State Audit Institution Presented its 1000th Audit Report

19 October 2018.
State Audit Institution Presented its 1000th Audit Report

State Audit Institution presented its 1000th audit report on 19th October 2018. This jubilee report pertains to consolidated financial statement and compliance audit report of the City of Užice for 2017.

At the press conference on the occasion of publication of the 1000th audit report, SAI President and Auditor General, Dr. Duško Pejović, emphasized that during 11 years since the reestablishment, SAI issued total of 10,209 recommendations.

"When we take a look at the structure of the opinions we issued in the past 1000 reports, the majority of opinions are qualified opinions - around 82% in financial statement audits, and/or around 80% in compliance audits. Taking into account percentage of the issued opinions, the positive opinions in financial statements amount to 14%, while negative opinions in compliance audits amount to 10%", Dr. Pejović highlighted.

He added that SAI has filed 229 criminal charges, 571 economic offense charges. 1,868 misdemeanor charges, 70 misdemeanor charges to the Republic Commission for Protection of Rights in Public Procurement Procedures, as well as 134 pieces of information to the Prosecution offices.

"Regarding benefits and effects in the past SAI work, over the course of work on the past 1000 reports, the Institution highlighted the importance of managerial accountability in the public sector. We pointed to the need and significance of establishing internal audit in all public sector auditees. We highlighted the issue of regular management of public assets and public property. We also pointed to all irregularities in public procurements, calculation and payment of salaries, along with assuming obligations above appropriations, payments without legal basis and without valid documentation", Dr. Pejović said.

He added that, over the course of audits conducted in 2017, SAI contributed to decrease of expenses and expenditures, and increase of income at least in the amount of 684.46 million dinars.

According to him, based on audits conducted in 2017, SAI submitted to competent authorities recommendations for amendments or changes to regulations, namely 15 laws, four Government decrees, six rulebooks and one decision.

"As of next year, SAI will plan combined audits, based on risk assessment, and will also conduct stand-alone financial statement audits, compliance audits and performance audits. "The goal is to achieve, according to the budget calendar, that the financial statement audit becomes part of the final statement of account of each budget beneficiary which was audited, which has not been the case so far. Regarding compliance audits, we will conduct such audits according to risk assessment for the "riskiest topics", while performance audits will be conducted for systemic problems at the state and local levels", Dr. Pejović highlighted.

"I encourage all stakeholders to contact us regarding proposal of topics, for professional control of public finances is our job, while the right to know how public money is spent is the right of all citizens", Auditor-General said.

He announced that SAI plans to have 12 performance audit teams as of next year, and/or to conduct 12 performance audits, which is a six fold increase compared to two performance audits from the previous audit programs.

"By increasing the number of performance audits, capacities for reviewing systemic problems are increased. That is an adequate manner in order to contribute to beneficial changes, adoption of new laws, higher degree of responsibility, implementation of laws and bylaws, and to monitoring effectiveness of their implementation", Dr. Pejović concluded.

Auditor-General announced that SAI will open data contained in the audit reports published by the Institution in a machine-readable formats, with exception of confidential and private data.