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Published Audit Report on Annual Financial Statement of the Fund for Compensation for 2014

Podgorica, 28th December 2015 – The State audit institution has performed a financial audit and regularity audit of the Annual Financial Statement of the Fund for Compensation for 2014.

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, PhD Branislav Radulović, Head of the Auditing Board and a member of the Senate, Dragiša Pešić, a member of the Auditing Board, has given an unqualified opinion on financial audit and qualified opinion on regularity audit of the Annual Financial Statement of the Fund for Compensation for 2014.

The financial audit of the Annual Financial Statement of the Fund for Compensation for 2014 has established that the officially presented financial statements do not contain any material irregularities or deviations. The financing transactions are expressed in line with Annual Law on budget, recorded at the General Treasury Ledger, and repayments are recorded at the Consolidate account of State Treasury.

The regularity audit has established that the Law on the restitution of property rights and compensation was not fully implemented in the period from 2005 and 2014.

The audit has established that the Fund for Compensation did not present the funds for compensation paid through the accounts at the commercial banks in its annual financial statements till 2014. Pursuant to Article 44 of the Law on the restitution of property rights and compensation and Article 32 of the Budget Law (law in force during the auditing period), the Ministry of finance should have paid 10% (30.890.604,93€) of the total amount of generated revenues (308.946.049,28€) from sale of the state property at the special account of the Fund, from beginning of 2005, when the Law was entered into force.

According to the annual budget laws from 2005-2014, the amount of 23.228.990, 91€ was planned to be paid on this basis. In the given period, out of the amount of funds planned for compensation, the amount of 17.904.376,73€ was approved to be paid to the Fund for compensation from the budget. In the statement of the audited entity to the Preliminary Statement of the SAI, it has been stated that “According to the conclusion and decisions of the Government of Montenegro, the Ministry of finance redeemed the bonds of the Fund, factored receivables and sale of property for the bonds of the Fund and therefore, it decreased the Fund's liabilities towards the former owners for the amount of 57.053.909,00€.”

The audit has found that nine out of ten selected local self-government units and Employment Agency did not fully settle liabilities towards the Fund for Compensation.

The Final Audit Report on Annual Financial Statement of the Fund for Compensation for 2014 has been published at the official web site of the State audit institution.

Excerpt from the Audit Report on Annual Financial Statement of the Fund for Compensation for 2014 

Audit Report on Annual Financial Statement of the Fund for Compensation for 2014 (mne)