Certain Institutions Have Never Been Audited Due to Lack of Office on Audit Capacities

The 8^th session of Parliamentary Commission responsible for Audit of Parliamentary Assembly of FBiH was held on Tuesday, April 5, 2016.       

In the 8^th session of this Commission the Plans for Activities of the Commission and the Office for Audit of Institutions in FBiH were discussed. As a part of this item in the Agenda there was discussion on the requirement for auditing of a greater number of institutions, but the Office on Audit, due to lack of capacities, was unable to audit all the necessary institutions in FBiH and has the legal obligation to audit 59 of them. Some of the institutions have never been audited, such as Detentional and Correctional Institutions.     

The main Auditor of the Office emphasized that there are over 1,000 institutions at all levels. With these capacities, the Office cannot achieve to audit all institutions but it is no problem as much as the low percentage of implementation of the audit recommendation. Also, some recommendations cannot be implemented due to the lack of harmonization of laws.

It was decided that the Commission will determine a deadline for the audited subjects to reply according to the provided recommendations, and the Commission will hold an extraordinary session. The dates determined to hold public hearings for public firms, institutes and agencies for the budget year 2014 are May 9 and 5 or 10 and 11, 2016. IThe final session of the Commission related to hearings is planned for the end of the month.

It was decided that by the first half of June reports on audit of effect will be considered. Since the reports on the audit of effect have not been considered in the Parliamentary procedure since 2008, it was arranged to consider the reports on audit of effect published from 2012 to 2015 and the reports are as follows:

For 2012: “Managing Youth Employment Program”;

For 2013: “Prevention of Floods in the Federation of BiH” and “Support for Development of Small and Medium Entrepreneurship in FBiH”;  

For 2014: “Public Funds Expenditure from the Budget of FBiH for Service Agreements”, “Support to Development of Tourism in FBiH”, “Insufficient Reforestation in FBiH as a Consequence of Inefficient Forest Management System”, “Efficiency of Public Funds Gathering in the Procedure of Enforced Payment Based on Selling the Confiscated Property in FBiH”;

In 2015: “Improving the Energy Efficiency in FBiH Institutions”, “Certain Measures in the Federal Waste Management Plan Not Implemented during Stated Deadlines” and “Managing FBiH Budget Grants According to Results”.

The audit results of the Youth Employment Program in FBiH revealed incongruences in the Program in strategic decisions and a significant number of mistakes in developing and managing the Program as well as the fact that the Program did not aid the most affected categories of unemployed youth. 

As one of the key recommendations, it was emphasized that the Program development should be preceded by a systematic and detailed planning process, based on the labor market data and analysis of the previous experience in implementing similar programs. Also, it was emphasized that it is required to improve the cooperation with key partners such as employers and youth associations in order to acquire complete information on youth. The complete audit report is available on this link.