State Audit Institution Presented Sectoral Reports on Implemented Audits to the Finance Committee

19 July 2018.
State Audit Institution Presented Sectoral Reports on Implemented Audits to the Finance Committee

Weaknesses in functioning of internal control system, failure to establish internal audit function, irregularities regarding public procurements, overpaid salaries compared to the prescribed levels, are some of the most common irregularities detected in auditees, Dr Duško Pejović said, Auditor General and President of the State Audit Institution.

On the 52nd Session of the Committee for Finance, Republic Budget and Control of Public Funds' Spending, held in Subotica, he emphasized that the City of Subotica may serve as a good practice example for other cities, regarding removal of irregularities.

During the implementation of the audit of final statement of accounts and compliance audit of City of Subotica for 2015, auditors found that salaries for 386 employees were incorrectly calculated, out of total number of 389. For that reason, 123.5 million dinars were overpaid from the City's budget, Dr Pejović highlighted. Auditor General stated that, after completion of the audit, all salary payments were put within the legal framework.

Regarding audits conducted by SAI during 2017, Dr Pejović highlighted that out of total 2,518 recommendations issued by the Institution, 1,556 recommendations were implemented,and/or 61.8%. Total of 577 recommendations are currently being implemented, 259 recommendations are being reviewed within audits of response to the audit report, and only 126 recommendations or 5% can be labeled as not implemented. We expect that more than 70% of recommendations will be implemented, Mr. Pejović said.

As the most significant effects, based on the recommendations of the Institution, Auditor-General emphasized amendments and addenda to laws and rulebooks, such as amendments or addenda to certain provisions of the Budget System Law, Law on Personal Income Tax, Law on Public Property.

Dr Pejović highlighted that the Institution will continue to submit fair, objective and reliable reports to the National Assembly and stakeholders, while observing the principle of independence.

During the session, Subcommittee for Reviewing Audit Reports of the State Audit Institution held its Third Session, where SAI's sectoral reports for the previous year were discussed, presented by the Supreme State Auditors.After the discussion, members of the Subcommittee submitted to the Committee a Report on reviewing audit reports of the State Audit Institution and on reviewing sectoral reports of the State Audit Institution, along with proposal of conclusions. Over the course of work, members of the Committee accepted the Report of the Subcommittee and adopted conclusions regarding reviewing sectoral reports of the State Audit Institution.

Dr Aleksandra Tomić, Chairperson of the Committee for Finance, Republic Budget and Control of Public Funds' Spending, highlighted that in accordance with the Public Financial Management Reform Program 2016-2020, sessions are organized regarding the work of the State Audit Institution in a transparent manner and outside of Belgrade.

Bogdan Laban, Mayor of Subotica, said that organizing Session of the Committee for Finance, Republic Budget and Control of Public Funds' Spending in Subotica reflects the willingness of public officials to make their work transparent to all citizens. In the last two years, the City of Subotica has been a good example of public financial management, Mr. Laban concluded.

Presence of the representatives of the State Audit Institution at the session outside of the headquarters of the Committee in Subotica, was supported by the project implemented by the State Audit institution and United Nations Development Program (UNDP), and financed by the Swiss Agency for Development and Cooperation (SDC).