In October 2024, the Office for Auditing Institutions in the Federation of BiH published the findings of reports on the implementation of recommendations from previously conducted financial audits for nine local-level institutions. The reports refer to the implementation of recommendations from 2018 for JP “Komunalac” Gradačac, JP “Rad” Lukavac, JP “Komunalno Neum”; from 2019 for JU Pharmacy “Zdravlje” Zenica, JP “Vodokom” Kakanj, Municipality of Neum; and from 2021 for the Municipality of Bosansko Grahovo, Municipality of Tomislavgrad, and Municipality of Kladanj.
It was established that the overall implementation of audit recommendations aimed at addressing identified irregularities is below 40%, with as many as six institutions (Municipality of Bosansko Grahovo, JP “Rad” Lukavac, Municipality of Tomislavgrad, JP “Komunalno Neum,” JP “Vodokom” Kakanj, and Municipality of Kladanj) failing to implement even half of the recommendations within a period longer than three years. These facts clearly show that the mentioned institutions did not take their responsibility seriously nor undertook sufficient steps to eliminate identified deficiencies in their operations and spending of public funds, while local authorities did not exercise adequate oversight of the measures undertaken to address the irregularities.
What is particularly concerning is that the identified irregularities are very serious and have negative consequences for the functioning of the audited institutions and the spending of public funds. Specifically, these are institutions that received adverse opinions from the Office for Auditing Institutions in FBiH—either for their financial statements or for compliance with legal regulations. Considering that these are local institutions with a significant impact on citizens’ quality of life, it is essential to end such attitudes towards audit reports and to review accountability for failing to eliminate the identified irregularities in the functioning of these institutions and in the management of public funds.
To ensure responsible and effective management of public resources, it is vital that local authorities familiarize themselves with the findings of audit reports for institutions under their jurisdiction, but also that they supervise the measures taken by institutions to correct the identified irregularities. For this reason, the Centers for Civic Initiatives call on all newly elected representatives of local authorities to place the issue of audit recommendations high on the list of future priorities, in order to maximize the implementation of audit recommendations and minimize the number of irregularities in public spending.