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Published Audit report on the Annual consolidated financial statement of the Democratic Union of Albanians for 2019

Podgorica, 5th November 2020 – The State audit institution has performed financial and regularity audit of the Annual financial statement of the Democratic Union of Albanians for 2019.

Based on the conducted audit, established factual state and Opinion of the audited entity on the Preliminary audit report of the SAI, the competent Auditing Board comprised of a member of Senate, Mr. Nikola N. Kovačević, head of the Auditing Board and member of the Senate Radule Žurić – member of the Auditing Board, has expressed qualified audit opinion on the Annual consolidated financial statement and adverse opinion on regularity audit.

The financial audit has found that the Annual financial statement of the Democratic Union of Albanians for 2019 was prepared in line with the applicable financial reporting framework except for the stated in the Report under the item 10.1.5 – Petty cash operations and item 10.2.2 – Expenses. The regularity audit has found that the Party did not comply all financial and other activities in all material aspects with the legal and other regulations as follows: Law on financing political entities and election campaign (former article 18 and 38), Law on prevention of illegal operations (Article 6), Law on accounting (Article 19), Law on labor, Rulebook on the chart of accounts and content of the accounts for companies and other legal entities, Rulebook on form, content, manner of filling of a unified form of reports on calculated and paid tax on personal income and contributions for compulsory social insurance.

The audit of the Annual financial statement for 2019 has covered monitoring of the implementation of the recommendations given in the Audit report on the Annual financial statement for 2018. The audit of the Annual consolidated financial statement for 2019 has identified that the Party implemented two out of nine recommendations, partially implemented two recommendations, not implemented three recommendations, while the implementation of two recommendations could not be determined because the Party was not the first candidate on the electoral list in the local election held in the municipality of Tuzi in 2019.

Due to the large number of identified irregularities and shortcomings in the work of the audited entity, the competent Auditing Board has made a decision to submit the Audit report to the Parliamentary committee on political system, judiciary and administration.

The final Audit report on the Annual consolidated financial statement of the Democratic Union of Albanians for 2019 with the Opinion of the audited entity on the Preliminary audit report of the SAI and response of the competent Auditing Board has been published at the official website of the State audit institution of Montenegro.