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Parliament has considered the Audit report of the Proposal law on the final state budget account of Montenegro for 2020 and Annual report on performed audits and activities of the SAI for period October 2020 – October 2021

Podgorica, 17th December 2021 – President of Senate, PhD Milan Dabović, members of the Senate - Nikola N. Kovačević and Zoran Jelić have participated at the fifth sitting of the second ordinary session dedicated to discussion on the Proposal law on Final state budget account of Montenegro for 2020 with the Audit report of the Proposal law on Final state budget account of Montenegro for 2020 and Annual report on performed audits and activities of the SAI of Montenegro for period October 2020 – October 2021.

President of Senate PhD Milan Dabović has informed the members of the Parliament that the Annual report of the SAI covered 37 audit reports as follows: Audit report of the Proposal law on the final state budget account of Montenegro for 2020, Report on assessment of the fiscal responsibility criteria for 2020, 25 financial and regularity audits, 1 regularity audit, 5 performance audits, 2 audits of information system, 1 cross section audit and 1 follow-up audit. President of Senate has stated that the financial audit of the Proposal law on the final state budget account of Montenegro for 2020 has identified irregularities which are not materially significant and thus it has given unqualified opinion with emphasis of matter, while the regularity audit has identified materially significant deviations and non-compliance of the business activities of the spending units with law and sublegal acts and has given adverse opinion. President of Senate has also said that the SAI has given in the financial and regularity audit of the Proposal law on the final state budget account of Montenegro for 2020 the systemic recommendations which cannot be individually implemented by the audited entities, but in cooperation with the legislative and executive branch and defined them as strategic objective. In this reporting period, the SAI has carried out control of implementation of the Parliament’s conclusions on implementation of the recommendations given in the Audit report of the Proposal law on the final state budget account of Montenegro for 2019. It has been stated that 12 recommendations were implemented out of 44 recommendations, 7 partially implemented, 2 ongoing, while 23 recommendations were not implemented.

With regards to assessment of the fiscal responsibility criteria for 2020, it has been stated that the Law on budget of Montenegro for 2020 was not harmonized with the Fiscal Policy Guidelines for period 2019 – 2022. The report has been identified that the statistic indicators have not been implemented, while the implementation of dynamic indicators amounts to 33%.

President of Senate has informed that the positive assessment of the European Commission in the Report for 2021 shows that the SAI has achieved a great level of professional development and harmonization of its work with the international standards.

The SAI strives and will strive to make the work of the institution more visible by implementing innovative communication tools and in this regard, it has prepared in cooperation with the Westminster foundation for democracy a graphic summary of the Annual report on performed audits and activities of the SAI for period October 2020 - October 2021.