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Published Report of the financial and regularity audit of the Public Institute "Home for the Elderly Grabovac" in Risan for 2019

Podgorica, 24th December 2020 – The State audit institution has performed financial and regularity audit of the Public Institute "Home for the Elderly Grabovac" in Risan for 2019.

Based on the established factual state, opinion of the Public institute Home for the Elderly in Risan as of 4th December 2020 and Article 19 of the Rules of procedure of the SAI, and due to absence of the member of the Auditing board caused by health reasons, the Senate of the State audit institution composed of PhD Milan Dabović – president of Senate, Nikola N. Kovačević – member of Senate, Zoran Jelić – member of Senate and PhD Branislav Radulović, member of Senate has expressed qualified opinion on the Annual financial statement and adverse opinion on regularity audit of the operations of the Public Institute "The Home for the Elderly Grabovac" in Risan for 2019.

The Public Institute "The Home for the Elderly Grabovac" in Risan has not keep record of the transactions in the business books according to the relevant Rulebook on unified classification of the accounts of the Budget of Montenegro and budgets of municipalities and has not calculated and paid personal income tax for physical persons and contributions for compulsory social insurance for paid contributions to the employees in the amount of 14,333.00€. In the Statement of the cash flow, the Public institute stated revenues in amount less than 2,430.00€ and cash at the beginning of year in a higher amount than 1,000.00€. The audit has determined certain non-compliances of the business operations of the Public institute with the following regulations: Law on management and internal controls in the public sector, Law on public procurement, Law on state property, Law on personal income tax, Law on contributions for compulsory social insurance, Decree on manner of keeping records of movable and immovable property and on the inventory of things in the state property, Decree on conditions and manner of use of the state owned official vehicles, Decree of reimbursement of the costs of the employees in the public sector, Rulebook on method of preparation and submission of the financial statements of the budget, state funds and local self-government units, Rulebook on classification of material and non-material property by groups and methods for determination of depreciation, Rulebook on keeping records of the conducted public procurement procedures, Instruction for implementation of the Decree on office operations of the state administration, Instructions on detailed procedure for the inventory of immovable and movable property owned by the state, internal Rulebook on small value of procurement, internal Rulebook on conditions and manner of the use of the official vehicles of the Public Institute "The Home for the Elderly Grabovac" in Risan and internal Rulebook on office operations,

Due to expressed adverse opinion and determined irregularities, the Senate of the State audit institution has made a decision to submit the final Report of the financial and regularity audit of the Public Institute "The Home for the Elderly Grabovac" in Risan for 2019 to the Ministry of finance and social welfare as a competent ministry and Parliamentary committee on health, labor and social welfare of Montenegro to be informed about its content.

Due to the determined irregularities and shortcomings in the work, the final Report of the financial and regularity audit of the Public Institute "The Home for the Elderly Grabovac" in Risan for 2019 will be submitted to the State Prosecutor for its evaluation and opinion in accordance with the signed Memorandum on cooperation.

The final Report of the financial and regularity audit of the Public Institute "The Home for the Elderly Grabovac" in Risan for 2019 along with the opinion of the audited entity on the Preliminary report as well as the response of the competent Auditing Board has been published at the web site of the SAI.