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REPUBLIKA E KOSOVËS/REPUBLIKA KOSOVA/ REPUBLIC OF KOSOVA
Syra e Auditorit Gjeneral/ Kancelarija Generalnog Revisora/ Office of the Auditor General
Doc. No. 21.6.1-2007-08
AUDIT REPORT ON THE
FINANCIAL STATEMENTS OF
THE MINISTRY OF ENVIRONMENT AND
SPATIAL PLANNING
FOR THE YEAR ENDED
31 DECEMBER 2007
Prishtina, June 2008
1
Table of Contents
I. Executive Summary
II. Introduction
III. Status of Prior Years Audit Recommendations
IV. Audit Scope
V. Audit Opinion
VI. Audit Approach
VII. Key Audit Findings and Recommendations
1. Financial Reporting
2. Revenues
3. Expenditures and Procurement
4. Asset Management
5. Internal Control and Internal Audit
Anex I : Financial Statement of MESP for the year ended 31 December 2007
Annex II : The MESP Comments and OAG’s Reply
2
List of Abbreviations
AG Auditor General
AI Administrative Instruction
FS Financial Statements
IFAC International Federation of Accountants
IFRS International Financial Reporting Standards
IPSAS International Public Sector Accounting Standards
LPFMA Law No. 2003/2 on Public Financial Management and
Accountability promulgated by UNMIK Regulation No. 2003/17
MEF Ministry of Economy and Finance
MESP Ministry of Environment and Spatial Planning
OAG Office of the Auditor General
SRSG Special Representative of the Secretary-General
UNMIK United Nations Mission in Kosovo
3
I. Executive Summary
The Office of the Auditor General has performed an audit of the Ministry of Environment
and Spatial Planning (MESP) Financial Statements for the year ended 31 December
2007.
In our opinion, the financial statements do not present a true and fair view of the financial
position of the MESP in all material aspects and the results of its activities for the
respective year in accordance with International Public Sector Accounting Standards on
“Financial Reporting under the Cash Basis of Accounting”.
Our audit was carried out in accordance with International Standards on Auditing issued
by International Public Sector Accounting Standards Board of the International
Federation of Accountants (IFAC) including tests and procedures that we have
considered necessary in order to be able to render an audit opinion on the financial
statements.
Our audit identified the five main audit findings:
1. The Financial Statements (FS) are not in compliance with IPSAS and AI 2007/08
issued by MEF- Annual Reporting of Budgetary Organisations due to a lack of
information for the collection of own revenues;
2. There is a lack of checking invoices with contracts to ensure that the correct price is
charged and that the correct goods are received;
3. Lack of control for the procurement process and non compliance with the Law on
Public Procurement 2003/17;
4. Lack of proper Asset Management as required by AI No. 2005/11 that regulates the
Management and Recording of Government Assets;
5. There is no Internal Audit Unit to review and report on the effectiveness of the
internal control system.
We recommend that management address these key weaknesses to improve the current
level of internal control within the organisation.
II. Introduction
UNMIK Regulation 2002/18, dated 4 October 2002, established the Office of the Auditor
General (OAG) in Kosovo. Section 3.2 of this regulation requires the Auditor General
(AG) to, among other things, conduct an annual regularity audit of all institutions in
Kosovo that are either publicly owned or receive funding from, or provide dividends or
other non tax revenue to, the Kosovo Consolidated Budget. Section 1 of this regulation
defines a regularity audit as an attestation of financial accountability involving
examination and evaluation of financial statements and other financial records and the
expression of an opinion on:
4
• Whether the financial statements give a true and fair view of the accounts and
financial affairs for the audit period;
• Whether the financial records, systems and transactions comply with applicable
statutes and regulations;
• The appropriateness of internal control and internal audit functions;
• The probity and propriety of administrative decisions taken within the audited
institution or entity; and
• All matters arising from or relating to the audit.
In March 2003, the Kosovo Assembly approved Law No. 2003/2 “Law on Public
Financial Management and Accountability” which was formally promulgated by the
Special Representative of the Secretary-General (SRSG) on 12 May 2003 in UNMIK
Regulation 2003/17. Section 42 of the Law states that the AG will prepare and submit to
the Assembly and the SRSG a report on the financial statements of budget organisations
for the previous year providing the AG’s opinion on whether or not the financial
statements give a true and fair view of the finances of such budget organisations.
This report is to be submitted by June 30 following the close of the fiscal year to which
the annual report relates.
III. Status of Prior Years Audit Recommendations
The 2006 audit resulted in 17 recommendations, of which 9 have been implemented.
MESP is in the process of developing appropriate policies and procedures to implement
the balance.
IV. Audit Scope
The OAG conducted an audit of the financial statements of the Ministry of Environment
and Spatial Planning (MESP) for the year ended 31 December 2007.
As an objective MESP has upgrade of legal infrastructure and potential of professional
staff to support sustainable development of Kosovo economy through safeguard of
environment, land, water, and air, productive and non-productive assets under and above
the surface. This is based on UNMIK Regulation No.2001/19 amended with UNMIK
Regulation No. 2002/5 amending Regulation on Executive Branch of Provisional Self
Government Institutions.
The primary objective of this audit is to enable the OAG to express an opinion on
whether the MESP financial statements presented in Annex 1 give a true and fair view of
the revenues collected and expenses paid for the year ended 31 December 2007, and
whether these are prepared in accordance with the International Public Sector Accounting
5
Standard (IPSAS) on “Financial Reporting under the Cash Basis of Accounting”. The
International Public Sector Accounting Standards Board of the International Federation
of Accountants (IFAC) is responsible for issuing IPSAS. The accuracy and completeness
of financial statements and explanatory notes presented in Annex 1 are the responsibility
of MESP Management.
V. Audit Opinion
The audit identified serious deficiencies in MESP internal controls and we concluded that
these controls did not provide reasonable assurance that the internal control system was
functioning adequately. Our substantive testing discovered material misstatements and
errors that have not been corrected in the MESP financial statements.
In several instances, MESP did not comply with applicable laws and regulations which
further adversely affected the accuracy and completeness of the financial statements.
Finally, MESP did not prepare its financial statements in compliance with IPSAS and AI
2007/08-Annual Reporting of Budgetary Organisations.
Therefore, in our opinion the financial statements prepared by MESP do not present
fairly, in all material aspects, the financial position of the MESP as of 31 December 2007,
and the results of its operations for the year then ended in accordance with the IPSAS
“Financial Reporting under the Cash Basis of Accounting.”
VI. Audit Approach
Our audit of the MESP financial statements for the year ending 31 December 2007 was
conducted in accordance with international standards on auditing (ISA) issued by the
International Auditing and Assurance Standards Board. The Board functions as an
international standards setting body under the auspices of IFAC. The ISAs establish the
international framework within which the OAG performs its work and covers matters
such as general principles and responsibilities, risk assessments and responses to assessed
risks, audit evidence, relying on the work of others, and audit conclusions and reporting.
Our audit was planned and performed during the period 17.03.2008 until 29.04.2008. In
order to fulfil our responsibilities, we:
• Reviewed the MESP financial statements against the approved budget for 2007;
• Determined whether the MESP financial statements were prepared in accordance
with IPSAS “Financial Reporting under the Cash Basis of Accounting”;
• Undertook extensive substantive testing of financial transactions;
• Used a combination of judgment and random sampling to select transactions for
testing;
6
• Established materiality levels of 5 percent for uncertainties and 3 percent for
errors as a threshold for assisting in determining the type opinion to render on
the financial statements;
• Relied on a combination of interviews, analytical reviews, document reviews,
and physical verification to assess the validity and propriety of financial
transactions;
• Assessed the independence and quality of work of the MESP Internal Audit unit
to determine if their work could be relied upon for our audit purposes;
Our findings and conclusions are based upon the documentation and other information
and explanations provided to us during the course of our audit work. It is possible that
additional information existed but was not provided to us and, if provided, might have
altered our findings.
With respect to the OAG’s audit opinion on the MESP financial statement, the ISAs set
out specific criteria that govern the type opinion that can be rendered. Audit opinions can
be unqualified, qualified, adverse or a disclaimer of opinion. For example, the OAG may
not be able to express an unqualified opinion when either of the following circumstances
exists and, in the OAG’s judgment, the effect of the matter is or may be material to the
financial statements:
(a) There is a limitation on the scope of the auditor’s work; or
(b) There is a disagreement with management regarding the acceptability of the
accounting policies selected, the method of their application or the adequacy of financial
statement disclosures.
The circumstance described in (a) could lead to a qualified opinion or a disclaimer of
opinion. The circumstances described in (b) could lead to a qualified opinion or an
adverse opinion.
A qualified opinion will generally be expressed when the OAG concludes that an
unqualified opinion cannot be expressed but that the effect of any disagreement with
management, or limitation on scope is not so material and pervasive as to require an
adverse opinion or a disclaimer of opinion.
A disclaimer of opinion will be expressed when the possible effect of a limitation on
scope is so material and pervasive that the OAG has not been able to obtain sufficient
appropriate audit evidence and accordingly is unable to express an opinion on the
financial statements.
An adverse opinion will be expressed when the effect of a disagreement is so material
and pervasive to the financial statements that the OAG concludes that a qualification of
the report is not adequate to disclose the misleading or incomplete nature of the financial
statements.
7
VII. Key Audit Findings and Recommendations
The following are the key audit findings and recommendations resulting from our audit
of MESP financial statements for the year ended 2007.
1. Financial Reporting
Financial statements should be prepared by each independent entity based on its own
accounting records and in such a manner that the statements demonstrate accountability
and transparency in the use of government monies. Their format requires additional
disclosures and explanations in the form of Notes that provides information to users.
Law No. 2003/2 “Public Financial Management and Accountability” regulates the
preparation and reconciliation of financial statements of all budget organisations.
To comply with Law No. 2003/2 requires that:
• The Chief Financial Officer of a budget organisation shall within thirty days after
the conclusion of each fiscal year, provide to the Director of Treasury (i) a copy
of the financial statements (ii) a confirmation that the financial statements are a
true and accurate presentation of the finances and financial transactions for the
year.
• The Director of Treasury shall, within ninety days after the end of each fiscal year
(i) reconcile the financial accounts received with the fiscal accounts and cash
balances and (ii) provide the financial accounts for all budget organisations to the
Auditor General for auditing.
These financial statements should be prepared based on the accounting records that
should be maintained for each budget organisation as defined by Law No. 2003/2 as
follows:
• Receipts of the budget organisation
• The outstanding liabilities of the budget organisation
• The assets of the budget organisation
• Appropriations
• Adjustments to appropriations
• Appropriations that have been made available to the budget organisation for
expenditure by means of allocated funds notices
• The extent to which allocated funds of the budget organisation have been
recorded as committed funds
• Actual expenditures made.
The Department of General Administration has an Accounting unit which is responsible
for financial reporting. In this department all financial transactions are processed using
8
their own accounting software; however we noted that the Financial Statements were
based on the information from the Treasury System, FreeBalance.
Findings
The fact that the MESP did not use their own accounting system to prepare the financial
statements could result in not all financial transactions being recorded accurately and
correctly which can result in incomplete financial information. The MESP did not
perform regular reconciliations to the FreeBalance Treasury system to ensure that all
transactions are processed correctly.
We report that some of the additional information required in the Notes was not prepared
and fully explained; for example the following sections were missing:
- The Budget execution report required by Section 11 was not presented in FS;
- There was no reconciliation between initial and final budget appropriations;
- Revenues collected were not shown in 2007 FS;
- Non-financial assets as required by Section 16- Note 27 of AI 2007/08 were
missing;
- Missing were explanations for the variances which should be included in the notes
for the FS;
The omission of information required for completeness of the MESP financial statements
has resulted in the following situation:
Incorrect information presented in FS;
Incorrect presentation of cash flow statement;
No explanations of variances;
Incomplete and inaccurate information for MESP assets;
Recommendation 1
1.1 Ensure that all accounting records and financial statements are maintained and
prepared in full compliance with the appropriate legal requirements.
1.2 Ensure that there is a monthly reconciliation between MESP accounting information
and the Treasury FreeBalance System.
2. Revenues
During 2007, total value of revenues collected by MESP was €110,013
MESP generates revenues from the following sources:
• Environmental Impact Assessment (EIS);
• Ecological and Environmental License;
• Water License.
Findings
9
The information for MESP own revenues was not presented and disclosed in the
Financial Statements. Also we report that revenues were not recorded by type and
category. Therefore for the audit of revenues collected during 2007 we have relied on
FreeBalance data.
Conclusion
Own revenues totalling €110,013 was omitted from the Financial Statements.
Recommendation 2
2.1 MESP should maintain an up to date register of all revenue collected as required by
the Law No. 2003/2 on Public Financial Management.
2.2 MESP should monthly reconcile all categories of revenue with the Treasury
FreeBalance System.
3. Expenditure and Procurement
The following table shows a comparison of 2007 budget and actual expenditures and
variances:
Description Budget Actual Variance
€ € €
Wages and Salaries 699,840 693,830 -6009
Goods and Services 1,716,784 1,335,797 -380986
Utilities 100,880 100,829 -51
Capital Investment 7,078,956 3,709,166 -3369789
Total 9,596,460 5,839,623 -3756837
Approximately 80% of the variance is a result of under expenditure in the economic
classification - Capital Investment.
MESP officials reported that approximately €2.5 Million of this significant under spend
was attributable to project implementation problems in the village “Hade”.
Procurement
The Law on Public Procurement (PPL) 2003/17 establishes the requirements that shall be
followed for the use of public funds in the procurement activity. The general principles of
the PPL expect cost efficiency, effectiveness, equality and fairness for all procurement
contracts.
10
Findings
In 2007, MESP concluded 59 procurement contracts for €2,572,102 through public
tendering and 45 procurements for €27,388 through procedures for contracts with
minimal value.
We selected a sample of 14 procurement files, €1,251,423 for testing and review. The
results of our work lead us to conclude that procurements were not in full compliance
with The Law on Public Procurement (PPL) 2003/17.
We provide the following examples to support out conclusions (we have full details of
these in our working papers):
In two contracts for €74,145 the price paid for some items exceeded the contract
price while some goods provided were not included in the original contract.
A contract for €19,545 was split into two procurement activities to avoid the
€10000 threshold.
Three contracts did not require suppliers to post performance security as a
guarantee for the execution of works. This is required by section 60 of the PPL
2003/17.
MESP made two advance payments of 20% of the total contract value amounting
to €94,100.
Three contracts where suppliers were paid without evidence of completion of the
work. Our site visits confirmed that these projects were only partially completed.
One economic operator was contractually required to start work in July 2007 and
to complete the work within 85 days. However, the company did not comply with
the contract and was paid an advance payment of €47,700. No penalties were
imposed on the company.
The amount of €3,600 was paid to for monitoring a project which is not due to
begin until 2008.
Conclusion
There are weaknesses in the internal control arrangements for procurement in MESP that
have resulted in contraventions of the Law on Public Procurement 2003/17.
Recommendation 3
3.1 Immediate action should be taken to address the current weaknesses in internal
controls for the procurement processes. These changes should be designed to meet the
requirements of the PPL and minimise the risk of fraud, loss or waste. These
enhancements should include:
11
• Establishment of procedures that will ensure payments are not made to
contractors before the completion of work.
• Supervision of the performance of works in order to ensure full compliance with
the contract terms and every deviation from terms of contract to be sanctioned.
• Strengthened internal controls to ensure that invoices are compared with the
technical specifications.
• Ensuring that no contracts are signed prior to obtaining a performance security in
compliance and accordance with PPL requirements.
4. Asset Management
The Treasury Department issued Administrative Instruction No. 2005/1 regulating the
Management and Recording of Government Assets is based on the Law 2003/2 - Public
Financial Management and Accountability.
To assess compliance with the regulatory framework we interviewed relevant MESP
personnel and reviewed and tested current procedures.
Findings
A list of MESP assets is available at the Treasury, but this data was not included in the
FS. We were given the 2007 inventory list compiled by the relevant commission.
However due to inaccurate individual asset valuations, this list does not reflect the correct
value of the total inventory.
We found that the commission for the inventory has reported to the MESP missing and/or
lost assets, but we did not find any evidence of a formal explanation from the MESP
management for these items.
Conclusion
The absence of a comprehensive asset register increase the exposure to risk of misuse of
public assets and makes it difficult for MESP to effectively manage and control its assets.
By not implementing adequate procedures for the movement and transfer of assets leads
to weak control for confirming the existence of assets and makes impossible for MESP to
safeguard its assets.
Recommendation 4
4.1 MESP should carry out a physical count of assets and include the financial value of
these in a comprehensive asset register.
4.2 The Asset register must be continuously updated to reflect changes in locations and
users of assets.
4.3 MESP management must establish an asset register and immediately compare this to
the Treasury accounting register. Any differences between these two sets of records
must be reconciled.
12
5. Internal Control and Internal Audit
One of the objectives of the audit is to assess the appropriateness of internal control and
the internal audit function within MESP and we have already reported areas that should
be improved. As part of our audit we also assessed the independence and quality of work
of the MESP Internal Audit unit to determine if their work could be relied upon for our
audit purposes.
The system of Internal Control in the public sector is based on the concept that controls
must exist in all activities of the organisation so that objectives are accomplished and the
best use of resources is achieved. Management are responsible for ensuring that internal
controls are effective and provide reasonable assurance. The role of Internal Audit is to
review the effectiveness of the main internal control systems and provide advice and
recommendations on how and where to improve controls.
Findings
During 2007 MESP one internal auditor was employed until 30 November 2007 when the
position was terminated by a decision of the MESP Permanent Secretary.
As we were not provided with any audit reports or the 2007 audit plan we could not place
any reliance on the work performed by internal audit.
Conclusion
Internal Audit is a key component for the proper functioning of the internal control
system which is designed to detect and prevent errors and irregularities. It is therefore
expected that all organisations should have a fully functional and independent Internal
Audit Unit to review, assess and report on the adequacy of the internal control system.
Recommendation 5
5.1 MESP should establish an internal audit unit in order to improve controls and
minimise exposure to risk of waste misuse or loss of controls or assets.
13
0.97 0.97
Gjithsej Buxheti 2007 9,887,370.00 9,542,882.00 9,596,460.66 1.01
1.00 1 1.00
Rrogat dhe Pagat 699,840.00 699,841.00 699,840.00
1.10 1.10 1
Mallrat dhe Sherbimet 1,561,273.00 1,716,784.00 1,716,784.00
1.00 1.00 1.00
Shpenzimet Komunale 100,901.00 100,901.00 100,880.66
Subvencione dhe Transferet 0 0 -
0.93 0.94 1.01
Investimet Kapitale 7,525,356.00 7,025,356.00 7,078,956.00
Raport buxheti duke perfshirë
edhe grantet donatore
Buxheti fillestar Buxheti me Buxheti
Rishikim Përfundimtar Ndryshimet Ndryshimet Ndryshimet
Urdh.Admin.
Përshkrimi Rreg.2006/61 2007/xx SIMFK në, % në, % në, %
a b c d e=c/b f=d/b g=d/c
0.96 0.97 1.01
Gjithsej Buxheti 2007 9,899,978.95 9,547,672.22 9,613,859.83
0.97 0.97 1.01
Granti I përgjithshem 9,887,370.00 9,542,882.00 9,596,460.66
Të hyrat vetanake 2007
14
Të hyrat vetanake të bartura nga viti 2006 0
Grantet e Brendshme
0.38 1.38 3.6
Grantet e Jashtme 12,608.95 4,790.22 17,399.17
Grantet e Jashtme -
Raport i ekzekutimit të Buxhetit
Buxheti
Buxheti fillestar Përfundimtar Pagesat Progresi Progresi
Përshkrimi shen. Rreg.2006/61 SIMFK në, % në, %
a b c d e=d/b f=d/c
Gjithsej Pagesat 1+2+3 9,887,370.00 9,596,460.66 5,839,623.49 0.59 0.61
Pagesat nga Granti i 9,887,370.00 9,596,460.66 0.59
Përgjithshem 1 5,839,623.49 0.61
0 699,840.00 699,840.00 693,830.06
Rrogat dhe Pagat 0.99 0.99
1,561,273.00 1,716,784.00 1,335,797.40
Mallrat dhe Sherbimet 0.86 0.78
100,901.00 100,880.66 100,829.66
Shpenzimet Komunale 1.00 1.00
Subvencione dhe - 0 -
Transferet
7,525,356.00 7,078,956.00 3,709,166.37
Investimet Kapitale 0.49 0.52
15
Pagesat nga të hyrat 0 0 0 0 0
vetanake 2007 2
Rrogat dhe Pagat 0 0 0 0 0
Mallrat dhe Sherbimet 0 0 0 0 0
Shpenzimet Komunale 0 0 0 0 0
Subvencione dhe 0 0 0 0 0
Transferet
Investimet Kapitale 0 0 0 0 0
Pagesat nga të hyrat
vetanake të bartura
2006 3
Rrogat dhe Pagat 0 0 0 0 0
Mallerat dhe Sherbimet 0 0 0 0 0
Shpenzimet Komunale 0 0 0 0 0
Subvencione dhe 0 0 0 0 0
Transferet
Investimet Kapitale 0 0 0 0 0
16
Raport i Pagesave sipas Programeve
`Administr D.Banimit
Zyrja e Planifikimi
ata Hade Plemetin Mjedisi D.Burimit të e Gjithsej
Përshkrimi shen. Miniatrir Hapsinor
Qëndrore 434 435 501 Ujrave 603 Ndërtimit Pagesat
114 602
210-113 604
K=b+c+d+e+f
a b c d e f g h i
+g+h+i
Gjithsej Pagesat 1+2+3
258,281.11 125,972.06 2,541,649.95 195,229.50 757,629.53 1,136,499.28 133,068.48 691,293.58 5,839,623.49
Pagesat nga Granti i
Përgjithshem 1
Rrogat dhe Pagat 148,043.35 68,638.50 0 0 244,734.62 115,846.56 57,887.07 58,679.96 693,830.06
Mallrat dhe Sherbimet 69,637.76 57,333.56 531,144.69 0 292,078.82 238,889.59 63,349.83 83,363.15 1,335,797.40
Shpenzimet Komunale 40,600.00 0 3,541.01 0 17,899.00 17,976.99 11,831.58 8,981.08 100,829.66
Subvencione dhe Transferet 0.00 0 0 0 0.00 0.00 0.00 0.00 0.00
Investimet Kapitale 0 0 2,006,964.25 195,229.50 202,917.09 763,786.14 0 540,269.39 3,709,166.37
Pagesat nga të hyrat vetanake
2007 2 0 0 0 0 0 0 0 0 0
Rrogat dhe Pagat
Mallrat dhe Sherbimet 0 0 0 0 0 0 0 0 0
Shpenzimet Komunale 0 0 0 0 0 0 0 0 0
Subvencione dhe Transferet 0 0 0 0 0 0 0 0 0
Investimet Kapitale 0 0 0 0 0 0 0 0 0
Pagesat nga të hyrat vetanake
te bartura 2006 3 0 0 0 0 0 0 0 0 0
Rrogat dhe Pagat 0 0 0 0 0 0 0 0 0
Mallrat dhe Sherbimet 0 0 0 0 0 0 0 0 0
Shpenzimet Komunale 0 0 0 0 0 0 0 0 0
Subvencione dhe Transferet 0 0 0 0 0 0 0 0 0
17
Investimet Kapitale 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
Pagesat nga Fondi i Përgjithshëm K l a s i f i k i m I Ekonomik
Rroga dhe Mallrat dhe Shpenzimet Subvencionet & Shpenzimet
meditje Sherbimet Komunale Transferet Kapitale Totali
Mbrojtja Sociale
216,681.85 126,971.32 40,600.00 384,253.17
Shërbimet e Përgjithshme Publike
Mbrojtja
Klasifikimi Funksional
Rendi dhe Siguria Publike
531,144.69 3,541.01 2,115,389.21 2,650,074.91
Çështjet /mardhënjet Ekonomike
244,734.62 292,078.82 17,899.00 289,721.63 844,434.07
Mbrojtja e Mjedisit
Çeshtjet e Banimit dhe 232,413.59 385,602.57 38,789.65 1,304,055.53 1,960,861.34
Komunitetit
Shëndetsia
Rekreacioni,kultura dhe Religjioni
Arsimi
TOTALI 693,830.06 1,335,797.40 100,829.66 0.00 3,709,166.37 5,839,623.49
Pagesat nga Fondi i donatorëve K l a s i f i k i m I Ekonomik
Rroga dhe Mallrat dhe Shpenzimet Subvencionet & Shpenzimet
meditje Sherbimet Komunale Transferet Kapitale Totali
Mbrojtja Sociale
Funksional
Klasifikimi
Shërbimet e Përgjithshme Publike
Mbrojtja
Rendi dhe Siguria Publike
18
Çështjet /mardhënjet Ekonomike
Mbrojtja e Mjedisit
16,460.22 16,460.22
Çeshtjet e Banimit dhe
Komunitetit
Shëndetsia
Rekreacioni,kultura dhe Religjioni
Arsimi
TOTALI 0.00 16,460.22 0.00 0.00 0.00 16,460.22
Neni10. Pasqyra e Pranimeve dhe Pagesave të Parave të Gatshme për Ministrinë e MMPH
Qeveria e Kosovës
Për vitin e përfunduar me 31 dhejtor 2007
2007 2006
Llogaria e Vetme e Llogaria e Vetme e
Thesarit Thesarit
Pagesat Pagesat
nga nga
BKK THV palet e BKK THV palet e
treta te treta te
jashtme jashtme
€ €
Shenimet € '000 '000 € '000 € '000 '000 € '000
PRANIMET
19
Ndarjet nga Fondi i Pergjithshem 2 5,839,623.49 - 10,008,694
Ndarjet nga Fondi me Qellime te
Dedikuara -
Grantet e Percaktuara te Donatoreve 3 16,490.22 10,845.00
Pranimet tjera 4 - -
- -
Totali i Pranimeve 5,856,113.71 - 10,019,539 0 0
PAGESAT
Operacionet - -
Pagat dhe Meditjet 5 693,830.06 790,084.22
Mallrat dhe Sherbimet 6 1,335,797.40 - 1,225,298.50
Sherbimet Publike 7 100,829.66 88,921.09
2,130,457.12 - 2,104,303.81 0
- -
Transferet - -
Transferet dhe Subvencionet 8 - -
- - -
Shpenzimet Kapitale 3,709,166.37 7,904,390.11
Prona, Ndertesa dhe Pajisjet 9 - -
20
- -
Pagesat nga donacionet 10 16,490.22 10,845.00 -
- -
Totai i Pagesave 5,856,113.71 - 10,019,538.92 0
21
Neni12. Shpalosja e
shenimeve
Shenimi 2 Ndarja e Fondit te Përgjithshëm
2007 2006
Klasifikimi ekonomik BKK THV Totali
€ '000 € '000 € '000 € '000
Pagat dhe mëditjet 699,840.00 - 699,840.00 798,478.00
Mallrat dhe Shërbimet 1,716,784.00 - 1,716,784.00 1,335,158.00
Shërbimet Publike 100,880.66 - 100,880.66 89,800.00
Subvencionet dhe transferet - - - -
Shpenzimet Kapitale 7,078,956.00 - 7,078,956.00 12,713,742.00
Totali : 9,596,460.66 - 9,596,460.66 14,937,178.00
Shenimi 3 Ndarja e Fondit te Pergjitheshem
2007.00 2006
Klasifikimi ekonomik
€ '000 € '000
Pagat dhe mëditjet 699840.00 798,478
Mallrat dhe Shërbimet 1716784.00 1,335,158
Shërbimet Publike 100880.66 89,800
Subvencionet dhe transferet 0.00 -
Shpenzimet Kapitale 7078956.00 12,713,742
Totali : 9596460.66 14,937,178
22
Shenimi 5 Pagat dhe meditjet
2007 2006
BKK THV Totali
Pershkrimi € '000 € '000 € '000 € '000
Pagesat nga FFK
Neto pagat 601,524.46 - 601,524.46 685,993.06
Tatimi nbe te hyra personale 26,226.44 - 26,226.44 28,905.04
Pagesa e kontributit pensional nga punedhenesi 33,039.58 - 33,039.58 37,623.06
Pagesa e kontributit pensional nga I punesuari 33,039.58 - 33,039.58 37,623.06
Pagesat per Sindikata -0.10% te 0.50% - - - -
Pagesat e punes jashte orarit - - - -
Paagesat ditore te parlamentareve dhe te punes se
komisioneve - - - -
Shujtat - - - -
Pagesat e ndrimeve - - - -
Meditjet e kontraktuara - - - -
Pjesemarja ne Kuvend - - - -
693,830.06 - 693,830.06 790,144.22
pagesa nga Granti
Pagat me orar te plote - n/a - -
Pagesa per pune jashte orarit - n/a - -
Pagesat e kontraktuara - n/a - -
- - - -
-
Totali 693,830.06 - 693,830.06 790,144.22
23
Shenimi 6 Mallra dhe Shërbimet
2007 2006
Përshkrimi BKK THV Totali BKK
€ '000 € '000 € '000 € '000
Pagesat nga FKK 0 0 0 0
Shpenzimet e udhëtimit brenda vendit 250.00 - 250.00 1,427.20
Shpenzimet e udhëtimit jashtë vendit 64,117.34 - 64,117.34 38,641.73
Internet 8,564.96 - 8,564.96 11,469.94
Shpenzime tjera telefonike - Vala 900 34,226.71 - 34,226.71 11,380.57
Shenzimet postare 438.46 - 438.46 659.25
Shërbimet e arsimit dhe trajnimit 2,668.00 - 2,668.00 497.00
Shërbimet e përfaqësimit dhe avokaturës 910.00 - 910.00 -
Shërbime të ndryshme intelektuale dhe
këshilluse 5,849.00 - 5,849.00 4,600.00
Shpen.shërbime teknike - - - 5,536.35
Shërbime kontraktuse 24,079.05 - 24,079.05 30,505.38
Blerje e mobiljeve dhe paisjeve tj - - - 1,341.00
Mobilje 10,292.00 - 10,292.00 1,150.06
Telefona 10,318.50 - 10,318.50 1,500.00
Kompjuterë 1,193.00 - 1,193.00 -
Paisje trafiku 986.00 - 986.00 0
Pajisje tjera 41,663.43 - 41,663.43 14,185.88
Mobilje 3,650.00 - 3,650.00 -
Harduer për teknologji informative 2,875.00 - 2,875.00 0
Pajisje tjera 10,384.00 - 10,384.00 0
Blerje tjera - - - 75.00
Furnizime për zyrë 53,634.92 - 53,634.92 49,824.70
Furnizim me ushqim dhe pije ( jo për dreka
zyrtare) 12,811.76 - 12,811.76 10,527.89
Furnizime pastrimi 3,068.01 - 3,068.01 4,184.77
Furnizim me veshmbathje 5,617.00 - 5,617.00 2,515.00
24
Akomodimi 10,570.86 - 10,570.86 5,239.34
shpen.varimit 46.00 - 46.00 0
Naft për ngrohje qëndrore 2,884.70 - 2,884.70 0
karburant për vetura 123,749.86 - 123,749.86 69,831.54
Avans për udhëtime zyrtare 3,000.20 - 3,000.20 0
Regjistrimi dhe sigurimi i automjeteve 9,285.23 - 9,285.23 3,574.00
Mirëmbajtja dhe riparimi i automjeteve 158,190.28 - 158,190.28 98,665.31
Mirëmbajtja e ndërtesave 20,411.85 - 20,411.85 15,782.50
Mirëmbajtja e teknologjisë informative 630.00 - 630.00 -
Mirëmbajtja e mobilieve dhe pajisjeve 2,126.00 - 2,126.00 931.44
Qiraja për ndërtes 622,609.01 - 622,609.01 789,334.50
Reklamat dhe konkurset 36,400.37 - 36,400.37 31,808.97
Botimet e publikimeve 13,708.15 - 13,708.15
Drekat zyrtare 34,587.75 - 34,587.75 20,109.18
Totali 1,335,797.40 - 1,335,797.40 1,225,298.50
Shënimi 7 Shërbime Publike
2007 2006
Përshkrimi BKK THV Totali BKK
€ '000 € '000 € '000 € '000
Rryma 24,840.34 24,840.34 25,198.22
Uji 12,436.72 12,436.72 2,792.79
Mbeturinat 362.80 362.80 794.08
Telefoni - PTK me fatura 63,189.80 63,189.80 59,886.00
Komunali të tjera 250.00
Totali 88,921.09
25
100,829.66 100,829.66
Shënimi 8 - Investime kapitale
2007 2006
Përshkrimi BKK THV Totali BKK
€ '000 € '000 € '000 € '000
Ndërt.jorezidenciale 2,432,295.58 0 2,432,295.58 6,887,475.30
Struk.tje. 1,197,323.29 0 1,197,323.29 762,444.39
Furizim me Rrymë ,Kabëll 9,827.50 0 9,827.50 -
Paisje tek.informative 69,720.00 0 69,720.00 -
Automjete transportuse - 0 - 147,366.02
Kapitale tjera 107,104.40
Totali 3,709,166.37 0 3,709,166.37 7,904,390.11
Pagesat nga Grantet
2007 2006
Përshkrimi BKK THV Totali BKK
€ '000 € '000 € '000 € '000
Shpenzimet e udhëtimit jashtë
vendit 3,725.44
Shërbimet e arsimit dhe trajnimit 8,202.95 8,202.95 3,394.00
Akomodimi 1,993.97 1,993.97 -
Kthim I Avans për udhëtime - -
zyrtare 2,824.56 2,824.56 - 5,174.44
Reklamat dhe konkurset 1,446.90 1,446.90 900.00
Furnizime për zyrë 739.00 739.00 -
Drekat zyrtare 6931.96 6931.96 -
Avanse të hapura 0 0 8,000.00
16,490.22 16,490.22 10,845.00
26
Neni14. Shenimi25 Pasqyra e faturave (obligimeve) te papaguara te
organizates
2007
€ '000
Data e Nr I
leshimit CPO Qellimi € '000
30.11.07 708 AL-Petrol 1,030.97
30.11.07 708 AL-Petrol 1,664.31
30.11.07 708 AL-Petrol 717.97
30.11.07 708 AL-Petrol 490.10
31.10.07 708 AL-Petrol 1,379.23
31.10.07 708 AL-Petrol 1,230.67
30.09.07 708 AL-Petrol 1,391.77
31.10.07 708 AL-Petrol 616.70
30.09.07 708 AL-Petrol 372.64
31.10.07 700 AL-Petrol 605.78
30.11.07 700 AL-Petrol 163.54
30.11.07 700 AL-Petrol 685.10
31.10.07 693 AL-Petrol 436.65
30.11.07 693 AL-Petrol 500.57
30.11.07 696 AL-Petrol 217.69
31.10.07 696 AL-Petrol 421.28
30.09.07 696 AL-Petrol 469.95
30.09.07 703 AL-Petrol 618.17
27
30.11.07 703 AL-Petrol 598.80
31.10.07 AL-Petrol 4,050.13
30.11.07 AL-Petrol 5,317.21
31.10.07 AL-Petrol 436.65
30.09.07 AL-Petrol 342.06
30.11.07 AL-Petrol 1,350.76
30.11.07 AL-Petrol 414.38
30.09.07 AL-Petrol 2,941.47
31.12.07 AL-Petrol 1,042.10
31.12.07 AL-Petrol 408.50
31.12.07 AL-Petrol 1,176.53
31.12.07 AL-Petrol 731.00
31.12.07 AL-Petrol 637.38
31.12.07 AL-Petrol 383.26
31.12.07 AL-Petrol 3,815.94
31.12.07 AL-Petrol 446.60
31.12.07 AL-Petrol 993.30
31.12.07 AL-Petrol 409.55
31.12.07 AL-Petrol 271.98
Auto Avangarde(nuk jan
07.12.07 26305 realizu) 194.75
Auto Avangarde(nuk jan
08.12.07 26305 realizu) 341.25
Auto Avangarde(nuk jan
02.12.07 26305 realizu) 154.90
Auto Avangarde(nuk jan
11.12.07 26305 realizu) 325.30
Auto Avangarde(nuk jan
12.12.07 26305 realizu) 360.75
12.12.07 26305 Auto Avangarde(nuk jan
28
realizu) 1,096.50
12.12.07 587 Regji/sigur veturave 40.00
11.09.07 587 Regji/sigur veturave 40.00
12.12.07 586 Regji/sigur veturave 40.00
12.12.07 586 Regji/sigur veturave 40.00
12.12.07 586 Regji/sigur veturave 40.00
12.12.07 588 Regji/sigur veturave 40.00
11.09.07 588 Regji/sigur veturave 40.00
12.12.07 589 Regji/sigur veturave 40.00
12.12.07 589 Regji/sigur veturave 20.00
12.12.07 589 Regji/sigur veturave 20.00
21.11.07 596 Reforma 50.00
16.11.07 596 Reforma 50.00
29.12.07 Reforma 75.00
03.08.07 42679 Eroni 348.00
30.11.07 593 Kosova Sot 124.20
05.12.07 593 Kosova Sot 248.40
06.12.07 593 Kosova Sot 124.20
13.12.07 Kosova Sot 124.20
12.12.07 Kosova Sot 124.20
24.12.07 Kosova Sot 124.20
30.03.07 591 Focus 115.00
27.04.07 591 Focus 230.00
27.04.07 591 Focus 115.00
18.05.07 591 Focus 115.00
29
08.06.07 591 Focus 115.00
02.11.07 Focus 230.00
09.11.07 Focus 345.00
28.09.07 Focus 230.00
20.04.07 Focus 57.50
21.09.07 Focus 115.00
05.10.07 Focus 345.00
19.10.07 Focus 115.00
22.06.07 Focus 230.00
29.06.07 Focus 345.00
07.09.07 Focus 115.00
06.07.07 Focus 115.00
24.12.07 Kosova Press 115.00
19.11.07 592 ACI 200.00
04.04.07 590 Radio Kosova e Lire 300.00
03.05.07 590 Radio Kosova e Lire 300.00
14.01.08 Radio Kosova e Lire 11/07 300.00
16.01.08 Radio Kosova e Lire 12/07 300.00
06.12.07 594 Zeri 414.00
14.12.07 Zeri 276.00
21.12.07 Ame 2,617.98
12.31.07 Wetrok 802.70
12.31.07 Wetrok 400.00
15.12.07 578 DPH Pishat 39.10
20.11.07 578 DPH Pishat
30
28.20
22.11.07 578 DPH Pishat 32.30
01.11.07 578 DPH Pishat 52.00
17.12.07 Restoran " EJA " 418.50
28.12.07 1691 Restoran " Te Arui" 50.50
52,585.32
KOMUNALI
26.11.07 585 KEK 30.61
26.10.07 585 KEK 11.64
10.10.07 1696 KEK 35.39
10.11.07 1694 KEK 70.60
03.12.07 1692 KEK 60.10
08.09.07 1679 KEK 57.81
03.12.07 1683 KEK 172.19
17.12.07 1684 KEK 220.99
10.11.07 1687 KEK 39.04
09.10.07 1689 KEK 19.36
10.11.07 581 KEK 56.42
01.11.07 KEK 33.25
08.12.07 KEK 70.43
06.12.07 KEK 38.66
10.11.07 584 KEK 160.37
06.12.07 1699 PTK 31.59
12.11.07 1700 PTK 52.72
06.12.07 1701 PTK 30.50
01.11.07 PTK 11/07 3,169.07
07.01.08 PTK 12/07 2,793.58
05.10.07 1702 PTK 15.46
06.12.07 1703 PTK 141.78
06.12.07 1681 PTK 36.80
07.01.08 1682 PTK 12/07 29.07
701.08 PTK 12/07 85.53
07.01.08 PTK 12/07 13.06
01.11.07 580 PTK 11.60
0701/08 PTK 12/07 265.01
31
01.12.07 580 PTK 38.45
01.09.07 1698 PTK - VALA 900 75.74
05.12.07 579 Roming 11/07 2,795.41
06.01.08 Roming 12/07 2,384.99
01.11.07 1676 KUR Prishtina 121.56
01.12.07 1676 KUR Prishtina 68.48
01.12.07 1704 KUR Prishtina 92.00
01.11.07 Bifurkacioni Ferizaj 78.76
01.12.07 KUR Prishtina 260.02
01.12.07 Higjiena 21.50
13,689.54
INVESTIME
17.12.07 EUROING 43,489.72
18.11.07 PRO-CAD-ING 975.00
18.11.07 PRO-CAD-ING 975.00
17.12.07 94041 LABI ( nuk jan realizu) 19,592.00
17.12.07 94024 LABI ( nuk jan realizu ) 19,432.00
03.10.07 84182 Euro Enginering(nuk jan reali 2,792.00
17.12.07 84180 IMPACT (nuk jan realizu) 2,847.00
14.12.07 15611 ALFA I (nuk jan realizu) 32,500.00
14.12.07 116836 Berat Preniqi( jan kthy mjetet ) 9,606.80
Mirvete Preniqi(jan kthy
14.12.07 116836 mjetet) 2,676.52
14.12.07 116836 Violeta Preniqi(jan kthy mjetet) 4,494.60
05.12.07 116836 Hysen Preniqi(jan kthy mjetet) 2,570.74
29.11.07 116836 Faton Morina(jan kthy mjetet) 2,400.90
18.12.07 Mbikqyrja ne Hade 2 5,376.80
149,729.08
32
Totali 216,003.94
Neni 15. Shënimi 26:Huatt dhe Avancat e pa arsyetuara
Data e Lëshimit Dhënies Nr. I CPO Qëllimi Shuma
Udhtim jasht vendi
Gjermani
19.02.07 C8697 kthimi I mj.02.01.08 1,745.00
Udhtim jasht vendi Turqi
20.03.07 C22267 kthimi I mj.02.01.08 1,255.20
Totali 3,000.20
33
II. The MESP Comments and OAG’s Reply
No. MESP’s Comments OAG’s Reply
Financial Reporting
1 MESP has timely submitted its financial Law No. 2003/2 “Public Financial
statements to MEF for the period 01.01.2007 - Management and Accountability”
31.12.2007. regulates the preparation and
Financial Statements have been prepared in reconciliation of financial statements for
compliance with MEF designed form. all budget organizations.
Balance-sheet items were reconciled and they Financial statements need to be prepared
correspond to information presented in the based on the accounting records obliged
Free Balance. Furthermore, there was a to be kept by each budget organization,
validity performed in relation to the accuracy pursuant to afore mentioned law.
of the financial statements. MESP regularly The finding remains.
performs the reconciliation of transactions
from the accounting register to the Free
Balance system. There is evidence to this
which confirm such an action.
2
Auditor’s remarks as described in the Your comment is partially accepted.
report: The issue was not lack of reconciliation
No reconciliation performed between original but lack of presentation of reconciliations
and final budget appropriations. table in the financial statements. The MEF
Administrative Instruction 2007/08
MESP’s Comments on the auditor’s “Annual Reporting of Budget
remarks: Organizations” pursuant to which the
This OAG drawn conclusion is unclear to us, financial statements are prepared, requires
therefore we seek specific explanations the presentation of the Reconciliation of
regarding the kind of reconciliation you are Original and Final Budget
talking, which budgetary line items must be Appropriations Table in the financial
included and reconciled at the beginning and at statements. This table gives information
the end of budget year. The information on the original/initial budget, changes in
presented in the financial statements is the budget and provides a comparison
accurate and reconciled with Treasury’s between the original and final budget. The
specifications, respectively with the Free finding remains.
Balance system.
Revenues
3 Auditor’s remarks as described in the The entity has accepted our finding about
report: the lack of revenues presentation in its
Collected revenues not presented in the 2007 financial statements.
financial statements. Financial Statements are prepared based
on cash flow, and if revenues are not
MESP’s Comments on the auditor’s presented the cash flow will result
remarks: inaccurate. Our finding remains.
MESP’s revenues were not presented in the
financial statements because Treasury
34
Department has not recorded them as MESP’s
revenues.
We agree that this was a failure, however we
were not in the position to enforce the
Treasury Department to take actions, therefore
we consider that this was not a breach of law.
Your conclusion where you have stated that
cash flow presentations are inaccurate, is not
correct, therefore we seek additional and
concrete explanations.
Expenditures and Procurement
4
Auditor’s remarks as described in the The entity has accepted our conclusion
report: that there were payments made from the
In two contracts for a total of 74,145.00 €, the Ministry for none contracted items.
paid price for some line items exceeds the Therefore, our finding and
contracted price whereas a number of recommendation remain.
delivered goods were not included in the
original contract.
MESP’s Comments on the auditor’s
remarks:
This is concerning contracts for servicing
vehicles where it is impossible to specify all
parts of vehicles which will be replaced. In
cases where parts that had to be replaced were
not included in the contract, we have obtained
at least three bids with market prices.
There were similar cases in another contract
for food and drinks, during the visits of various
delegations in MESP, where there were
instances of items ordered outside the contract,
but all this was impossible to be under our
control.
Other instances were present in regard to fuel
supply where the price is regulated by the
world stock exchange.
5
Auditor’s remarks as described in the We have once more analyzed our finding
report: after receiving your comments, however,
The contract of 19,545.00 € is dividend in two our conclusion remains that our findings
procurement activities in order that each are substantiated and that
procurement is kept under the threshold of recommendation remain.
10,000.00 €.
MESP’s Comments on the auditor’s
remarks:
We process the tenders according to our
received requests. Thereby it was requested
that various works be performed although the
winning company is the same.
35
The first request is for “Gasification of KHMI
(Kosovo Hydro Meteorology Institute)”
whereas the second for “Electrification of
KHMI” where the two requests contain
completely different descriptions and they
have been treated accordingly (separated from
one another).
6 Auditor’s remarks as described in the
report: Pursuant to Section 60.1 item (i) and
In three contracts MESP has not requested Section 60.3 of LPP No. 2003/17, the
from winning economic operator Execution Contracting Authority must make sure
Guarantee, in compliance with Section 60 Law that no public contract is signed prior to
No. 2003/17. obtaining first the Execution Guarantee in
compliance with LPP requirements
MESP’s Comments on the auditor’s The finding remains.
remarks:
Instance I. Demolition of illegal buildings;
contract was fulfilled and guarantee was
withdrawn (taken back) by the company
Instance II. Construction of a Drinking Water
system in the village of Banje, Peja
Municipality; contract was signed but the
works were not expected to commence,
meantime this item was chosen for the audited.
Instance III. Regulating the protection zone in
Klina; contract was fulfilled and the company
has withdrawn its guarantee.
7
Auditor’s remarks as described in the We have referred to two advance
report: payments, the first in the amount of
MESP has made two advance payments up to 47.700 € whereas the other 46.400 € for
20% of the contracted value of 94,100.00 €. two different contract, each makes up
20% of the contracted value.
MESP’s Comments on the auditor’s We have not identified any activity
remarks: undertaken by MESP in following up
First of all, if we refer to the above table, we how many of the economic operators
did not have the above mentioned figure as a who received advance allowances,
contracted value. fulfilled the contract conditions.
There were cases where advance payments Both, finding and recommendation
have been processed; nonetheless they had remain.
been regulated with the payment terms
specified in the tender dossier and in full
compliance with the Law on Public Financial
Management and Accountability, which allows
payments for works to be paid up to 20 % of
the contract value.
8
Auditor’s remarks as described in the MESP has also publicly announced the
report: tender; to obtain offers, evaluate and
In three contracts MESP has paid the award any of the economic operators and
economic operator although there was no sign a contract with it for executing
36
evidence that economic operators have contracted projects. Therefore, in
completed the work. accordance with the signed contract
Our visit of the sites confirmed that the related MESP is responsible to follow the
projects had been completed only partially. execution of the contract.
Our finding remains.
MESP’s Comments on the auditor’s
remarks:
The contracts mentioned above referred to the
construction of social residential premises.
Pursuant to the Memorandum of
Understanding, these projects are co-financed
between MESP and beneficiary municipalities
in proportion 50% to 50%, payments,
therefore, have been made in accordance with
this agreement. Thus, if 50 % of each position
was completed, we have processed the
payment based on the invoicing done by the
company, whereas the remainder of the
payment was done by the Municipality once
100% of the works had been completed.
9
Auditor’s remarks as described in the One of the basic criteria MESP took into
report: account when evaluating and awarding
An Economic Operator has requested to start contracts was the Work Plan for the
the project, as per the contract, on July 2007 execution of the project.
and to observe the Work’s Plan of 85 working The contract also mentions the work plan
days. Nevertheless, the economic operator has of work execution for what the advance
not followed the contract and still was paid in allowance was paid. However, even
advance 47,700.00 €. though the project was not completed
during 2007, in conformity with the
MESP’s Comments on the auditor’s signed contract, we have not seen any
remarks: actions taken by MESP that would
This specific case relates to the project enforce the economic operator observe the
“Adjusting the Bed of Mirusha River” in contract.
Gjilan, where at the start of the works, a big Finding, conclusion and recommendation
number of problems have occurred as a result remain.
of poor projecting. This project was contracted
by the Municipality of Gjilan, nevertheless the
terrain geo-mechanical elaboration had to be
redone in order to avoid the problems which
evolved and which affected the time of project
completion. The payment in the level of 20%
of the contract value is in compliance with the
Law on Public Financial Management and
Accountability and also with terms of
payments.
10
Auditor’s remarks as described in the Finding is relates to the contract signed on
report: 07.09.2007 with the Company for
The amount of 3,600.00 € is paid for Professional Supervision, for the
37
monitoring the project which was not to start execution of the project of “Adjusting the
before 2008. Bed of River Mirusha”, where although
the project has not started in 2007, from
MESP’s Comments on the auditor’s Supervising Company have been received
remarks: the invoices no. 070, 071,072 and 073 and
The Procurement Department has no this company is paid for 3.600,00 €.
information for such a payment. The finding remains.
Taking into consideration that in 2008 only the
works for the project of Drinking Water
System in the village of Banje, Peja
Municipality had to commence, the
Supervising Company was contracted in 2008.
Asset Management
11
MESP at the end of each budgetary year We could not see any action that
performs an inventory of its assets. The management has taken against those
inventory of assets was performed also for officials who lost their equipments.
2007. There is one case where the official who
The fact that there are some equipments lost the lap-top has reported the case to
missing, which was verified with the the police. The finding remains.
performed inventory, is because these
equipments have been stolen from the officials
the equipments were issued to.
The cases have been reported to police, and the
police is following these cases whereas the
police has issued to us the police report.
Furthermore, our Logistic Unit has finished
their part of procedures in regard to the stolen
equipments.
Internal Control and Internal Audit
12
MESP had no Internal Control Officer-Auditor The entity accepted our finding and has
from 01.01.2008 to 10.07.2008. This is taken steps towards making the internal
because of MEF’s internal auditors. They have audit unit of this ministry function.
stated that they were going to distribute their During 2008 audit we will follow up
own auditors through other budget entities. whether our recommendation has been
Since this did not happen, this position was implemented.
filled by MESP staff.
38
