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Published Audit Report of the Annual consolidated financial statement of the Liberal Party of Montenegro for 2016

Podgorica, 24th November 2017 - The State Audit Institution has conducted a financial audit of the Annual Financial Statements and a regularity audit of the Liberal Party of Montenegro for 2016.

Based on the conducted audit, determined facts and the statement of the audited entity to the Preliminary Statement of the SAI, the competent Auditing Board comprised of a member of the Senate Nikola Kovačević, Head of the Auditing Board and member of the Senate, Zoran Jelić, a member of the Auditing Board, has given adverse opinion on Annual financial statement and adverse opinion on regularity audit.

Financial audit has found that the Annual Financial Statement of the Liberal Party of Montenegro for 2016 in all material aspects was not prepared and presented fairly and objectively in accordance with the applicable financial reporting framework, due to the fact that the revenues of the Municipal Board of Budva were not stated in the amount of 29.198,46€ as well as expenditures in the amount of 7.098,17 € in the Annual financial statement. Excess income is reported in the Balance sheet on account 3405 (equity) which represents wrong entry of said transactions. In the Financial statement, revenues from the Municipal Board of Kotor were not reported in the amount of 7.122.23€, since they were, according to the cessation agreement, directly forwarded as a reimbursement to an individual. Also, in the Financial statement, reported expenditures in the amount of 15.350,77€ were inadequately or incompletely documented.

Regularity audit has found that the audited entity had not harmonized all the financial and other operations with law and other regulations which had been identified as the criteria for the respective audit. Non-compliances refer to improper implementation of the Law on accounting and auditing, Labour Law, Law on Personal Income Tax, and Rulebook on chart of accounts and content of accounts for companies and other legal entities.

The audit of the Annual Financial Statement for 2015 had found certain irregularities and shortcomings at the audited entity. With regards to this, the audit of the Annual financial statement for 2016 has found that the audited entity implemented four recommendations and did not implement two recommendations.

The Final Audit Report of the Annual financial statement of the Liberal Party of Montenegro for 2016 has been published at the official web site of the State audit institution of Montenegro.

Audit Report on Annual Consolidated Financial Statement of the Liberal Party for 2016 (mne)