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Published Audit Report on Annual Financial Statement of Socialist People’s Party for 2015

Podgorica, 17th November 2016 - The State audit institution of Montenegro has performed a financial audit of the Annual Financial Statement and regularity audit of the Socialist People's Party 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 adverse opinion on Annual Financial Statement and adverse opinion on regularity audit of the Socialist People's Party for 2015.

The Socialist People's Party submitted to the SAI the Annual financial statement for 2015 within the legal deadline (31.03.2016.). After the expiry of the legal deadline, the Party (27.06.2016.) submitted to the SAI a revised Annual Financial Statement for 2015. Comparing the data from the submitted statements, the differences are determined with regards to expressed revenues, expenditures, liabilities, receivables and assets.

Financial audit of the Annual Financial Statement of the Socialist People's Party for 2015, which was submitted to the SAI within the legal deadline, has been found that the incomes are expressed in a lower amount for € 39,421.89; expenditures in a lower amount for € 114,026.76; liabilities in a lower amount for € 8,497.27; receivables in a higher amount for € 16,750.35; assets in a lower amount of €50,113.11 compared to data given in the Annual Statement submitted after the expiry of the legal deadline. The audit has found that the different presentations of these data in the submitted statements are largely due to an incorrect bookkeeping of a large number of business transactions, double entry bookkeeping for posting a certain amounts, not timely provision of the necessary documentation for the bookkeeping (bank's statements, vendor invoices and contracts on the cession and assignment, etc.), unreconciled data on receivables with the municipalities and not implementing posting after evaluation of the assets.

Regularity audit has found that the audited entity did not comply all the financial and other actions with laws and other regulations identified as the criteria for the given audit. Shortcomings refer to inconsistent implementation of the Law on accountancy and audit, Article 46 of the Law on income tax, Article 6 of the Law on financing political parties, Article 23, 25 and 26 of the Labor Law and Article 26 of the Law on employment and exercising Rights for unemployment benefits

The audit of the Annual Financial Statement for 2014 of the Socialist People's Party, the State Audit Institution has identified a number of irregularities and given 11 recommendations for elimination of the same ones. The audit of the Annual Financial Statement of the Socialist People's Party for 2015, which was submitted within the legal deadline has been found that the recommendations were not implemented, as the same irregularities are identified as in the previous year. After submission of the Annual Statement, corrective posting were made in the business books according to given recommendations, after which it has been stated that the Party implemented four recommendations out of 11, not implemented 3 recommendations and partially implemented four recommendations.

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

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