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Published Audit Report on Annual Financial Statement of Ministry of foreign affairs and European integration for 2014

Podgorica, 26th April 2016 – The State audit institution has performed a financial audit of the Annual financial statement and a regularity audit of the Ministry of foreign affairs and European integration for 2014, which implies control of compliance of the audited entity's operations with the legal and other relevant regulations.

Based on conducted audit, established factual state and upon the consideration of the audited entity's opinion on Preliminary Audit Report, the competent Auditing Board consisting of Mr. Nikola N. Kovačević (leader of the Auditing Board and member of Senate) and Mr. Dragiša Pešić (member of the Auditing Board and member of Senate) has expressed an adverse audit opinion on financial audit and adverse audit opinion on regularity audit of the Ministry of foreign affairs and European integration for 2014.

Financial audit has found that the Annual Financial Statement of the Ministry of foreign affairs and European integration in 2014 in all material aspects had not been prepared and presented in a fair and objective manner in accordance with the applicable financial reporting framework. The audit has found (based on 18 controlled Diplomatic Consular departments) that the audited entity executed payments for the costs of renting office premises and apartments for the need of Diplomatic Consular departments in amount of 456.558,05 € on the basis of inadequate documentation; as for compensations for the housing costs of the employees of the DCD the audited entity paid greater amount of funds (592.654,59 €) than it was stipulated by the Regulation; the audited entity did not express the liabilities in amount of  300.163,87 € in the Report on arrears, and it did not keep record and execute payments of the part of the expenditures in amount of  184.387,00 € from the appropriate positions according to the applicable Regulation, which present a material significant error in relation to the determined level of materiality  (146.190,30€).

The regularity audit found that the Ministry of foreign affairs and European integration had not comply financial transactions and other activities in all material aspects with the laws and other regulations which were identified as criteria for a given audit. The given audit identified certain discrepancies and inconsistency of the operations of the audited entity with the following regulations: Law on budget and fiscal responsibility, Law on public procurement, Law on state property, Law on civil servants and state employees, Law on labour, Law on obligations, Law on foreign affairs, Law on public internal financial control, Regulation on special addition Regulation on reimbursement of expenses to civil servants and state employees, Decree on special supplement applied to basic salary, Directions on State Treasury Operations, Rulebook on internal organization and systematization of working post in the Ministry of foreign affairs and European integration, Rulebook on employing local staff and Rulebook on Unique Classification of Accounts for the State Budget, State Funds and Municipal Budgets.

The Final Audit Report on Annual Financial Statement of Ministry of foreign affairs and European integration 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 Ministry of Foreign Affairs and European Integration for 2014

Audit Report on Annual Financial Statement of the Ministry of Foreign Affairs and European Integration for 2014 (mne)