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Published Annual Report on performed audits and activities for period October 2015 – October 2016

Podgorica, 31st October 2016 – The State Audit Institution, as an supreme authority for state audit in Montenegro, submits the Annual Report on Performed Audits and Activities for the period of October 2015 – October 2016 to the Parliament of Montenegro according to the Constitution of Montenegro and Law on the State audit institution.

The Annual Report on Performed Audits and Activities for the period of October 2015 – October 2016 contains information about execution of its Annual Audit Plan for 2016, established findings and given recommendations and opinions, implementation of the set goals and results of the activities of the SAI achieved during the reporting period.

The audit of the Final Statement of Accounts of the State Budget of Montenegro for 2015 has included the verification of computational accuracy, receipts and expenditures, capital budget and financing transactions. The audit has rendered 11 recommendations aimed at improving the operations of budget users and strengthening fiscal discipline. Apart from the audit of the Final Statement of Accounts of the State Budget of Montenegro for 2015, the SAI prepared a Report on the Implementation of Conclusions passed by the Assembly of Montenegro upon Adoption of the Law on Final Statement of Accounts of the State Budget of Montenegro for 2014.

In line with the Article 26 of the Law on budget and fiscal responsibility, the SAI prepared a Report on assessment of application of the fiscal responsibility criteria, which is included in this Annual Report.

The Annual Report on Performed Audits and Activities for the period of October 2015 – October 2016 also contains the excerpts from 32 performed audits representing the most significant findings, recommendations and measures recommended to eliminate irregularities in business practices of audited entities encompassed by the reporting period.

The completed individual audits rendered 354 recommendations, 66 opinions (30 unqualified, 28 qualified and 8 adverse). In addition, two opinions were given upon the completion of performance audits during the reporting period of October 2015 ‐ October 2016. During the reporting period of October 2015 ‐ October 2016, the SAI carried out the audits of the Annual financial statements for 2014 of the political parties that were not covered by the last year's Annual Report of the SAI, which encompassed 8 political parties. These audits resulted in 48 recommendations and 16 opinions (4 unqualified, 8 qualified and 4 adverse).

Till the end of 2016, the following audits will be conducted: Capital city of Podgorica (financial audit and regularity audit); Clinical Center of Montenegro (financial audit and regularity audit); Insurance supervision agency (financial audit and regularity audit); Socialist People's Party of Montenegro for 2015 (financial audit and regularity audit); Bosniak Party for 2015 (financial audit and regularity audit); Democratic Alliance in Montenegro (financial audit and regularity audit); Democratic Albanian Union for 2015 (financial audit and regularity audit); Montenegrin Democratic Union (financial audit and regularity audit); Democratic Montenegro Democrats (financial audit and regularity audit); NGO “Choice – Herceg Novi” (financial audit and regularity audit); Albanian Alternative (financial audit and regularity audit); Democratic party of Union (financial audit and regularity audit).

In November 2016, the following performance audits will be finalized and published: Efficiency of internal audit in the public sector and Effects of the activities of the Council for Improvement of Business Environment, Structural and Regulatory Reform. Two parallel performance audits are ongoing: Energy efficiency in the public sector institutions with the SAI of Republic of Croatia and Efficiency in planning public procurement with seven regional SAIs and National audit office of Sweden and European Court of Auditors.

The State Audit Institution has continued to implement the activities defined in the Negotiation Chapter XXXII (Financial Control) with aim to increasing the quality of the audit process and its harmonization with the applicable international standards of supreme audit institutions (ISSAI) and practices of the member states of EU.

The State Audit Institution, in this reporting period, has conducted the activities according to its competences and cooperated with the Parliament, Government of Montenegro and other state bodies, NGOs, as well as supreme audit institutions at the regional and international level and international organizations.

The Annual Report on performed audits and activities for period October 2015 – October 2016 has been published at the official web site of the State audit institution of Montenegro.

Annual Report on Performed Audits and Activities of the State Audit Institution of Montenegro for period October 2015 - October 2016