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01 March 2021

NAO started implementing the audit season 2020/2021

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In order to fulfil the annual audit plan 2020/2021, 38 audit teams are deployed to field work for carrying out the first audits. Out of the 124 planned: 116 are regularity (financial and compliance) audits, which include the audit of Kosovo Budget, 52 central level institutions, 38 local level institutions, 12 public enterprises, and 13 external funds projects. In addition to regularity audits, 8 performance audits will be published during 2021.

Implementation of the audit season will be quite challenging as it is about to take place in the middle of a pandemic outbreak. While Supreme Audit Institutions have the opportunity to draft their annual plans based on risks, NAO is obliged to annually conduct mandatory regularity audits of: Government Report on the Kosovo Budget; and all budget organizations which directly receive budget through the Annual Budget Law and are required to prepare Annual Financial Statements. The regularity audit cycle closes at the end of August, when the Annual Audit Report (AAR) on the Annual Financial Report of the Kosovo Budget (AFR/KB) is submitted to the Assembly of Kosovo.

The impact of the pandemic is also evident in this audit season, as audit entities are working with reduced staff. Some of the auditors are infected with Covid-19 and obliged to isolate and undergo medical treatment. Moreover, the structure of ministries has changed last year.

Parallel implementation of the new methodology for financial and compliance audits – developed with the support of the twinning project with Polish SAI – and the audit management electronic system, SITA,  is going to be another important challenge during this season.

Both projects are of significant importance to NAO and are being implemented during this audit season. For the purpose of having them introduced, a large number of trainings have been and are being held by all staff.

In accomplishing its mission to strengthen accountability in public administration, NAO, through financial and compliance audits, carried out an annual assessment of: quality of financial reporting; effectiveness of internal control systems; and compliance of transactions with the applicable laws and regulations. Whilst through performance audits, it assesses whether public funds are being used effectively and efficiently.