State Audit Institution Presented Audit Reports regarding Execution of Audit Program for 2013
State Audit Institution presented today to the members of the Committee for Finance, Republic Budget and Control of Public Funds' Spending of the National Assembly, and to the citizens of Serbia, the Report on Audit of the Draft Law on Final Statement of Accounts of the Budget of the Republic of Serbia for 2013, along with reports on financial statements audit and compliance audit of ministries, budget funds, public enterprises, cities and municipalities, mandatory social insurance organizations and the National Bank of Serbia for 2012.
President of the State Audit Institution, Mr. Radoslav Sretenovic, emphasized that audits conducted this year included public expenditures and expenses totaling 2,684 billion dinars.
Auditor-General spoke on irregularities regarding audit of 56 audited entities, and/or regarding financial statements audit report and compliance audit reports.
According to Mr. Sretenović, inventory of assets and liabilities was not prepared by audited entities, amounting to 18.5 billion dinars, out of which non-financial assets pertain to 12 billion dinars, financial assets pertain to 1.9 billion dinars and liabilities include 4.6 billion dinars. Pension and Disability Insurance (PDI) Fund did not carry inventory of assets and liabilities, amounting to 57.9 billion dinars in the manner pursuant to internal enactments of the Fund.
State auditors determined that audited entities implemented expenditures and expenses contrary to the provisions of the Budget System Law, and that the most significant irregularities amounted to 13.1 billion dinars. Hence, local self-governments units assumed obligations above appropriations approved by the budget amounting to 3.6 billion dinars.
In part of expenditures and expenses, it is interesting to note that the PDI Funds and Clinical Center of Vojvodina collected income amounting to 416.5 million dinars, contrary to law, carried such income as own income and used them for payment of bonuses.
Mr. Sretenovic added that audited entities realized expenses on salaries, bonuses and compensation, which were not in compliance with the regulations, and that the most significant irregularity amounted to 9.5 billion dinars. In this part, four public enterprises did not properly execute salary expenses, amounting to 1.1 billion dinars.
Irregularities, pertaining to carrying data in the balance sheet, were determined within the Final Statement of Accounts of the Budget of the Republic of Serbia for 2012, totaling 1,684.6 billion dinars, out of which 1,673.1 billion dinars pertain to non-financial assets of the Ministry of Defense, which were not carried in the Balance Sheet of the Republic, 2.4 billion dinars pertain to monetary assets and 9.1 billion dinars pertain to receivables not carried in balance sheet.
State auditors have also determined that 56 audited entities implemented procurement of goods, services and works, contrary to the Law on Public Procurement, totaling 31.5 billion dinars.
Public debt balance of the Republic of Serbia, as of 31st December 2012, according to the audit findings, amounts to 18,262.46 million euros, while according to the Public Debt Administration, balance of public debt is 17,673.87 million Euros, which is understated by 588.59 million Euros. The difference pertains to obligations of the Republic of Serbia comprising debt of the general government, which, according to the data of the Public Debt Administration, were not included into the balance of the public debt of the Republic of Serbia. Due to failure to draw on credit funds, in compliance with the dynamics set by loan agreements, in 2012 total of 584.1 million dinars were paid on commission expenses for failure to draw on those funds.
Regarding audit effects, Auditor-General stated that the Institution, during the audit process in respect of four audited entities, delivered requests to beneficiaries to refunds assets into the Budget of the Republic, totaling 12.4 million dinars. Until the day of publication of this report, refund was made totaling 8.6 million dinars. Also, State Audit Institution issues total of 1,081 recommendations to audited entities this year, for removal of irregularities and improvement of compliance of operations with laws and regulations, and also launched numerous initiatives for amendment of regulations.
Mr. Sretenovic reiterated that so far the State Audit Institution has filed total of 29 charges against 43 responsible persons, pursuant to reports issued in 2013. Out of that number, 24 charges pertain to requests for initiating misdemeanor proceedings, 1 charge for economic offense and 4 criminal charges.
Legal teams are currently reviewing and analyzing reports with respect to filing charges to competent judiciaries. "In the days to come, it is expected that names of responsible persons, against which the Institution will file charges, become available to the public", Mr. Sretenovic said.