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Published Audit Report of the Annual Consolidated Financial Statement of the Movement for Changes for 2018

Podgorica, 22nd July 2019 - 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 Movement for Changes for 2018.

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

Financial audit of the Annual consolidated financial statement of the Movement for Changes for 2018 has identified that the financial statement, in all material aspects was not prepared and presented in accordance with the applicable financial reporting framework, because the Annual Financial statement include the costs expressed in the amount of 11.563,05€ that are not adequately documented, as well as receivables from the Budget of Montenegro in the amount of 33.605,46€ that are recorded without any legal basis.

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 (Article 2, 12, 17 and 18), Law on obligations (Article 639), Law on accountancy (Article 19), Law on Prevention of Illegal Business (Article 6).

By auditing Annual Financial Statement of the Movement for Changes for 2018, the SAI has also checked implementation of the recommendations given in the Audit report of the Annual financial statement for 2017. It has been identified that the audited entity implemented two out of twelve recommendations, not implemented six, and partially implemented three recommendations, while implementation of one recommendation could not be determined because the audited entity did not have any contributions from physical and legal entities in 2018.

The final Audit Report on Annual Financial Statement of the Movement for Changes for 2018 with the Statement of the audited entity on Preliminary report and Response of the competent Auditing Board  have been published at the official web site of the State audit institution of Montenegro.