The collegium of the State Audit Institution (DRI) expresses a conditional opinion on the financial audit and a negative opinion on the audit of the regularity of the Draft Law on the final account of the budget of Montenegro for 2023, this institution announced.
From the beginning of the year to the end of October last year, the budget was implemented by the Government of Dritan Abazović, and from the end of October to the end of the year by the Government of the current Prime Minister Milojko Spajić, whose Ministry of Finance prepared the Final Account.
The audit was carried out by the SAI collegium, which included Dr. Milan Dabović, member of the Senate and head of the Collegium, and Nikola N. Kovačević, chairman of the Senate of the SAI, senator and member of the Collegium.
"The State Audit Institution draws attention to the fact that the revision of the Proposal for the Law on the final account of the budget of Montenegro for 2023 identified irregularities, which correct the budget result and the change in net cash. After the corrections, the cash deficit amounts to €2.616.036,21 (in the Proposal of the law on the final account of the budget for the year 2023 stated cash surplus in the amount of €11.187.308,03), modified cash deficit of €4.864.762,93 (in the Draft Law stated a modified surplus in the amount of €8.938.581,31), net change cash deposits €36.819.209,15 (amount €33.719.266,15 in the Bill), while the cash balance as of December 31.12.2023, 83.139.530,03 is €80.039.587,03 (amount €16 in the Bill). The audit found that 2023 million euros were not recorded in the Treasury's General Ledger, which, in addition to other irregularities, had a decisive effect on the change in the budget result. Bearing in mind that the budget result is changed after the corrections have been made, the SAI recommends that the Government of Montenegro consider the possibility of preparing amendments on the Draft Law on the final account of the budget of Montenegro for the year XNUMX", it was stated in the report of the SAI.
During the review of regularity, the competent Board, as stated, expressed a negative opinion due to the fact that the Tax Administration did not prepare the Final Tax Invoice for the year 2023 by March 31, and it could not be processed for the second year in a row, as well as due to violations of other legal provisions, which regulate the functioning of the fiscal system and have imperative application.
"The Ministry of Finance did not provide a record of obligations in the Treasury General Ledger in accordance with the Rulebook on the Uniform Classification of Accounts for the Budget of Montenegro and Municipal Budgets, but only a record of the state of obligations at the end of the year based on the submitted reports of spending units. The audit of the Report on Outstanding Liabilities established that the following spending units contracted obligations above the planned and approved funds, namely: the Institute for Education, the Administration for Food Safety, Veterinary and Phytosanitary Affairs, and the Pension and Disability Insurance Fund on the final account for the year 2022, which refers to the donor accounts of public institutions, were not disclosed as of December 31.12.2023, 30.500.000, which conditions the statement of the reserve regarding the conclusion of the total balance of funds in the state accounts marked 'PIB spending units' and ' Accounts of public institutions'. In the audit process, it was not possible to determine in what amount and for what purpose the funds, which refer to the direct donation of the European Commission in the amount of XNUMX euros, were used for the reason that the spending units implementing the budget support program did not there is a name of the program or activity, which would link the source of funds of the European Commission with the purpose or consumption of budget funds. The Ministry of Finance has not opened a separate account for each individual Financial Agreement or Decision of the European Commission, in which the withdrawal of funds received as part of the pre-accession aid of the European Union will be recorded," the SAI report stated.
The audit also established that contracts for consulting services (Capital Projects Administration) and work contracts (Ministry of Finance, Ministry of Transport and Maritime Affairs, Administration for Inspection Affairs and Administration for cadastre and state property).
"Exceeding the allowed spending of budget reserve funds for financing the regular activities of the consumer unit was determined by five units: the Ministry of Human and Minority Rights, the Ministry of Ecology, Spatial Planning and Urbanism, the Ministry of Justice, the Ministry of Sports and Youth and the Ministry of Capital Investments. The audit of the capital budget determined that the municipalities did not or did not regularly report to the Directorate for Capital Projects on the implementation of concluded contracts on the implementation of a special program and contracts on the dedicated use of funds from the Special Program (funds from economic citizenship). In the area of public debt, the audit determined that there are no detailed procedures for the way of recording and reporting on public debt. When it comes to state property records, the competent ministry and the State Property Administration have not put into operation the software for keeping a single record and register of real estate. The State Property Administration has not evaluated the listed real estate properties." it is stated from DRI.
In order to improve the fiscal system, the competent Collegium gave the Parliament and the Government three systemic recommendations: that legal entities, which are part of the system of financing based on public revenues (JP Morsko dobro, Environmental Protection Fund doo, Veterinary Chamber and clinics) should be financed through budget system of Montenegro; that the Parliament of Montenegro, in order to harmonize with the Law on Budget and Fiscal Responsibility, consider the possibility of amending the norm of the annual budget law, which refers to the consolidation of own revenues of public institutions, so that all unconsolidated receipts and expenditures of all public institutions that are financed from the budget of Montenegro, and that the Government, when adopting a decree on organizational changes of consumer units, also determines the competences related to the preparation of annual financial reports.
"In relation to the Conclusion of the Parliament of Montenegro regarding the consideration of the Draft Law on the final account of the budget of Montenegro for 2022 and the Report on the revision of the Draft Law on the final account of the budget of Montenegro for 2022, the State Audit Institution, based on the findings determined by the audit of the Proposal of the Law on the Final Account of the Budget of Montenegro for 2023 determined that 30% of the recommendations given in the Report on the revision of the Bill on the Final Account of the Budget of Montenegro for 2022 have been implemented, 8% partially implemented, 56% not implemented, 4% of recommendations not applicable, while the status of 2% of the recommendations has not been determined," stated the SAI report.
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