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Published Audit Report on Annual Financial Statement of the Democratic alliance in Montenegro for 2016

Podgorica, 30th December 2017 - The State Audit Institution has conducted a financial audit of the Annual Financial Statement and regularity audit of the Democratic alliance in Montenegro for 2016.

Based on the conducted audit, determined facts and the statement of the audited entity, 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 given qualified audit opinion on the Annual financial statement for 2016 and qualified audit opinion on regularity audit.

Financial audit has found that the Annual Financial Statement of the Democratic alliance in Montenegro in 2016 contains materially significant errors, including incorrectly presented revenues from the Budget of Montenegro in the amount of 2.139,21€ (item 9.1.1. of the Report) and wrongly recorded rental expenses in the amount of 4.800,00€ (item 8.4.3. of the Report) in relation to the established level of materiality of 845,44€, but the errors do not have pervasive effect on the financial statements.

Regularity audit has found that the audited entity had not harmonized all the financial and other actions with laws and other regulations that had been identified as the criteria for the given audit. The non-compliances refer to improper implementation of the Labor Law, Low on personal income tax, Rulebook on the method and terms for performing the inventory and reconciliation of book balance and actual status, Rules on the chart of accounts and the contents of accounts in the chart of accounts for companies and other legal entities.

By auditing the Annual Financial Statement of the Democratic alliance in Montenegro for 2016, the SAI has checked the implementation of recommendations given in the Audit report of the Annual Financial Statement of the Democratic alliance in Montenegro for 2015. The audit of the Annual Financial Statements for 2016 has found that the audited entity implemented two recommendations, partially implemented four recommendations and did not implement two recommendations.

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

Audit Report on Annual Financial Statement of the Democratic League in Montenegro for 2016 (mne)