The 15th session of Committee on Finance and Budget of Parliamentary Assembly’s HoR of BiH (PSBIH) was held on Tuesday, 27 October 2015. In this session, the Collective Opinion regarding the audit reports on financial business management of the institutions in BiH for 2014 was adopted that will, with a proposal of conclusions, be addressed to the House of Representatives of PSBiH for voting.
In the adopted conclusions from the Collective Opinion, the Committee suggests to the Parliamentary Assembly’s HoR of BiH to accept the 73 audit reports on financial business management of the institutions in BiH for 2014. The 66 audit reports that were evaluated with a “qualified opinion” and “qualified opinion with emphasis of matter” were suggested to be accepted, along with the 7 audit reports in which the financial business management was evaluated with an audit “reserved opinion” , “reserved opinion with emphasis of matter” and “qualified opinion with emphasis of matter”. The Parliamentary Assembly’s HoR of BiH was suggested to oblige the management of 36 institutions in BiH that had their financial business management in 2014 evaluated with a “reserved opinion with emphasis of matter”, to take all the necessary measures within the authority of every individual institution, in order to avoid further consequences of problems in business management to which the audit indicated in emphasising subjects in their qualified opinion, and especially so that the material value of such audit results would not grow into future qualifications in the following audit reports.
The House was suggested to adopt the recommended conclusions for 7 institutions in BiH that are included in the individual opinions of the Committee for every institution in BiH and that had their audit reports for business management in 2014 analysed in greater detail by the Committee. The Parliamentary Assembly’s HoR of BiH was also suggested to require the Council of Ministers of BiH to, no later than by the end of February 2016, consider the audit reports for 2014 with an emphasis on 7 BiH institutions that had their financial business management for 2014 evaluated by the auditors with a “reserved opinion”, “reserved opinion with emphasis of matter” and to draft a whole information regarding that subject and deliver it to the Parliamentary Assembly of BiH no later than 30 days from the review date. As is clarified in the conclusion, the information will contain minimally the activity programmes and measures to be undertaken in 7 institutions in BiH with the aim of overcoming the difficulties in business management and preventive action in order to prevent the same difficulties from repeating in the following reports. Also, the information should contain the opinion of the Council of Ministers of BiH on system measures suggested by the Auditing Office of Institutions in BiH to removethe causes of repeating certain audit reports at a system level.
In the suggested conclusion, it is stated that the information should contain the opinion of the Council of Ministers of BiH in a programme form, with indication of all those responsible and the deadlines for performing activities aiming towards strengthening the control environment, enacting new provisions or improving the existing ones, as well as the activities and measures aiming towards additional strengthening of surveillance and control procedures. Following the discussion on Collective Opinion, the Committee also adopted the conclusion to hold a meeting with representatives of the BiH institutions that had the financial business management reports for 2014 evaluated with an audit “reserved opinion” and “reserved opinion with emphasis of matter”, in order for the members of the Committee to introduce themselves with whether the recommendations of the Auditing Office in BiH that were stated in the reports are being implemented.
Also, it was concluded that it is necessary to hold a meeting with the new management of the Auditing Office of Institutions in BiH that is currently being elected, in order to achieve an agreement on forms of cooperation of the Committee with the Auditing Office of the Institutions in BiH.
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