Published Audit Report on Annual Financial Statement of the Agency for national security for 2015

Podgorica, 2nd June 2016 – The State audit institution has performed a financial audit of Annual financial statement for 2015 and regularity audit of the Agency for national security.

Based on conducted audit and determined factual state, the competent Auditing Board of the SAI comprising of the following members: Branislav Radulović, PhD (Member of the Senate – Head of Auditing Board) and Mr. Dragiša Pešić (member of the Senate – member of the Auditing Board), has given an unqualified opinion on Annual financial statement of the Agency for national security for 2015 and unqualified opinion with emphasis of matter to particular identified irregularities related to compliance of the business operations with the legislations.

With regards to identified irregularities, the competent Auditing Board has given the following recommendations to the audited entity:

- In accordance with international accounting standards for the public sector, the audited entity should keep records of the supplied vehicles as fixed assets, liabilities arising from the leasing contract as well as calculate depreciation over the lease;

- The audited entity should inform the Ministry of finance on the liabilities arising from leasing contract in the notes of the financial statements;

-  While implementing the public procurement procedure by direct agreement, the audited entity should ensure that the total annual amount of procurements realized by direct agreement does not exceed the limits prescribed in Article 30 of the Law on Public Procurement;

- In accordance with the Law on Public Procurement, the audited entity should purchase the equipment which is not purchased for the purposes of intelligence activities, or it has no features of a special equipment according to the Regulations on the special equipment for the work of the Agency​;

- The head of the audited entity ( Director of the Agency ) should provide all legal requirements for functioning of the internal audit, especially in area of full and timely implementation of articles 13 and 19 item 2 of the Law on public internal financial controls (signing of Audit Charter );

- Internal audit unit is obliged to carry out the audits envisaged in the Work plan after signing the Charter.

Upon receipt of the preliminary audit report, and with aim to ensuring the legality of operations and implementation of recommendations issued by the SAI, the audited entity made amendments to the Rules on conditions and manner of using the vehicles within the Agency as well as Regulation on special equipment used in the work of the Agency. During the audit process, the Director of the Agency approved the amendments to the Strategic Plan of internal audit for the period 2015-2017. and signed the revised Internal Audit Charter. The internal audit unit will start to implement the approved Plan in line with the planned dynamics.

The audited report is submitted to the Government of Montenegro and Parliamentary Committee on security and defence of Montenegro. The Final Audit Report on Annual Financial Statement of the Agency for national security for 2015 has been published at the web site of the State audit institution.

Excerpt from the Audit Report on Financial Statement of the Agency for National Security for 2015

Audit Report on Financial Statement of the Agency for National Security for 2015 (mne)