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Published Audit Report on Final Statement of Budget Accounts of the Municipality of Žabljak for 2014

Podgorica, 18th December 2015 – In line with the Annual Audit Plan for 2015, the State audit institution has performed financial audit and regularity audit of the Final Statement of Budget Accounts of the Municipality of Žabljak for 2014.

Based on the conducted audit, established facts and consideration of the audited entity's Response to the Preliminary Statement of the SAI, the competent SAI Auditing Board comprised of a member of the Senate, Mr. Dragiša Pešić, Head of the Auditing Board and a member of the Senate and Mr. Branislav Radulović, a member of the Auditing Board and a member of the Senate, has given a qualified audit opinion on financial audit and adverse audit opinion on regularity audit.

The financial audit of the Final Statement of Budget Accounts of the Municipality of Žabljak for 2014 has determined that the Final Statement of Budget Accounts does not consist of material misstatements and that it gives a true and fair view of the reported receipts and expenditures on cash basis, except for the irregularities expressed in the comments of the Report on consolidated public spending for 2014, which refer to the budget funds transferred from the previous year, repayment of net liabilities and expressed surplus.

The regularity audit of the Decision on the Final Statement of Budget Accounts of the Municipality of Žabljak for 2014 has determined that the municipality did not comply in all material aspects all business activities with legal and other regulations governing the operations of the audited entity. The audit has identified deviations and non‐compliance with the following regulations: the Law on Public Internal Financial Control System, the Law on Budget and Fiscal Responsibility, the Law on Financing Local Self‐Government, the Law on Civil Servants and State Employees, the Law on Salaries of Civil Servants and State Employees, the Public Procurement Law, the Law on Tax Administration, the Law on State Property, the Law on Preventing Illegal Business Operations, Regulation on Keeping Records of State –Owned Movable and Immovable Assets, the Regulations on the Uniform Classification of Accounts for the State Budget, Extra‐Budgetary Funds and Municipal Budgets, the Regulations on Manner of Compiling and Submitting Financial Statements for the State Budget, Extra-Budgetary Funds and Local Self-Government Units, the Regulations on the Manner and Procedure of Establishing and Implementing Financial Management and Control, the Rulebook on Tax Bookkeeping and Instructions on Treasury Operations.

The competent SAI Auditing Board has found that the extent and the character of the irregularities and deficiencies established with the audited entity require that:

- the content of the SAI Audit report be notified to the Ministries responsible for the supervision over the audited entity (the Ministry of Interior Affairs and the Ministry of Finance), in order to take measures of supervising and monitoring accountability in the public finance management.

-  the content of the SAI Audit report be notified to the Committee on Economy, Budget and Finance of the Parliament of Montenegro.

- the Municipality of Žabljak is to notify the State Audit Institution within the six (6) months on the actions taken on rectifying unimplemented recommendations from this Audit report.

The Final Audit Report on Final Statement of Budget Accounts of the Municipality of Žabljak for 2014 has been officially published at the web site of the State audit institution of Montenegro.

Excerpt from the Audit Report on Annual Financial Statements of the Municipality of Zabljak for  2014

Audit Report on Annual Financial Statements of the Municipality of Zabljak for  2014 (mne)