ORDER OF THE GOVERNMENT OF THE REPUBLIC OF MOLDOVA

of October 21, 2014 No. 875

About approval of the Regulations on financial monitoring of the state/municipal companies and commercial societies with completely or mainly the public capital

For the purpose of realization of provisions of article 21 of the Law on management of public property and its privatization No. 121-XVI of May 4, 2007. (The official monitor of the Republic of Moldova, 2007, Art. No. 90-93, 401) DECIDES: the Government

1. Approve Regulations on financial monitoring of the state/municipal companies and commercial societies with completely or mainly by the public capital it (is applied).

2. Declare invalid the Order of the Government No. 580 of May 8, 2008 about approval of the Regulations on financial monitoring of the state / municipal companies and commercial societies with completely or mainly the public capital (The official monitor of the Republic of Moldova, 2008, Art. No. 88-89, 580).

Approved by the Order of the Government of the Republic of Moldova of October 21, 2014 No. 87

Regulations on financial monitoring of the state/municipal companies and commercial societies with completely or mainly the public capital

I. General provisions

1. The regulations on financial monitoring of the state/municipal companies and commercial societies with completely or mainly the public capital (further - the Provision) establish procedure for the organization and carrying out financial monitoring, processing and use of information for the purpose of consolidation of financial discipline and increase in efficiency of use of public property.

2. Financial monitoring of activities of the state companies and commercial societies with completely or mainly the state capital is performed by the Ministry of Finance, and activities of the municipal companies and commercial societies with the capital, completely or mainly to the belonging administrative and territorial units, - bodies of local public authority.

3. For the purpose of this provision the main determinations mean the following:

the companies - the state/municipal companies and commercial societies with completely or mainly the public capital;

financial monitoring - selection process, processings and the analysis of indicators of financial and economic activities of the companies;

documentary check - the element of financial monitoring consisting in comparison of indicators of financial situations and other information which the organization (body) performing monitoring has;

assessment - the element of financial monitoring consisting in determination of results of activities of the companies, reflecting the main indicators allowing to create general idea about their financial and economic situation, and also to determine influence of these indicators on activities of the companies.

II. Organization of carrying out financial monitoring

4. Financial monitoring is performed based on:

1) the given financial situations, statistic account of the companies provided by Service of financial situations under National bureau of statistics;

2) information on the public property (property) of the companies registered in the Register of public property, provided by the Agency of public property subordinated to the Ministry of Economics (further - the Agency of public property), at the request of the body performing financial monitoring;

3) information on the tax liabilities (charges, repayments and the allowed obligations), and also on tax benefits and releases, the provided State Tax Administration;

4) information on debts of the companies, monitoriziruyemy the Ministry of Finance according to the Law No. 419-XVI of December 22, 2006 on public debt, the state guarantees and the state recrediting;

5) information on securities: about stock and off-exchange exchange transactions with government securities and the additional share issues registered in the State register of securities, provided

National commission on the financial market and in case of need professional participants and issuers of the security market.

5. Besides, in the course of preparation of implementation of financial monitoring the audit report provided by the companies and also other relevant information concerning activities of the companies are used.

III. Implementation of financial monitoring

6. For the purpose of implementation of financial monitoring the list of the companies which are subject to monitoring by reconciliation of number of the companies submitting financial situations, statistic reports to Service of financial situations under National bureau of statistics with data from the Register of public property is determined.

7. Financial monitoring of activities of the companies is performed by application of method of documentary reconciliation and quantitative analysis (financial and economic indicators, indexes, coefficients, rate), and assessment - by application of qualitative analysis (method of division and decomposition of results on their components, comparisons, interpretations of results, and also generalization of results and their assessment) in the following procedure:

1) studying and systematization of the given financial situations, statistic account of the companies;

2) studying and systematization of data on the tax liabilities (charges, repayments and assumptions of debt), and also about tax benefits (releases) provided by the State Tax Administration;

3) data analysis about debts of the companies, monitoriziruyemy the Ministry of Finance according to the Law No. 419-XVI of December 22, 2006 on public debt, the state guarantees and the state recrediting;

4) the analysis and systematization of information on the performed stock and off-exchange exchange transactions with government securities and the additional share issues registered in the State register of securities, the provided National commission on the financial market and in case of need and professional participants or issuers of the security market;

5) studying of information which is in the audit opinion provided by the companies and also other relevant information concerning activities of the companies.

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