l) FINANCIAL AUDIT PLAN FOR THE YEAR 2023
In accordance with the Law on Public Sector Audit of the Republic of Srpska (Articles 3 and 16), based on the proposal of the head of the Financial Audit Sector, and based on the estimated risk of materially significant errors and non-compliance, as well as the frequency of audits, the Supreme Audit Office of the Republika Srpska public sector will conduct financial audits during 2023, i.e. audit of financial statements and compliance audit for 2022, of the following audit subjects (86):
1. Consolidated annual financial report for budget users of the Republic of Srpska (1),
2. Ministries and other beneficiaries of the budget of the Republic of Srpska (32)
3. Compulsory social insurance funds of the Republic of Srpska (4),
4. Local self-government units in the Republic of Srpska (21),
5. Public companies and public institutions in the Republic of Srpska (28).
In the period from 01.01.2023. until 31.07.2023. year (which represents the first part of the financial audit cycle), the audit of the financial statements and compliance audit of the following audit entities will be carried out (54):
| Number | Name of the subject of audit |
| 1. | Office of the President |
| 2. | National Assembly |
| 3. | Council of Peoples |
| 4. | General Secretariat of the Government |
| 5. | Ministry of Finance |
| 6. | Ministry of Interior |
| 7. | Ministry of Education and Culture |
| 8. | Ministry of Justice |
| 9. | Ministry of Family, Youth, and Sports |
| 10. | Ministry of Administration and Local Self-Government |
| 11. | Ministry of Scientific and Technological Development, Higher Education and Information Society |
| 12. | Ministry of Health and Social Welfare |
| 13. | Ministry of Energy and Mining |
| 14. | Ministry of Agriculture, Forestry and Water Management |
| 15. | Ministry of Transport and Communications |
| 16. | Ministry of Trade and Tourism |
| 17. | Ministry of Spatial Planning, Construction and Ecology |
| 18. | Ministry of Labor, War Veterans and Disabled Persons’ Protection |
| 19. | Ministry for European Integration and International Cooperation |
| 20. | Ministry of Economy and Entrepreneurship |
| 21. | Secretariat for Refugees and Migrations |
| 22. | Tax Administration |
| 23. | Administration for geodetic and property-legal affairs |
| 24. | Agency for Agrarian Payments |
| 25. | Fund for pension and disability insurance |
| 26. | Health Insurance Fund |
| 27. | Children’s Protection Fund |
| 28. | Employment Office |
| 29. | Consolidated annual financial report for budget users of the Republic of Srpska |
| 30. | Faculty of Law, University of Banja Luka |
| 31. | Foča Faculty of Medicine, University of East Sarajevo |
| 32. | Faculty of Philosophy, University of East Sarajevo |
| 33. | Faculty of Mechanical Engineering, University of Banja Luka |
| 34. | Faculty of Agriculture, University of Banja Luka |
| 35. | Faculty of Electrical Engineering, University of Banja Luka |
| 36. | Faculty of Technology, University of Banja Luka |
| 37. | Faculty of Economics, University of East Sarajevo |
| 38. | Health Center Pale |
| 39. | Health Center Sokolac |
| 40. | Health Center Srebrenica |
| 41. | Health Center Šekovići |
| 42. | Health Center Kalinovik |
| 43. | Municipality of Bileća |
| 44. | Municipality of Gacko |
| 45. | Municipality of Višegrad |
| 46. | Municipality of Modriča |
| 47. | Municipality of Prnjavor |
| 48. | Municipality of Srebrenica |
| 49. | Municipality of Teslić |
| 50. | Municipality of Foča |
| 51. | Public health institution Hospital Nevesinje |
| 52. | Public health institution Hospital Zvornik |
| 53. | Public health institution Hospital Gradiška |
| 54. | JSC Lottery of the Republic of Srpska |
In the second part of the financial audit cycle in the period from August 1, 2023. until 31.12.2023. the audit of the financial statements and compliance audit of the following audit entities will be conducted (32):
| Number | Name of the subject of audit |
| 1. | City of Zvornik |
| 2. | Municipality of Bratunac |
| 3. | Municipality of East Mostar |
| 4. | Municipality of Kotor Varoš |
| 5. | Municipality of Lopare |
| 6. | Municipality of Novo Goražde |
| 7. | Municipality of Osmaci |
| 8. | Municipality of Pelagićevo |
| 9. | Municipality of Petrovo |
| 10. | Municipality of Han Pijesak |
| 11. | Municipality of Čajniče |
| 12. | Municipality of Čelinac |
| 13. | Municipality of Šamac |
| 14. | Health Center Nevesinje |
| 15. | Health Center Rudo |
| 16. | Health Center Trnovo |
| 17. | Health Center Berkovići |
| 18. | Health Center Vlasenica |
| 19. | Health Center Han Pijesak |
| 20. | Health Center Ljubinje |
| 21. | Health Center Milići |
| 22. | Health Center Gacko |
| 23. | Health Center Istočni Stari Grad |
| 24. | Public institution Home for the elderly Prijedor |
| 25. | Center for Prof. rehabilitation and employment of disabled Banja Luka |
| 26. | Gerontological Center Banja Luka |
| 27. | LLC City Cemetery Bijeljina |
| 28. | JSC City Cemetery Banja Luka |
| 29. | JSC Progres Doboj |
| 30. | Public Communal services Sokolac |
| 31. | JSC Communal services Prijedor |
| 32. | JSC Communal services Trebinje |
In addition to the aforementioned audit activities in 2023, the Supreme Audit Office will also conduct audit activities to check the status of recommendations given in previous periods, guided by the criteria of the oldest audited period and the availability of resources.
In accordance with the available human resources (42 financial audit auditors) in both the first and second cycle of financial audits, the management of the Supreme Audit Office will form teams to conduct audits.
The general focus of the audit in all planned entities of the public sector will be on the implementation of the recommendations given in previous reports, the alignment of planning and spending of budget and other public funds – execution of the budget (financial plan), and on the accuracy and fair presentation of total assets and liabilities and business results, in accordance with the requirements of the financial reporting framework. Additional audit focuses and business compliance will be specified for each individual audit of a public sector entity, and defined by team leaders with the agreement of the Supreme Audit Office management.
The specific goals and sub-goals of individual financial audits will be defined by the team leaders, in accordance with the results of the preliminary tests, the assessment of the internal control system of the audited subject, the amount of total assessed risk, the level of quantitative and qualitative materiality elements.
ll) PLAN OF PERFORMANCE AUDIT ACTIVITIES IN 2023
Performance audit activities are planned in accordance with the established strategic directions and priorities of performance audit, and based on the Law on Public Sector Audit of the Republic of Srpska and INTOSAI professional publications.
The Supreme Audit Office of the Republic of Srpska public sector determines the areas and topics of the performance audit based on the criteria from INTOSAI professional publications. The criteria for selecting performance audit topics are: special interest and importance for society and citizens, significant involvement of human, material and financial resources, pronounced risks of uneconomical, ineffectiveness and inefficiency, space and need for improvements and improvements in the success of programs, processes and activities in the public sector . In this way, it is possible for the audit to provide qualitative new value for the community, public sector and citizens.
The Supreme Audit Office of the Republika Srpska public sector will conduct audit engagements of processes and activities that belong to the areas of:
- Communal activities and communal services;
- Management of public institutions;
- Consumer protection;
- Peer violence;
- Gender equality.
In accordance with the established areas and capacities of the performance audit in the Supreme Audit Office in 2023, six performance audit engagements are planned:
- Municipal waste management;
- Management of tourist organizations in the Republic of Srpska;
- Management of drug stocks in health centers;
- Protection of consumer rights;
- Prevention of peer violence in the Republic of Srpska;
- The name of the topic in the field of gender equality will be determined later.
The performance audit in the area of gender equality will be carried out within the framework of the Project of parallel performance audits, which will be carried out by the Supreme Audit Office of the Republic of Srpska public sector simultaneously with the Office for the Audit of the Institutions of Bosnia and Herzegovina, the Office for the Audit of the Institutions of the Federation of Bosnia and Herzegovina, the State Audit Institution of Serbia and the State audit institution of Montenegro organized by UN Women. Parallel audits are carried out in accordance with INTOSAI professional publications and serve to fulfill the strategic goals set by the Strategic Plan of the Supreme Audit Office for the period 2021-2025. year. The performance audit topic will be determined in consultation with the organizer and other supreme audit institutions participating in the Parallel Performance Audit Project. The time dynamics of the implementation of this audit and its completion will be determined by the Parallel Audit Implementation Plan.
Performance audit audit engagements include several public sector institutions that have certain roles, jurisdictions and responsibilities in relation to established performance audit topics and cover a longer period of time, i.e. more accounting periods. Audit engagements are conducted through two phases: the pre-study phase (preliminary examination and planning of the main study) and the main study phase. The planned completion time of the planned audtis is in the period September – December 2023. The specific time of completion of each audit will be determined by the Pre-Study Memorandum with the plan of the main study as the basic planning document in the performance audit and decisions on the implementation of the main study. In addition to the aforementioned audits, the Supreme Audit Office of the Republika Srpska public sector plans to conduct four follow-up reviews of the implementation of recommendations from performance audit reports from previous years. The subsequent review of the implementation of the recommendations enables an insight into the measures and activities undertaken by the institutions competent and responsible for the implementation of the recommendations, the results of the implemented measures and activities, as well as the determination of the status of the recommendations. Decisions on conducting follow-up reviews will be made in accordance with the dynamics of conducting follow-up reviews.
