SAI findings/Serious weaknesses in financial reporting and management of public assets

2025-11-06 21:40:00, Aktualitet CNA

SAI findings/Serious weaknesses in financial reporting and management of public

The Head of the Supreme State Audit Office (SSA) presented the main findings of financial audits to Parliament today, raising concerns about the accuracy and quality of financial reporting in public institutions.

According to the head of the SAI, the audits have revealed significant problems in respecting accounting principles and standards, as well as the need to improve financial management systems and internal controls.

"The audited financial statements show a lack of consolidation between budget units, violations of deadlines in submitting reports, and the exclusion of some transactions from the presentation," he stressed, adding that misclassifications of income and expenses, as well as deficiencies in supporting documentation, were also found.

Another concern raised by the SAI is the complete failure to register public assets, especially immovable assets.

"In a significant portion of the audited institutions, the procedures for taking over and classifying public properties remain unclear, creating a risk of their alienation," said the head of the supreme audit institution.

He also emphasized that inconsistencies have been found in the presentation of unpaid liabilities and debtors, as well as inaccuracies in the calculation of late payment interest, underlining the necessity of strengthening internal controls and financial accountability in public administration.

"During financial audits, issues have been identified that have impacted the accuracy and quality of financial reporting, as well as compliance with accounting principles and standards, highlighting the need to improve financial management systems and controls within public institutions.

The audited financial statements showed a lack of consolidation between units, violations of deadlines in submitting reports, inter-annual non-reconciliations, and the exclusion of some transactions from the presentation.

Misclassifications of income and expenses, deficiencies in supporting documentation, as well as weaknesses in the implementation of internal controls to identify irregularities were found.

In a significant part of the audited institutions, problems were identified in the complete registration of assets, especially immovable assets, as well as in the preparation of property documentation. The procedures for taking over and classifying public properties continue to pose a risk of their alienation.

"Also, in the presentation of unpaid liabilities and debtors, differences between the recorded figures and the real situation have been found, as well as inaccuracies in the calculation of interest on arrears," said the head of the SAI, Arben Shehu. / CNA