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Published Audit Report on Annual Financial Statement of the Democratic Party for 2014

Podgorica, 24th December 2015 - The State Audit Institution has conducted a financial audit of the Annual Financial Statements and a regularity audit of the Democratic Party for 2014, which implies compliance with legal and other relevant regulations.

Based on the conducted audit, determined facts and the statement of the audited entity to the Preliminary Statement of the SAI, the competent Auditing Board comprised of a member of the Senate Nikola Kovačević, Head of the Auditing Board and a member of the Senate Branislav Radulović, PhD, a member of the Auditing Board, has given adverse audit opinion on financial audit and regularity audit of the Annual Financial Statement of the Democratic Party for 2014.

Financial Audit has found that the Annual Financial Statement of the Democratic Party for 2014 does not give a fair and objective view, in all material aspects, of financial state of assets, revenues and expenditures in accordance with the applicable financial reporting framework. The audited entity did not express the data from the previous year, and it had an impact on expressing data in the financial statement for 2014, primarily on some area in the Balance Sheet (receivables, liabilities and cash on giro-account).

Regularity audit has found that the audited entity did not comply all the financial and other actions in all materially important aspects with the legal and other regulations that had been identified as criteria for the given audit. The audited entity did not apply provisions from the Law on financing political parties and election campaign, Personal Income Tax Law, Law on obligatory relations, Labour Law and Law on accountancy and auditing.

The audit of the 2013 Annual Financial Statements of the Democratic Party established some irregularities. Based on these irregularities, the SAI gave audit recommendations related to chronological entries of all cash withdrawals, provision of valid and proper documentation for all expenses, keeping records of receivables from the local self-governments, conducting regular annual inventory of assets and liabilities, keeping records of total fixed assets in business books, reduction of cash payments from petty cash journal.

The audit of the 2014 Annual Financial Statements of the Democratic Party has established that the audited entity did not implement recommendation related to conducting regular annual inventory of assets and liabilities; it partly implemented recommendations related to chronological entries of all cash withdrawals, documenting all expenses, adoption of the financial plan and reduction of cash payments.

The Final Audit Report on Annual Financial Statement of the Democratic Party 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 Statement of Democratic Party for 2014

Audit Report on Annual Financial Statement of Democratic Party for 2014 (mne)