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Published Audit report on the Annual Consolidated Financial Statement of the Democratic People’s Party for 2021

Podgorica, 16th September 2022 – The State audit institution has carried out financial audit of the Annual consolidated financial statement and regularity audit of the Democratic People’s Party for 2021.

Based on performed audit, determined factual state and opinion of the audited entity’s on the Preliminary audit report, the competent Auditing Board led by the chairman of the Senate, member of Senate Nikola. N. Kovacevic – leader of the Auditing Board and member of the Senate Milan Dabovic – member of the Auditing Board has expressed unqualified opinion with emphasis of matter on financial audit and adverse opinion on regularity audit of the operation of the Democratic People’s Party for 2021.

Financial audit has determined that the Annual consolidated financial statement of the Democratic People’s Party for 2021 was prepared and presented in a fair and objective manner in line with the accepted financial reporting framework. Therefore, the Auditing Board has given unqualified opinion on the Annual financial statement of the Democratic People’s Party with emphasis of matter that the audited entity records of all business transactions in the business books in the fiscal year and that the all expenditures are supported with adequate and complete documentation in line with the bookkeeping rules according to Article 20 of the Law on accounting.

The regularity audit has determined that the audited entity did not harmonize all financial and other activities with the legal and other regulations identified as audit criteria. Non-compliance cases refer to inconsistent application of the Law on the financing political entities and election campaigns, Law on labour, Law on obligations, Rulebook on the form, content, manner of completing and submitting the unified form of the report on calculated and paid personal income tax and contributions to obligatory social insurance, Rulebook on the manner and deadlines for the inventory of assets and liabilities of legal entities, Decree on the reimbursement of expenses of employees in the public sector.

The Final audit report on the Annual consolidated financial statement of the Democratic People's Party for 2021 is intended for the management of the audited entity, Parliament of Montenegro, Agency for prevention of corruption and other stakeholders.

The audited entity is obliged to submit the Action plan for the implementation of recommendations to the State audit institution within 30 (thirty) days from the date of submission of the Final audit report, and within six months the Report on the implementation of the recommendations given in the Audit report.

Due to the expressed adverse opinion and identified irregularities, the competent Auditing Board has determined that the final audit report on the Annual consolidated financial statement of the Democratic People's Party for 2021 should be submitted for review to the Committee for political system, judiciary and administration of the Parliament of Montenegro.

Pursuant to the Protocol on Cooperation between the Parliament of Montenegro and the State audit institution, the Final audit report on the Annual financial statement of the Democratic People's Party for 2021 is submitted to the Parliament of Montenegro for review.

The final Audit report on the Annual consolidated financial statement of the Democratic People's Party for 2021 with the infographic are available at the official website of the SAI.