According to the Law on the National Bank of Moldova (Article 68), annual financial reports, accounts and records of the National Bank are subject to annual external audit, in accordance with International Standards on Audit, conducted by an external audit organization with reputation and recognized experience in the auditing of central banks and international financial institutions. The selection of an external audit organization is ensured by the Council of Administration of the NBM, based on a tender. Over the past five years, the financial reports of the NBM were audited by the Ernst & Young and Deloitte & Touche - Moldova, being formed joint audit teams with colleagues from other European countries. For the financial years 2010-2012 as the external auditor is appointed KPMG Moldova SRL.
External auditors are independent in relation to the activity and the NBM Board.
Independent auditors' reports are published on the official website of the NBM ("Publications › NBM Publications › Financial Statements").
Periodically, the central bank's safeguards assessment is assessed by IMF experts to get insurance in the implementation and operation by the central bank of some control systems, accounting, reporting and audit on the management of resources, adequate to the integrity of unfold operations. The assessment covers five key areas relevant to the control and governance within the central banks according to the ELRIC acronym: i) E - external audit mechanism, ii) L - legal framework and central bank independence, iii) R - financial reporting; iv) I - internal audit mechanism v) C - the system of internal controls.
According to the Law on the National Bank of Moldova (Article 21 (2)), the legality and regularity of expenditure estimates of the National Bank are audited by the Court of Accounts of the R.M. External public audit of the Court of Accounts will be limited to the examining of operational efficiency of the decisions taken by the board of the National Bank, excluding the ones related to articles of expenditure related to the implementation of monetary and foreign exchange policy of the NBM. This restriction is imposed to ensure the independence of the NBM in promoting monetary and foreign exchange policy.
Internal Audit Department
NBM CG, Director: Galina Balanov
Tel: (+373 22) 227-988
Fax: (+373 22) 220-591
E-mail: galina.balanov@bnm.md
The policy of the National Bank of Moldova in the internal control and internal audit, as well as the organization and sphere of action of internal audit are defined by the Council of Administration of the NBM. The activity of Internal Audit Department is based on a regulatory and methodological framework harmonized with the standards of performance and good practice in the domain. Procedurally, the Department has its own Audit Manual approved by the Governor of the NBM. Strategic and annual plans are based on the assessment of activity risk, including risk assessment related to IT articles. For performance analysis, IAD uses a number of key performance indicators, both quantitative and specific qualitative.
Comptroller General of the NBM, Director of the IAD reports to the Council of administration of the NBM on audit results, conclusions and issued recommendations, the level of implementation of internal audit recommendations. Annually, Internal Audit Department provides to the Council of Administration for information purpose a complex analysis on activity, development and achievements of the Department during the year, including the support offered by the IAD to the improvement and development of the NBM activity processes.
An important direction of the Department, beside the qualitative performance of annual audit plans, in the period 2010-2011, is the implementation of new solutions in the area of internal control and internal audit that are in accordance with the standards and principles applicable in ESCB.
Annual Internal Audit Reports are published on the official website of the NBM ("Publications › NBM Publications › Internal Audit Reports").
The NBM has a well organized Internal Control System (ICS), structured and regulated. The functioning of the system is based on the responsibility of all personnel involved in the NBM activity, and is organized on several levels. The first level represents the permanent operational control (daily) performed at each NBM structural subdivision level, and includes:
i) set controls (automatically or manually)
ii) controls performed directly during the process by the executors,
iii) controls performed on a higher scale according to the existing procedures,
iv) additional controls carried out in certain directions that involve major risk (market, accounting, legal, etc..).
The methodology for developing, implementing and maintaining of Internal Control System within the NBM, of adequate approach of identification and risk activity assessment is contained in an internal normative act, approved by the Council of Administration of the National Bank.
The Code of Conduct of the NBM Employee is approved and applied within the NBM since June 2008.
The respective rule regulates the general rules of moral and professional conduct, and has the aim of strengthening on a continuous basis of the quality in the process of exercising the work responsibility of the NBM employee, favouring the maintenance of the NBM image via professionalism, moral integrity, honesty and impartiality, both on internal plan- the NBM and in public relations.
Anti-fraud policy of the NBM is established and implemented within the NBM of February 2010.
The primary goal of policy is to develop corporate culture and creating an environment that would inhibit fraud. In accordance with the things established, the Council of Administration of the NBM promotes a zero tolerance policy in relation to fraud and mobilize all staff of the Bank to act at all times, honestly, with integrity and dignity, to protect all resources entrusted to them, do not abuse of their position. Under the policy there are examples of fraud and corruption risks, and elements of fraud and corruption prevention.