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Published Audit Report on Annual Financial Statement of Montenegrin Democratic Union for 2015

Podgorica, 1st December 2016 – The State audit institution of Montenegro has performed a financial audit of the Annual Financial Statement and regularity audit of the Montenegrin Democratic Union 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 adverse opinion on Annual Financial Statement and qualified opinion on regularity audit of the operations of the Montenegrin Democratic Union for 2015.

Financial audit has found that the Annual Financial Statement of the Montenegrin Democratic Union for 2015, submitted to the SAI in line with legal prescribed deadline, was not compiled and presented fairly and objectively in accordance with the current financial reporting framework, because the audited entity did not express revenues in amount of 3.600,00 € in the Annual financial statement, as well as assets in amount of 1.264,00€. This represents a material error in relation to determined materiality which amounts to 272,42€.

The 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. Noncompliance refers to inconsistent implementation of the Law on accountancy and audit (Article 4), Law on financing political parties and election campaign (Article 6 and 38), Instructions on the Template for the Annual Report on revenues, assets and expenditures of political party, Rulebook on the manner and deadlines for inventory listing and harmonizing bookkeeping balance with the real balance (Article 2).

The audit of the Annual Financial Statement of Montenegrin Democratic Union for 2014 had found certain irregularities and given recommendations for eliminating the same ones. The audit of the Annual Financial Statement for 2015 has found that out of 11 given recommendations the audited entity implemented two recommendations, partially implemented five recommendations and did not implement one recommendation. Implementation of three recommendations related to payment of remuneration to physical persons, demarcation of records related to election campaign and regular operation and opening of a giro account for election could not be determined because there was no election campaign in 2015 and audited entity did not express expenditures based on remuneration to physical persons.

The final Audit Report on Annual Financial Statement of Montenegrin Democratic Union for 2015 has been officially published at the web site of the SAI of Montenegro.

Audit Report on Annual Financial Statement of Montenegrin Democratic Union for 2015 (mne)