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Friday, 31 October 2014 10:18

Published Annual Report on performed audits and activities for October 2013 – October 2014

Podgorica, 31st October 2014 – In accordance with Article 18 and 19 of the Law on State audit institution, the State audit institution of Montenegro has submitted to the Parliament and Government of Montenegro an Annual Report on performed audits and activities for October 2013 – October 2014.

The audit on Final Budget Account of Montenegro for 2013 has included mathematical accuracy control, budget revenues and expenditures control, capital budget and financing transactions control on the basis of individual controls performed in 22 audited entities. The State audit institution has given a total of 16 recommendations, aiming at improving budget users’ operations and strengthening fiscal discipline.

Apart from the Audit on Final Budget Account of Montenegro for 2013, the Annual Report on performed audits and activities for October 2013 – October 2014 includes 15 individual audits which cover the most important findings, recommendations and measures for eliminating irregularities of the audit entities' operations within the reporting period. With regards to individual audits, the State audit institution has given 231 audit recommendations, 39 audit opinions (15 unqualified, 20 qualified and 4 adverse audit opinions) and 19 conclusions.

Apart from aforementioned audits, in the reporting period, the State audit institution has performed the audits of financial statements of political parties: Audit reports on annual financial statements of political parties for 2012, which were not included in the last Annual Report of the State audit institution (11 political parties; 26 audit recommendations; 4 unqualified, 11 qualified and 2 adverse audit opinions); Audit Reports on annual financial statements of political parties for 2013 (11 political parties; 46 audit recommendations; 6 unqualified, 6 qualified and 1 adverse audit opinion) and Compilation of the Audit on Reports on the Origin, Amount and Structure of the Funds Raised and Spent on Election Campaigns of Submitters of Election Lists for local election held on 16th November 2013 (Cetinje, Mojkovac and Petnjica), which resulted in 7 audit recommendations.

Until the end of 2014, the State audit institution will perform following audits: Red Cross of Montenegro (financial audit and regularity audit); Ministry of defence (compliance audit); Examination Center (financial audit and regularity audit); Annual financial statement of New Democratic Force for 2013 (FORCA), Democratic Alliance of Montenegro, Democratic Union of Albanians, Democratic Party, Democratic Center of Montenegro, Democratic Serb Party, Albania Alternative (financial audit and regularity audit); Reports on the Origin, Amount and Structure of the Funds Raised and Spent on Election Campaigns of Submitters of Election Lists for elections held on 26th January 2014 in Ulcinj, on 9th March 2014 in Berane and 25th May 2014 in twelve Montenegrin municipalities and 2 urban municipalities (financial audit); Institute for execution of criminal sanctions (follow up audit) and Municipality of Mojkovac (financial audit and regularity audit).

The State audit institution has been committed to implementation of EU recommendations, referring to compliance of legal regulations with applicable international standards of supreme audit institutions (ISSAI) and good EU practice. Therefore, the State audit institution has realized a recommendation of the European Commission, which refers to adoption of amendments to the Law on the State audit institution of Montenegro aiming at ensuring financial and functional independence of the Institution in compliance with requirements of the international standards of supreme audit institutions (ISSAI). In July 2014, the Parliament of Montenegro adopted amendments to the Law on the State audit institution of Montenegro, which were supported by European Commission's Directorate-General for Budget.

The State audit institution has continued to implement activities defined in the Strategic Development Plan of the State audit institution of Montenegro for 2012 - 2017. With aim to further develop the Institution and strengthen audit capacities, the State audit institution organized a set of trainings related to auditing of local self- government units, auditing of annual financial statements of political parties, performance auditing, audit of final state budget account as well as application of international standards of supreme audit institution (ISSAI) on its audit work. Cooperation and support from the EU has also been continued in this reporting period through implementation of EU project „Audit Quality Control in the State audit institution of Montenegro”.

Annual Report on performed audits and activities for October 2013 – October 2014 has been officially published at the web site of the State audit institution of Montenegro.

Annual Report on Performed Audits and Activities of the State Audit Institution of Montenegro for period October 2013 - October 2014