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Published Performance Audit Report "Effectiveness of establishing, keeping and controlling state property records at the state authorities"

Podgorica, 1st July 2019 – The State audit institution has conducted a performance audit "Effectiveness of establishing, keeping and controlling state property records at the state authorities".

Based on the conducted audit, established facts and opinion of the audited entities, the competent Auditing Board composed of: PhD Branislav Radulović (head of the Auditing Board) and Mr. Nikola N. Kovačević (member of the Auditing Board), has determined that after ten years of enactment of the Law on state property and in spite of the legally defined obligations, Montenegro still does not have an unified system of records of the state property and thus the Register of immovable property is not envisaged in the Law.

The audit has identified that the complete and accurate data on the state property are not provided, and this is mostly caused by the following established facts:

-         The competent state authorities have not taken sufficient organizational, technical and staffing measures in order to establish appropriate records of property used and managed by the state authorities;

-         The records kept by the state authorities is incomplete and does not provide all the necessary data on the state property used and managed by the state authorities;

-         Ministry of finance and Property administration have not put into a place a functional program for keeping unique records of the state property;

-         The Property administration has not taken activities to ensure that all state authorities provide the information necessary for establishing a unique records;

-         The Ministry of finance and Property administration have not implemented the measured envisaged by the Action plan for establishing an unique records of the state property;

-         The process of demarcation of the state and municipal property has not been still completed, although the Ministry of finance, by the Government conclusion from 2016 was responsible to finalize this process in cooperation with the regional units of the Real estate administration;

-         All state authorities have not adopted the internal procedures governing the process of recording the state property;

-         Directorate for inspection surveillance over the state property (MF) did not conduct controls on the recording system of state property;

-         Internal audit units at the state authorities covered by the sample did not carry out the audits on the system of recording the state property.

With the aim to eliminate the irregularities and weaknesses identified by the audit and establish an unique recording system of the state property, as well as records of the property at the state authorities, the SAI has given the recommendations to the Ministry of finance (7); Property administration (5) as well as ministries and other state authorities (11).

The final Performance Audit Report "Effectiveness of establishing, keeping and controlling state property records at the state authorities" has been published at the official web site of the State audit institution.