SAI Report for 2025: Shortcomings in the financial management and control of public institutions

2026-06-15 14:51:00, Aktualitet CNA

SAI Report for 2025: Shortcomings in the financial management and control of

The head of the Albanian Supreme Audit Institution, Arben Shehu, has reported to the Economy Committee on the institution's activity for 2025, highlighting a series of problems in the administration of public institutions.

According to the report, during 2025, 190 audits were conducted in 271 entities, where deficiencies were found in financial management, internal control, budgeting, public procurement, and state asset administration.

The SAI has issued recommendations for legal and administrative improvements, as well as disciplinary measures for irregularities found. Also, about 70% of the recommendations from previous audits have been fully or partially implemented.

The report also highlights problems in the compilation and consolidation of state financial statements and the lack of an updated framework for financial reporting in the public sector.

"Problems, deficiencies and risks that have affected the activity of public institutions have been identified, for which recommendations have been addressed to improve the control system, increase institutional performance and strengthen accountability in the administration of public resources."

The audits were conducted in accordance with international public auditing standards. The findings aimed to identify irregularities.

During 2025, the SAI conducted 190 audits in 271 entities: 126 central government entities, 87 local government entities, 13 public property administration institutions and 45 public companies where the state owns over 50% of the shares.

These missions have included 44 compliance audits, 32 combined audits, 63 financial audits, 13 thematic audits and 13 performance audits, 10 information technology system audits, as well as 15 audits on the verification of the implementation of recommendations.

The audits conducted have provided 242 opinions, messages and conclusions, 4494 proposals for improvements to the legal framework, 441 measures to address irregularities, and 975 disciplinary and administrative measures.

During 2025, the implementation of recommendations from 125 previous audits was verified, 70% of which were partially or fully implemented.

Problems and shortcomings related to financial management and control, budget planning and implementation, revenue administration, public procurement, and state asset management have been identified.

"The consolidated annual financial statements of the state's financial transactions have not been drafted and submitted in accordance with legal requirements and public financial reporting standards. During this period, the lack of a complete and updated regulatory framework for financial reporting in the public sector continues to be evident; in a series of entities, the lack of consolidated financial statements with subordinate units has been found, shortcomings have been found in the implementation of legal deadlines, the reconciliation and completeness of financial statements and the incorrect recording of liabilities," said Shehu./ CNA