Special Report 9/2019

Revenue audit in the Municipality of Marathon

The main objectives of the audit were to evaluate the completeness of revenues in the financial statements and the design of the existence and functioning of internal control system in relation to the revenue process.

The audit key message is that the Municipality misses revenue as consequence of the weaknesses of the internal control system, the ambiguity and complexity in the legislative and regulatory framework, the failure to set up an internal control unit and the insufficient communication and cooperation with third parties.

The audit identified substantial deficiencies in the process of determining the potential basis for calculating own revenue (revenue basis completeness) and identifying the debtors liable. Substantial deficiencies were also found in the process of collecting revenue, monitoring receivables and taking coercive measures.

Indicative recommendations: a.ensuring the completeness and correctness of the debtors' base through the updating of the Debtors' Register, b.the adoption of the early cross-checking process with a view to identifying debtors (Common Register of Natural and Legal Persons accessible to all stakeholders), c. strengthening the control mechanism for intensifying automation with a view to identifying cases of illegal operation of shops, arbitrary occupation of public spaces , illegal parking and advertising, d. simplification of the legislative and regulatory framework.

The Hellenic Court of Audit will carry out a follow-up audit.