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Published Audit Report on Annual Financial Statement of the Movement for Changes for 2015

Podgorica, 4th October 2016 - The State Audit Institution conducted a financial audit of the Annual Financial Statements and regularity audit of the Movement for Changes for 2015.

Based on the conducted audit, determined facts and the statement of the audited entity, the competent Auditing Board comprised of a member of the Senate Nikola Kovačević, Head of the Auditing Board and member of the Senate Branislav Radulović, PhD, a member of the Auditing Board, has given unqualified audit opinion on the Annual financial statement for 2015 with emphasis of matter and qualified audit opinion on regularity audit.

Financial Audit has found that the Annual Financial Statement of the Movement for Changes in 2015 in all important material respects had been prepared and presented fairly and objectively in accordance with the applicable financial reporting framework. Apart from given unqualified audit opinion, the competent Auditing Board has emphasized a matter to the following items in the Report: item 3.6.2. Receivables – given advances and item 3.6.4. Petty cash operations – expenses of per diem and travel expenses.

Regularity audit has found that the audited entity had not harmonized all the financial and other actions with laws and other regulations that had been identified as the criteria for the respective audit. The non-compliances refer to improper implementation of the Law on accountancy and auditing (Article 4), Labour Law, the Law on Obligation Relations, Law on financing political parties and election campaign (Article 38), Rulebook on the form, content, manner of filling and submitting of the unique form of the statement on the calculated and paid personal income tax and benefits for compulsory social insurance (Article 5).

The audit of the Annual Financial Statements for 2015 has found that the audited entity implemented the recommendations given in the audit report of the Annual financial statement of the Movement for Changes for 2014 relating to the following: all the petty cash transactions should be recorded chronologically in the petty cash journal; it should establish through an internal act which persons within the Party have the right for reimbursement of mobile phone expenses, as well as the amount of the reimbursement. The audited entity partially implemented recommendations relating to the following: consistent application of the Regulation when calculating and paying per diem allowances; payment of all the expenses done based on the adequate and complete documentation; submission of the statements on calculated and paid taxes and contributions to the competent tax authority and showing the data on paid salaries and other taxable incomes. The audited entity did not implement the recommendation relating to conclusion of the contracts in accordance to the Labour Law with the employees hired to perform tasks of systematized positions.

As for the recommendations relating to announcement of all the vacancies and write-off liabilities done with the approval of the supplier, the audited entity did not conduct hiring of the employees and write-off the liabilities in 2015 and therefore, the SAI could not check the implementation of these recommendations.

The final Audit Report on Annual Financial Statement of the Movement for Changes 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 Movement for Changes for 2015

Audit Report on Annual Financial Statement of the Movement for Changes for 2015 (mne)