The latest report of the Institution Office in the Federation of Bosnia and Herzegovina reveals that the FBiH budget planning for 2024. Year was not based on realistic indicators. Federal auditors warn that therefore a deficit in the amount of 131.117.278 km, The fact that the principle of balancing is prescribed in Article 4 of the Budget Act in the FBiH is not respected.
According to the audit report, revenues and receipts were realized for 648.124.916 km smaller than planned, while expenditures and expenditures were smaller for 517.007.638 km. The largest differences were observed in the segment of non-tax revenues and borrowing.
“The negative financial result has largely influenced by less implemented revenues and receipts in the FBiH budget for 648,244,916 KM, which refers to less realized revenues from entrepreneurial activities and property and revenues from positive exchange rate differences in the amount of 225.383.627 km “The report is stated.
Large minus was also recorded in borrowing, where the planned receipts remained unrealized in the amount of almost half a billion KM. “Receipts from borrowing were less implemented by KM 480,919,547, which refers to the state in the amount of 86,957,052 KM, 200,000,000 KM, receipts from Homemade 7,933.001 KM and receipts from domestic borrowing (treasury records) in the amount of 186,029,494 KM. Also, receipts from financial assets were less implemented by KM 31,701,271 compared to the planned funds to the FBiH budget “they stated the federal auditors.
- • Insufficient occupancy and weak communication between budget users
- • Individual users did not appoint a financial management and control coordinator
- • Numerous budget users do not have functional internal audit units
- • irrational wear transfer to users with debts over 50,000 KM
- • SKB Mostar continues to receive funds despite a long of 122 million KM
- • Lack of uniform regulations on fees and use of resources
- • Lack of limit for officials of ministers and advisors
The FBiH government did not take measures of amendments to the budget to the purpose of its balance, although it is a legal obligation
On the expenditure side, the plan from the plan was more than 517 million KMwith a particularly prominent capital expenditure. Only in this item difference was 172.667.931 kmof which 135.959.208 KM Refers to capital transfers, a 36.708.723 KM on the purchase of fixed assets.
The report was emphasized and that the Government of FBiH did not take measures to amend the budget for the purpose of its balancing, although it is provided for in Article 37. Law on Budgets. “This has resulted in the realized deficit in the amount of 131.117,278 KM”concludes in the report.
Other irregularities: weak controls, transfers and official phones
In addition to the deficit, the report indicates a number of additional irregularities in the work of the Government and the Institutions of the FBiH.
One of the key problems relates to internal controls. “Insufficient occupancy and lack of communication and coordination may result in inadequate performance of businesses from budget users. Also, individual budget users, did not appoint financial management and control coordinator (president and two FBiH vice presidents)”The report is stated.
Similar shortcomings are also determined in terms of internal audit. Numerous budget users do not have the functional internal audit units or make functions of financial management and control development, although it is a legal obligation.
The audit also recorded irrational transfers. “Although the Commission stated the problem in their report that in certain users of funds there was an increase in debt for taxes and contributions, the Government of the FBiH, however, has declared the continuation of the transfers implementation”stands in the report. Among users who continued to get funds, although they have debts greater than 50.000 kmthere is also a University Clinical Hospital Mostar with Debt from 122 million KM.
There is particularly criticized and non-existence of single regulations on fees and resources use. The auditors state that the Government of the FBiH should be prescribed on the basis of which government members and advisors exercise the right to transportation fees, as well as regulate the issue of working hours at the FBiH level.
When it comes to official phones, the report warns that the Restrictions on the Prime Minister and Secretary of the Government, but not for ministers and their advisors. “Auditors recommend being prescribed for them to prevent irrational wear”states in the report, writes Akta.
