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Committee on economy, finance and budget has considered Annual Report on performed audits and activities of the SAI for October 2014-October 2015

Podgorica, 25th November 2015 – The Parliamentary Committee on economy, finance and budget has held a session on deliberation of the Annual Report on performed audits and activities of the State audit institution for October 2014 – October 2015. President of Senate, PhD Milan Dabović and members of Senate, PhD Branislav Radulović and Nikola Kovačević have participated at this session.

Pursuant to the Law on Budget and Fiscal Responsibility, the State audit institution prepared a Report on Assessment of Implementation of Fiscal Responsibility Criteria for 2014, which is a part of this Annual Report of the SAI. The State Audit Institution has pointed out that during the drafting of this Report, it had problems in methodology during determination of four static and two dynamic indicators for assessment of fiscal responsibility criteria, and that it determined the indicators with the help of SIGMA experts.

The Annual Report on performed audits and activities of the State audit institution for October 2014 – October 2015 also consists of the excerpts from 20 audits showing the most important findings, recommendations, and measures for eliminating irregularities in business operations of subjects of the audits, included in the reporting period. The State audit institution gave a total of 468 recommendations and 67 opinions (23 unqualified, 29 qualified, and 15 adverse) in the individual audits. Apart from this, in this reporting period, the State audit institution gave 2 opinions after completion of performance audits.

The Committee positively has assessed the activities of the State Audit Institution relating to the increased number of audits of success in comparison to the previous year, strengthening of audit capacities for conducting audits, intensification of cooperation with the state authorities, international institutions, and civil sector, etc.

The session of the Committee was continued on Tuesday 24th November 2015, when the Committee considered the Proposal of the Law on Final State Budget Statement for 2014, with the Report of the State Audit Institution on Audit of the Proposal of the Law on Final State Budget Statement for 2014.

The audit on the Proposal of the Law on Final State Budget Statement for 2014 includes the verification of calculation accuracy, receipts and expenditures, capital budget and financing transactions. The audit has rendered 7 recommendations aimed at improving the operations of budget users and strengthening fiscal discipline.

The Parliamentary Committee unanimously has supported all findings and recommendations of the SAI, deriving from the audit of the Proposal of the Law on Final State Budget Statement for 2014 which refer to: overspending of the budget funds, reallocation and scope of public spending, cash deposits, budget expenditures and internal financial control system.

The Parliamentary Committee has made a decision to propose to the Parliament to adopt the conclusions which refer to state propriety, public procurement, capital expenditures, as well the one related to the need of monitoring implementation of adopted conclusions and holding control hearings with the representatives of these audited entities which was given adverse audit opinions.