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Published Audit Report on Annual Consolidated Financial Statement of Democratic Union of Albanians for 2016

Podgorica, 29th December 2017 - The State audit institution of Montenegro has performed a financial audit of the Annual Financial Statement and regularity audit of the Democratic Union of Albanians 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 member of the Senate, Branislav Radulović, PhD, a member of the Auditing Board, has expressed adverse opinion on Annual Financial Statement and adverse opinion on regularity audit.

Financial audit has found that the Annual Financial Statement of the Democratic Union of Albanians for 2016 was not, in all material aspects compiled and presented fairly and objectively in accordance with the applicable financial reporting framework. The audited entity did not state receivables in the amount of 5,085.48€ in the Balance Sheet, as well as short-term financial investments in amount of 8,050.00€, cash and cash equivalents in the amount of 4,562.68€. Taking into account this, it has been identified that the Balance Sheet was not prepared in line with the applicable financial reporting framework. The expenses in the amount of 8,165.00€, which were not in adequate manner documented were not stated in the Income Statement.

The regularity audit has found that the audited entity did not harmonize all the financial and other actions with laws and other regulations identified as the criteria for the given audit. Non-compliances refer to inconsistent implementation of the Law on labour, Law on accountancy and Law on personal income tax, Rulebook on the Template for the Annual Report on revenues, assets and expenditures of political parties.

The irregularities were identified in the audit of the Annual Consolidated Financial Statement of Democratic Union of Albanians for 2015 and the SAI gave seven recommendations for elimination of the identified irregularities. The audit of the Annual Consolidated Financial Statement of Democratic Union of Albanians for 2016 has found that the audited entity implemented two recommendations, did not implement three recommendations and partially implemented two recommendations.

Due to larger number of identified irregularities and shortcomings in the work of the 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, legislature and administration.

The final Audit Report on Annual Consolidated Financial Statement of Democratic Union of Albanians for 2016 has been published at the official web site of the State audit institution of Montenegro.

Audit Report of the Annual Consolidated Financial Report of Democratic Union of Albanians for 2016 (mne)