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Published Audit report of Proposed Law on final statement of accounts of state budget of Montenegro for 2019

Podgorica, 15th October 2020 – The State audit institution has performed financial audit and regularity audit of the Proposed Law on final statement of accounts of state budget of Montenegro for 2019.

Financial audit of the Proposed Law on final statement of accounts of state budget of Montenegro for 2019 has determined minor irregularities that are not materially significant in relation to the given criteria for financial audit. The Proposed Law on Final Statement of Accounts of State Budget of Montenegro for 2019 states that expressed amounts of the deficit on cash basis of €143,283,723.33, while the audit has determined that the other revenues should be increased by the net amount of €528,521.11, the inflows from assets sale should be decreased for the same amount and the deficit on cash basis adjusted, so it amounts to €142,755.202,22. Modified deficit on cash basis is also adjusted to €143,961,144.78. Based on established facts determined in the audit process, the Auditing Board composed of Milan Dabović, PhD, President of the Senate - Head of the Auditing Board, and Zoran Jelić, member of the Auditing Board - Senator, expresses its unqualified opinion with emphasis of matter.

Regularity audit of the Proposed Law on Final Statement of Accounts of State Budget of Montenegro for 2019 established that the spending units' business activities were not in all materially significant aspects in compliance with the legal and other regulations governing budget operations in Montenegro, and therefore, based on the Senate’s Decision on Expressing Opinion on Regularity Audit of the Audit Report of the Proposed Law on Final Statement of Accounts of State Budget of Montenegro for 2019 as of October 9, 2020, which is binding for Auditing Board members, the competent Auditing Board expresses its adverse opinion.

The State audit institution has performed monitoring of implementation of the recommendations given in the Audit report of Proposed Law on final statement of state budget of Montenegro for 2018. Based on the findings established by the audit of the Proposed Law on Final Statement of Accounts of Budget of Montenegro for 2019 and information on the implementation of the Action Plan for the implementation of the recommendations of the State Audit Institution at the end of the second quarter of 2020, the State audit institution has determined that seven recommendations were implemented, four partially implemented, two recommendations with ongoing status, seven recommendations were not implemented, while the SAI has refrained from its opinion at one recommendation.

The Final Audit report of Proposed Law on final statement of accounts of state budget of Montenegro for 2019 with a Summary of the Audit report is available at the official website of the State audit institution.