Public Financial Inspection Agency Lecture Notes

Comprehensive vocabulary flashcards covering the legal framework, functions, scope, and liability provisions of the Public Financial Inspection Agency (PFIA) based on the Public Financial Inspection Act.

Public Financial Inspection Agency ("Agency")

The specialized body defined by the Public Financial Inspection Act to protect public financial interests through inspections and detection of fraud.

Public Finance Act Article 101

Specifies that the Minister of Finance shall give instructions on the implementation of the state budget and the accounts for European Union funds.

Ex-post financial inspection

The conduct of financial inspections after the fact to ensure observance of statutory acts regulating budget, economic, or accounting activities.

Blocking quota

The specific level of state or municipal equity in a commercial company's capital that makes the company subject to public financial inspection under Article $4$.

AFCOS Directorate

The "Protection of the Financial Interests of the European Union" Directorate at the Ministry of Interior, which establishes alerts for irregularities affecting EU financial interests.

May 31

The annual deadline by which the Agency must present a report on the results of its activities to the Council of Ministers via the Minister of Finance.

Master in economics or law

The educational degree and professional qualification (with acquired legal capacity for law) required for financial inspectors at the Agency.

Principle of "necessity to know"

The principle guiding Agency authorities' access to classified information during the performance of their functions.

Sealing

A right of Agency authorities to terminate the access of liable persons to inspected safes or warehouses in the presence of an official from the organization.

Reasoned written conclusion

A document provided by the financial inspector within $14$ days after receiving written opinions on an inspection report from the manager or persons inspected.

Article 18(1) Proposal 5

A follow-up measure where the Director proposes to the Minister of Finance to discontinue subsidy transfers or freeze accounts of budget organisations until irregularities are eliminated.

Full property liability

Liability borne by a perpetrator for damages caused intentionally, resulting from a deficit, or caused outside the performance of functions.

Jointly held liable

The condition where several persons cause damage together, or where persons receive something in the absence of legal grounds as a result of a perpetrator's actions.

Presumption of good faith

The legal assumption that recipients of labor remuneration or compensation acted correctly unless proven otherwise, exempting them from returning funds.

Statute of limitation (Property liability)

The period of $5$ years as from the date damage was caused or discovered, with an absolute expiration after $10$ years regardless of suspension.

BGN $200$ to BGN $2,000$

The fine range for a violation of a statutory act regulating budget, financial, economic, and accounting activities when no other specific penalty is provided.

Administrative penalty (Refusal of access)

A fine ranging from BGN $200$ to BGN $1,000$ imposed for not providing financial inspectors access to business premises or documentation.

Cross-checks

Inspections conducted at legal entities and sole proprietorships outside the organization or entity being inspected, where necessary for the primary inspection.