Traduction en Anglais

The first steps of the Regional Audit Courts

Cass de la CRC de Fès

MADANI Ahmiddouch
Professor at the Faculty of Law, Fez

the field of academic research, little work has focused on local finances and more
specifically on the problem of their a posteriori control, especially in Morocco since the
creation of regional courts of auditors has just been set up (2003)
Historically, the supreme audit institutions have been constantly gradually adjusting their
centralized structures to the point of orienting and adapting their supervision to the
requirements of decentralization, which makes the region the driving force behind all
economic and social development.
the example of the Moroccan experience in the field of higher control of local finances is
interesting despite its youth, since the process of decentralization inaugurated by Law No. 62-
99 forming the Code of Financial Jurisdictions implies, on the one hand, the establishment of
the CRCs and determines its competences; the powers and means of financing local
authorities, and the abolition of administrative and financial supervision of the free
administration of these authorities.
In this new context, the creation of regional courts of auditors in each region responds to the
need to establish a system for controlling local finances adapted to the new responsibilities
entrusted to local authorities. The new regional courts of auditors are entrusted with three
main missions by Law 62-99 which creates them:

- adjudicating the accounts of local authorities and local public establishments,

substituting themselves for the Court of Auditors or the administrative clearance, as
the case may be; These judgments may be appealed to the Court of Auditors.
- ensure the proper use of the funds of these authorities and establishments and, where
appropriate, audit the accounts of the bodies governed by private law to which they
provide financial assistance or of which they control the majority of the capital.
- Participate in the exercise of budgetary control designed to replace the budgetary
supervisory powers held by the prefects before decentralization.
 I. The French model of CRCs

Moreover, the French experience is even more original. Indeed, if the French Court of
Auditors has its distant origins in the Chambers of Accounts that existed under the old regime,
the study of which is rich in useful lessons, the Regional Chambers of Accounts "must not be
considered as more or less faithful copies of the old Chambers of Accounts; They are the
logical consequence of the broad decentralization movement initiated by the law of 2 March
1982. The importance of this reform lies in the following key elements:

- Full autonomy as advocated by local authorities for a long time cannot be exercised
without any control. The CRCs are responsible for partly replacing the budgetary
control of the former supervisory authority and for formalizing the a posteriori audit of
the accounts of these authorities, in accordance with the freedom of administration.

From now on, the acts of local authorities are subject to a double control: by the
administrative judge and by the auditor; Nevertheless, it is the latter control that constitutes an
important legal innovation.
- The strengthening and extension of the control over the accounts of the least and most
important local authorities, formerly carried out respectively by the Paymaster General and
the Court of Auditors.
- liaise with the Court of Budgetary and Financial Discipline by referring local
government officials, other than mayors and presidents of general councils who commit
offences in this area, to this court.
- Carry out management control at the regional level of your advertising insurance,
including the annual report of the Court of Auditors.
- On this basis, the fulfilment of these various functions requires that independence
and impartiality be guaranteed or that the CRCs be judged to be the basis of this concern.

However, since the law of 2 March 1982, numerous corrections have been made, the powers
of the regional audit chambers have been extended and the clarification of these changes in
many areas has enabled the CRCs to find their own style of intervention.
In December 1994, a codification of the texts concerning financial jurisdictions was adopted
in the form of a first law of 2 December 1994 on the legislative part of Books I and II of the
Code of Financial Jurisdictions.
This codification does not change the law in force until then. This law contains specific
provisions concerning New Caledonia and French Polynesia. However, Article 1 of the Code
annexed to it gives legislative force to it.
A second law of 21 December 2001, which made important changes, such as the end of the
absolute penalty of ineligibility, was well received. There are 25 CRCs, one room per region.
Their creation makes it possible to fill three essential gaps linked to the nature of the
management carried out by local authorities and the extent of the control carried out by the
Court of Auditors.
1. Budgetary control
It partially replaces the old supervisory authority while leaving it to the prefect, who has
become Commissioner of the Republic, to regulate the budget of local authorities and
their groupings. Trust becomes the principle, mistrust the exception. In this respect, prior
approval and the power of substitution are replaced by a review of legality by the
 Commissioner of the Republic or by any person having an interest in it. The Chamber
may intervene in four cases:

- Budget flies out of balance

- Budget not voted on time
- Administrative account adopted in imbalance
- Refusal to enter a mandatory expense in these four cases, the representative of the
State can only settle the budget after obtaining the opinion of the CRC.

Legally, the court does not pronounce a judgment, although the opinion is delivered in quasi-
judicial form. It is therefore not possible to appeal to the Court of Auditors as in the case of a
posteriori judgment of the accounts. However, this opinion may be challenged before the
administrative court in the following cases:
- If the Chamber declares itself incompetent.
- If it considers that there is no imbalance in the budget or that the accounts have not
been closed, deficit.
- If it states that an expense is not mandatory.
- If it considers the remedial measures voted by the deliberative assembly to be
sufficient.

2. Judicial audit of accounts

One of the originalities of French budgetary law lies in this control, which entrusts to the
CRC, in accordance with the same principles and rules governing the judicial functions of
the Court of Auditors, the judgment of the accounts of the public accountants of local
authorities and local public establishments under their jurisdiction and of the de facto
accountants of these same authorities and establishments.
This control covers a total of about 83000 accounts, i.e. an average per CRC of 300 to
4000 accounts of various types and sizes.
In addition, the 1982 law on decentralization stipulates that the CRCs are to adjudicate in
the first instance and that the Court of Auditors is to rule on appeal.
Thus, by the introduction of these new principles of appeals, the judgment of the accounts of
local authorities is now “endowed with a complete system at 3 levels: first instance, appeal
and cassation. This is a consequence of the independence granted to these bodies. All judicial
guarantees are thus given to them in accordance with a procedure parallel to that of the
courts.”
3. Management control
It is carried out on all the management of local authorities and on those of local public
establishments attached to the CRC, according to the same principles and rules governing
management control as carried out by the Court of Auditors.
This is an entirely new way of seeing, because until the creation of the CRCs, the Court of
Auditors never addressed a mayor or a president of a regional council.
It is decentralization that, by strengthening the position of the CRCs, has enabled them to
communicate directly with elected officials. From now on, the CRCs have the right to
remonstrate with them, but local elected representatives are obliged to learn what is being
reproached to their management.
Moreover, following the example of the French experience, several factors have pushed in
favor of the decentralization of the Court of Auditors in Morocco. This decentralization will
take the form of the establishment of CRCs, which will give their own power for the
development, improvement and dissemination of control techniques and practices within the
regional framework.

II. Installation of CRCs in Morocco

While inspired by the French model, this one can be found. therefore, well suited to the design
of the CRCs that will be installed in the 16 regions on the realization and development of
space at the rate of one courtyard per region
in accordance with the provisions of Article 98 of the Moroccan Constitution revised in J996,
the regional courts of auditors are responsible for auditing the accounts and management of
local authorities and their groupings. There are currently 9 CRCs, and their creation makes it
possible to carry out the following tasks within the limits of their competence:

- judging the accounts and auditing of local authorities, their groupings and public
establishments under the supervision of these authorities and groupings.
- to supervise the management of undertakings which are concessionaires or managers
of a local public service and of companies and undertakings in which local authorities,
public groups or public establishments under the supervision of these authorities and
groups have, separately or jointly, directly or indirectly, a majority shareholding in the
capital or a preponderant power of decision-making.
- to monitor the use of public funds received by undertakings, other than those
mentioned above, associations, or any other body benefiting from equity participation
or assistance of any kind from a local authority. a group or any other body subject to
the supervision of the Regional Court.
- Exercise a judicial function in matters of budgetary and financial discipline with
regard to any official. Any official or agent shall:

 local authorities and their groupings;

 public institutions under the supervision of these communities and groups;
 any company or undertaking in which local authorities or groups
own, separately or jointly, directly or indirectly, a majority shareholding in the capital or a
preponderant decision-making power.
The wali and the governor are subject to the jurisdiction of the regional court of auditors
when they act as authorizing officer of a local authority or a grouping shall contribute to
the control of acts relating to the implementation of the budgets of local authorities and
their groupings.
In this respect, the CRCs are competent. following the example of the French model, in
terms of the control of the various accounts and management attached to the region,
regardless of their size or nature.
III. The first steps of the CRC of Fez
Indeed, and despite the installation of 9 courts of auditors since the end of the first half of
2004, in accordance with the provisions of Decree No. 2-02-701 of 29 January 2003. It is
only the closing of the accounting year of the Kingdom's local authorities for the 2004
budget management and the production of the related management accounts that will
begin an announced investiture and will test the role of these courts and the institutional
fabric at the local level. Under the terms of Article 119 of Law No. 62-99 form a code of
financial jurisdictions, the Regional Court of Auditors of Fez is composed of 13
magistrates. And in accordance with decree number 2-02-701 of 29 January 2003, the
territorial jurisdiction of the CRC of Fez is made up of 2 regions:
1. The region of Fez-Boulmane which includes:
- Prefecture of Fez
- Province de Moulay Yaacoub
- Province of Sefrou
- Province of boulemane
2. The Meknes-Tafilalt region which includes:
- Prefecture of Meknes
- Province d’ El Hajeb
- Province of Ifrane
- Province of Errachidia
- Province of Khenifra

 The bodies subject to the control of the CRC of Fez are:

I. Local authorities
1. Fez - Boulmane Region
a. Fez-Boulmane Region (Regional Council)
b. Prefecture of Fez which includes:
 Prefectural Council of Fez
 Urban Commune of Fez 2 and six urban districts
 Commune of Mechouar Fez Jdid
 Three rural municipalities
c. Province of Moulay Yacoub which includes:
- Moulay Yacoub Provincial Council
- Urban Municipality Moulay Yacoub
- Ten rural municipalities
d. Province of Sefrou which includes:
- Provincial Council of Séfrou
- Urban Municipality of Inouzzer Kandar
- Urban Municipality of Séfrou
- Bhalil Urban Commune
- Urban Municipality of Ribat El Kheir
- Urban Municipality of Elmanzel
- 18 Rural Municipalities
 e. Meknes Region - Tafilalt
f. Meknes-Tafilalt Region, which includes the regional council

2. Meknes - Tafilalt Region

a. Meknes-Tafilalt Region, which includes the regional council
b. Prefecture of Meknes, which includes:
- Prefectural Council of Meknes •
- Urban Municipality of Meknes
- Urban commune of Ouisslane
- Urban Commune of Toulal
- Urban commune of Moulay Driss Zarhoune
- Urban municipality of Boufekrane
- 17 Rural Municipalities

c. - Elhajab Province, which includes:

- Prefectural Council of Elhajeb

- Urban Municipality of Elhajeb
-Urban Commune of Aguray
- Urban Municipality of Taoujtate
- Urban Municipality of Sbaayoune
-12 Rural Municipalities
d. Province of Infane, which includes:
- Prefectural Council of Ifrane
- Urban Municipality of Ifrane
- Urban Commune of Azrou
- Urban-rural municipality
e. Province of Errachidia which includes:
- Prefectural Council of Errachidia
- Urban Municipality of Errachidia –
- Urban municipality of Boudnib
- Urban municipality of Erfoud –
- Urban municipality of Jorf
- Urban Municipality of Rich
- Urban Commune of My Ali Shrif
- Urban Municipality of Goilmima
- 40 Rural Municipalities
f. Khenifra Province, which includes:
 - Prefectural Council of Khenifra
- Urban Commune of Khénifra
- Urban municipality Mrirt
- Urban municipality of Midelt
- 35 Rural Municipalities

II. Companies or enterprises in which local authorities or their groups have a stake in the
capital.
- Fez-Boulmane region which includes
+Moulay Yacoub's Company
+Bus Station Company

III. Public accountants subject to the control of the CRC of Fez

1. Fez-Boulmane region
a. The financial district of Fez which comprises:
- Communal recipe of Fez
- Perception of My Yacoub
- Maritime perception.
b. Financial district of Séfrou which includes:
-Communal recipe of Séfrou
-Perception of Sefrou
- Ribat EL KHeir Perception
c. Fiscal district of Boulmane which includes:
- Perception of Missour
- Perception of Outat EL Haj
- Perception Boulmane

2. Meknes-Tfilalt Region
a. Financial district of Meknes, which includes: -
- Communal recipe of Meknes
- Perception of Meknes
- Perception of Toulal
- Perception MY Driss Zarhoune
- Perception Boufakrane
b. Elhajab Financial District which includes:
- Perception of Elhajab
- Perception of Agouray
- Perception of Ain Taoujtate
c. Financial district of Ifrane which comprises: -
- Perception of lfrane
- Azrou's Perception
d. Errachidia financial district which includes:
- Perception of Errachidia Erfoud's
- Perception Perception Rich
- Perception of Goulmima
e. The financial district of Khenifra which includes:
- Khenifra communal recipe
 - Collection of Communal Revenue of Mrirt
- Collection of D'Elkbab's communal revenue
- Collection of the municipal revenue of Midlte

IV. Groups of local authorities

Inter-communal syndicates belonging to the Meknes-Tafilalt region and attached to the
province of Ifrane:

- Al Wahda Intercommunal Syndicate

- Atlas Intercommunal Syndicate
- Attanmia Intercommunal Syndicate
- Arz Intercommunal Syndicate
V. Public institutions under the supervision of local authorities

1. Fez-Boulmane region
+The Autonomous Water and Electricity Distribution Authority of Fez (RADEEF)
+The Autonomous Transport Authority of Fez (RATF)
2. Meknes-Tftlalt Region
+ The Autonomous Water and Electricity Distribution Authority of Meknes (RADEEM)
+The Autonomous Transport Authority of Meknes (RATUM)

VI. Companies that are concessionaires or managers of a public service

1. Fez-Boulmane region
+Garbage collection, which includes:
- G.M.S
- Y.N.O.X
+Garbage treatment
-EDGE. BORO
2. Meknes-Tafilalt region, which includes:
+Garbage collection:
-S.E.G.E.D.E.M.A
-Urban transport

It should be said in this regard that the scope of the control of the CRC of Fez is extended, but
the means that are made available are insufficient, which has evoked a weakness in the
efficiency of the control carried out by the court from its creation until today.
The success of the CRCs depends on the material resources that will be granted to the new
institutions, on the efficiency and independence of the men who will ensure the smooth
running of the CRCs, but also on the acceptance by all, elected officials and citizens, of the
role that the law sets for them, but it is essential to establish and install the 7 CRCs as soon as
possible so that the functions of the CRCs will have to be exercised at the level of each region
in order to have a a Moroccan experience of specific CRCs.
In the end, the CRC of Fez was not able to carry out its missions properly because of the lack
of human resources and the inadequacy of the material and financial means allocated to the
CRC of Fez, pointing out here that the management control concerned only 1/4 of the urban
municipalities. 1/4 of the rural municipalities, a regional council, a town hall, two provinces
and a trade union these indicators allow us to affirm that the regional courts of auditors in
general are currently unable to carry out their functions effectively.
It became clear that the path of the CRCs will not be a smooth ride, which requires the
consolidation of these young CRCs so that they can find their style of intervention and
contribute to the process of local democracy.