Public Expenditure Management Peer Assisted Learning Reports on Execution of the National Public Budget Kishinev, Moldova June 1-3, 2016

2  Budget calendar (Article 47) – submission dates  Periodic performance reports of budgets (Article 72) Monthly Semiannual – (for the first time in 2016, Order of the Ministry of Finance “On the structure, composition and forms of the semiannual report on execution of the national public budget and its components” # 219, of December 29, 2015, the Government submits to the Parliament by August 15)  Annual statements about execution of budgets (Article 73) Law on Public Finance and Tax and Budget Responsibility # 181, of July 25, 2014

3  Financial statements (Article 74) Semiannual For 9 months Annual * The procedure for preparation and submission (requirements, forms and terms) of report on execution of budgets, of which the National Public Budget is comprised is set by the Ministry of Finance in accordance with the valid laws and regulations. Law on Public Finance and Tax and Budget Responsibility # 181, of July 25, 2014

4  Article 38 “Submission of Financial Statements” (6) Public entities and other legal entities, the managers of which are managers of budget spending units, present one copy of the quarterly and annual financial statement to the specialized central bodies of public administration, the local public administration authorities within the terms established by this. (7) Specialized central public administration bodies, local public administration authorities and autonomous public institutions the managers of which are managers of spending units, present to the Ministry of Finance one copy of quarterly and annual financial statements according to the norms and terms established by this. Law on Accounting # 113, of April 27, 2007

5  Article 28 “Performance Reports of Budgets of Administrative and Territorial Units” (1) A financial office and/or financial division of administrative- territorial units prepares quarterly and annual reports on execution of the relevant budgets. (2) Quarterly reports are reviewed and approved by the relevant executive body. (3) Progress reports on execution of the budget of an administrative-territorial unit for the first half year and for 9 months of the current year are heard at a meeting of its representative and authorized body. Law on Local Public Finance # 397, of October 16, 2003

6  Article 28 “Performance Reports of Budgets of Administrative and Territorial Units” (4) The annual report on execution of the budget of an administrative-territorial unit is reviewed and approved by its representative and authorized body not later than February 15 of the year following the reporting year. (5) Within the timeframe set by the Ministry of Finance, financial offices submit to the Ministry consolidated annual and quarterly reports on execution of budgets of administrative-territorial units of the first and second tiers for the purpose of including them in the report on execution of the national public budget. Law on Local Public Finance # 397, of October 16, 2003

7 State Treasury and territorial treasury offices National Social Insurance House National Health Insurance Company Embassies and consulates of the Republic of Moldova abroad (the Ministry of Foreign Affairs and European Integration) Sources of Information for Preparing a Report on Execution of the National Public Budget

8 Report on execution of the National Public Budget and its components Report on execution of the National Public Budget according to the IMF Government Finance Statistics (GFS) Report on execution of the Consolidated Central Budget in accordance with the IMF Special Data Dissemination Standard (SDDS) Monthly Budget Execution Reports

Report on Execution of the National Public Budget (cash method) Ministry of Finance Report on execution of the state budget (Treasury) Report on execution of local budgets (Treasury) Report on execution of the state social insurance budget (National Social Insurance House) Report on execution of compulsory health insurance funds (National Health Insurance Company) 9 * Reports are submitted in paper form and /or on electronic media (SIMF).

Intrabudgetary transfers are excluded in the course of preparing reports on execution of budgets, of which the National Public Budget is comprised 10 Ministry 1Ministry 2 Budget entity 1 Budget entity 2 Budget entity 1 Budget entity 2 State budget

Intrabudgetary transfers and loans are excluded in the course of preparing reports on execution of the National Public Budget State budget State Social Insurance Budget Compulsory Health Insurance Funds Local budgets I tier Local budgets II tier transfers loans transfers loans transfers loans transfers loans 11

Form of a report on execution of the National Public Budget 12 Indicators Planned for the year Executed during the current year Deviation Executed during the current year compared to planned Executed during the previous year Deviation Executed during the current year compared to the previous year Sum (+,-) % % Revenues, total Including … (according to the economic classification) Expenditures and non-financial assets, total including … (according to the functional classification) Deficit (-), proficit (+) Sources of funding Financial assets Liabilities Changes in cash balances Cash balance as of the beginning of the period Cash balance as of the end of the period

13  Report on execution of the state budget (explanatory note)  Form # 1 “Report on execution of the state budget on revenues, expenditures, deficit, sources of financing” (according to Annex # 1 to the Budget Law)  Form # 2 “Report on execution of expenditure limits by public bodies funded from the state budget” (according to Annex # 2 to the Budget Law)  Form # 3 “Report on execution of allocations by central public bodies for financing of capital expenditures” (according to Annex # 3 to the Budget Law) Composition of the annual report on execution of the state budget

14  Form # 4 “Report on execution of transfers from the state budget to local budgets” (according to Annex # 4 to the Budget Law)  Form # 5 “Report on execution of state budget expenditures in accordance with the economic classification”  Form # 6 “Report on execution of allocations from the Government Reserve Fund”  Form # 7 “Balance sheet of execution of the state budget”  Form # 8 “Report on execution of the National Public Budget” Composition of the annual report on execution of the state budget

Composition of financial statements of budget entities 15  Report (explanatory note)  Balance sheet  Statement of revenues and expenditures  Cash flow statement  Report on budget execution  Report on fixed asset transactions, depreciation of fixed assets and amortization of intangible assets  Report on movement of current material balance and state reserves  Report on shortage and embezzlement of cash and material values  Report on the staff composition and number of employees

Problems 1. Budget reports Preparation of a report on execution of the National Public Budget in Excel – partial automation Discrepancies between amounts of the revenue and expenditure parts on interbudgetary transfers (plans and execution) – consolidation 2. Financial statements Different charts of accounts (budget entities, National Social Insurance House, National Health Insurance Company) Different reporting forms – conversion tables Non-observance of submission deadlines 16

17 THANK YOU FOR ATTENTION! Ministry of Finance of the Republic of Moldova General Directorate of the State Treasury