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Interview of PhD Branislav Radulović, member of Senate for a daily newspaper „Pobjeda“

Podgorica, 21st March 2016 – „The performance audit on judicial disputes is in the final auditing phase. The performance audit on collection of tax liabilities by the property of tax payers has been started. The Institution has undertaken intensive activities on the follow up audit of concessions“, said Mr. Branislav Radulović, member of Senate.

Pobjeda: What audits are planned for the current year?


The Senate of the SAI adopted the Annual audit plan for the current year in December 2015. The Annual Audit Plan of the SAI is considered as a business secret until the audited entities are informed on commencement of the audit. The SAI has started the audits which are performed every year as the audit of final state budget account and audit of political parties. As for individual audits, the auditing teams have started to perform the audit of the National security agency and Ministry of sustainable development and tourism. The performance audit on judicial disputes is in the final auditing phase and performance audit on collection of tax liabilities against the property of tax payers has been started. The audit of the final budget of account of the Capital of Montenegro has been started and the Institution has undertaken intensive activities on the follow up audit of concession. Until the end of March, the Institution will publish the final audit report on Health Insurance Fund and in April we also will publish the final audit report of the Ministry of foreign affairs and European integration. The general public will be informed in timely manner about other audits which are planned to be performed during this year when the Institution adopts the decisions on commencement of these audits.

Pobjeda: You have mentioned that the SAI will perform audits with some other supreme audit institutions of EU.

With aim to improving the audit quality and adopting new methodologies, we agreed on parallel audit with the State Audit Office of Croatia with regard to energy efficiency in the public sector, which would be conducted in IV Q of the current year. In cooperation with the Swedish National Audit Office and European Court of Auditors in Luxembourg, we are in process of planning parallel audit which will be conducted by seven countries of the region with regard to public procurement. The SAI of Montenegro will be the host of the first workshop in April. The state auditors of Swedish National Audit Office and European Court of Auditors will present their own audit experience and practices at this workshop.

Pobjeda: What is the level of implementation of the SAI's recommendations given to the audited entities during last year?

In last year, the SAI gave 7 audit recommendations in the audit report of the final state budget account, 278 audit recommendations in the individual financial audit and regularity audit reports as well as 36 recommendations in performance audit reports.

By a rule, the audited entities are obliged to inform the SAI on implementation of given recommendations within 6 months. The level of promptness of reporting is very high and SAI separately assesses the level of implementation of the audit recommendations per each audit entity. If we assess that the audited entity did not implement the audit recommendations in satisfactory manner, we conduct a follow up audit. In this year, we assess whether there is a need to conduct follow up audits of some local self-government units.

Pobjeda: Did the SAI submit the audit reports to the State Prosecutor Office and were they processed?

During the last year, the SAI submitted the Audit Report of the Public Enterprise „National Parks“, Municipality of Budva and according to Parliament's conclusion, we also submitted the audit report of concessions. The SAI also submitted the Audit report of Democratic Party of Ulcinj.

Pobjeda: Will the SAI expand the audit scope? 

The Senate of SAI has an exclusive right to choose audited entities and subject matters to audits. If there is need to expand the audit scope while the given audit is ongoing, the competent Auditing Board may propose it to the Senate. Now, it is early to predict such possibility, but I do not exclude such possibility when it refers to individual performance audits.

Pobjeda: In your opinion, how do you describe a fiscal discipline in Montenegro?

Pursuant to the Law on Budget, the SAI performs assessment of application of fiscal responsibility criteria and it submits the report to the Parliament which is an integral part of the Annual Report of the SAI. The Parliament discusses on this report upon adoption of the Final state budget account. With aim to improving the quality of its work and reporting, the SAI has intensified the cooperation with SIGMA and Parliamentary Committee on economy, finance and budget and we are in process of preparing the guidelines for assessment of fiscal responsibility criteria. Now it would be pretentious to give any preliminary assessments because the SAI expresses its opinion based on conducted audits. The SAI will inform the general public about all findings and audit recommendations given in this report as well as other audit reports.