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Published Performance Audit Report „Budget Expenditures of Montenegro arising from labour disputes“

Podgorica, 7th April 2016 – The State audit institution conducted a performance audit on „Budget Expenditures of Montenegro arising from labour disputes“.

The audit objective was to determine whether the responsible authorities had undertaken appropriate measures to prevent the occurrence of the expenditures for judicial disputes and/or to reduce such expenditures. The audit objective also was to examine the overall surveillance system and control over the expenditures for judicial disputes arising from the labour relations and give recommendations for their improvement.

The subject matters to audit were judicial disputes arising from labour relations in which the defendant was a state authority as well as the analysis of the related expenditures. The subject matters to audit included measures and activities undertaken by the authorities charged, Ombudsman and Ministry of finance which could have an impact on reducing the amount of the expenditures for judicial disputes. The audit sample covered the cases which were conducted against four spending units – Ministry of interior affairs, Ministry of defence, Ministry of justice and Ministry of finance, taking into account their total amount of the annual expenditures realized for judicial disputes and total number of judicial cases related to labour relation which were conducted at the Protector of property and legal interests of Montenegro in 2014. During the audit process, the SAI looked for the documents of the Agency for Amicable Settlement of Labour Disputes, Centre for Mediation and Judicial Council.

Based on performed audit, determined factual state and deliberation of the audited entity’s Opinion regarding Preliminary report, the opinion of the competent Auditing Board consisting of PhD Branislav Radulović (member of Senate – leader of the Auditing Board) and Mr. Nikola Kovačević (member of Senate – a member of the Auditing Board) is that the expenditures paid from the Budget of Montenegro for judicial disputes arising from labour relations were not managed in efficient manner.

With aim to improving efficient management of the Budget expenditures for judicial disputes arising from labour relations, the Ministry of finance, Protector of property and legal interests of Montenegro and audited state bodies should undertake a series of activities aimed to creating records which will ensure a better control over the expenditures, as well as creating analyses for carrying out necessary corrective activities so to achieve the impact on the causes of appearance of such disputes and to eliminate repetition of the disputes on the same grounds.

Implementation of the audit recommendations will reduce the risk that budget expenditures are realized twice or even more by the same exercised right. Better cooperation between the institutions, involved in the procedure of handling judicial disputes will reduce the risk which could have an influence on the process, outcome and costs of the disputes. Treatment on final and enforceable court decisions and actions of other bodies against which the disputes are conducted and alternative settlement of the labour disputes will certainly have an influence on reducing expenditures for judicial disputes.

The final performance audit report „ Budget Expenditures of Montenegro for disputes arising from labour relations“ has been published at the official web site of the State audit institution of Montenegro.

Excerpt from the Performance Audit Report on budget expenditures for judicial disputes arising from employment relations

Performance Audit Report on budget expenditures for judicial disputes arising from employment relations (mne)