At its meeting held today, the Committee considered the Annual Report on Performed Audits and Activities of the State Audit Institution of Montenegro for the period October 2014 - October 2015, in part relating to: 2014 Report on Assessment of Implementation of Fiscal Responsibility Criteria, reports on individual audits performed for the said period, as well as other activities of the State Audit Institution.

The Committee noted that, in accordance with the Law on Budget and Fiscal Responsibility, assessment of implementation of fiscal responsibility criteria was being submitted to the Parliament of Montenegro for the first time as an integral part of the Annual Report of the State Audit Institution. It was pointed out that during the drafting of the said Report, the State Audit Institution had had problems in methodology during determination of four static and two dynamic indicators for assessment of fiscal responsibility criteria, and that it determined the said indicators with the help of experts. Out of of six analysed indicators, one indicator relating to “primary cash sufficit” did not meet the prescribed criterion, nor did it meet requirements prescribed for ratio plan/execution in 2014, and ratio execution in 2013/execution in 2014.

It was noted that the State Audit Institution, in the fourth part of the Annual Report, provided excerpts from 20 audits showing the most important findings, recommendations, and measures for eliminating irregularities in business operations of subjects of the audits, included in the reporting period. In individual audits performed, a total of 468 recommendations and 67 opinions (23 positive, 29 conditional, and 15 negative) were given. Therefore, a negative opinion to the financial audit and the audit of regularities were given to the Municipality of Budva and Public Institution National Parks, then a negative opinion to the financial audit was given to the Music Centre, while the Register of Contracts on Concessions was given a negative opinion to the compliance audit.

The Committee positively assessed the activities of the State Audit Institution relating to the increased number of audits of success in comparison to the previous year, strengthening of audit capacities for conducting audits, intensification of cooperation with the state authorities, international institutions, and civil sector, etc.

It was agreed that, in continuation of the meeting which is scheduled for Tuesday 24. November 2015, the Committee will consider the Proposal for the Law on 2014 Final Budget Statement, with the Report of the State Audit Institution on Audit of the Proposal for he Law on 2014 Final Budget Statement.