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Published Audit Report of the Annual financial statement of the Liberal Party of Montenegro for 2015

Podgorica, 18th October 2016 - The State Audit Institution has conducted a financial audit of the Annual Financial Statements and a regularity audit of the Liberal 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 president of the Senate, Milan Dabović, PhD, a member of the Auditing Board, has given adverse opinion on Annual financial statement and qualified opinion on regularity audit.

Financial audit has found that the Annual Financial Statement of the Liberal Party of Montenegro for 2015 in all material aspects had not been prepared and presented fairly and objectively in accordance with the applicable financial reporting framework, due to the fact that the revenues of the Municipal Board of Niksic had not been expressed in the amount of 2.664,40€ as well as expenditures in the amount of 4.641,18€ in the Annual financial statement. This error in relation to determined materiality which amounts to 1.971,00€ is regarded as a material one.

Regularity audit has found that the audited entity had not harmonized all the financial and other operations with law and other regulations which had been identified as the criteria for the respective audit. Non-compliances refer to improper implementation of the Law on Personal Income Tax, Law on accountancy and auditing, Law on Financing of Political Entities and Election Campaigns, Labour Law and Rulebook on internal organization and systematization of the working posts.

The audit of the Annual Financial Statement for 2014 had found certain irregularities and shortcomings at the audited entity. With regards to this, the audit of the Annual financial statement for 2015 has found that the audited entity implemented two recommendations relating to listing inventory and liabilities and keeping records of new procurements; did not implement one recommendations relating to keeping records of all business transactions in the ledger and it partially implemented four recommendations relating to payment of tax liabilities for paid expenses based on renting business premises, establishing financial control over the work of the municipal boards, keeping records of petty cash transactions of the municipal boards, conclusion of the contracts for systematized working posts.

The Final Audit Report of the Annual financial statement of the Liberal 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 Liberal Party of Montenegro for 2015

Audit Report on Annual Financial Statement of the Liberal Party of Montenegro for 2015 (mne)