About us

The State audit institution is the supreme public sector audit authority in Montenegro.

The State audit institution of Montenegro was founded by the Law on the State Audit Institution in 2004 as an institutional, external, independent, professional and objective control over the budget funds use and management of state property in Montenegro.

The Constitution of Montenegro from 2007 prescribes the supreme state audit authority: “The State Audit Institution of Montenegro shall be an independent and supreme state audit authority. The State Audit Institution shall audit the legality of and performance in the management of state assets and liabilities, budgets and all the financial affairs of the entities whose sources of finance are public or created through the use of state property. The State Audit Institution shall submit an annual report to the Parliament. The Senate shall manage the State Audit Institution”.

Audited entities of the State audit institution

The State audit institution performs audit of the authorities and organizations managing the budget or state property and of the local self-government units, the funds and other legal entities being founded by the state or in which the state is a majority shareholder or holds a majority stake. The Institution also audits the entities which execute parts of the budget, manage state property, receive subsidies, grants or guarantees from the State, or do business with an audited entity or use EU funds and funds of other international organizations or institutions for financing public needs.

Mandate of the State audit institution

Mandate of the State audit institution is prescribed, in addition to the Constitution and Law, by the methodological acts for financial audit, regularity audit and performance audit aligned with the international standards of the supreme audit institutions (ISSAI).

The State audit institution is obliged to perform the audit of the Proposal law on the final state budget account of Montenegro once in a year.

The Law on financing political entities and election campaign determines the obligation for the SAI to audit the annual consolidated financial statements of the political entities based on the risk assessment and criteria from the Instruction on methodology for financial audit and regularity audit. The State audit institution is obliged in a four-year period to perform audit of the annual consolidated financial statements of all political entities which have parliamentary status at the state and local level.

According to the Law on budget and fiscal responsibility, the State audit institution performs the assessment of the application of the fiscal responsibility criteria within the annual report of the SAI which is submitted to the Parliament.

Senate of the State audit institution

The Senate manages the State audit institution. The Senate has five members, who have permanent term of the office. The Parliament appoints the President of the Senate from among the Members of the Senate for a period of nine years. Every member of the Senate is the leader of one sector. The competences of the Senate are prescribed in the Law and Rules of procedures of the SAI.

The president and members of the Senate of the State audit institution enjoy functional immunity and may not be invited to account for an opinion given or a decision made in performing their duties, except in the case of a criminal act.

Auditing Board

The Auditing Board consists of two members of the Senate, one of which is the leader of the sector conducting the audit. The Auditing Board is in charge of and supervises the auditing procedure, and is responsible for the results of the audit.

Organizational structure of the State audit institution

The State audit institution has five sectors with the departments organized within each sector and Secretariat for administrative-professional affairs and Internal audit unit. The Secretary of the Institution manages the Secretariat for administrative-professional affairs.

Types of audit

Financial audit - performs examination of the documents, transactions, internal control and internal audit systems, accounting and financial procedures and other records of the audited entities with aim to ensure whether financial statements are true, objective and prepared in compliance with accepted accounting standards.

Regularity audit - determines regularity of the financial and other activities of the audited entities with aim to evaluate compliance with applicable laws and other regulations.

Performance audit - determines performance of the level of the achievement of the set objectives of the operations or of a specific financial transaction, programs, projects, usage of human, financial and other resources of the audited entities as well as the ratio between the planned and achieved effects of the objectives and results.

Submission of the audit reports and reporting to the public

The State audit institution submits its Annual report to the Parliament of Montenegro till the end of October, which includes: Audit report of the Proposal Law on the final state budget account of Montenegro; Report on implementation of the recommendations from the Audit report of the Proposal Law on the final state budget account of Montenegro for the previous year; Excerpts from the final reports on conducted individual audits and Overview of other activities of the Institution.

The final audit reports are submitted to the audited entity and by rule to the authority in charge of supervision over the entity.

The Annual report and all final audit reports are published at the official website of the Institution www.dri.co.me.

Vision of the State audit institution

The State audit institution, as an independent supreme audit body, carries out its work under its competences in accordance with the Constitution of Montenegro, Law on the State audit institution and International standards of supreme audit institutions, contributing significantly to the increase of transparency and responsibility in managing and disposing of the public funds in a legal, economical, effective and efficient manner.

Mission of the State audit institution

The State audit institution timely and reliably informs the public, Parliament and Government on the management and disposal of public funds and public property, as well as on its own activities and usage of its own resources.

The State audit institution, by exercising its functions significantly contributes to ensuring fiscal responsibility and sustainability of public finances.

Values of the State audit institution

Independence - implies reaching the institutional, organizational and functional independence, as well as reaching full financial autonomy to fulfill the competences of the State audit institution.

Objectivity - implies independence of the State audit institution from the impact of audited entities and other external stakeholders.

Professionalism - implies following applicable auditing standards, experiences and skills and continuous obligation to update and improve the skills required for professional execution of duties.

Integrity - implies following the ethical principles, responsibility and confidence in executing tasks.