An audit by the Court of Auditors concerning the financial situations of the National Agency for Energy Regulation (NAER) on December 31, 2017 shows the institution does not appropriately implement the accounting norms and the financial reporting legislation. Under the legal provisions, the audited authority was to organize and keep accounting records in accordance with the National Accounting Standards, but this applied the accounting and financial reporting norms typical of the budgetary system, IPN reports.
In the June 28 meeting of the Court of Auditors, it was noted that the property managed by the NAER last yearend came to about 23.5 million lei. The debts represented 10 million lei or about 43% of this sum. The Agency forms its budget for the next year based on regulatory payments set at a sufficient level for covering the costs needed to ensure its activity, in accordance with the law. Thus, the Agency’s 2017 budget provided for revenues of 30.8 million lei and an expenditure of 44.1 million lei, with a budget deficit of over 13 million lei.
The procurement process at the Agency was recognized by the external public audit as complex and compliant with the law.
The NAER works based on an annual activity program that represents a list of activities that are disintegrated and not connected with the approaches, directions, strategic and annual development objectives and measurable performance indicators. The audit team established that the annual activity program does not ensure the sustainable and continuous development of the audited area, while the non-setting of performance indicators does not allow reporting on the Agency’s activity in accordance with the legal requirements. This can have an impact on the perception of the performed activities and accomplishments in the energy sector.
The National Agency for Energy Regulation is an autonomous public authority that regulates and monitors the energy sector as a legal entity responsible to Parliament and independent form other authorities, public bodies or other public or private entities. The Agency implements the state regulatory policy in the energy sector, being led by a Board consisting of five directors who are appointed by the legislature on a contest basis for a six-year term.
