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Excerpt from the Audit Report on Annual Financial Statement of Party

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Excerpt from the Audit Report on Annual Financial Statement of Party EXCERPTS FROM INDIVIDUAL AUDIT REPORTS OF ANNUAL FINANCIAL STATEMENTS OF POLITICAL PARTIES FOR 2012 not covered in the previous Annual Report of the State Audit Institution Type of audit: Financial audit Audited entity: Political parties: Liberal Party of Montenegro; Serbian Fatherland Party; Albanian Alternative; Democratic Party; Party for Gusinje; Yugoslav Communist Party of Montenegro; Party of Pensioners, Disabled Persons and Social Justice of Montenegro; People’s Party; Democratic Party of Unity; Democratic Centre of Montenegro; and Democratic Serb Party Subject‐matter of the Annual Financial Statements of political parties for 2012 audit: Audit duration: 120 auditing days Auditing Board Dragiša Pešić, member of the Senate – head of the Auditing Board members: Branislav Radulović PhD, member of the Senate – member of the Auditing Board I GENERAL DATA 1. Legal basis Legal basis for auditing annual statements and operations of political parties are contained in the: . Law on the State Audit Institution (OGRM 28/04, 27/06 and 78/06 and OGM 15/07, 73/10, 40/11); . Law on Political Party Financing (OGM 49/08, 49/10, 40/11, 42/11, 60/11, 01/12); . Annual Auditing Plan of the State Audit Institution for 2012 (No. 4011‐06‐1398 of 24 December 2012); . Decision of the Auditing Board IV competent for carrying out this audit (No. 40113‐04‐3444 of 17 April 2013). Audit procedures were carried out in accordance with: . International Accounting Standards and International Public Sector Auditing Standards (INTOSAI); . Instruction on Work Methodology of the State Audit Institution; . Rules of Procedures of the State Audit Institution (OGRM 50/07). 2. Subject of audit The subject of the audit is annual financial statements of political parties and compliance of their operations with legislation. 3. Objective of audit The objective of the audit is to check the following: . Accuracy and trustworthiness of financial statements, . Application of laws and other regulations related to organisational, financial and accounting matters, . Compliance with fund‐raising regulations, . Compliance with the regulations governing spending, i.e. verification whether the funds were used solely for pursuing the goals set forth in the political party manifesto and statute, . Regularity in the execution of other transactions. 5. PARTY FOR GUSINJE The Party for Gusinje is registered in the Register of Political Parties with the Ministry of Justice on 25 August 2006. The Party has a legal person status and is organised on territorial principle. Pursuant to the Statute, the core program objectives of the Party are: advocating that a status of municipality is returned to Gusinje; initiatives to support comprehensive development of Gusinje; utilisation of natural resources and beauties of Gusinje, especially the area of Ali‐paša’s springs as an exceptional tourist destitution; connecting with people originating from Gusinje and living abroad in order to promote higher and faster foreign capital investment in development of Gusinje; promoting the opening of the road from Gusinje to Podgorica via the part of the Albanian territory as exceptionally important factor for resurgence of the entire North of Montenegro; cooperation with all political entities and entities of the society in Plav, Gusinje and Montenegro on all matters important for improving the work; pre‐election and election activities to obtain seats in municipal assembly and the Parliament; striving for definitive solution of constitutional and legal position of the Bosniak nation in Montenegro; advocate for constitutional status of Bosniaks in Montenegro on the basis of acquired right; development of a multi‐cultural community of Bosniaks with other nations and minority communities in Montenegro; development of national institutions of Bosniaks (academy, university, institutes, libraries, theatres, museums, and other); and advocating for full equality of all citizens regardless of their ethnic, political, religious, property and other characteristics; etc. The Party has the following bodies: the General Assembly, Central Board, Presidency, President, Financial Board and Court of Honour. The General Assembly is the highest body of the Party. The General Assembly is constituted of at least ten representatives each from all local boards. The General Assembly adopts the Program and Statute, elects and dismisses: the Central Board, Presidency, President, Vice‐ president, Financial board, and President and members of the Statutory Commission and assesses their work; and similar. The Central Board is the highest body of the Party between two General Assemblies. The Central Board implements decisions and conclusions of the General Assembly, adopts the budget and adopts report on the Party’s budget, adopts a Decision on the amount of the Party’s membership fee, adopts the Rule of Procedures on its work, and caries out other tasks in line with the Statute. The Presidency is a political and consultative body of the Party and its competence are to: deliberate drafts of all general acts of the Party and give its opinions; give opinion about human resources matters of the Party; and deal with other matters of importance for the work of the Party. The President represents and acts on behalf of the Party, ensures uniform and comprehensive functioning of the Party, gives orders for execution of the Party’s budget, calls and chairs meetings of the Presidency, and performs other tasks pursuant to the Statute. In the period covered by the audit, dr Rusmin Laličić carried out tasks of the Party’s President. The Financial board controls the financial operations of the Party and submits its reports to the General Assembly and the Central Board, at least once a year. Pursuant to the Statute, the Party is financed from membership fees, gifts and other sources in accordance with law. At the end of the calendar year, the Central Board adopts the Financial Plan of the Party for the next years. The Party’s President issues orders for use of financial resources and execution of the Financial Plan. Local organisations keep records on their financial operations and submit data thereof to the Financial Boar of the Party. A president of the local board is responsible for legality of disposal of funds. The Financial Plan and Year‐end accounts are submitted to the General Assembly of the Party for adoption. 5.1. Audit methodology The audit was performed by the combined methods of analysis of documents and audit fieldwork. Following the analytical procedures, and assessment and analysis of collected documentation, detailed audit techniques and methods were decided upon and applied (e.g. development of questionnaires, conduct of discussions and interviews, review of documents, verification of business books and bookkeeping records serving as evidence of business events, verification of computational accuracy of financial transactions pertaining to recorded revenues and expenditures, etc.). 5.2. Accounting records Under Article 23 of the Law on Political Party Financing, the Party as a non‐for‐profit organisation in 2012 was obliged to keep accounting records of revenues and expenditures by their origin, amount and structure, as required by the regulations of the Ministry of Finance. The audit has established that in 2012 the Party maintained business books according to the provisions of the Law on Accounting and Auditing (OGRM 69/05 and OGM 32/11) and the Rulebook on the Chart of Accounts and Contents of Accounts in the Chart of Accounts for Business Organisations and other Legal Entities (OGM 5/11). The audit has established that in 2012 the Party kept the following business books: general ledger, ancillary records of commitments and cash journal. 5.3. Revenues In 2012, the Party generated total revenues from regular operations in the amount of €2,573.43. Generated revenues pertain to the revenues from the budget of the Plav Municipality in the amount of €2,570.02 and financial revenues in the amount of €3.41. 5.4. Expenditures In 2012, the Party has stated total expenditures in the amount of €2,815.66, and they pertain to: expenditures for electricity in the amount of €111.66, expenditures for rent in the amount of €1,500.00, expenditures for post and telecommunication services in the amount of €1,200.00, and expenditures for payment operations in the amount of €4.00. The audit has established that the Party did not make any payment of expenditures in 2012, expect for bank fees, but those were used to state liabilities as of 31 December 2012. The payment of stated liabilities was done in 2013. 5.5. Assessment of established facts ‐ Opinion Pursuant to Article 4 of the Law on the State Audit Institution and Article 23 of the Law on Political Party Financing, the State Audit Institution performed audit of the Annual Financial Statement of the Party for Gusinje for 2012. The audit was planned and performed with the aim of providing reasonable assurance whether the financial statements were compiled in accordance with applicable legislation, and whether the operations are in compliance with the law and other regulations. Based on the performed audit, established facts and consideration of the audited entity’s Response (No 24/13 of 2 December 2012) to the SAI Preliminary Report (No 40113‐04‐444/126 of 26 November 2013), and in accordance with Article 50 of the SAI Rules of Procedures the Auditing Board, composed of Dragiša Pešić, Head of the Auditing Board ‐ member of the Senate and Branislav Radulović, PhD, member of the Auditing Board ‐ member of the Senate, adopted the FINAL REPORT on audit of the Annual Financial Statement for 2012 of the Party for Gusinje OPINION The Annual Financial Statement of the Party for Gusinje for 2012 in all material aspects provides an objective presentation of stated revenues and expenditures, in accordance with the accepted financial reporting framework. The financial transactions are supported by relevant documentation used to compile the financial statement, and therefore the competent Auditing Board expresses the UNQUALIFIED OPINION on the Annual Financial Statement.
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