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Published Audit Report on Annual Financial Statement of the Democratic People’s Party of Montenegro for 2015

Podgorica, 3rd August 2016 - Pursuant to the Law on State audit institution and Law on financing political parties and election campaign, the State audit institution has performed a financial audit of the Annual Financial Statement and regularity audit of the Democratic People's Party of Montenegro for 2015.

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 expressed an unqualified audit opinion on the Annual Financial Statement of the Democratic People's Party of Montenegro for 2015 and a qualified audit opinion on regularity audit of its operations with legal and other regulations.

Financial Audit has found that the Annual Financial Statement of the Democratic People's Party of Montenegro for 2015, in all material respects, had been made and presented fairly and objectively in accordance with the applicable financial reporting framework.

Regularity audit has found that the audited entity had not harmonized financial and other actions in all material respects with the legal and other regulations that had been identified as criteria for the given audit. Non-compliances refer to improver implementation of Article 4 of the Law on accountancy and audit, Article 23 of the Law on labour and Article 26 of the Law on Employment and Exercising Rights for Unemployment Benefits.

Through the audit of the Annual financial statement of the Democratic People's Party of Montenegro for 2014, the State audit institution found a certain number of irregularities and gave the following recommendations to the Party:

  1. document all expenditures using valid and complete documentation;
  2. conclude contracts with natural persons in line with the Law on Labour and Law on Obligations depending on the type of the concluded contract;
  3. record the claims made by the local self‐governments;
  4. provide better records of the cash paid fuel expenses,  beside using fiscal bills, providing travel orders, lists of persons who are entitled to reimbursement of fuel expenses and slips from gas stations specifying the number plates of vehicles of the person who bought fuel.
  5. to create an internal act to determine who is entitled to the reimbursement of fuel expenses, and the amount thereof.
  6. the amount thereof.

Through the audit of the Annual financial statement of the Democratic People's Party of Montenegro for 2015, the State audit institution has found that the Party implemented audit recommendations (no. 4 and 5), did not implement the audit recommendation (no.3), while the audit recommendations (no.1 and 2) were mostly implemented.

The final Audit Report on Annual Financial Statement of the Democratic People's Party of Montenegro for 2015 has been published at the official web site of the State audit institution of Montenegro.

Excerpt from the Audit Report on Annual Financial Statement of the Democratic People’s Party of Montenegro for 2015

Audit Report on Annual Financial Statement of the Democratic People’s Party of Montenegro for 2015 (mne)