10.02.2021

ŽEPČE, PRIJEDOR, TRNOVO AND VUKOSAVLJE INTRODUCING OBLIGATORY CONSIDERATION OF AUDIT REPORTS

Local parliaments of Municipality of Žepče, City of Prijedor and Municipality of Trnovo shall, this year, consider the reports of the financial audits shat shall, within the annual plan for 41 units of local self-governance, be carried out by the FBiH Audit Office and the Main Audit Service in Republika Srpska. These local units are the first four units that have positively responded to the initiative of the Centers for Civic Initiatives (CCI) and incorporated the consideration of reports in annual work plans.

Through their reports, every year auditors warn of numerous irregularities they observe in local communities, proposing concrete recommendations for their removal. However, local communities do not have stipulated obligation of consideration of reports, and reactions and further acting per recommendations most often do not happen. As a consequence, the percentage of implemented recommendations is low.

Namely, in the ten-year period, on local level, less than 45% of 1647 auditor recommendations in the FBiH and less than 33,5% of analyzes 1550 recommendations in RS were implemented. Also, the CCI analyses show that 97% of municipalities in the RS and not a single one in the FBiH did not receive both „positive opinions“ by the auditors, which is the most critical dana for the observed 10 years. 

The fact that growing number of local parliaments in both entities do not consider audit reports at all is of additional concern. Also, there are no monitoring of implementation of recommendations and discussions on alarming data, as well as more responsible approach to the audit process. 

In line, the CCI pointed out the need for a more serious approach of local parliaments in consideration of audit reports and sent the initiative by which they invite local parliaments to incorporate consideration of audit reports in their work plans. 

Consideration of audit reports and monitoring of recommendation implementation by local parliaments would, in the end, impact the higher responsibility of institutions to implement delivered recommendations and lead towards more transparent, accountable and proper expenditure of public funds. Also, we reiterate that audit reports are the means that should work in service of improvement of efficiency and accountability in public sector, but only with adequate monitoring and control by the legislative authorities can true results and effects be accomplished. 

Project “More Efficient Public Audit for Less Corruption in Bosnia and Herzegovina” is implemented by the Centers for Civic Initiatives (CCI) financed by Sweden. The Project aims to contribute to a more responsible spending of budget funds and reduction of corruption in public institutions in BiH.