Special Report 11/2019

2019-11-13 00:00:00

Follow-up audit on audit recommendations in the Municipalities of Neapoli-Sykea, Kordelio- Evosmos and Oreokastro

The aim of the audit was to determine whether the Municipalities of Neapoli-Sykea, Kordelio-Evosmos and Oreokastro took into account the recommendations of the financial audit carried out on their expenditure categories and have taken specific and time-determined corrective actions and actions in order to address weaknesses shortcomings and omissions as well as delays in the internal controls (administrative and financial).

The findings by sector of recommendations are summarised as follows: a.At the level of an internal control system it was found that by 31 January 2019 none of the three Municipalities had set up an Internal Audit Unit. In addition, inherent weaknesses were found in the monitoring and clearance of expropriations. Finally, shortcomings were identified in the effort to organize and promote the systematic training of municipal employees. .b. At the level of financial management accounts, significant delays in the receipt of public works and services have been identified, which has a material impact on the correct representation of the accounts concerned in the financial statements of the Municipalities and entails a charge to municipalities with interest on late payment. In addition, weaknesses were found in the operation of the warehouse as well as in the proper carrying out of the inventory of all the materials supplied. c. At budget and financial report level it has been observed that significant budget resources are committed to projects-works that are not carried out in a direct time horizon (or never carried out) which demonstrates the need for a more rational drafting of the budget of the Municipalities in order to achieve the optimal use of their resources and funds. d.At the level of information systems, weaknesses were identified in the preparation of a strategic action plan and in the implementation of its monitoring.

The Hellenic Court of Audit will re-evaluate the progress of compliance with the recommendations for which actions are planned and actions that are in progress or to be implemented.

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