Dr. Pejović Presented SAI Activity Report for 2020 to the Members of the Finance Committee

15 June 2021.
Dr. Pejović Presented SAI Activity Report for 2020 to the Members of the Finance Committee

During 2020, the State Audit Institution identified misstatements in financial statements of the audited entities in the amount of 376 billion dinars, as well as irregularities in operations in the amount of 130 billion dinars, said Dr. Dusko Pejovic, SAI President and Auditor General, at today's session of the Committee on Finance, Republic Budget and Control of Public Funds Spending of the National Assembly.

At the session of the Committee held outside the seat of the National Assembly in Arandjelovac, over the course of presentation of the SAI Activity Report for 2020, Dr. Pejović emphasized that during 2020, SAI produced 254 audit reports, as well as 235 post-audit reports.

Regarding financial management and control, we found that 95 out of 173 entities had shortcomings in the system of internal controls, i.e. 55% of entities, Dr. Pejović said and added that internal audit was not established appropriately in 53% of entities.

After the discussion, the Committee agreed upon the Proposal of Conclusion regarding deliberation of the SAI Activity Report for 2020, and sent it to the National Assembly for deliberation and adoption.

At the Committee meeting, Dr. Pejović also presented the Report on complianceaudit of the Municipality of Arandjelovac for 2017 in the part related to the assuming obligations above the approved appropriations, implementation of public procurement procedures and expenditures for employees, as well as audit reports of entities wherein audits were conducted by SAI, which are located in the territory of the Municipality of Arandjelovac - Report on compliance audit of the Public Utility Company Bukulja, Arandjelovac for 2018, in the part relating to the calculation and payment of salaries, wages and other personal expenses, public procurement and receivables; Report on compliance audit ofthe Special Hospital for Rehabilitation "Bukovicka Banja" Arandjelovac, in part relating to the increase of salaries of employees from January 1 to December 31, 2019 and public procurement in the period from January 1, 2018 to December 31, 2019 and the Report on financial statements audit of the Health Center Arandjelovac for 2019.

During the session of the Committee, a session of the Subcommittee for Reviewing the SAI Audit Reports was held, wherein the sectoral reports of the State Audit Institution were deliberated - Sector No. 2 and Sector No. 4. Reports were delivered by Supreme State Auditors Stojanka Milovanovic and Dragan Golubovic. After deliberating the reports, the Committee accepted the mentioned sectoral reports, upon the proposal of the Subcommittee, and also agreed that the proposals of conclusions on the deliberation of those reports be included at one of the next meetings of the Committee.

The Chairperson of the Committee, Dr. Aleksandra Tomić, pointed out that by holding the Board sessions with such an agenda, the obligations of the Committed according to the Government's Public Financial Management Reform Program were fulfilled - that the Committee considers SAI reports of individual users of public funds.

The President of the Municipality of Arandjelovac, Bojan Radović, pointed out that this municipality has been successfully cooperating with the SAI for years, whose recommendations and measures contribute to the successful work and operation of local self-governments. He stated that the municipality is in the final stage of introduction of financial management and control system, which will contribute to raising awareness of employees and citizens about the importance of controlling how public funds are spent.

Representatives of the Organization "Transparency Serbia", Nemanja Nenadić and Miloš Đorđević, also attended the Committee sessions.

The session of the Committee held outside the seat of the National Assembly, was organized within the Project "Strengthening Parliamentary Democracy and Inclusive Political Dialogue", which is being implemented by UNDP with the support of Switzerland.