15.07.2020

AUDITORS FIND IRREGULARITIES IN KALESIJA MUNICIPALITY

 2 000 KM for business travels; even traffic fines paid from the municipal budget  

The Audit Office of the Institutions of the Federation of BiH for the second time published a report on financial performance of Kalesija Municipality observing a range of irregularities, and therefore issued a qualified opinion.

Irregularities have been established in the allocation of KM 150 000 to sports associations and in the allocation of KM 48 100 to associations, without measurable criteria. The audit found that public procurement planning lacked a systematic and rational approach and penalties were not calculated in the case of vendors’ non-compliance with contractual deadlines.  

Moreover, the auditors could not establish justification for the incurred expenditure for an international business travel when the employee received payment for food costs etc., in addition to per diem and other travel expenses related mainly to the consumption of food and drink, which amounted up to KM 2000 per one business travel. Also, a traffic fine in amount of KM 850 was recognized and paid for out of the municipal budget as a business travel expense, for which there was no basis and which points to the fact that the public funds were not used for the purpose of business travel.

According to the Law on Audit (article 16), Kalesija Municipality is required to send response to the FBiH Audit Office and Ministry of Finance within 60 days from the day of receipt of the audit report specifying the actions taken to overcome the weaknesses, irregularities and offences identified in the audit report. 

In respect of this, the Centers for Civic Initiatives (CCI) call on municipal departments and municipal council of Kalesija Municipality to present their actions taken to remove the irregularities identified in the audit reports in line with the Law on Audit.

In the coming period, the CCI will monitor audit reports that the FBiH Audit Office will issue for other municipalities and will point to legal requirements of the audited institutions to remove the irregularities observed.

The Project “More Effective Public Audit for Less Corruption in Bosnia and Herzegovina” is implemented by the Centres for Civic Initiative with financial support of Sweden. The project aims to contribute to a more responsible expenditure of public funds to reduce corruption in the public institutions in BiH.