of Financial audit and compliance audit
Transcript of of Financial audit and compliance audit
AUDIT REPORT
AUDIT OF THE PROPOSED LAW ON THE FINAL STATEMENT OF ACCOUNTS OF THE STATE BUDGET OF MONTENEGRO FOR 2013
Type of audit: Financial audit and compliance audit Audited entity: Government of Montenegro ‐ Ministry of Finance Subject of audit: Proposal Law on the Final Statement of Accounts of the State Budget of
Montenegro for 2013 Audit duration: 140 audit days
Auditing Board members:
Mr Milan Dabović, PhD, President of Senate ‐ Head of Auditing Board Mr Dragiša Pešić, Member of Senate – Member of Auditing Board
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
3
On the basis of Article 9 of the Law on State Audit Institution and the Decision of the Auditing Board responsible for the audit and composed of Mr Milan Dabović PhD, Head of the Auditing Board and Mr Dragiša Pešić, member of the Auditing Board, the State Audit Institution conducted the financial audit of the Proposal Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013. The audit covered the legal part and the explanation, Report on Consolidated Public Spending for 2013, Report on Cash Flow for 2013 prepared according to the economic classification, Report on Cash Flow for 2013 prepared according to the functional classification, Report on Arrears as of 31 December 2013, a summary overview of the key accountancy policies and other explanatory information, as well as the audit of compliance of the activities and financial transactions with the laws and secondary legislation. Responsibility of the Management for the Financial Reports According to Article 39 of the Law on the Budget and Fiscal Responsibility1, Minister of Finance is responsible for the execution of the state budget, as well as for the preparation and presentation of financial statements in line with the Rulebook on the Manner of Drafting, Compiling and Filing Financial Statements of the Budget, State Funds and Local Self‐Government Units2. According to Article 40 paragraph 4 of the Law on the Budget and Fiscal Responsibility, it is the budget executor in the spending unit that is responsible for legality in the use of the funds allocated to that spending unit. This responsibility includes designing, implementing and ensuring internal controls relevant for the preparation and presentation of the financial statements without materially wrong presentations caused by fraud or by error. The Government of Montenegro and the responsible persons in the spending units are responsible for ensuring compliance of all activities, financial transactions and information entered into the financial statements with the relevant legislation. Responsibility of the State Audit Institution The responsibility of the State Audit Institution is to express its opinion about the Proposal Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013 on the basis of the audit it performs and to express its opinion on whether, in their material aspects, the activities, financial transactions and information given in the financial statements are in compliance with the current applicable legislation. The audit was performed according to Articles 4 and 9 of the Law on State Audit Institution3, relevant International Standards of Supreme Audit Institutions (ISSAI) and the Annual Audit Plan of the State Audit Institution for 2014 No. 4011‐06‐1540 of 27 December 2013. Adhering to the International Standards of Supreme Audit Institutions (ISSAI) the State Audit Institution complied with the requirements of ethics. It planned and performed the audits in the way that provided reasonable assurances that in the report there are no materially wrong presentations of data. The audit included the procedures for obtaining audit evidence about the amounts disclosed in the financial statements, including the assessment of the risk of materially wrong presentation caused by frauds or errors. The risk assessment dealt with internal controls relevant for the development and fair presentation of the financial statements, with a view to designing the audit procedures that are appropriate in given circumstances, but not with a view to expressing opinion about the effectiveness of the internal controls. The audit included the assessment of the applied accountancy procedures and the assessment of the general presentation of financial statements. We are of the opinion that the audit evidence secured in the audit process on the selected sample of 60.10% i.e. on the amount of 963,652,728.45€, are sufficient and appropriate to provide a basis for the expressed audit opinion.
1 OGM 20/14 as of 25 April 2014
2 OGM 23/14
3 OGM 28/04, 27/06, 78/06, 17/7, 73/10 and 40/11
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
4
Financial audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013, the end of which is on 31 December 2013, established that the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013 was in all material aspects prepared in compliance with the Law on Budget and the Rulebook on the Rulebook on the Manner of Drafting, Compiling and Filing Financial Statements of the Budget, State Funds and Local Self‐Government Units and that it does not contain materially significant errors in the presentation of the results (deficit). Accordingly, the Auditing Board expresses its unqualified opinion with emphasis on the matter. The following matter is hereby emphasized:
1. The funds in the amount of 7,198,449.13 were allocated to the Radio and Television of Montenegro through a direct payment from the Central Account of the State Treasury and there were no records of this amount on the side of the revenues and expenditures in the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013.
We recommend that the Government of Montenegro and the Ministry of Finance consider the option of planning the funds for the Radio and Television of Montenegro through the annual law on budget as a transfer to institutions, individuals, non‐governmental and public sector; that they realize the planned funds through the General Ledger of the State Treasury and that they report about this spending within the Law on the Final Statement of Accounts of the State Budget of Montenegro.
2. The Ministry of Finance did not ensure full records of the balance and turnover of financial
assets through the system of the General Ledger of the State Treasury (class 1). Therefore, we particularly indicate to the fact that it is necessary to record the balance and the turnover of the monetary transactions that are done through the accounts in the system of the Consolidated Account of the State Treasury according to Article 6 of the Regulation on Uniform Classification of Accounts for the Budget, Extra‐budgetary Funds and Budgets of Municipalities.
It is recommended that the Ministry of Finance ensures the records of the balance and turnover of the monetary transactions that are done through the accounts in the system of the Consolidated Account of the State Treasury according to Article 6 of the Regulation on Uniform Classification of Accounts for the Budget, Extra‐budgetary Funds and Budgets of Municipalities.
3. General Ledger of the State Treasury records the inflow of the funds on the basis of loans and credits from national sources in the amount of 115,000,000.00 €, while the emissions of Treasury bills amount to 29,850,142.00 €. The funds in the amount of 159,858,658.00 €, that are related to the inflow and payment of the Treasury bills were not recorded in the General Ledger of the State Treasury and neither were the costs of the banking services for the transactions of finances based on borrowings abroad in the amount of 996,466.51 €.
We recommend to the Ministry of Finance to record in the General Ledger of the State Treasury the expenditures based on the banking services, as well as the emission and repayment of the securities in gross amount. This should be done using the Ministry's decisions since in such a way additional costs can be avoided. The Compliance Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013 established that the spending units, users of the budget funds have not put their business activities in all their aspects in compliance with the legislation that governs budget operations in Montenegro. Therefore, the relevant auditing board expresses its qualified opinion. Basis for expressing the opinion lies in the following:
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
5
1. Total financing sources were confirmed by the inflow to the foreign currency accounts in the commercial banks and in the liquidity account intended for the inflow of funds from the emission of securities, in the amount of 333,867,350.25 € and by the repayment of the principal of the debt in the amount of 158,591,727.18 €. Thus, the net borrowings on the basis of credits and issued securities amount to 175,525,623.07 €. According to Article 11 paragraph 4 of the Law on the Budget of Montenegro for 2013 (Official Gazette of Montenegro, no. 66/12) the borrowing is not clearly defined, i.e. it is not emphasized whether it is a net borrowing or a gross amount out of which the net borrowing is derived after the principal is paid.
In the annual budget laws the Government of Montenegro and the Ministry of Finance have to define the limit for borrowings of the state more precisely by adding the indication "gross or net borrowing".
2. The audit established that in 2013 the budget spending was overrun by the amount of
261,155,210.71 €. Out of the total expressed overrun of the budget spending, the amount of 238,602,065.82 € was the allowed overrun for payment of interest, repayment of the principal and expenditures expressed for the arrears on the basis of payments related to judicial rulings, expenditures financed from donations and expenditures incurred in the implementation of international contracts. Non‐allowed overrun amounts to 22,553,144.89 € and it is based on expenditures for the purchase of securities and payment of the expenditures from the group of accounts for arrears based on judicial rulings that are above allowed according to Article 12 of the Law on the Budget of Montenegro for 2013 (Official Gazette of Montenegro, no. 66/12).
It is recommended that the fiscal discipline is strengthened further and that the compliance with Article 40 paragraph 1 of the Law on the Budget and Fiscal Responsibility (Official Gazette of Montenegro, no. 20/14) is ensured. This paragraph stipulates that the spending units are obliged to use the funds within the limits defined in the Law on the State Budget.
3. Consolidated data of the spending units show that the revenues made through own
activities the units undertake on the basis of the law, were used for financing expenditures of the spending unit that made such revenues. However, we are hereby indicating to the fact that such funds were used in the spending units up to the amounts made and not in line with the budget constraints defined in the annual budget plan.
We therefore recommend that in the process of planning the budget through the annual budget laws the Government of Montenegro plans the amount of the revenues made through own activities of the spending units and that the revenues thus made are used in compliance with the constraints defined in the annual budget law.
4. Accounting records of the Tax Administration do not ensure the records that would be
harmonized with the Rulebook on Tax Accountancy in terms of the expressed balance in the accounts of the class "1" ‐ accounts of monetary funds, class "3" ‐ accounts of public revenue payers (including the deposit accounts) and class "7" ‐ accounts of public revenues. Tax Administration has not ensured the implementation of the provisions of the Order on the Manner of Payment of Public Revenues, chapter General Provisions, Article 5, which defines the obligation that, after being identified, the payments are transferred from the clearing account to the Central Account of the State Treasury at least once a day, with the obligation to have the zero balance on the clearance accounts at the end of the day.
Tax Administration is recommended to ensure consistent compliance with the legislation in the development of the Tax Final Statements of Accounts, and to harmonize regularly the balance with the General Ledger of the State Treasury and with the Central Bank of Montenegro.
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
6
5. Audit of expenditures recorded in the group of accounts 463 ‐ Repayment of Arrears from
Previous Years ‐ established that the payment of expenditures is not in compliance with the Regulation on Uniform Classification of Accounts for the Budget, Extra‐budgetary Funds and Budgets of Municipalities and that the paid expenditures do not present arrears but extraordinary expenditures that were not planned in the annual budget law.
It is recommended that in the group of accounts 463 ‐ Repayment of Arrears from Previous Years ‐the expenditures for the payment of arrears not planned in the budget are also recorded, because in that case there is no possibility to pay the arrears from the budget lines approved for the expenditures.
6. According to the Statement of Cash Flows III, Pension and Disability Insurance Fund
presented the earmarked revenues in the amount of 243,521,066.72 € and general revenues in the amount of 144,033,315.10 €. Pension and Disability Insurance Fund recorded the earmarked revenues based on the data from the clearing accounts and the data from the "Recipient’s statements". The Proposed Law on the Final Statement of Accounts of the Budget for 2013 stipulates that the earmarked revenues amount to 316,094,340.63 €, while the general revenues amount to 71,460,041.19 €. This is not in line with the data presented by the Pension and Disability Insurance Fund. Article 178 of the Pension and Disability Insurance Act stipulates that the expenditures of the Pension and Disability Insurance Fund are costs based on the contributions for health insurance of the pension users. Law on Budget for 2013 did not plan any expenditure in the group of accounts 423‐7 ‐ Contributions for health insurance of pension users.
State Treasury and the Pension and Disability Insurance Fund should harmonise their data on the amount of the earmarked and general revenues expressed in the Proposed Law on the Final Statement of Accounts of the Budget for 2013. Expenditures based on the contribution for the health care of the pension users should be planned in the annual budget law according to Article 178 of the Pension and Disability Insurance Act and the Budget Law.
7. Item 134 of the Chapter X (ten) of the Directions on State Treasury Operations is not in
compliance with Article 43 of the Budget Law, which is now Article 60 of the Law on the Budget and Fiscal Responsibility.
It is necessary for the Ministry of Finance to harmonize its Directions on State Treasury Operations with the Law on Budget and Fiscal Responsibility.
8. Using the funds of the current budget reserve is not in full compliance with the provisions of
the Budget Law and the Rulebook on Detailed Criteria for the Use of Resources of the Current and Permanent Budget Reserve. The audit identified irregularities in the implementation of Article 3 of the Rulebook on Detailed Criteria for the Use of Resources of the Current and Permanent Budget Reserve. Decisions of the Government and the decisions of the Ministry of Finance were used for reallocation of the funds in such a way that the planned funds were increased by 12,440,685.98 € and reduced by 5,565,879.78 €. The reduction of the reserve funds led to the overrun over the allowed limit of up to 10% of the total planned expenditures the amount of which is reduced and this is not in line with Article 35 of the Budget Law.
Use of the funds of the current budget reserve should be harmonized with the provisions of the Budget Law and the Rulebook on Detailed Criteria for the Use of Resources of the Current and Permanent Budget Reserve.
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
7
9. Audit of the capital budget of the Transport Directorate established that the funds in the budget item 441 ‐ Capital Expenditures were used for paying the expenditures in the amount of 1,793,486.91 €, while the funds from the item of current expenditures were used to pay the expenditures in the amount of 48,548.39 €. This was not planned in the Budget Law for 2013. Audit of the capital budget of the Public Works Directorate established that the funds in the budget item 441 ‐ Capital Expenditures were used for paying the expenditures in the amount of 5,911,815.63 €, which was not planned in the Budget Law for 2013. This is not in compliance with Article 11 paragraph 3 of the Budget Law. Audit of expenditures recorded in the group of accounts 463 ‐ Repayment of Arrears from Previous Years established that the payment of expenditures is not in compliance with the Regulation on Uniform Classification of Accounts for the Budget, Extra‐Budgetary Funds and Budgets of Municipalities and that the paid expenditures do not present arrears but extraordinary expenditures that were not planned in the annual budget law.
It is recommended for the Capital Budget to be executed according to Article 11 paragraph 3 of the Budget Law, which stipulates that no expenditure from the consolidated account of the State Treasury may be paid if it is not approved in the Budget Law.
10. Audit of the management of the state property identified certain deficiencies, some of which
were described in the Report on the Audit of the Proposed Law on the Final Statement of Accounts of the Budget for 2012.
All spending units are recommended to ensure records of the state property in line with the Property Law and secondary legislation.
11. Audit of the public procurement systems identified recurrent deficiencies which are related
to the inadequate planning of procurement, non‐execution of the procedures in line with the legislation and imprecise compilation of the tender documents.
As for the public procurement, the State Audit Institution wishes to draw attention of the spending units to the necessity of making the public procurement system transparent and of complying consistently with the Public Procurement Law.
12. A number of recommendations given in the Report on the Audit of the Proposed Law on the
Final Statement of Accounts of the Budget for 2012 and individual audit reports have not been implemented.
It is recommended that in the forthcoming period the Government of Montenegro and the Ministry of Finance intensify their activities on the implementation of the recommendations given in the Annual Report on the conducted audits of the State Audit Institution for the period October 2012 ‐ October 2013.
13. Audit of the internal financial control systems of the spending units that were subject to the audit revealed that the internal financial control system is not established on the satisfactory level, while the internal audit units started audits of certain processes.
Activities on the establishment of the financial control function and the internal audit function in the spending units have to be intensified in line with the Law on Public Internal Financial Control and internal audit standards.
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
8
REPORT ON THE AUDIT OF THE PROPOSED LAW ON FINAL STATEMENT OF ACCOUNTS OF THE BUDGET OF MONTENEGRO FOR 2013
1. INTRODUCTION State Audit Institution conducted the financial audit and the compliance audit of the Proposed Law on Final Statement of Accounts of the Budget of Montenegro for 2013. Financial audit implies control of reliability and accuracy of financial statements. Compliance audit implies control of the compliance of operations with the legislation regulating the public spending system in Montenegro.
Goal of the financial audit of the Proposed Law on the Final Statement of Accounts of the Budget of Montenegro for 2013 is to express the opinion about the level to which the financial report is true and fair.
Goal of the compliance audit of the Proposed Law on the Final Statement of Accounts of the Budget of Montenegro for 2013 is to express the opinion about compliance with the legislation governing budget operations in Montenegro.
Subject of the audit is the Proposed Law on the Final Statement of Accounts of the Budget of Montenegro for 2013 drafted in line with Article 51 of the Budget Law4, Rulebook on the Unique Classification of Municipal Budgets5 and Rulebook on the Manner of Drafting, Compiling and Filing Financial Statements of the Budget, State Funds and Local Self‐Government Units6. The audit controlled the following: initial and final statement of the Consolidated Account of the Treasury; overview of the deviations from the planned amounts; report on the borrowings that were taken; report on the expenditures from the budget reserves; report on the guarantees given throughout the fiscal year; report on the capital projects; report on the implementation of the programme budget; report on the state debt and issued guarantees; report on the written‐off tax and non‐tax claims and the report on receipts and expenditures of public institutions that are not included in the Consolidated Account of the State Treasury. Audit of the Proposed Law on the Final Statement of Accounts of the Budget of Montenegro for 2013 included the system of planning, recording and reporting in the field of budget spending. Alongside the documentation and reports that were controlled in the Ministry of Finance ‐ State Treasury, the audit included individual financial statements, records and documentation by spending units. Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013 included the control of the following budget spending units: Ministry of Finance ‐ State Treasury (budget management, expenditures for interest, expenditures for debt repayment, given loans and credits), reserves, Ministry of Interior, Police Directorate, Office for Fight against Trafficking in Human Beings, Customs Administration, Tax Administration, Real‐Estate Administration, Misdemeanour bodies, Administration for Prevention of Money Laundering and Terrorism Financing, Statistical Office, Protector of Property Interests of Montenegro, Ministry of Science, State Archives, Public Institution National Museum of Montenegro, Metrology Office, Agency for Protection of Competition, Ministry for Information Society and Telecommunications, Pension and Disability Insurance Fund, Transport Directorate and Public Works Directorate.
4 OGM 40/01, 44/01, 28/04, 71/05, 12/07, 73/08, 53/09, 46/10 and 49/10 5 OGM 35/05, 37/05, 81/05 and 02/13
6 OGM 32/10, 14/11 and 16/13
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
9
2. FINANCIAL STATEMENTS AND COMPUTATIONAL ACCURACY Accountancy system of the Budget of Montenegro is organized on the cash basis and the modified cash basis, which is in line with the Budget Law, Regulation on Uniform Classification of Accounts for the Budget, Extra‐budgetary Funds and Budgets of Municipalities and the Directions on State Treasury Operations7. The accountancy system is based on the records in the General Ledger of the Treasury kept in the Ministry of Finance and the accountancy of the spending units that make the basis for development of the Final Statement of Accounts of the Budget of Montenegro. According to the Rulebook on the Manner of Drafting, Compiling and Filing Financial Statements of the Budget, State Funds and Local Self‐Government Units, financial statement are prepared before 31 March of the current year for the previous year. The following forms are used: Statement of Cash Flows I ‐ economic classification, Statement of Cash Flows II ‐ functional classification, Statement of Cash Flows III, Statement of Cash Flows IV, Statement of Arrears, Consolidated statement of the spending unit that includes public institutions in its structure, Statement on the consolidated budget spending, Statement on the manner of spending funds after the expiry of the fiscal year and the Statement on the manner of spending the funds from the budget reserve. Audit of the Proposed Law on the Final Statement of Accounts of the Budget of Montenegro for 2013 included the audit of the structure of public spending through its execution, as well as the structure of financing and the reasons for the cash deficit. Starting from the data given in the Proposed Law on the Final Statement of Accounts of the Budget for 2013, the budget deficit was expressed in the amount of 201,262,994.62 € while the adjusted deficit was expressed in the amount of 215,701,099.85 €. The audit established that the Government of Montenegro expressed the deficit in compliance with the Budget Law, as presented in the following table: Table 1 – Adjusted deficit for 2013
Plan Rebalance Executed Adjustment (+) Adjustment (‐)
2 3 4 5 6 7
1 Cash inflows 1.161.800.821,01 0,00 1.243.526.719,73 0,00 0,00 1.243.526.719,73
1,1 Taxes 700.430.529,24 0,00 755.696.459,51 0,00 0,00 755.696.459,51
1,2 Contributions for social care 384.217.730,44 0,00 398.494.284,19 0,00 0,00 398.494.284,19
1,3 Grants 0,00 0,00 6.614.007,71 0,00 0,00 6.614.007,71
1,4 Other revenues 72.343.501,32 0,00 74.088.674,11 0,00 0,00 74.088.674,11
1,5 Revenues from repayment of credits 4.809.060,01 0,00 8.633.294,21 0,00 0,00 8.633.294,21
2 Cash payments 1.289.293.668,99 0,00 1.444.789.714,35 996.466,51 0,00 1.445.786.180,86
2,1 Salaries 372.128.611,75 0,00 371.004.370,17 0,00 0,00 371.004.370,17
2,2 Other personal incomes 10.819.302,41 0,00 12.119.032,27 0,00 0,00 12.119.032,27
2,3 Use of goods and services 68.960.334,51 0,00 77.138.116,63 966.466,51 0,00 77.138.116,63
2,4 Current maintenance 20.466.680,05 0,00 20.415.784,17 0,00 0,00 20.415.784,17
2,5 Interests 70.403.607,30 0,00 67.922.775,54 0,00 0,00 67.922.775,54
2,6 Rent 7.875.739,40 0,00 7.928.041,81 0,00 0,00 7.928.041,81
2,7 Subsidies 14.230.000,00 0,00 17.425.749,96 0,00 0,00 17.425.749,96
2,8 Transfers to individuals, non‐governmental and public sector 91.880.698,23 0,00 94.307.026,21 0,00 0,00 94.307.026,21
2,9 Transfers for social care 497.872.727,10 0,00 482.967.420,48 0,00 0,00 482.967.420,48
2,10 Other expenditures and reserves 32.785.988,39 0,00 37.740.485,25 0,00 0,00 37.740.485,25
2,11 Loans given 1.720.000,00 0,00 2.752.781,98 0,00 0,00 2.752.781,98
2,12 Capital expenditures, purchase of securities 67.972.847,85 0,00 85.294.347,28 0,00 0,00 85.294.347,28
2,13 Reduction in liabilities ‐ payments 32.177.132,00 0,00 60.543.190,10 0,00 0,00 60.543.190,10
2,14 Expenditures for the payment of guarantees 0,00 0,00 107.230.592,50 0,00 0,00 107.230.592,50
4 Cash deficit (1‐2) ‐127.492.847,98 0,00 ‐201.262.994,62 ‐996.466,51 0,00 ‐202.259.461,13
5 Sources of cash deficit financing (6+7+8+9) 127.492.847,98 0,00 201.262.994,62 996.466,51 202.259.461,13
6 Net borrowing 119.492.847,99 0,00 175.275.623,07 996.466,51 0,00 176.272.089,58
7 Sale of property 8.000.000,00 0,00 11.948.846,35 0,00 0,00 11.948.846,35
8 Grants 0,00 0,00 0,00 0,00 0,00 0,00
9 Net changes in cash ‐0,01 0,00 14.038.525,20 0,00 0,00 14.038.525,20
10 Net increase/reduction of the arrears (10.2‐10.1) 32.177.132,00 0,00 ‐14.363.926,41 0,00 0,00 ‐14.363.926,41
10,1 Balance of the liabilities on 31 December 2013 0,00 0,00 88.088.796,54 0,00 0,00 88.088.796,54
10,2 Balance of the liabilities on 31 December 2012 32.177.132,00 0,00 73.724.870,13 0,00 0,00 73.724.870,13
11 Adjusted expenditures (2. + 10.) 1.257.116.536,99 0,00 1.459.153.640,76 966.466,51 0,00 1.460.150.107,27
12 Cash inflows (1.) 1.161.800.821,01 0,00 1.243.526.719,73 0,00 0,00 1.243.526.719,73
13 Adjusted cash deficit (12‐11) ‐95.315.715,98 0,00 ‐215.626.921,03 ‐966.466,51 0,00 ‐216.623.387,54
14 Sources of financing deficit (15.+16.+17.+18.+19.) 95.315.715,98 0,00 215.626.921,03 966.466,51 0,00 216.623.387,54
15 Net borrowing 119.492.847,99 0,00 175.275.623,07 966.466,51 0,00 176.272.089,58
16 Sale of property 8.000.000,00 0,00 11.948.846,35 0,00 0,00 11.948.846,35
17 Grants 0,00 0,00 0,00 0,00 0,00
18 Liabilities to suppliers ‐32.177.132,00 0,00 14.363.926,41 0,00 0,00 14.363.926,41
19 Net changes in cash ‐0,01 0,00 14.038.525,20 0,00 0,00 14.038.525,20
Adjusted deficit for 2013
1
Final Statement of Accounts Adjustments of executionBalanceDescription
7 OGM 80/08, 02/09, 45/10, 15/11, 17/12 and 16/13
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
10
Budget deficit was expressed in line with Article 14 of the Law on the Budget and Fiscal Responsibility (OGM, 20/14) and the State Audit Institution did not establish any materially significant mistakes that would require changes in the expressed results. We would like to note that the General Ledger of the State Treasury did not record the costs of banking services in the amount of 996,466.51 € because they were directly deducted from the funds withdrawn by the banks. The expenditures for the banking services and the negative exchange differences, deficit are adjusted for these funds and the inflow from the foreign borrowings is increased by the same amount as presented in the table above. In the Proposed Law on the Final Statement of Accounts of the Budget of Montenegro for 2013 the amount of the capital expenditures is increased. These expenditures used to be presented as the repayments of debts in the past. Thus, the way they are presented now is a result of the implementation of the State Audit Institution's recommendation about the methodology for presenting the deficit from the previous year. The audit established that the Government of Montenegro financed the cash deficit of 201,262,994.62 € from the following sources:
Net borrowing ........................................ 175,275,623.07 €,
Sale of property ..................................... 11,948,846.35 € and
Reducing its deposit ............................... 14,038,525.20 €. The deficit on the modified cash basis in the amount of 215,626,921.03 € was financed from the following sources:
Net borrowing ........................................ 175,275,623.07 €,
Sale of property ..................................... 11,948,846.35 €
Reducing its deposit ............................... 14,038,525.20 € and
Net increase of arrears ....................... 14,363,926.41 €.
Figure 1 – Financing modified deficit
2.1. Compliance audit of the cash flow State Audit Institution checked the compliance of the budget revenues and expenditures and financing transactions with the data expressed in the Central Bank of Montenegro. It was done by checking the cash inflows and outflows through the accounts intended for the fiscal operations of the state. The check included the following accounts:
Treasury General Account and
Central account of the State Treasury
Treasury General Account ‐ According to the Directions on State Treasury Operations, item 45‐ the Ministry of Finance opened the main bank account, number 9070000000083001‐19. Out of the funds planned in the annual budget money is paid to and withdrawn from this account.
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
11
Central account of the State Treasury is the account of the State Treasury number 907000000008320198, used for collection and distribution of public revenues in line with the Order on the Manner of Payment of Public Revenues. The accounts used for collection of public revenues (416 accounts according to the Order and the four clearing accounts, through which the funds are transferred to the Central account of the State Treasury by the spending units that collect public revenues ‐ Customs Administration, Tax Administration, Ministry of Interior and Police Directorate. The audit established that the inflow and outflow of the funds expressed in the Central Account of the State Treasury amounted to 1,345,882,236.74 €. The table below shows the structure of inflow and outflow of funds:
Table 2 –Central Account of the State Treasury
CENTRAL ACCOUNT OF THE STATE TREASURY
Unrecorded cash 3,260,552.62 1,226,348,206.36 Treasury General Account
Tax Administration 919,005,317.80 3,260,552.62 Municipality of Herceg Novi
Customs Administration 368,994,673.62 7,198,449.13 Radio and Television of Montenegro
Ministry of Interior 8,599,251.13 25,342,823.37 Equalization Fund
Police Directorate 4,157,175.30 40,562,155.30 Local self‐government ‐
corresponding taxes Accounts of the ministries, other bodies and judiciary 41,865,266.27 43,134,448.00 Other
TOTAL INFLOW 1,345,882,236.74 35,601.99 Errors
BALANCE ‐0.03 1,345,882,236.77 TOTAL OUTFLOW
Funds collected by the units that collect revenues amount to 1,342,621.84 €, out of which the Tax Administration collected 919,005,317.80 €, Customs Administration collected 368,994,673.62 €, Ministry of Interior collected 8,599,251.13 €, Police Directorate collected 4,157,175.30 €, while other units collected 41,865,266.27 €. The amount of 3,260,552.62 € is the cash that was not recorded as a cash deposit of the Government of Montenegro from the previous period and it was used for financing public spending in 2013. The total inflow of funds to the Central Account of the State Treasury in the amount of 1,345,882,236.74 € was distributed as follows: the amount of 1,226,348,206.36 € to the Treasury General Account; 3,260,552.62 € to the Municipality of Herceg Novi as a financial support of the Government of Montenegro; 7,198,449.13 € to the Radio and Television of Montenegro; 25,342,823.37 € to the Equalization Fund; 40,562,155.30 € to the local self‐government since this was the amount of their corresponding taxes; 43,134,448.00 € to other users; while errors in the records amounted to 35,601.00 €. The funds in the amount of 7,198,449.13 were allocated to the Radio and Television of Montenegro through a direct payment from the Central account of the State Treasury and there was no records of this amount on the side of the revenues and expenditures in the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013. In such a way the level of expressed public spending was reduced. It is worthwhile mentioning that by including this transaction into the Proposed Law on the Final Statement of Accounts of the Budget of Montenegro for 2013 does not increase the level of deficit, but only the level of public spending and therefore of the comprehensiveness of the budget. We recommend that the Government of Montenegro and the Ministry of Finance consider the option of planning the funds of the Radio and Television of Montenegro through the annual law on budget, as a transfer to institutions, individuals, non‐governmental and public sector. We recommend that they realize the planned funds through the General Ledger of the State Treasury and that they report about this spending within the Law on the Final Statement of Accounts of the State Budget of Montenegro. The funds allocated to the Municipality of Herceg Novi as financial support, were directly paid from the Central Account of the State Treasury and therefore they were not recorded in the Treasury
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
12
General Account and the Proposed Law on the Final Statement of Accounts of the Budget of Montenegro for 2013. However, the same amount from previous years was ensured through accumulation of cash from the revenues generated from land lease, a part of which belonged to the Municipality of Herceg Novi. This puts into doubt the consistency of the documentation authorizing the Central Bank of Montenegro to make the payment to the Municipality of Herceg Novi, and not its records nor the rights of the end user. Therefore the State Audit Institution did not make any adjustment of the expressed deficit by the amount of 3,260,552.62 €. Turnover of the funds presented on the debit side of the General Ledger of the State Treasury ‐ CTA (Consolidated Treasury Account) amounted to 1,610,225,705.13 €, out of which 20,882,788.91 € are the deposits from the previous year; 1,255,476,388.36 € are unpaid revenues; 188,516,385.86 € are loans and credits from the country and 145,350,142.00 € are loans and credits from abroad. Payments recorded in the General Ledger of the State Treasury amount to 1,603,381,441.53 €, while the cash in the end of the period amounts to 6,844,263.60 €. This amount of cash was confirmed by checking all accounts that were opened with the Central Bank of Montenegro and by random sample check in the Erste Bank where there are 12 accounts/sub‐accounts under the registry number of the Ministry of Finance. The table below shows the inflows and outflows of funds recorded in the General Ledger of the State Treasury ‐ CTA:
Table 3 –General Ledger of the State Treasury
+
Transferred balance 20,882,788.91 371,004,370.17 Gross salaries and contributions paid by the employer
Transfer ‐ Central account of the State Treasury 1,226,348,206.36 67,922,775.54 Interests Other recorded as inflow 29,128,182.00 12,119,032.27 Other personal incomes Loans and credits from abroad 188,516,385.86 23,613,640.46 Other expenditures Loans and credits from the country 145,350,142.00 27,269,260.95 Expenditures for material and servicesTOTAL INFLOW + opening balance 1,610,225,705.13 20,415,784.17 Expenditures for current maintenance
49,868,855.68 Expenditures for services 7,928,041.81 Rent
17,425,749.96 Subsidies14,79,096.09 Other health care rights 7,862,525.36 Other health insurance rights
383,189,899.52 Pension and disability insurance rights64,036,543.99 Social care rights 13,086,355.52 Funds for redundancies 1,485,645.23 Other transfers
92,821,380.98 Transfers to institutions, individuals, NGOs
69,860,622.71 Capital expenditures 2,752,781.98 Loans and credits
174,025,451.75 Repayment of debt 107,230,592.50 Repayment of guarantees
60,543,190.10 Repayment of liabilities from previous years
406,000.00 Permanent budget reserve 13,720,844.79 Current budget reserve
BALANCE 6,844,263.60 1,603,381,441.53 TOTAL OUTFLOW Total expressed inflows and outflows of funds in the General Ledger of the State Treasury ‐ CTA correspond to the revenues and expenditures expressed in the Proposed Law on the Final Statement of Accounts of the Budget of Montenegro for 2013, except for the adjustment in the capital expenditures and repayment of debts for the amount of 15,433,724.57 €, which was used to adjust the deficit in the Proposed Law on the Final Statement of Accounts of the Budget of Montenegro for 2013. Unpaid revenues in the amount of 1,589,342,916.33 € (1,610,225,705.13 € ‐ 20,882,788.91 €) show that the structure of collection by revenue units corresponds to the funds recorded in the Treasury General Account, which is presented in the table below:
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
13
Table 4‐ Structure of the unpaid revenues by revenue units
Ec.cl. Description Final Statement of Accounts for 2013
Tax Administration
Customs Administration
Ministry of Finance and other institutions
Ministry of Interior
Police Directorate
TOTAL REVENUE UNITS
7 Receipts 1,589,342,916.33 851,276,309.75 323,171,148.50 403,797,648.29 6,940,634.49 4,157,175.30 1,589,342,916.33
71+73 Source revenues 1,236,912,712.02 851,276,309.75 323,171,148.50 51,367,443.98 6,940,634.49 4,157,175.30 1,236,912,712.02
71 Current revenues 1,228,279,417.81 851,276,309.75 323,171,148.50 42,734,149.77 6,940,634.49 4,157,175.30 1,228,279,417.81
711 Taxes 755,696,459.51 432,657,798.56 323,038,660.95 ‐ ‐ ‐ 755,696,459.51
712 Contributions 398,494,284.19 398,494,284.19 ‐ ‐ ‐ ‐ 398,494,284.19
713 Fees 27,179,432.65 12,811,489.90 74,283.92 10,330,902.63 3,825,401.20 137,355.00 27,179,432.65
714 Compensations 13,233,490.18 6,423,836.18 ‐ 6,809,654.00 ‐ ‐ 13,233,490.18
715 Other revenues 33,675,751.28 888,900.92 58,203.63 25,593,593.14 3,115,233.29 4,019,820.30 33,675,751.28
72 Receipts from the sale of property
11,948,846.35 ‐ ‐ 11,948,846.35 ‐ ‐ 11,948,846.35
73 Receipts from the repayment of debts
8,633,294.21 ‐ ‐ 8,633,294.21 ‐ ‐ 8,633,294.21
74 Grants and transfers
6,614,007.71 ‐ ‐ 6,614,007.71 ‐ ‐ 6,614,007.71
75 Loans and credits 333,867,350.25 ‐ ‐ 333,867,350.25 ‐ ‐ 333,867,350.25
TOTAL 1,589,342,916.33 851,276,309.75 323,171,148.50 403,797,648.29 6,940,634.49 4,157,175.30 1,589,342,916.33
2.2. Sources for deficit financing
Sources for deficit financing are expressed for the cash and modified cash deficits. Sources for financing cash deficit are expressed through net loans, inflows from the sale of property and reduction of the deposit, while financing of the modified cash deficit was enlarged by net change of the arrears towards suppliers. Structure of the sources for deficit financing on the cash basis is presented in the following table: Table 5‐ Deficit on the cash basis for 2013
The deficit expressed on the cash basis was financed from the national sources of financing in the amount of 65,111,692.50 €; from the foreign financing sources in the amount of 122,112,776.92 €
Plan
Plan presented the Final statement accounts
Executed Adjustment (+) Adjustment (‐) Audit determined condition
2 4 6 7 8 9 = 6+7+8
Cash deficit/surplus ‐127,492,847.98 ‐127,492,847.89 ‐201,262,994.62 0.00 0.00 ‐201,262,994.62
Sources of cash deficit financing 127,492,847.98 127,492,847.89 201,262,994.62 0.00 0.00 201,262,994.62
Domestic financing sources without deposit ‐15,800,000.00 ‐15,800,000.00 65,111,692.50 0.00 0.00 65,111,692.50
Net credit borrowings ‐23,800,000.00 ‐23,800,000.00 47,792,704.15 0.00 0.00 47,792,704.15
Increase of debt on the basis of credit 0.00 0.00 115,500,000.00 115,500,000.00
Repayment of the principal 23,800,000.00 23,800,000.00 67,707,295.85 67,707,295.85
Net borrowings of the securities emissions 0.00 0.00 5,370,142.00 0.00 0.00 5,370,142.00
Securities emissions 0.00 0.00 29,850,142.00 159,858,658.00 189,708,800.00
Repayment of the principal 0.00 0.00 24,480,000.00 159,858,658.00 184,338,658.00
Sale of property 8,000,000.00 8,000,000.00 11,948,846.35 0.00 0.00 11,948,846.35
Sale of non‐financial assets 8,000,000.00 8,000,000.00 1,657,197.26 0.00 1,657,197.26
Sale of financial property assets 0.00 0.00 10,291,649.09 10,291,649.09
Net changes in cash ‐0.01 ‐0.10 14,038,525.20 0.00 0.00 14,038,525.20
Foreign financing 143,292,847.99 143,292,847.99 122,112,776.92 0.00 122,112,776.92
Net credit borrowings 143,292,847.99 143,292,847.99 42,112,776.92 0.00 0.00 42,112,776.92
Increase of debt on the basis of credit 205,992,847.99 205,992,847.99 108,517,208.25 108,517,208.25
Repayment of the principal 62,700,000.00 62,700,000.00 66,404,431.33 66,404,431.33
Net borrowings of the securities emissions 0.00 0.00 80,000,000.00 0.00 0.00 80,000,000.00
Securities emissions 0.00 0.00 80,000,000.00 80,000,000.00
Repayment of the principal 0.00 0.00 0.00 0.00
Grants 0.00 0.00 0.00 0.00 0.00
DESCRIPTION
1
DEFICIT ON THE CASH BASIS FOR 2013 FINAL STATEMENT OF ACCOUNTS FOR 2013
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
14
and from the cash deposits in the amount of 14,038,525.20 €. National financing sources were ensured from the credits in the amount of 67,707,295.85 €; from securities emissions in the amount of 5,370,142.00 € and from the sale of property in the amount of 11,948,846.35 €. Foreign financing sources were ensured in the total amount of 122,112,776.92 €, out of which 42,112,776.92 € from the credits and 80,000,000.00 € from securities emissions. It has to be taken into account that the securities emissions in the country were not recorded as gross but as set‐off amount, and therefore there are no records of the overall turnover. This is why the State Audit Institution adjusted the turnover of securities in the country by the amount of 159,858,658.00 €. This adjustment did not have any impact on the net borrowings or the change in the amount of the expressed deficit. According to Article 11 paragraph 4 of the Law on the Budget of Montenegro for 2013 (Official Gazette of Montenegro, no. 66/12) the borrowing is not clearly defined, i.e. it is not emphasized whether it is a net borrowing or a gross amount out of which the net borrowing is derived after the principal is paid. In the annual budget laws the Government of Montenegro and the Ministry of Finance have to define more precisely the boundary for the borrowings of the state by adding the indication "gross or net borrowing".
Receipts from the sale of property recorded in the amount of 11,948,846.35 €, as direct payments to the Treasury General Account were confirmed in the amount of 8,041,721.66 €, while the rest is directed to the Budget of Montenegro in the amount of 3,907,124.69 € from the Central Account of the State Treasury through the revenue module. Modified cash deficit was adjusted in line with the Budget Law by the net change in the arrears that are not borrowings in the amount of 14,363,926.83 € and with the following structure: Table 6‐ Net change in arrears
No. DESCRIPTION Liabilities as of 31 Dec 2011
Difference Liabilities as of 31 Dec 2012
Difference Liabilities as of 31 Dec 2013
1 2 3 4 = 5‐3 5 6 = 7‐5 7
1 Liabilities for current expenditures (1,1+1,2+1,3)
13,356,757.00 3,765,974.00 17,122,731.00 ‐1,193,119.68 15,929,611.32
1.1 Liabilities for gross salaries and
contributions paid by the employer 487,009.00 1,423,859.00 1,910,868.00 ‐338,627.81 1,572,240.19
1.2 Liabilities for other personal incomes 486,652.00 514,112.00 1,000,764.00 356,832.31 1,357,596.31
1.3 Liabilities for other current
expenditures 12,383,096.00 1,828,003.00 14,211,099.00 ‐1,211,324.18 12,999,774.82
2 Liabilities for transfers for social care 41,426,322.00 6,679,359.00 48,105,681.00 7,600,397.99 55,706,078.99
3 Liabilities for transfers to institutions, individuals and credits
5,664,403.00 1,623,578.00 7,287,981.00 7,127,819.67 14,415,800.67
4 Liabilities for capital expenditures 400,079.00 249,678.00 649,757.00 ‐285,495.15 364,261.85
5 Liabilities for loans and credits 563,979.00 ‐5,259.00 558,720.00 ‐555,719.00 3,001.00
6 Liabilities for debt repayment 477,856.00 ‐477,856.00 0.00 1,670,043.00 1,670,043.00
7 Liabilities from reserves 0.00 0.00 0.00 0.00 0.00
8 Balance of the liabilities in the end of the year (1+2+3+4+5+6+7)
61,889,396.00 11,835,474.00 73,724,870.00 14,363,926.83 88,088,796.83
The expressed difference in the balance of arrears was confirmed by the control of the payments from the budget related to the expenditures for arrears. At the same time the increase in the liabilities for the expenditures expressed according to the economic classification was noted, as well as the net change of liabilities confirmed in the amount presented in the above table. The audit established the data that are presented in the table below:
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
15
Table 7‐ Records of arrears RECORDS OF ARREARS
DESCRIPTION amount amount
Balance on 31 December 2012 73,724,870.15
Repayment of arrears (reduction) 66,814,689.64
Increase in arrears 81,178,616.03
Balance on 31 December 2013 88,088,796.54 Opening balance of arrears reduced by repayment of arrears and increased by increase arrears results in the amount of 88,088,796.54 €. If the expenditures expressed on the cash basis are adjusted by the same amount, the result is the amount of the adjusted deficit as presented in the Proposed Law on the Final Statement of Accounts of the Budget of Montenegro for 2013. Table 8‐ Adjusted Cash Deficit
ADJUSTED CASH DEFICIT
Budget incomes 1,243,526,719.73
Adjusted budget expenditures 1,459,153,640.74
Cash deficit ‐215,626,921.01 We would like to emphasise that the State Audit Institution cannot support the statements expressed in the statement of reasons enclosed to the Proposed Law on the Final Statement of Accounts of the Budget of Montenegro for 2013 on the page 136 related to the amendments to the provisions governing the calculations of the surplus/deficit. We would like to note that the adjustment of expenditures is reduced by repayment of liabilities and increased by arrears and therefore the result is adjusted by the net effect. If liabilities are repaid next year they will reduce the expenditures, which will be contrary to the statement that the deficit will be increased two times. This opinion of the State Audit Institution is supported through the processing of the data that were analysed using the flows expressed as the changes in the balance sheet on the basis of the available data that are mostly based on the cash transactions and partly expressed accountancy categories related to the changes in the records of arrears that are not borrowings. Data on the changes in the balance sheet are presented in the table below: Table 9‐ Balance sheet Non‐financial assets 73,345,500.93 73,060,006.19 73,060,006.19
Purchase of the fixed assets and inventories 85,294,347.28 85,008,852.54 85,008,852.54 for cash 85,294,347.28 85,008,852.54 85,008,852.54Grants 0.00 0.00 0.00
Reduction of the fixed assets and inventories 11,948,846.35 11,948,846.35 11,948,846.35 Sale for cash 11,948,846.35 11,948,846.35 11,948,846.35 Depreciation 0.00 0.00 0.00
Financial assets ‐11,285,743.22 ‐11,841,462.18 ‐11,841,462.18
Cash ‐14,038,525.20 ‐14,038,525.20 ‐14,038,525.20 Increase 1,749,201,574.33 1,749,201,574.33 1,749,201,574.33 Reduction 1,763,240,099.53 1,763,240,099.53 1,763,240,099.53
Liabilities 2,752,781.98 2,197,063.02 2,197,063.02 Loans given 2,752,781.98 2,197,063.02 2,197,063.02Other loans 0.00 0.00 0.00
Liabilities 189,639,549.46 189,639,549.46 189,639,549.46
Loans and credits 175,275,623.07 175,275,623.07 175,275,623.07 Credits taken and the emissions of securities 493,726,008.25 493,726,008.25 493,726,008.25Repayment of credits and the emissions of
securities due 318,450,385.18 318,450,385.18 318,450,385.18 Arrears 14,363,926.39 14,363,926.39 14,363,926.39 Net increase in liabilities 81,178,616.03 81,178,616.03 81,178,616.03 Net reduction in liabilities 66,814,689.64 66,814,689.64 66,814,689.64
Cash deficit ‐201,262,994.62 ‐14,363,926.39
Adjusted cash deficit ‐215,626,921.01 87,205,915.56
Net value ‐128,421,005.45
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
16
Repayment of Arrears from Previous Years in the group of accounts 463 is used for extraordinary expenditures and not for the real repayment of the liabilities. This increases the discretionary spending beyond the legally defined limit. Expenditures in the group of accounts 463 should include the repayment of the arrears for the expenditures that were not planned in the budget, because there is no possibility to pay the arrears from the budget lines approved for the expenditures.
2.3 Budgetary Overrun 66/12). Table 10‐ Budgetary Overrun
DESCRIPTION Amount
TOTAL OVERRUN 261,155,210.73
Non‐allowed overrun 22,553,144.91
Non‐allowed overrun ‐ repayment of arrears from previous years (463) 21,427,780.67
Expenditures for the purchase of securities 1,125,364.24
Allowed overrun 238,602,065.82
Allowed overrun ‐ interests 20,767,671.43
Allowed overrun ‐ repayment of the debt principal and liabilities from the previous period 201,161,862.46
Allowed overrun ‐ grants 4,223,126.62
Allowed overrun ‐ international agreements 12,449,405.31
The table below shows budget overrun by expenditure lines expressed in the economic classification:
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
17
Table 11‐ Budget overrun according to economic classification
4 Expenditures 1,375,793,668.9 1,603,381,441.1 227,587,772.1 261,155,210.7 22,553,144.9 238,602,065.8
41 Current Expenditures 583,010,810.5 597,567,510.6 14,556,700.0 29,544,766.7 0.0 29,544,766.7
411 Gross salaries and contributions paid by the employer 373,750,011.1 371,004,370.1 ‐2,745,640,.99 0.0 0.0 0.0
412 Other personal incomes 13,822,508.6 12,119,032.1 ‐1,703,476.45 8,436.9 0.0 8,436.9
412 Others 8,465,040.6 6,993,920.9 ‐1,471,119.74 8,436.9 0.0 8,436.9
413 Expenditures for material 28,561,571.4 27,269,260.6 ‐1,292,310.80 7,347.2 0.0 7,347.2
4131 Administrative materials 5,044,572.6 4,700,443.3 ‐344,129.29 2,983.18 0.0 2,983.1
4132 Material for health care 674,988.0 655,880.1 ‐19,107.88 3,709.87 0.0 3,709.8
4134 Expenditures for energy 7,166,747.5 6,830,636.7 ‐336,110.86 101.12 0.0 101.1
4135 Expenditures for fuel 10,169,415.5 9,714,319.8 ‐455,095.73 553.0 0.0 553.0
414 Expenditures for services 46,985,009.6 49,868,855.7 2,883,846.09 8,463,428.0 0.0 8,463,428.0
4141 Business trips 5,986,032.9 5,632,062.6 ‐353,970.29 12,122.2 0.0 12,122.2
414 Entertainment 754,162.0 716,769.4 ‐37,392.55 8,622.9 0.0 8,622.9
4143 Communication services 6,509,492.7 6,275,831.5 ‐233,661.16 1,723.0 0.0 1,723.0
4145 Transport services 1,096,449.0 1,065,891.0 ‐30,557.99 65.0 0.0 65.0
4147 Consultancy services, projects and studies 18,722,218.5 23,389,267.5 4,667,049.0 8,147,266.7 0.0 8,147,266.7
4148 Training services 1,048,512.7 823,888.0 ‐224,624.63 21,742.4 0.0 21,742.4
4149 Other services 7,296,375.5 6,940,694.2 ‐355,681.32 271,885.5 0.0 271,885.5
415 Expenditures for current maintenance 20,847,543.3 20,415,784.1 ‐431,759.14 8,998.2 0.0 8,998.2
4152 Current maintenance of construction buildings 1,397,007.9 1,315,706.7 ‐81,301.18 8,494.9 0.0 8,494.9
4153 Current maintenance of the equipment 2,605,191.2 2,255,542.9 ‐349,648.23 503.3 0.0 503.3
416 Interests 47,182,534.5 67,922,775.5 20,740,241.0 20,767,671.4 0.0 20,767,671.4
4161 Interests to residents 5,364,000.0 8,403,067.8 3,039,067.8 3,066,498.2 0.0 3,066,498.2
4162 Interests to non‐residents 41,818,534.5 59,519,707.6 17,701,173.1 17,701,173.1 0.0 17,701,173.1
417 Rent 8,109,421.5 7,928,041.8 ‐181,379.73 0.0 0.0 0.0
418 Subsidies 17,501,512.2 17,425,749.9 ‐75,762.26 0.0 0.0 0.0
419 Other expenditures 26,250,698.1 23,613,640.4 ‐2,637,057.69 288.89 0.0 288,884.8
4191 Expenditures based on payments of service contracts 5,503,857.1 5,272,820.1 ‐231,036.99 48,516.1 0.0 48,516.1
419 Software development and maintenance 5,466,724.7 5,305,145.8 ‐161,578.95 239,041.1 0.0 239,041.1
4199 Other 4,310,781.5 3,938,491.9 ‐372,289.61 1,327.5 0.0 1,327.5
42 Transfers for social care 485,569,147.9 482,967,420.4 ‐2,601,727.46 0.0 0.0 0.0
421 Social care rights 64,071,104.9 64,036,543.9 ‐34,560.96 0.0 0.0 0.00
422 Funds for redundancies 14,836,537.5 13,086,355.5 ‐1,750,182.03 0.0 0.0 0.0
423 Rights in the field of pension and disability insurance 383,999,409.3 383,189,899.5 ‐809,509.80 0.0 0.0 0.0
424 Other health care rights 14,792,096.1 14,792,096.0 ‐0.03 0.0 0.0 0.0
425 Other health insurance rights 7,870,000.0 7,862,525.3 ‐7,474.64 0.0 0.0 0.0
43 Transfers to institutions, individuals, non‐governmental and public 94,618,839.2 94,307,026.2 ‐311,813.05 81,545.0 0.0 81,545.0
431 Transfers to institutions, individuals, non‐governmental and public 93,133,166.2 92,821,380.9 ‐311,785.23 81,545,07 0.0 81,545.0
432 Other transfers 1,485,673.0 1,485,645.2 ‐27.82 0.0 0.0 0.0
44 Capital expenditures 76,387,587.7 69,860,622.7 ‐6,526,965.02 8,939,255.7 1,125,364.2 7,813,891.5
441 Capital expenditures 76,387,587.7 69,860,622.7 ‐6,526,965.02 8,939,255.7 1,125,364.2 7,813,891.5
4411 Expenditures for infrastructure of general importance 27,101,400.0 18,675,619.8 ‐8,425,780.16 2,210,829.3 0.00 2,210,829.3
4412 Expenditures for local infrastructure 7,331,00 9,811,090.4 2,480,090.4 2,889,856.2 0.00 2,889,856.2
4413 Expenditures for construction buildings 33,848,265.6 32,134,503.3 ‐1,713,762.27 1,712,622.6 0.00 1,712,622.6
4415 Expenditures for equipment 6,498,857.6 5,672,723.6 ‐826,134.02 105,284.0 0.00 105,284.0
4416 Expenditures for investment maintenance 902,864.4 1,738,301.8 835,437.4 895,299.2 0.00 895,299.2
4418 Expenditures for the purchase of securities 0.0 1,125,364.2 1,125,364.2 1,125,364.2 1,125,364.2 0.0
45 Loans and credits 2,766,784.5 2,752,781.9 14,002.52 0.0 0.0 0.0
451 Loans and credits 2,766,784.5 2,752,781.9 ‐14,002.52 0.0 0.0 0.0
46 Repayment of debts 119,209,623.2 341,799,234.3 222,589,611.1 222,589,643.1 21,427,780.6 201,161,862.4
461 Repayment of debt 86,500,000.0 174,025,451.7 87,525,451.7 87,525,451.7 0.0 87,525,451.7
4611 Repayment of securities and credits to residents 23,800,000.0 107,621,020.4 83,821,020.4 83,821,020.4 0.00 83,821,020.4
4612 Repayment of securities and credits to non‐residents 62,700,000.0 66,404,431.3 3,704,431.3 3,704,431.3 0.00 3,704,431.3
462 Repayment of guarantees 0.0 107,230,592.5 107,230,592.5 107,230,592.5 0.0 107,230,592.5
4621 Repayment of guarantees in the country 0.0 4,453,321.5 4,453,321.5 4,453,321.5 00 4,453,321.5
4622 Repayment of guarantees abroad 0.0 102,777,270.9 102,777,270.9 102,777,270.9 0.00 102,777,270.9
463 Repayment of arrears from the past 32,709,623.2 60,543,190.1 27,833,566.8 27,833,598.8 21,427,780.6 6,405,818.2
4630 Repayment of arrears from the past 32,709,623.2 60,543,190.1 27,833,566.8 27,833,598.8 21,427,780.6 6,405,818.2
47 Reserve 14,230,875.7 1 ‐104,030.99 0.0 0.0 0.0
Amount of non‐
overrun
Amount of
overrun
Econom
classificatiDESCRIPTI
Realized in
godiniDifference
Overrun expressed
spending units
Planned in 2013
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
18
Overrun derived from the summary table complied according to the economic classification that presents the aggregate data for all budget users, shows that the overrun amounts to 227,587,772.15€. This was confirmed also by the individual expenditure lines and by spending units, which shows that the summary expenditure control, on the level of the budget, was not sufficient to stop certain overrun by spending units and expenditure lines. In 2013 the number of spending units that recorded the budget overrun was reduced, as well as the number of expenditure lines that recorded overrun. This shows that there are improvements in the fiscal discipline. The growth of payments based on court rulings are concerning since the payments on this basis increased in 2013 in comparison to 2012. It is recommended that the fiscal discipline is strengthened further and that Article 40 paragraph 1 of the Law on the Budget and Fiscal Responsibility (Official Gazette of Montenegro, no. 20/14) is complied with. This article stipulates that the spending units are obliged to use the funds within the boundaries defined in the Budget Law. 2.4. Scope of Public Spending Audit of the consolidated report established that a number of spending units ensures and uses their own funds according to Article 7 paragraph 1 of the Law on the Budget of Montenegro for 2013 (Official Gazette of Montenegro, no. 66/12), which reads: "The revenues generated by spending unit through its own activities on the basis of its legal authorities shall be used solely for financing expenditures of that particular spending unit up to the amount planned in the budget.” Consolidated data of the spending units show that the revenues generated through their own activities, based on the law, were used for financing expenditures of the spending units that generated them. However, we are hereby indicating to the fact that such funds were used in the spending units up to their full amount and not in line with the budget constraints defined in the annual budget plan. If direct financing from the Central Account of the State Treasury is added to that, the system of public spending is by 41,051,612.74 € higher. Spending units which generated their own revenues and received direct financing from the Central Account of the State Treasury are as follows: public institutions within the Ministry of Culture, public institutions within the Ministry of Education, public institutions within the Health Fund, Police Academy, Examination Centre, Montenegrin National Theatre, Royal Theatre "Zetski Dom", National Tourism Organisation, Montenegrin Academy of Arts and Sciences, veterinary clinics, Radio and Television of Montenegro, Public institution Coastal Management Zone, Union of Municipalities. Increase in the level of public spending by the expenditures financed from the revenues generated through the own activities of the spending units does not influence the level of the expressed deficit, but the expressed level of public spending is significantly adjusted. Therefore, the State Audit Institution consolidated the data with the adjustments on the side of receipts and on the expenditure side in order to ensure more accurate and more comprehensive picture of the level of public spending. That is presented in the table below:
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
19
Table 12 – Consolidated Public Spending and Adjusted Deficit for 2013
Plan Rebalance Executed Adjustment (+) Adjustment (‐)
2 3 4 5 6 7
1 Cash inflows 1.161.800.821,01 0,00 1.243.526.719,73 41.051.612,74 0,00 1.284.578.322,47
1,1 Taxes 700.430.529,24 0,00 755.696.459,51 7.503.045,77 0,00 763.199.505,28
1,2 Contributions for social care 384.217.730,44 0,00 398.494.284,19 0,00 0,00 398.494.284,19
1,3 Grants 0,00 0,00 6.614.007,71 2.326.074,70 0,00 8.940.082,41
1,4 Other revenues 72.343.501,32 0,00 74.088.674,11 31.144.514,27 0,00 105.233.188,38
1,5 Revenues from repayment of credits 4.809.060,01 0,00 8.633.294,21 77.978,00 0,00 8.711.272,21
2 Cash payments 1.289.293.668,99 0,00 1.444.789.714,35 42.189.828,99 0,00 1.486.979.543,34
2,1 Salaries 372.128.611,75 0,00 371.004.370,17 1.890.198,92 0,00 372.894.569,09
2,2 Other personal incomes 10.819.302,41 0,00 12.119.032,27 2.953.173,81 0,00 15.072.206,08
2,3 Use of goods and services 68.960.334,51 0,00 77.138.116,63 20.273.366,24 0,00 97.411.482,87
2,4 Current maintenance 20.466.680,05 0,00 20.415.784,17 1.535.947,77 0,00 21.951.731,94
2,5 Interests 70.403.607,30 0,00 67.922.775,54 24.262,90 0,00 67.947.038,44
2,6 Rent 7.875.739,40 0,00 7.928.041,81 118.541,48 0,00 8.046.583,29
2,7 Subsidies 14.230.000,00 0,00 17.425.749,96 0,00 0,00 17.425.749,96
2,8 Transfers to individuals, non‐governmental and public sector 91.880.698,23 0,00 94.307.026,21 11.418.639,97 0,00 105.725.666,18
2,9 Transfers for social care 497.872.727,10 0,00 482.967.420,48 8.834,29 0,00 482.976.254,77
2,10 Other expenditures and reserves 32.785.988,39 0,00 37.740.485,25 2.511.989,42 0,00 40.252.474,67
2,11 Loans given 1.720.000,00 0,00 2.752.781,98 107.154,45 0,00 2.859.936,43
2,12 Capital expenditures, purchase of securities 67.972.847,85 0,00 85.294.347,28 1.302.364,74 0,00 89.596.712,02
2,13 Reduction in liabilities ‐ payments 32.177.132,00 0,00 60.543.190,10 45.355,00 0,00 60.588.545,10
2,14 Expenditures for the payment of guarantees 0,00 0,00 107.230.592,50 0,00 0,00 107.230.592,50
4 Cash deficit (1‐2) ‐127.492.847,98 0,00 ‐201.262.994,62 ‐1.138.216,25 0,00 ‐202.401.210,87
5 Sources of cash deficit financing (6+7+8+9) 127.492.847,98 0,00 201.262.994,62 ‐1.138.216,25 202.401.210,87
6 Net borrowing 119.492.847,99 0,00 175.275.623,07 1.045.028,62 0,00 176.320.651,69
7 Sale of property 8.000.000,00 0,00 11.948.846,35 11.636,77 0,00 11.960.483,12
8 Grants 0,00 0,00 0,00 0,00 0,00 0,00
9 Net changes in cash ‐0,01 0,00 14.038.525,20 81.550,86 0,00 14.120.076,06
10 Net increase/reduction of the arrears (10.2‐10.1) 32.177.132,00 0,00 ‐14.363.926,41 0,00 0,00 ‐14.363.926,41
10,1 Balance of the liabilities on 31 December 2013 0,00 0,00 88.088.796,54 0,00 0,00 88.088.796,54
10,2 Balance of the liabilities on 31 December 2012 32.177.132,00 0,00 73.724.870,13 0,00 0,00 73.724.870,13
11 Adjusted expenditures (2. + 10.) 1.257.116.536,99 0,00 1.459.153.640,76 42.189.828,99 0,00 1.501.343.469,75
12 Cash inflows (1.) 1.161.800.821,01 0,00 1.243.526.719,73 41.051.612,74 0,00 1.284.578.332,47
13 Adjusted cash deficit (12‐11) ‐95.315.715,98 0,00 ‐215.626.921,03 ‐1.138.216,25 0,00 ‐216.765.137,28
14 Sources of financing deficit (15.+16.+17.+18.+19.) 95.315.715,98 0,00 215.626.921,03 1.138.216,25 0,00 216.765.137,28
15 Net borrowing 119.492.847,99 0,00 175.275.623,07 1.045.028,62 0,00 176.320.651,69
16 Sale of property 8.000.000,00 0,00 11.948.846,35 11.636,77 0,00 11.960.483,12
17 Grants 0,00 0,00 0,00 0,00 0,00
18 Liabilities to suppliers ‐32.177.132,00 0,00 14.363.926,41 0,00 0,00 14.363.926,41
19 Net changes in cash ‐0,01 0,00 14.038.525,20 81.550,86 0,00 14.120.076,06
1
Adjusted deficit for 2013
DescriptionFinal Statement of Accounts Adjustments of execution
Balance
Overall level of public spending was increased the amount of expressed adjustments ‐ 41,051,612.74€, while on the side of expenditures the expressed level of adjustments amounts to 41,193,362.48 €. Minimum deficit adjustment on this basis is not substantially important when it comes to the expressed level of deficit. The level of public spending was thus increased from 1,444,789,714.35 € to 1,485,883,076.83 €. In the spending units the increase in spending was made in the following amounts:
Table 13 ‐ Increase in the Budget Spending Descrip
tion
Cash
inflo
ws
Cash
paym
ents
Cash
deficit/su
rplus
Sources o
f cash deficit fin
ancin
g
Domestic fin
ancin
g sources w
ithout
dep
osit
Net cred
it borro
wings
Sale of p
roperty
Net ch
anges in
cash
Public institutions within the Ministry of Culture 1,201,704.74 1,218,178.88 ‐16,474.14 16,474.14 13,516.88 4,880.11 8,636.77 2,957.26
Public institutions within the Ministry of Culture 13,166,844.77 12,502,602.20 664,242.57 ‐664,242.57 0.00 0.00 0.00 ‐664,242.57
Public institutions within the Health Fund 14,151,129.00 14,743,419.00 ‐592,290.00 592,290.00 46,682.00 43,682.00 3,000.00 545,608.00
Police Academy 357,888.04 386,673.40 ‐28,785.36 28,785.36 0.00 0.00 0.00 28,785.36
Examination Centre 77,721.89 62,317.87 15,404.02 ‐15,404.02 0.00 0.00 0.00 ‐15,404.02
Montenegrin National Theatre 349,089.77 302,930.79 46,158.98 ‐46,158.98 0.00 0.00 0.00 ‐46,158.98
Royal Theatre Zetski dom 0.00 2,445.81 ‐2,445.81 2,445.81 0.00 0.00 0.00 2,445.81
National Tourism Organisation 317,533.00 311,367.00 6,166.00 ‐6,166.00 0.00 0.00 0.00 ‐6,166.00
Montenegrin Academy of Arts and Sciences 62,417.93 296,143.93 ‐233,726.00 233,726.00 0.00 0.00 0.00 233,726.00
Veterinary clinics 208,588.87 208,588.87 0.00 0.00 0.00 0.00 0.00 0.00
Radio and Television of Montenegro 7,198,499.13 7,198,499.13 0.00 0.00 0.00 0.00 0.00 0.00
Public Institution "Coastal Management Zone" 3,655,648.96 3,655,648.96 0.00 0.00 0.00 0.00 0.00 0.00
Union of municipalities 304,546.64 304,546.64 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL 41,051,612.74 41,193,362.48 ‐141,749.74 141,749.74 60,198.88 48,562.11 11,636.77 81,550.86
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
20
Article 42 of the Law on the Budget and Fiscal Responsibility (Official Gazette of Montenegro, no. 20/14) stipulates that all the public institutions that generate revenues by performing their own activities that are not included into the consolidated account of the treasury can use such revenues for financing current and capital expenditures, provided that they obtain the consent of the Ministry of Finance to their revenue and expenditure plan for the fiscal year and that they obtain in advance the notification of the state administration body in charge of supervision providing its consent. This Article stipulates the exemption from performing the financing transactions through the General Ledger of the State Treasury and including of these transactions into the annual budget law. The supervisory function that is to be implemented consistently in the next fiscal period is clearly and precisely defined. It is recommended that in the process of planning the budget through the annual budget laws the Government of Montenegro plans the amounts of the revenues generated through own activities of the spending units and that the revenues thus generated are used in compliance with the constraints defined in the annual budget law.
2.5. Statement on the manner of spending funds submitted after the expiry of a fiscal year Using the Statement on the manner of spending funds submitted upon the expiry of a fiscal year, on 31 December 2013, spending units reported the existence of funds in foreign currency accounts they had that were recorded in the General Ledger of the State Treasury as expenditure in 2013. The amount reported in this way was 1,102,617.08 €. On 31 January 2014 one spending unit reported the existence of funds in its accounts in the amount of 6,452.89 €. According to the submitted Statement on the manner of spending funds submitted upon the expiry of a fiscal year, the Ministry of Finance adopted the decision ordering the State Treasury to cancel the expenditures and to record the increase of the deposit of the Ministry of Finance.
2.6. Report on the manner of spending funds from the current budgetary reserve According to the Rulebook on the Manner of Drafting, Compiling and Filing Financial Statements of the Budget, State Funds and Local Self‐Government Units, spending units are obliged to enclose to the annual financial statements the Report on the manner of spending funds from the current budgetary reserve ‐ Form 9. The available documentation shows that 79 spending units submitted the Report on the manner of spending funds from the current budgetary reserve, 10 of which submitted the Form 9 after the deadline expired. The submitted reports show that the funds from the current budget reserve were used by ten spending units in the total amount of 9,352,520.96 €, which matches the amounts recorded as the current budgetary reserve in the General Ledger of the State Treasury. 3. STATE CASH DEPOSITS Bank account is the account for receiving, paying and transferring state money. State money is the money that is under control or at disposal of the state or municipalities. Consolidated treasury account comprises all the accounts where state money is recorded and that are in the function of the state or municipal budgets. Accounts in the Central Bank of Montenegro ‐ According to the Agreement on banking operations and services related to the implementation of the decisions on the state debt No. 01‐2385/1 of 25 September 2001, the Central Bank of Montenegro undertook to perform banking operations with the state money and to act upon the order of the minister to open bank accounts for the purpose of banking operations. The table below gives an overview of the accounts opened with the Central Bank with the balance on 31 December 2012 and 31 December 2013:
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
21
Table 14‐Accounts open with the Central Bank of Montenegro
ACCOUNTS OPEN WITH THE CENTRAL BANK
DESCRIPTION Account number Balance on 31 December 2012
Balance on 31 December 2013
Treasury General Account 907000000008300119 11,630,188.03 1,564,187.32 OTHER ACCOUNTS Central Account of the State Treasury 907000000008320198 ‐ ‐ Customs Administration of Montenegro 907000000008050150 ‐ ‐ Tax Administration of Montenegro 907000000008200112 898,366.96 380,528.74 Ministry of Interior 907000000008250164 ‐ ‐ Police Directorate 907000000008400126 ‐ ‐ Ministry of Finance ‐ account for liquidity 907000000008310110 142.35 0.34 Ministry of Finance ‐ Equalization Fund 907000000008330189 495,236.96 1,434,962.33 Ministry of Finance ‐ Collection of due and uncollected taxes and contributions
907000000008340180 74,776.39 74,786.43
Ministry of Finance ‐ Account for temporarily seized money in criminal and misdemeanour procedures
907000000008700147 ‐ 1,507,601.86
Treasury General Account ‐ According to the Directions on State Treasury Operations, item
45‐ the Ministry of Finance issues an order for opening of the main bank account of the state. Out of the funds planned in the annual budget money is paid to and withdrawn from this account. According to the data of the Central Bank on the public revenues collected and allocated through the Treasury General Account, No 907‐83001‐19, for the period from 01 January 2013 to 31 December 2013, the total amount of the funds paid into the account amounted to 1,608,343,215.83 €, while the total amount of the funds paid from the account amounted to 1,618,409,216.54 €. On 31 December 2012 the funds in the account amounted to 11,630,188.03 €, while on 31 December 2013 they amounted to 1,564,187.32 €, as presented in the table above.
Central Account of the State Treasury – According to the Order on the Manner of Payment of Public Revenues, Section ‐ General Provisions (item 5 and item 7), the funds are collected through the Central Account of the State Treasury and they are distributed therefrom. The accounts used for collection of public revenues (416 accounts according to the Order) and the four clearing accounts, through which the funds are transferred to the Central Account of the State Treasury by the spending units that collect public revenues ‐ Customs Administration, Tax Administration, Ministry of Interior and Police Directorate. According to the Central Bank data, the public revenues collected to this account for the period from 1 January 2013 to 31 December 2013 amounted to 1,345,882,236.48 €. The same amount was allocated in the observed period.
Liquidity account – According to Article 7 of the Contract on performing banking operations and services related to the implementation of the decisions on the state debt No. 01‐2385 of 25 September 2001, it was established that the minister is obliged to open a special bank account in the Central Bank that will be used only for the payments of the funds from the sale of treasury bills issued by the Government with a view to improving budget liquidity. According to the data of the Central Bank for the period from 1 January 2013 to 31 December 2013, public revenues collected in this account amounted to 75,246,194.22 €, while the distributed public revenues amounted to 75,246,336.23 €. On 31 December 2012 the balance in this account was 142.35€ and on 31 December 2013 it was 0.34 €.
Account for collection of due and uncollected taxes and contributions – According to Article 9 of the Order on the collection of due and uncollected taxes and contributions and other pubic revenues8, the account was opened for the purpose of collecting the due and uncollected revenues from taxes, contributions for compulsory social insurance and other public revenues, except for the Value Added Tax, incurred before 31 December 2003.
8 OG MNE No. 24/04
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
22
According to the data of the Central Bank for the period from 1 January 2013 to 31 December 2013, public revenues collected in this account amounted to 10.04 € and there were no allocated public revenues. Hence, the balance on 31 December 2012 amounted to 74,776.39 € and it amounted to 74,786.43 € on 31 December 2013.
Account Equalization Fund – The account Equalization Fund is managed by the Ministry of Finance. According to Article 29 of the Law on Financing Local Self‐Government, this account is used for financial equalization in the financing of municipalities. According to the Central Bank data, in the period from 1 January 2013 to 31 December 2013 the amount of 26,462,823.37 € of public revenues were paid in the account Equalization Fund number 907‐83301‐89. In the same period the amount of allocated funds was 25,523,098.00 €. On 31 December 2012 the balance was 495,236.96 €, while it was 1,343,962.33 € on 31 December 2013.
Account for the funds seized in criminal and misdemeanour procedures – Account No. 907‐87001‐47 was opened upon the request of the Ministry of Finance with a view to maintaining the seized funds according to the Law on Managing Seized and Confiscated Assets. According to the analytical card of the Central Bank, the inflow of funds in this account amounted to 1,507,601.86 € in 2013. There was no outflow of funds and no balance on 31 December 2012. Therefore, the balance of funds on 31 December 2013 is equal to the inflow of funds.
The deposits expressed in the Proposed Law on the Final Statement of Accounts of the Budget for 2013 ‐ Deposit balance expressed in the Proposal Law on the Final Statement of Accounts of the Budget for 2012 and 2013 is shown in the table below: Table 15‐Deposits expressed in the Proposal Law on the Final Statement of Accounts of the Budget for 2013
Name of the bank Proposal Law on the Final Statement
of Accounts for 2012
Proposal Law on the Final Statement of Accounts for
2013
Central Bank of Montenegro 11,919,390.70 1,656,819.46 Crnogorska Komercijalna banka 1,060,277.57 187,974.41 NLB Montenegrobanka 706,231.00 10,150.79 Prva banka Crne Gore 3,570,054.97 583,136.34 Erste banka Podgorica 2,000,000.00 3,084,235.83 Podgorička banka 69,277.35 24,911.22 Unspent budget users' funds 1,557,557.32 1,297,035.66 Total 20,882,788.91 6,844,263.71 Total in mil € 20.88 6.84 On the basis of the documentation obtained from the banks (Excerpt of the open items, IOS form) and the documentation obtained from the Ministry of Finance, the audit checked the deposits in the accounts in the Central Bank of Montenegro (except for the Deposits from succession ‐ gold) and in the Erste Banka Podgorica. Deposits with the Central Bank of Montenegro ‐ The table below shows the overview of the balance of funds of the Ministry of Finance in the accounts with the Central Bank of Montenegro on 31 December 2012 and on 31 December 2013:
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
23
Table 16‐ Funds of the Ministry of Finance with the Central Bank of Montenegro
NameNumber of
account/sub-account
GENERAL ACCOUNT
General Treasury Account 907000000008300119 11.630.188,03 11.630.188,03 1.564.187,32 1.564.187,32
OTHER ACCOUNTS
Central Account of the State Treasury 907000000008320198 - -
Customs Administration of Montenegro 907000000008050150 - -
Tax Administration of Montenegro 907000000008200112 898.366,96 380.528,74
Ministry of Interior 907000000008250164 0,00 0,00
Police Directorate 907000000008400126 0,00 0,00
Ministry of Finance - account for liquidity 907000000008310110 142,35 0,34
Ministry of Finance - Equalization Fund 907000000008330189 495.236,96 1.434.962,33 55.000,00
Ministry of Finance - Collection of due and uncollected taxes and contributions
907000000008340180 74.776,39 74.786,43
Ministry of Finance - Account for temporarily seized money in criminal and misdemeanor procedure
907000000008700147 - 1.507.601,86
Deposits from succession 21323 236.738,60 236.738,60 1.590,21 1.590,21
Deposits for the implementation of the 1000+ apartments project 21326 7.522,97 7.522,97
Deposits from restitution. 21337 44.940,87 44.940,87
Deposit of the Ministry of Finance for land lease, 21352 3.260.549,81
Deposit of the Ministry of Finance from the issuance of EUROBOND bonds and
21352 928,47 928,47
Liabilities for the received advance payments 3211 305.830,00 306.944,46
Liabilities for the surplus of revenues according to the 2006 report, 32213 4.280,45
Liabilities from business relations 35131 147.864,32 40.113,46 40.113,46
17.106.437,71 11.919.390,47 5.311.643,62 1.656.819,46
Expressed in the
the Ministry of
Finance deposits
Group A
cco
un
tD
ep
osit
sO
ther
Balance on 31 December 2012 Balance on 31 December 2013
TOTAL (ACCOUNTS + DEPOSITS + OTHER)
Funds of the Ministry of Finance with the Central Bank of Montenegro
Central Bank data
Expressed in the
the Ministry of
Finance deposits
Central Bank
data
Comparing the balance of deposits in the accounts with the Central Bank expressed in the Proposal Law on the Final Statement of Accounts of the Budget of Montenegro for 2012 with the data of the Central Bank (Statement of Outstanding Positions), the audit established the following:
that the balance of deposits in the accounts with the Central Bank in the amount of 11,919,390.70 € includes the following accounts: 1) Treasury General Account, 2) Deposits from succession 3) Deposits for the implementation of the 1000+ apartments project 4) Deposits from restitution.
that the balance of deposits in the Central Bank does not include the balance in the following accounts: 1) Liquidity account, 2) Account of due and uncollected taxes and contributions 3) Equalization Fund 4) Deposit of the Ministry of Finance for land lease, 5) Liabilities for the surplus of revenues according to the 2006 report, 6) Liabilities for the received advance payments, 7) Liabilities from business relations (old foreign currency savings)
We would like to emphasise that the balance of funds in the clearance account of the Tax Administration in the amount of 898,366.96 € is the amount of public revenues that were not allocated in the Central Account of the State Treasury according to the stipulated procedures (non‐identified public revenues) on 31 December 2012. Comparing the balance of deposits in the accounts with the Central Bank expressed in the Proposal Law on the Final Statement of Accounts of
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
24
the Budget of Montenegro for 2013 with the data of the Central Bank (Statement of Outstanding Positions), the audit established the following:
that the balance of deposits in the accounts with the Central Bank in the amount of 1,656,819.46€ includes the following accounts: 1) Treasury General Account, 2) Equalization Fund (claims based on loans given in the amount of 50,000.00€), 3) Deposits from succession, 4) Deposit of the Ministry of Finance from the issuance of EUROBOND bonds and 5) Bonds from business relations (old foreign currency savings).
that the balance of deposits in the Central Bank does not include the balance in the following accounts: 1) Liquidity account, 2) Account of due and uncollected taxes and contributions, 3) Account for temporarily seized money in criminal and misdemeanour procedures, 4) Equalization Fund (except for the funds on the basis of loans), 5) Liabilities for the received advance payments.
We would like to emphasise that the balance of funds in the clearance account of the Tax Administration in the amount of 380,528.74 € is the amount of public revenues that were not allocated in the Central Account of the State Treasury according to the stipulated procedures (non‐identified public revenues) on 31 December 2013. The audit included the control of deposits in the Erste bank by random sample check. There are 12 accounts/sub‐account under the registry number of the Ministry of Finance.
Erste banka – In the Proposal Law on the Final Statement of Accounts of the Budget for 2013 the expressed balance in the accounts with the Erste Bank on 31 December 2012 amounted to 2,000,000.00 €, while on 31 December 2013 it amounted to 3,084,235.83 €. The table below provides the data about the balance in the accounts with the Erste Bank on 31 December 2013:
Table 17 ‐ Funds in the Accounts with the Erste Bank
Erste Bank
Accounts in the country
Foreign Currency Accounts
Description Balance on 31 December
2013
The amount was not
included into the deposits
according to the final statement of accounts
The amount was included into the
deposits according to the final statement of accounts
540‐5590‐59 Secretariat General of the Government 4.83 4.83 0.00540‐4025‐98 Account for solidarity in case of floods 6.40 6.40 0.00540‐4339‐29 Credit Account 10.95 10.95 0.00540‐5507‐17 Account for the Ministry of Economy 119,275.24 119,275.24 0.00
540‐4815‐56 Account for solidarity in case of snowfall
331.11 331.11 0.00
540‐5261‐76 Labour Fund Account 16.37 16.37 0.00 10000231132277 Secretariat General of the Government 1,483.31 1,483.31 0.00 10000231132269 Flood prevention and Rehabilitation 3,700,872.74 3,700,872.74 0.00 10000231132226 Credit Account 20.03 20.03 0.00
10000231132234 Project TYPSA ‐ water supply system Nikšić
52,008.14 52,008.14 0.00
10000231132249 Montenegro Water project 110,538.93 110,538.93 0.00 10000231132218 Deposit accounts ‐ term deposits 3,084,235.83 0.00 3,084,235.83
Total 7,068,803.88 3,984,568.05 3,084,235.83
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
25
The audit included the control of the following accounts:
Foreign currency account 1000023112269 which was opened for the purposes of withdrawing the credit funds from the EIB (European Investment Bank) for financing the project Prevention of Flood Consequences. It is elaborated in details in the chapter Revenues. On 31 December 2013 the balance in this account was 3,700,872.74 €.
Account no. 540‐4815‐56 that, according to the Contract on opening and managing the account no. 753/12 of 7 March 2012, was opened for the purposes of payment operations in the country under the name "Ministry of Finance ‐ Account for solidarity aimed at mitigation of consequences of voluminous snowfall and storm winds." According to the Erste Bank data (the document 29/14 of 18 July 2014), on 31 December 2013 the balance in this account was 331.11 € and there were no transactions in the period from 1 January to 31 December 2013.
Account no. 1000‐02‐311322‐18 ‐ Deposit account ‐ In the Proposal Law on the Final Statement of Accounts of the Budget for 2013 the expressed deposit balance was 3,084,235.83 €. It is the amount of the term deposit based on the Contract no. Ld/13001‐000073, for the period from 10 January 2013 to 10 January 2014. According to Article 4 of the Contract, the client cannot use these funds before the expiry of the term. The amount of 84,235.83 € is the interest based on the term deposits according to the Contract no. Ld/12004‐00051 in the amount of 82,224.66 € and the interest in the amount of 2,011.17 € for the term deposits on the basis of the contracts from the past.
Records of funds in the General Ledger of the State Treasury ‐ According to Article 4 of the Regulation on Uniform Classification of Accounts for the Budget, Extra‐budgetary Funds and Budgets of Municipalities, the balance of financial assets is expressed in class 1. Article 6 of this Regulation stipulated the accounts for recording the balance of financial assets by class, category, group, synthesis, analysis and sub‐analysis. Insight in the General Ledger of the State Treasury of the financial assets (class 1) shows that there are no recorded balances and transactions in the groups of accounts in line with the Regulation. The table below shows the overview of the records on the level of sub‐analysis: Table 18‐ Records of Funds in the General Ledger of the State Treasury
Class Category Group Synthesis Analysis Sub‐analysis Account Name Opening Balance Debit turnover Credit turnover Closing balance
1 Financial assets
11 Financial assets
111 Consolidated account
111‐1 Accounts in the country
111‐1‐1 Accounts in the Central Bank
111‐1‐1‐1 General Treasury Account
111‐1‐1‐2 Sub‐accounts with special purpose
111‐1‐1‐5
1111150002 Podgorička banka ‐ Deposit 69.277,35 24.911,22 ‐69.277,35 24.911,22
1111150003 Crnogorska Komercijalna banka ‐ Deposit 1.060.277,57 123.561,81 ‐995.864,97 187.974,41
1111150004 Hipotekarna banka ‐ Deposit 1.692.208,37 ‐1.692.211,37 ‐3,00
1111150005 Montenegro banka ‐ Deposit 706.231,00 150,79 ‐696.231,00 10.150,79
1111150007 Central Bank of Montenegro ‐ other deposits 7.522,97 170.526.076,88 ‐170.442.554,85 91.045,00
1111150008 Central Bank ‐ deposited funds ‐ succession 236.738,60 210.392,33 ‐445.541,72 1.590,21
1111150010 Deposits of the Embassies of Montenegro 396.016,59 551.408,66 ‐749.587,99 197.837,26
1111150014 Deposit of Prva Banka CG 3.570.054,97 1.014.791,67 ‐4.001.710,35 583.136,29
1111150015 Opportunity banka ‐ Deposit 2.000.000,00 1.084.235,83 0,00 3.084.235,83
1111150017 Deposit ‐ Institutions of culture 1.890,89 0,00 ‐1.890,89 0,00
1111150019 Small and Medium‐size Enterprises Directorate ‐ Depo 1.125.364,24 2.137.602,30 2.194.465,39 1.068.801,15
1111150021 Deposits from restitution 44.940,83 0,96 ‐44.941,92 ‐0,13
1111150023 Deposit ‐ Centre for Archaeological Research of Mont 30.397,25 30.397,25
1111150024 Deposit ‐ Central Bank ‐ Erste credit 34.000.000,00 ‐34.000.000,00 0,00
1111150025 Deposit ‐ Hidro. offices 652,87 0,00 ‐652,87 0,00
1111150026 Pension and Disability Insurance Fund deposit 3.235,48 0,00 ‐3.235,48 0,00
1111150027 Ministry of Science deposit 2.238,64 ‐2.238,64 0,00
1111150012 Pension and Disability Insurance Fund deposit ‐ NLB 150,79 ‐150,79 0,00
111‐1‐2 Accounts in commercial banks
111‐2 Accounts abroad
111‐3 Collaterals
112 Securities
113 Loans and credits
114 Issued guarantees
9.252.600,61 211.367.730,25 ‐215.340.254,58 5.280.076,28TOTAL CLASS I
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
26
In the General Ledger of the State Treasury (class 1) there are no recorded balances and transactions in the groups of accounts 112 ‐ Securities, 113 ‐ Loans and Credits, 114 ‐ Issued guarantees. The recorded balances within the group of accounts 111 ‐ Consolidated Account of the State Treasury are not in line with the Regulation on Uniform Classification of Accounts for the Budget, Extra‐budgetary Funds and Budgets of Municipalities. In the require sub‐analytical data within 111‐1‐1‐1 ‐ Treasury General Account and 111‐1‐1‐2‐ Sub‐accounts with special purpose, there are no recorded balances and transactions. The balances recorded within the sub‐analytical data 111‐1‐1‐5 (10 digits) present the opening balance in the amount of 9,252,600.61 €, debit turnover in the amount of 211,367,730.25 €, credit turnover amounted to 215,340,254.58 €, so that the closing balance amounts to 5,280,076.26 €. On the basis of the names of the accounts it was concluded that the expressed balances include the turnovers and balances of deposits with the Central Bank (excluding the Treasury General Account), with the commercial banks, as well as the deposits of the budget users. The Ministry of Finance did not ensure full records of the balances and turnover of financial assets through the system of the General Ledger of the State Treasury (class 1). Hereby we particularly emphasize that the Ministry has to ensure the records of the balances and turnover of money transactions that are done through the accounts that are in the system of the Consolidated Account of the State Treasury. It is in line with Article 6 of the Regulation on Uniform Classification of Accounts for the Budget, Extra‐budgetary Funds and Budgets of Municipalities. 4. BUDGET REVENUES Budget revenues expressed in the Proposal Law on the Final Statement of Accounts of the Budget for 2013 in accordance with Article 9 of the Law on Budget are presented in the following table:
Table 19‐ Budget revenues
Economic classificatio
n
Description Planned in 2013 Realized in 2013 Plan/realization
71 Current revenues 1,156,991,760.99 1,228,279,417.81 106.16
72 Receipts from the sale of property 8,000,000.00 11,948,846.35 149.36
73 Receipts from the repayment of debts 4,809,060.01 8,633,294.21 179.52
74 Grants and transfers 6,614,007.71
75 Loans and credits 205,992,847.99 333,867,350.25 162.08
Total 1,375,793,668.99 1,589,342,916.33 115.52 In 2013 revenues were implemented in the amount that is by 15.52% higher than the revenues planned in the Budget Law for 2013. The table below shows the overview of the revenues recorded in the General Ledger of the Treasury allocated from the Central Account of the State Treasury (90700000008320198) through the revenue module: Table 20‐Unpaid Revenues through the Revenue Module
Economic classification
Description Realized in 2013 Revenue module Difference
71 Current revenues 1,228,279,417.81 1,220,287,994.68 7,991,423.13
72 Receipts from the sale of property 11,948,846.35 3,907,124.69 8,041,721.66
73 Receipts from the repayment of debts
8,633,294.21 2,019,875.59 6,613,418.62
74 Grants and transfers 6,614,007.71 6,614,007.71
75 Loans and credits 333,867,350.25 822.39 333,866,527.86
Total 1,589,342,916.33 1,226,215,817.35 363,127,098.98 The difference in the amount of 363,127,098.98 € is the amount of the inflow that was not recorded in the General Ledger of the State Treasury through the Revenue Module (software of the Ministry of Finance).
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
27
Collection of Revenues in the Central Account of the State Treasury ‐ According to the Order on the Manner of Payment of Public Revenues that stipulates the accounts where public revenues defined in the law and other legislation are collected, the manner of collection of the revenues and the manner of reporting by the users, collection of public revenues in Montenegro is ensured through the following accounts: for the payment of revenues collected by the Customs Administration no. 90700000008050150 (identification number 805); by Tax Administration no. 90700000008200112 (identification number 820); by Ministry of Interior no. 907000000008400126 (identification number 840), and by Central Account of the State Treasury no. 907000000008320198 (identification no. 832 ‐ accounts of the ministries, other administration bodies and judiciary). The table below shows the data related to collected and allocated revenues, according to the reports of the Central Bank and the Ministry of Finance, and revenues expressed in the State Treasury (report from the Revenue Module), by entities that collect the revenues: Table 21 – Public Revenues
Names of accounts used for collecting revenues inID number
Number accounts used
for collecting revenues According to the Central According to the State TrDifference
Customs Administration of Montenegro ‐ Clearing 805 90700000008050150 368.994.673,62 368.994.673,62 ‐
Tax Administration of Montenegro ‐ Clearing Acco 820 90700000008200112 919.005.317,80 919.005.317,80 ‐
Ministry of Interior ‐ Clearing Account 825 90700000008250164 904.821,43 8.599.251,13 (7,694,429.7)
Police Directorate ‐ Clearing Account 840 90700000008400126 4.157.175,30 4.157.175,30 ‐
Central Account of the State Treasury ‐ Accounts
of the ministries, other bodies and judiciary832 90700000008320198 49.559.695,97 41.384.499,62 8.175.196,35
Collected through clearing account 1.342.621.684,12 1.342.140.917,47 480.766,65
Commercial Account of the Central Bank 90700000000920182 3.260.552,62 3.260.552,62
Collected through other accounts 3.260.552,62 3.260.552,62 According to the data of the Central Bank, the public revenues collected and allocated in 2013 amounted to 1,345,882,236.74 €, while according to the data of the Ministry of Finance the collected and allocated revenues amounted to 1,342,140,917.47 €. According to the report of the Central Bank, the revenues collected through the clearance accounts for collection of public revenues amounted to 1,342,621,684.12 €, while the revenues collected through other accounts amounted to 3,260,552.62 €. Hence, the total collected revenues amounted to 1,345,882,236.74 €. The difference in the items related to the Ministry of Interior is of technical nature and it is related to the processing of orders for transfer of money after the "Recipient Statement". For the period from 1 January 2013 to 20 November 2013 processing of the orders for transfer of money from the clearance account of the Ministry of Interior to the Central Account of the State Treasury was done in the Ministry of Finance after the submission of the "Recipient Statement" by the Ministry of Interior. The transaction was not recorded as a payment from the clearance account 90700000008250164 but as a payment to the Central Account of the State Treasury 907000000008320198. According to the above, the amount of 7,694,429.70 € is a part of the amount that is expressed as the payment to the account 90700000008320198. In the period from 21 November 2013 to 31 December 2013 the revenues collected in the amount of 904,821.43 € were processed through the transfer orders in the communication system of the Ministry of Interior with the Central Bank, as the transfer from the clearance account of the Ministry of Interior 907000000008250164. The identified difference in the expressed data about the collected and allocated revenues amounts to 3,741,319.27 € and it includes the following:
The amount of 3.260.552,62 € paid to the Central Account of the State Treasury (907000000000832198) from the commercial account of the Central Bank (90700000000920182) on the basis of the document no. 06‐1337/1 of 26 March 2013 by which the Ministry of Finance applied to the Central Bank with the request for transfer of the deposited funds of the Government ‐ the Ministry of Finance, from the account
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
28
"Deposits of the Ministry of Finance Based on the Leased Land". By the Decision no. 06‐1337/2 of 26 March 2013 the funds were transferred from the Central Account of the State Treasury to the account of the Municipality of Herceg Novi no. 530‐20200‐38 with the NLB Montenegro Bank. The transfer of funds was made on the basis of the Decision of the Government no. 06‐558/4 of 21 March 2013. By this decision, the Government adopted the Information on regulating mutual relations and financially supporting the Municipality of Herceg Novi according to the Agreement on financial support to the Municipality of Herceg Novi no. 07‐3595/1 of 25 March 2013 concluded between the Government of Montenegro, the Ministry of Finance and Municipality of Herceg Novi. Overview of the Statement of Financial positions on 31 December 2012 established that there was a deposit on the account "Deposits of the Ministry of Finance on the Basis of Leased Land" in the amount of 3,260,549.81 €. According to the document no. 06‐3994/1 of 31 December 2012 the deposit is 30% of the funds made by land lease transferred to the commercial account of the Central Bank of Montenegro.
The funds in the amount of 117,562.76 € are the funds collected in the period from 1 January to 31 December 2013 in the account no. 832‐6161‐47 of the veterinary clinic "Veterinum" distributed to the Treasury General Account on 31 December 2013. The allocation of funds was not done through the Revenue Module (software of the Ministry of Finance ‐ State Treasury) and therefore the effect of this transaction is that the amount expressed in the data of the Ministry of Finance is lower.
The funds in the amount of 14,826.25 € are the funds that remained in the Central Account after the last allocation was done on 31 December 2013. The allocation of funds was not done through the Revenue Module (software of the Ministry of Finance ‐ State Treasury) and therefore the effect of this transaction is that the amount expressed in the data of the Ministry of Finance is lower.
The funds in the amount of 312,776.46 € are the funds for the refund and reallocation of the funds on the basis of the decisions of the Ministry of Finance regarding the wrong payments to the accounts of the ministries, other administration bodies and judiciary (identification number 832), including the refund of the funds paid by mistake. The allocation of funds was not done through the Revenue Module and therefore the amount expressed in the data of the Ministry of Finance is lower.
The funds in the amount of 35,601.99 € are the funds used for the refund on the basis of the "Recipient Statement" of the Ministry of Interior of 22 October 2013 that were submitted two times by mistake on 23 October 2013 which led to the increased transactions both on the side of the collected and on the side of allocated funds.
Comparison of the data on the realized revenues recorded in the State Treasury with those obtained from the Central Bank of Montenegro led to the conclusion that the realized revenues of the entity that submitted the "Recipient Statement" recorded in the State Treasury (Statement from the Revenue Module ‐ before allocation) match the data on the revenues transferred from the clearing accounts of entity that submitted the "Recipient Statement" except for the amount of 35,601.22 € identified with the Ministry of Interior that was mistakenly transferred two times on 23 October 2013. The total inflow of funds to the Central Account of the State Treasury in 2013 amounted to 1,345,882,236.74 € as presented in the table below: Table 22 –Inflow of Funds to the Central Account of the State Treasury
CENTRAL ACCOUNT OF THE STATE TREASURY
DESCRIPTION INFLOW Customs Administration of Montenegro ‐ Clearing Account 368,994,673.62 Tax Administration of Montenegro ‐ Clearing Account 919,005,317.80 Ministry of Interior ‐ Clearing Account 8,599,251.13 Police Directorate ‐ Clearing Account 4,157,175.30 Central Account of the State Treasury ‐ accounts of the ministries, other bodies and judiciary 41,865,266.27 Commercial Account of the Central Bank 3,260,552.62
TOTAL 1,345,882,236.74
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
29
According to the Directions on State Treasury Operations, allocation of public revenues to users of funds is done by the State Treasury. Transfer of the funds from the Central Account of the State Treasury to the account of public revenue users is done through the Revenue Module (software of the Ministry of Finance ‐ State Treasury) on the basis of "keys" defined in the law and other regulations which define who the public revenues belong to and how they are allocated on the basis of decisions of the Ministry of Finance. Outflow of funds, i.e. allocation of funds from the Central Account of the State Treasury in 2013 amounted to 1,345,882,236.74 € as presented in the table below: Table 23 –Outflow of Funds from the Central Account of the State Treasury
CENTRAL ACCOUNT OF THE STATE TREASURY
DESCRIPTION OUTFLOW Treasury General Account 1,226,348,206.36 Local self‐government 40,562,155.30 Chamber of Veterinary Doctors and Veterinary Clinics 236,400.73 Allocation based on the decisions of the Ministry of Finance and other documents
49,432,455.00 49,432,455.00
Municipality of Herceg Novi 3,260,552.62 Radio and Television of Montenegro 7,198,449.13
Refund and reallocations of the funds paid from the account of the group 832 (including other refunds from the Central Account)
312,776.46
Refund of twice transferred funds 35,601.99 Reallocation of funds (VAT refund) 38,625,074.80
Equalization Fund 25,342,823.37 Public Institution "Coastal Management Zone" 3,655,648.96 Union of municipalities 304,546.64 TOTAL 1,345,882,236.36 Transfer of the funds from the Central Account of the State Treasury to the Treasury General
Account in the amount of 1,226,348,206.36 € included the funds allocated through the Revenue Module as well as the amount of the funds that were directly transferred from the Central Account of the State Treasury on 31 December 2013.
The amount of 40,562,155.30 € was allocated from the Central Account to the local self‐government, as presented in the table below:
Table 24 ‐ Allocation of the Funds from the Central Account to the Local self‐government
NAME OF THE MUNICIPALITY
CODE OF THE MUNICIPALITY AMOUNT
Podgorica 302 10,303,206.00 Cetinje 310 761,097.55 Danilovgrad 329 755,047.13 Nikšić 400 2,095,226.07 Šavnik 416 41,981.28 Plužine 426 607,822.84 Žabljak 515 298,398.61 Pljevlja 507 5,028,624.74 Berane 604 929,464.60 Plav 612 216,671.87 Rožaje 620 1,015,796.74 Andrijevica 639 176,420.30 Bijelo Polje 701 1,168,132.60 Mojkovac 710 286,862.29 Kolašin 728 512,967.26 Bar 809 3,611,291.40 Budva 817 4,499,850.31 Ulcinj 825 1,393,023.34 Herceg Novi 906 3,281,235.45 Tivat 914 1,321,990.84 Kotor 922 2,257,044.08 TOTAL 40,562,155.30
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
30
The amount of 236,400.73 € was allocated from the Central Account of the State Treasury to the Chamber of Veterinary Doctors and Veterinary Clinics. These funds were transferred according to the Decision on the amount of fees for the provided veterinary‐sanitary checks in the internal trade. Out of the total amount of the collected funds 75% belongs to persons that performed the check, while 10% belongs to the Chamber of Veterinary Doctors. Through the analysis of the 2013 Report on the allocation of funds by users of public revenues for and the Reports on the collected funds before allocation (gross revenues) expressed by eco code), we established that the amount of 208,588.87 € was transferred to the veterinary clinics. It was 75% of the fees for the performed veterinary‐sanitary checks. The Chamber of Veterinary Doctors was transferred the amount of 27,811.75 € or 10% of the fees for the performed veterinary‐sanitary checks that in total amounted to 278,117.52 €.
Allocation of funds from the Central Account of the State Treasury was done on the basis of the decisions of the Ministry of Finance in the amount of 49,432,455.00 €, as follows: By the Decision no. 06‐1337/2 of 26 March 2013 the amount of 3,260,553.62 € was
transferred to the account of the Municipality of Herceg Novi no. 530‐20200‐38 with the NLB Montenegro bank. The transfer of funds was made on the basis of the Decision of the Government no. 06‐558/4 of 21 March 2013 which adopted the Information on regulating mutual relations and financially supporting the Municipality of Herceg Novi according to the Agreement on financial support to the Municipality of Herceg Novi no. 07‐3595/1 of 25 March 2013 concluded between the Government of Montenegro, the Ministry of Finance and Municipality of Herceg Novi.
Decision of the Ministry of Finance was the basis for transferring the funds in the amount of 7,198,499.13 € to the Public Service Radio and Television of Montenegro. According to paragraph 2 of Article 16 of the Law on Pubic Broadcasting Services of Montenegro9, the Ministry of Finance adopted the Instruction on the manner of reallocation of funds from general revenues of the budget of Montenegro 10, which stipulated that, for the purpose of financing the basic activities of the Public Service Radio and Television of Montenegro, the funds were to be allocated from the general revenues of the budget of Montenegro ‐ excise. The amount was to be set on an annual level as 1.20% of the current budget of Montenegro defined in the law for each particular year. Article 3 of the Budget Law of Montenegro for 2013 defined that the funds in the total amount of 7,198,449.13 € were to be allocated from the general revenues of the budget to the Public Service Radio and Television of Montenegro.
Decisions of the Ministry of Finance were used to transfer funds in the amount of 312,776.46 € for erroneous payments to the accounts of the ministries, other administration bodies and judiciary (identification no. 832), as well as for other refunds in cases of erroneous payments if refunds and reallocations were done from the Central Account of the State Treasury.
Decisions of the Ministry of Finance were used to transfer the funds in the amount of 38,625,074.38 € as the refund and reallocation of the VAT (Value Added Tax).
The amount of 25,342,823.37 € was allocated from the Central Account of the State Treasury to the Equalization Fund.
The amount of 3,655,648.96 € was allocated from the Central Account of the State Treasury to the Public Company "Coastal Management Zone".
The amount of 304,546.64 € was allocated from the Central Account of the State Treasury to the Union of Municipalities
9 OG MNE No. 79/08 10 OG MNE No. 3/09
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
31
Treasury General Account – Inflow of funds to the Treasury General Account from the Central Account of the State Treasury amounted to 1,226,348,206.36 € plus inflow from other sources in the amount of 362,994,709.97 € as presented in the table below Table 25‐ Revenues Recorded in the General Ledger of the State Treasury
GENERAL LEDGER OF THE STATE TREASURY ‐ CA
DESCRIPTION INFLOW CENTRAL ACCOUNT OF THE STATE TREASURY (REVENUE MODULE AND DIRECT PAYMENTS) 1,226,348,206.36 INFLOW RECORDED IN THE GENERAL LEDGER OF THE STATE TREASURY
362,994,709.97 362,994,709.97
Current revenues 7,859,034.12
Receipts from the sale of property 8,041,721.66
Receipts from the repayment of credits 6,613,418.62
Grants 6,614,007.71
Loans and credits from foreign sources 188,516,385.86
Loans and credits from domestic sources 145,350,142.00
TOTAL 1,589,342,916.33
4.1 Current Revenues According to the data expressed in the Proposal Law on the Final Statement of Accounts of the Budget the current revenues realized in 2013 amounted to 1,228,279,417.81 €. Structure of the current revenues according to the principle of revenue collection:
Current revenues in the amount of 1,220,287,994.68 € are the revenues collected and allocated through the Revenue Module and in line with the Order on the Manner of Payment of Public Revenues.
The funds in the amount of 132,389.01 € transferred on 31 December 2013 by a direct payment from the Central Account of the State Treasury to the Treasury General Account and recorded in the General Ledger of the State Treasury within the group of accounts 715 ‐ Other Revenues.
The funds in the amount of 7,859,034.12 € recorded in the General Ledger of the State Treasury as revenues coming from other sources: Funds in the amount of 544,955.77€ are the fees paid by the diplomatic‐consular
representative offices and recorded in the General Ledger of the State Treasury on the basis of the decisions of the Ministry of Finance in the group of accounts 713 ‐ Administrative Fees
Funds in the amount of 1,391,198.37 € were paid as DOMEN D.O.O. fees and they were recorded in the General Ledger of the State Treasury in the group of accounts 714 ‐ Other Fees
Funds in the amount of 2,782,585.70 € are the funds for the direct payments on the basis of the land lease and interests into the Treasury General Account. They are recorded in the group of accounts 715 ‐ Revenues from Capital. This amount included the funds in the amount of 607,738.21 €, recorded on the basis of the decision of the Ministry of Finance ‐ inflows on the basis of interests on deposits.
Funds in the amount of 3,140,294.28 € are related to the direct payments of legal and physical entities to the Treasury General Account and they are recorded in the group of accounts 715 ‐ Other Revenues.
4.2 Receipts from the sale of property According to the records in the General Ledger of the State Treasury, in 2013 the total realized receipts from the sale of property amounted to 11,948,846.35 €. Structure of the inflow, according to the manner of revenue collection:
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
32
Funds in the amount of 3,907,124.69 € are the receipts from the sale of property and the receipts from the sale of fixed assets collected and allocated according to the Order on the Manner of Payment of Public Revenues.
The funds in the amount of 8,041,721.66 € recorded in the General Ledger of the State Treasury as revenues coming from other sources in the following positions and amounts are: Funds in the amount of 50,813.66 € that were directly paid to the Treasury General
Account and recorded in the group of accounts 7212 ‐ Receipts from the Sale of Fixed Assets. They refer to the inflow of sale of arms and military equipment of the Ministry of Defence. Recording and identifying of revenues were done on the basis of excerpt from the Treasury General Account.
The funds in the amount of 7,990,908.00 € recorded in the group of accounts 7212‐ Receipts from the Sale of Fixed Assets refer to the inflow from the privatizations of AD "Kontejnerski terminal i generalni teret" AD Bar. According to the Contract on sale of shares of the company "Kontejnerski terminai i generalni tereti" AD Bar No. 08‐2487/5 of 15 November 2013, the price paid by the purchaser for the shares is the cash amount of 8,071,700.00 €. Out of that amount 1% or 80,717.00 € are allocated to be used by the Privatization Council, while the amount of 7,990,983.00 € was paid to the foreign currency account of the Ministry of Finance with the Central Bank, 75.00 € of which for the bank commission. The above amount was allocated to the Treasury General Account based on the Instruction on the allocation of funds of the Ministry of Finance document no. 06‐10516/1 of 30 December 2013.
4.3 Receipts from the repayment of credits According to the records in the General Ledger of the State Treasury, in 2013 the total realized receipts from the repayment of credits amounted to 8,633,294.21 €. Structure of the inflow according to the manner of revenue collection:
Funds in the amount of 2,019,875.59 € are the receipts from the repayment of credit that are collected and allocated according to the Order on the Manner of Payment of Public Revenues.
The funds in the amount of 6,613,418.62 € recorded in the General Ledger of the State Treasury as revenues coming from other sources in the group of accounts 7311 ‐ Receipts from Repayment of Credits Granted to other Levels of Authorities: Funds in the amount of 5,544,617.47 € paid to the Treasury General Account on the
basis of repayment of granted credits. Recording and identifying of revenues were done on the basis of excerpt from the Treasury General Account.
Funds in the amount of 1,068,801.15 € are the funds of the repayment of the credits granted by the Directorate for Development of Small and Medium‐sized Enterprises. In the Decision no. 06‐1276/1 of 1 April 2014 the funds were recorded as inflow according to the memorandum of the Directorate for Development of Small and Medium‐sized Enterprises
4.4 Receipts from Grants and Transfers Article 9 of the Budget Law for 2013 stipulates that the expenditures of the spending units that are financed from grants shall be executed in the amount in which they are realized. According to this, the receipts based on grants were not planned in the Budget Law for 2013. According to the records in the General Ledger of the State Treasury, the total realized receipts from grants amounted in 2013 to 6,614,007.71 €. Grant funds are paid to the state bank accounts opened by the Ministry of Finance upon request of the spending units. Withdrawal of funds to the Treasury General Account is done on the basis of the request for transfer and release of funds of the spending unit, user of the grant.
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
33
The table below shows the overview of the spending units that had the inflow of grant funds: Table 26‐ Inflow from Grants Expressed by Spending Units Number DESCRIPTION AMOUNT
1 Grants ‐ Refund 570,363.25 2 Ministry of Labour and Social Welfare 519,243.96 3 Ministry of Agriculture and Rural Development 682,910.52 4 Ministry of Culture 250,947.33 5 Hydro‐meteorological Office 87,690.916 Secretariat for European Integration 323,431.527 Protector of Human Rights and Freedoms 19,785.93 8 Secretariat General of the Government 4,222.35 9 Human Resources Management Authority 1,753.01 10 Ministry of Defence 2,607.40 11 Ministry of Finance 8,434.7912 Customs Administration 44,243.3413 Statistical Office 299,324.71 14 Ministry of Education 19,594.51 15 Education Office 154,426.26 16 Central National Library "Đurđe Crnojević" 6,387.00 17 Ministry of Economy 276,238.4218 Ministry of Transport and Maritime Affairs 5,116.5019 Maritime Safety Administration 6,939.17 20 Water Administration 93,500.00 21 Ministry of Health 18,038.85 22 Ministry of Human and Minority Rights 29,574.04 23 Ministry of Spatial Planning and Environmental Protection 2,924,940.8824 Environment Protection Agency 42,396.1925 Seismological Office 2,828.06 26 National Tourism Organisation 46,070.58 27 Ministry for Information Society 2,839.00 28 Ministry of Science 48,245.45 29 Employment Agency 11,913.78 TOTAL 6,614,007.71
4.5 Receipts from loans and credits
According to the records in the General Ledger of the State Treasury the total realized receipts from loans and credits amounted in 2013 to 333,867,350.25 €. The amount of 145,350,142.00 € is the amount of revenues from credits taken from domestic sources and the amount of 188,517,208.25 € is the amount of credits taken from foreign sources.
Loans and credits from domestic sources ‐ Funds in the amount of 145,350,142.00 € recorded in the General Ledger of the State Treasury in the group of accounts 7511 – Loans and Credits from Domestic Sources in the amount of 115,500,000.00 € and issued securities in the amount of 29,850,142.00 € from the sale of treasury bills.
Inflow from the Credits of Commercial Banks ‐ Funds in the amount of 115,500,000.00 € are the loans and credits taken from the commercial banks in the country, as presented in the table below:
Table 27‐ Loans and Credits from Domestic Sources
No. DESCRIPTION Number of contract
Date of contract
Contracted amount
The amount withdrawn in
2013
Recorded in the General
Ledger in 2013
1 Erste banka Podgorica 5100260506 16/09/2013 16,000,000.00 16,000,000.00 16,000,000.00
2 Erste banka Podgorica 5100281743 20/12/2013 15,000,000.00 15,000,000.00 15,000,000.00
3 Erste banka Podgorica OD/11081/00075 27/04/2011 10,000,000.00 7,000,000.00 7,000,000.00
I Total ‐ Erste banka Podgorica 38,000,000.00 38,000,000.00
1 Societe Generale Banka 00‐420‐
2000288,8/4 24/06/2013 12,000,000.00 9,000,000.00 9,000,000.00
2 Societe Generale Banka 00‐421‐
6400001,4 10/12/2013 5,000,000.00 5,000,000.00 5,000,000.00
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
34
II Total ‐ Societe Generale Banka 14,000,000.00 14,000,000.00
1 Crnogorska Komercijalna banka 01‐1026 07/08/2013 42,500,000.00 42,500,000.00 42,500,000.00
2 Crnogorska Komercijalna banka 949‐88‐8 23/05/2013 15,000,000.00 12,000,000.00 12,000,000.00
III Total ‐ Crnogorska Komercijalna banka AD
54,500,000.00 54,500,000.00
Hipotekarna banka 0100‐2‐408/2 19/07/2013 3,000,000.00 3,000,000.00 3,000,000.00
IV Total ‐ Hipotekarna banka 3,000,000.00 3,000,000.00
1 Hypo Alpe Adria Banka AA131780DFXTC 27/06/2013 3,000,000.00 3,000,000.00 3,000,000.00
2 Hypo Alpe Adria Banka AA13211JD1XQ 30/07/2013 3,000,000.00 3,000,000.00 3,000,000.00
V Total ‐ Hypo Alpe Adria Banka 6,000,000.00 6,000,000.00
TOTAL 115,500,000.00
Erste banka – In 2013 the funds withdrawn based on the agreements made with the Erste Bank, amounted to 38,000,000.00 €. Funds on the basis of the Contract no. 5100260506 and Contract no. 5100281743 in the total amount of 31,000,000.00 € were withdrawn for the needs of the budget. On the basis of the Contract no. OD/1108100075 of 27 April 2011 and five annexes to this Contract (in the period from the signature to 11 December 2013) the funds in the amount of 7,000,000.00 € were withdrawn with a view to improving daily liquidity of operations ("Overdraft Credit"). The withdrawn credit funds were paid through credit orders into the Treasury General Account. Societe Generale Montenegro – In 2013 the credit funds in the amount of 14,000,000.00 € were withdrawn from the Societe Generale bank: the amount of 9,000,000.00 € on the basis of the concluded Contract on the short‐term revolving credit no. 00‐420‐2000288.8 of 20 April 2011 (including five annexes to this contract in the period from signature to 14 February 2014); and the amount of 5,000,000.00 € on the basis of the Contract on long‐term credit no. 00‐421‐6400001.4 of 9 December 2013. Payments of the credit funds by foreign creditors were made into the Treasury General Account on the basis of the request of the credit users. Alongside the above contracts, in 2013 another contract was concluded: Contract on Financial Leasing no. UZZ 121/2013. On 17 January 2013 the Government of Montenegro adopted the Decision No. 06‐66/5‐12 accepting the Contract on Financial Leasing for the purchase of property for the period of five years and the amount of 1,896,136.00 €. Crnogorska komercijalna banka – In 2013 the credit funds withdrawn from Crnogorska komercijalna banka amounted to 54,500,000.00 €:
On the basis of the Contract no. 01‐10026 of 7 August 2014 in the amount of 42,500,000.00€ the payment of the funds was made into the account of the OTP Bank Plc Hungary for the settlement of liability of guarantee issued on 20 November 2009 to the Aluminium Plant AD Podgorica for he credit with the OTP Bank Plc Hungary. Upon the Decision of the Ministry of Finance 06‐8337/3 of 16 August 2013, the inflow was recorded in the group of accounts 7512 ‐ Receipts from Loans and Credits.
On the basis of the Contract on revolving credit no. 949‐88‐8 of 23 May 2013 the amount of 12,000,000.00 € was withdrawn. Payments of the credit funds by foreign creditors were made into the Treasury General Account on the basis of the request of the credit users.
Hipotekarna banka ‐ In 2013 the credit funds were withdrawn from Hipotekarna banka on the basis of the Contract no. 0100‐2‐408/2 of 19 July 2013 in the amount of 3,000,000.00 €. Payments of the credit funds by creditors were made into the Treasury General Account on the basis of the request of the credit users. Hypo Alpe –Adria‐Bank AD Podgorica ‐ In 2013 the credit funds withdrawn from this bank amounted to 6,000,000.00 €: 3,000,000.00 € on the basis of the Contract no. AA13178DFXTC of 27 June 2013 and 3,000,000.00 € on the basis of the contract no. AA13211JD1XQ of 30 July 2013. The purpose was maintenance of current liquidity. Payments of the credit funds by creditors were made into the Treasury General Account on the basis of the request of the credit users.
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
35
Inflow from the issuance of Treasury Bills ‐ Funds in the amount of 29,850,142.00 € are the funds of the inflow from the issuance of the state Treasury Bills in 2013. Analysis of the information about the results of auctions in 2013 (published in the web‐site of the Central Bank of Montenegro) and the data of the Ministry of Finance (published in the web‐site of the Ministry of Finance) show that 18 auctions of Treasury Bills were conducted in 2013. According to the mentioned data, the amount of the sold Treasury Bills was 189,708,800.00 € in 2013. The General Ledger of the State Treasury recorded the inflow of the funds on the basis of the loans and credits from national sources in the amount of 115,000,000.00 €, while the emissions of Treasury Bills amounted to 29,850,142.00 €. The funds in the amount of 159,858,658.00 €, that are related to the inflow from the sold Treasury Bills were recorded in the General Ledger of the State Treasury.
Loans and credits from foreign sources ‐ Funds in the amount of 108,517,208.25 € refer to the loans and credits taken from foreign financial institutions. Analysis of the presented documents for the period from 1 January 2013 to 31 December 2013 shows that the total withdrawal of the credit funds refer to the withdrawal on the basis of 16 credits taken with 7 financial institutions in the amount of 129,493,271.94 €. For 14 out of 16 credits the currency of employment of funds was Euro, while for two credits the currencies were as follows: for the Hot Spot credit (USD) and for the credit APL3 (SDR).
The table below shows an overview of the withdrawal of credit funds in 2013 expressed in euro: Table 28‐ Loans and Credits from Foreign Sources
Creditor Purpose Amount
Deutsche Bank Budget needs 60,000,000.00
Total 60,000,000.00
Erste Bank Budget needs 30,000,000.00
Total 30,000,000.00
European Investment Bank Solid waste 2,000,000.00
Floods 17,000,000.00
Total 19,000,000.00
European Bank for Reconstruction and Development Kontejnerski terminali 148,530.34
Assembly Danilovgrad 70,626.36
Total 219,156.70
International Bank for Reconstruction and Development
Energy efficiency 1,520,811.92
Hot spot 130,332.62
Lamp 3,382,236.68
Midas 1,913,053.60
Higher education 75,692.48
Health sector 1,187,732.96
Total 8,209,860.26
International Development Association APL3 835,813.85
Total 835,813.85
German Development Bank
Energy efficiency 2,160,576.24
Stage III 5,914,587.15
Stage IV 3,153,277.74
Total 11,228,441.13
TOTAL 129,493,271.94
As the table shows, the funds withdrawn in 2013 amount to 129,493,271.94 €, while the funds recorded in the General Ledger of the State Treasury as the inflow from loans and credits from foreign sources amount to 108,517,208.25 €. The audit process included the control of inflow from loans and credits from foreign sources on the sample of 121,737,999.16 € or 94.01% of the total funds, as presented in the table below:
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
36
Table 29‐ Funds Withdrawn from Foreign Sources
Creditor Purpose
Processed credits by sample
Withdrawn amount
Recorded in the General Ledger of the treasury
Balance on 1 January 2013
Balance on 31 December
2013
Difference
Deutsche bank Budget needs 60,000,000.00 59,356,156.60 643,843.40
Erste Bank Budget needs 30,000,000.00 29,669,900.00 330,100.00
European Investment Bank
Floods 17,000,000.00 13,282,459.07
‐
3,700,872.24
16,668.69
International Bank for Reconstruction and Development
Energy efficiency
1,520,811.92 1,585,232.01
420,319.61
352,729.08
3,170.44
Midas 1,913,053.60 1,090,894.70
546,213.85
1,366,190.97
2,181.78
Higher education
75,692.48 251,083.88
1,924,307.50
1,748,413.90
502.20
German Development Bank
Energy efficiency
2,160,576.24 2,160,576.24
Stage III 5,914,587.15 5,914,587.15
Stage IV 3,153,277.74 3,153,277.74
Total by all creditors 121,737,999.13 105,235,726.26 2,890,840.96 7,168,206.19 12,224,907.64
Deutsche Bank AG London – (purpose of the credit is to be used for budget needs). According to the available documentation, the contracted credit amount is 60,000,000.00 € and the funds were withdrawn in full during 2013. Transfer of the credit funds by creditors was made into the account of the Central Bank of Montenegro. The General Ledger of the State Treasury records the inflow of the funds on the basis of the Decision no. 06‐7859/2 of 29 July 2013 in the amount of 59,356,156.60 €, i.e. by 643,843.40 € less than the withdrawn funds. Funds in the amount of 643,843.40 € are the banking costs for the implementation of the credit. Erste Bank – (purpose of the credit is to be used for budget needs). According to the available documentation, the contracted credit amount is 30,000,000.00 € and the funds were withdrawn in full during 2013. The creditors transferred the credit funds to the foreign currency account of the Ministry of Finance no. 1000‐02‐311322‐26 with the Erste Bank AD Podgorica in the amount of 29,700,000.000 €, i.e. 300,000.00 € less than the withdrawn funds. These 300,000.00 € are the banking costs for the implementation of the credit. The funds were transferred to the Treasury General Account based on the instructions of the Ministry of Finance ‐Document no. 06‐901/1 of 15 January 2013. The inflow on the basis of this credit in the amount of 29,699,900.00 € was recorded in the General Ledger of the State Treasury. The amount was reduced by 100,00 € of the amount transferred by the creditor for the costs of transfer to the Treasury General Account. Total costs of the credit amount to 300,100.00 €. European Investment Bank (EIB)‐ (purpose of the credit is rehabilitation from the floods). According to the available documentation, the contracted credit amount is 20,000,000.00 € and the funds withdrawn in 2013 amount to 17,000,000.00 €, while the amount of 3,000,000.00 € has not yet been withdrawn. The creditors transferred the credit funds to the foreign currency account of the Ministry of Finance no. 540‐1000023113226‐88. with the Erste Bank AD Podgorica. According to the analytical cards of the bank, on 1 January 2013 the balance in this account was zero, while the inflow in the account in the period from 1 January 2013 to 31 December 2013 amounted to 17,000,000.00 €. The outflow in the same period was 13.299.127.26 € (successively transferred funds to the Treasury General Account including the transfer costs). Thus, the balance in the account on 31 December 2013 was 3,700,872.24 €. The inflow on the basis of this credit in the amount of 13,282,459.07 € was recorded in the General Ledger of the State Treasury. The amount was by 16,668.19 € lower than the total outflow from the account.
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
37
International Bank for Reconstruction and Development (IBRD)‐ the funds were employed for the following:
MIDAS Project – According to the available documentation, the contracted amount of the credit was 11,000,000.00 €, while the funds withdrawn in 2013 amounted to 1,913,053.60 €. The creditors transferred the credit funds to the foreign currency account of the Ministry of Finance sub‐account no. 64‐02010658 with Crnogorska Komercijalna Bank. According to the analytical cards for the period from 1 January 2013 to 31 December 2013, the balance on 1 January 2013 was 546.213,85 €. The inflow of funds to this account amounted to 1,913,053.60 €, while the outflow amounted to 1,093,076.48 € (successive transfer of funds including the transfer costs). The balance on 31 December 2013 amounted to 1,336,190.97 €. Inflow recorded in the General Ledger of the State Treasury amounted to 1,090,894.70 € and it was by 2.101,78 € lower than the outflow from the account the credit is being implemented through.
Energy Efficiency Project ‐ Funds related to this contract amount to 6,500,000.00 €. The amount of 1,520,812.00 € was withdrawn in 2013, while the funds that were not withdrawn amounted to 250.941,00 €. The creditors transferred the credit funds to the foreign currency account of the Ministry of Finance, sub‐account no. 61‐02010658 with Crnogorska Komercijalna Bank. According to the analytical cards for the period from 1 January 2013 to 31 December 2013, the balance on 1 January 2013 was 420.319.61€, €. The inflow of funds to this account amounted to 1,520,811.92€ (the withdrawn funds were recorded in the account in their entirety), while the outflow amounted to 1,588,402.45 € (successive transfer of funds including the banking costs). The balance on 31 December 2013 amounted to 352.7029,08 €. The inflow in the amount of 1,585,232.01 € was recorded in the General Ledger of the State Treasury. This is 3,170.44 € less than the recorded outflow from the account through which the credit is being implemented (banking costs). At the same time, the recorded inflow is by 64,420.09 € higher than the amount of the funds withdrawn in 2013.
Project Higher Education and Research for Innovations and Competitiveness – Contracted funds amount to 12,000,000.00 €. The amount of 75,692.00 € was withdrawn in 2013, while the funds that were not withdrawn amounted to 9.894,308,00 €. The creditors transferred the credit funds to the foreign currency account of the Ministry of Finance, sub‐account no. 156‐02010658. with Crnogorska Komercijalna Bank. According to the analytical cards for the period from 1 January 2013 to 31 December 2013, the balance on 1 January 2013 was 1,924,307.50 €. The inflow of funds to this account amounted to 75,692.48 €, while the outflow amounted to 251,586.08 € (successive transfer of funds including the transfer costs). The balance on 31 December 2013 amounted to 1,748,413.90 €. According to the enclosed documentation, the inflow in the amount of 251,083.88 € was recorded in the General Ledger of the State Treasury. This is 502.20 € less than the recorded outflow from the account through which the credit is being implemented (banking costs).
The audit of the selected sample established that the funds in the amount of 996,466.51 € ‐ the costs of banking services for the transactions of financing from the borrowings abroad have not been recorded in the General Ledger of the State Treasury.
German Development Bank (KfW) – Funds for project loans:
Energy Efficiency Project ‐ Contracted amount: 11,500,000.00 €. The amount of 2,160,756.24 € was withdrawn in 2013, while the funds that were not withdrawn amounted to 9,339,424.00 €.
Water Supply Project Stage III – Contracted funds amount to 28,000,000.00 €. The amount of 5,914,673.16 € was withdrawn in 2013, while the funds that were not withdrawn amounted to 15,219,713.19 €. Through the overview of the Contract no. 01‐8638/1 of 31 November 2007 it was established that Montenegro is the Borrower. Enclosed to this Contract also came the Contract on Forwarding the Credit Funds (for the municipalities of
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
38
Bar, Tivat and Herceg Novi), concluded between the Government of Montenegro, the Ministry of Finance and these municipalities.
Water Supply Project ‐ Stage IV – Contracted funds amount to 25,000,000.00 €. The amount of 3,153,277.74 € was withdrawn in 2013, while the funds that were not withdrawn amounted to 17,993,258.00 €.
Inflow of funds form the securities issued to the non‐residents ‐ Funds in the amount of 80,000,000.00 € are the inflows from the securities issued to non‐residents, issuance of EUROBONDS in the international financial market with the mediation of Morgan Stanlez&Co. Internacional plc. The funds were withdrawn in 2013 through the transfer of funds to the account of the Central Bank (sub‐account 0044). Inflow of funds in this sub‐account was 79,523,199.00 €, i.e. reduced by the amount of 476,801.00 € i.e. the costs incurred during the issuance of EUROBONDS. On the basis of the Decision no. 06‐138/1 of 21 January 2014, this amount was recorded in the General Ledger of the State Treasury as inflow and outflow of funds.
5. FINAL STATEMENT OF ACCOUNTS OF THE TAX AUTHORITY
On the basis of Article 6 paragraph 2 of the Law on Tax Administration11 the Ministry of Finance adopted the Rulebook on Tax Accounting12. The Rulebook governs the manner of keeping accountancy records on taxes, contributions, fees and other public revenues, the manner of concluding accounting records, manner of composing the Final Statement of Accounts of the tax authority, deadlines for accounting for accountancy changes and the manner of keeping the accountancy records and documents. Tax Administration composed the Final Statement of Accounts for 2013 and submitted it to the Ministry of Finance ‐ document no. 03/1‐6792/1‐14 on 19 May 2014 which is not in line with Article 19 of the Rulebook on Tax Accountancy, according to which the tax authority is obliged to submit the Final Statement of Accounts to the Ministry of Finance before 31 March of the current year for the previous year.
Analysis of the documentation submitted by the Central Bank of Montenegro established that in the account for the tax revenues collected by the Tax Administration, no. 907000000008200112 there were 898,366.96 € on 1 January 2013 and 380,528.74 € on 31 December 2013. Analysis of the Final Statement of Accounts of the tax authority for 2013 established that in the class "1" on 31 December 2013 there were no funds recorded. That was not in line with the data obtained from the Central Bank, i.e. the records do not match the data related to the account for collection of public revenues that are within the competences of the Tax Administration (identification no. 820). Overview of the tax balance on 1 January 2013 shows that the amounts charged against the accounts of class "3" (tax debt) do not match the amounts approved in the accounts of the class "7", which is not in line with Article 10 of the Rulebook on Tax Accountancy. The amounts charged against accounts of the class "7" (advance payments) do not match the amounts that the accounts of the class "3" were approved of. That is not in line with Article 10 of the Rulebook on Tax Accountancy, as presented in the table below: Table 30 – Overview of Class 3 and 7 in the Tax Balance on 1 January 2013
Class Debit Credit
3 506,371,364.03 469,145,459.88
7 871,401,460.15 908,627,364.30 Overview of the tax balance on 1 January 2013 shows that the amounts charged against accounts of class "3" (tax debt) do not match the amounts approved in the accounts of the class "7", which is not in line with Article 10 of the Rulebook on Tax Accountancy. The amounts charged against the accounts class "7" (advance payments) do not match the amounts that the accounts of the class "3" were approved of. That is not in line with Article 10 of the Rulebook on Tax Accountancy, as presented in the table below:
11 OG MNE No. 65/01 and 80/04
12 OG MNE No. 81/06
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
39
Table 31 – Overview of class 3 and 7 in the tax balance on 31 December 2013 Class Debit Credit
3 631,778,442.68 443,144,903.41
7 840,734,950.03 1,029,368,489.30
The audit established that the manner of keeping accountancy records on public revenues, the manner of concluding accountancy records and records of opening balance do not provide data that can be matched with the balance of the money in the accounts for public revenues collected by the Tax Administration. There are no data on the basis of which it would be possible reliably to establish what the amount of the tax debt is, or the amount of the advance payment in the beginning and in the end of the year. These mismatches are present for a longer period of time and they do not come from the previous year. The mismatch has to be solved by adjustments to the opening balance for the amount of mismatch and records should be fully harmonized with the Rulebook on Tax Accountancy.
Order on the Manner of Payment of Public Revenues ‐ section General Provisions, item 5 ‐ stipulates that Tax Administration, Customs Administration, Ministry of Interior and Police Directorate, after identification of revenues, transfer the funds from the clearing accounts to the Central Account of the State Treasury, submitting at the same time the ""Recipient Statement" about the structure of public revenues by eco codes and by municipalities. Transfer of funds is done at least once a day, with the obligation to have the balance in the clearing account zero in the end of the workday. Analysis of the collected documentation related to the balance in the accounts with the Central Bank established the following: Table 32‐ Balance in the Accounts with the Central Bank (Spending Units that Collect Public Revenues)
Name Account Balance on 31 December 2012
Balance on 31 December 2013
Customs Administration of Montenegro 907000000008050150 ‐ ‐
Tax Administration of Montenegro 907000000008200112 898,366.96 380,528.74
Ministry of Interior 907000000008250164 ‐ ‐
Police Directorate 907000000008400126 ‐ ‐
The balances from the beginning and from the end of 2013 were recorded in the clearing account of the Tax Administration. The presented amounts were not transferred to the Central Account of the State Treasury, i.e. all the activities that preceded the transfer of funds paid from the clearing account to the Central Account of the State Treasury were not timely and fully done and that is not in compliance with the Order on the Manner of Payment of Public Revenues. According to the provisions of the Order on the Manner of Payment of Public Revenues, the transfer of funds to the Central Account of the State Treasury should be done after the paid revenues are identified.
Tax Administration has not ensured the implementation of the provisions of the Order on the Manner of Payment of Public Revenues ‐ chapter General Provisions, item 5 ‐ which defines the obligation that, after being identified, the payments have to be transferred from the clearing account to the Central Account of the State Treasury at least once a day, with the obligation to have the status zero on the clearance accounts at the end of the day.
According to the documentation of the Central Bank (data on the public revenues collected and allocated to the accounts of the Tax Administration in the period from 1 January to 31 December 2013, the total amount of funds in the clearing account of the Tax Administration (907‐82001‐12), amounted to 940,117,305.26 €. According to the Report on Work of the Tax Administration for 2013, the public revenues collected through enforced collection, through the measures undertaken within the procedures to implement the provisions of the Law on Tax Administration, amount to 114,057,219.000 € and they are presented in the table below by type of revenue, number of undertaken measures and the amount of collected funds:
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
40
Table 33‐ Public Revenues Collected Through Enforced Collection by Type of Revenue
Number Other revenues Number of undertaken
measures Amount
1 Personal income tax 5,582 7,813,365
2 Tax on self‐employment 3,983 1,039,550
3 Tax on income from property and property rights
947 147,665
4 Tax on income from capital and capital gains 7 9,111
5 Profit tax 1,944 5,131,692
6 VAT 8,143 39,907,707
7 Turnover tax 2,496 1,068,570
8 Excise 31 15,851,322
9 Concessions 571 7,897,204
10 Tax on sale of property 2,739 5,026,830
11 Contributions 8,827 30,164,203
Total 35,270 114,057,219 Regulation on the conditions for deferring collection of tax and non‐tax claims13 defines the conditions and deadlines for issuing permission to taxpayers to defer payments of tax and non‐tax debts. According to Article 3 of the Regulation, upon the request of the taxpayer the Ministry of Finance grants the deferral. According to the Report on the deferred payment (enactment of the Tax Administration no. 03/3‐310/1‐14 of 14 January 2014, with the cross‐section as of 27 December 2013), it was established that in 2013, on the basis of the decisions of the Ministry of Finance, taxpayers were allowed deferrals in payment of taxes in the amount of 84,976,565.81€. Structure of the deferred tax liabilities in 2013 by type is presented in the table below: Table 34‐ Deferred Tax Liabilities
Structure of the deferred tax liabilities Amount
Personal income tax 12,004,265.36
Profit tax 695,296.16
Contributions 51,183,649.38
Turnover tax 328,887.76
Concessions 892,106.51
VAT 12,705,682.21
Interests 336,734.39
Excise 6,829,944.04
Total 84,976,565.81 Analysis of the decisions on the deferred payment of taxes composed by the Ministry of Finance (selected by the random sample method) established that the Ministry of Finance, upon the request of tax payers, used to approve deferred payment of the tax debt in twelve monthly instalments or six monthly instalments at most, which is in line with Article 4 and Article 5 of the Regulation. The Ministry of Finance used to approve the deferred payment of the tax debt to the taxpayer provided that the taxpayer ensured a bank guarantee or some other instrument of security (control showed that promissory notes or bank guarantees were approved) in the amount of the outstanding liabilities and provided that it is submitted to the Tax Administration, which is in line with item 8 of Article 2 of the Regulation. 6. BUDGET EXPENDITURES
Budget expenditures expressed in the Proposal Law on the Final Statement of Accounts of the Budget for 2013 amount to 1,603,381,441.53 €. The following table shows the overview of the realized expenditures from 2013 by structure:
13 OG MNE No. 67/09, 23/10, 26/10 and 53/13
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
41
Table 35 ‐ Overview of Realized Expenditures in 2013 1) Current Expenditures 597,567,511.01 1) Transfers for social care 482,967,420.48 3) Transfers to institutions, individuals, non‐governmental and public sector 94,307,026.21 4) Capital expenditures 85,294,347.28 5) Loans and credits 2,752,781.98 6) Repayment of debt 326,365,509.78 7) Reserves 14,126,844.79
1) Current Expenditures The Budget Law for 2013 plans the current budget funds in the amount of 590,314,154.23 €, while through reallocation of funds this was increased by 35,121,638.42 € and reduced by 42,425,204.11€. Hence, the available funds planned in the current budget amounted to 583,010,628.54 €. According to the data expressed in the Proposal Law on the Final Statement of Accounts of the Budget, the current expenditures realized in 2013 amounted to 597,567,511.01 €. Table 36‐ Current Expenditures
ExpendituresLaw on Budget
for 2013Reallocation + Reallocation
Funds available in
the current budget
Proposal Law on the Final
Statement of Accounts for 1) Gross salaries and contributions paid by the em 372.128.611,75 9.768.734,24 8.147.334,85 373.750.011,14 371.004.370,17
2) Other personal incomes 10.819.302,41 4.047.925,39 1.044.719,18 13.822.508,62 12.119.032,27
3) Expenditures for material 25.319.598,15 5.720.136,36 2.478.163,06 28.561.571,45 27.269.260,95
4) Expenditures for services 43.640.736,36 7.460.498,19 4.116.224,93 46.985.009,62 49.868.855,68
5) Expenditures for current maintenance 20.466.680,05 718.178,26 337.324,00 20.847.543,31 20.415.784,17
6) Interests 70.403.607,30 ‐ 23.221.072,79 47.182.534,51 67.922.775,54
7) Rent 7.875.739,40 589.123,42 355.441,28 8.109.421,54 7.928.041,81
8) Subsidies 14.230.000,00 3.448.464,62 177.134,40 17.501.330,22 17.425.749,96
9) Other expenditures 25.429.918,81 3.368.568,94 2.547.789,62 26.250.698,13 23.613.640,46
Total 590.314.194,23 35.121.638,42 42.425.204,11 583.010.628,54 597.567.511,01
Gross salaries and contributions paid by the employer – Spending units, covered by the audit, calculated their gross salaries and paid salaries according to the Law on Salaries of Civil Servants and State Employees14, Instruction on the manner of calculation and payment of taxes and contributions from personal incomes on the basis of employment15 and Decision on increasing salaries of civil servants and state employees for the performance of certain tasks16. Spending units are not submitting the IOPPD 1 form to the Tax Administration within the required deadlines. This form is used for the monthly reports on the paid personal incomes, calculated and withheld taxes and contributions from and to personal incomes. The audit also identified delays in submitting the IOPPD 3 form ‐ annual report on the calculated personal incomes, calculated and paid taxes and contributions from and to personal incomes.
The audit established that the Ministry of Interior, according to Article 27 of the Decision on increasing salaries of civil servants and state employees for the performance of certain tasks, calculated the flight bonus to the employees, who are entitled to this bonus and paid it from the group of accounts 412 ‐ Other Fees in the amount of 272,817.94 €, and paid taxes and contributions calculated to this bonus from the appropriate accounts of the group 411 ‐ Gross Salaries and Contributions Paid by Employer. Flight bonus is a part of the salary of employees and therefore these expenditures should be planned and paid from the Gross Salaries and Contributions by Employer. It is also necessary that the Ministry of Interior stipulate the obligation of compiling and submitting the Report on the hours the employees worked (regular working hours, overtime, night work, work on state and religious holidays, duty hours etc.). This obligation should be provided for in the Book of Procedures, i.e. in the Instruction on the manner of preparing the data for calculation and payment of salaries. The Ministry of Interior should also stipulate the form "Data for calculation of salaries of employees" according to the Directions on State Treasury Operations. Other personal incomes – The control of expenditures recorded in the group of accounts 412 ‐ Other Personal Incomes established that the Real‐Estate Administration paid fees to the members of
14 OG MNE No. 14/12
15 OG MNE No. 45/08, 04/10 and 08/132
16 OG MNE No. 54/10 and 62/11
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
42
the Commission for Assessment of the Value of Property in the Territory of Montenegro without calculating taxes and contributions thereon. Public Property Administration made payments to the employees due to the increased workload according to the new Regulation on the type and procedure of granting rewards to civil servants and state employees and did not calculate nor pay the corresponding taxes and contributions. Expenditures for material, expenditures for services and expenditures for current maintenance‐ Audit of these expenditures indicated to certain deficiencies in the system of internal controls regulating consumption of both goods and services. The spending units should make payments in line with item 43 of the Directions on State Treasury Operations, on the basis of the request for payment that has to be certified by certifying officer and after it is established that physical or legal entity provided the service or delivered the goods.
Interest ‐ Budget Law for 2013 planned the funds for payment of interest at the level of 70,403,607.30 €, while the planned amount was reduced by reallocation of funds to the level of 23,221,072.79 €. Thus, the available funds expressed in the plan of the current budget amounted to 47,182,534.51 €. Expenditures for interest were realized in the amount of 67,922,775.54 € which is by 43.96% more than the amount planned in the current budget. Interest includes expenditures for the payment of interests to residents and non‐residents. The table below shows the plan and execution of the expenditures for interests to residents and non‐residents:
Table 37 ‐ Expenditures for Interests Description Expenditures for
interests to residents Expenditures for interests to non‐
residents
Total
1) Defined in the annual plan for 2013 5,982,000.00 64421607.3 70,403,607.30 2) Increased through reallocation ‐ ‐ ‐ 3) Reduced through reallocation 618,000.00 22603072.79 23,221,072.79 4) Current Budget 5,364,000.00 41818534.51 47,182,534.51 5) Executed 8,403,067.87 59519707.67 67,922,775.54 6) Executed/Planned 156.66 142.33 143.96
Repayment of interests to residents ‐ Interests to residents were executed in the amount of 8,403,067.87 €, which is by 56,66% more than the funds available in the current budget. Audit of the expenditures for the interests to residents did not include the expenditures in the amount of 136,569.55 € for: expenditures for interests of the Ministry of Defence in the amount of 703,43 €, Health Insurance Fund in the amount of 22,119.76 € and Employment Agency in the amount of 113,746.41 €. Structure of expenditures on the basis of the interests to residents expressed with the Ministry of Finance is shown in the table below:
Table 38‐ Structure of Expenditures for Interests Description Interests
1) Expenditures for interests within the credits with commercial banks 5,178,822.50
1.1. Expenditures for interests within the credits taken with commercial banks 1,730,501.74
1.2. Expenditures for interests within credits that were taken over 925,563.47
1.3 Expenditures for interests within the credits for completion of the construction of the Police Directorate building 209,419.45
1.4. Expenditures for interest within the credit for restitution of the monuments of culture in Cetinje 196,924.30
1.5 Expenditures for interest within the long‐term credit for financing the budget 865,535.31
1.6 Expenditures for interest within the long‐term credit 1,150,942.50
1.7 Expenditures for interest within the financial leasing 99,935.73
2) Expenditures for interest for Treasury bills 3,060,079.41
3) Expenditures for interests according to the Decision of the Ministry of Finance regarding the Pension and Disability Insurance Fund debt
22,409.44
4) Expenditures for the interest according to the Contract concluded between the Public Works Directorate and GP Cetinje 5,186.97
Total 8,266,498.32
Repayment of interests to non‐residents ‐ Expenditures for interests to non‐residents were executed in the amount of 59,519,707.67 €, which is by 542.33% more than the funds available in the current budget. The above amount of expenditures included the interest on the basis of the credits taken with financial institutions abroad in the amount of 58,207,561.43 € and the other costs in the amount of 1,312,146.14 €. Structure of expenditures on the basis of the interests to non‐residents is shown in the Annex to this Report:
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
43
Subsidies ‐ Expenditures for subsidies were realized in the amount of 17,425,749.96 € or 99.57% of the available funds. Expenditures for subsidies were executed in the spending units as follows: Ministry of Economy ‐ in the amount of 4,325,129.75 €; Ministry of Transport and Maritime Affairs ‐ in the amount of 2,400,000.00 €; Ministry of Sustainable Development and Tourism ‐ in the amount of 549,999.96 €; Ministry of Agriculture and Rural Development ‐ in the amount of 9,519,790.90 €; Pension and Disability Insurance Fund ‐ in the amount of 600,829.35 € and State Audit Institution in the amount of 30,000.00 €.
Ministry of Economy made expenditures for subsidies in the amount of 4,325,129.75 €. The amount of 2,484,450.70 € is the amount for covering the costs of "Montenegro Bonus" DOO Cetinje, on the basis of the Contract on business‐technical cooperation with the Aluminium Plant Podgorica AD, based on the Government decision. According to the decision of the Government, the Ministry of Economy subsidized electricity bills for the most vulnerable categories of population. Ministry of Agriculture and Rural Development made expenditures for subsidies in the amount of 9,519,790.90€. Pension and Disability Insurance Fund allocated the amount of 330,000.00 € out of the earmarked funds to "Pension and Disability Insurance Fund" Ulcinj. It was done on the basis of the Steering Committee decision no. 20 of 25 March 2013. The Fund also allocated the amount of 270,000.00 € for settling the arrears incurred for taxes and contributions. It was done on the basis of the Steering Committee decision no. 49 of 6 September 2013.
Other expenditures – Audit of these expenditures established that certain spending units hire persons on the basis of temporary service contract or on the basis of agreements on temporary and provisional work for certain tasks that are envisaged as regular and for which there are job positions envisaged. Spending units are recommended to hire persons on the basis of temporary service contract or agreements on temporary and provisional work only in justified cases and according to the Law on Obligations.
6.2 Transfers for social care ‐ pension and disability insurance rights
Pension and Disability Insurance Fund recorded the earmarked revenues based on the data from the clearing accounts and the data from the "Recipient Statement".
State Treasury and the Pension and Disability Insurance Fund should harmonise their data about the amount of the earmarked and general revenues expressed in the Proposal Law on the Final Statement of Accounts of the Budget for 2013, Pension and Disability Insurance Act and the Budget Law.
6.3 Repayment of debts
Repayment of debts covers the expenditures for the repayment of securities and credits to residents and non‐residents, repayment of guarantees in the country and abroad and the repayment of liabilities from the past. In the Budget Law for 2013 the expenditures for repayment of debts were planned in the amount of 118,677,132.00 €, while through reallocation of funds the planned funds were increased by 532,491.22 €. Hence, the available funds expressed in the plan of the current budget amounted to 119,209,623.20 €. The expenditures for the repayment of debts expressed in the Proposal Law on the Final Statement of Accounts of the Budget for 2013 amounted to 326,365,509.78 €, while in the General Ledger of the Treasury the figure is 341,799,234.35 €. It is 173.77% more than the amount planned in the current budget, as presented in the table below: Table 39 ‐ Expenditures for Repayment of Debt 1) Law on the Budget for 2013 118,677,132.00
2) Increased through reallocation 532,491.22
3) Reduced through reallocation ‐
4) Available funds 119,209,623.20
Executed on the basis of the data from the General Ledger of the Treasury 341,799,234.35
Funds transferred to capital expenditures 15,433,724.57
5) Executed according to the Proposal Law on the Final Statement of Accounts of the Budget for 2013 326,365,509.78
6) Executed/Planned 273.77
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
44
Audit of the Proposal Law on the Final Statement of Accounts of the Budget for 2013 established that the funds from the group of accounts 4611 ‐ Repayment of Securities and Credits to Residents ‐ were used to pay the expenditures on the basis of the Contract for works of the Transport Directorate in the amount of 14,757,789.72 € and Telekom of Montenegro in the amount of 678,934.85 €. In the Proposal Law on the Final Statement of Accounts of the Budget for 2013 the Ministry of Finance reduced the expenditures in the group of accounts 4611 ‐ Repayment of Securities and Credits to Residents by the amount of 15,433,724.57 € while increasing the Capital expenditures ‐ group of accounts 4411 ‐ Expenditures for Infrastructure of General Importance. However, the Ministry did not made the appropriate adjustment in the General Ledger of the Treasury. Repayment of Debt (461) ‐ Budget Law for 2013 planned the amount of 86,500,000.00 € for the expenditures for repayment of debt. The realized expenditures amounted to 158,591,727.18€ or 83.34% more than the funds provided for in the plan, as presented in the table below: Table 40 ‐ Expenditures for repayment of securities and credits
Description Repayment of securities and credits to residents
Repayment of securities and credits to non‐
residents
Total
1) Law on the Budget for 2013 23,800,000.00 62,700,000.00 86,500,000.00
2) Increased through reallocation
3) Reduced through reallocation
4) Available funds for spending 23,800,000.00 62,700,000.00 86,500,000.00
Executed on the basis of the data from the General Ledger of the treasury
107,621,020.42
Reduced ‐ Funds transferred to capital expenditures 15,433,724.57
5) Executed 92,187,295.85 66,404,431.33 158,591,727.18
6) Executed/Planned 387.34 105.91 183.34 Repayment of securities and credits to residents (4611) ‐ Budget Law for 2013 planned the amount of 23,800,000.00€ for the expenditures for repayment of securities and credits to residents. The realized expenditures amounted to 92,187,295.85€ or 287.34% more than envisaged in the plan. Structure of expenditures for repayment of securities and credits to the residents is given in the table below: Table 41 ‐ Expenditures for Repayment of Securities and Credits to Residents No.
Description Principal
1) Expenditures for repayment of credits to commercial banks 65,473,029.65 1.1. Expenditures for repayment of debts based on the credits taken with banks 52,775,168.47 1.2. Expenditures for repayment of debts based on the taken‐over credits 3,774,315.75 1.3 Expenditures for the completion of the construction of the Police Directorate building 1,531,198.30 1.4. Expenditures for restitution of the monuments of culture in Cetinje 1,255,134.56 1.5 Long‐term credit for financing the budget 2,000,000.00 1.6 Long‐term credit 3,863,636.00 1.7 Financial leasing 273,576.57 2) Expenditures for repayment of debt based on Treasury bills 24,480,000.00 3) Expenditures based on the Decision of the Ministry of Finance regarding the Pension and Disability Insurance Fund debt
187,018.45
4) Expenditures based on the Contract concluded between the Public Works Directorate and GP Cetinje
370,777.80
5) Expenditures for repayment of debt based on the bonds due 1,676,469.95 Total 92,187,295.85 Expenditures for repayment of credits to commercial banks in the amount of 65,473,029.65 € were incurred for:
Expenditures for repayment of debts based on credits taken by the Government ‐ Ministry of Finance with commercial banks in the amount of 52,775,168.47 € for the budget needs.
Expenditures in the amount of 3,774,315.75 € for the repayment of the principal of debt, based on the Decision of the Government no. 03‐5462 of 09 June 2011 rendered according to the Budget Law of Montenegro for 2011. Repayment is based on taking over and
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
45
conversion of the debt into the share capital of the Montenegrin fund for solidary housing, Public Company Regional Water Supply Montenegrin coast and Railway Transport of Montenegro.
Expenditures in the amount 1,531,198.30 € for the repayment of debt based on the credit between the Erste bank AD Podgorica and the Government ‐ Ministry of Finance for the amount of 6,000,000.00 € in the agreement no. LD/10050/00082 of 25 February 2010 for the completion of works on the building of the Police Directorate in Podgorica.
Expenditures in the amount 1,255,134.56 € for the repayment of debt based on the Credit Agreement no. LD/10103/00110 of 14 April 2010 between the Erste bank AD Podgorica and the Government ‐ Ministry of Finance for the amount of 5,000,000.00 € for the restoration of the monuments of culture in Cetinje.
The amount of the repayment of debt of 2,000,000.00 € based on the Agreement on the long‐term credit no. 00‐421‐3300002.4 concluded between the Societe Generale Group and the Government ‐ the Ministry of Finance for the amount of 10,000,000.00 € and the term of payment of 5 years for the needs of financing the budget.
The amount for the repayment of debt of 3,863,636.00 € based on the Long‐term Credit Agreement no. 01‐10026 of 7 August 2013 concluded between Crnogorska Komercijalna Banka ‐ OTP GROUP and the Ministry of Finance on the basis of the Decision of the Government 08‐1953 of 2 August 2013 in the amount of 42,500,000.00 €. The funds of this credit were used to settle the liabilities arising from the activated OTP bank guarantee, given by the Government as the security for the credit arrangement of the Aluminium Plant A.D. Podgorica.
The expenditure in the amount of 273,576.57 € for the repayment of the principal of debt based on the Financial Leasing Agreement concluded between the Societe Generale Banka Montenegro A.D. Podgorica and the Government ‐ the Ministry of Finance no. 06‐66/5‐12 of 19 February 2013 in the amount of 1,896,136.00 €.
Expenditures for the repayment of debt arising from the Treasury bills – in the amount of 24,480,000.00 € incurred on the basis of the paid repayment of debt as follows:
The amount of 4,000,000.00 € for the repayment of debt according to the auction results, i.e. the emission of 91‐day treasury bills according to the Central Bank Report.
The amount of 20,480,000.00 € for the repayment of debt according to the auction results, i.e. the emission of 182‐day treasury bills according to the Central Bank Report.
Expenditures based on the Decision of the Ministry of Finance on the debt of the Pension and Disability Insurance Fund – The expenditure in the amount of 187,018.45 € was recorded as expenditure in the General Ledger of the Treasury on the basis of the Decision of the Ministry of Finance no. 06‐36/1 of 10 January 2013. This expenditure is related to the payment of liabilities of the Pension and Disability Insurance Fund towards Crnogorska Komercijalna Bank, based on the Contract on the overdraft credit no. 952‐88‐135 of 16 April 2010, incurred before the Pension and Disability Insurance Fund was integrated into the State Treasury.
Expenditures based on the agreement between Public Works Directorate and GP Cetinje – Expenditure in the amount of 370,777.80 € refers to the repayment of debt based on the Long‐term Credit Agreement no. KR2007/6326.1 of 16 May 2007 concluded between the NLB Montenegrobanka a.d. Podgorica and Municipality of Budva for the implementation of the programme of the Public Works Directorate ‐ development of the area with infrastructure connections and works on equipping the building of the Primary School in Budva according to the Construction Agreement no. 06‐768 of 4 April 2007 concluded between the Public Works Directorate and GP Cetinje DOO.
Expenditures for repayment of the principal of the debt based on the bonds in the amount of 1,676,469.95 € are related to:
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
46
Obligation to settle the debt based on the OBFR bonds in the amount of 1,463,208.95 €, according to the Decision on the emission of bonds of Montenegro for the payment of unsettled liabilities to employees who became redundant17, that were due on 27 July 2013.
Obligation to settle the debt based on the DP13 bonds in the amount of 213,261.00 €, according to the Decision on the emission of Montenegrin bonds for the needs of investing into the rehabilitation of the road network18, that were due on 15 April 2013
Repayment of securities and credits to non‐residents (4612)‐ Budget Law for 2013 planned the amount of 62,700,000.00 € for the expenditures for repayment of securities and credits to non‐residents. The realized expenditures amounted to 66,404,431.33 € or 5.91% more than envisaged in the plan. Overview of the expenditures for the repayment of debt based on credits taken from the financial institutions abroad is attached to this Report.
Repayment of guaranties ‐ The funds paid on the basis of the guarantees issued in the amount of 107,230,592.50 €: for the repayment of guarantees in the country in the amount of 4,453,321.57 €; and for the payment of guarantees abroad in the amount of 102,777,270.93 €. In the group of accounts 462 ‐ Repayment of Guarantees ‐ there are payments recorded for all expenditures incurred on the basis of repayment of debt based on issued guarantees according to the Regulation on Uniform Classification of Accounts for the Budget, Extra‐budgetary Funds and Budgets of Municipalities.
Repayment of guarantees in the country – Funds in the amount of 4,453,321.57 € paid on the basis of the guarantees issued in the country refer to:
The amount of 449,938.41 € for the issued Guarantee of the Government of Montenegro no. 06‐1828/1 of 9 June 2009 on the basis of the Agreement on the Short‐Term Credit no. KR 2009/1600 of 11 May 2009 in the amount of 5,000,000.00 € concluded between NLB Montenegrobanka a.d. Podgorica and Rudnik Boksita a.d.Nikšić.
The amount of 1,735,623.76 € for the issued Guarantee of the Government of Montenegro no. 06‐3045/1 of 27 July 2011 on the basis of the Credit Agreement no. LD/11206/00019 of 27 July 2011 in the amount of 1,500,000.00 € concluded between Erste Banka a.d. Podgorica and A.D Fabrika elektroda “Piva” Plužine. The expenditures in the amount of 1,735,623.76 € refer to the repayment of debt in the amount of 1,654,068.22 €, repayment of the regular interest in the amount of 78,214.20 € and the default interest in the amount of 3,341.34 €.
Amount of 1,692,211.37 € for the issued guarantees of the Government of Montenegro: Guarantee no. 06‐2642/1 of 27 July 2010 on the basis of the Credit Agreement no. 800‐
1991/2 of 26 July 2010 in the amount of 800,000.00 € concluded between Hipotekarna Bank a.d. Podgorica and MI‐RAI Group d.o.o. Nikšić
Guarantee no. 06‐3552/1 of 13 October 2011 on the basis of the Credit Agreement no. 800‐1353/2 of 13 September 2013 in the amount of 700,000.00 € concluded between Hipotekarna Bank a.d. Podgorica and MI‐RAI Group d.o.o. Nikšić. Hipotekarna bank collected its claims from the earmarked funds of the deposits that were in the bank account.
The amount of 575,548.03 € for the issued Guarantee of the Government of Montenegro no. 06‐4895/1 of 30 December 2011 on the basis of the Long‐term Credit Agreement no. KR1383/11 of 26 December 2011 in the amount of 565,000.00 € concluded between the Hypo Alpe Adria bank a.d. Podgorica and Lenka a.d. Bijelo Polje. The expenditure in the amount of 575,548.03 € refers to the repayment of the principal in the amount of 500,245.00 € and the repayment of the interest in the amount of 75,303.03 €.
Repayment of guarantees abroad – Funds in the amount of 102,777,270.93 € paid on the basis of the guarantees issued abroad refer to:
17 OG MNE No. 44/12 18 OG MNE No. 30/06
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
47
Expenditure in the amount of 42,720,790.93 € for the guarantee issued by the Government of Montenegro on 20 November 2009 on the basis of the Credit Agreement made between the OTP Bank PLC Hungarij and Aluminium plant a.d. Podgorica. The amount of 42,500,000.00€ is paid from the credit funds based on the Agreement no. 01‐10026 of 7 August 2013 concluded between the Crnogorska komercijalna banka AD Podgorica and the Government of Montenegro‐ Ministry of Finance. The amount of 220,790.93 € was paid from the budget funds and it refers to the difference between the overall amount of the activated guarantee (principal and interest) and the amount based on the concluded Agreement.
Expenditure in the amount of 60,056,480.00 € refers to the paid liability based on the issued guarantee according to the Agreement for 60,000,000.00 € concluded between the VTP Bank AG Austria and the Government of Montenegro ‐ Ministry of Finance. The amount of 60,056,480.00€ refers to the repayment of the debt in the amount of 60,000,000.00 € and the repayment of interest in the amount of 56,480.00 €. This amount was paid from the credit funds based on the agreement no. 01‐8640 of 1 July 2013 concluded between the Government of Montenegro ‐ Ministry of Finance and Deutsh Bank Ag London Branch and Erste and Steiermarkische bank d.d. in the amount of 59,356,156.60 € and the budget funds in the amount of 56,480.00 €.
Payment of the guarantees was done according to Article 43 of the Budget Law19 which stipulates that the Government has an unlimited power to pay the interests and principals of the state debt and the guarantees issued by the state from the funds that are accounted for in the Consolidated Treasury Account respecting the terms and conditions contracted by the Government. It is worthwhile noting that Item 134, in the Chapter X (ten) of the Directions on State Treasury Operations is not in compliance with Article 43 of the Budget Law (current Article 60 of the Law on the Budget and Fiscal Responsibility).
It is necessary for the Ministry of Finance to harmonize its Directions on State Treasury Operations with the Law on the Budget and Fiscal Responsibility.
Repayment of arrears from the past ‐ The Budget Law for 2013 planned the expenditures for the repayment of arrears from the past in the amount of 32,177,132.00 €, while through reallocation of the funds this plan was increased by 532,491.22 €. Hence, the available funds expressed in the plan of the current budget amounted to 32,709,623.22 €. Expenditures for repayment of arrears from the past were realized in the amount of 60,543,190.10 € or 85.09% more than envisaged in the plan, as presented in the table below: Table 42 ‐ Expenditures for repayment of arrears from the past 1) Law on the Budget for 2013 32,177,132.00
2) Increased through reallocation 532,491.22 3) Reduced through reallocation ‐ 4) Available funds for spending 32,709,623.22 5) Executed 60,543,190.10 6) Executed/Planned 185.09
The realized expenditures in the amount of 60,543,190.10 € refer to the liabilities based on court decisions in the amount of 21,578,411.54 € and other liabilities in the amount of 38,964,778.56 €. Execution of other liabilities refers to the Ministry of Finance in the amount of 37,531,363.61 €. The Law on Budget for 2013 did not plan any funds for expenditures on the basis of court decisions in the spending units within whose budgets the expenditures in the amount of 21,578,411.54 € were realized. The Law on Budget for 2013 stipulated that the total payment on the basis of court decisions will be realized from the budget of the spending unit that caused the costs up to the level of available funds. Expenditures of the Ministry of Finance for the repayment of liabilities from the past in the amount of 37,531,363.61 € refer to:
19 Ibid 4, p.8
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
48
Repayment of the debt on the basis of the old foreign currency savings in the amount of 12,286,786.69 €, according to the laws and Regulation on the conversion of the foreign currency savings of citizens into bonds20. Funds in the amount of 6,729,886.54 € were paid to the end users through the account no. 907‐92101‐73 with the Central Bank of Montenegro.
Repayment of debt based on the compensation to former owners deprived of property rights in the amount of 2,076,400.77 € according to the memorandum of the Restitution Fund which established the amount of the annual instalment of the compensation and that was submitted to the Ministry of Finance.
Repayment of the debt based on the compensation to persons retired from the army in the amount of 10,464.39 €, according to the Law on Pension and Disability Insurance21 and the Decision of the Government of Montenegro no. 06‐1355/3 of 3 July 2012.
Repayment of debt based on the decisions of the Government of Montenegro in the amount of 7,769,814.40 €, as follows: Decision no. 08‐1608 of 28 June 2013 on regulating the mutual obligations between the
Ministry of Finance (Ministry of Defence) and the Municipality of Herceg Novi, i.e. public communal housing company ‐ the amount of 4,117,063.21 €.
Decision no. 3015/2 of 27 December 2013 on the settlement of debt to public health institutions ‐ the amount of 1,253,763.07 €.
Decision no. 03‐2061 of 10 March 2011 and the Memorandum of the Ministry of Culture 05‐60/2 of 17 January 2013 ‐ the amount of 257,990.54 € paid to the Telecommunication Agency Podgorica and the amount of 529,276.80€ to the Broadcasting Centre d.o.o. Podgorica.
Decision no. 08‐1588/3 of 4 July 2013 accepting the Proposal for settling the debt of the Pension and Disability Insurance Fund towards the Investment Development Fund in the amount of 532,491.22 €.
Decision no. 08‐2248 of 5 December 2013 and the Agreement on regulating mutual relations no. 07‐7262 of 13 December 2013 between the company Mlin "Muharem Asović" AD Nikšić, the Ministry of Finance, Pension and Disability Insurance Fund and Employment Agency ‐ the funds in the amount of 1.079.230,56 € were transferred for the repayment of liabilities and the amount of 9,653.50 € for the costs of the attorney to the company Cyprus Marketing Company Limited.
Repayment of debts taken over according to Article 11. Law on Budget of Montenegro for 2013 and Decisions of the Government of Montenegro (no. 08‐1930/2 of 1 August 2013, no. 08‐1930/7 of 21 November 2013) adopting the Information on taking over of the debt in the amount of 9,600,000.00 €. The debt was taken over from: Montenegro Airlines ‐ de debt to BNDES‐u (Banco Nacional De Desenvolvimento
Economico E Social Rio Se Janeiro Brazil in the amount of 3,693,103.47 € for financing the airplane Embraer E 195, on the basis of the Agreement on taking over and converting the debt into share capital no. 06‐9923 of 28 November 2013 concluded between the Government of Montenegro ‐ Ministry of Finance and Montenegro Airlines a.d. Podgorica.
Radio and Television of Montenegro in the amount of 2,396,724.05 € on the basis of the Agreement on taking over the debt no. 06‐8237 of 2 August 2013 concluded between the Government of Montenegro ‐ Ministry of Finance, Ministry of Culture and Radio and Television of Montenegro, taking over the liabilities of the RTCG towards EUROPEN Broadcasting Union in the amount of 1,100,000.00 €, tax debt in the amount of
20 OG MNE No. 42/04 and 40/08 21 OG MNE No. 79/08, 14/10,78/10 and 34/11
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
49
900,000.00 € and the debt towards Electric Utility Plant of Montenegro a.d. Nikšić in the amount of 400,000.00 €.
Repayment of claims on the basis of the fees for meal allowances and vacation allowances for 2010 in the amount of 9,188,289.84 € on the basis of the Decision of the Government of Montenegro no. 06‐756/3 of 4 April 2013.
Audit of expenditures recorded on the group of accounts 463 ‐ Repayment of Arrears from Previous Years established that the payment of expenditures is not in compliance with the Regulation on Uniform Classification of Accounts for the Budget, Extra‐budgetary Funds and Budgets of Municipalities and that the paid expenditures do not present arrears but extraordinary expenditures that were not planned in the annual budget law.
It is recommended that the expenditures for payment of arrears that were not planned in the budget are also recorded in the group of accounts 463 ‐ Repayment of Arrears from Previous Years, because in that case there is no possibility to pay the arrears from the budget lines approved for the expenditures.
7. RESERVES
Law on Budget and Rulebook on Detailed Criteria for the Use of Resources of the Current and Permanent Budget Reserve22 stipulated the use of the funds from the reserve. The Law on Budget for 2013 did not plan the funds for the budget reserve in the total amount of 7,356,069.58 €. Through reallocation of the funds the reserve budget was increased by 6,874,806.20 € and therefore the funds available for spending amount to 14,230,875.78 €, out of which 14,126,844.79 € or 99.27% were realized, as presented in the table below: Table 43 ‐ Overview of the Expenditures of the Current and Permanent Budget Reserve
Description Current budget reserve
Permanent budget reserve
Total
1) Law on the Budget for 2013 6,950,069.58 406,000.00 7,356,069.58 2) Increased through reallocation 12,440,685.98 ‐ 12,440,685.98 3) Reduced through reallocation 5,565,879.78 ‐ 5,565,879.78 4) Available funds for spending 13,824,875.78 406,000.00 14,230,875.78 5) Executed 13,720,844.79 406,000.00 14,126,844.79 6) Executed/Planned 99.25 100.00 99.27
Decisions of the Government and of the Ministry of Finance were used to reallocate funds in such a way that the planned funds were increased by 12,440,685.98 € and reduced by 5,565,879.78 €. The reduction of the reserve funds led to the overrun of the allowed limit of up to 10% of the total planned expenditures the amount of which is on a decrease, which is not in lice with Article 35 of the Budget Law.
Current budget reserve ‐ Spending of the funds of the current budget reserve was approved by the decisions of the Government, decisions of the Cabinet of the Government and decisions of the Commission for reallocation of funds of the current budget reserve. Decisions of the Government approved spending of the funds of the current budget reserve in the amount of 11,430,743.03 € for the following needs:
financing regular activities of the spending units in the amount of 9,352,521.16 €,
support to legal entities for financing their activities in the amount of 1,141,585.57 €,
support to physical persons for treatment in the amount of 310,907.50 €,
support to physical persons for the improvement of their financial situation in the amount of 2,396,010.00 €,
support to physical persons for education in the amount of 38,580.00 €, and
for other purposes in the amount of 353,988.80 €.
22 OG MNE No. 23/09
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
50
Commission for spending the funds of the current budget reserve approved the spending in the amount of 2,290,101.76 € for the following needs:
support to legal entities for financing their activities in the amount of 79,381.76 €,
support to physical persons for treatment in the amount of 46,650.00 €,
support to physical persons for the improvement of their financial situation in the amount of 2,116,200.00 €,
support to physical persons for education in the amount of 36,670.00 €, and
for other purposes in the amount of 11,200.00 €.
Spending units that used the funds from the budget reserve in the amount of 9,352,521.16 € were:
Ministry of economy ‐ the amount of 6,645,755.10 €.
Ministry of Interior ‐ the amount of 1.378.682,89 €.
Ministry of Education ‐ the amount of 516,734.44 €.
Ministry of Finance ‐ the amount of 261,438.84 €.
Parliament of Montenegro ‐ the amount of 140,907.23 €.
Government of Montenegro ‐ the amount of 87,205.00 €.
Ministry of Human and Minority Rights ‐ the amount of 75,000.00 €.
Ministry of Foreign Affairs ‐ the amount of 67,021.46 €.
Prosecution Service of Montenegro ‐ the amount of 56,776.20 €.
Ministry of Culture ‐ the amount of 123,000.00 €.
According to the above data, the Ministry of Economy and the Ministry of Human and Minority Rights overrun the allowed spending of funds from the reserves, which was contrary to Article 3 of the Rulebook on Detailed Criteria for the Use of Resources of the Current and Permanent Budget Reserve. This Article stipulates that the funds from the current budget reserves can be used for covering the lacking funds for financing regular activities of the spending units up to the amount of 5% of the funds planned in the annual law on budget of that particular spending units. We note that the overrun by using funds used from the reserve initiated by the Ministry of Economy were not intended for the budget of the Ministry but for the payment of contributions for the reduced service years for retirement and implementation of the social programme. The funds paid to legal entities for financing their business operations in the amount of 1,220,967.33 € refer to the following payments:
to the local self‐government ‐ the amount of 881,490.00 €,
to the non‐governmental, cultural and humanitarian organizations in the amount of 152,810.00 €,
to the sports organizations in the amount of 57.100,00 €,
for the needs of promotional activities ‐ the amount of 76,693.46 €.
Other expenditures ‐ the amount of 52,873.87 €. The funds in the amount of 2,782,167.50 € were paid for the financial support to physical persons (support in treatment, education and improvement of financial situation), while the amount of 365,188.80 € were paid for the financial support for other purposes. Out of this amount the amount of 182,450.00 € were paid for the compensation for damage from weather disasters according to the Report of the Commission for assessing the damage from weather disasters. According to the Decision of the Government, the amount of 2,225,755.10 € was paid from the reserves to the Pension and Disability Insurance Fund for settling the liabilities for contributions for pension and disability insurance for the reduced years of service for retirement for the employees of the Aluminium Plant which is in the process of bankruptcy. Thee funds were reported in the bankruptcy estate of the Aluminium Plant. The audit identified irregularities in the implementation of Article 3.
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
51
Permanent budget reserve – paid according to the Rulebook on Detailed Criteria for the Use of Resources of the Current and Permanent Budget Reserve that stipulates that the funds of the permanent budget reserve can be used for presidential elections, parliamentary elections and other extraordinary circumstances. Allocation of funds from the permanent budget reserve in the amount of 406,000.00 € was done according to the Law on Funding Election Campaigns for the President of Montenegro, Mayors and Presidents of municipalities23, as follows:
the amount of 40,600.00 € or 10% of the total sum of allocated funds, was paid to the candidates whose candidacy for the election of the President of Montenegro was confirmed by the State Election Commission in the elections that took place on 7 April 2013 (in the amount of 20,300.00 € each),
the amount of 162.400,00 € or 40% of the total sum of allocated funds, was paid to the candidates who won more than 10% of votes after the voting results were established (in the amount of 81,200.00€ each) and
the amount of 203,000.00 € or 50% of the overall allocated funds, was paid to the candidate who won the largest number of votes in the elections.
8. CAPITAL BUDGET According to the data from the General Ledger of the State Treasury the capital budget for 2013 was planned in the amount of 65,639,000.00 €, while reallocation of funds resulted in the increase of the budget in the amount of 6.614.815,63 €. Hence, the available funds for spending amount to 72,253,815.63 €, out of which the amount of 61,785,502.86 € or 85.51% of the available funds were realized. In the Proposal Law on the Final Statement of Accounts of the Budget for 2013, after the adjustment of the Ministry of Finance, the realized expenditures of the Capital budget amounted to 77,219,227.43 € i.e. they were by 6.87% higher than planned, as shown in the table below: Table 44 ‐ Capital Budget
Description Transport Directorate
Public Works Directorate
Total
1) Law on the Budget for 2013 30,000,000.00 35,639,000.00 65,639,000.00 2) Increased through reallocation 1,861,000.00 8,489,360.63 10,350,360.633) Reduced through reallocation 1,861,000.00 1,874,545.00 3,735,545.004) Available funds 30,000,000.00 42,253,815.63 72,253,815.63
Executed on the basis of the data from the General Ledger of the treasury
20,303,018.39
Funds transferred from the repayment of debts 15,433,724.57 5) Executed according to the Proposal Law on the Final Statement of Accounts of the Budget for 2013
35,736,742.96 41,482,484.47 77,219,227.43
6) Executed/Planned 119.12 98.17 106.87 Capital budget is realized through the Ministry of Transport and Maritime Affairs ‐ Transport Directorate and Ministry of Sustainable Development and Tourism ‐ Public Works Directorate (authorities within these ministries). 8.1 Transport Directorate ‐ Capital Budget
Audit of the Capital Budget and check of accuracy of data are based on the data given in the General Ledger of the state treasury, on the basis of which the Transport Directorate planned the funds for 2013 in the amount of 30,000,000.00 €. Decisions of the Ministry of Finance on reallocation of the funds (no. 03‐13114/1 of 31 October 2013 and no. 03‐14620/1 of 28 November 2013) were the basis for reallocation of funds by projects from the Capital Budget in the amount of 1,880,000.00 €. According to the data recorded in the General Ledger of the treasury, the reallocation of funds was
23 OG MNE No. 08/09
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
52
expressed in the amount of 1,861,000.00 € which is not in line with the adopted decisions. According to the Proposal Law on the Final Statement of Accounts of the Budget for 2013, execution of the budget amounted to 20,303,018.39 € or 67.68% of the available funds, which is 35,736,742.96 € or 19.12% more than envisaged in the plan. In the Capital budget for 2013 the Transport Directorate planned funds for the implementation of the projects that started in the previous year or years. Thee funds were planned for the projects the tender procedure of which started in 2012, and the contracts were concluded in 2013 and for the projects that were implemented in 2013 or their implementation was to continued in the years after 2013. These were:
7 (seven) project ‐ finished in 2013, out of which 4 (four) projects were not planned in the Capital budget;
14 (fourteen) projects started in the previous years and their implementation continued in 2013;
4 (four) projects started being implemented in 2013. The reasons for the implementation of the capital budget on the level of 67.68% lies mostly in the non‐implementation of the tender procedures for the projects planned in 2013 since project documentation was not finished and the expropriation of land was difficult and led to delays. The funds in the amount of 20,303,018.39 € were used to finance the following projects:
the projects that started previous years in the amount of 6,856,261.10 € or 33.77% of the realized funds and
the projects started in 2013 (the tender procedure for which started in 2012) in the amount of 13,446,757.29 € or 66.23%.
Transport Directorate financed the Capital budget in 2013 from two sources: from the general revenues of the budget in the amount of 17,571,726.67 € or 86.55% and from credit sources ensured by the European Investment Bank in the amount of 2,731,291.72 € or 13.45%. Out of the total funds spend for the implementation of the Capital Budget in the amount of 20,303,018.39 €, Transport Directorate financed the expenditures for the implementation of the four projects that were not planned in the Capital Budget for 2013 in the amount of 1,055,545.86 €: Cijevna Zatrijebač‐Albanian border, Gusinje –Grnčar, final works on the bridge in Port Milena and the bridge on the Tara river near Kolašin. The table below gives the data of the planned and realized expenditures of the capital budget according to the economic classification: Table 45‐ Overview of the expenditures of the Capital budget by economic classification
e.k. Name Law on Budget
for 2013
Reallocation Current Budget
Execution in 2013 increase + reduction ‐
41 Current Expenditures 3,160,000.00
280,000.00
2,880,000.00 1,627,398.55
412 Other personal incomes 250,000.00
210,000.00
40,000.00
15,551.10
414 Expenditures for services 1,620,000.00
70,000.00
1,550,000.00
471,857.95
419 Other expenditures 1,290,000.00
1,290,000.00 1,139,989.50
44 Capital expenditures 26,840,000.00
1,880,000.00 1,600,000.00
27,120,000.00 18,675,619.84
441 Expenditures for infrastructure
26,840,000.00
1,880,000.00 1,600,000.00
27,120,000.00 18,675,619.84
Total Expenditures
30,000,000.00
1,880,000.00 1,880,000.00
30,000,000.00 20,303,018.39
The table below gives the overview of the planned and realized expenditures of the capital budget by projects and financing sources:
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
53
Table 46‐ Overview of the Capital Budget by Projects
increase + reduction ‐ Current ExpendCapital expendit Other revenues EIB credit
761
Reconstruction of the regional and trunk roads In
Montenegro 12.900.000,00 ‐ 1.290.000,00 11.610.000,00 7.988.679,99 68,81 608.429,32 7.380.250,67 7.988.679,99
764
the highway Bar‐Boljari, the section from
Smokovac to Veruša 100.000,00 ‐ ‐ 100.000,00 88.268,12 88,27 88.268,12 ‐ 88.268,12
766 Reconstruction of crossroads 1.000.000,00 ‐ 100.000,00 900.000,00 596.919,72 66,32 9.180,00 587.739,72 596.919,72
767
elimination of black spots on the trunk and
regional roads 1.000.000,00 ‐ 100.000,00 900.000,00 not realized
771
Solution of bottlenecks in the transport network of
Montenegro 8.250.000,00 1.670.000,00 60.000,00 9.860.000,00 4.618.203,57 46,84 290.701,14 4.327.502,43 4.618.203,57
773
roads, supervision, designing, expropriation and
revisions 2.300.000,00 ‐ 230.000,00 2.070.000,00 1.976.233,46 95,47 617.468,75 1.358.764,71 1.976.233,46
774 Construction of the tunnel Tifran 1.000.000,00 ‐ 100.000,00 900.000,00 267.092,89 29,68 5.501,15 261.591,74 267.092,89
775 Construction of third lanes 1.450.000,00 210.000,00 ‐ 1.660.000,00 556.791,31 33,54 7.850,07 548.941,24 556.791,31
776
Elimination of the flood consequences in the trunk
and regional roads 2.000.000,00 ‐ ‐ 2.000.000,00 4.210.829,33 210,54 ‐ 4.210.829,33 1.479.537,61 2.731.291,72
30.000.000,00 1.880.000,00 1.880.000,00 30.000.000,00 20.303.018,39 67,68 1.627.398,55 18.675.619,84 17.571.726,67 2.731.291,72
Note
Total
Reallocation Expenditures Financing sourcesCode Name of the project Law on Budget for 2013 Current Budget Execution in 2013 of executed expenditu
The table below gives the overview of the planned and realized expenditures of the capital budget by projects and economic classification: Table 47‐ Overview of the Expenditures of the Capital Budget by Economic Classification and by projects
441
Current BudgetExecuted Current BudgetExecuted Current BudgetExecuted Current Budget Executed Current Budget Executed
761 Reconstruction of the regional and trunk roads In Montenegro 600.000,00 113.109,42 500.000,00 495.319,90 10.510.000,00 7.380.250,67 11.610.000,00 7.988.679,99
764 Expropriation 100.000,00 88.268,12 100.000,00 88.268,12
766 Reconstruction of crossroads 9.000,00 9.000,00 30.000,00 180,00 820.000,00 587.739,72 859.000,00 596.919,72
767 Rehabilitation of land slides 30.000,00 ‐ 870.000,00 ‐ 900.000,00 ‐
771 Solution of bottlenecks in the transport network of Montenegro ‐ Most Port 600.000,00 106.283,51 200.000,00 184.417,63 9.101.000,00 4.327.502,43 9.901.000,00 4.618.203,57
772 Investment ‐ resurfacing of the trunk and regional roads ‐ ‐
773 Investment maintenance of regional and trunk roads 40.000,00 15.551,10 240.000,00 234.585,80 400.000,00 367.331,85 1.390.000,00 1.358.764,71 2.070.000,00 1.976.233,46
774 Construction of the tunnel Tifran 40.000,00 5.501,15 860.000,00 261.591,74 900.000,00 267.092,89
776 Elimination of the flood consequences in the trunk and regional roads 2.000.000,00 4.210.829,33 2.000.000,00 4.210.829,33
775 Construction of third lanes 50.000,00 3.378,07 60.000,00 4.472,00 1.550.000,00 548.941,24 1.660.000,00 556.791,31
40.000,00 15.551,10 1.569.000,00 471.857,95 1.290.000,00 1.139.989,50 27.101.000,00 18.675.619,84 30.000.000,00 20.303.018,39
Other expenditures
419
Capital expendituresTotal
Total
Code Name
Other personal incomes
412
Expenditures for services
414
Project 761: Reconstruction of the regional roads and trunk roads In Montenegro
On the basis of the Decision of the Government of Montenegro no. 08‐2013/2 of 14 August 2013 the funds of the Capital Budget of the Transport Directorate ‐ the programme: Reconstruction of the regional roads and trunk roads in Montenegro; the expenditures 441 ‐ Capital Expenditures ‐ the amount of 660.000,00 € were used to pay to the Municipality of Bijelo Polje for the purchase of land for the bypass around Bijelo Polje an the regional road Slijepač bridge ‐ Pavino polje‐ Kovren. This expenditure was not planned in the Capital budget for 2013. The funds were transferred to the Municipality of Bijelo Polje to pay the arrears for solving the property issues, which is not in line with Article 11 of the Law on Budget that defined that none of the expenditures form the Consolidated account of the Treasury, may be paid if not approved in the Law on Budget.
Budget Law.
The funds from the Capital Budget were used to pay the expenditures for the services of supervision over the construction works within the Project: Gusinje‐Grnčar in the amount of 1,767.42 € that were not planned in the Law on Budget for 2013.
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
54
Project 764: Expropriation of the land for the construction of the highway Bar‐Boljari, the section from Smokovac to Veruša
The funds were transferred from the Programme 764 ‐ Expropriation of the land for the construction of the highway Bar‐Boljari, section from Smokovac to Veruša ‐ to the account of the Ministry of Finance ‐ Deposits for expropriation, for the compensation to the owners of the expropriated property in the section of the road Bar ‐ Boljare in the amount of 77,611.00€ according to the Instruction on the manner and procedure for payment of funds from the account of the Deposit for expropriation24.
Project 771: Solution of bottlenecks in the transport network of Montenegro
Financing final works on the Project: Construction of the bridge in Port Milena in the amount of 815,388.05 € and on the Project: Construction of the bridge on Tara near Kolašin in the amount of 53, 562.60 € (finalized) was not envisaged in the Capital budget for 2013.
Current expenditures for the services of supervision in the amount of 7,040.77 € (by interim stages) and for services of the technical control of the works done in the amount of 20,845.50 € for the construction works on the bridge in Port Milena, were not planned in the Capital Budget for 2013.
Current expenditures for the services of supervision over the construction works on the road between the road M‐9 Mateševo‐Kolašin and the road M‐" Podgorica‐Bijelo Polje (construction of the bridge on the river Tara near Kolašin) in the amount of 17,405.26 € were not planned in the Capital budget for 2013.
Project 773: Investment maintenance of regional and trunk road, supervision, designing, expropriation and revisions
Contract on joining the funds concluded between the Municipality of Kotor (no. 01‐4269 of 10 April 2013), Directorate for development and construction of Kotor (no. 02‐1595 of 10 April 2013), Public company Coastal Management Zone of Montenegro ‐ Budva (no. 0201‐925 of 1 August 2013) and the Ministry of Transport and Maritime Affairs (no. 023335/5 of 5 August 2013) envisages that the parties shall secure the funds as follows: Municipality of Kotor and the Directorate for development and construction of Kotor ‐ the amount of 100,000.00 €, Public company Coastal Management Zone ‐ the amount of 125,000.00 € and the Ministry of Transport and Maritime Affairs ‐ the amount of 125,000.00 € for the rehabilitation of the roads in the regional route Kotor‐Prčanj‐Stoliv. The Contract envisages that the Directorate for development and construction of Kotor is the holder of the investment activities in the rehabilitation of these roads.
According to Article 4 of the Contract, the Ministry of Transport and Maritime Affairs – Transport Directorate paid the funds in the amount of 125,000.00 € to the account of the Municipality of Kotor. Audit established that the funds in the amount of 125,000.00 € were spent for the purposes that were not envisaged in the Capital budget and it was done without any verification of the contract by the Government of Montenegro.
Ministry of Transport rendered the Decision no. 01‐5460/1 of 26 December 2013 on awarding the civil servant and the Decision no. 01‐5460/1 of 26 December 2013 on the payment of a bonus as a reward for work on drafting legislation on the basis of which the monetary consideration in the amount of three monthly salaries earned by that particular civil servant in the months preceding the decision was paid. The bonus was paid to the civil servant of the Ministry of Transport and Maritime Affairs in the net amount of 1,489.44 € from the funds that were allocated in the Capital budget, i.e. from the Program 773, the position of expenditures 412 ‐ Other Fees, which is not in line with the purposes envisaged in the Capital Budget for 2013.
24 OG MNE No. 78/06
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
55
Audit of the Capital Budget of the Transport Directorate done on the sample in the amount of 16,843,585.04 € or 82.96% of the realized expenditures, established that the funds in the item 441 ‐ Capital Expenditures were used for paying the expenditures in the amount of 1,793,486.91 €, while the funds from the item of current expenditures were used to pay the expenditures in the amount of 48,548.39 €. This was not planned in the Budget Law for 2013 and is not in compliance with Article 11 paragraph 3 of the Law on Budget that stipulates that none of the expenditures can be paid from the Consolidated account of the Treasury if not approved in the Law on Budget.
In its official letter no. 03‐2725/1 of 6 March 2014, the audited entity provided explanation stating that the Capital Budget for 2013 planned the projects that started in the previous year (or years) and the projects that will be implemented during the budget year or the year that followed. Planning of the budget funds starts in April of the previous year for the current year and the final version has to be sent to the Ministry of Finance at latest in October of the previous year. At the time of applying certain projects, the planning and project documents are frequently not completed and that often leads to the situation that the planned project is not implemented. Therefore, the funds planned for certain projects do not cover the liabilities that are incurred for the works done within that particular project. The envisaged funds are usually exceeded because, due to the poor weather conditions, the planned works are not completed in one year, so they have to be taken over to the next. These funds are compensated for from the same programme that includes the plan for the project. This can be seen on the example of construction of the road Krute‐Vladimir where the funds were planned in the amount of 2.1 mil. € and implemented in the amount of over 2.5 mil, € but the contracted value of the works was not exceeded.
8.2 Public Works Directorate ‐ Capital Budget
In 2013 the Public Works Directorate realized the funds in the amount of 41,482,484.47 €, i.e. 98.17% of the budget established in the plan. Financing the planned projects was done from the general revenues of the Budget in the amount of 36,253,189.95 € or 87.40%, from the grant of the Republic of Italy in the amount of 953,702.40 € and from the credit funds secured from the European Investment Bank and the World Bank in the amount of 4,275,592.12 €. In 2013 the Public Works Directorate implemented the activities on 124 projects, as follows:
48 projects that were started and finished in 2013 in the amount of 14,145,454.04 € or 34.10% of the realized funds;
19 projects that were started in previous years and finished in 2013 in the amount of 12,389,425.59 € or 29.87% of the realized funds;
40 projects that were started in 2013 and will continue in the future period in the amount of 4,354,787.33 € or 10.50% of the realized funds;
17 projects the implementation of which started in previous years, continued in 2013 and will continue in the period after 2013 in the amount of 10,592,817.51 € or 25.54% of the realized funds.
The table below gives the data of the planned and realized expenditures of the capital budget according to the economic classification: Table 48‐ Overview of the Expenditures of the Capital Budget by Economic Classification
E, cl,
Name Law on Budget
for 2013
ReallocationCurrent Budget
Execution in 2013 increase + reduction ‐
41 Current Expenditures 3,826,300.00 131,545.00 24,545.00 3,933,300.00 2,509,712.19
412 Other personal incomes 92,000.00 6,545.00 6,545.00 92,000.00 81,322.13
414 Expenditures for services
2,961,900.00 125,000.00 18,000.00 3,068,900.00 1,893,433.89
419 Other expenditures 772,400.00 ‐ ‐ 772,400.00 534,956.17
44 Capital expenditures 31,812,700.00 8,357,815.63 1,850,000.00 38,320,515.63 38,972,772.28
441 Expenditures for infrastructure
31,812,700.00 8,357,815.63 1,850,000.00 38,320,515.63 38,972,772.28
Total Expenditures 35,639,000.00 8,489,360.63 1,874,545.00 42,253,815.63 41,482,484.47
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
56
The table below gives the overview of the planned and realized expenditures of the capital budget by projects and financing sources:
Table 49‐ Overview of the Capital Budget by Projects
increase + reduction ‐ Current ExpendCapital expendituBudget incomes Grants World Bank credit/Lamp EIB credit
804 Construction and reconstruction of the administrative premises for the work of admin 7.111.000,00 7.014.815,63 610.945,00 13.514.870,63 14.900.139,96 110,25 631.364,03 14.268.775,93 12.705.074,84 953.702,40 1.241.362,72
805 Construction, reconstruction and adaptation of the buildings of culture 4.616.000,00 1.040.000,00 ‐ 5.656.000,00 5.472.387,78 96,75 314.799,96 5.157.587,82 5.472.387,78
806 Construction, reconstruction and adaptation of the sports buildings 7.340.000,00 600,00 700.000,00 6.640.600,00 5.013.208,26 75,49 98.448,63 4.914.759,63 5.013.208,26
807 Funds for solving housing needs of the Trade Union organizations 300.000,00 ‐ ‐ 300.000,00 300.000,00 100,00 ‐ 300.000,00 300.000,00
810 Construction of local infrastructure 6.875.000,00 128.945,00 153.000,00 6.850.945,00 6.380.347,03 93,13 467.878,63 5.912.468,40 6.380.347,03
812 Projects of environment preservation 670.000,00 221.000,00 18.200,00 872.800,00 770.509,42 88,28 289.895,35 480.614,07 770.509,42
818 Construction and reconstruction of health care buildings 2.410.000,00 1.100,00 ‐ 2.411.100,00 2.219.743,56 92,06 127.274,63 2.092.468,93 2.219.743,56
819 Construction and reconstruction of social care buildings 1.120.000,00 82.000,00 82.400,00 1.119.600,00 716.470,41 63,99 125.780,84 590.689,57 716.470,41
821 Construction and reconstruction of education buildings 4.417.000,00 900,00 310.000,00 4.107.900,00 2.517.634,64 61,29 337.139,00 2.180.495,64 2.517.634,64
822 Construction and purchase of diplomatic representative offices abroad. 300.000,00 ‐ ‐ 300.000,00 ‐ ‐ ‐ ‐ not realized
824 Urgent disaster relief and flood prevention 50.000,00 ‐ ‐ 50.000,00 3.034.229,40 6.068,46 109.673,14 2.924.556,26 3.034.229,40
825 Law on Petrovic Dynasty 430.000,00 ‐ ‐ 430.000,00 157.814,01 36,70 7.457,98 150.356,03 157.814,01
35.639.000,00 8.489.360,63 1.874.545,00 42.253.815,63 41.482.484,47 98,18 2.509.712,19 38.972.772,28 36.253.189,95 953.702,40 1.241.362,72 3.034.229,40
of executed expenditurExpenditures
Note
Total
Code Name of the project Law on Budget for 2013Reallocation
Current Budget Execution in 2013Financing sources
The table below gives the overview of the planned and realized expenditures of the capital budget by projects and economic classification: Table 50‐ Overview of the Expenditures of the Capital Budget by Economic Classification and by Projects
441
Current BudgetExecuted Current BudgetExecuted Current BudgetExecuted Current BudgetExecuted Current BudgetExecuted
804 Construction and reconstruction of the administrative premises for the work o 33,055.00 32,976.51 389,000.00 152,932.96 464,000.00 445,454.56 12,628,815.63 14,268,775.93 13,514,870.63 14,900,139.96
805 Construction, reconstruction and adaptation of the buildings of culture 6,000.00 997.20 461,900.00 312,053.34 3,100.00 1,749.42 5,185,000.00 5,157,587.82 5,656,000.00 5,472,387.78
806 Construction, reconstruction and adaptation of the sports buildings 7,600.00 7,516.78 164,800.00 88,954.80 2,200.00 1,977.05 6,466,000.00 4,914,759.63 6,640,600.00 5,013,208.26
807 Construction of housing buildings 300,000.00 300,000.00 300,000.00 300,000.00
810 Construction of local infrastructure 19,945.00 19,483.10 513,600.00 443,430.01 5,200.00 4,965.52 6,312,200.00 5,912,468.40 6,850,945.00 6,380,347.03
812 Projects of environment preservation 1,800.00 378.25 382,800.00 287,698.33 2,200.00 1,818.77 4,860,100.00 480,614.07 872,800.00 770,509.42
818 Construction and reconstruction of health care buildings 2,100.00 1,540.29 82,900.00 54,702.84 87,100.00 71,031.50 2,239,000.00 2,092,468.93 2,411,100.00 2,219,743.56
819 Construction and reconstruction of social care buildings 3,600.00 871.17 166,400.00 122,977.70 3,100.00 1,931.97 946,500.00 590,689.57 1,119,600.00 716,470.41
821 Construction and reconstruction of education buildings 10,900.00 10,898.83 839,900.00 320,770.77 202,100.00 5,469.40 3,055,000.00 2,180,495.64 4,107,900.00 2,541,634.64
822 Construction and purchase of diplomatic representative offices abroad. 3,000.00 ‐ 297,000.00 ‐ 300,000.00 ‐
824 Urgent disaster relief and flood prevention 5,000.00 4,660.00 7,800.00 105,013.14 2,200.00 ‐ 35,000.00 2,924,556.26 50,000.00 3,034,229.40
825 Law on Petrovic Dynasty 2,000.00 2,000.00 56,800.00 4,900.00 1,200.00 557.98 370,000.00 150,356.03 430,000.00 157,814.01
92,000.00 81,322.13 3,068,900.00 1,893,433.89 772,400.00 534,956.17 38,320,515.63 38,972,772.28 42,253,815.63 41,482,484.47
Total412 414 419
Total
Code Name
Other personal incomes Expenditures for services Other expenditures Capital expenditures
Program 804: Construction and reconstruction of the administrative premises for the work of administrative bodies
Ministry of Justice ‐ Institution for enforcement of criminal sanctions and "Montenegro premier" d.o.o. concluded the Agreement on the Lease of Property Owned by the State on 3 January 2008 (hereinafter referred to as: Lease Agreement) for the period of 86 years. Scope of the Lease Agreement is the property registered in the Deed of Title LN 268 Cadastral Municipality Kotor II, cadastral lot 157, of the surface of 1,216m2. On 23 January 2008 "Montenegro premijer" paid the entire amount of the lease of 1,507,000.00 € to the account of the State Treasury. However, on 17 October 1985 the Decision 853/4 declared that the property is cultural good protected by law.
On 21 February 2013 "Montenegro premijer" applied to the Ministry of Justice with the request no. 76‐2013 asking for termination of the Lease Agreement because it was impossible to use the property for the intended purpose. In its official letter no. 01‐445/2 of 27 February 2013, that the Ministry of Culture sent to the Ministry of Finance, it supported the initiative for termination of the Lease Agreement and at the same time proposed to give the property to be used by the Ministry of Culture. In its Decision no. 08‐2258/3 of 10 October 2013 the Government accepted the Proposal of the Annex to the Agreement on termination of the Agreement on the Lease of Property owned by the state. Ministry of Finance agrees that the funds in the amount of 1,407,383.73 € are paid to the account of
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
57
"Montenegro premijer" d.o.o. Podgorica. On the day of signing the Protocol "Montenegro premijer" is obliged to pay the funds in the amount of 1,407,383.73€ to the account of the State Treasury of the Ministry of Finance for taxes and contributions.
The audit established that the Ministry of Sustainable Development and Tourism ‐ Public Works Directorate transferred the funds in the amount of 1,407,383.73 € from the Program 804 ‐ Construction and reconstruction of the administrative premises for the work of administrative bodies, from the item 441 ‐ Expenditures for construction buildings. It was done according to the Decision of the Government no. 08‐2258/3 of 10 October 2013 and the signed Protocol and the money was used for the purposes that were not envisaged in the Capital Budget for 2013, which was not in compliance with Article 11 of the Budget Law.
The audit established that the Ministry of Sustainable Development and Tourism ‐ Public
Works Directorate transferred the funds in the amount of 4,387,431.90 € from the Program 804 ‐ Construction and reconstruction of the administrative premises for the work of administrative bodies, from the item 4413 ‐ Expenditures for construction buildings for the purpose of settling the liabilities for the transfer of the building and land of AD "Pobjeda" Podgorica owned by the state of Montenegro. This was done based on the decisions of the Government and was not in compliance with Article 11 of the Budget Law.
Decision of the Government no. 06‐19/3 of 28 March 2013 approved the reallocation of funds in the amount of 3,800,000.00 € from the Pension and Disability Insurance Fund (organization code 60101) ‐ Expenditure for Old Age Pension ‐ to the Ministry of Sustainable Development and Tourism ‐ Public Works Directorate ‐ Project 804 ‐ Construction and reconstruction of administrative premises for the work of the state bodies ‐ expenditures 4413 ‐ Expenditures for construction buildings, for settling the liabilities incurred due to the transfer of property in form of commercial building and land of AD "Pobjeda" Podgorica, to the ownership of the state of Montenegro. This transfer was based on the Agreement on settling the liabilities towards the State of Montenegro concluded between the Government, represented by the Minister of Finance and AD "Pobjeda" no. 01‐3324/1 of 19 March 2013.
Decision of the Government no. 06‐1181/3 of 27 May 2013 approved the additional
reallocation of funds in the amount of 587,431.90 € from the Reserves (organization code 40502) to the Ministry of Sustainable Development and Tourism ‐ Public Works Directorate (organization code 41501) ‐ Project 804 ‐ Construction and reconstruction of administrative premises for the work of the state bodies ‐ Expenditures 4413 ‐ Expenditures for construction buildings, for settling the liabilities incurred due to the transfer of property in the form of commercial building and land of AD "Pobjeda" Podgorica, to the ownership of the state of Montenegro. This transfer was based on the Agreement.
Program 805: Construction, reconstruction and adaptation of the buildings of culture
Funds in the amount of 117,000.00 € realized according to the Decision of the Government
No. 08‐2386 of 17 October 2013 and the Contract between the Public Works Directorate, Ministry of Culture, Ministry of Finance and Montenegrin National Theatre for the implementation of urgent rehabilitation works in the Montenegrin National Theatre, were not used for the purposes envisaged in the Capital Budget for 2013, which was not in compliance with Article 11 of the Budget Law.
According to the Agreement on financing the activities of the Program "Cetinje ‐ the City of Culture 2010‐2015" concluded between the Ministry of Culture (no. 02‐173 of 20 January 2013) and the Public Works Directorate (no. 19/2‐01‐214 of 31 January 2013) and the Annex II to the Agreement concluded on 22 November 2013 between the above parties, the Public Works Directorate made the payment on the basis of the invoice no. 20/12 of 20 December 2013 in the amount of 33,880.00 € from the Program 805 ‐ Construction, reconstruction and adaptation of the buildings of culture, from the item 4413‐ Expenditures for construction
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
58
buildings, to the account of the bidder, in the open procedure of public procurement for the selection of the best bid for supply and instalment of the office furniture conducted by the Ministry of Culture for the purposes of equipping a part of the former administrative building of "Obod" in Cetinje. This expenditure should have been recorded according to the Regulation on Uniform Classification of Accounts for the Budget, Extra‐budgetary Funds and Budgets of Municipalities from the item 4415 ‐ Expenditures for Equipment.
Audit of the Capital Budget of the Public Works Directorate done on the sample in the amount of 28,952,852.27 € or 69.79% of the realized expenditures, established that the funds in the item 441 ‐ Capital Expenditures were used for paying the expenditures in the amount of 5.911.815,63 €. This was not planned in the Budget Law for 2013 and is not in compliance with Article 11 paragraph 3 of the Law on Budget that stipulates that none of the expenditures can be paid from the Consolidated Account of the Treasury if not approved in the Law on Budget. The expenditure in the amount of 33,880.00 € should have been paid from the item 441‐5 Expenditures for Equipment and not from the item 441‐3 Expenditures for construction buildings according to the Regulation on Uniform Classification of Accounts for the Budget, Extra‐budgetary Funds and Budgets of Municipalities. 9. PROPERTY Law on State Property governs the use, management and disposal of things and other goods that belong to Montenegro and local self‐government. Audit of the management of state property conducted in the budget spending units included in the audit scope established the following:
Value of the recorded immovable things has not been assessed by the administration body in charge of the tasks of the cadastre or by any other body or authorized institution in the following spending units: Public Property Administration, Real‐Estate Administration, Public Institution National Museum and Tax Administration.
According to Articles 43 and 66 of the Law on State Property, the value of immovable things should be assessed by the administration body in charge of the tasks of the cadastre and other authorized body or institution.
Ministry of Science has not rendered the enactment regulating in more details the manner of use of vehicle, depending on the particular needs and specific features of the authority.
According to Article 5 of the Decree on the terms and conditions of using vehicles owned by Montenegro25, it is the heads of state authorities that are to render enactments establishing that vehicles will be used for the needs of the authority, as well as how the vehicle will be used, depending on the particular needs and specific features of that particular authority The audit of the management of the state property established deficiencies and flaws, some of which were included into the Report on the Audit of the Proposal Law on the Final Statement of Accounts of the Budget for 2012. All spending units are recommended to ensure records of the state property in line with the Law on Property and secondary legislation. 10. PUBLIC PROCURREMENT The aim of the audit of public procurement is the control of compliance with the Public Procurement Law.26 Scope of audit of public procurement included the procedures of public procurements that were conducted, as well as the Public procurement plan for 2013 and Report on the public procurement contracts awarded in 2013. 25 OG MNE No. 19/13.
26 OG MNE No. 42/11
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
59
In 2013 the Agency for Protection of Competition did not render its decision on appointing public procurement officer.
According to Article 58 of the Public Procurement Law the ordering entity has the duty to adopt a decision appointing a person to the tasks of public procurement. The ordering entity is also obliged to deliver such a decision to the competent authority.
In the spending unit Real‐Estate Administration, the Commission for opening and evaluation
of the bids in the open public procurement procedure conducted upon the Call no. 06/13 was formed 25 days after the decision on initiating the open public procurement procedure was rendered. For the open procedure conducted on the basis of the Call no. 04/13, the Commission for opening and evaluation of the bids was established 17 days after the decision on initiating the procedure was rendered.
In the spending unit Pension and Disability Insurance Fund the Commissions for opening and
evaluating the bids in the open procedures no. 03/13, no 02/13, and 04/13 and for the negotiations procedure without publishing the call for public competition upon the Call no. 01/13, were established 18 days after the decision on initiating the procedure was rendered. Decision on establishing the commission for opening and evaluating the bids no. 01‐134/2 was rendered on 5 March 2013 and the Decision on initiating the procedure was rendered on 9 July 2013. The explanation of the Pension and Disability Insurance Fund states that the mismatch in the dates of rendering the decisions on initiating the procedures of public procurement and the decisions on establishing the commissions for opening and evaluation of bids comes from the fact that the Statute of the Pension and Disability Insurance Fund stipulates that the Management Board of the Fund is in charge of rendering the decisions on initiating the public procurement procedure. Statute of the Pension and Disability Insurance Fund was amended in this respect in 2013. Thus, in 2014 the decision on initiating the public procurement procedure and the decision on establishing the commission for opening and evaluation of the bids are rendered simultaneously.
Commission for opening and evaluating the bids has to be established simultaneously with the adoption of the decision on initiating the procedure according to Article 59 paragraph 1
In the spending unit Real‐Estate Administration two procurements were done through the shopping method for one public procurement item, on the basis of the following requests: Request for bids for the shopping method procurement no. 02‐2211/2 of 3 April 2013. The item to be procured was CPV 98341000‐5 ‐ services of accommodation in the territory of the Municipality of Rožaje. Request for bids for the shopping method procurement no. 02‐2211/2 of 3 April 2013. The item to be procured was CPV 98341000‐5 ‐ services of accommodation in the territory of the Municipality of Berane. In the spending unit State Archives two procurements were done through the shopping method for one public procurement item, on the basis of the following requests: Request for bids for the shopping method procurement no. 01‐259/4 of 8 March 2013. The item to be procured was CPV 78200000‐9 ‐ services related to printing (printing of the collection of the document "First Psychiatric Hospital in the Principality of Montenegro 1899‐1914" in 300 copies). Request for bids for the shopping method procurement no. 01‐817/2 of 17 October 2013. The item to be procured was CPV 78200000‐8 ‐ services related to printing (printing of the book "Protocol of issued passports 1904‐1905" in 300 copies).
Public procurement using the shopping method can be conducted at most once a year for one item to be procured. According to Article 29 of the Public Procurement Law, the item to be procured can be defined according to technology, quantity, type, place and time of delivery.
Ministry of Finance, Tax Administration, Customs Administration, Statistical Office, Public Property Administration, Agency for Protection of Competition, Real‐Estate Administration,
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
60
Public institution National Museum, and State Archive violated the limit defined in the law for procurement of goods, services and works through direct agreements.
Total annual value of public procurement that can be done through direct agreement according to Article 30 of the Public Procurement Law, cannot exceed the limit set in the law.
In the Report filed on the Form C the Ministry for Information Society and
Telecommunications presented the procurement done with direct agreements in the amount of 89,949.22 €. Direct agreements were used for the services of translation, subscription for journal, entertainment, postal services, registration fees, advertisements and other expenses. These procurements were not included in the Public Procurement Plan for 2013 and that particular plan did not envisage procurement through direct agreement. In the Report filed on the Form C, the Public Institution National Museum presented the procurement done with direct agreements in the amount of 184,013.63 €. Direct agreements were used for the services of translation, flight tickets, catering services, accommodation services, advertising, car washing, spare parts and other expenses. These procurements were not included in the Public Procurement Plan for 2013 and that particular plan did not envisage procurement through direct agreement. In the Report filed on the Form C, the Ministry of Finance presented the procurement done with direct agreements in the amount of 128,386.01 €. Direct agreements were used for flight tickets, vehicle servicing, press clipping, copying, translation and other expenses. These procurements were not included in the Public Procurement Plan for 2013 and that particular plan did not envisage procurement through direct agreement. In the Report filed on the Form C, State Archives presented the procurement done with direct agreements in the amount of 45,232.61 €. Direct agreement was used for the services of vehicle maintenance, entertainment, copying, forwarding, software maintenance etc. These procurements were not included in the Public Procurement Plan for 2013 and that particular plan did not envisage procurement through direct agreement.
According to Article 37 of the Public Procurement Law, the ordering entity can initiate the public procurement procedure if the funds for such purposes are secured in the budget or in some other way and if such procurement is envisaged in the public procurement plan of the ordering entity.
The Customs Administration split the item to be procured in the public procurement
procedure into several parts and consequently did not conduct the required public procurement procedure. Public procurement plan of the Customs Administration for 2013 envisaged 4 procurements of hotel accommodation through direct agreement. The total amount was estimated at 18,000.00 €. In the Report filed on the Form C, the Customs Administration presented the procurement of hotel accommodation done with direct agreements in the amount of 14,606.40 €. The direct agreement was used instead of the shopping method that was required.
According to Article 44 of the Public Procurement Law, during one fiscal or financial year, the ordering entity may not split the item to be procured in order to avoid compliance with the law and required public procurement procedure.
Public Property Administration did not make minutes on the negotiations when using the procedure of negotiations without publishing the call for competition for the procurement of services of business premises lease based on the Call no. 12/13‐0201/630 of 4 April 2013 and for the procurement of the services of construction and installation works based on the Call no. 43/13 of 20 May 2013.
According to Article 25 paragraph 3 of the Public Procurement Law, the ordering entity has the duty to make minutes on the negotiations when using the procedure of negotiations without publishing the call for competition.
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
61
Montenegrin Misdemeanour Panel effected their public procurements in 2013 through direct agreements, while it planned to conduct 2 (two) open procedures, 3 (three) procedures of negotiations without publishing the call for competition, 11 (eleven) shopping methods and direct agreement procedure for the services of entertainment. In the Form C they stated the execution of the plan in the amount of 110,095.44 €.
Total annual value of public procurement that can be done through direct agreement has to be within the range of 7% to 10% of the budget executed for public procurement of the ordering entity. Ordering entity is obliged to conduct the appropriate procedure of public procurement according to the assessed value as defined in Article 30 and Article 21 of the Public Procurement Law.
On behalf of the Public Works Directorate, the Public Institution National Museum of
Montenegro conducted the following: 1. Open public procurement procedure for procurement of works upon the Call for open
public procurement no. 01‐2524 of 8 October 2013. The authorization no. 19/2‐01‐4147/1 of 20 September 2013 authorizing the PI National Museum to conduct the procedure of public procurement was adopted before the adoption of the Decision on initiating and implementing the procedure no 19/2‐01‐4391/2 of 7 October 2013.
2. Negotiation procedure without prior call for public procurement competition based on the Call for negotiation before prior call for public procurement competition no. 01‐1307 of 6 June 2013. The authorization no. 19/2‐01‐1724/1 of 7 May 2013 authorizing the PI National Museum to conduct the procedure of public procurement was adopted before the adoption of the Decision on initiating and implementing the procedure no 19/2‐01‐237/1 of 6 June 2013.
Authorization for conducting the procedure of open public procurement by other ordering entity and the decision on initiating and conducting the procedure of public procurement have to be adopted at the same time, as defined in Article 32 of the Public Procurement Law. Audit of the public procurement system identified recurring deficiencies. They are related to inadequate planning of procurement, failure to conduct the procedures in line with legislation and lack of precision in compiling tender documentation. 11. SYSTEM OF INTERNAL FINANCIAL CONTROLS System of internal financial controls consists of policies and procedures adopted by the management of the budget funds users with a view to achieving the set goals, ensuring efficiency and success in operations, as well as achieving reliability of financial reporting. Audit of the internal financial control systems within the spending units that were audited identified the following:
the spending units adopted the written rules, i.e. adopted the Book of procedures according to Articles 13 and 14 of the Law on Public Internal Financial Control,
according to Article 14 of the Law on Public Internal Financial Control27, the spending units appointed the persons in charge of establishing, conducting and developing financial management and control,
certain spending units (Misdemeanour bodies) did not establish the internal audit units as separate organizational units or they did not entrust any internal audit unit of any other budget user with the tasks of internal audit of their operations on the basis of an agreement according to Article 18 of the Law on Public Internal Financial Control,
certain spending units adopted neither Plan for establishment of financial management and control in the public sector nor methodology for implementing such plans according to Article 14 of the Law on Public Internal Financial Control,
27 OG MNE No. 73/08, 20/11 and 30/12
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
62
Audit of the internal financial control systems of the spending units that were audited established that the systems of internal financial control were not established on the satisfactory level, while the internal audit units started audits of certain processes. The activities on the establishment of the function of financial control and internal audit in the spending units should be intensified in line with the Law on Public Internal Financial Control and internal audit standards.
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
63
TABLES:
Table 1 – Adjusted deficit for 2013 ..................................................................................................................... 9 Table 2 –Central Account of the State Treasury ............................................................................................... 11 Table 3 –General Ledger of the State Treasury ................................................................................................. 12 Table 4‐ Structure of the unpaid revenues by revenue units ........................................................................... 13 Table 5‐ Deficit on the cash basis for 2013 ....................................................................................................... 13 Table 6‐ Net change in arrears .......................................................................................................................... 14 Table 7‐ Records of arrears ............................................................................................................................... 15 Table 8‐ Adjusted cash deficit ............................................................................................................................ 15 Table 9‐ Balance sheet ...................................................................................................................................... 15 Table 10‐ Budgetary Overrun ............................................................................................................................ 16 Table 11‐ Budget overrun according to economic classification ...................................................................... 17 Table 12 – Consolidated Public Spending and Adjusted Deficit for 2013 ......................................................... 19 Table 13 ‐ Increase in the Budget Spending ...................................................................................................... 19 Table 14‐Accounts open with the Central Bank of Montenegro ...................................................................... 21 Table 15‐Deposits expressed in the Proposal Law on the Final Statement of Accounts of the Budget for 2013 .......................................................................................................................................................................... 22 Table 16‐ Funds of the Ministry of Finance with the Central Bank of Montenegro.......................................... 23 Table 17 ‐ Funds in the Accounts with the Erste Bank ...................................................................................... 24 Table 18‐ Records of Funds in the General Ledger of the State Treasury ......................................................... 25 Table 19‐ Budget revenues ............................................................................................................................... 26 Table 20‐Unpaid Revenues through the Revenue module ............................................................................... 26 Table 21 – Public Revenues ............................................................................................................................... 27 Table 22 –Inflow of Funds to the Central Account of the State Treasury ......................................................... 28 Table 23 –Outflow of Funds from the Central Account of the State Treasury .................................................. 29 Table 24 ‐ Allocation of the Funds from the Central Account to the Local self‐government ............................ 29 Table 25‐ Revenues Recorded in the General Ledger of the State Treasury ..................................................... 31 Table 26‐ Inflow from Grants Expressed by Spending Units ............................................................................. 33 Table 27‐ Loans and Credits from Domestic Sources ........................................................................................ 33 Table 28‐ Loans and Credits from Foreign Sources ........................................................................................... 35 Table 29‐ Funds Withdrawn from Foreign Sources ........................................................................................... 36 Table 30 – Overview of Class 3 and 7 in the Tax Balance on 1 January 2013 .................................................... 38 Table 31 – Overview of class 3 and 7 in the tax balance on 31 December 2013 ............................................... 39 Table 32‐ Balance in the Accounts with the Central Bank (Spending Units that Collect Public Revenues) ...... 39 Table 33‐ Public Revenues Collected Through Compulsory Collection by Type of Revenue ............................ 40 Table 34‐ Deferred Tax Liabilities ..................................................................................................................... 40 Table 35 ‐ Overview of Realized Expenditures in 2013 ..................................................................................... 41 Table 36‐ Current Expenditures ........................................................................................................................ 41 Table 37 ‐ Expenditures for Interests ................................................................................................................ 42 Table 38‐ Structure of Expenditures for Interests ............................................................................................. 42 Table 39 ‐ Expenditures for Repayment of Debt ............................................................................................... 43 Table 40 ‐ Expenditures for repayment of securities and credits ..................................................................... 44 Table 41 ‐ Expenditures for Repayment of Securities and Credits to Residents ............................................... 44 Table 42 ‐ Expenditures for repayment of arrears from the past ..................................................................... 47 Table 43 ‐ Overview of the Expenditures of the Current and Permanent Budget Reserve .............................. 49 Table 44 ‐ Capital Budget .................................................................................................................................. 51 Table 45‐ Overview of the expenditures of the Capital budget by economic classification ............................. 52 Table 46‐ Overview of the Capital Budget by Projects ..................................................................................... 53 Table 47‐ Overview of the Expenditures of the Capital Budget by Economic Classification and by projects ... 53 Table 48‐ Overview of the Expenditures of the Capital Budget by Economic Classification ............................ 55 Table 49‐ Overview of the Capital Budget by Projects ..................................................................................... 56 Table 50‐ Overview of the Expenditures of the Capital Budget by Economic Classification and by Projects ... 56
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
64
APPENDIX ‐ TABLES Table 1 – Overview of arrears by spending units ................................................................................. 77 Table 2 – Deficit on cash basis .............................................................................................................. 78 Table 3 – Adjusted deficit on cash basis ............................................................................................... 67 Table 4 – Consolidated public spending ............................................................................................... 80 Table 5 – Consolidated public spending and adjusted deficit .............................................................. 81 Table 6 – Funds of public institutions and budget users that are not in the CTA system .................... 82 Table 7 – Overview of expenditures for debt repayment, interest and other expenses under foreign loans ..................................................................................................................................................... 83 Table 8 – Overview of domestic debt balance, and expenditures for principal and interest repayment by individual banks ............................................................................................................................... 85 Table 9 – Overview of expenditures under commitments from the previous period by spending units .............................................................................................................................................................. 86
Audit of the Proposed Law on the Final Statement of Accounts of the State Budget of Montenegro for 2013
65
Table 1 – Overview of arrears by spending units
Arrears as of
31/12/2012
Arrears from 2012 and
earlier, still outstanding
on 31/12/2013
Outstanding liabilities
formed in 2013 and due
until 31/12/2013
Outstanding liabilities
formed in 2013 and due
after 31/12/2013
Total outstanding
liabilities
1 PRESIDENT OF MONTENEGRO 77,046.95 2,403.80 68,938.32 11,636.55 82,978.67 74,643.15
2 PARLIAMENT OF MONTENEGRO 31,820.76 0.00 65,326.45 57,499.85 122,826.30 31,820.76
3 GOVERNMENT OF MONTENEGRO 212,199.86 0.00 18,048.52 79,899.95 97,948.47 212,199.86
4 CONSTITUTIONAL COURT 3,786.79 25.37 685.35 3,621.33 4,332.05 3,761.42
5 STATE PROTOCOL 21,887.00 0.00 4,821.40 970.84 5,792.24 21,887.00
6 MINISTRY OF FINANCE 1,827,157.18 3,570.00 2,124,237.96 477,642.41 2,605,450.37 1,823,587.18
7 PUBLIC PROCUREMENT AUTHORITY 24.05 0.00 0.00 0.00 0.00 24.05
8 MINISTRY OF EDUCATION 6,558,160.29 778,106.39 5,238,669.83 0.00 6,016,776.22 5,780,053.90
9 EXAMINATION CENTRE 1,253.64 0.00 30.86 659.09 689.95 1,253.64
10 MINISTRY OF INTERIOR 1,232,848.45 156,758.10 1,351,003.50 381,369.67 1,889,131.27 1,076,090.35
11 MINISTRY OF TRANSPORT 61,366.04 0.00 613,114.45 35,560.26 648,674.71 61,366.04
12 MINISTRY OF AGRICULTURE 2,003,844.66 243,030.78 407,689.25 17,898.43 668,618.46 1,760,813.88
13 MINISTRY OF JUSTICE 170,423.52 77,603.61 18,059.48 24,698.75 120,361.84 92,819.91
14 MISDEMEANOUR COUNCIL 0.00 0.00 0.00 0.00 0.00 0.00
15 SUPREME STATE PROSECUTOR'S OFFICE 112,163.39 0.00 110,004.19 45,392.74 155,396.93 112,163.39
16 JUDICIARY 1,631,086.43 550,339.04 1,022,994.89 98,046.00 1,671,379.93 1,080,747.39
17 MINISTRY OF ECONOMY 402,927.71 0.00 26,429.28 4,810.58 31,239.86 402,927.71
18 BOARD FOR QUALITY 279.53 0.00 0.00 0.00 0.00 279.53
19 ENERGY EFFICIENCY FUNDS 0.00 0.00 0.00 0.00 0.00 0.00
20 MINISTRY OF SUSTAINABLE DEVELOPMENT AND TOURISM 143,341.66 0.00 64,528.78 15,955.73 80,484.51 143,341.66
21 MINISTRY OF CULTURE 421,143.81 383,901.61 142,777.00 25,021.29 551,699.90 37,242.20
22 MONTENEGRIN NATIONAL THEATRE 144,671.22 3,407.39 181,183.22 6,798.42 191,389.03 141,263.83
23 ROYAL THEATRE ZETSKI DOM 12,085.62 0.00 31,219.31 8,755.68 39,974.99 12,085.62
24 MINISTRY OF LABOUR AND SOCIAL WELFARE 6,637,834.17 312,207.80 316,242.74 5,459,323.05 6,087,773.59 6,325,626.37
25 MINISTRY OF FOREIGN AFFAIRS 11,495.52 0.00 46,106.87 0.00 46,106.87 11,495.52
26 MINISTRY FOR HUMAN AND MINORITY RIGHTS 0.00 0.00 0.00 0.00 0.00 0.00
27 SECRETARIAT FOR LEGISLATION 0.00 0.00 0.00 0.00 0.00 0.00
28 MINISTRY FOR INFORMATION SOCIETY 42,346.23 0.00 57,660.73 1,228.95 58,889.68 42,346.23
29 AGENCY FOR PEACEFUL RESOLUTION OF LABOUR DISPUTES 58,604.12 0.00 0.00 1,285.46 1,285.46 58,604.12
30 STATISTICS BUREAU 2,934.96 0.00 2,027.47 5,450.97 7,478.44 2,934.96
31 MONTENEGRIN ACADEMY OF SCIENCES AND ARTS 265,479.16 461,676.28 675,376.92 4,123.42 1,141,176.62 ‐196,197.12
32 INSTITUTE OF HYDROMETEOROLOGY AND SEISMOLOGY 178,308.90 91,291.90 90,470.70 0.00 181,762.60 87,017.00
33 STATE ARCHIVE OF MONTENEGRO 17,191.60 0.00 21,641.95 8,299.33 29,941.28 17,191.60
34 BUREAU FOR EDUCATION SERVICES 3,053.61 0.00 24.00 1,425.69 1,449.69 3,053.61
35 STATE AUDIT INSTITUTION 4,150.79 0.00 168.87 2,944.02 3,112.89 4,150.79
36 PROTECTOR OF HUMAN RIGHTS 0.00 0.00 2,216.97 0.00 2,216.97 0.00
37 ADMINISTRATION FOR PREVENTION OF MONEY LAUNDERING 18,213.26 0.00 185.50 1,829.56 2,015.06 18,213.26
38 HUMAN RESOURCE MANAGEMENT AGENCY 100,939.44 7,747.24 67,378.27 731.26 75,856.77 93,192.20
39 MINISTRY OF DEFENCE 1,140,180.47 1,174,712.50 105,835.31 119,452.19 1,400,000.00 ‐34,532.03
40 NATIONAL SECURITY AGENCY 99,009.20 3,233.86 65,468.03 31,292.02 99,993.91 95,775.34
41 BUREAU FOR METROLOGY 1,589.32 0.00 0.00 349.78 349.78 1,589.32
42 INSTITUTIONS OF CULTURE 117,227.24 4,523.98 46,834.45 59,709.59 111,068.02 112,703.26
43 POLICE ACADEMY 17,164.38 0.00 0.00 7,475.72 7,475.72 17,164.38
44 COMMISSION FOR PREVENTION OF CONFLICT OF INTEREST 0.00 0.00 1,980.00 0.00 1,980.00 0.00
45 INTELLECTUAL PROPERTY OFFICE 2,144.08 0.00 244.17 404.43 648.60 2,144.08
46 AGENCY FOR PROTECTION OF COMPETITION 0.00 0.00 0.00 0.00 0.00 0.00
47 NATIONAL TOURISM ORGANISATION 356,918.02 38,766.47 353,882.84 0.00 392,649.31 318,151.55
48 DIRECTORATE FOR CONFIDENTIAL DATA PROTECTION 367.20 0.00 0.00 295.31 295.31 367.20
49 COMMISSION FOR CONTROL OF PUBLIC PROC. PROCEDURES 722.45 0.00 0.00 727.28 727.28 722.45
50 EMPLOYMENT BUREAU 1,255,349.77 27,495.56 102,774.81 438,373.09 568,643.46 1,227,854.21
51 HEALTH INSURANCE FUND 10,098,666.90 10,966.23 16,932,880.09 4,325,633.25 21,269,479.57 10,087,700.67
52 PENSION INSURANCE FUND 32,855,811.31 547,854.49 152,545.68 31,916,095.93 32,616,496.10 32,307,956.82
53 ENVIRONMENTAL PROTECTION AGENCY 129,002.86 0.00 26,069.73 0.00 26,069.73 129,002.86
54 MINISTRY OF HEALTH 0.00 0.00 12,309.50 1,719.00 14,028.50 0.00
55 COMPENSATION FUND 0.00 0.00 0.00 0.00 0.00 0.00
56 NATIONAL ELECTORAL COMMISSION 0.00 0.00 0.00 0.00 0.00 0.00
57 MINORITY FUND 2,552.19 0.00 13,620.66 459.57 14,080.23 2,552.19
58 AGENCY FOR PROTECTION OF PERSONAL DATA 10,291.51 0.00 3,835.05 642.87 4,477.92 10,291.51
59 LABOUR FUND 4,967,700.76 3,699,846.00 5,019,591.08 2,437.79 8,721,874.87 1,267,854.76
60 PROTECTOR OF PROPERTY AND LEGAL INTERESTS OF MNE 2,480.22 0.00 0.00 2,097.87 2,097.87 2,480.22
61 MINISTRY OF SCIENCE 195,000.00 0.00 13,874.96 49,341.43 63,216.39 195,000.00
62 CENTRE FOR PRESERVATION OF CULTURAL MINORITIES 0.00 0.00 0.00 590.66 590.66 0.00
63 PUBLIC HEALTH INSTITUTE 0.00 0.00 0.00 100,105.85 100,105.85 0.00
64 OFFICE FOR FIGHT AGAINST TRAFFICKING IN HUMAN BEINGS 0.00 754.70 6,334.54 2,915.82 10,005.06 ‐754.70
65 MNE AGENT BEFORE EUROPEAN COURT OF HUMAN RIGHTS 541.86 0.00 0.00 7.74 7.74 541.86
66 MONTENEGRO INVESTMENT PROMOTION AGENCY 428.53 0.00 0.00 0.00 0.00 428.53
67 MONTENEGRIN DIASPORA CENTRE 341.30 0.00 0.00 0.00 0.00 341.30
68 INSPECTION AUTHORITY 59,535.97 0.00 5,041.43 29,071.66 34,113.09 59,535.97
69 SOCIAL COUNCIL 537.37 0.00 0.00 0.00 0.00 537.37
70 SECRETARIAT FOR DEVELOPMENT PROJECTS 1,234.35 0.00 0.00 0.00 0.00 1,234.35
71 CETINJE PARLIAMENTARY FORUM 0.00 0.00 842.75 0.00 842.75 0.00
72 REGIONAL DIVING TRAINING CENTRE 0.00 0.00 0.00 0.00 0.00 0.00
73 AUDIT AUTHORITY 0.00 0.00 11.02 70.98 82.00 0.00
74 PRIVATISATION COUNCIL 0.00 0.00 3,185.24 0.00 3,185.24 0.00
TOTAL 73,724,870.15 8,580,223.10 35,636,424.34 43,872,149.10 88,088,796.54 65,144,647.05
TOTAL
Name of spending unit
Arrears from
2012 and earlier
paid in 2013
Table 2 – Deficit on cash basis
Plan Revision Plan as
Per Final
Statement
Difference Executed Adjustments (+) Adjustments (‐)Balance
as found by audit Budget overrun
2 3 4 5 = (4‐2) 6 7 8 9 = 6+7+8 10 = 9 ‐ 4
1 Cash inflows 1,161,800,821.01 0.00
1,161,800,821.01 0.00
1,243,526,719.73 0.00 0.00 1,243,526,719.73 81,725,898.72
1.1 Taxes 700,430,529.24 0.00 700,430,529.24 0.00 755,696,459.51 0.00 0.00 755,696,459.51 55,265,930.27
1.2 Social insurance contributions 384,217,730.44 0.00 384,217,730.44 0.00 398,494,284.19 0.00 0.00 398,494,284.19 14,276,553.75
1.3
Donations 0.00 0.00 0.00 0.00 6,614,007.71 0.00 0.00 6,614,007.71 6,614,007.71
1.4
Other inflows 72,343,501.32 0.00 72,343,501.32 0.00 74,088,674.11 0.00 0.00 74,088,674.11 1,745,172.79
1.5 Inflows from loan repayments 4,809,060.01 0.00 4,809,060.01 0.00 8,633,294.21 0.00 0.00 8,633,294.21 3,824,234.20
2 Cash payments 1,289,293,668.99 0.00
1,289,293,668.90 ‐0.09
1,444,789,714.35 996,466.51 0.00 1,445,786,180.86 156,492,511.96
2.1
Employee salaries and other personal income 372,128,611.75 0.00 373,750,011.16 1,621,399.41 371,004,370.17 371,004,370.17 ‐2,745,640.99
2.2 Other personal income 10,819,302.41 0.00 13,822,508.62 3,003,206.21 12,119,032.27 12,119,032.27 ‐1,703,476.35
2.3 Goods and services used 68,960,334.51 0.00 75,546,581.07 6,586,246.56 77,138,116.63 996,466.51 78,134,583.14 2,588,002.07
2.4 Current repairs and maintenance 20,466,680.05 0.00 20,847,543.31 380,863.26 20,415,784.17 20,415,784.17 ‐431,759.14
2.5 Interests 70,403,607.30 0.00 47,182,534.51 ‐23,221,072.79 67,922,775.54 67,922,775.54 20,740,241.03
2.6 Rents
7,875,739.40 0.00 8,109,421.54 233,682.14 7,928,041.81 7,928,041.81 ‐181,379.73
2.7
Subsidies 14,230,000.00 0.00 17,501,512.22 3,271,512.22 17,425,749.96 17,425,749.96 ‐75,762.26
2.8
Transfers to individuals, NGO and public sector 91,880,698.23 0.00 94,618,839.17 2,738,140.94 94,307,026.21 94,307,026.21 ‐311,812.96
2.9
Transfers for social welfare 497,872,727.10 0.00 485,569,147.94 ‐12,303,579.16 482,967,420.48 482,967,420.48 ‐2,601,727.46
2.10 Other expenditures and reserves 32,785,988.39 0.00 40,481,573.91 7,695,585.52 37,740,485.25 37,740,485.25 ‐2,741,088.66
2.11 Loans given 1,720,000.00 0.00 2,766,784.50 1,046,784.50 2,752,781.98 2,752,781.98 ‐14,002.52
2.12 Capital expenditure and securities purchased 67,972,847.85 0.00 76,387,587.73 8,414,739.88 85,294,347.28 0.00 0.00 85,294,347.28 8,906,759.55
2.9.1 Purchase of non‐financial assets 67,972,847.85 0.00 76,387,587.73 8,414,739.88 85,294,347.28 85,294,347.28 8,906,759.55
2.9.2 Purchase of financial assets 0.00 0.00 0.00
0.00 0.00 0.00
0.00
2.10 Repayment of arrears from the previous period 32,177,132.00 0.00 32,709,623.22 532,491.22 60,543,190.10 0.00 60,543,190.10 27,833,566.88
2.11 Repayment of guarantees 0.00 0.00 0.00
0.00 107,230,592.50 107,230,592.50 107,230,592.50
3 Cash deficit/surplus ‐127,492,847.98 0.00
‐127,492,847.89 0.09
‐201,262,994.62 ‐996,466.51 0.00 ‐202,259,461.13 ‐74,766,613.24
4 Cash deficit financing sources 127,492,847.98 0.00
127,492,847.89 ‐0.09
201,262,994.62 996,466.51 0.00 202,259,461.13 74,766,613.24
5, Domestic financing sources w/o deposits ‐15,800,000.00 0.00
‐15,800,000.00 0.00
65,111,692.50 0.00
0.00 65,111,692.50 80,911,692.50
5.1 Net credit facilities ‐23,800,000.00 0.00 ‐23,800,000.00 0.00 47,792,704.15 0.00 0.00 47,792,704.15 71,592,704.15
5.1.1 Debt increase under credits 0.00 0.00 0.00 0.00 115,500,000.00 115,500,000.00 115,500,000.00
5.1.2 Repayment of principal 23,800,000.00 0.00 23,800,000.00 0.00 67,707,295.85 67,707,295.85 43,907,295.85
5.2
Net borrowings under securities issue 0.00 0.00 0.00 0.00 5,370,142.00 0.00 0.00 5,370,142.00 5,370,142.00
5.2.1 Securities issue 0.00 0.00 0.00 0.00 29,850,142.00 0.00 29,850,142.00 29,850,142.00
5.2.2 Repayment of principal 0.00 0.00 0.00 0.00 24,480,000.00 0.00 24,480,000.00 24,480,000.00
5.3 Sale of assets 8,000,000.00 0.00 8,000,000.00 0.00 11,948,846.35 0.00 0.00 11,948,846.35 3,948,846.35
5.3.1
Sale of non‐financial assets 8,000,000.00 0.00 8,000,000.00 0.00 1,657,197.26 0.00 1,657,197.26 ‐6,342,802.74
5.3.2
Sale of financial assets 0.00 0.00 0.00 0.00 10,291,649.09 10,291,649.09 10,291,649.09
6. Net cash changes ‐0.01
0.00
‐0.10 ‐0.09 14,038,525.20 0.00 0.00 14,038,525.20 14,038,525.30
7. Foreign financing 143,292,847.99 0.00
143,292,847.99 0.00
122,112,776.92 996,466.51 0.00 123,109,243.43 ‐20,183,604.56
7.1 Net credit facilities 143,292,847.99 0.00 143,292,847.99 0.00 42,112,776.92 996,466.51 0.00 43,109,243.43 ‐100,183,604.56
7.1.1 Debt increase under credits 205,992,847.99 0.00 205,992,847.99 0.00 108,517,208.25 996,466.51 109,513,674.76 ‐96,479,173.23
7.1.2 Repayment of principal 62,700,000.00 0.00 62,700,000.00 0.00 66,404,431.33 66,404,431.33 3,704,431.33
7.2 Net borrowings under securities issue 0.00 0.00 0.00 0.00 80,000,000.00 0.00 0.00 80,000,000.00 80,000,000.00
7.2.1 Securities issue 0.00 0.00 0.00 0.00 80,000,000.00 80,000,000.00 80,000,000.00
7.2.2 Repayment of principal 0.00 0.00 0.00 0.00 0.00 0.00 0.00
73 Donations 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
DESCRIPTION
1
Deficit on cash basis for 2013
Final Statement for 2013
Table 3 – Adjusted deficit on cash basis
Plan Revision Executed Adjustments (+) Adjustments (‐)
2 3 4 5 6 71. Cash inflows 1,161,800,821.01 0.0 1,243,526,719.73 0.0 0.0 1,243,526,719.73
1.1 Taxes 700,430,529.24 0.0 755,696,459.51 0.0 0.0 755,696,459.51
1.2 Social insurance contributions 384,217,730.44 0.0 398,494,284.19 0.0 0.0 398,494,284.19
1.3 Donations 0.0 0.0 6,614,007.71 0.0 0.0 6,614,007.71
1.4 Other inflows 72,343,501.32 0.0 74,088,674.11 0.0 0.0 74,088,674.11
1.5 Inflows from loan repayments 4,809,060.01 0.0 8,633,294.21 0.0 0.0 8,633,294.21
2. Cash payments 1,289,293,668.99 0.0 1,444,789,714.35 996,466.51 0.0 1,445,786,180.86
2.1 Employee salaries 372,128,611.75 0.0 371,004,370.17 0.0 0.0 371,004,370.17
2.2 Other personal income 10,819,302.41 0.0 12,119,032.27 0.0 0.0 12,119,032.27
2.3 Goods and services used 68,960,334.51 0.0 77,138,116.63 996,466.51 0.0 78,134,583.14
2.4 Current repairs and maintenance 20,466,680.05 0.0 20,415,784.17 0.0 0.0 20,415,784.17
2.5 Interests 70,403,607.30 0.0 67,922,775.54 0.0 0.0 67,922,775.54
2.6 Rents 7,875,739.40 0.0 7,928,041.81 0.0 0.0 7,928,041.81
2.7 Subsidies 14,230,000.00 0.0 17,425,749.96 0.0 0.0 17,425,749.96
2.8 Transfers to individuals, NGO and public sector 91,880,698.23 0.0 94,307,026.21 0.0 0.0 94,307,026.21
2.9 Transfers for social welfare 497,872,727.10 0.0 482,967,420.48 0.0 0.0 482,967,420.48
2.10 Other expenditures and reserves 32,785,988.39 0.0 37,740,485.25 0.0 0.0 37,740,485.25
2.11 Loans given 1,720,000.00 0.0 2,752,781.98 0.0 0.0 2,752,781.98
2.12 Capital expenditure and securities purchased 67,972,847.85 0.0 85,294,347.28 0.0 0.0 85,294,347.28
2.13 Reduction of arrears ‐ repayments 32,177,132.00 0.0 60,543,190.10 0.0 0.0 60,543,190.10
2.14 Repayment of guarantees 0.0 0.0 107,230,592.50 0.0 0.0 107,230,592.50
4. Cash deficit (1‐2) ‐127,492,847.98 0.0 ‐201,262,994.62 ‐996,466.51 0.0 ‐202,259,461.13
5. Cash deficit financing sources (6+7+8+9) 127,492,847.98 0.0 201,262,994.62 996,466.51 202,259,461.13
6. Net borrowings 119,492,847.99 0.0 175,275,623.07 996,466.51 0.0 176,272,089.58
7. Sale of assets 8,000,000.00 0.0 11,948,846.35 0.0 0.0 11,948,846.35
8. Donations 0.0 0.0 0.0 0.0 0.0 0.0
9. Net cash changes ‐ 0.0 14,038,525.20 0.0 0.0 14,038,525.20
10. Net increase/decrease of liabilities (10,2‐10,1) 32,177,132.00 0.0 ‐14,363,926.41 0.0 0.0 ‐14,363,926.41
10.1 Liabilities as of 31,12,2013 0.0 0.0 88,088,796.54 0.0 0.0 88,088,796.54
10.2 Liabilities as of 31,12,2012 32,177,132.00 0.0 73,724,870.13 0.0 0.0 73,724,870.13
11. Adjusted expenditures (2, + 10,) 1,257,116,536.99 0.0 1,459,153,640.76 996,466.51 0.0 1,460,150,107.27
12. Cash inflows (1,) 1,161,800,821.01 0.0 1,243,526,719.73 0.0 0.0 1,243,526,719.73
13. Modified Cash deficit (12‐11) ‐95,315,715.98 0.0 ‐215,626,921.03 ‐996,466.51 0.0 ‐216,623,387.54
14. Deficit financing sources(15,+16,+17,+18,+19,) 95,315,715.98 0.0 215,626,921.03 996,466.51 0.0 216,623,387.54
15. Net borrowings 119,492,847.99 0.0 175,275,623.07 996,466.51 0.0 176,272,089.58
16. Sale of assets 8,000,000.00 0.0 11,948,846.35 0.0 0.0 11,948,846.35
17. Donations 0.0 0.0 0.0 0.0 0.0
18. Supplier payables ‐32,177,132.00 0.0 14,363,926.41 0.0 0.0 14,363,926.41
19. Net cash changes ‐ 0.0 14,038,525.20 0.0 0.0 14,038,525.20
Adjusted deficit on cash basis
1
DESCRIPTION Deficit on cash basis for 2013 ADJUSTMENTS OF EXECUTIONBalance
Table 4 – Consolidated public spending
Plan Revision
Plan as
Per Final
Statement
Difference Executed Adjustments (+) Adjustments (‐)Balance
as found by audit Budget overrun
2 3 4 5 = (4‐2) 6 7 8 9 = 6+7‐8 10 = 9 ‐ 4
1 Cash inflows 1,161,800,821.01 0.0 1,161,800,821.01 0.0 1,243,526,719.73 41,051,612.74 0.0 1,284,578,332.47 122,777,511.46
1.1 Taxes 700,430,529.24 0.00 700,430,529.24 0.00 755,696,459.51 7,503,045.77 0.00 763,199,505.28 62,768,976.04
1.2 Social insurance contributions 384,217,730.44 0.00 384,217,730.44 0.00 398,494,284.19 0.00 0.00 398,494,284.19 14,276,553.75
1.3 Donations 0.00 0.00 0.00 0.00 6,614,007.71 2,326,074.70 0.00 8,940,082.41 8,940,082.41
1.4 Other inflows 72,343,501.32 0.00 72,343,501.32 0.00 74,088,674.11 31,144,514.27 0.00 105,233,188.38 32,889,687.06
1.5 Inflows from loan repayments 4,809,060.01 0.00 4,809,060.01 0.00 8,633,294.21 77,978.00 0.00 8,711,272.21 3,902,212.20
2 Cash payments 1,289,293,668.99 0.0 1,289,293,668.90 ‐ 1,444,789,714.35 42,189,828.99 0.0 1,486,979,543.34 197,685,874.44
2.1 Employee salaries and other personal income 372,128,611.75 0.00 373,750,011.16 1,621,399.41 371,004,370.17 1,890,198.92 372,894,569.09 ‐855,442.07
2.2 Other personal income 10,819,302.41 0.00 13,822,508.62 3,003,206.21 12,119,032.27 2,953,173.81 15,072,206.08 1,249,697.46
2.3 Goods and services used 68,960,334.51 0.00 75,546,581.07 6,586,246.56 77,138,116.63 20,273,366.24 97,411,482.87 21,864,901.80
2.4 Current repairs and maintenance 20,466,680.05 0.00 20,847,543.31 380,863.26 20,415,784.17 1,535,947.77 21,951,731.94 1,104,188.63
2.5 Interests 70,403,607.30 0.00 47,182,534.51 ‐23,221,072.79 67,922,775.54 24,262.90 67,947,038.44 20,764,503.93
2.6 Rents 7,875,739.40 0.00 8,109,421.54 233,682.14 7,928,041.81 118,541.48 8,046,583.29 ‐62,838.25
2.7 Subsidies 14,230,000.00 0.00 17,501,512.22 3,271,512.22 17,425,749.96 0.00 17,425,749.96 ‐75,762.26
2.8 Transfers to individuals, NGO and public sector 91,880,698.23 0.00 94,618,839.17 2,738,140.94 94,307,026.21 11,418,639.97 105,725,666.18 11,106,827.01
2.9 Transfers for social welfare 497,872,727.10 0.00 485,569,147.94 ‐12,303,579.16 482,967,420.48 8,834.29 482,976,254.77 ‐2,592,893.17
2.10 Other expenditures and reserves 32,785,988.39 0.00 40,481,573.91 7,695,585.52 37,740,485.25 2,511,989.42 40,252,474.67 ‐229,099.24
2.11 Loans given 1,720,000.00 0.00 2,766,784.50 1,046,784.50 2,752,781.98 107,154.45 2,859,936.43 93,151.93
2.12 Capital expenditure and securities purchased 67,972,847.85 0.00 76,387,587.73 8,414,739.88 85,294,347.28 1,302,364.74 0.00 86,596,712.02 10,209,124.29
2.9.1 Purchase of non‐financial assets 67,972,847.85 0.00 76,387,587.73 8,414,739.88 85,294,347.28 1,302,364.74 86,596,712.02 10,209,124.29
2.9.2 Purchase of financial assets 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
2.10 Repayment of arrears from the previous period 32,177,132.00 0.00 32,709,623.22 532,491.22 60,543,190.10 45,355.00 0.00 60,588,545.10 27,878,921.88
2.11 Repayment of guarantees 0.00 0.00 0.00 0.00 107,230,592.50 0.00 107,230,592.50 107,230,592.50
3 Cash deficit/surplus ‐127,492,847.98 0.0 ‐127,492,847.89 0.0 ‐201,262,994.62 ‐1,138,216.25 0.0 ‐202,401,210.87 ‐74,908,362.98
4 Cash deficit financing sources 127,492,847.98 0.0 127,492,847.89 ‐ 201,262,994.62 1,138,216.25 0.0 202,401,210.87 74,908,362.98
5. Domestic financing sources w/o deposits ‐15,800,000.00 0.0 ‐15,800,000.00 0.0 65,111,692.50 60,198.88 0.0 65,171,891.38 80,971,891.38
5.1 Net credit facilities ‐23,800,000.00 0.00 ‐23,800,000.00 0.00 47,792,704.15 48,562.11 0.00 47,841,266.26 71,641,266.26
5.1.1 Debt increase under credits 0.00 0.00 0.00 0.00 115,500,000.00 48,562.11 115,548,562.11 115,548,562.11
5.1.2 Repayment of principal 23,800,000.00 0.00 23,800,000.00 0.00 67,707,295.85 0.00 67,707,295.85 43,907,295.85
5.2 Net borrowings under securities issue 0.00 0.00 0.00 0.00 5,370,142.00 0.00 0.00 5,370,142.00 5,370,142.00
5.2.1 Securities issue 0.00 0.00 0.00 0.00 29,850,142.00 159,858,658.00 189,708,800.00 189,708,800.00
5.2.2 Repayment of principal 0.00 0.00 0.00 0.00 24,480,000.00 159,858,658.00 184,338,658.00 184,338,658.00
5.3 Sale of assets 8,000,000.00 0.00 8,000,000.00 0.00 11,948,846.35 11,636.77 0.00 11,960,483.12 3,960,483.12
5.3.1 Sale of non‐financial assets 8,000,000.00 0.00 8,000,000.00 0.00 1,657,197.26 11,636.77 1,668,834.03 ‐6,331,165.97
5.3.2 Sale of financial assets 0.00 0.00 0.00 0.00 10,291,649.09 0.00 10,291,649.09 10,291,649.09
6. Net cash changes ‐ 0.0 ‐ ‐ 14,038,525.20 81,550.86 0.0 14,120,076.06 14,120,076.16
7. Foreign financing 143,292,847.99 0.0 143,292,847.99 0.0 122,112,776.92 996,466.51 0.0 123,109,243.43 ‐20,183,604.56
7.1 Net credit facilities 143,292,847.99 0.00 143,292,847.99 0.00 42,112,776.92 996,466.51 0.00 43,109,243.43 ‐100,183,604.56
7.1.1 Debt increase under credits 205,992,847.99 0.00 205,992,847.99 0.00 108,517,208.25 996,466.51 109,513,674.76 ‐96,479,173.23
7.1.2 Repayment of principal 62,700,000.00 0.00 62,700,000.00 0.00 66,404,431.33 0.00 66,404,431.33 3,704,431.33
7.2 Net borrowings under securities issue 0.00 0.00 0.00 0.00 80,000,000.00 0.00 0.00 80,000,000.00 80,000,000.00
7.2.1 Securities issue 0.00 0.00 0.00 0.00 80,000,000.00 0.00 80,000,000.00 80,000,000.00
7.2.2 Repayment of principal 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
7.3 Donations 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
DESCRIPTION
1
Consolidated public spending
Deficit on cash basis for 2013
Table 5 – Consolidated public spending and adjusted deficit
Plan Revision Executed Adjustments (+) Adjustments (‐)
2 3 4 5 6 71. Cash inflows 1,161,800,821.01 0.00 1,243,526,719.73 41,051,612.74 0.00 1,284,578,332.471.1 Taxes 700,430,529.24 0.00 755,696,459.51 7,503,045.77 0.00 763,199,505.28 1.2 Social insurance contributions 384,217,730.44 0.00 398,494,284.19 0.00 0.00 398,494,284.19 1.3 Donations 0.00 0.00 6,614,007.71 2,326,074.70 0.00 8,940,082.41 1.4 Other inflows 72,343,501.32 0.00 74,088,674.11 31,144,514.27 0.00 105,233,188.38 1.5 Inflows from loan repayments 4,809,060.01 0.00 8,633,294.21 77,978.00 0.00 8,711,272.21
2. Cash payments 1,289,293,668.99 0.00 1,444,789,714.35 42,189,828.99 0.00 1,486,979,543.342.1 Employee salaries 372,128,611.75 0.00 371,004,370.17 1,890,198.92 0.00 372,894,569.09 2.2 Other personal income 10,819,302.41 0.00 12,119,032.27 2,953,173.81 0.00 15,072,206.08 2.3 Goods and services used 68,960,334.51 0.00 77,138,116.63 20,273,366.24 0.00 97,411,482.87 2.4 Current repairs and maintenance 20,466,680.05 0.00 20,415,784.17 1,535,947.77 0.00 21,951,731.94 2.5 Interests 70,403,607.30 0.00 67,922,775.54 24,262.90 0.00 67,947,038.44 2.6 Rents 7,875,739.40 0.00 7,928,041.81 118,541.48 0.00 8,046,583.29 2.7 Subsidies 14,230,000.00 0.00 17,425,749.96 0.00 0.00 17,425,749.96 2.8 Transfers to individuals, NGO and public sector 91,880,698.23 0.00 94,307,026.21 11,418,639.97 0.00 105,725,666.18 2.9 Transfers for social welfare 497,872,727.10 0.00 482,967,420.48 8,834.29 0.00 482,976,254.77 2.10 Other expenditures and reserves 32,785,988.39 0.00 37,740,485.25 2,511,989.42 0.00 40,252,474.67 2.11 Loans given 1,720,000.00 0.00 2,752,781.98 107,154.45 0.0 2,859,936.43 2.1 Capital expenditure and securities purchased 67,972,847.85 0.0 85,294,347.28 1,302,364.74 0.0 86,596,712.02 2.1 Reduction of arrears ‐ repayments 32,177,132.00 0.0 60,543,190.10 45,355.0 0.0 60,588,545.10 2.1 Repayment of guarantees 0.0 0.0 107,230,592.50 0.0 0.0 107,230,592.5
4. Cash deficit (1‐ ‐127,492,847.98 0.00 ‐ ‐1,138,216.25 0.00 ‐5 Cash deficit financing sources (6+7+8+9) 127,492,847.9 0.00 201,262,994.62 1,138,216.25 202,401,210.86. Net borrowings 119,492,847.9 0.00 175,275,623.07 1,045,028.62 0.00 176,320,651.67. Sale of assets 8,000,000.0 0.00 11,948,846.35 11,636.7 0.00 11,960,483.12 8. Donation 0.00 0.00 0.00 0.00 0.00 0.00 9. Net cash ‐0.01 0.00 14,038,525.20 81,550.8 0.00 14,120,076.06 10. Net increase/decrease of liabilities (10,2‐10,1) 32,177,132.0 0.00 ‐ 0.00 0.00 ‐14,363,926.41
10. Liabilities as of 31,12,2013 0.0 0.0 88,088,796.54 0.0 0.0 88,088,796.54 10. Liabilities as of 31,12,2012 32,177,132.00 0.0 73,724,870.13 0.0 0.0 73,724,870.13
11. Adjusted expenditures (2, + 10,) 1,257,116,536.99 0.00 1,459,153,640.76 42,189,828.99 0.00 1,501,343,469.7512. Cash inflows 1,161,800,821.01 0.00 1,243,526,719.73 41,051,612.74 0.00 1,284,578,332.4713. Modified Cash deficit (12‐11) ‐ 0.00 ‐ ‐1,138,216.25 0.00 ‐14. Deficit financing sources(15,+16,+17,+18,+19,) 95,315,715.9 0.00 215,626,921.03 1,138,216.25 0.00 216,765,137.215. Net borrowings 119,492,847.9 0.00 175,275,623.07 1,045,028.62 0.00 176,320,651.616. Sale of assets 8,000,000.0 0.00 11,948,846.35 11,636.7 0.00 11,960,483.12 17. Donation 0.00 0.00 0.00 0.00 0.00 18. Supplier ‐ 0.00 14,363,926.41 0.00 0.00 14,363,926.41 19. Net cash ‐0.01 0.00 14,038,525.20 81,550.8 0.00 14,120,076.06
Consolidated public spending and adjusted deficit
1
DESCRIPTIONFINAL ADJUSTMENTS OF EXECUTION
Balance
Table 6 – Funds of public institutions and budget users that are not in the CTA system
PU withinMinistry of
Culture
PU withinMinistry ofEducation
PU withinHealth
Fund
Police Academy
ExaminationCentre
MontenegrinNationalTheatre
Zetski domRoyal Theatre
NationalTourism
Organisation
AcademyOf Scienceand Arts
Veterinaryclinics
Radio and Television Of Montenegro
PU Morsko dobro
Union of Municipalities
Total
1 Cash inflows 1,201,704.74 13,166,844.77 14,151,129.00 357,888.04 77,721.89 349,089.77 0.0 317,533.00 62,417.93 208,588.87 7,198,499.13 3,655,648.96 304,546.64 41,051,612.74 1.1 Taxes 7,198,499.13 304,546.64 7,503,045.77 1.2 Social insurance contributions 0.00
1.3 Donations 94,424.53 1,364,681.78 774,885.00 31,904.00 60,179.39 2,326,074.70 1.4 Other inflows 1,107,280.21 11,802,162.99 13,298,266.00 357,888.04 45,817.89 349,089.77 317,533.00 2,238.54 208,588.87 3,655,648.96 31,144,514.27 1.5 Inflows from loan repayments 77,978.00 77,978.00
2 Cash payments 1,218,178.88 12,502,602.20 14,743,419.00 386,673.40 62,317.87 302,930.79 2,445.81 311,367.00 296,143.93 208,588.87 7,198,499.13 3,655,648.96 304,546.64 41,193,362.48 2.1 Employee salaries and other personal income 1,873,053.00 3,328.93 13,816.99 1,890,198.92 2.2 Other personal income 90,448.26 1,828,651.00 915,907.00 61,254.43 14,153.58 30,857.00 9,664.00 2,238.54 2,953,173.81 2.3 Goods and services used 639,148.45 9,231,631.20 8,566,409.00 159,138.42 13,177.38 124,360.08 2,445.81 246,684.00 293,905.39 19,276,899.73 2.4 Current repairs and maintenance 15,943.10 921,000.00 510,419.00 18,166.63 68,105.04 2,314.00 1,535,947.77 2.5 Interests 1,384.90 22,878.00 24,262.90
2.6 Rents 5,470.48 112,680.00 391.00 118,541.48
2.7 Subsidies 0.00
2.8 Transfers to individuals, NGO and public sector 48,819.90 2,536.47 208,588.87 7,198,499.13 3,655,648.96 304,546.64 11,418,639.97 2.9 Transfers for social welfare 5,954.29 2,880.00 8,834.29 2.10 Other expenditures and reserves 178,678.37 521,320.00 1,521,432.00 142,412.93 18,633.45 79,608.67 49,904.00 2,511,989.42 2.11 Loans given 33,438.45 73,716.00 107,154.45
2.12 Capital expenditure and securities purchased 198,892.68 0.00 1,098,690.00 2,372.06 0.00 0.00 0.00 2,410.00 0.00 0.00 0.00 0.00 0.00 1,302,364.74 2.9.1 Purchase of non‐financial assets 198,892.68 1,098,690.00 2,372.06 2,410.00 1,302,364.74 2.9.2 Purchase of financial assets 0.00
2.10 Repayment of arrears from the previous period 45,355.00 45,355.00
2.11 Repayment of guarantees 0.00
3 Cash deficit/surplus ‐16,474.14 664,242.57 ‐592,290.00 ‐28,785.36 15,404.02 46,158.98 ‐2,445.81 6,166.00 ‐233,726.00 0.0 0.0 0.0 0.0 ‐141,749.74
4 Cash deficit financing sources 16,474.14 ‐664,242.57 592,290.00 28,785.36 ‐15,404.02 ‐46,158.98 2,445.81 ‐6,166.00 233,726.00 0.0 0.0 0.0 0.0 141,749.74
5. Domestic financing sources w/o deposits 13,516.88 0.0 46,682.00 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 60,198.88
5.1 Net credit facilities 4,880.11 0.00 43,682.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 48,562.11
5.1.1 Debt increase under credits 4,880.11 43,682.00 48,562.11
5.1.2 Repayment of principal 0.00
5.2 Net borrowings under securities issue 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
5.2.1 Securities issue 0.00
5.2.2 Repayment of principal 0.00
5.3 Sale of assets 8,636.77 0.00 3,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 11,636.77
5.3.1 Sale of non‐financial assets 8,636.77 3,000.00 11,636.77
5.3.2 Sale of financial assets 0.00
6. Net cash changes 2,957.26 ‐664,242.57 545,608.00 28,785.36 ‐15,404.02 ‐46,158.98 2,445.81 ‐6,166.00 233,726.00 0.0 0.0 0.0 0.0 81,550.86
7. Foreign financing 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
7.1 Net credit facilities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
7.1.1 Debt increase under credits 0.00
7.1.2 Repayment of principal 0.00
7.2 Net borrowings under securities issue 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
7.2.1 Securities issue 0.00
7.2.2 Repayment of principal 0.00
7.3 Donations 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
DESCRIPTION
Table 7 – Overview of expenditures for debt repayment, interest and other expenses under foreign loans
Creditor Credit Principal Interest Other costs Total
Steiermarkische Bank Sparkassen AG Purchase of special fire protection vehicles 2,200,170.96 526,058.61 2,726,229.57
Instituto di credito oficial ‐ Spain Construction of regional recycling centre in Livade 50,509.32 50,509.32
Societe Generale Paris Financing of Education Information System in Montenegro 5,771.12 137.46 5,908.58
Exim Bank ‐ Hungary "Ante Djedovic" Primary School Project 1,399,155.52 93,009.22 1,492,164.74
Improvement of school infrastructure in Montenegro ("LOT I","LOT II","LOT IV" and "PS in Podgorica") 1,262,413.54 79,919.61 1,342,333.15
Natixis Bank ‐ France Project ‐ Rehabilitation and expansion of power distribution network in MNE 387,904.39 75,870.74 463,775.13
KfW ‐ German Development Bank Project ‐ Rehabilitation of hydropower plant Perucica 240,387.66 67,165.80 197.02 307,750.48
Project ‐ Energy efficiency in public institutions 27,583.29 27,370.83 54,954.12
Project ‐ Water supply and wastewater disposal in the coastal region (Phase II ) 833,334.00 833,334.00
Project ‐ Water supply and wastewater disposal in the coastal region (Phase III and IV) 4,414,000.00 155,161.24 95,188.28 4,664,349.52
Credit Suisse International Loan for the budget 8,000,000.00 4,112,438.89 120,168.22 12,232,607.11
Czech Export Bank Assumed debt of MNE Railway Infrastructure for the Czech credit agreement no. 21026 1,521,688.40 107,767.66 1,629,456.06
Assumed debt of MNE Railway Infrastructure for the Czech credit agreement no. 21025 2,563,034.74 129,291.65 2,692,326.39
Assumed debt of MNE Railway Infrastructure for the Czech credit agreement no. 21027 1,037,646.66 170,768.48 1,208,415.14
Polish Credity Facility Assumed debt of MNE Railways Company 347,275.20 35,860.67 383,135.87
Int. Bank for Reconstruction and Dev. (IBRD) IBRD 70890 ME ‐ Consolidation loan 740,946.26 87,221.28 828,167.54
IBRD 70900 ME ‐ Consolidation loan E 5,661,084.32 2,337,106.23 7,998,190.55
IBRD 70910 ME ‐ Consolidation loan F 1,770,994.50 176,394.31 1,947,388.81
IBRD 76370 ME ‐ Energy efficiency loan 1,536,578.74 15,687.60 1,552,266.34
IBRD 76470 ME ‐ Loan for LAMP Project under the Agreement signed on 30.12.2008 669,981.08 17,470.45 687,451.53
IBRD 77160 ME ‐ Loan for MNE Institutional Development and Agriculture Strengthening Project (MIDAS) 19,400.22 19,400.22
IBRD 7819 ME ‐ Loan for Health System Improvement Project under the Agreement signed on 19.11.2009 25,431.20 25,431.20
IBRD 8091 ME ‐ DPL 779,611.09 779,611.09
IBRD 81180 ME ‐ Loan for Higher Education and Research for Innovation and Competitiveness Project (HERIC) 23,868.18 23,868.18
IBRD 80020 ME ‐ Loan for Environmentally Sensitive Tourist Areas Project (MESTAP) 23.12.2010 38,964.01 38,964.01
EUROFIMA Assumed liabilities as per Government Conclusion 03‐331 of 29.01.2009 for Railway Transport ‐ Contract 2654 19.05.2006 3,636,657.54 96,659.72 18,183.29 3,751,500.55
Assumed liabilities as per Government Conclusion 03‐331 od 29.01.2009 for Railway Transport ‐ Contract 2667 29.12.2006 118,454.33 18,422.99 136,877.32
Assumed liabilities as per Government Conclusion03‐331 of 29.01.2009 for Railway Transport ‐ Contract 2678 25.05.2007 65,157.81 10,283.75 75,441.56
Assumed liabilities as per Government Conclusion03‐331 of 29.01.2009 for Railway Transport ‐ Contract 2713 03.06.2008 298,496.95 40,683.48 339,180.43
Assumed liabilities as per Government Conclusion 03‐331 of 29.01.2009 for Railway Transport ‐ Contract 2598 20.10.2004 125,293.45 20,236.36 145,529.81
Assumed liabilities as per Government Conclusion 03‐331 of 29.01.2009 for Railway Transport ‐ Contract 2631 20.10.2004 84,445.23 84,445.23
ERSTE BANKA ‐ Sperkassen AG As per Government Conclusion 0.‐1615 of 11.03.2010, BG (226.916‐medical equipment) 361,233.24 28,024.21 389,257.45
As per Government Conclusion 0.‐1615 of11.03.2010, BG (226.918‐medical equipment) 186,533.34 14,471.11 201,004.45
As per Government Conclusion 0.‐1615 of 11.03.2010, BG (228.327‐medical equipment) 666,666.68 67,485.00 734,151.68
ERSTE BANK ‐ AG Loan Agreement of 26.06.2009 and Loan Agreement of 28.12.2012 13,500,000.00 2,802,262.92 16,302,262.92
Paris Club ‐ the Netherlands Debt settlement agreement signed on 13.09.2001 73,509.21 62,106.23 135,615.44
Paris Club ‐ Austria Agreement of 05.04.2007 between Government of MNE and Oesterreichische Kontrollbank AG Vienna 0.00 25,658.65 25,658.65
Paris Creditors Club ‐ euro payments Law on ratification of agreed protocol on FRY debt consolidation (OG FRY ‐ International Treaties 2/2002) 3,091,093.39 2,147,351.69 5,238,445.08
Paris Creditors Club ‐ non‐euro zone ‐ USA Law on ratification of agreed protocol on FRY debt consolidation (OG FRY ‐ International Treaties 2/2002) 802,208.18 752,376.32 1,554,584.50
Paris Club ‐ USA Debt rescheduling agreement of 03.10.2002 between FRY and USA for credit groups 03 418,213.51 418,213.51
International Financial Corporation (IFC) Loan No. 000596‐30 and 000952‐0 Consolidation debt / Igalo 1,514,291.00 26,730.89 1,541,021.89
Loan No. 24797‐00 Consolidation debt and other IFC loans 297,693.94 3,816.60 301,510.54
European Bank for Rec. and Dev. (EBRD) Agreement 34724 of 15.07.2005 between Republic of MNE and EBRD (11.5 mil) ‐ Rehabilitation of Regional Roads 926,256.92 93,397.49 1,019,654.41
Agreement 41252 of 08.12.2010 between Government‐Ministry of Finance and EBRD ‐ Infrastructure project for Danilovgrad 2,972.22 753.24 26,850.32 30,575.78
Agreement 41813 of 20.12.2010 between Government‐Ministry of Finance and EBRD for AD "Kontejnerski terminal" 1,425,514.88 55,039.66 21,514.06 1,502,068.60
Agreement 37232 of 26.10.2007 between Montenegrin Railway Company and EBRD ‐ Rehabilitation of tracks infrastructure 785,714.28 152,856.63 60.00 938,630.91
European Community (EC) Loan of 225 mil ‐ Loan Agreement of 14.09.2001 between EC and FRY (Law on FRY Borrowing from EC, OG FRY 53/01) 240,677.72 3,609.28 244,287.00
Loan of 55 mil for support to balance of payments and strengthening national FX reserves (OG FRY‐Intern. Treaties 01/2003) 198,386.00 198,386.00
Council of Europe Development Bank (CEB) Loan Agreement of 20.12.2010 between Council of Europe Development Bank (CEB) and MNE 120,534.18 120,534.18
Government Conclusion 03‐5584 of 19.07.2007 Contribution for acceding the Bank 3,277.56 3,277.56
International Development Association (IDA) Debt repayment for 10 loans 1,549,239.30 22,919.78 436,186.54 2,008,345.62
European Investment Bank (EIB) Loan No. 21386 Component B1 (Transport rehabilitation) of 13.12.2001 666,666.66 335,940.50 1,002,607.16
Loan No.21499 (Railway rehabilitation) of 19.03.2002 999,999.98 528,486.67 1,528,486.65
Loan No. 23313 ‐ Component A1 (Rehabilitation of roads and bridges) of 13.12.2005 263,644.16 199,878.68 463,522.84
Loan No. 24598 (Water and sanitation B) of 30.09.2008 64,212.20 64,212.20
Loan No.24600 (Montenegrin Railways Company II A) 72,565.30 72,565.30
Loan No. 25215 (Rehabilitation of roads and bridges A3) of 05.11.2009 329,208.18 329,208.18
Loan No. 25247 (Solid waste project) 10,979.50 10,979.50
Loan No. 25915 (Water and sanitation C) of 13.12.2010 177,650.00 177,650.00
Loan No. 31540 (Urgent flood relief and prevention project) of 10.10.2012 97,356.66 97,356.66
Loan No. 21386 Component B2 (Loan for reconstruction of main breakwater in Port of Bar) 400,000.00 194,950.00 594,950.00
Loan No. 24559 (Rehabilitation of roads and bridges) of 30.09.2008 166,120.00 166,120.00
Issuance of bonds 180.00 mil EUROBOND Fiscal Agency Agreement of 08.04.2001 13,050,000.00 13,050,000.00
Issuance of bonds 200.00 mil EUROBOND Fiscal Agency Agreement of 13.09.2010 15,750,000.00 15,750,000.00
Issuance of bonds 80.00 mil EUROBOND Mandate Letter 06‐9492/1 of 28.10.2013 476,801.00 476,801.00
Issauance of bonds 150.00 mil CITIBANK Fiscal Agency Agreement of 11.04.2012 10,711,229.16 10,711,229.16
66,404,430.80 58,207,561.43 1,312,146.14 125,924,138.37TOTAL
Table 8 – Overview of domestic debt balance, and expenditures for principal and interest repayment by individual banks
Creditor Bank Purpose Agreement no. Date of signing Contracted amount TermsDebt balance as of
31.12.2012Debt balance as of 31.12.2013
Outflows for principal in
2013
1 ERSTE BANK PODGORICA Overdraft credit ‐ improving dai ly l iquidi ty 5 27.04.2011 10.000.000,00€ 7.5% fi xed 10.000.000,00€ ‐€ 17.000.000,00€
2 ERSTE BANK PODGORICA Bui lding of Pol i ce Directorate in Podgorica LD 10050/00082 25.02.2010 6.000.000,00€ 6.5% + 6M 3.598.435,73€ 2.067.237,43€ 1.531.198,30€
3 ERSTE BANK PODGORICA Restoration of monuments of cul ture in Cetinje LD 10103/00110 14.04.2010 5.000.000,00€ 6.5% + 6M 3.308.882,31€ 2.053.747,75€ 1.255.134,56€
4 ERSTE BANK PODGORICA Assumed debt from Montenegrin Sol idary Hous ing Fund (Agreement No. 06‐3387/1) LD 10040/00086 23.02.2010 3.800.000,00€ 6.5% + 6M 2.449.538,72€ 1.407.255,87€ 1.042.282,85€
5 ERSTE BANK PODGORICA Assumed debt from Regional Water Supply System for the Coast (06‐2128/1 of 29.06.2011) LD 10196/00016 15.07.2010 7.000.000,00€ 6.5% + 6M 6.730.562,89€ 6.028.622,55€ 701.940,34€
6 ERSTE BANK PODGORICA Assumed debt from Rai lway Transport Company (Agreement No. 06‐2130/1 of 29.06.2011 for 8,500,000.00€) LD 10117/00002 30.04.2010 7.000.000,00€ 6.5% + 6M 4.350.606,02€ 2.570.208,15€ 1.780.397,87€
7 ERSTE BANK PODGORICA Assumed debt from Rai lway Transport Company (Agreement No. 06‐8657 of 05.09.2013) LD 11286/00096 13.12.2011 3.500.000,00€ 6.25% + 3M 3.006.225,30€ 249.694,69€
8 ERSTE BANK PODGORICA Long‐term loan agreement 5100260506 16.09.2013 16.000.000,00€ 5.95% + 6M 16.000.000,00€
9 ERSTE BANK PODGORICA Long‐term loan agreement 5100281743 20.12.2013 15.000.000,00€ 6M EURIBOR 15.000.000,00€
TOTAL ERSTE BANK 73.300.000,00€ 30.438.025,67€ 48.133.297,05€ 23.560.648,61€
10 SOCIETE GENERALE BANK Revolving 2000288.8/4 24.06.2013 12.000.000,00€ 7.5% fi xed 3.000.000,00€ ‐€ 12.000.000,00€
11 SOCIETE GENERALE BANK Long‐term loan for budget financing 3300002.4 27.12.2012 10.000.000,00€ 3M EURIBOR 10.000.000,00€ 8.000.000,00€ 2.000.000,00€
12 SOCIETE GENERALE BANK Leasing agreement 121/2013 19.02.2013 1.896.136,00€ 7% p.a . 1.622.559,43€ 273.576,57€
13 SOCIETE GENERALE BANK Long‐term loan agreement 6400001.4 19.12.2013 5.000.000,00€ 6M EURIBOR 5.000.000,00€
TOTAL SOCIETE GENERALE BANK 28.896.136,00€ 13.000.000,00€ 14.622.559,43€ 14.273.576,57€
14 CRNOGORSKA KOMERCIJALNA BANK AD PODGORICA Long‐term loan agreement 01‐10026 07.08.2013 42.500.000,00€ 3M EURIBOR 38.636.364,00€ 3.863.636,00€
15 CRNOGORSKA KOMERCIJALNA BANK AD PODGORICA Revolving loan 949‐88‐8 23.05.2013 15.000.000,00€ nominal 2.775.168,40€ ‐€ 14.775.168,47€
TOTAL CKB 57.500.000,00€ 2.775.168,40€ 38.636.364,00€ 18.638.804,47€
16 Hipotekarna Bank Short‐term loan/l iquidi ty 0100‐2‐408/2 19.07.2013 3.000.000,00€ 5.5% p.a. ‐€ 3.000.000,00€
TOTAL Hipotekarna Bank 3.000.000,00€ ‐€ ‐€ 3.000.000,00€
17 Hypo Alpe Adria Bank Short‐term loan/l iquidi ty AA13178DFXTC 27.06.2013 3.000.000,00€ ‐€ 3.000.000,00€
18 Hypo Alpe Adria Bank Short‐term loan/l iquidi ty AA13211JD1XQ 30.07.2013 3.000.000,00€ ‐€ 3.000.000,00€
TOTAL Hypo 6.000.000,00€ ‐€ ‐€ 6.000.000,00€
I LOANS WITH COMMERCIAL BANKS 1‐18 168.696.136,00€ 46.213.194,07€ 101.392.220,48€ 65.473.029,65€
Table 9 – Overview of expenditures under commitments from the previous period by spending units
Current budget Executed
1 10101 President of Montenegro
2 20101 Parliament of Montenegro 1.00
3 20102 National Electoral Commission
4 20103 Resources for work of parliamentary parties
5 20105 Council for civic control of work of police
6 20106 Cetinje Parliamentary Forum
7 20107 National Council for EU Integration
8 30101 Constitutional Court of Montenegro 1.00
9 30102 Judiciary 3,676,817.59 77,078.00 3,170,873.77 3,170,873.77
10 30103 Prosecutors Offices 54,348.22 1.00 52,589.17 52,589.17
11 40101 General Secretariat of Government of MNE 6,168.96 1.00 10,827.81 10,827.81
12 40103 Council for Privatization and Capital Projects 5,485.68 5,485.68
13 40105 Secretariat for Legislation 1.00
14 40108 MNE Investment Promotion Agency
15 40110 Resourcs for resolving housing needs
16 40115 Commission for control of Procurement Procedures 7,391.05 3,894.54 3,894.54
17 40116 Concessions Committee
18 40117 Official Gazette of Montenegro
19 40118 Office of MNE Agent before European Court for HR
20 40119 Council for Regulatory Reform and improvement
21 40120 Commission for distribution of funds to NGOs
22 40121 Secretariat for Development Projects
23 40201 Ministry of Justice 2,871,979.06 3.00 3,801,077.55 3,801,077.55
24 40203 Misdemeanour bodies 7,266.23 1.00 17,623.83 17,623.83
25 40204 Centre for Mediation
26 40301 Ministry of Interior 3,433,040.95 2.00 9,324,403.53 9,324,403.53
27 40302 Police Academy
28 40305 PE Regional Diving Training Centre
29 40306 Human Resource Management Authority
30 40401 Ministry of Defence 546,833.67 2,000,000.00 2,565,158.55 1,131,743.60 1,433,414.95
31 40402 Directorate for protection of confidential data 1.00
32 40501 Ministry of Finance 24,066,676.29 30,632,492.22 39,346,196.53 1,814,832.92 37,531,363.61
33 40502 Reserve
34 40507 Administration for Money Laundering Prevention
35 40509 Public Procurement Administration
36 40510 Statistics Bureau
37 40511 Commission for Distrib. of Proceeds from Games of Chance
38 40512 Commission for control of state aid and assistance
39 40115 Protector of property and legal interests of MNE 1.00
40 40601 Ministry of Foreign Affairs and EU Integration 1.00
41 40603 Montenegrin Diaspora Centre
42 40701 Ministry of Education and Sports 86,910.13 1.00 249,981.80 249,981.80
43 40702 University of Montenegro 1.00
44 40703 Bureau for International Cooperation
45 40704 Bureau for Education Services
46 40705 Examination Centre
47 40706 Administration for the Youth and Sports
48 40801 Ministry of Culture 4,750.30 1.00 5,592.33 5,592.33
49 40802 State Archives 6,013.18 2.00 9,121.04 9,121.04
50 40803 Montenegrin National Theatre
Expenditure based
on court decisions
Other expenditure
recorded as arreas from
past period
Eco code Audited entity
Repayment of arrears from past period
Executed in 2012
2013
51 40804 Royal Theatre "Zetski Dom" 1.00
52 40805 National Library of Montenegro 1.00
53 40808 Natural History Museum 1.00
54 40809 Montenegrin Cinematheque 1.00
55 40810 Musical Centre of Montenegro 1.00
56 40811 Library for the Blind 1.00
57 40813 National Museum of MNE 1.00
58 40814 Nautical Museum of MNE 1.00
59 40816 Centre for Modern Arts 1.00
60 40818 Centre for Conservation and Archaeology 1.00
61 40901 Ministry of Economy 10,840.60 1.00 398.22 398.22
62 40904 Bureau for Metrology
63 40907 Board for Quality
64 40908 Energy Efficiency Fund
65 40910 Intellectual Property Institute
66 40911 Agency for Protection of Competition
67 41001 Ministry of Transport and Maritime Affairs 130,203.16 1.00 464,421.35 464,421.35
68 41101 Ministry of Agriculture and Rural Development 351,384.15 1.00 637,752.64 637,752.64
69 41301 Ministry of Health 10,164.81 1.00 5,518.85 5,518.85
70 41305 Health System Improvement Project
71 41401 Ministry for Human and Minority Rights 2.00
72 41402 Fund for Protection and Exercise of Minority Rights 1.00
73 41405 Centre for Development and Preservation of Minority Cultures 1.00
74 41501 Ministry of Sustainable Development and Tourism 143,775.27 1.00 24,539.93 24,539.93
75 41504 Environmental Protection Agency
76 41509 National Tourism Organization
77 41510 Institute of Hydrometeorology and Seismology 465.63 1.00 19,498.94 19,498.94
78 41601 Ministry of Labour and Social Welfare 22,920.67 1.00 21,747.14 21,747.14
79 41603 Social Council
80 41701 Ministry for Information Society 15,722.57 1.00 163.08 163.08
81 41901 Ministry of Science 1.00
82 50101 Commission for prevention of conflict of interest 370.00 1.00
83 50201 Protector of human rights and freedom 1.00
84 50301 State Audit Institution 1.00
85 50401 Montenegrin Academy of Science and Arts 1.00
86 50601 Subsidies to municipalities
87 50701 Veterans' Association
88 50801 Matica Crnogorska
89 50901 National Security Agency 1.00
90 51001 Agency for Protection of Personal Data and Freedom 1.00 360.00 360.00
91 51101 Red Cross of Montenegro
92 51201 Montenegrin Olympic Committee
93 51301 Agency for Peaceful Resolution of Labour Disputes
94 51401 Senate of the Old Royal Capital
95 51501 Petrovic Njegos Foundation
96 51601 Audit Authority 1.00
97 51701 Inspection Authority
98 60101 pension and Disability Insurance Fund 41,802.08 1.00 21,743.46 21,743.46
99 60102 Health Insurance Fund 1,609.74 1.00 247,959.32 247,959.32
100 60103 Employment Bureau 240,633.21 1.00 536,261.04 536,261.04
101 60105 Compensation Fund
102 60106 labour Fund 1.00
103 41001 Ministry of Transport and Maritime Affairs
104 41501 Ministry of Sustainable Development and Tourism
Total 35,738,087.52 32,709,623.22 60,543,190.10 21,578,411.54 38,964,778.56