-Law
DGV Directorate-General of Veterinary
DRA Directorate Regional for Agriculture
DRELVT Directorate Regional for Education of Lisboa and Tagus Valley
DRT Directorate Regional for Tourism
SUTC Statute of the University Teaching Career
EDA Azores Electricity
ECA European Court of Auditors
EM Municipal Companies
NSNCB National Strategy for Nature Conservation and Biodiversity
PH, EPE Portugal Highways, EPE
ERSS Entities related with Social Security
BFL Budgetary Framework Law
ESNRA 95 European System of National and Regional Accounts
EU European Union
EURORAI European Organization of Regional Audit Institutions
EUROSAI European Organization of Supreme Audit Institutions
EVA External Verification of Accounts
GSA General State Account
HASSG Fernando Fonseca Hospital
HGO, EPE Hospital Garcia da Orta, EPE
HIMT, PI Harbour Institute for the Maritime Transports, PI
HRA Health Regional Administration
HRALVT Health Regional Administration of Lisboa and Tagus Valley
IBAN International Board of Auditors for NATO
IC Innovation and Knowledge Unity – Agency for Knowledge Society, PI
ICS Internal Control System of the State Financial Administration
IdQ Identification and Qualification System
IFAC International Federation of Accountants
IGSJ Inspection-General for Justice
IIPF International Institute of Public Finance
InCI, PI Institute for Construction and Real Estate, PI
INTOSAI International Organization of Supreme Audit Institutions
ISS Inter-banking Services Society
ISS, IP Institute for the Social Security, PI
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69
Tribunal de Contas
IT Information Technologies
IVA Internal Verification of accounts
MAR Madeira Autonomous Region
MJ Ministry for Justice
MOPMAR Multi-fund Operational Programme for the Madeira Autonomous Region
MPL Military Programme Law
NAO National Audit Office
NDPPS National Directorate for the Police and Public Security
NCEL National Civil Engineering Laboratory
NPA National Plan of Accounts
NPALA National Plan of Accounts for Local Authorities
NHS National Health Service
OBS Observations
OECD Organization for Economic Cooperation and Development
OJEC Official Journal for the European Communities
OLACEFS Latino-American and Caribbean Organization of Supreme Audit Institutions
OPLCA Organization and Procedure Law for the Court of Auditors, Act no. 98/97, of 26 August
PIDA, PI Portuguese Institute for Drugs and Addiction
PP Public Prosecutor
PPO Portugal Post-Office, Plc
PSSEP Primary School integrated with secondary education of Povoação
PNPA Plano Oficial de Contabilidade Pública
RADIEP Regional Administration Development Investment and Expenses Program
RAVE, Plc High Speed Rail Project, Plc
RCA Regional Chamber of Azores (of the Court of Auditors)
RCM Regional Chamber of Madeira
REC Recommendations
RLD Regional Legislative Decree
SAIS Supreme Audit Institutions
SB State Budget
SGP Stability and Growth Pact
SOCS State Owned Company Sector
SPIRO Strategic Planning and International Relations Office
SPWSWT Strategic Plan for Water Supply and WasteWater Treatment
SS Social Security
SSA Social Security Account
SSFIS Social Security Financial Information System
SSFMI Social Security Financial Management Institute
SSR Single Social Rate
STR State Treasury Regime
UMa University of Madeira
VNIPC Vendas Novas Industrial Park Company– Urbanization, Management and Training, Plc.
WGF Wage Guarantee Fund
Lisboa, 25 May 2009