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Promulgated State Gazette No. 71/11.08.1995
Amended SG No. 16/l996
(1) This Act shall regulate the organization, powers and activity of the National Audit Office, which shall control the execution of the budget.
(2) The National Audit Office shall be independent of the executive power when accomplishing its activity.
(1) The National Audit Office shall examine:
1. The lawful and expedient execution of the state budget, the municipal budgets and the other budgets adopted by the National Assembly;
2. The use of the budget resources granted to persons engaged in business or non-business activity;
3. The current accounting of the budget revenues and expenditures, the cash performance reports, the drawing up and the submitting of the quarterly and annual accounting statements under item 1;
4. The performance of the extra-budget accounts;
5. The reports on the budget expenditure of the Bulgarian National Bank accompanied by the requisite justifying documents;
6. The relationship of the Bulgarian National Bank with the state budget;
7. The conditions for the arising and servicing of the state debt and the use of debt instruments in the management of the economy;
8. The revenues and expenditures of non-profit legal persons, and the funds set up with budget resources or guaranteed by the state;
9. The proceeds from the privatization by relevant funds, their allocation and expenditure.
(2) The National Audit Office shall also conduct other examinations, assigned to it by a law.
(3) Every budget-funded or budget-aided organization, including the security bodies and the special services, shall be subject to examinations by the National Audit Office. The examinations shall also encompass the management of the property entrusted to the budget organizations.
(4) The National Audit Office shall receive and keep an account for the annual accounting statements of the state-owned enterprises whereby they shall be deemed published. The National Audit Office shall be entitled to state its opinion on the statements and to provide the accounting balance sheets and P&L accounts to the interested traders.
The National Audit Office shall, upon request by the National Assembly, pass its judgment on budget bills, on the feasibility of government programmes funded with budget or state-guaranteed resources, as well as on legislative projects related to the state budget.
(1) The officials shall be obliged to render assistance to the bodies of the National Audit Office in the execution of their official duties, consisting in the provision of access to premises, giving of verbal a written explanations, as well as provision of documents and other data media:
(2) In the process of an examination by the National Audit Office, the officials of the controlled entities shall not refer to state, official or trade secrets.
(3) Upon refusal for assistance the National Audit Office shall inform the Prosecutor's office.
The National Audit Office shall be a budget-funded legal body with a seat in Sofia.
(1) The National Audit Office shall consist of 11 persons - a Chairman and 10 members, to be appointed and dismissed by the National Assembly.
(2) Only Bulgarian citizens with no other citizenship can qualify for membership in the National Audit Office.
(3) The National Audit Office shall be elected by the National Assembly for a term of 9 years. The Chairman may not be re-elected.
(4) Within one month of his election the Chairman shall make a proposal to the National Assembly for the election of the National Audit Office members. The same time interval shall apply to proposals whenever a Chamber of Accounts member has been dismissed.
(5) The National Audit Office shall set up regional territorial units which shall be managed by directors.
(6) The activity of the National Audit Office and its territorial units shall be accomplished by inspectors operating in departments and sectors.
1) Eligible for Chairman and members of the National Audit Office shall be persons who have not, over the past three years preceding the election, been members of the government or heads of central agencies; who have a higher economic or juridical education, a working experience in their speciality of at least 15 years for the Chairman and 10 years for the members, and who have not been sentenced to imprisonment for a premeditated crime of a general nature, except when the person has been rehabilitated.
(2) The Chairman and the members of the National Audit Office shall take an oath before the National Assembly.
The Chairman of the National Audit Office shall:
1. Manage and represent the National Audit Office and determine which member shall substitute for him during his absence;
2. Submit to the National Assembly reports on the results of the examinations carried out by the National Audit Office;
3. Submit to the National Assembly an annual report on the activity of the National Audit Office for the preceding year, which shall be published in the State Gazette after having been endorsed.
4. Determine the heads of the departments;
5. Appoint and dismiss the chief secretary of the National Audit Office;
6. Appoint and release the employees of the National Audit Office and of the territorial units;
7. Approve the chief financial inspector of the Bulgarian National bank.
(1) The powers of the Chairman of the National Audit Office shall be terminated by the National Assembly before the expiry of his mandate:
1. Upon his personal request;
2. Whenever he has been sentenced to imprisonment for a premeditated crime of a general nature;
3. Upon his inability to execute his duties which has continued more than six months.
(2) The members of the National Audit Office may be dismissed by the National Assembly before the expiry of their mandate, in addition to the grounds under para 1, upon a proposal of the Chairman of the National Audit Office.
(1) Membership in the National Audit Office shall not be admissible for persons who are related by direct descent among themselves or with the Chairman, or are siblings or spouses.
(2) The Chairman and the members of the National Audit Office shall not engage in any other paid activity, except of a scientific or a lecturing type.
(1) The post of chief secretary shall be available to persons with a higher economic or juridical education and a minimum of 10 years' working experience in their speciality.
(2) The chief secretary shall organise the implementation of the plan on the controlling activity of the National Audit Office and shall co-ordinate the tasks by departments and sectors.
The department heads shall only be selected among the members of the National Audit Office;
The post of chief of sector shall be open to persons with a higher economic or juridical education and a minimum of 5 years' working experience in their speciality.
(1) The post of territorial unit director shall be open to persons with a higher economic or juridical education and a minimum of 5 years' working experience in their speciality.
(2) The territorial unit director shall set up the examinations and report their results to the National Audit Office.
The post inspector at the National Audit Office shall be available to persons with a higher education and a minimum of 5 years' working experience in their speciality. He shall exercise controlling competencies.
(1) The restrictions under Article 10, para 2 shall be applied by the department heads and chiefs of sectors, the directors of territorial units and the inspectors.
(2) Persons in kinship with the examined persons or with members of the management of the examined entity, as well as persons who have spent the last 5 years in employment at the examined entity or have taken part in its management may not take part in examinations.
(1) The sittings of the National Audit Office shall be conducted by the Chairman.
(2) The National Audit Office shall sit when a minimum of 2/3 of its members are present. Decisions shall be taken by a majority of the members of the National Audit Office.
The Chairman of the National Audit Office shall select a rapporteur for the matter to be discussed, and the position of such rapporteur shall be submitted to the National Audit Office along with the findings acts and attachments thereto.
Written objections to the findings of the examination shall be submitted to the department heads or to the territorial unit director within one month of the notification.
(1) The National Audit Office shall produce an estimate of its annual budget account and submit it to the Ministry of Finance for incorporation into the estimated state budget.
(2) The Council of Ministers may not modify the estimated budget account of the National Audit Office; it may only express an opinion on it before the National Assembly.
(3) The National Assembly shall vote the budget account of the National Audit Office as a part of the state budget.
(1) The Chairman of the National Audit Office shall receive a basic monthly remuneration to the amount of 90% of that of the Chairman of the National Assembly.
(2) The members of the National Audit Office shall receive a basic monthly remuneration to the amount of 90% of that of the Chairman of the National Audit Office.
(3) The basic monthly remuneration of the chief secretary and the remaining employees shall be determined by the Chairman of the National Audit Office.
(4) The bodies of the National Audit Office shall have an obligatory accident insurance covered by its budget.
(1) The National Audit Office shall adopt an annual plan on its control activity which shall be accomplished through examinations.
(2) The Chairman of the National Audit Office may order the carrying out of extraordinary examinations.
(3) The National Audit Office shall be obliged to carry out up to three extraordinary examinations upon decision of the National Assembly.
(4) In the course of an examination the Chairman may attract persons who are not employees of the National Audit Office and who meet the conditions under Article 10 and Article 16, para 2.
(5) The examinations shall be assigned by an order of the Chairman of the National Audit Office.
(1) In execution of their official duties the bodies of the National Audit Office shall be entitled to free access to the entities subject to examination.
(2) When damages have been established, the bodies of the National Audit Office may request the imposing of freezes pursuant to the Code of Civil Procedure.
(1) The outcome of the control activity shall be reported in a findings act, supported by evidence.
(2) Persons under examination may provide explanations within 14 days of service of the act.
(3) The Chairman of the National Audit Office may extend the term under para 2 by 7 days.
(4) An argumented conclusion shall be drawn up on the grounds of the raised objections, and it shall be an inseparable part of the act.
(5) The findings act shall be submitted to the National Audit Office and sanctioned by a ruling.
(1) Objections to the findings act drawn up by the bodies of the territorial units shall be filed to the relevant director within 14 days of its service.
(2) The director's decision may be appealed before the Chairman of the National Audit Office within 14 days of its receipt.
(3) Objections to the findings act, drawn up by the bodies of the National Audit Office, shall be filed to the department head within 14 days of its service. His ruling may be appealed before the Chairman of the National Audit Office within 14 days of its receipt.
(4) The Chairman of the National Audit Office shall come forth with a ruling within 14 days, and it shall be final.
(1) When actions are undertaken which create a risk for damage to state property or for the unlawful expenditure of budget resources by the primary organizations disposing budget funds, the Chairman of the National Audit Office shall issue orders for their termination.
(2) When the actions under para 1 are carried out by the remaining budget-funds disposing organisations the orders for termination shall be issued by the Department Managers or the Territorial Unit Managers.
(3) Objections against the orders under paras 1 and 2 may be made to the issuing body having within 14 days of their service.
(4) Orders for termination may be appealed before the Chairman of the National Audit Office through the issuing body having within 14 days.
(5) An objection shall not arrest the execution of the order.
(6) The National Audit Office shall come forth with a ruling on the objection within 14 days. The ruling shall be conclusive.
(1) The Chairman of the National Audit Office shall forward to the Minister of Finance and to the primary organisations disposing budget funds and extra-budgetary funds a report on the results of the examinations, accompanied by proposals for eliminating the established violations, as well as the causes and conditions leading to their committing.
(2) The persons under para 1 shall be obliged to take steps and to inform the National Audit Office within 1 month.
(3) Upon non-execution of the obligations under para 2, the Chairman of the National Audit Office shall submit within 14 days a report to the Council of Ministers and the National Assembly with proposals on the adoption of a final ruling.
No information shall be given on the conducted examinations before they are finalized. The bodies of the National Audit Office shall be obliged to keep the state, official and trade secrets of the examined entities.
The National Audit Office and its territorial units shall certify the periodic and annual reports on the cash performance of the budget and the extra-budget accounts of the budget disposing organisations, as well as their annual accounting statements. Article 29 shall not be applied in 1996 (SG No. 16/1996).
The National Audit Office shall submit to the National Assembly reports on the execution of the state budget and the budget expenditure of the Bulgarian National Bank for the preceding year, not later than one year after the close of the budget year.
(1) Upon the presence of data for damages inflicted in the course of the execution of the budget the findings acts shall be forwarded to the financial control bodies for seeking financial liability under the procedure of the Financial Control Act.
(2) The financial control bodies shall be obliged, within 14 days of receiving the papers, to launch an examination, and after it has been completed, to notify the National Audit Office.
(3) When there are data available on a committed crime, the findings acts shall be dispatched to the Prosecutor's Office.
(1) Upon non-execution of the orders for termination under Article 26, paras 1 and 2, the guilty persons shall be penalized by a fine to the amount of 3 to 6 minimum monthly salaries.
(2) A repeat offense shall be penalized by a double fine.
For offenses under Article 4 para 1 the guilty persons shall be penalized by a fine to the amount of 1 to 3 minimum monthly salaries.
(1) The acts on established offenses shall be drawn up by the inspectors, and the penalty enactments shall be issued by the Chairman of the National Audit Office.
(2) The drawing up of the acts, the issuing, appealing and execution of the penalty enactments shall be performed under the procedure of the Administrative Offenses and Penalties Act.
ADDITIONAL PROVISION
§1. For the purposes of this Act:
1. The "Bodies of the National Audit Office" shall be the Chairman, members, heads of sectors, the territorial unit directors, and the inspectors.
2. A "repeat" offense shall be such, as has been committed within one year of the enforcement of the penalty enactment, whereby the guilty person has been penalized for an identical offense.
TRANSITIONAL AND CONCLUDING PROVISIONS
§2. The National Assembly shall appoint a Chairman of the National Audit Office within two months following the date of entry of this Act.
§3. The Council of Ministers, the Sofia Municipality and the municipalities ranking as provincial centers shall, within one month following the date of entry of this Act, ensure appropriate premises for the activity of the National Audit Office.
§4. The National Audit Office shall adopt regulations on the enforcement of the Act within one month after the election of its members.
§5. Until the end of 1995, the National Audit Office shall be funded by the National Assembly through funds provided from the state budget.
§6. The implementation of this Act is assigned to the Chairman of the National Audit Office.
This Act was duly adopted by the 37th National Assembly on July 27th, 1995, and the State Seal was affixed hereto.
Chairman of the National Assembly: Blagovest Sendov
Promulgated State Gazette No. 28/02.04.1996
The National Audit Office shall be a supreme state authority for independent control over the implementation of the budgets passed by the National Assembly and by the municipal councils.
The National Audit Office shall be independent of the executive branch of government in the performance of its activities and shall report to the National Assembly alone.
In the accomplishment of its auditorial functions the National Audit Office shall observe the Constitution and the law.
The auditorial performance of the National Audit Office shall be of analytical and appraisive nature as regards the implementation of audited budgets and the proper management of budgetary funds for the accomplishment of such ends and purposes as shall be stipulated in the respective budgets and programs adopted by the National Assembly or the executive branch of government.
(1) Each budget-funded or budget-subsidized organization, including the national security structures and the secret services, shall be subject to auditorial control by the National Audit Office.
(2) Subject to auditorial control by the National Audit Office shall also be the extra- budgetary accounts; the relationship of the Bulgarian National Bank with the State Budget; the budgetary expenditures of the Bulgarian National Bank; the state debt; the revenues and expenditures of non-profit legal persons and the funds set up with State Budget resources or guaranteed by the state; the proceeds from the privatization by relevant funds plus the propriety of their allocation and disbursement, as well as the management of the assets entrusted to the budget-funded organizations.
The National Audit Office shall inspect and assess the managerial policies and decisions of top officials in implementation of the budget in view of their lawfulness and expedience.
The National Audit Office shall analyze the effectiveness of enforcement of applicable regulations related to the implementation of the budget and, where necessary, shall provide the relevant authorities with recommendations for their elaboration.
(1) The control functions of the National Audit Office shall be based on the principle of public nature of all auditorial findings.
(2) The National Audit Office shall keep the public informed about the outcome of conducted audits by way of publishing reports, accounts and announcements.
(3) The President of the National Audit Office or a duly authorized proxy shall regularly impart via the media such findings of finalized audits which are of major significance for the State Budget and the public interest and which do not represent state, official, trade or other law-protected secrets.
(1) The National Audit Office shall be a budget-funded legal body with a seat in Sofia.
(2) The National Audit Office shall consist of a President and 10 Members, to be appointed and dismissed by the National Assembly.
The President of the National Audit Office shall:
1. Govern and represent the National Audit Office and designate an acting proxy among the Members to substitute for him during absences;
2. Determine the Heads of the Departments and their deputies;
3. Submit reports to the National Assembly on the findings of audits conducted by the National Audit Office, and the Annual Report on its overall performance;
4. Approve the Auditor-General of the Bulgarian National Bank;
5. Rule on appeals against decisions taken by the Heads of Departments or by the Directors of the Regional Territorial Offices on objections to such Findings Acts which have been filed with them;
6. Issue suspension orders under Art. 56 and Art. 57, para 1;
7. Approve forms of documents for the effecting of the auditorial business, the guidelines for their completion and application and other documentation related to the activities of the National Audit Office;
8. Order the performance of extra-schedule audits;
9. Appoint and dismiss the Secretary General and all remaining employees of the National Audit Office and its Regional Territorial Offices;
10. Determine the basic monthly remuneration of the persons described in item 1.
The National Audit Office shall:
1. Adopt by-laws, ordinances, instructions and methodical guidelines in connection with the auditorial activities;
2. Adopt an Annual Plan on its auditorial activities and ensure its accomplishment;
3. Hear objections pursuant to Art. 26, para 6 of the National Audit Office Act and pass rulings thereon;
4. Review auditorial Findings Acts in accordance with Art. 52, para 4, Art. 60 and Art. 62 and render relevant rulings thereon;
5. Adopt the organization structure, the staff and payroll, the inward compensation regulations and other documents related to the operation of the National Audit Office;
6. Provide positions on various projects pursuant to Art. 3 of the National Audit Office Act;
7. Adopt an estimate of its annual budget account and the report on the implementation thereof;
8. Approve the Annual Report on the performance of the National Audit Office and the reports under Art. 55, para 2 and Art. 64, para 1 , item 1.
(1) The National Audit Office shall sit when a minimum of 2/3 of its Members are present.
(2) The sittings shall be chaired by the President of the National Audit Office.
(3) In the absence of the President the meetings shall be chaired by such Member of the National Audit Office who has been designated by the President to sit in for him.
(1) Decisions on disputed issues shall be reached by a simple majority of the National Audit Office Members and by an open vote.
(2) Other persons may be invited to attend meetings on issues of immediate concern to them.
(3) Decisions shall be only taken in closed meetings in the presence of the President and the Members of the National Audit Office alone.
The National Audit Office shall set up Regional Territorial Offices in accordance with the administrative and territorial division of this country.
The auditorial activities of the National Audit Office shall be accomplished by Inspectors operating in Departments and Sectors.
(1) Departments shall be headed by Members of the National Audit Office.
(2) A Head of Department shall organize, control and be responsible for the entire performance of the Department.
(3) Departments shall comprise of Sectors set up on functional criteria.
(1) Regional territorial units shall be managed by Directors.
(2) A Regional Territorial Office Director shall administer, supervise and be in charge of the overall performance of the unit.
(3) A Regional Territorial Office shall comprise of Sectors, set up on territorial criteria.
(4) Each Regional Territorial Office shall have its seat in the same city which is the center of the respective administrative region.
(5) The seats of the Regional Territorial Offices and the territorial range of their Sectors shall be the ones described in the Annex hereto.
All Department Sectors and all Sectors of the Regional Territorial Offices shall be headed by Inspectors.
The Secretary General shall organize the elaboration and the implementation of the plans on the overall auditorial activities of the National Audit Office and shall coordinate the operations of individual Departments and Regional Territorial Offices.
The administrative activities of the National Audit Office shall be organized and managed by an Administrative Director.
(1) The budgetary account under Art. 20 of the National Audit Office Act shall encompass all funds needed for the sustenance of the National Audit Office, its Departments, its Regional Territorial Offices and the administrative activities of the National Audit Office.
(2) The Annual Report on the application of the budget account funds shall be approved by the National Audit Office and shall be then delivered to the Ministry of Finance to be incorporated in the general report on the implementation of State Budget Act.
(1) The disburser of the budgetary funds of the National Audit Office shall be its President.
(2) The control over the application of the budget account funds of the National Audit Office shall be performed in such order as shall be prescribed by its President.
The National Audit Office shall exercise auditorial control over the implementation of the State Budget, the Social Security Fund budget, the budgets of the municipalities and the extra-budgetary accounts.
(1) The control over the implementation of the income part of the budgets and the extra-budgetary accounts shall encompass the lawful and timely collection, receipt and accounting of the stipulated revenues by the relevant officials.
(2) The control over the expenditure part of the budgets and budgetary and extra-budgetary accounts shall encompass the lawful and expedient disbursement of resources by the relevant officials.
The control for lawfulness shall encompass the strict application of the various legislative acts regulating the implementation of the budgets and the budgetary and extra-budgetary accounts by the relevant officials.
The control for expedience shall encompass the assessment for most cost-effective, most productive and the most efficient application and management of budgetary resources for the accomplishment of such aims and purposes as are stipulated by the annual State Budget Acts, the budget of the Social Security Fund and the budgets of municipalities for each respective year, as well as of all programs adopted by the National Assembly or the executive branch of government.
The control over the use of budget resources granted to persons engaged in business or non-business activities shall cover:
1. The legislative basis and the terms for the allocation and use of such budget resources;
2. The purposeful use of allocated budget resources and their appropriate accounting.
(1) The National Audit Office shall control the current accounting of budgetary revenues and expenditures, the reports on the cash performance of the budgetary and the extra-budgetary accounts, the completion and the presentation of quarterly and annual accounting statements of all entities subject to control under Art. 2, para 1, item 1 of the National Audit Office Act.
(2) The check on current accounting of budgetary revenues and expenditures shall probe the strict adherence to all requirements for veracious recording of revenues and expenditures and their accurate and timely accounting in line with applicable accounting legislation.
The auditorial control over the cash performance of the extra-budgetary accounts shall include checks on:
1. The legislative basis for the opening and keeping of the accounts;
2. The legality of the sources and the operation of funds therein;
3. The lawful allocation and the expedient disbursement of funds;
4. The proper accounting of funds in such accounts.
The National Audit Office shall control the lawfulness of interest accrual to the budgetary and extra-budgetary accounts of all controlled entities.
The National Audit Office shall examine the relationship of the Bulgarian National Bank with the State Budget by inspecting:
1. The advance payment by the Bulgarian National Bank of monthly installments into the State Budget on the account of the realized excess of its receipts over its disbursements, and the timely redemption of the remainder of the annual surplus after the close of each year.
2. The terms for extension by the Bulgarian National Bank of short-term credits to cover cash deficiencies of the State Budget, the lawfulness of terms and time limits for their repayment and their maximum amount, determined by the provisions of Art. 46 of the Bulgarian National Bank Act.
With due consideration for the autonomy of the Bulgarian National Bank, the National Audit Office shall pass its judgment on such decisions of its Board of Governors which may have an impact on the amount of the annual surplus to be deposited in the State Budget.
The National Audit Office shall examine the reports on the budgetary expenditures of the Bulgarian National Bank in one with the requisite justifying documents prescribed under Art. 51, para 3 of the Bulgarian National Bank Act.
The National Audit Office shall examine the conditions for the arising and servicing of the state debt and the use of debt instruments. To that end it shall control:
1. the conditions for the emergence of the country's foreign-debt obligations and the total amount of the interest due and the repayment by years;
2. the budget expenses for servicing the domestic debt and render its position on the tendencies towards changes of its amount;
3. the lawfulness of all operations for the financing of the budget deficit and appraise the use of the state securities and other debt instruments.
The control over the revenues and expenditures of non-profit legal persons and the funds set up with budget resources or guaranteed by the state shall encompass:
1. The purposeful use of budget funds granted to non-profit legal persons and the revenues and expenditures related to their activity;
2. The type and amount of the securities and the conditions for their use;
3. The accounting of allocated budget funds and of the revenues and expenditures of such legal persons or funds.
The National Audit Office shall control the privatization transactions as regards the amount and the timely deposit of resources in the funds set up under the Transformation and Privatization of State and Municipal Enterprises Act, their allocation and expedient disbursement.
The National Audit Office shall exercise control over the management of the property entrusted to the budgetary organizations by way of conducting checks on:
1. The grounds and the specific normative acts regulating the providing of such property;
2. The use of the property for the purposes it has been entrusted for;
3. The legal grounds for providing such property to third persons, the terms of such contracts and the implementation thereof;
4. The lawfulness of any disposal of the provided property and the consequences thereof;
5. The strict accounting of the property and the transactions therewith performed.
The National Audit Office shall exercise control over the activities of the National Social Security Institute by examining:
1. The budgetary resources expended for the maintenance of the Institute;
2. The funds spent for the acquisition of real estate required for the Institute's operation;
3. The transactions for acquiring state securities and other operations with the Social Security Fund's resources.
The objects of the control of the Departments and Regional Territorial Offices shall be designated by the Annual Plan on the auditorial operations of the National Audit Office.
The National Audit Office shall adopt an Annual Plan on its auditorial operations by Departments and Regional Territorial Offices.
(1) The control activities of the National Audit Office shall be accomplished through audits.
(2) An audit is an aggregate of all actions aimed at finding, collecting and analyzing the facts and circumstances needed to verify the lawful and expedient management of the budgetary and extra-budgetary accounts, and the management of the assets entrusted by the state to the budget-subsidized entities.
(1) All audits shall be assigned by an order of the President of the National Audit Office in writing.
(2) Each order for an audit assignment shall specify:
1. The type of the audit;
2. The name and the address of the entity to be audited;
3. The name, surname and family name of the person in charge of the audit, the names of the Inspectors and of any other participants therein.
4. The audit period and the term for its close.
(3) The Chief of an audit shall organize and administer the work of the Inspectors, shall participate in the audit and shall bear the responsibility for its timely and seemly finalization.
(1) All audits shall be conducted by the inspectors.
(2) In some individual cases audits may be performed by other bodies of the National Audit Office as well.
(3) The President of the National Audit Office shall have the power to set up audits teams involving inspectors from the various Departments and the Regional Territorial Offices plus outside experts, who must meet the requirements under Art. 10, para 1 of the National Audit Office Act and under Art. 44 of this Regulation.
Persons in any kind of lineal consanguinity relationship, or in a collateral kinship up to the fourth degree, or in an in-law kinship by marriage up to the second degree with any of the audited persons or with members of the executive management of an audited entity, as well as such persons who in the last five years have been either employed or involved in the management of an audited entity, may not participate in the audits.
All persons under audit shall have the right to furnish explanations in writing, objections to and evidence against the findings reached in the course of an audit either to the relevant Chief of Audit, or to the Director of the respective Regional Office within one month after a notice thereof shall have been given to them by the Chief of such audit.
In execution of their official duties the bodies of the National Audit Office shall be entitled to:
1. Free access to the entities under audit;
2. Request verbal and written explanations from audited officials;
3. Request the presentation of documentation and other data media related to the auditorial business.
(1) All authorities and administrative staff of the National Audit Office may not divulge such facts and circumstances which shall have become known to them in the course or because of the execution of their official duties and which shall represent state, official and trade secrets.
(2) No information on audits conducted by the National Audit Office may be given prior to their finalization, including the realization of the consequences deriving therefrom.
(3) Information on completed audits shall be imparted by the President of the National Audit Office or by his duly authorized proxies.
In the performance of their auditorial control function the bodies of the National Audit Office shall cooperate with the structures of the State Financial Control and the Local Financial Control of the entities subject to audits, as well as with the law enforcement authorities.
(1) The findings of each audit shall be reported in a Findings Act.
(2) Where an audit shall establish offenses, the specific legal and factual situation shall be stated in the Findings Act: the regulations violated, the guilty officials and the damages and losses inflicted. The Act shall be substantiated by references, written statements of findings, written explanations and information, original documentation, certified copies of documents, written conclusions of experts and other enclosures according to the nature of the findings.
(3) The Act shall be completed in such a form as is approved by the President of the National Audit Office.
(4) Such Act shall be signed by the persons who conducted the audit.
(1) The Findings Act shall be served on the audited persons against receipt.
(2) The persons under para 1 may present to the Chief of the Audit their written explanations on the subject of such Act within 14 days of the service thereof.
(3) Upon the request of the audited persons the President of the National Audit Office shall have the power to extend the term under para 2 by 7 days.
(1) After the expiration of the term under Art. 50, the Chief of the Audit shall draw up a substantiated Conclusion Report on the matter of the raised objections. Such Conclusion Report shall be an inseparable part of the Findings Act.
(2) The Conclusion Report under para 1 shall be served on the audited persons against receipt.
(3) The persons under para 2 may file a objections against the Findings Act within 14 days of the service thereof in the following order:
1. Where the Act has been drawn up by an auditing body of a Department, the objections shall be filed to the Head of such Department.
2. Where the Act has been drawn up by an auditing body of a Regional Territorial Office, the objections shall be filed to the Director of such Regional Office.
(1) The Head of the Department or the Director of the Regional Territorial Office shall hand down a Ruling.
(2) A Ruling under para 1 shall either uphold or reject the objections in full or in part.
(3) Such Ruling may be appealed before the President of the National Audit Office via the authority that issued it within 14 days of its service.
(4) The President of the National Audit Office shall rule within 14 days after the receipt of the appeal. Such Ruling shall be final. By way of his Ruling the President shall uphold or reject the appealed Ruling in full or in part.
(5) The Findings Act shall be submitted to the National Audit Office in one with the Ruling of the President and shall be sanctioned by a Resolution.
(6) All Rulings under the preceding paragraphs shall be completed in writing and definitely corroborated with facts and reasons.
(1) A Findings Act shall be executed in minimum two copies, one of which shall be for the audited person.
(2) Where an audit shall find evidence that damages have been inflicted or a crime committed in connection with the application of the budget, a copy of the Findings Act shall be sent to the State Financial Control authorities or to the Prosecutor's Office.
Following the confirmation by the National Audit Office of the offenses ascertained in the course of the audits, the President of the National Audit Office shall send to the Minister of Finance and the relevant first-degree disburser of budgetary and extra-budgetary funds a Report setting forth recommendations for the redressment of committed offenses and of the reasons and circumstances which led to their commission.
(1) The persons under Art. 54 shall be obliged to undertake within a month after the receipt of such Report appropriate actions for the redressment of the violations committed in connection with the execution of the budget as well as of the reasons and circumstances for their perpetration, and the National Audit Office shall be given a notice thereof.
(2) Upon non-execution of the obligations under para 1, the President of the National Audit Office shall file with the Council of Ministers and the National Assembly a Report setting forth recommendations for the ado tion of a final resolution.
Where an audit ascertains actions which create a risk for damage of state property or for the unlawful expenditure of budget resources, orders shall be issued for their termination.
Such order shall be issued:
1. By the President of the National Audit Office - where such actions are performed by first-degree disbursers of budgetary funds;
2. By the relevant Head of Department or Director of a Regional Territorial Office - where such actions are performed by any other disburser of budgetary funds.
(1) An order for the termination of a disbursement of budget funds shall be issued in minimum four copies and shall be sent to the Minister of Finance, to the Bulgarian National Bank (the servicing commercial bank respectively) and to the disburser of budgetary funds.
(2) An order for the termination of activities which threaten to damage state property shall be issued in minimum three copies and shall be sent to the Minister of Finance and to the official against whom the order is issued.
An order for termination may be appealed pursuant to the procedure prescribed under Art. 26 of the National Audit Office Act.
(1) Where an audit has established damages caused in implementation of the budget, the Findings Act shall be submitted to the National Audit Office by the relevant Head of Department or Director of a Regional Territorial Department, regardless of whether it has been appealed.
(2) Upon the resolution of the National Audit Office the Act under para 1 shall be forwarded to the State Financial Control bodies for seeking financial liability.
(1) The State Financial Control bodies shall be obliged, within 14 days of receiving the papers, to launch an examination, and the National Audit Office shall be given a notice thereof.
(2) Following the close of such examination, the State Financial Control bodies shall render to the National Audit Office a copy of all auditorial documents completed.
(3) The State Financial Control bodies shall give notice to the National Audit Office of all Court decisions which have entered into force in connection with the drawn up Defalcation Act.
(1) Where an audit ascertains the presence of evidence for the commission of a crime, the Findings Act shall be submitted to the National Audit Office under the procedure of Art. 60, para 1 , regardless of whether it has been appealed.
(2) Upon the resolution of the National Audit Office, the Act under para 1 shall be forwarded to the Prosecutor's Office for initiating penal proceedings against the guilty offenders.
All Departments and Regional Territorial Offices shall present to the National Audit Office regular reports on the results of the audits they have conducted plus Annual Reports on their overall auditorial performance.
(1) The President of the National Audit Office shall submit to the National Assembly:
1. Reports on the findings of audits conducted by the National Audit Office;
2. An Annual Report on the overall performance of the National Audit Office for each previous year. Such report, after its sanctioning, shall be promulgated in the State Gazette.
(2) The reports under para 1 shall be filed with the National Assembly within three months after the finalization of the respective audit or after the close of each fiscal year.
(1) The National Audit Office shall present to the National Assembly reports on the reports on implementation of the State Budget, the budget of the Social Security Fund and the budgetary expenditures of the Bulgarian National Bank for each previous year.
(2) The reports under para 1 shall be presented:
1. On the report for implementation of the State Budget - not later than one year following the close of each fiscal year;
2. On the report for the implementation of the Social Security Fund budget - upon the adoption of the Annual Report for the implementation of the budget of the Fund, presented by the National Social Security Institute.
3. On the report on the budgetary expenditures of the Bulgarian National Bank - upon the sanctioning of the Annual Report of the Bank, presented by its Manager.
ADDITIONAL PROVISION
§1. For the purposes of this Regulation:
1. Budget income shall be all anticipated and proceeded cash resources into a relevant budget based on the applicable normative regulations.
2. Budget expenditures shall be all money resources disbursed from a relevant budget for social and business activities and for other social needs in compliance with the applicable statutory regulations.
3. A budget account shall be a financial and legal form for regulating those expenditures, which a relevant budget-subsidized organization may run up in the course of each year.
4. Disbursers of budgetary and extra-budgetary funds shall be those officials who are empowered to dispose of such funds.
5. First-degree disbursers of budgetary and extra-budgetary funds shall be the Ministers, the Heads of central agencies, the Regional Governors, the Mayors of the municipalities, the Manager of the National Social Security Institute and the Heads of other budget organizations which represent separate sections or items of the State Budget.
6. An extra-budget account shall be a financial and legal form for accumulating and disbursing cash resources which are not accounted for in the relevant budget. Extra- budgetary accounts shall also be the fund and financial accounts.
CONCLUDING PROVISION
§2. This Regulation has been adopted pursuant to § 4 of the Transitional and Concluding Provisions of the National Audit Office Act (SG, No. 71/1995).
Chairman: G. Nikolov
