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Published Audit Report of the Annual Consolidated Financial Statement of the Social Democrats of Montenegro for 2018

Podgorica, 23rd 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 Social Democrats of Montenegro 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 member of the Senate, Branislav Radulović, PhD, a member of the Auditing Board, has given unqualified opinion on the Annual financial statement and qualified opinion on regularity audit.

Financial audit has identified that the Annual financial statement of the Social Democrats of Montenegro for 2018 was, in all material aspects prepared and presented in a fair an objective manner in accordance with the applicable financial reporting framework.

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 Article 12, 17 and 18a of the Law on financing political parties and election campaign and Article 639 of the Law on obligations.

By auditing Annual Financial Statement of the Social Democrats of Montenegro 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 one out of four recommendations, not implemented two recommendations, while implementation of one recommendation could not be determined because the political entity has not concluded any contracts on lease till the date of submission of the final statement for 2017.

The final Audit Report on Annual Financial Statement of the Social Democrats of Montenegro for 2018 has been published at the official web site of the State audit institution of Montenegro.