Dr. Pejović: Strengthening Internal Controls Contributes to Better Business

15 September 2021.
Dr. Pejović: Strengthening Internal Controls Contributes to Better Business

At the session of the Committee on Finance, Republic Budget and Public Expenditure Control, held outside the seat of the National Assembly in Vrnjačka Banja, Auditor-General Dr. Duško Pejović presented the Report on the Audit of Consolidated Financial Statements of the Final Account of the Budget of the Municipality of Vrnjačka Banja for 2019. He informed the present members of the Committee and others that a qualified opinion was issued on the mentioned reports. The report provides 28 recommendations regarding detected errors and irregularities, of which 14 are the first priority recommendations, nine recommendations are the second priority and five recommendations are the third priority recommendations. The President of the Municipality of Vrnjačka Banja submitted a Response Report in time, in which he stated the measures taken by the Municipality in order to eliminate the stated errors and irregularities. As the relevant evidence was submitted with the response report, it was assessed as fair and authentic.

The Auditor General, Dr. Pejović, pointed out that weaknesses were noticed in the system of internal controls and regarding the inventory of assets and liabilities of the municipality. The Municipality of Vrnjačka Banja can be an example of good practice, because in the audit process it eliminated some of the identified irregularities and took appropriate measures in order to improve the efficiency of internal controls.

In the continuation of the session, the members of the Committee were presented with the effects of two performance auditsthat were performed in 2017. Dr. Pejović emphasized that the audit effectsrepresent the benefits that the society receives from these audits and by eliminating identified inappropriateness. Through these audits, the Institution points out systemic problems and obliges the auditees to eliminate them, through the recommendations it provides to them. The effects of performance audits on the topic: "Efficiency and Economy of Application of the Negotiated Procedure without Publishing a Call for Bids" and " Justification of Application of Accelerated Service Periods for Retirement for Certain Work Positions, and/or Activities" were presented by state auditors Goran Cabarkapa and Natalija Pausic.

In the further course of the session, the Auditor-General, Dr. Duško Pejović, presented to the members of the Committee recommendations for changes in regulations for public enterprises, namely: the Law on the Budget of the Republic of Serbia; Law on Termination of the Law on Temporary Regulation of Bases for Calculation and Payment of Salaries, ie Wages and Other Permanent Income with Users of Public Funds; Law on Fees for the Use of Public Goods; Law on Enforcement and Security; and the Law on the Procedure for Registration in the Real Estate and Competent Cadastre.

The President of the Committee, Dr. Aleksandra Tomić, emphasized that by holding the sessions of the Committee with such an agenda, the obligations of the Committee provided by the Government's Public Financial Management Reform Program are being fulfilled.

The President of the Municipality of Vrnjačka Banja, Boban Djurović, pointed out the great professionalism in the work of the Institution and pointed out the activities of this local self-government in eliminating irregularities in the past period. He pointed out that the external audit contributes to a better quality of work in the field of public finances, because the competencies of all those who participate in local self-government in performing such work are strengthened.

The sessions of the Committee were also attended by the Vice President of the Institution Dr. Bojana Mitrovic and members of the Council of the Institution Nevenka Bojanic, Ljiljana Dimitrijevic and Marijana Simovic, representatives of the Municipality of Vrnjacka Banja, representatives of the Municipal Assembly of Vrnjacka Banja, and a representative of Transparency Serbia.