The State Audit Institution (SAI) issued a qualified opinion on the financial audit and an adverse opinion on the audit of the regularity of the Draft Law on the Final Accounts of the Budget of Montenegro for 2024.
The SAI conducted a financial audit and regularity audit of the Draft Law on the Final Accounts of the Budget of Montenegro for 2024.
They say that the audit identified errors and irregularities that have a material and pervasive effect on the financial statements.
The opinion was adopted by the Collegium consisting of: Dr. Milan Dabović - member of the Senate and head of the Collegium and Siniša Čađenović - member of the Senate and member of the Collegium.
"According to the Draft Law, budget revenues amounted to €2.755.717.266,87, and budget expenditures to €3.003.265.592,95, which means that a cash deficit of €247.548.326,08 was reported. The audit determined that it was necessary to increase revenues by €3,2 million and reduce expenditures by €38,8 million, thus correcting the deficit to €205.526.083,02. The modified cash deficit after corrections amounts to €216.813.510,52," the statement reads.
The SAI points out that the Ministry of Finance has not fully harmonized its records and financial reports with the law, and that the treasury general ledger does not contain all the necessary data on assets, liabilities and cash.
They added that discrepancies were observed between the reports of spending units and data from the Treasury's general ledger.
As part of the regularity audit, the SAI expressed an adverse opinion due to irregularities in the work of the Ministry of Finance and other spending units.
"The Ministry of Finance has not fully harmonized the maintenance of the treasury general ledger with the applicable Rulebook on the Unified Classification of Accounts for the Budget of Montenegro and Municipal Budgets, and some spending units contracted liabilities above the planned funds. It was determined that due liabilities were not regularly settled, nor were de-booked liabilities collected through forced execution," the SAI writes.
The audit found that even in 2025, the final tax invoice for 2024 was not submitted within the legally prescribed deadline, and that the accounting balance of the tax debt does not reflect the actual balance of liabilities and receivables.
"It was also determined that the account for the development of less developed local self-government units was not consolidated in the treasury's general ledger in a timely manner, and that part of the funds remained off-balance sheet. The SAI also pointed out the need to establish a unified tax administration information system, introduce internal controls in the treasury's work, and establish criteria for leasing premises to political entities."
The State Audit Institution, based on the findings determined by the audit of the Draft Law on the Final Accounts of the Budget of Montenegro for 2024, determined that 18 percent of the recommendations given in the Audit Report of the Draft Law on the Final Accounts of the Budget of Montenegro for 2023 have been implemented, 14 percent have been partially implemented, 66 percent have not been implemented, while two percent of the recommendations are not applicable.
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