CCI: Disregard for audit recommendations must stop

Centres for Civil Initiatives (CCI) call on the Parliamentary Committee responsible for the audit of the Parliament of the Federation of BiH to use all available mechanisms at the upcoming session, scheduled for Friday, January 28, 2022, regarding the processing of audit reports, and to adopt a Report with conclusions that would oblige the audited institutions to implement audit recommendations and continuously report on achieved results. The session was scheduled after the Committee heard representatives of 41 audited institutions that received a negative opinion or a qualified opinion on financial reports and/or compliance with laws.

The hearings and further proceedings by the competent Committee and the Parliament of the FBiH relate to the audit reports on the work of institutions for 2020, the publication of which the Audit Office in FBiH began in May 2021. Auditors identified a significant number of shortcomings and non-compliance with laws in the work of public institutions and the spending of public money. Practice has shown that institutions, when serious public oversight is lacking, almost never implement all received recommendations (the overall implementation rate of audit recommendations does not exceed 40%).

The rules governing the work of public institutions should apply equally to everyone, and in case of identified irregularities, action should be taken promptly to rectify shortcomings in the shortest possible time, as these directly harm the interests of citizens due to the spending of public money. Disregard for audit recommendations should also raise questions of accountability for those managing public institutions and spending public money.

Stopping the bad practice of a low rate of implementation of audit recommendations lies with the competent Parliamentary Committee and the Parliament of the FBiH, which have certain mechanisms at their disposal to act and protect public money. They need to react in a timely manner and, if necessary, activate the sanctions available to them, i.e., do everything necessary to bring the work of public institutions back within the framework of prescribed rules and procedures.

Due to the current dynamics of the competent Committee's proceedings on audit reports, the audit reports of the 41 mentioned institutions will reach the Parliament of the FBiH 8 months after the publication of the first audit reports. Given that the budgets of institutions are being adopted during this period, it is necessary to consider the Audit Reports in the Parliament of the FBiH as soon as possible so that the audit findings and the findings of the competent Committee are aligned with the future budgets of the institutions and public spending. Therefore, starting from the announced session of the Committee, it is necessary for the Committee and the Parliament of the FBiH to adapt their actions to the current attitude of public institutions towards audit recommendations, ensure timely response, and be prepared for the new cycle of audit reports expected in May 2022.