Buletin 3_4-2010 web.pdf - Curtea de Conturi a Republicii Moldova

performanCe audIt – effICIenCy,
effeCtIVeneSS, and eConomy of publIC
fInanCe management
The financial-economic developments of the Republic of Moldova
revealed that it is not enough for the public money to be spent in line
with the legal provisions; it should be used in an economic, efficient
and effective manner .
Currently, the structure and execution of the state budget is based,
to a significant extent, on the so-called “program-based budgeting”
method, which means the allocation of some amounts of money
(budget allocations) for certain projects/programs, quantified
with the help of performance indicators .
These two important milestones justify and support the decision
of the Court of Accounts to implement the performance audit in its
current activity .
According to the INTOSAI, the Performance Auditing is an independent
examination of the efficiency and effectiveness of undertakings,
programs or organizations, with due regard to economy .
The aim of the performance audit is to provide relevant information
about the implementation manner and consequences of public
activities .
The goal of the Court of Accounts is to assess the regularity, legality,
economy, efficiency, and effectiveness of the management of public
finance and public assets, as well as how public authorities fulfill
their duties of public money management .
The Court of Accounts analyzes if the financial operations were
recorded properly, if they were carried out in line with the legal and
regulatory provisions in force and if they were managed with due regard
to economy, efficiency, and effectiveness principles .
Through its activity, the Court promotes the internationally recognized
standards on transparency and accountability in public finance
management and contributes to the improvement of public finance
management and the optimal use of public money .
The performance audits, conducted by the Court of Accounts, represent
an important step in the development of the external public
audit . However, this is a difficult task . Thus, the performance audit
goes beyond the traditional practice of checking only the accounts,
accuracy of financial-accounting papers, and legality of economic
operations . On one hand, the performance audit provides the taxpayers
a clear assessment on how their money is spent . On the other
hand, as a new audit technique, it may contribute to the improvement
of the management in public institutions and reduction of risks
that the public resources could be used inefficiently .
The performance audit is important because the public resources
are allocated to achieve the desired social and economic goals, but
keeping in mind that the resources are scarce and are allocated on
the basis of the established priorities and needs, they should be managed
by users in line with the principles of economy, efficiency, and
effectiveness . It is important to conduct performance audits in public
institutions, given the increasing interest of the society towards their
performance and its concern with how the public money is spent .
Ala Popescu
president of the Court of
Accounts
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Audit activity