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Published Audit Report of the follow up audit of Budva Municipality

Podgorica, 28th December 2017 – State audit institution has conducted a follow up audit on implementation of recommendations contained in the Audit report of the Final Budget accounts of Budva Municipality for 2014.

In addition to the above mentioned, the follow up audit implies the verification of the accuracy of statements given in the Information about implementation of recommendations, delivered by the Municipality of Budva to the SAI and activities on implementation of given recommendations and elimination of the identified irregularities, as well as control of financial statements of Budva Municipality for 2016 and compliance of its operations with the aim to reviewing the operations of the audited entity related to irregularities identified in the previous audit.

Based on the conducted follow up audit, minutes of the state auditors, analysis of the statement of the audit entity on Preliminary report of the follow up audit of the Municipality of Budva, the competent Auditing Board comprised of a member of the Senate Zoran Jelić, Head of the Auditing Board and member of the Senate, Nikola Kovačević, a member of the Auditing Board, has concluded that out of total 37 recommendations given in the Audit report of the Final Budget accounts of Budva Municipality for 2014, the audit entity implemented ten recommendations, partially implemented thirteen recommendations and did not implement fourteen recommendations.

Follow up audit has determined that with regard to implementation of recommendations, Budva Municipality achieved certain results which reflect in ten implemented and thirteen partially implemented recommendations. However, there are still significant shortcomings in the following segments: internal financial control, keeping records of outstanding liabilities, keeping records of state property and public procurement system.

The competent Auditing board has concluded that the scope and nature of partially implemented and not implemented recommendations require that the ministries competent for supervision over the audit entity (Ministry of finance and Ministry of public administration) as well as the Parliamentary Committee for economy, finance and budget, should be informed about the content of the Report, in order to take measures on strengthening the legal framework and accountability in public finance management.

Budva Municipality is obliged to carry out implementation of partially implemented and not implemented recommendations within 6 (six) months, and to inform the SAI on the degree of implementation within the prescribed deadline.

The final Follow-up audit report of the municipality of Budva has been published at the official website of the State audit institution of Montenegro. 

Follow-up audit report of the Municipality of Budva (mne)