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His Majesty the King Mohammed Vi May God Assist Him

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His Majesty the King Mohammed Vi May God Assist Him HIS MAJESTY THE KING MOHAMMED VI MAY GOD ASSIST HIM Annual report of the the Audit Court 2018 Highlights Majesty, I have the distinct honor to submit to Your Majesty, in accordance with the provisions of Article 148 of the Constitution and Article 100 of Law No 62.99 forming the Code of Financial Courts, the annual report of the Audit Court for the year 2018. This report contains a detailed overview of the activities of the Audit Court and the Regional Audit Courts as well as summary notes of all the audit missions carried out by the various components of the financial courts. It consists of two volumes; the first concerns the activities of the Audit Court, while the second, consisting of 11 books, deals with the work of the Regional Audit Courts. Thus, this report presents the results of the execution of the missions programmed by the Audit Court and the Regional Audit Courts during the year 2018, which covered the various powers vested in the financial courts. This applies to both jurisdictional powers to ensure compliance with the rules in force and to sanction any failure to comply, where applicable, and non-jurisdictional powers, through which the audits carried out focus on the efficiency, effectiveness and economy of financial operations conducted by public bodies, as well as on the achievement of the expected goals of public programs and policies. Moreover, this year's programming was characterized, in addition to respecting the principle of balance between the different powers conferred on the financial courts, by the increase in the number of audit missions carried out, which reached 274, compared with 160 in the two previous years, as well as by the diversity of the scope of action of the financial courts, thus covering most of the vital public sectors. At the same time, there has been a rise in the number of cross-cutting public policy and program assessment missions, including the mission related to the sustainable development goals. Also, during 2018, the Court was able to maintain the same pace of carrying out partnership missions with the Regional Audit Courts with a view to reinforcing it. In this respect, the Regional Audit Courts conduct audit missions at the level of public bodies of a Annual report of the Audit Court - 2018 5 - Highlights - regional nature falling within the jurisdiction of the Audit Court. This annual report contains summary notes of 11 audit missions carried out in this regard. As regards the assessment of the work of the financial courts, it should be noted that the Audi Court carried out 50 audit missions pertaining to the management of public bodies and the assessment of public programs. Similarly, the Court's chambers delivered 181 judgments on the audit and judgment of accounts, as well as 15 judgments on budgetary and financial discipline. As for the main achievements of the Regional Audit Courts, they can be summarized in the performance of 224 audit missions as part of the management audit at the level of certain local authorities and local public institutions, as well as at the level of certain delegated management companies. On top of this, 1,963 final judgments were issued relating to the audit and judgment of accounts, as well as 53 judgments dealing with budgetary and financial discipline. On the other hand, the Public Prosecutor's Office in the financial courts referred 114 involved individuals to these courts in terms of budgetary and financial discipline. Similarly, the King's Attorney General at the Audit Court referred eight (8) cases to the President of the Public Prosecutor's Office concerning facts that may be used for applying criminal sanctions. Furthermore, the financial courts continued the process of receiving mandatory declarations of assets. Thus, in 2018, they were able to receive 9,387 declarations, including 8,461 at the level of the Regional Audit Courts; this reduced the total number of declarations received since 2010 to a total of 231,413 declarations. Also, and following the example of the Audit Court 's annual report for the years 2016 and 2017, this report includes a summary of the report of the Court's mission on the execution of the State budget for the year 2017, drawn up on the basis of preliminary information provided by the Ministry of Finance. It should be noted that the Court carries out this mission annually on a regular basis. Thus, the report 6 Annual report of the Audit Court - 2018 - Highlights - on the State budget for the year 2018 will be published in the coming weeks. In this context, the implementation of the 2018 Finance Act recorded a budget deficit of MAD 41,353 million, compared to forecasts of MAD 33,274 million, a difference of MAD 8,079 million. This is mainly due to the growth in overall expenses (+MAD 2,777 million), and the decrease in ordinary income (-2,891 million dirhams), as well as the decrease in the net income from the special Treasury accounts (-MAD2,411 million). In relation to gross domestic product, the budget deficit rate was around 3.7%, recording a growth of around 0.2 percentage points compared to 2017, and as a result, a reversal in its trend, which in previous years was characterized by a downward trend, from 6.8% in 2012 to 3.5% in 2017. Moreover, State finance faces other difficulties, the most prominent of which is the failure to handle with the growth of Treasury debts, which at the end of 2018 reached a total of approximately MAD 722.6 billion, i.e. a growth rate of around 4.4% compared to 2017. In addition, the Treasury's outstanding debt more than doubled between 2009 and 2018, recording an average annual growth rate of around 8.6%. Thus, and to address these difficulties, it is necessary to establish good governance throughout all State functions, namely the planning, programming, executing, monitoring and assessing of the programs and operations carried out by public bodies. This present document highlights the most outstanding findings drawn from the audit missions, relating to the audit management and the evaluation of public projects, included in the Audit Court 's annual report for the year 2018. Annual report of the Audit Court - 2018 7 - Highlights - 8 Annual report of the Audit Court - 2018 - Highlights - Main findings drawn by the Audit Court in terms of audit management The Audit Court 's annual report for 2018 contains summary notes of 50 audit missions carried out by the various chambers of the Audit Court relating to audit management. In this context, this summary report will present the most outstanding findings raised pertaining to these missions. Sustainable development goals The Audit Court has issued a thematic report to assess Morocco's level of preparedness for the implementation of the sustainable development goals for the period 2015-2030 adopted by the United Nations General Assembly at its seventieth session held on 25 September 2015. By 2030, this program has put in place a global framework for work based on the implementation of 17 sustainable development goals (SDGs). Morocco was among the countries that joined this program and has committed to its implementation. A. General framework for the implementation of sustainable development goals Measures taken for the implementation of the Program A clear commitment to the implementation of the 2030 Program Morocco made a clear commitment in 2015 to implement the 2030 Program. It reiterated this commitment at the State highest level, as well as at the level of government, parliament and other institutions. In addition, Morocco has a constitutional and legislative framework adequate for the implementation of this Agenda. This is reflected in several frameworks, the most important of which are the Constitution, the organic law on the national charter for the environment and sustainable development, the assessment of the Millennium Development Goals (MDGs) program, as well as the adoption of sectoral policies that are part of a sustainable development approach. Lack of a communication plan or a mobilization strategy The 2030 program is based on a participatory approach involving several stakeholders from government, local authorities, the private sector and civil society. The challenge is to strengthen forms of synergy and foster Annual report of the Audit Court - 2018 9 - Highlights - multi-stakeholder partnerships that can create both inclusive and coherent growth in order to achieve efficient and effective implementation of this program. In this context, the Court noted the lack of a communication plan or a mobilization strategy describing how to involve all stakeholders and the Moroccan population in a broad dialogue on Program 2030. It also noted the absence of a national leadership and governance structure with clearly defined prerogatives to manage government action and coordinate a national approach with other levels of government and the population on the 2030 Program and the definition of national priorities. Low rate of convergence of ongoing strategies with the 2030 Program The government has designed several strategies and programs at the national as well as at the sectoral levels. Moreover, the actions taken to converge its strategies and programs with the 2030 Program, in accordance with national priorities and preferences, remain weak. This is the case, in particular, of the national sustainable development strategy (NSDS) and the sectoral strategies of the ministerial departments. Overview of the measures taken to implement health and education goals Significant measures taken by the Ministry of Health to implement health goals are not achieved The 2030 Program considers health as enabling everyone to live a good life in good health and promoting the well-being of all at all ages. It also recognizes that health and its determinants influence and are influenced by other objectives and targets that form an integral part of sustainable development.
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