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Ekonomia

Audit of the Ministry of Finance, municipalities squander funds, increase arrears and hide expenses

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Municipalities continue from year to year to abuse funds and increase arrears. This is stated in the report recently published by the internal audit of the Ministry of Finance. The report states that even during the last year, the locals have increased the level of unpaid obligations, and have even worsened the financial situation of other public institutions. According to the audit, in this way the municipalities become the main institutions that destroy the state coffers every year. Specifically, only for the year we left behind the invoice for arrears reaches the value of 486 million ALL. Whereas, it is claimed that the real number of these debts from the municipalities to be even higher, as they do not declare the real bill of arrears they have. "For 2020, the stock of arrears is estimated at an average of 83%, improving the level of liabilities compared to 2019, but still remain at a dangerous level, causing chaos in the economy and financing. Some of the institutions present an increase in arrears. The highest increase was in the MFE, but it should be noted that in contrast to the previous reporting, the stock of liabilities of this ministry includes the arrears of the General Directorate of Taxes, created by locals ", said in the report of the Ministry of Finance. The audit estimates that the municipalities record the level of arrears only because they are irresponsible and do not properly manage revenues. While, after them comes the Ministry of Finance, the Ministry of Culture, the Ministry of Health WRA and others.

Manipulate costs

 The report shows that all this gangrene created by the municipalities is magnified even more because the locals hide the expenses incurred, as well as the contracts they enter into for various projects. This is a big problem as this makes irregular movements in the list of funds and in income. The indicator that analyzes whether all invoices were sent on time for payment to the relevant treasury branch remains low for local self-government units. According to the audit, this shows that the municipalities in the country hide the expenses, while explaining that this also comes due to the irresponsibility of the employees of the Administration. "The reasons for not sending invoices to the treasury on time come because suppliers do not submit invoices on time to the institution, the supporting documentation submitted is incomplete or inaccurate and it often happens that there are delays in sending the bank details of the supplier. "Also, as mentioned above, the non-functioning of the relevant institutions and staff at full capacity due to the situation created, has led to delays in meeting the deadlines set," the report said. Meanwhile, the same happens for arrears, where 42.5% of invoices are not accounted for within 30 days in SIFQ. This problem is mainly due to the lack of budget funds by institutions, which undertake commitments beyond their capacity. The non-functioning of the relevant institutions and staff at full capacity due to the situation created, has led to delays in respecting the set deadlines ", the report states. Meanwhile, the same happens for arrears, where 42.5% of invoices are not accounted for within 30 days in SIFQ. This problem is mainly due to the lack of budget funds by institutions, which undertake commitments beyond their capacity. The non-functioning of the relevant institutions and staff at full capacity due to the situation created, has led to delays in respecting the set deadlines ", the report states. Meanwhile, the same happens for arrears, where 42.5% of invoices are not accounted for within 30 days in SIFQ. This problem is mainly due to the lack of budget funds by institutions, which undertake commitments beyond their capacity.