1. CRISTINA BREDEN – Director ROMANIAN COURT OF ACCOUNTS
THE COMPLIANCE AUDIT OF PUBLIC PROCUREMENT PERFORMED BY THE ROMANIAN COURT OF ACCOUNTS
CRISTINA BREDEN – Director
ROMANIAN COURT OF ACCOUNTS
Directorate for Audit of Public Procurement, Methodology and Professional Training

2. INTRODUCTION
2. THE LEGAL REQUIREMENTS FOR COMPLIANCE AUDIT OF PUBLIC PROCUREMENT
3. THE ROMANIAN COURT OF ACCOUNTS AND THE NATIONAL STRATEGY FOR PUBLIC PROCUREMENT
THE GUIDELINE FOR COMPLIANCE AUDIT OF PUBLIC PROCUREMENT
COMPLIANCE AUDIT FINDINGS
THE GUIDELINE FOR COMPLIANCE AUDIT OF PUBLIC PROCUREMENT PREPARED IN COLLABORATION WITH OTHER EU SAIs

3. EUROPEAN UNION = Internal single market
1. INTRODUCTION
EUROPEAN UNION = Internal single market
The EU Member States have to implement in their national legislation:
Directive 2014/23/EU (award of concession contracts)
Directive 2014/24/EU (public procurement)
Directive 2014/25/EU (procurement by entities operating in the water, energy, transport and postal service sectors)
Principles deriving from these directives:
Equal treatment
Non-discrimination
Mutual recognition
Proportionality
Transparency
Public entities from EU state members have to comply with the requirements of a competitive contract award process and to take their decisions in a transparent way, with equal respect for all participants.

4. Obligations imposed on EU state members:
1. INTRODUCTION
Directive 2014/23/EU (award of concession contracts)
Directive 2014/24/EU (public procurement)
Directive 2014/25/EU (procurement by entities operating in the water, energy, transport and postal service sectors)
Obligations imposed on EU state members:
Advertising the procurement publicly (OJEU)
Adopting procedures providing open and transparent competition (proportionality)
Using non-discriminatory technical specifications
Allowing sufficient time for submission of interest expressions and tenders
Applying clear, objective and notified criteria
Equal treatment of biders

5. 1. INTRODUCTION
In most of the EU Member States, public procurement represents 14% of GDP. But, public procurement is a risk area for fraud and corruption and these usually result in the misuse of public funds.
Supreme Audit Institutions (SAIs) audit the use of public funds and, depending on mandates, may also audit compliance with principles of sound financial management and value for money.

6. 2. THE LEGAL REQUIREMENTS FOR COMPLIANCE AUDIT OF PUBLIC PROCUREMENT
The Romanian Court of Accounts’ competences regarding the audit of public procurement
(over public auditors)
The Constitution of Romania
– art The Court of Accounts
Law no. 94 /1992 (re-issued in 2008) on the organization and operation of the Romanian Court of Accounts
The National Strategy of Public Procurement (2015):
- the ex-post audit is performed exclusively by the Romanian Court of Accounts
- includes 2 measures to be implemented by the Romanian Court of Accounts
Measure no. 1:
To ensure adequate human resources, training,
guidelines
Measure no. 2:
To establish a coordinating mechanism with the Audit Authority (audit of EU funded projects) to align audit procedures
Law no. 98/2016 on public procurement
Law no. 99/2016 on sectoral procurement
Law no. 100/2016 on concession contracts

7. 3. THE ROMANIAN COURT OF ACCOUNTS AND THE NATIONAL STRATEGY FOR PUBLIC PROCUREMENT
PRESIDENT OF THE ROMANIAN COURT OF ACCOUNTS
Directorate for audit of public procurement, methodology and professional training (22 public auditors)
Unit 1
Methodology, training, reporting
Unit 2
Compliance audit of public procurement
Measure no. 1: To ensure adequate human resources, training,
guidelines
Training programme on audit of public/sectoral procurement, concesions of services and works
(over 65 courses in the past 2 years = over 1000 auditors)
Monitoring the public procurement system and the audit findings
Communicating risk factors
Reporting
Compliance audits of public procurement
(on the basis of risk factors communicated to the Romanian Court of Accounts - complaints and petitions)

8. 3. THE ROMANIAN COURT OF ACCOUNTS AND THE NATIONAL STRATEGY FOR PUBLIC PROCUREMENT
HARMONIZATION OF PUBLIC PROCUREMENT PROCEDURES
the legal mandate and the basic function of the Romanian Court of Accounts,
the internal regulations of the Romanian Court of Accounts,
the provisions of the legislative package in the field of public procurement, sectoral procurement and concessions of works and services, approved in 2016,
National standards issued based on international auditing standards,
the audit procedures used by the Audit Authority, as well as
the ex-ante procedures used by the National Agency for Public Procurement.
Measure no. 2: To establish a coordinating mechanism with the Audit Authority (audit of EU funded projects) to align audit procedures
AUDIT AUTHORITY
ROMANIAN COURT OF ACCOUNTS
Directorate for audit of public procurement, methodology and professional training
Synthesis, methodology and audit quality Unit

9. 4. THE GUIDELINE FOR COMPLIANCE AUDIT OF PUBLIC PROCUREMENT
The Guideline on audit of public procurement was issued based on:
the legal mandate of the Romanian Court of Accounts
ISSAI 100
ISSAI 400
ISSAI 4000
National regulations regarding public procurement

10. 4. THE GUIDELINE FOR COMPLIANCE AUDIT OF PUBLIC PROCUREMENT
Documentation, Comunicaction, Quality control
Objectives of compliance audit of public procurement
Elements of compliance audit (three parties of the audit, subject matter, authorities and audit criteria, type of assurance)
Initial considerations
Judgement and professional skepticism
Audit risk
Materiality
Documentation
Comunication
Quality control
Management and skills of the audit team
General principles of compliance
audit
Understanding the nature of the auditee’s activity
Evaluation of the entity's internal control system
Assessment of audit risk and risk of fraud
Selection of public procurement contracts/framework agreements
Compliance audit strategy
Compliance audit plan
Planning of compliance audit of public procurement

11. 4. THE GUIDELINE FOR COMPLIANCE AUDIT OF PUBLIC PROCUREMENT
Documentation, Comunicaction, Quality control
Applying audit procedures
Obtaining audit evidence
Assessment of audit evidence
Execution of compliance audit
Reporting
Preparation of the compliance audit report, including the entity's management point of view and the recommendations
Decision including measures to be implemented by management of auditee
Referral to prosecution bodies
Follow - up
Enforcement of recommendations and follow-up

12. Planing of the procurement process
4. THE GUIDELINE FOR COMPLIANCE AUDIT OF PUBLIC PROCUREMENT - AUDIT CHECKLISTS
Planing of the procurement process
Did the public authority identify the necessity of goods/services and works correctly, based on needs?
Did the public authority calculate the contract value accurately?
Did the public authority elaborate the annual procurement plan in connection with its budget allocations?
Are adequate and legal financing arrangements taken (an adequate budget in place)?
Was the contracting strategy issued?
Are internal control systems in place?
Did the public authority decide for an appropriate and admissible procurement procedure?

13. Procurement procedure
4. THE GUIDELINE FOR COMPLIANCE AUDIT OF PUBLIC PROCUREMENT AUDIT CHECKLISTS
Procurement procedure
Was timely and equal access to contract documents and information provided to all candidates?
Are pre-qualification criteria properly defined?
Are the evaluation criteria relevant?
Were the procurement documents comprehensive, transparent and non-discriminating?
Have the tenders been assessed on the published criteria only?
Was a formal review of tenders received undertaken?
Was the suitability of candidates accurately assessed?
Were the documents received scrutinised for completion and adherence to stated conditions before the tenders were evaluated?
Were bids properly evaluated?

14. Procurement procedure
4. THE GUIDELINE FOR COMPLIANCE AUDIT OF PUBLIC PROCUREMENT AUDIT CHECKLISTS
Procurement procedure
Did the chosen procedure ensure competition, transparency and equal treatment?
Was the outcome of the award process properly reached and communicated?
Was the submission of variant tenders accepted and duly ruled?
Was confidentiality ensured when necessary?
Where applicable, did the public authority adequately manage experts employed to assist in the procurement process?
Was the contract awarded to the right bider based on the outcome of admissible and acceptable bids’ evaluation?
Was transparency assured through communication at each stage?

15. AUDIT CHECKLISTS Implementation and monitoring of contract
4. THE GUIDELINE FOR COMPLIANCE AUDIT OF PUBLIC PROCUREMENT
AUDIT CHECKLISTS
Implementation and monitoring of contract
Is the execution of the contract adequate and does this comply with the provisions of the contract?
Were any identified modifications to contracts or additional works or deliveries admissible without the need for a new procurement procedure?
Is the execution of the contract adequately managed and monitored?
Are procurement processes well organized and documented?

16. 5. COMPLIANCE AUDIT FINDINGS in year 2017, for year 2016 budget
Audited year
Year of audit
Number of audited entities
Number of findings
Total
Entities with errors %
Regarding public procurement process 1 2
3=2/1*100 4 5
6=5/4*100
2015
2016
2,437
900
36.93
23,514
2,203
9.37
2017
2,406
1,176
48.88
21,980
3,157
14.36

17. 5. COMPLIANCE AUDIT FINDINGS in year 2017, for year 2016 budget
Audited year
2015
2016
Total value of public funds used for procurement of goods, services and works (mil. Euro)
13,127
13,325
Value of funds missused (mil. Euro)
42.98
47.3 %
0,33%
0,35%

18. 5. COMPLIANCE AUDIT FINDINGS in year 2017, for year 2016 budget
Denumire domeniu de activitate
Number
Entities %
Findings
Local authorities
1,018
86.56
2.846
90.15
Economy; Energy 21
1.79 42
1.33
Health, Labor and Social security 36
3.06 70
2.22
Environment 9
0.77 32
1.01
Transportation 11
0.94 24
0.76
Agriculture 27
2.30 45
1.43
Culture; Education; Research; Sport 23
1.96 39
1.24
Defence and public order 7
0.60 17
0.54
Central administration
1.45 29
0.92
Comunication; Audio – visual 1
0.09 2
0.06
Justice; others 3
0.26
0.10
Finance and assurance 8
0.25
TOTAL GENERAL
1.176
100
3.157

19. 5. COMPLIANCE AUDIT FINDINGS in year 2017, for year 2016 budget

20. 6. THE GUIDELINE FOR THE COMPLIANCE AUDIT OF PUBLIC PROCUREMENT PREPARED IN COLLABORATION WITH OTHER EU SAIs
The Directorate for audit of public procurement, methodology and training collaborated with representatives of other Supreme Audit Institutions from the European Union’s Member States on the updating of the Guide on the audit of public procurement, on the basis of the new European directives on public procurement, as well as the case- law of the European Court of Justice.

21. THANK YOU FOR YOUR ATTENTION!