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Published Audit Report on Annual Financial Statement of the Socialist People’s Party for 2016

Podgorica, 15th December 2017 - The State Audit Institution has conducted a financial audit of the Annual Financial Statement and a regularity audit of the Annual Financial Statement of the Socialist People’s Party for 2016.

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 the Senate, Milan Dabović, PhD, a member of the Auditing Board, has given adverse opinion on the Annual financial statement and adverse opinion for regularity audit.

In the Profit and Loss Statement, the audited entity did not state the revenues from the local self-governments in the amount of 6,117.00€ and expenditures in the amount of 53,082.00€. In the Balance sheet, the audited entity presented the fixed assets in the amount less than 22,600.00€, deposits on the accounts of the business banks in the amount larger than 37,349.88€, receivables in the amount less than 17,057.00€ and liabilities towards suppliers in the amount less than 27,175.00€.

Regularity audit has found that the audited entity did not harmonize all the financial and other actions with the legal and other regulations that had been identified as criteria for the given audit. Non-compliance refers to improper implementation of the Law on financing political parties and election campaign, Law on accountancy, Law on labour, Law on personal income tax, Law on obligation relations, Law on contributions for compulsory social insurance, Rulebook on the chart of accounts and content of the accounts for companies and other legal entities and Regulation on the Methods and Terms of Inventory and obligations of the legal entity.

By auditing Annual Financial Statement of the Socialist People's Party for 2016, it has been identified that the audited entity implemented five out of 16 recommendations, eight are not implemented and three recommendations are partially implemented.

Due to large number of identified irregularities and shortcomings related to the work of this audited entity, the competent Auditing Board has agreed that the Audit report should be submitted to the Parliamentary committee on economy, finance and budget and Committee for political system, judiciary and administration.

The final Audit Report on Annual Financial Statement of the Socialist People's Party for 2016 has been published at the official web site of the State audit institution of Montenegro.

Audit Report of the Annual Consolidated Financial Statement of the Socialist People’s Party for 2016 (mne)