Audit of Public Finance

29 December 2011.
Audit of Public Finance
Audit Report on Draft Law on Annual Statement of Accounts for 2010 Budget was presented to the National Assembly and citizens of Serbia. In 2011, the State Audit Institution increased the audit coverage by 300%, relative to the previous year.

Today, the State Audit Institution presented to the National Assembly and citizens of Serbia Audit Report on the Draft Law on Annual Statement of Accounts for 2010 Budget of the Republic of Serbia, as well as other reports in the area of auditing of budget and budget funds, public enterprises, local authorities' budgets, mandatory social insurance organizations and the National Bank of Serbia, in part relating to the usage of budget funds for 2010.
This year, the State Audit Institution increased the audit coverage by 300%, relative to previous year. The number of 11 audited entities last year was increased to 47 this year, Radoslav Sretenovic, President of the State Audit Institution, emphasized.
When it comes to inventory of non-financial, financial assets and liabilities, out of total of 47 audited entities, inventory of assets, liabilities and receivables were not done in the total amount of 517,841,422 thousand dinars.
During the audit process, it was determined that the book records did not include, and the inventory also did not include 597 apartments, garage with 265 parking lots, 43 business premises, 1,989 acres of land and other real estate, Sretenovic said.
With ten audited entities, salaries and compensations to employees were paid in excessive amounts totaling 5,377,422 thousand dinars, in violation of the Law on Salaries in Government Entities and Public Services.
Through compliance audit and implementation of the Public Procurement Law it was determined that goods, services and works were procured contrary to the Law, totaling 85,894,485 thousand dinars.
Audit revealed that taxes and contributions were not paid in the amount of 1,643,569 thousand dinars, namely with four audited entities (public enterprises) in the amount of 1,411,592 thousand dinars and with one audited entity (local government) in the amount of 231,977 thousand dinars, Sretenovic said. He added that value added tax was not calculated and paid with two audited entities (public enterprises), totaling 4,660,548 thousand dinars.
State Audit Institution issued 466 recommendations to the audited entities.
During the year, in compliance with the competences of the Institution and due to reasonable doubt that the Law on the Budget System, Law on Public Procurements and Accounting and Auditing Law were violated, 18 misdemeanor charges were filed against 32 responsible persons. In addition, five charges for commercial offenses were filed against nine responsible persons, due to failure to implement accounting standards from the Accounting and Auditing Law and due to failure to follow the Payment Operations Law and Decree on Manner and Control of Calculating the Payment of Salaries on Public Enterprises.
In the beginning of the next year, we will file 43 charges, as well as 6 charges for commercial offenses. Based on the information available to us presently, all charges were processed and information was submitted to the court, Sretenovic emphasized. According to him, due to reasonable doubts that criminal offense was made from the Law on Criminal Procedure two charges were filed against responsible persons in legal entities due to unconscientious work in commercial affairs, and one charge was filed against multiple persons due to misuse of position and acquiring benefits to other persons.

Acquiring of evidence is underway and certain checks are being implemented, in order to file additional criminal charges, Sretenovic said.
State Audit Institution issued 47 opinions during the audit process. Unqualified opinion was issued for two audited entities, qualified opinion for 40 entities, while no opinion was issued for 5 audited entities.
Entities were given 45 to 90-days deadline for removal of irregularities, depending on the size of the entity and time needed for submitting a follow up opinion, Sretenovic said.


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