Current reserves financed institutions, not flood consequence mitigation!

The BiH Institutions Audit Office conducted a performance audit on the topic "Distribution and use of current reserve funds," reports the Patria News Agency.

- The lack of oversight and control, as well as poor and non-existent reporting on the effects of allocated funds, have contributed to the non-transparent and non-purposeful spending of current reserve funds. The responsibility for adopting and consistently applying clear rules and procedures for the use of current reserve funds lies with the Ministry of Finance and Treasury of BiH, and the Council of Ministers of BiH - stated the BiH Institutions Audit Office.

The audit aimed to determine whether current reserve funds are used responsibly, transparently, and for their primary purpose, to identify weaknesses in the process of approving, overseeing, and reporting on the use of current reserve funds, and to show that more efficient use and better control can contribute to achieving better financial discipline, raising awareness of public accountability, and more effective use of public money.

The reasons for conducting this study are contained in the commitment of the competent BiH institutions to more efficient, effective, and transparent spending of public funds, and public warnings about the issues of distribution and use of current reserve funds.

- The lack of implementing acts, as an accidental or intentional omission by responsible institutions, has been exploited for the non-purposeful use of current reserve funds, and established practices indicate a lack of responsible and transparent spending of public money. Control activities for the distribution and use of current reserve funds are at a very low level, which has allowed current reserve funds not to be used for financing urgent and unforeseen situations. Instead of financing and mitigating the consequences of natural disasters or financing areas of public interest, the current operations of BiH institutions have been financed with current reserve funds. In addition to this, without any criteria, various citizens' associations, sports clubs, religious and humanitarian organizations, individuals, media, and lower levels of government institutions have been financially supported with public funds - added the Office.